PERFORMANCE BASED MAINTENANCE CONTRACTS

ByB.RAJAGOPAL REDDY

CHIEF ENGINEER (R&B)&MD,RDC,A.P.,HYDERABAD.

Highway EngineerCONSTRUCTION (Initial Activity)

MAINTENANCE (Regular Activity)

HIGHWAY MAINTENANCEDEFINITION

“Highway Maintenance, in general, is the preservation, upkeep and restoration of the roadway & structures as nearly as possible in the condition in which they have been constructed”

PAVEMENT MAINTENANCE DEFINITION

“Pavement maintenance is the routine work performed to keep a pavement, under normal conditions of traffic and normal forces of nature, as nearly as possible in its as constructed condition.”

Why…..maintenance is neededTO PREVENT FAILURE OF PAVEMENT DUE TO

Action of trafficEnvironmental effectsOxidation of BitumenIngress of waterInadequacies of initial designPoor Subgrade

MAINTENANCE SYSTEMS

Conventional System (Traditional)

Performance Based System (Modern)

Disadvantages with Conventional System

Mostly labour oriented using out dated plants.Repairs are attended once in a Season or a yearNo preventive maintenance techniquesCauses Atmospheric pollution Slow outturn and prolonged inconvenienceNo patrolling are surveillance Recurring maintenance costs

PERFORMANCE BASED MAINTENANCE CONTRACTS

Aspects of presentation

Introduction to PBMC PBMC Andhra PradeshHow to promote PBMC

INTRODUCTION TO PERFORMANCE BASED MAINTENANCE CONTRACTS

Why …. PBMC

As a solution to the drawbacks of conventional system

As a system to meet the service needs of the road usersAs a system in which payment is

made based performance /outcome rather than on inputs

Objectives of PBMCA pro-active approach to avoid unacceptable pavement distress

Providing uniform and consistent methods to the planning,program control, budget control,and reporting road maintenance.

Maximizing the level of service provided to road users within the budget and other constraints

Change of ApproachConventional PBMCPriority road wiseDuring VVIP VisitsInput basedMethods, quantities definedPayment on quantity baseCompletion of work, then payment

Item wise, Sector wise priorityOutput basedContractor free to decideOn Performance baseLump sum based

TYPES OF PBMC

Pilot based performance based contracts Long /short term contractsSingle / multi /total asset maintenance contractsManagement and maintenance contractsOutput-and performance based road contract

Where …. PBMC is implemented

1988 British Columbia, Canada1990 Argentina1995 Sydney, Australia1996 Virginia, USA1996/7/8 Uruguay, Chile, Colombia, Brazil1998 New Zealand2000 Chad2001 India (Andhra Pradesh, Karnataka)2001 Spain (Alava)

Performance Based maintenance Contracts

Maintenance of roads with respect to clearly defined service levels/performance indicatorsPayments based on performanceEncourages Preventive maintenance TechniquesProven to be effective and economicalContractor is free to decide , plan maintenance activities

Design Standardsand Intervention Standards

Design Standard

Intervention Standard

Acceptable range of Conditions

Unacceptable Conditions

What …are controlling factorsMile Stone :The specified time or period for

completion of specified works.Intervention Standard (Service level): The level

of defect at which intervention is required for rectification of defectRectification standard (Response time) : It is the

specified time for rectification of a defect which is below specified intervention standard from the time of defect falling below intervention standard.

PERFORMANCE BASED MAINTENANCE CONTRACTS IN ANDHRA PRADESH

PERFORMANCE BASED MAINTENANCE SYSTEM IN ANDHRA PRADESH

1.Under world bank loan APPRMP was taken up in four districts.2.Two slices in each district of Chittoor,Kurnool,Gunturand Nalgonda.3.Each slice having about 150 Kms of road length4.The Australian consultants gave training to (R&B) Dept.staff and Contractor’s staff.5.Patrol Maintenance Units functioned effectively.6.Bobcat,Synchronised Chip sealer were high lights of the project

ANDHRA PRADESH PILOT ROAD MAINTENANCE PROJECT

A PBMC On pilot basisUnder world bank loan assistanceA subsidiary project of APSHPTwo years periodVIC Roads- consultants2001-2003Four packages in four districtsEach package with two slices of about 150 Km

