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Maintenance Contracts for Rural Roads Maintenance Contracts for Rural Roads
International Road Federation (IRF)German Agency for Technical Cooperation (GTZ)
Economic Commission for Latin America and the Caribbean(ECLAC))
Technical Assistance Program of the Federal Republic of Germany
e-mail: [email protected]://www.zietlow.com
XXIst World Road Congress, Kuala Lumpur, 3 - 9 October 1999
Presented byDr. Gunter Zietlow
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Performance Specified Road Maintenance Contracts
-The Road to the Future -
Performance Specified Road Maintenance Contracts
-The Road to the Future -
International Road Federation (IRF)German Agency for Technical Cooperation (GTZ)
Economic Commission for Latin America and the Caribbean(ECLAC))
Technical Assistance Program of the Federal Republic of Germany
e-mail: [email protected]://www.zietlow.com
XXIst World Road Congress, Kuala Lumpur, 3 - 9 October 1999
Presented byDr. Gunter Zietlow
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Overview ofPresentationOverview ofPresentation
Introduction Alternative contractual
schemes Case studies Lessons learned
Introduction Alternative contractual
schemes Case studies Lessons learned
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ObjectiveObjective
To improve road conditions
and/or reduce maintenance cost.
To improve road conditions
and/or reduce maintenance cost.
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PreconditionPrecondition
Contracting out rural road maintenance requires a secure and stable flow of funds.
Contracting out rural road maintenance requires a secure and stable flow of funds.
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FundingFunding
National or regional road (maintenance) fund
Local funds Local dedicated taxes Road access and/or user fees
levied on property levied on production vehicle registration fees fees levied on motor fuels
Local road boards to control proper use of funds
National or regional road (maintenance) fund
Local funds Local dedicated taxes Road access and/or user fees
levied on property levied on production vehicle registration fees fees levied on motor fuels
Local road boards to control proper use of funds
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How often did I tell them:
we need a road fund
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Contractual schemesContractual schemes
Unit price contract Lump sum contract Performance specified contract
Unit price contract Lump sum contract Performance specified contract
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Stages
1 2 3
Policy andoverallplanning
Administration Administration(contract
supervision)
Administration(contract
supervision)
Detailedplanning andsupervision
Administration Engineer(Contract)
Maintenanceworks
Contractor Contractor
Contractor( integral contract,
performancespecified contract,
total assetmanagement
contract)
ResponsibilitiesResponsibilities
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Performance Specified Road Maintenance Contract
Performance Specified Road Maintenance Contract
A service level agreement between the road authority and a contractor concerning a schedule of payments in return for an agreed level of road condition performance or
measurable parameters defining the performance of drainage system,road side assets, traffic assets, road surface and bridges in terms of maintenance program outcomes.
A service level agreement between the road authority and a contractor concerning a schedule of payments in return for an agreed level of road condition performance or
measurable parameters defining the performance of drainage system,road side assets, traffic assets, road surface and bridges in terms of maintenance program outcomes.
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Performance SpecifiedRoad Maintenance Contracts
- Example of Performance Indicators -
Performance SpecifiedRoad Maintenance Contracts
- Example of Performance Indicators -
Visual appreciation Potholes Cracks Rutting Obstruction of drainage system Others
Roughness (IRI) Friction Deflection ......
