How to design long-term maintenance contracts? - pilot project in Finland

The goal of the Finnish Road Administration's new procurement strategy is to develop and implement new procurement and delivery methods. The procurement of maintenance services will shift towards longer and more extensive contracts, which provides new business opportunities for contractors and cost effective solutions for clients. Experiences from the first large scale pilot project on long-term maintenance contracts in Finland are described. The contract is fully based on functional specifications and allows very high levels of freedom for the service provider (contractor) to use innovations when selecting maintenance strategies and measures. The maintenance area includes more than 1300 km of road lanes and ramps located on three main roads in southern Finland. The contract is based on a fixed lump sum, which will be paid in equal annual amounts regardless of when the maintenance works are done. The annual payments are bound to a cost index comprising 88% of cost index of civil engineering works and 12 % of bitumen in order to reduce economic risks. The long-term maintenance contract includes all periodic maintenance works of asphalt surface, road markings and condition monitoring of the network during 12 years. Functional based criteria are set on e.g. rut depth, unevenness, cross fall, bumps, texture, skidding resistance, cracks and potholes. These criteria are controlled annually and depreciation fees are prescribed if the required condition levels of road surface are not achieved. Requirements are also set on the average network condition at the end of the contract, which has to be achieved before the contractor returns the management of the network back to the road authorities. For the covering abstract see ITRD E157233

• Authors:
  • SPOOF, H
  • MAENNISTOE, V
  • VALKONEN, A
  • AHOKAS, T
• Publication Date: 2008

Language

• English

Media Info

• Pagination: 6p
• Serial:
  • PROCEEDINGS OF THE 4TH EURASPHALT AND EUROBITUME CONGRESS HELD MAY 2008, COPENHAGEN, DENMARK
  • Publisher: EUROPEAN ASPHALT PAVEMENT ASSOCIATION (EAPA)

Subject/Index Terms

• TRT Terms: Bituminous mixtures; Condition surveys; Conferences; Contracts; Depth; Local government agencies; Maintenance; Pavement management systems; Pavements; Payment; Public private partnerships; Road markings; Rutting; Skid resistance; Specifications; Surfacing
• Geographic Terms: Finland
• ITRD Terms: 4967: Bituminous mixture; 562: Carriageway marking; 3857: Condition survey; 8525: Conference; 146: Contract; 6499: Depth; 8035: Finland; 192: Local authority; 3847: Maintenance; 2955: Pavement; 3037: Pavement management system; 272: Payment; 172: Public private partnership; 3081: Rutting (wheel); 3031: Skid resistance; 177: Specifications; 2972: Surfacing
• Subject Areas: Highways; Maintenance and Preservation; Pavements; I10: Economics and Administration; I23: Properties of Road Surfaces; I52: Construction of Pavements and Surfacings; I61: Equipment and Maintenance Methods;

Filing Info

• Accession Number: 01174409
• Record Type: Publication
• Source Agency: TRL
• Files: ITRD
• Created Date: Sep 30 2010 11:11AM