What….. Is the concept of APPRMPThe administration is by lump sum contract Limited provisional and periodical provisionsTo bring below intervention standard during the mile stone period Monthly joint inspections to assess jobs below intervention standard Carrying OM activities as per monthly programmePMU- Key factor for success of APPRMPPayment deductions for failures

Contractor’s Responsibilities

Maintain Road and Bridge Sites

Provide Monthly Works Program

Provide Costs and Work Outputs

Attend Monthly Site Meeting

Free to evolve alternative maintenance techniques

Entrepreneur is free to Decide

What to doHow to doWhen to doWhere to do

Subject to prior approval of programmefor Keeping the road below Intervention

Standard( Service level)

RBD Engineer’s ResponsibilitiesApprove Provisional Quantities

Attend Monthly Site Meetings

Report Finances and Outputs to Project Director (monthly)

Organize Surveillance and Audit Activities

What….. are the components of APPRMP

Ordinary MaintenanceProvisional MaintenancePeriodic MaintenanceEmergencies

Lump Sum Maintenance

♦ The Lump Sum activities only apply to the 20 Standard Jobs

♦ Activities outside those jobs are to be considered Provisional Quantities or Day works

♦ Repair need not be commenced until the defect reaches a certain level (Intervention Standard)

♦ The time given to repair once the defect has reached the limit is the Rectification Standard

♦ Defects not repaired to Rectification Standard may be subject to a deduction

Ordinary MaintenanceThe routine activities required for keeping the road assets in serviceable and perceivable condition .Under performance based maintenance

system for these items of work payment will be made on lump sum basis. The contractor will submit monthly program and which will be approved by the engineer and any lapse in achieving the monthly program will result in imposing of penalties.

ORDINARY MAINTENANCE WORKS1) Potholes repairs, Dig out repairs, Sunken portion repairs2) Edge repairs3) Scour filling with gravel / side earth4) Shoulder / Berms repairs5) Vents clearance6) Julifera jungle clearance7) Shrub clearance8) Light jungle clearance9) Clearance of litter / debris10) chip concreting to slabs on exposed steel surfaces11) Masonry repairs to the body wall / piers / abutment / retaining walls / parapets. Contd.

12) Plastering to the body wall / piers / abutment / retaining walls / parapets.13) Road Markings14) Painting to HM / Km stones15) White Washing16) Painting to hard rails / Guard stones / guide stones of C.D works / bridges17) Replacement of HM / Km Stones 18) Reconstruction of small pipe culverts19) Engaging unskilled labour for carrying out works of items which have no data like vents/debris/litter clearance, drain chutes20) Other items (to up keep the road traffic worthy, protect the road as asset).

Provisional maintenance

Items are provided for bringing the road to below intervention standard at the starting of the project . (Beyond which the maintenance of the road will be carried through ordinary maintenance only)

Periodic MaintenanceThis provision is made for carrying the periodical maintenance through chip sealing ( surface dressing )

Carried during the mile stone period to bring the bad reaches to below intervention standards.

Emergency itemsThese items are proposed for meeting the emergency situations beyond the human control which occurs without notice .

Under this provision certain machinery hours, Mazdoor days , etc., are proposed.

Emergencies24 Hour Availability

Emergency Equipment

Working with Local Authorities

♦ Contractor and Patrol Maintenance Unit (PMU) to be easily contactable.

♦ Mobile telephone or Two–way Radio to be with the PMU

♦ RBD 24 hr telephone service

Surveys / Inspections

Initial Condition Survey (Joint)all major defects that require treatment other than standard jobs are noted.

Item Condition Survey (Joint)jointly carried out at the end of each month for evaluating the performance by the contractor and assessing the deduction in the monthly lump sum payment.

Completion Condition Survey (Joint)before the end of contract

Safety Inspections (Contractor)for assessing the safety of the traffic.

Intervention Inspections(Contractor)for noting down the jobs that needs rectification.

