A review of performance based maintenance of road infrastructure by contracting

Abstract

PurposeMany road authorities considered contracting out road maintenance to the private sector based on performance measures as an alternative and better solution than traditional methods of contracting. It highlights issues of interest to road authorities in the context of saving maintenance costs and managing contracting times effectively. This method is named as performance based maintenance by contracting (PBMC) and has substantial success records in minimizing infrastructure maintenance costs in many developed and developing countries over the last two decades. It has received the attention of researchers and practitioners. However, the literature on PBMC is reasonably high although the concept of PBMC is relatively new. The purpose of this paper is to carry out a comprehensive state of the art review of the literature that has been conducted in the recent years.Design/methodology/approachA total of 62 published report and journal articles related to performance based maintenance by contracting for road network system has been analysed and reviewed in this paper.FindingsThis paper analyses the literature on PBMC and presents examples of developed and developing countries that have been successfully maintaining their road network systems using PBMC as their preferred method of contracting.Practical implicationsThe potential of reducing maintenance costs, increasing the quality of works and reducing the chance of corruption in the long run in developing countries are the challenging issues for PBMC, which needs more attention. This paper can be used as a base or platform for future research in the area of PBMC such as developing optimal policies and cost models.Originality/valueThis paper would be useful for the research on PBMC. It would be beneficial for the engineers or professionals in improving the performance of road maintenance and management.

Performance‐Based Logistics and Interfirm Team Processes: An Empirical Investigation

“…The lack of integration results in the transactional exchange of products and services where buyers are at risk for system performance and suppliers have little reason to innovate or invest (Sultana et al. ; Selviaridis and Norrman ).…”

“…; Sultana et al. ). In this article, we use the classic term, PBL, but the underlying governance mechanism is similar for other performance‐based strategies.…”

Sustainability of Performance-Based Contract in Indonesia National Road

“…A single rehabilitation project is estimated to cost three to four times the amount that should be spent on routine and periodic road maintenance.In developing countries, the road authority desperation related to many factors involved in decision making. This is particularly, in the task of great road maintenance projects in growing countries where a lot of organizations like external funding authorities and consultants are complex [4]. Occasionally, it is hard to create the proper resolution for the road owner in growing countries as there are many responsive decision-making factors involved.…”

“…The advantages of PBC was integrated contract for a long period of time, lump sum payment contracts and using performance criteria or level of service. Five key characteristics of a PBC: (1) needs concentrates based on the contractual outcomes, not the quantity, and not how the work is carried out, (2) arrange of indicators involved to the outcomes, (3) accomplishable performance reputable for each indicator, (4) establish process to accumulate, analyze and notify data for the chosen indicator, (5) field of monetary and non-monetary consequences, either rewards or punishments for the contractor, based on performance indicator achievement. [6] The Performance-Based Contracts (PBC) has been distinguished as contract method that efficient resolving the limitations of the conventional contracting methods.…”

“…Effect of relating to the government or the public affairs of a leaders and parties in the road sector is a serious affair for growing countries. One of the aim of introducing PBMC for road construction maintenance is to reduce the chance of political impact and corruption [4].…”