Separate smart meter procurement and installation to support sustainable delivery and maximise value across infrastructure programs.
As councils and utilities invest in smart water infrastructure, the way procurement is structured has a direct impact on the success and cost of these projects.
One proven strategy is to separate the purchase of smart meters from their installation. This approach improves cost visibility and savings, strengthens delivery accountability and creates opportunities for local engagement. Meter vendors will markup installation services by 20-30 per cent, creating unnecessary costs for water utilities and in the end their customers.
Data Right has installed more than 130,000 meters and automated meter readers (AMRs) across 25 local government areas. Its experience shows that when councils engage licensed installers directly, projects run more smoothly, and communities receive better value for money.
Delivery clarity improves outcomes
Installing automated meter readers and smart meters requires more than just fitting devices and exchanging meters. It involves licenced plumbing, excavation, asset access and compliance with local regulations. When installation and meter purchases are bundled into a single vendor contract, the work is often subcontracted out, yet still marked up and managed at arm’s length. This creates unnecessary cost and complexity and can delay delivery.
Ian Joblin, Chief Executive Officer of Data Right, said utilities benefit from working directly with trusted installation partners who understand local conditions and specialise in smart meter installations.
“We work with quality contractors who take pride in their workmanship. Our tailored project management ensures data accuracy, installation integrity and a clear pathway for each client,” Joblin said.
“This process enables councils to track progress clearly and address issues promptly. It also builds confidence that the infrastructure will perform as planned over the long term.”
He said more councils are adopting this model, leading to lower costs for variations, stronger communication and higher-quality installations.
Supporting local delivery and governance
The benefits are particularly clear in regional and rural areas. Local contractors benefit financially from projects and ensure accountable delivery building lasting community trust.
This model also supports financial transparency. Councils can define scopes more precisely, including excavation, relocation and reporting. With meter vendors focusing on supply and support, installers are free to concentrate on quality field performance. Reflecting on the model’s success, Joblin said the structure fosters more focused and accountable delivery teams.
“We have installed more than 130,000 meters and AMRs across more than two dozen local government areas,” he said. “In every rollout, we have had direct project management involvement with the customer which provides clearer oversight and stronger outcomes. It allows each party to focus on their area of expertise while maintaining shared accountability.”
Built to last
For smart water projects to succeed, each delivery partner must be accountable for their role. Separating procurement and installation allows councils to work with experts in both technology and installation, eliminating overlap and confusion. It enables project managers to set clear expectations for delivery, maintain direct communication with the individuals performing the work, and resolve issues promptly when they arise.
This clarity also reduces administrative work. Councils avoid delays and duplicated efforts that often come from dealing with third-party intermediaries. Instead of seeking answers from a vendor that may not be directly involved in site delivery, utilities can work with installation teams on the ground who understand the network and are responsible for quality and compliance.
By enabling each contractor to focus on their area of expertise, whether that be hardware supply or field deployment, utilities create stronger partnerships, better reporting structures and infrastructure that performs reliably from day one.
“Smart metering is about more than technology. It is about ensuring delivery is grounded, efficient and built to last.”
For more information, visit dataright.com.au