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.

Language

  • English

Media Info

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

Subject/Index Terms

Filing Info

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