Downer, fulton hogan, HEB Construction, higgins, road maintenance,
Following a thorough procurement process, NZTA has confirmed its preferred suppliers for Integrated Delivery Contracts (IDCs), covering state highway road maintenance and renewals, which will commence in May 2026.
The contracts, which are expected to be signed early next year, will see contractors accountable for the majority of maintenance and renewal activity on regional state highway network, with up to 20% of work available to other pre-qualified suppliers through a contestable process.
The IDC contracts represent a significant change from the previous Network Outcomes Contracts (NOC), with NZTA taking greater ownership of asset management, from the gathering and analysing asset condition data through to the development of short, medium and long-term programmes.
Other key changes include a refreshed quality management framework and better use of design standardisation to speed up the path from programming to delivery.
NZTA National Manager Maintenance and Operations Andrew Clark says the contracts will build on NZTA’s focus on ensuring value for money through quality delivery.
“New Zealanders depend on a safe, accessible and high-quality state highway network, and NZTA is committed to providing this. Through the current Government Policy Statement for land transport 2024 (GPS) we have embarked on a significant programme of road rebuilding, which will deliver long term benefits for everyone using the state highway network.
“The preferred suppliers have been chosen based on a range of factors, including proven ability to deliver, mobilisation approach and price. Our thorough tender review process has ensured the selection of suppliers with the ability to deliver the best results over the tenure of the contract.
“The new contracts reward delivery – contractors that deliver on time and to a high standard will be rewarded with greater volumes of work. At the same time, we want to enable market growth and diversity by using a wider range of suppliers through the contestable work programme that will complement these contracts.
“We look forward to working with the preferred suppliers to finalise contracts ahead of signing early in the New Year. This is a once in a generation moment to drive improved road maintenance outcomes for New Zealand.”
The table below lists the nominated preferred suppliers for the new Integrated Delivery Contract networks. Tenures are for 10 years from 1 May 2026 unless otherwise stated.
| Area | IDC Contractor |
| Northland | Fulton Hogan |
| West Waikato | Fulton Hogan (to June 2029) |
| East Waikato | Higgins |
| Central Waikato | Downer |
| Bay of Plenty | Higgins |
| Taranaki | Downer (to June 2029) |
| Manawatū-Whanganui | Fulton Hogan |
| Hawke’s Bay | Higgins |
| Tairāwhiti | Downer (to June 2029) |
| Nelson-Tasman | Fulton Hogan |
| Marlborough | HEB/Fulton Hogan (to March 2029) |
| West Coast | Fulton Hogan |
| North Canterbury | HEB |
| South Canterbury | Isaac |
| Coastal Otago | Downer |
| Central Otago | Fulton Hogan |
| Southland | SouthRoads |
For further information on the IDC model, see:
Technical disciplines – Integrated delivery model(external link)
NZ Transport Agency Waka Kotahi works to create transport solutions for all New Zealanders – from helping new drivers earn their licences, to leading safety campaigns to investing in public transport, state highways and local roads.
Source: NZ Transport Agency
What are Integrated Delivery Contracts in New Zealand
Integrated delivery contracts in New Zealand are collaborative procurement models where the client, designer and contractor work together under a single aligned framework. Instead of separating design and construction into competing silos, these models bring key parties together early and link commercial outcomes to overall project performance.
They are typically used on large, complex or high risk infrastructure projects where traditional lump sum or design and build contracts may create disputes, cost overruns or programme delays.
Why Integrated Models Are Used
New Zealand infrastructure projects often face complex ground conditions, environmental constraints, stakeholder scrutiny and tight delivery timeframes. Under traditional contracts, risk is heavily transferred to contractors. When unforeseen issues arise, this can lead to claims, disputes and adversarial relationships.
Integrated contracts shift the focus from risk transfer to shared risk management. Commercial incentives are aligned so that all parties are motivated to achieve project outcomes rather than protect individual positions.
Common Integrated Delivery Models
Alliance contracting is the most established integrated model in New Zealand. The client and delivery partners operate as a single integrated team with joint governance and open book financial transparency. Profit is linked to performance against agreed targets. Disputes are resolved within the alliance structure rather than through litigation. Major projects such as the City Rail Link and the Waterview Connection used alliance frameworks due to their scale and technical complexity.
Early Contractor Involvement, or ECI, brings a contractor into the design phase before a final construction price is agreed. The contractor contributes constructability advice, methodology input and cost planning. If the parties agree on scope and pricing, the project moves into delivery. This model reduces design risk and improves cost certainty.
Public Private Partnerships, or PPPs, integrate design, construction, financing and long term operation. A private consortium takes on lifecycle responsibility in exchange for long term revenue payments. Projects such as the Transmission Gully Motorway followed this structure.
Benefits and Challenges
Integrated contracts can improve programme certainty, reduce disputes and encourage innovation. They often result in stronger collaboration between designers, contractors and asset owners. However, they require mature governance, high trust and strong commercial capability. Procurement costs can also be higher due to the complexity of selecting and structuring integrated teams.
Industry Relevance
Integrated delivery has become a core feature of major infrastructure delivery in New Zealand, particularly in transport, water and energy. As projects grow in scale and complexity, collaborative models are increasingly preferred over strictly transactional contracts.
For infrastructure businesses, understanding integrated contracts is critical. These models influence how teams are structured, how risk is priced and how performance is measured. They also shape hiring demand, as projects delivered under alliance or ECI frameworks require strong collaboration, commercial acumen and stakeholder management capability.
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