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Review of performance based contracting in the road sector : phase one (English)

There has been a tendency for a one-size-fits-all approach to the implementation, with the result being a variation in the success of any implemented performance based contracts (PBCs), as well as a significant proportion of the PBCs not making it to the contract award stage. To address these issues, the World Bank (WB) has commissioned a review of PBC in the road sector. PBC involves a significant shift away from more traditional approaches to the delivery and maintenance of road infrastructure and associated services by departing from the client's having responsibility for the design and supervision of construction and maintenance activities, to focus upon the key outcomes that the client wishes to achieve. There are two objectives for this study including: (1) to produce a strategy that will guide the WB's future engagements in PBC projects; and (2) to improve the WB's service to clients by offering a variety of PBC options, to suit different operating conditions and client needs. The report details phase one, review and synthesis of existing practices and its following six tasks: task 1, taking stock of various types of PBC projects; task 2, defining various types of PBC methodologies; task 3, outlining PBC's strengths and weaknesses; task 4, clarifying both various types of PBCs and federation internationale des ingenieurs-conseil (FIDIC)-type (input and bill of quantities) contracts; task 5, discriminating between successful and less successful factors of PBC projects; and task 6, developing a work program on how to move the second phase forward.

Details

  • Author

    Gericke,Petrus Benjamin, Greewood, Ian, Henning,Theuns Frederick Phillip

  • Document Date

    2014/03/01

  • Document Type

    Working Paper (Numbered Series)

  • Report Number

    87826

  • Volume No

    1

  • Total Volume(s)

    1

  • Country

    World,

  • Region

    The World Region,

  • Disclosure Date

    2014/05/01

  • Disclosure Status

    Disclosed

  • Doc Name

    Review of performance based contracting in the road sector : phase one

  • Keywords

    Public Private Infrastructure Advisory Facility;short period of time;public-private partnership;performance based contract;contract model;allocation of risk;financially sustainable level;quality of work;quality and quantity;long-term management;cost of service;procurement of work;international lending institutions;delivery of service;delivery and maintenance;maintenance of road;standards of quality;improvement of road;Standard Bidding Documents;asset management plan;Federation of Consulting;forms of contract;level of private;improving performance;literature review;construction quality;road agency;contract form;delivery model;Road Networks;unpaved road;initial investment;physical work;load carry;risk allocation;traditional model;contractual arrangement;contract period;flow chart;pavement layer;vehicle usage;payment mechanism;contractual compliance;Toll Road;selection criterion;road sector;model form;road maintenance;price bid;photo id;road infrastructure;test result;gravel loss;subsidiary right;fiscal planning;uniform amount;paradigm shift;internal resources;asset value;risk appetite;service contract;procurement process;labor shortage;investment limit;Capital Investments;geographic region;reasons given;contract specification;financial processes;lessons learnt;decision tree;private fund;risk analysis;assessment framework;applicable law;contractual model;work necessary;physical delivery;risk sharing;insufficient fund;primary reason;contract compliance;pavement design;financial commitment;failure cost;financing cost;residual risk;payment option;risk category;study including;client needs;management style;supply chain;rapid change;heavy truck;risk model;governance model;industry specialist;hybrid model;price range;road service;remote community;quantitative analysis;insufficient funding;enabling environment;subsequent interview;risk profile;subsequent section;road safety;social outcome;contract price;change orders;road authority;routine maintenance;basic infrastructure;

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Citation

Gericke,Petrus Benjamin Greewood, Ian Henning,Theuns Frederick Phillip

Review of performance based contracting in the road sector : phase one (English). Transport Papers,no. TP-42A Washington, D.C. : World Bank Group. http://documents.worldbank.org/curated/en/985071468324286123/Review-of-performance-based-contracting-in-the-road-sector-phase-one