A key matter negotiated after selection of the Preferred Proponent was the KRA Performance Regime. NZTA had identified their critical result areas in the RFP, and required the proponents to put forward a performance regime in their Project Proposals. The proposed performance regimes were to be based on the owner-stated KRAs and would be considered in the evaluation process. Note that the size of the performance pool was small (as a percentage of TOC) in comparison with what may be regarded as usual; its size was fixed in the RFP and not open for negotiation.
The KPI measures proposed by the Preferred Proponent were revised and agreed through negotiation. The resulting measures provided the opportunity for the alliance to strive for (and be rewarded for) certain additional benefits not previously identified (such as the earlier opening of some peak hour traffic lanes). The NOPs liked this approach because it allowed KPIs to be simple, practical and meaningful; capable of being driven down through the whole team, not just the management team. However, the approach ensured the Owner retained their "final say".
| KRA Performance Regime The Guidance Note recommends that the Owner develop the KRAs and the KPIs as part of the Commercial Framework prior to engaging the market and finalise such negotiations during the competitive process. This ensures that the KRA Performance Regime actually drives the behaviours and outcomes that the Owner requires. |