Know who you're partnering with

Local government and infrastructure matters

[September 2012]

How can our councils be sure its contractors have the financial means to finish the job?

We are pleased to share a copy of the latest PwC Local government and infrastructure matters, to consider how New Zealand's councils can take more of the risk out of partnering with infrastructure contractors.

In today's uncertain economic environment, contractors may appear financially sound, yet the scale and length of many local government contracts can place significant working capital pressure on contractors.

Our experts found while it's standard for councils to request financial statements from bidders, this historical information doesn't show a contracting party's likely future financial position. New Zealand's councils need more relevant and real-time information to gain a thorough understanding of a contractor's ability to see a project through to the end.

If you'd like to learn more about how you could get a greater understanding of the financial position of your contract bidder, please consider the recommendations in our publication and speak with one of our experts. We trust you will find the latest Local government and infrastructure matters an insightful read.

Key highlights

  • Ensuring the financial viability of contract partners is crucial in delivering large scale infrastructure projects
  • The scale and length of many local government contracts can place significant working capital pressure on contractors
  • If a contract bidder isn't financial viable then their ability to complete the contract becomes compromised
  • Councils should ask for more relevant information in their request for tender documents.