Risk management in new performance based contracts

To control risks in performance-based contracts for pavements a combination of instruments (end specifications, warranty, financial instruments, third parties, prescription of methods and materials) is used. End performance specifications alone are inadequate to guarantee the performance of a road pavement, given the lack of adequate instruments to assess residual life after a warranty period and to control political and social risks. This means that besides end specifications, the degrees of freedom for a contractor have to be limited to a certain extent, still allowing him more freedom than in traditional contracts. The further development of better instruments and a bidding system based on price performance ratio is necessary to better control those risks and stimulate a contractor to deliver high quality. Then additional degrees of freedom for design and realisation of works can be given to the contractor.

• Authors:
  • van der Zwan, J
  • van Dommelen, A
  • Schut, E
• Conference:
  • Transport Research Arena Europe, 2008, Ljubljana, Slovenia
• Publication Date: 2008-4

Language

• English

Media Info

• Pagination: 8p
• Monograph Title: Transport Research Arena Europe 2008, Ljubljana, Slovenia, April 21 to 24

Subject/Index Terms

• TRT Terms: Contracts; Highway operations; Pavement management systems; Pavement performance; Risk management; Specifications
• Uncontrolled Terms: Road design and management
• ATRI Terms: Contract; Pavement management; Pavement performance; Risk management; Road management; Specifications
• Subject Areas: Highways; Pavements;

Filing Info

• Accession Number: 01385252
• Record Type: Publication
• Source Agency: ARRB
• Files: ATRI
• Created Date: Aug 22 2012 6:46PM