Performance Based Maintenance of Road Infrastructure by Contracting—A Challenge for Developing Countries
Affiliation(s)
Griffith School of Engineering, Griffith University, Gold Coast campus, Southport, Qld 4222, Australia.
Griffith School of Engineering, Griffith University, Gold Coast campus, Southport, Qld 4222, Australia.
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.
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.
Cite this paper
M. Sultana, A. Rahman and S. Chowdhury, "Performance Based Maintenance of Road Infrastructure by Contracting—A Challenge for Developing Countries," Journal of Service Science and Management, Vol. 5 No. 2, 2012, pp. 118-123. doi: 10.4236/jssm.2012.52015.
M. Sultana, A. Rahman and S. Chowdhury, "Performance Based Maintenance of Road Infrastructure by Contracting—A Challenge for Developing Countries," Journal of Service Science and Management, Vol. 5 No. 2, 2012, pp. 118-123. doi: 10.4236/jssm.2012.52015.
References
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[1] G. J. Zietlow, “Cutting Costs and Improving Quality through Performance-Based Road Management and Maintenance Contracts-The Latin American and OECD Experiences,” Senior Road Executives Programme, Restructuring Road Management, German Development Cooperation, Birmingham, 2005. [2] M. Frost and C. M. Lithgow, “Future Trends in Performance-Based Contracting-Legal and Technical Perspectives,” Proceedings of 19th ARRB Conference, Sydney, 7-11 December 1998, pp. 91-101. [3] A. Straub, “Cost Savings from Performance-Based Maintenance Contracting,” International Journal of Strategic Property Management, Vol. 13, No. 3, 2009, pp. 205-217. doi:10.3846/1648-715X.2009.13.205-217 [4] P. C. Anastasopoulos, B. G. McCullouch, K. Gkritza, F. L. Mannering, and K. C. Sinha, “A Cost Savings Analysis of Performance-Based Contracts for Highway Maintenance Operations” Journal of Infrastructure Systems, Vol. 16, No. 4, 2010, pp. 251-263. doi:10.1061/(ASCE)IS.1943-555X.0000012 [5] G. J. Zietlow, “Performance-Based Road Management and Maintenance Contracts-Worldwide Experiences,” International Seminar on Road Financing and Investment, Arusha, 16-20 April 2007, pp. 1-76. [6] N. Stankevich, N. Qureshi and C. Queiroz, “Performance- based Contracting for Preservation and Improvement of Road Assets,” The World Bank, Washington DC, 2005. [7] G. J. Zietlow and A. Bull, “Performance Specified Road Maintenance Contracts—The Road to the Future, the Latin American Perspective,” 21st World Congress, Kuala Lumpur, 3-9 October 1999, pp. 1-6. [8] P. Hardy, “Austroads Review of Performance Contracts: The Potential Benefits of Performance Contracts,” Opus International Consultants, Nelson, 2001. [9] M. Frost and C. Lithgow, “Improving Quality and Cutting Costs through Performance Contracts-Australian Experience,” World Bank Road Management Training Seminar, Washington DC, 1996. [10] B. Carpenter, E. Fekpe, and D. Gopalakrishna, “Performance-Based Contracting for the Highway Construction Industry, An Evaluation of the Use of Innovative Contracting and Performance Specification in Highway Construction,” Koch Industries Inc., Washington DC, 2003. [11] Y. Mumseen, L. Johannes and G. Kumar, “Roads, Chapter 4, Output-Based Aid: Lessons Learned and Best Practices,” The World Bank, Washington DC, 2010. [12] M. Keir and G. V. Blerk, “A Review of the Performance Specified Maintenance Contract (PSMC) Model Using a Case Study of PSMC 001, Case Study—Transit New Zealand,” Transfield Services, Sydney, 2006. [13] E. Lancelot, “Performance Based Contracts in the Road Sector: Towards Improved Efficiency in the Management of Maintenance and Rehabilitation Brazil’s Experience,” The World Bank Group, Washinton DC, 2010. [14] G. Liautaud, “Maintaining Roads: Experience with Out- put-Based Contracts in Argentina Chapter 4, Contracting for Public Services, Output-Based Aid and Its Applications,” The World Bank, Washington DC, 2001. [15] G. J. Zietlow, “Implementing Performance-Based Road Management and Maintenance Contracts in Developing Countries, an Instrument of German Development Cooperation, Birmingham,” German Development Cooperation, Frankfurt, 2004. [16] G. F. Segal, A. T. Moore and S. McCarthy, “Contracting for Road and Highway Maintenance,” Reason Foundation, Reason Public Policy Institute, Los Angeles, 2003. [17] N. Ribreau, “Synopsis of WSDOT’s Review of Highway Maintenance ‘Outsourcing’ Experience, Transportation Research Board Committee A3C01 Maintenance and Operations Management,” Washington State Department of Transportation Maintenance and Operations, Washington DC, 2004. [18] M. Frost, “Imperatives in Future Road System Management, Improved Road Maintenance Productivity—The Australian Case,” 14th IRF Road World Congress, Paris, 11-15 June 2001, pp. 1-20. [19] P. Pakkala, “Innovative Project Delivery Methods for Infrastructure an International Perspective,” Finnish Road Enterprise, Helsinki, 2002. [20] J. Zietsman, “Performance Measures for Performance Based Maintenance Contracts,” Texas Transportation Institute, Houston, 2004. [21] C. Queiroz, “Options for Implementing Performance- Based Contracts,” Transport Forum, Washington DC, 2005. [22] Austroads Inc., “Development of Performance Contracts and specifications - Full report, Opus International Consultants, New Zealand,” Austroads Inc., Sydney, 2003. [23] W. A. Hyman, AASHTO and Federal Highway Administration, “Performance-based contracting for maintenance, A Synthesis of Highway Practice, NCHRP Synthesis 389,” Transportation Research Board, Washington DC, 2009. [24] T. Hartwig, Y. Mumssen and A. Schliessler, “Output Based aid in Chad Using Performance-Based Contracts to Improve Road,” OBApproaches, Washington DC, 2005. [25] The Daily Star, “Published Article on Padma Multipurpose Bridge Project on September 30, October 10, 15-17, 26, November 30, 2011,” The Daily Star, Dhaka, 2011. [26] Transparency International Bangladesh, “Corruption in Public Sector Departments: Its Manifestations, Causes, and Suggested Remedies, a Report on the Findings of Four Diagnostic Studies on Corruption Conducted for the World Bank, Transparency International Bangladesh,” 2002. http://unpan1.un.org/intradoc/groups/public/documents/apcity/unpan004882.pdf [27] Asian Development Bank, “Report and Recommendation of the President to the Board of Directors on a Proposed Loan to the People’s Republic of Bangladesh for the Road Network Improvement and Maintenance Project,” Asian Development Bank, Mandaluyong, 2002. [28] Opus International Consultants Ltd., “Introducing Performance Based Maintenance Contracts to Indonesia Framework Document,” MWH Limited, Wellington, 2006. [29] P. Robinson, “Road Maintenance by Contract—What are the Risks and Benefits?” International Congress on Local Government Engineering and Public Works: Incorporating 10th National Local Government Engineering Conference, Sydney, 22-26 August 1999, pp. 67-75.