Performance Based Maintenance of Road Infrastructure by Contracting—A Challenge for Developing Countries

Abstract

Road authorities always strive to reduce the maintenance costs of road infrastructure systems using various traditional methods of contract. Contracting out road maintenance to the private sector based on performance measures is an alternative solution to maintain road infrastructure in a cost-effective way and is named as Performance Based Maintenance Contracting (PBMC). Many countries have succeeded in minimizing road infrastructure maintenance costs using performance-based maintenance contracts over the last two decades. However, implementation of PBMC is still a challenge for many developing countries because of resource and skill limitations, corruption and poor management systems. This paper discusses and analyses the problems and difficulties in the successful implementation of PBMC in developing countries.

Participatory Urban Governance in Bangladesh

“…For example, the World Bank withdrew about 50 per cent of allocated grants (US$110 million) for the improvement of the transport infrastructure in Dhaka city (Moinuddin, 2010). The organization also suspended its committed fund (US$2.9 billion) for a mega bridge construction project over the allegation of corruption in the bidding process (Sultana, Rahman, & Chowdhury, 2012).…”

Performance Based Road Asset Management System, with a case study: Abu Dhabi

“…British Columbia, Canada, was first province to contract a PBC in 1988. As shown in Figure 2.1, British Columbia was followed by Argentina, Australia, Uruguay, Brazil, United States of America, and New Zealand, (Zietlow 2005, Gupta et al, 2011, Sultana, et al, 2012.…”

“…PBC offers several benefits over traditional approaches. For example researchers (Ozbek et al, 2010, Gupta et al, 2011, Sultana, et al, 2012 have identified a list of benefits given below. For this list, the first three benefits including cost saving, innovation and higher productivity, and transfer of risk to contractor are the most important benefits.…”

“…One approach is that the public agency be responsible for monitoring the measures the performance standards periodically. The agency may wish to use a random, unannounced inspection of performance measures (NCHRP 2009, Sultana, et al, 2012. Another approach would have the monitoring performed by the contractor.…”

“…In traditional contracting, the public agencies prescribe the specifications, materials, and construction methods that reduce risk of the contractor and the public agency assumes the risk of any failure in the specifications, plans, designs, unexpected or additional work, etc. (Moynihan et al 2009, Ozbek et al, 2010, Sultana, et al, 2012.…”