Functional (Performance-based) Maintenance Contracting in Denmark

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Functional (Performance-based) Maintenance
Contracting in Denmark

• By
• Susanne Baltzer
• Danish Road Directorate
• Denmark

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Standard Danish Contracts

• Road authority sets requirements for mix design,
  and some performance requirements
• 5 year warranty period for new asphalt concrete
  layer

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Administrative Units 2006
State No long term contracts
14 Counties gt40 long term performance contracts on single road sections
300 Municipalities 19 long term performance contracts on road network 30 300 km
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Principles in Performance Contracts

• Road authority describes performance requirements
• Contractor decides product and time of laying
• Road authority buys service level not asphalt!
• Long contracts, typically 15 years
• Equal yearly payment

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What does the contract cover?

• Maintenance of
• Paved roads
• Shoulders and open drainage systems
• Road marking
• Bicycle tracks and footpaths

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New procurement template
Contractor
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Performance requirements based on data from
PM-systems
Pavement condition
VEJMAN registre
PM Vejman.dk
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Visual survey of road condition
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Condition SurveyCondition index
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Condition Index 1,5
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Condition Index 5
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Condition Index 15
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Performance Requirements
Maintenance Level Mean Condition Index Max. Condition Index per section
1 1.5 3
2 2 4.5
3 4 6
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Max. Percentage of Patching
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Also requirements to ...

• Friction
• Longitudinal Evenness
• Rutting
• Potholes
• Light reflection
• Road marking

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Shoulders and DrainageTraffic safety and water
run-off
Max/min edge
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Penalty / Bonus system

• Exceeding the mean condition index for one or
  more maintenance levels
• gt no payments that year
• Exceeding all other requirements
• gt penalty of Euro 1,000 - 3,000, if not OK after
  period of reconditioning
• Bonus ?? The contract can be prolonged e.g. by 4
  years

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Payment Model
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Why is it advantageous for the municipality ?

• Better price
• Equal yearly payment fixed !
• Quick improvement of network standard
• Maintenance level is ensured
• Lack of ressources/expertice

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Accounting standards in municipalities

• Roads and assets belong to road authority
• In the accounting system, the asset of existing
  roads stays unchanged as long as they remain
  serviceable
• Wearing courses and services included in these
  contracts are not considered investments, - only
  maintenance.

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Municipality Contracts 2006

• 19 contracts
• Of 30-300 km
• total of gt3000 km

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Performance based contracts generates development!

• As contractors are not restricted to certain mix
  designs,
• they use their network for experiments
• There is a an incentive for producing
  long-lasting pavements

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Plan of action
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Thank you for your attention

• sub_at_vd.dk