20 March 2015
LINZ is currently working on the Advanced Survey and Title Services (ASaTS), a proposal to update and expand the range of services for its Landonline system for managing New Zealand’s survey and title transactions.
Landonline has been in place since 2000 and an update would ensure that New Zealand’s survey and title systems are more efficient and better reflect the ways our customers work – eg it would better integrate with modern software and desktops as well as mobile devices. There is potential for new services to better streamline conveyancing processes and ensure that decision makers and consumers have easier access to the information they need.
As part of this, we have carried out several stages of investigation to get an accurate estimate of the costs of changes to this system. The first step was the development of an Indicative Business Case (IBC), which was presented to Cabinet in 2013 (PDF 223KB).
The IBC provided options for updating our system, including a preferred option estimated at $42 million in Net Present Value terms – Net Present Value is a standard tool for evaluating options, and does not represent the actual cost of an investment.
We are now developing a Detailed Business Case (DBC). This will take into account a range of factors to a greater depth than was considered in the IBC – including the results of a Request for Information (RFI) (PDF 586KB) process carried out with potential vendors through the Government Electronic Tender Service (GETS).
This process showed that, as relatively few other countries have developed systems as comprehensive as Landonline, there are few 'off the shelf' components available and customisation would be needed in any change.
As a result, the estimates in the DBC will better reflect the true cost of the project and are likely to be substantially higher than the earlier indicative figures. Both the Indicative and Detailed Cases are part of a process designed to provide a more accurate estimate of costs before commitment to the project, so this variation is expected.
We are now providing this proposal to Ministers for their consideration.
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