Integrated Delivery Model

Overview

The Integrated Delivery Model (IDM) will be the new delivery model for the majority of the state highway road maintenance requirements across Aotearoa New Zealand. NZ Transport Agency Waka Kotahi (NZTA) is developing this model following the NOC Review that took place during 2022, and the IDM will replace the current Network Outcomes Contract (NOC) model from 1 May 2026 onwards.

New Zealand’s state highways are more than roads—they are the lifelines that connect our communities, fuel our economy, and keep people moving safely every day.

As kaitiaki of this vital national asset, we have a responsibility to ensure the network is well-maintained and delivers real value for New Zealanders.

Through the NOC we utilised outsourced asset management resources to manage and maintain our highways. While this approach has brought benefits, it has over time also created challenges – such as fragmented decision-making, inconsistent service delivery across regions, and a lack of flexibility to respond to evolving needs.

That’s why we’re making an important shift in how we manage state highway maintenance, renewals and asset management - bringing decision-making back in-house so NZTA has more control over how money is spent, better clarity for delivery partners, and a more seamless experience for road users.

This transition to an Integrated Delivery Model (IDM) means clearer priorities, more accountability, and a stronger focus on value for money.

Through this change we will ensure our roads are maintained more efficiently, our people are empowered to make great decisions, and New Zealanders experience safer, more reliable journeys.

Objectives

The IDM will enable NZTA and the road maintenance sector to become more efficient and coordinated in the delivery of corridor-level improvements. At the heart of the new model is an aim to simplify commercial and delivery mechanisms to focus road maintenance requirements on outcomes that deliver value to New Zealanders.

We do however want to keep elements of the NOC model that have worked well. For example, our emergency response mechanism is considered world class, and we want to ensure that this is carried through into the IDM.

The IDM ensures NZTA gives effect to the State Highway Asset Management Plan (SHAMP), which shows how maintenance, operations, and improvements together provide services to customers. Maintaining and operating the existing state highway network ensures road users have safe and accessible roads to travel on.

The Government Policy Statement (GPS) for 2024–27 provides a significant increase in funding for road maintenance, along with increased scrutiny on performance and effectiveness. The IDM will better enable NZTA to report on areas of interest to the current government, as well as any future requirements.

Increased maintenance and resilience is one of four key strategic priorities within the GPS. Under the new Pothole Prevention Activity Class funding is ringfenced for road resealing, road rehabilitation and drainage maintenance, with the long-term aim being that we deliver 2% road rehab per year and 9% resealing per year across the state highway network - approximately 2700 lane kilometres per year.

However, before we reach that point, we need a significant uplift in capacity and capability across the sector, to bring the network back to an efficient and sustainable standard of maintenance. Throughout 2024 we developed the key aspects of the new model and the contract form (the Integrated Delivery Contract) that will give life to our vision.

All existing NOCs will continue until we transition to the IDM, with contract extensions enabling us to line up with our procurement plan for the IDM. This will ensure we have consistency of delivery now while we develop the right model for the future.

The Integrated Delivery Model ecosystem

The IDM will bring about significant change to the way in which NZTA contracts and administers performance of state highway maintenance requirements.

NZTA will take a much more active role in the collation of asset condition data, with new collection methods driving better network knowledge, which will help ensure the right treatments are chosen for the right road at the right time.

Oversight of programme management will lead to better co-ordination of works across and within networks, meaning customer journeys will be proactively managed. This will be tied to a more consistent and broad communication approach – meaning everyone has access to the right information ahead of their journey.

Performance management will be simplified. If suppliers do a good job they will be rewarded with more work. If work doesn’t meet expectations suppliers can expect to complete less work moving forward until they can prove they can complete work to the required quality.

Directories will unlock additional capacity across the country, with suppliers outside the main contract able to work directly for NZTA. The Directory approach will also enable NZTA to better respond to changes in priorities over time, by focusing on areas where there is high demand for delivery.

View a larger diagram on how the system works under IDM [PDF, 1.3 MB]

Why is it called the ‘Integrated’ Delivery Model?

The integration aspect refers to how we deliver work on the state highway network. Programmes across the main IDC supplier, directory supplier (or suppliers), new infrastructure works and third parties will be integrated and optimised to make best use of available resource and time available to complete the work. This will improve the efficiency and effectiveness of delivery, meaning state highways are more accessible to those driving on them.

The outcome of the IDM will be a better contracting environment producing better outcomes on the road, while will result in a better experience for road users, stakeholders and partners.

