The benefit evaluation framework of using performance-based contracting in urban road maintenance
Abstract
Performance-based contracts (PBC) have been adopted increasingly in various countries. However, establishing an objective and convincing benefit evaluation framework to facilitate promotion remains a significant challenge for those who wish to use PBCs. A recent study introduced PBC in the context of daily inspection and repair of urban roads. The pilot program in that study successfully addressed the needs of road users, road maintenance authorities, and contractors. Consequently, this study develops the benefit evaluation framework for this type of PBC for broader applications. The proposed benefit evaluation framework, consisting of one qualitative and eight quantitative performance evaluation items, calculates the effectiveness of introducing PBC to verify its practicality. The validation results show that qualitative benefit evaluation using the Pavement Condition Index achieves a “satisfactory” rating. For the quantitative benefit evaluation, an overall benefit-cost ratio (BCR) of 5.35 suggests that it is economically viable. The developed benefit evaluation framework can be used as a simple and easy-to-use evaluation tool for other organizations to assess whether to introduce PBC. This study fills this research gap by addressing the use of PBCs in the maintenance of all categories of toll-free roads, and contributes to expanding the application of PBCs in road maintenance services.
Keyword : performance-based contract, urban road maintenance, performance index, benefit evaluation, benefit-cost ratio
How to Cite
Tseng, C.-C., & Yang, J.-B. (2024). The benefit evaluation framework of using performance-based contracting in urban road maintenance. Journal of Civil Engineering and Management, 30(2), 133–148. https://doi.org/10.3846/jcem.2024.20491
This work is licensed under a Creative Commons Attribution 4.0 International License.
References
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Sultana, M., Rahman, A., & Chowdhury, S. (2013). A review of performance based maintenance of road infrastructure by contracting. International Journal of Productivity and Performance Management, 62(3), 276–292. https://doi.org/10.1108/17410401311309186
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Zietlow, G. (2005). Cutting costs and improving quality through performance-based road management and maintenance contracts-the Latin American and OECD Experiences. Senior Road Executives Programme, Birmingham.
Anastasopoulos, P. C., McCullouch, B. G., Gkritza, K., Mannering, F. L., & Sinha, K. C. (2010). Cost savings analysis of performance-based contracts for highway maintenance operations. Journal of Infrastructure Systems, 16(4), 251–263. https://doi.org/10.1061/(ASCE)IS.1943-555X.0000012
Asian Development Bank. (2018). Guide to performance-based road maintenance contracts. https://doi.org/10.22617/TIM179099-2
ASTM International. (2020). Standard practice for roads and parking lots pavement condition index surveys (ASTM D6433-20). West Conshohocken, PA, USA.
Babashamsi, P., Md Yusoff, N. I., Ceylan, H., Md Nor, N. G., & Salarzadeh Jenatabadi, H. (2016). Evaluation of pavement life cycle cost analysis: Review and analysis. International Journal of Pavement Research and Technology, 9(4), 241–254. https://doi.org/10.1016/j.ijprt.2016.08.004
Damnjanovic, I., Pike, A., & Martinez, E. (2018). Analysis of performance-based pavement markings and markers contracts: Case study from San Antonio. Journal of Management in Engineering, 34(2), Article 05017010. https://doi.org/10.1061/(ASCE)ME.1943-5479.0000574
Duran, A. (2021). Comparison of performance-based and traditional road maintenance contracts. In 8th International Conference, Contemporary Achievements in Civil Engineering 2021 (pp. 555–562), Subotica, Serbia.
Fallah-Fini, S., Triantis, K., Jesus, M., & Seaver, W. L. (2012). Measuring the efficiency of highway maintenance contracting strategies: A bootstrapped non-parametric meta-frontier approach. European Journal of Operational Research, 219(1), 134–145. https://doi.org/10.1016/j.ejor.2011.12.009
Fuller, J., Brown, C. J., & Crowley, R. (2018). Performance-based maintenance contracting in Florida: Evaluation by surveys, statistics, and content analysis. Journal of Construction Engineering and Management, 144(2), Article 05017021. https://doi.org/10.1061/(ASCE)CO.1943-7862.0001429
Gelderman, C. J., Semeijn, J., & Vries, S. D. (2019). Contracting for road maintenance in the Netherlands – The downside of performance-based contracting. Infrastructures, 4(3), Article 41. https://doi.org/10.3390/infrastructures4030041
Gericke, B., Henning, T., & Greewood, I. (2014). Review of performance based contracting in the road sector: Phase 1. The World Bank. http://www.worldbank.org/transport/
Lancelot, E. (2010). Performance based contracts in the road sector: Towards improved efficiency in the management of maintenance and rehabilitation- Brazil’s experience. The World Bank.
