Title: Key Success Factors for Global Service Contracts for Road Management and Maintenance
Abstract: The use of “global service,” or “asset management,” contracts has emerged in the last decade as a successful road maintenance contracting practice. In these contracts, payments are linked (at least partially) to the contractor meeting or exceeding certain outcomes, performance indicators, or results. This type of contracting transfers some (or all) of the risks associated with managing and maintaining the road to the contractor. The implementation of these types of contracts is currently at different stages of progress in different countries. This paper discusses the lessons learned from the experience in Italy and compares performance-based contracts (PBC) developed by the local Agencies (Provinces and Municipalities) in Italy with similar experiences in others parts of the world. The contracting of the road management and maintenance through PBCs has both, advantages and disadvantages, and the degree of success is highly dependent on how the contract is structured. This paper analyzes the potential benefits and risks associated with PBCs for road maintenance and the key factors for the successful implementation of this relatively new contracting “tool” at national and at international level. Successful Italian experiences for rural and urban networks are discussed and compared with similar examples in North and South America.
Publication Year: 2008
Publication Date: 2008-01-01
Language: en
Type: article
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Cited By Count: 4
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