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PBC concept
Background
Characteristics
Brief History
Benefits
Performance standards
Risks
Performance monitoring
Payment and Incentive Systems
Introduction
Source: Unknown
Importance of Timely
Maintenance
When roads are in poor condition
every $ saved in road conservation
will cost:
$ 2 to road users in additional
vehicle operating costs and
$ 2 to the road administration (or
the tax payer) in reconstruction
and rehabilitation costs.
8
13
PBC Concept
14
15
Type of Contracts
Method based contract
Unit rates for work items
Payments are based on quantity of
completed and measured work
Characteristics of PBC
17
18
Up to 30 years
Routine
maintenance
Construction, periodic and
routine maintenance
19
10
12
14
20
Duration of contract
Routine
Maintenance
Winter
Services
Periodic
Maintenance
Emergencies
Rehabilitation
Improvements
Client/
Road Administration
Full Performance Contract
Consultant/Contractor
22
Audit
by Client
or External
Auditor
Client/
Road Administration
Performance or
Conventional Contract
Road Manager
Engineer
23
New Type
Contractor
2.
24
b)
2.
25
26
27
Source: World Bank, 2006
29
% 1991 Rates
80
60
40
RTA (Team of the Roads and Traffic Authority of New South Wales)
SOR
Contract
Private
contractor
Performance
Transfield
ContractSpecified Road Maintenance Contract
20
0
0
31
10
20
30
40
50
60
70
Objectives
To satisfy the road user
accessibility
comfort
travel speed
safety
34
Less
than 250
250
1000
1000 5000
5000 plus
400mm
300mm
200mm
100mm
28 days
28 days
14 days
7 days
8 hrs
4 hrs
2 hrs
1 hr
Distribution of Risk
In-house
Maintenance
Outsourcing
Specific
Maintenance
Works
Performance-Based
Road Management and
Maintenance Contracts
Shortterm
Mediumterm
Long-term Road
Concessions (BFOT)
Longterm
37
Performance Monitoring
Contractors self-control system with
verification by client
Joint inspections by client and contractor
at certain time intervals
Road user complaints
38
40
41
Framework
Legal
Multi-year contracting
Road maintenance regulations
Financial
Sufficient funding
Multi-year financing
Dedicated funds
Institutional
Separation of client and contractor
Privatization of road maintenance
Competition between contractors
42
Capacity
Understanding of PBC concept
Change of attitudes
Additional skills
Training and coaching
43
Capacity
Understanding of PBC concept
Change of attitudes
New skills (road asset management)
Lack of sufficiently qualified contractors
Training and coaching
44
Capacity
Understanding of PBC concept
Change of attitudes
New skills
Training and coaching
Lack of sufficiently qualified consultants
45
Implementation Experiences
46
Complexity of PBCs
Complexity
New Zealand 1998
Birmingham UK
27 years
Ukraine 2014
Estonia 1995
MAC UK 2004
Future Malaysia 2016
Micro enterprieses
Latin America
China
US 1997
Bangladesh
Finland 2008
Serbia 2004
Finland1998
Estonia 2008
Malaysia 2000
10
12
14
Estonia
54
Nepal
2003, WB, 2-year PMBC, 114 km
2005, WB, four 5-year PMBC, about 50 km each
2007, ADB, 5-year PMBC, 77 km
Sri Lanka
58
Vietnam
2009, WB, one 3-year PBC, 300 km of national
highway
China
2009, ADB, 4-year simple PBCs on 1300 km of
59
Tajikistan
Two 3-year PBCs with initial repairs (10km) each 75 km
long, lump sum for routine and winter maintenance
Indonesia
2010, two 3-year PBCs, 21 and 11 km, basically
rehabilitation contracts
Malaysia
60
66
67
70
72
74
75
Upcoming work
76