Contracting for road maintenance in the Netherlands:The downside of Performance-Based Contracting

A trend towards performance-based contracting (PBC) can be observed in public infrastructure maintenance. PBC is an approach of tying the contractor's payment to specified performance. We investigated PBC for the maintenance of highways and roads in the Netherlands, identifying issues ultimately resulting in poor contractor performance. The PBC-induced risks for clients relate to the problematic translation and measurement of specifications, the ineffectiveness of incentives, the avoidance of contractors taking full responsibility, and contract management issues. Clients should recognize the a... Mehr ...

Verfasser: Gelderman, Cees J.
Semeijn, Janjaap
de Vries, Sjerp
Dokumenttyp: Artikel
Erscheinungsdatum: 2019
Reihe/Periodikum: Gelderman , C J , Semeijn , J & de Vries , S 2019 , ' Contracting for road maintenance in the Netherlands : The downside of Performance-Based Contracting ' , Infrastructures , vol. 4 , no. 3 , 41 . https://doi.org/10.3390/infrastructures4030041
Schlagwörter: performance-based contracting / PBC induced risks / road maintenance
Sprache: Englisch
Permalink: https://search.fid-benelux.de/Record/base-26821122
Datenquelle: BASE; Originalkatalog
Powered By: BASE
Link(s) : https://cris.maastrichtuniversity.nl/en/publications/27c495fb-cab5-4800-b2d8-1b5334fc9510

A trend towards performance-based contracting (PBC) can be observed in public infrastructure maintenance. PBC is an approach of tying the contractor's payment to specified performance. We investigated PBC for the maintenance of highways and roads in the Netherlands, identifying issues ultimately resulting in poor contractor performance. The PBC-induced risks for clients relate to the problematic translation and measurement of specifications, the ineffectiveness of incentives, the avoidance of contractors taking full responsibility, and contract management issues. Clients should recognize the actual balance of power in the relationship with their (main) contractors, and take appropriate measures.