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Simpson Grierson advises Watercare on landmark $2.4 billion construction partnership

October 09, 2019

Contacts

Partners Michael Weatherall
Special Advisors Lisa Curran
Senior Associates Sonia Vitas, Genevieve Cox

We recently advised Watercare on a landmark $2.4 billion, 10-year construction partnership with Fulton Hogan and Fletcher Construction.

As part of this work, our construction team assisted in the development of a new contracting method to meet Watercare’s vision for an innovative and collaborative method of infrastructure delivery that would also deliver on its 40/20/20 vision (40% less carbon, 20% less cost and 20% improved H&S). 

The resulting Enterprise Model Agreement is a collaborative arrangement that focuses on a long-term programme of works (rather than delivery of individual projects), and how it can be co-ordinated and resourced to achieve the client’s long term goal.

This collaborative arrangement allows the client, contractors, designers and the supply chain to work together from the early stages of the programme cycle, to optimise procurement efficiency and programme delivery.

The model requires all parties involved (eg contractors, designers and client) to work together to achieve the key performance criteria and the 40/20/20 goal, as the performance incentive regime is based on an “all win, all lose” criteria.

Infrastructure New Zealand CEO Paul Blair has heralded the partnership as a “positive development for the wider infrastructure industry that will lead to better outcomes for all parties.”

Partner Mike Weatherall and special counsel Lisa Curran led our construction team on this work, which included senior associates Sonia Vitas and Genevieve Cox.