Lawrence, M., Hachey, A., Bahar, G. B., & Gross, F. B. (2018). Highway safety benefit-cost analysis guide. https://safety.fhwa.dot.gov/hsip/docs/fhwasa18001.pdf
Manion, M., & Tighe, S. L. (2007). Performance-specified maintenance contracts adding value through improved safety performance. Transportation Research Record: Journal of the Transportation Research Board, 1990(1), 72–79. https://doi.org/10.3141/1990-09
McCulloch, B. (2021). INDOT research program benefit cost analysis-Return on investment for projects completed in FY 2020. Purdue University. https://doi.org/10.5703/1288284317265
Ogita, S., Palsson, G., & Mills, L. N. O. (2022). Assessing economic efficiency of long-term road asset management strategies. The World Bank. http://documents.worldbank.org/curated/en/099235011182219257/P1679330af035007e0829505bcfd724025b
Panthi, K. (2009). A methodological framework for modeling pavement maintenance costs for projects with performance-based contracts. Florida International University, USA.
Piñero, J. C., & de la Garza, J. M. (2003). Issues related to the assessment of performance-based road maintenance contracts. In Fourth Joint International Symposium on Information Technology in Civil Engineering-Towards a Vision for Information Technology in Civil Engineering, Nashville, Tennessee, USA. https://doi.org/10.1061/40704(2003)50
Pinatt, J. M., Chicati, M. L., Ildefonso, J. S., & Filetti, C. R. G. D. a. (2020). Evaluation of pavement condition index by different methods: Case study of Maringá, Brazil. Transportation Research Interdisciplinary Perspectives, 4, Article 100100. https://doi.org/10.1016/j.trip.2020.100100
Rashedi, R., & Maher, M. (2019). Comparing mathematical optimization, multi-criteria decision analysis (MCDA), and ranking solutions for application to pavement preservation programs. In Transportation Association of Canada and ITS Canada 2019 Joint Conference and Exhibition, Halifax, NS, USA.
Samra, S. A., Osman, H., & Hosny, O. (2017). Optimal maintenance and rehabilitation policies for performance-based road maintenance contracts. Journal of Performance of Constructed Facilities, 31(1), Article 04016075. https://doi.org/10.1061/(ASCE)CF.1943-5509.0000928
Shrestha, K., & Shrestha, P. P. (2020). Framework development of performance-based striping maintenance contracts. Journal of Legal Affairs and Dispute Resolution in Engineering and Construction, 12(2), Article 11. https://doi.org/10.1061/(ASCE)LA.1943-4170.0000385
Stankevich, N., Qureshi, N., & Queiroz, C. (2009). Performance-based contracting for preservation and improvement of road assets. The World Bank. http://documents.worldbank.org/curated/en/539351468156262796/Performance-based-contracting-for-preservation-and-improvement-of-road-assets
Sultana, M., Rahman, A., & Chowdhury, S. (2012). An overview of issues to consider before introducing performance-based road maintenance contracting. International Journal of Civil and Environmental Engineering, 6(2), 350–355. https://doi.org/10.5281/zenodo.1078217
Sultana, M., Rahman, A., & Chowdhury, S. (2013). A review of performance based maintenance of road infrastructure by contracting. International Journal of Productivity and Performance Management, 62(3), 276–292. https://doi.org/10.1108/17410401311309186
Susanti, B., Wirahadikusumah, R. D., Soemardi, B. W., & Sutrisno, M. (2019). Life cycle cost analysis of a PBC pilot project for road in Indonesia. IIUM Engineering Journal, 20(2), 57–69. https://doi.org/10.31436/iiumej.v20i2.1075
Wang, C.-L. (2020). Final report of the project on lean management of road milling and paving decision-making mechanism of Taipei City government (Lean Management Project). Public Works Department of Taipei City Government.
Winanri, R. P., Susanti, B., & Juliantina, I. (2019). Comparison analysis between traditional and long segment contracts on national road preservation activities in Indonesia. Engineering, Technology and Applied Science Research, 9(3), 4230–4334. https://doi.org/10.48084/etasr.2720
Yang, J.-B., & Chang, J.-R. (2020). Feasibility study on the use of performance-based contract for the road sporadic restoration project (Scientific Research Innovation Program for Work Construction). Public Works Department of Taipei City Government.
Yang, J.-B., & Chang, J.-R. (2021). Outcomes analysis of performance-based contract for the road sporadic restoration project (Scientific Research Innovation Program for Work Construction). Public Works Department of Taipei City Government.
Yang, J.-B., Tseng, C.-C., Chang, J.-R., & Liu, C.-M. (2023a). Establishment of urban road maintenance model based on performance-based contracts. Journal of the Chinese Institute of Engineers, 46(3), 208–219. https://doi.org/10.1080/02533839.2023.2170922
Yang, J.-B., Tseng, C.-C., Chang, J.-R., & Liu, C.-M. (2023b). Key challenges and coping strategies for performance-based contracts in Urban road maintenance. Journal of the Chinese Institute of Engineers, 46(7), 703–712. https://doi.org/10.1080/02533839.2023.2238776
Zietlow, G. (2005). Cutting costs and improving quality through performance-based road management and maintenance contracts-the Latin American and OECD Experiences. Senior Road Executives Programme, Birmingham.