1. Evolution of Engagement and Delivery in Infrastructure Renewal
Daniel Muir
Senior Project Manager
Queensland Urban Utilities
QUU reference TEM142
© 2017 Queensland Urban Utilities

2. Brisbane Water Main Renewals Program
Annual Average Spend: $20,000,000 Average Annual km replaced: 15km Average Streets per year: 60
COMMERCIAL IN CONFIDENCE
QUU reference TEM142
© 2017 Queensland Urban Utilities

3. Issues Complaints and complaints management Quality
It’s easy to get non-compliant issues fixed after the fact, but this then affects the overall program and disrupts customers
QUU reference TEM142
© 2017 Queensland Urban Utilities 3

4. Issues Progress – program and cashflow Procurement Activities
Civil Works Panel Arrangement, 8 Contractors
Multiple procurement activities per year, requiring substantial time and effort (evaluation of 8 offers by 3 staff)
Yearly ‘buying of packages’ resulting in aforementioned issues
QUU reference TEM142
© 2017 Queensland Urban Utilities 4

5. Resolutions – Carrot or Stick?
There aren’t many sticks!
Liquidated Damages
Non-conformances
Removal from Panel
Existing panel contract doesn’t have much room for carrots
Contractors expressed a desire for continuity of work, rather than intermittent sourcing
How or why would we offer continuity of work to underperforming contractors?

6. Performance driven procurement model
Developed KPI’s based on QUU’s values
Meet KPI’s = opportunity for continuity of work

7. What needed the most improvement?
Quality and Program
Easily managed by loading up scores for these metrics
Customer
Lack of responsibility for complaints and engagement of customers.
Customers still encouraged to call QUU for all enquiries and issues, large administrative burden as a result.
Besides assigning KPI’s to volume of complaints received and managed, something had to change in the way customers engaged and managed

8. Evolution of Customer Engagement
Contractor front and centre of engagement
More face to face engagement
Co-branded collateral
Employ their own community engagement staff
More crew training, including training run previously for QUU employees only

9. Evolution of Customer Engagement
Significant reduction in enquiries and complaints to QUU.
Most complaints managed and closed out by contractor directly.
Increased customer satisfaction.
Contractor focused on customer based outcomes for works.

10. Results
A tale of 2 contractors
Contractor A
Contractor B

11. Results
A tale of 3 contractors
Contractor A
Contractor B
Contractor C

12. Lessons Learned
Current procurement processes not agile or flexible enough for the desired turnaround on pricing to approval
Onboarding of new contractors

13. What’s next? New contract model for 18/19
Water main replacement program contract only, not general civil works
Leverage successes from 16/17 and 17/18
Refine KPI’s

14. Thank You
Any Questions?