By adopting an outsourcing model are we forced to lock into long term contracts?
There is no one-size-fits all approach. From long-term strategic asset stewardship to routine maintenance programs, services can be tailored to meet your specific needs and objectives and the expectations of your community and road users. Specified performance milestones and contractual reset mechanisms are readily used to maintain a level of control of outcomes. However, the best network and financial outcomes for councils have been achieved in the longest running contracts.
How are Asset Management and Long-term asset management plans critical to success?
Asset Management and Long-term asset management plans are critical to success as they allow you to move beyond simply maintaining the road network. They ensure that maintenance activities are carried out strategically and cost effectively, supported by data-drive decision making. They are tailored solutions specific to your needs and location minimising the impacts on the network, reducing delay times and enabling smooth and reliable journeys for customers and communities.
How do State road authorities manage their road network?
State road authorities have a long history of outsourcing their road network management activities. State road authorities typically have a well-defined level of service and detailed specifications to assist them in administering contracts.
How do we maintain decision making control when contracting a third party?
A contract with a third party is first and foremost a collaborative partnership. Building a collaborative, integrated and positive relationship delivers effective asset management and better community outcomes.
Control is maintained through collaborative joint governance, where equally weighted boards are established to ensure joint decision making. Joint operational leadership can also be achieved with equally weighted management teams.
How does moving to an outsourcing model effect our Local Small to Medium Enterprises (SMEs)?
Working with local SMEs and harnessing their local knowledge leads to better outcomes across the board. Creating a relationship where mutual learning can occur leads to better community outcomes; investment in local communities and improved local skills and safety outcomes.
How will my community react if we change Road Network Management to be delivered by a third party?
Delivering on community objectives is the primary role for internal or external delivery of services. While the management and oversight may reside with an external service provider, on average over 90% of contract delivery teams are made up of locals who are proud to be a part of improving the road infrastructure for their local communities.
What are some potential barriers to adopting an outsourcing model?
The most commonly seen barriers to change are different service expectations and priorities, incompatible technology, different risk profiles, lack of inhouse commercial skills, loss of local jobs, loss of control and lack of network and performance data.
Solutions to address these key considerations can be defined and incorporated into agreements to ensure all the unique elements and needs of a local government are addressed and monitored through the use of KPI’s. Retention of local employees is a prime example of a solution where mobilisation costs are reduced while maintaining local knowledge of the network. There are several commercial organisations that exist that can assist with the drafting of commercial agreements.
DM Roads has worked together with many clients through this process to ensure that all issues are addressed through collaborative governance.
What benefits can private industry deliver through Road Network Management?
Private industry is able to capitalise on established systems to deliver far-reaching benefits across a range of disciplines/areas.
Better Road Network Outcomes - results are fast-tracked and the value of assets is maximised through extensive experience in the planning and delivery of routine maintenance programs and a focus on embracing new technologies to find smarter, more efficient ways to deliver.
Community Outcomes – specific to each contract but can include improved safety and quality of the road network, employment opportunities and skill development and support of local industry.
Social Value – created through several avenues including but not limited to social procurement, access to current technologies like recycling and repurposing of materials and local job creation and career pathways through local schools, TAFEs and universities.
Proven performance - in customised road network management and efficient delivery of routine maintenance programs.
Specialist expertise - in asset modelling, pavement engineering and program optimisation, using contemporary computerised modelling techniques.
Experience - in selecting and designing maintenance and improvement works, using value engineering methods to achieve long-term program objectives.
Industry-leading Asset Management Systems - which gather, sort and report on all aspects of the contract, to provide quality data and to support fully informed decision making.
Zero Harm – Unparalleled resources and commitment to workplace health and safety, conducting operations in a manner that is environmentally responsible and sustainable.
Benchmarking capability - across multiple road network management contracts and regional asset behavioural data.
Community Engagement – through customer service centres to work with and represent council in meeting community requests.
What does changing to an outsourcing RNM model mean to a local government internal workforce?
Retaining the knowledge and experience of an existing workforce within the community we serve is critically important. Recognising the value of reliability, diversity of skill and holding firm to loyalty and engagement are the pillars for every successful organisation. As an established service provider, an important marker is to delineate who has industrial relations teams and dedicated human resource capability that can protect council employees and provide a seamless transfer integration of personnel to build an integrated, cohesive and capable service delivery team with no loss of service.
What is Road Network Management?
Road Network Management is all the activities that combine to look after the roads in your community. These activities include detailed long term asset management plans and contract management plans that outline long term objectives, how the work will be delivered to meet service standards and performance benchmarks to ensure best for network outcomes, Effective management enables asset owners to extract maximum value from their assets, reduce costs to maintain the network and provide fit for purpose road networks that meet the demands of road users.
What is the industry best standard for Asset Management?
ISO 55001:2014 is the international best practice standard for asset management systems. It is an endorsement of a leading approach to asset management and a commitment to driving continuous improvement that maximises the value of road infrastructure assets. An asset management system certified to this standard can be applied to any road network, giving road owners and operators peace of mind that only the best asset management practices are being applied to their critical infrastructure.
What social value can I create from outsourcing Road Network Management?
There is an abundance of social value that can be created by outsourcing road network management including local job creation, career pathways through local schools, TAFEs and universities, access to current technologies like recycling and repurposing of materials and social procurement through materials, employment and services.
Who engages private industry to deliver Road Network Management today?
Several Councils together with State road authorities across Australia engage private industry to deliver road network management enabling them to extract the maximum value from their assets, reduce maintenance costs and provide efficient networks for road users.
Why is a whole of lifecycle approach so important to success of road network management?
A while of lifecycle approach to asset operation and maintenance delivers fit for purpose, sustainable and reliable assets with visibility on associated risks and costs. This approach allows for the design of optimal investment strategies that minimise pavement deterioration with timely intervention and preventative maintenance to maximise value for money outcomes and exceed network service targets.
It delivers improved outcomes through the efficient management of work crews, reduction in the backlog of works and the ability to reinvest savings back into the network.