Road maintenance and renewal in WA
Opus has formed a joint venture with Leighton contractors to deliver road maintenance and renewal services in the Wheatbelt Region of Western Australia.
Main Roads Western Australia (MRWA) were rethinking their long-term contracts to deliver management services in maintenance and renewals. Previous contracts were 10-year performance based contracts that were once considered innovative but hadn’t turned out to be as effective as hoped.
MRWA developed a new Integrated Services Arrangement (ISA). The contract is an ‘insourcing’ or integrated working arrangement - MRWA seeks people, systems or processes from the Integrated Service Provider (ISP), and blends them with their own resources.
Opus has formed a joint venture with Leighton Contractors to deliver these services, for over 3500km of main roads within the Wheatbelt Region of WA. The $190 million contract is delivered by a single coherent team, including people from MRWA and the Leighton Opus team.
A central theme that ensures we deliver the best service possible is the concept of ‘Best for Network’. This involves selecting team members based on skill and knowledge, regardless of which organisation they are from. The extension of the contract depends on meeting agreed measures so the team is actively pulling together to achieve contract extensions.
The ISA has two different performance regimes–performance based assessment for contract extension based on the Australian Business Excellence Framework, and an annual pain/gain element. The Leighton Opus Team has nominated a percentage of margin range with a minimum and maximum rate payable. The median rate is paid at each monthly claim. Key Performance Indicators (KPIs) have also been developed to drive desired behaviours and processes.