RESOURCE ALLOCATION FOR TRANSPORTATION PHYSICAL WORKS CONTRACTS

The value of infrastructure activity in New Zealand is expected to increase to $11.2 billion per year by 2026. However, there is a question concerning the capability and capacity of the construction sector to deliver this quantity of work. This study provides an analysis of award notice data, specifically for transportation physical works contracts published on the Government Electronic Tender Service. Data was reviewed from 1197 transportation projects awarded by Waka Kotahi, the New Zealand Transport Agency, and by 37 local councils across New Zealand. Estimations were then used to assess project resource requirements and later verified by industry professionals. Findings suggest an average of approximately $218 million New Zealand dollars per year was awarded to contractors for transportation physical works contracts from July 2015 to June 2021. However, analysis of contract award dates and award amounts shows the level of resources required to deliver transportation contracts is not consistent throughout the years. Inconsistent workloads may cause contracting companies to experience gaps in resource allocation. Conversely, government agencies may be unnecessarily competing for construction resources due to the timing of project award dates. A strategic, coordinated release of transportation projects could level out demand for construction resources across each financial year. This approach would level out resource requirements, create continuity, and minimize uncertainty for contracting companies, which may allow more effective use of available resources and hence more work to be delivered.