Visual appreciation Potholes Cracks Rutting Obstruction of drainage system Others
Roughness (IRI) Friction Deflection ......M
ETH
OD
OF
VER
IFIC
ATI
ON
MET
HO
D O
F VE
RIF
ICA
TIO
N
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Contracting out can reduce road maintenance cost
Contracting out can reduce road maintenance cost
100
80
60
100
50
30
0 20 40 60 80 100 120
LOW
HIGH
PERFORMANCE SPECIFICATIONS
UNITE PRICE CONTRACTS
FORCE ACCOUNT
%ROAD MAINTENANCE COSTROAD MAINTENANCE COST
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1089 km of earth roads Lump sum 3 year contracts, one contractor Contract price resulted in savings > 30% Cost of maintenance: US$ 1000 per km Financing: Road user fee (US$ 2.2 per acre) Contractor collects the fee
1089 km of earth roads Lump sum 3 year contracts, one contractor Contract price resulted in savings > 30% Cost of maintenance: US$ 1000 per km Financing: Road user fee (US$ 2.2 per acre) Contractor collects the fee
ArgentinaProvince of Buenos Aires, General Arenales
ArgentinaProvince of Buenos Aires, General Arenales
BEFORE AFTER
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130 performance specified road maintenance contracts maintaining 4100 km of roads (routine maintenance only)
130 small scale enterprises Sanctions for non-
compliance Financed through the
national road maintenance fund
Guatemala
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300 km urban and 280 km rural roads 15 small scale enterprises (cooperatives)
with a total of 151 persons 6 contracts with administrators which will
guide and supervise the small scale enterprises
Contracts are based on performance specifications
US$ 1600 per km (US$ 900 per km for routine maintenance, US$ 700 per km for administration)
300 km urban and 280 km rural roads 15 small scale enterprises (cooperatives)
with a total of 151 persons 6 contracts with administrators which will
guide and supervise the small scale enterprises
Contracts are based on performance specifications
US$ 1600 per km (US$ 900 per km for routine maintenance, US$ 700 per km for administration)
ColombiaMunicipality of PopayánColombiaMunicipality of Popayán
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Activities performed by small-scale contractorsActivities performed by small-scale contractors
Minor pothole patching
Cleaning of pavement and right-of-way
Cleaning of drainage system
Maintenance of road signs
Vegetation control Clearing of land
slides Removing of bill
boards Emergency
response Erosion control
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Activities of the administratorsActivities of the administrators
Physical inventory Evaluation of
pavements Traffic counts Advising on
maintenance procedures
Design of small structures
Emergency response
Environmental protection
Accident recording Road user
inquiries Proposing road
and bridge improvements
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10 contracts with former employees of the road administration of ~ 180 km of national and rural roads each
4 contracts between 250 and 350 km each contracts cover a specific district with different
kind of road surfaces Maintenance by
performance specifications
Contract periods are 4 - 5 years
10 contracts with former employees of the road administration of ~ 180 km of national and rural roads each
4 contracts between 250 and 350 km each contracts cover a specific district with different
kind of road surfaces Maintenance by
performance specifications
Contract periods are 4 - 5 years
UruguayUruguay
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Contractor has a well developed auto evaluation and control system.
There are extensive reporting procedures. Road administration is using a sophisticated
evaluation scheme to control adherence to performance standards.
Monthly payment is based on a monthly evaluation taking 10% of the assets at random.
Penalties are being applied if defects are not rectified with a specific time period.
Contractor has a well developed auto evaluation and control system.
There are extensive reporting procedures. Road administration is using a sophisticated
evaluation scheme to control adherence to performance standards.
Monthly payment is based on a monthly evaluation taking 10% of the assets at random.
Penalties are being applied if defects are not rectified with a specific time period.
Uruguay Uruguay
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Lessons Learned (1)Lessons Learned (1)
A secure and stable flow of funds is a precondition for contracting out road maintenance.
Contracting out will eventually result in substantial savings and improvement of road conditions.
Contracting small scale enterprises preferably cooperatives made up of people living along the road show excellent results.
Good supervision is a key to success.
A secure and stable flow of funds is a precondition for contracting out road maintenance.
Contracting out will eventually result in substantial savings and improvement of road conditions.
Contracting small scale enterprises preferably cooperatives made up of people living along the road show excellent results.
Good supervision is a key to success.
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Lessons Learned (2)Lessons Learned (2)
Generally contractors and supervisors need adequate training, especially small scale contractors.
Direct contract letting may be acceptable in the beginning but only competitive bidding will drive prices down.
Performance specified road maintenance contracts should be introduced gradually.
Generally contractors and supervisors need adequate training, especially small scale contractors.
Direct contract letting may be acceptable in the beginning but only competitive bidding will drive prices down.
Performance specified road maintenance contracts should be introduced gradually.
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Lessons Learned (3)Lessons Learned (3)
Performance indicators should be comprehensive and clearly defined and measurable.
Penalties for non-compliance should be sufficiently high to encourage the contractor to comply in the first place.
Control of compliance with performance standards should be strict.
Performance indicators should be comprehensive and clearly defined and measurable.
Penalties for non-compliance should be sufficiently high to encourage the contractor to comply in the first place.
Control of compliance with performance standards should be strict.
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VISIONNoNo
potholespotholes
Transport CostBusiness
Opportunities
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For further information, please visit my website at
http://www.zietlow.com