Timeline

Integrated Delivery Contracts

This is the core contract for each network, which covers the main scope of works, including cyclic maintenance, emergency response and a portion of proactive renewals.
Preferred Suppliers were nominated on Friday 19 December 2025.
Contract award will take place, and transition will commence, in early 2026.
Integrated Delivery Contracts commence 1 May 2026.

List of preferred suppliers for Integrated Delivery Contracts:

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

Media release regarding preferred supplier nomination for the Integrated Delivery Contracts:

NZTA confirms preferred suppliers for Integrated Delivery Contracts(external link)

Directory of Suppliers

The Directory will be a pre-qualified set of suppliers who will be able to tender for contestable work packages. The scope of packages may change over time depending on government/funding priorities, however initial expectations are that the packages will align with the current focus on road rehabilitation, along with activities that can be nationally or regionally delivered, such as certain pavement marking activities.
We encourage the market to actively apply for pre-qualification with NZTA ahead of future opportunities being released to the market on a regular basis.
Contractor prequalification

Procurement opportunities

Professional Services

Professional Service providers will support NZTA to deliver a variety of functions under the IDM.
We are releasing opportunities in tranches over time, with the full procurement process running into 2026. The tranches are:
- Pavement and Surfacing Design –to be awarded shortly
- MSQA panel – RFT closed December 2025
- Environmental Services – RFT closed December 2025
- Independent Certifier – early 2026
- Technical Environmental Specialist panel – early 2026.

Contestable work packages

While the IDM is in development and procurement, there is an immediate need to support delivery in areas that have a significant programme of works.
During the 2024/25 summer we successfully released four packages of road rebuild sites across the Northland and Taranaki networks.
We will be releasing a number of road maintenance packages for the 2025/26 delivery season, across multiple regions. See the table below for more information.

Street lighting

We are establishing a national luminaire panel to secure high performance, consistent product quality, and futureproofing of technology. This will also ensure all street lighting configurations are designed to be fit for purpose.
Alongside this we are implementing five regional street lighting maintenance contracts, aligned with electricity lines company boundaries, to ensure service is delivered by Network Approved Contractors with local capability and fault-response capacity.
Tenders close in January, with contract award in February. The Luminaire Panel will start in March 2026, followed by the Lighting Maintenance Contracts on 1 May 2026, in line with the IDCs.

Full list of contestable work packages for 2025/26:

Package	Region	Awarded to
25/26 Contestable Works Bay of Plenty West Asphalt Renewals (Package 1)	Bay of Plenty	Fulton Hogan
25/26 Contestable Works Bay of Plenty West Asphalt Renewals (Package 2)	Bay of Plenty	Fulton Hogan
25/26 Central Waikato Watercutting	Waikato	Traffic Systems
25/26 Central Waikato Chipsealing	Waikato	MS Civil Construction
25/26 Central Waikato Pavement Rehab (Foam Bitumen Stabilisation)	Waikato
25/26 Contestable Works Rehab – SH2/SH5(external link)	Hawkes Bay	Higgins
25/26 Contestable Works – Hawke’s Bay Foam Bitumen	Hawkes Bay	Closed Tender via Hawke’s Bay Expressway panel
25/26 Contestable Works South Canterbury Stabilisation	Canterbury	Rooney Earthmoving Ltd
25/26 Contestable Works South Canterbury Granular Rehab	Canterbury
25/26 Contestable Works South Canterbury AC Resurfacing	Canterbury	In the market
25/26 Contestable Works Coastal Otago Rehab	Otago	SouthRoads

Supporting delivery uplift

Through the 2024–27 GPS there is a significant focus on state highway road renewals, via the State Highway Pothole Prevention fund.

Through this ring-fenced activity class, NZTA is a significant increase to the volume of rehabilitation work undertaken for each of the three summers within the current NLTP, when compared to the 2023/24 figure of approximately 110 lane kilometres.

We acknowledge that we need to deliver this differently, and while we develop and implement the IDM we are also looking to uplift delivery of road rehabilitation over the 2024/25 and 2025/26 years.

For 2024/25 we targeted two key networks (Northland and Taranaki), where road rebuild programmes are substantial (30 lane kilometres or more).

Additional capacity was procured through four packages:

Northland - North/West – Far North Roading
Northland - Dargaville West – Wharehine
Taranaki South – Fulton Hogan
Northland - Akerama / Towai

Additional regions were added in 2025/26, to support delivery uplift across the country.