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Performance-based dynamic contracting mechanism

Author

Listed:
  • Hatice C. Demirel
  • Jules G. Verlaan
  • Shahid Suddle

Abstract

Road infrastructure contracting is becoming more complex due to changing transport needs and new technologies. Transportation agencies are struggling with this increased complexity. Around the world, agencies have developed a variety of methods for undertaking outsourcing initiatives known as performance-based contracting and total asset management planning. This paper investigates how agencies can deal with changing circumstances in the outsourcing of construction and maintenance activities, based upon work in performance-based contracting in the Netherlands. Using data from maintenance contracts from Rijkswaterstaat, we will develop a framework that can be used to compare several contracting practices and establish performance levels by using variables such as performance measurements. Our methodology offers significant improvements to road network performance outcomes, which enables an organisation to maximise value and deliver its objectives in an effective way. The outcomes are useful to transportation agencies for making decisions about contract price methods based on economic rationale.

Suggested Citation

  • Hatice C. Demirel & Jules G. Verlaan & Shahid Suddle, 2012. "Performance-based dynamic contracting mechanism," International Journal of Critical Infrastructures, Inderscience Enterprises Ltd, vol. 8(2/3), pages 205-215.
    • Handle: RePEc:ids:ijcist:v:8:y:2012:i:2/3:p:205-215
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