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Performance Based Contract application opportunity and challenges in Indonesian national roads management
Tamin R.Z.a, Tamin A.Z.b, Marzuki P.F.a
a Construction Engineering and Management Division, Institut Teknologi Bandung, Indonesia
b Directorate General of Highways, Ministry of Public Works, Indonesia
[vc_row][vc_column][vc_row_inner][vc_column_inner][vc_separator css=”.vc_custom_1624529070653{padding-top: 30px !important;padding-bottom: 30px !important;}”][/vc_column_inner][/vc_row_inner][vc_row_inner layout=”boxed”][vc_column_inner width=”3/4″ css=”.vc_custom_1624695412187{border-right-width: 1px !important;border-right-color: #dddddd !important;border-right-style: solid !important;border-radius: 1px !important;}”][vc_empty_space][megatron_heading title=”Abstract” size=”size-sm” text_align=”text-left”][vc_column_text]In the framework of the Indonesian national roads’ service quality improvement, Performance Based Contract (PBC), with a Design (D) – Build (B) – Operate (O) – Maintenance (M) project delivery system, deserves to be seriously considered. This paper analyzes the opportunity and challenges of PBC implementation that suits the Indonesian national road management system. It is revealed that the benefits of PBC will be gained if contractors are allowed to develop their creativity and innovation during design and construction, improve their productivity and efficiency during operation, and identify accurately the risks transferred to them by service users. It is also described that national roads have to be operated as planned according to the design Annual Average Daily Traffic (AADT) and control on overloading should be exercised during the roads’ design life in order to benefit from PBC. As long as these requirements are fulfilled, simulations on unpaved national roads have shown promising results, which include lower investment compared to DBB project delivery system, better guarantee of road condition during design life, and only a slightly higher monthly performance cost compared to the usual maintenance cost.[/vc_column_text][vc_empty_space][vc_separator css=”.vc_custom_1624528584150{padding-top: 25px !important;padding-bottom: 25px !important;}”][vc_empty_space][megatron_heading title=”Author keywords” size=”size-sm” text_align=”text-left”][vc_column_text]Annual average daily traffics,Design and construction,Design life,Maintenance cost,National roads,Performance based,Performance Based Contract,Performance costs,Project delivery,Project delivery systems,Road condition,Service Quality[/vc_column_text][vc_empty_space][vc_separator css=”.vc_custom_1624528584150{padding-top: 25px !important;padding-bottom: 25px !important;}”][vc_empty_space][megatron_heading title=”Indexed keywords” size=”size-sm” text_align=”text-left”][vc_column_text]Performance Based Contract,Project delivery[/vc_column_text][vc_empty_space][vc_separator css=”.vc_custom_1624528584150{padding-top: 25px !important;padding-bottom: 25px !important;}”][vc_empty_space][megatron_heading title=”Funding details” size=”size-sm” text_align=”text-left”][vc_column_text]The Ministry of Public Works is authorized to manage the national roads. A technical unit under the Directorate of Highways is responsible for the physical construction on each site. An effective horizontal coordination with the Ministry of Finance, the National Planning and Development Agency, and the Ministry of Domestic Affairs is needed during program and budget planning process and endorsement. Meanwhile, an internal horizontal coordination among the directorates and a vertical coordination with technical units in each regions are also required.[/vc_column_text][vc_empty_space][vc_separator css=”.vc_custom_1624528584150{padding-top: 25px !important;padding-bottom: 25px !important;}”][vc_empty_space][megatron_heading title=”DOI” size=”size-sm” text_align=”text-left”][vc_column_text]https://doi.org/10.1016/j.proeng.2011.07.108[/vc_column_text][/vc_column_inner][vc_column_inner width=”1/4″][vc_column_text]Widget Plumx[/vc_column_text][/vc_column_inner][/vc_row_inner][/vc_column][/vc_row][vc_row][vc_column][vc_separator css=”.vc_custom_1624528584150{padding-top: 25px !important;padding-bottom: 25px !important;}”][/vc_column][/vc_row]