The Queenstown Lakes District Council has signed a new open book-style roading maintenance contract with Downer EDI Works Ltd.
Queenstown Lakes Mayor Clive Geddes said the $6 million-a-year contract would produce a higher level of transparency for the community.
The open book-style contract covered roading and maintenance services throughout the district, as well as environmental maintenance services, such as snow clearing and grass spraying.
"This contract offers increased visibility of true cost and ensures the delivery of a quality service that provides greater value for money," Mr Geddes said.
Downer EDI Works Ltd general manager operations southern Mark Keane was delighted with the contract.
"It's good to move into a new collaborative phase with true transparency of cost and two-way buy-in," he said.
The council would set the budget and the level of service required, with the contractor being paid the actual cost, plus an agreed margin. If the contractor and the council together found a more economic way to do the job then the savings would be shared between the parties.
The final contract included key performance indicators.
The proposed term of the contract is three years, plus one, plus one - subject to satisfactory performance - and will begin tomorrow.
The roading contract was discussed by councillors at an extraordinary meeting held behind closed doors in July.
The present measure and value contract has been held by Downer EDI Works since April 2004 and expires today.
The contract had lacked clear information about cost and did not give the council the opportunity to discuss better alternative solutions directly with the contractor, Mr Geddes said.
