Performance Based Contracting: US versus the World

Performance based contracting (PBC) for highway project delivery has a strong record of success in the international markets where it is used routinely. Several attempts have been made to implement it in the United States (US) with mixed results. Performance based contracts change the definition of project success from “minimize cost” to maximize value. This paper reviews the US PBC experience and compares it to the experience overseas. It finds that the major difference is the US demarcation between construction and maintenance versus the international approach of treating the process as a holistic procedure with no divisions of service. It also finds that a hybrid PBC model in use in New Zealand is very similar to CM/GC contracting in the US and appears to furnish an attractive structure to pilot a US project that bridges the construction and maintenance line.

Language

  • English

Media Info

  • Media Type: DVD
  • Features: Figures; References; Tables;
  • Pagination: 11p
  • Monograph Title: TRB 89th Annual Meeting Compendium of Papers DVD

Subject/Index Terms

Filing Info

  • Accession Number: 01152230
  • Record Type: Publication
  • Report/Paper Numbers: 10-0093
  • Files: TRIS, TRB
  • Created Date: Jan 25 2010 10:07AM