PAYMENTS FOR APPRMPOrdinary Maintenance - Performance based

Periodic items - Quantity based

Provisional Items - Quantity based

Emergency items - Quantity based

LESSONS LEARNED* Road conditions in pilot areas have improved notably* Service levels to road users drastically improved* Pilot schemes should be carefully planned and implemented.* Engineer and entrepreneur should treat the agreement as partnership deed* Should collectively make efforts to make these projects successful* Substantial reduction of road maintenance costs cannot be expected immediately.* Introduction of new machineries.5) Training in management, financial and technical issues is essential for the success

ADVANTAGES OF PERFORMANCE BASED MAINTENANCE CONTRACTS

•* Reduces road maintenance costs •* Improvises road conditions•* Increased service levels•* Added safety to road users•* Prolong the life of asset•* prolong the needs for repairs or rehabilitation•* Reduces the Vehicle operating costs•* payments only for performance

SUCCESS OF PBMC1.In Chittoor District it was very successful.2.The World Bank representatives have appreciated the performance.3.Quite successful due to more commitment of contractor and his staff and Dept.staff4.Consultants played key role in planned training.5.Department officials implemented clauses firmly while maintaining friendly relation ship with fairness.6.Separate staff were allotted for the project.7.Periodic and Provisional maintenance items were executed early8.The Contractor learned the preventive maintenance techniques through which he could earn profits.9.Better understanding of the concept,approach by the staff involved.

FAILURE OF PBMS1.Failure in certain districts2.No change in mindset of staff 3.Consultants failed to educate the staff4.Audit aspects, lumpsum payments,No measurements. 5.Non adoption of ”A STITCH IN TIME” approach. 6.Contractors disinterest on OM items7. Non sparing of separate RBD staff8. Delayed execution of PM items9.Adaptation of conventional techniques machinery10.Launching in monsoon season

COMPREHENCIVECOMPARISION

BETWEEN

APPRMP AND

CONVENTIONAL SYSTEM OF MAINTENANCE.

•CONVENTIONAL SYSTEMMostly labour oriented still using out dated plants. Eg. Heatingof bitumen in drums,Spraying of Bitumen manually resulting in nonuniform spraying of bitumen etc,

♦ A.P PILOT ROAD MAINTENANCE

Envisages usage of state of art of Technology and machinery like PMU, Bobcat, Chainsaw etc.,

departmental gang mazdoors were there it was efficient system of maintenance but nowadays with skeleton staff it is not possible to maintain the road at intervention level all the days.For small contractors it is not possible to employ crew for daily patrolling and engaging PMU like vehicle for patrolling& maintenance

Targets for maintaining the road at intervention level all through the year Eg.In case any pot hole develops and if it's area exceeds 0.25 Sqm the contractor has to fix it within three weeks time ,otherwise he will be penalised.

♦As local and unskilled labour are engaged and no proper machinery are used,hence in the system of maintenance cracks though is noticed it will not be attended till it develops,into a pothhole thus it leads to recurring maintenance costs.Most generally in conventional system of maintanance no treatment is given to that crack develops into a Pothole.

As this system envisages for usage of proper machinery and methods, recurring maintenance is avoided.Eg.(a)If a pot hole is laid it will not fail as it is laid by proper method using proper equipment (b)A crack will be sealed by crack without allowing it to become a pot hole.

Under A.P.P.R.M.P (FOR BAD REACH OF km:0/0 to 26/0) Under normal maintenance similar conditioned Tirupati Kothapalli mitta road is considered Kalavagunta-Nendragunta road is considered Km 0/0 to23/0

1 Pot hole patching - 1,48,671.00 1 Pot hole patching 3,77,494.00

2 Dig out Repairs - 1,72,948.00 2 Shoulder Repairs 1,62,974.00

3 Shoulder Repairs - 79,648.00 3 Jungle Clearence 32,016.00

4 Culvert ventway cleaning - 26,349.00

4 Repairs to CD Works 51,362.00

5 Culvert Repairs - 46,430.00 5 Patching KM & HM Stones - 59,176.00

6 Culvert U/S & D/S Vagu Repairs - 14,450.00

7 Minor Suraface Repairs - 5,670.00

8 KM:/ HM Stones Repairs - 560.00

9 Crack Sealing - 3,460.00

10 Edge Repairs - 2,750.00

11 Pavement Sweeping - 400.00

12 Jungle Clearence - 29,640.00

13 Sign Maintanance - 800.00

14 Gaurde Stones Repairs - 9420.00

15 KM & HM & Painting Village Name Boards - 63,400.00

Total: 6,04,596.00 6,83,022.00

Rate per KM: 23,254.00 Rate per KM: 29,697.00

CONSIDERING BAD CONDITION ROADS IN BOTH P.R.M.P AND UNDER NORMAL MAINTENANCE.

COST COMPARISION

1 Amount paid to contractor is at the rate of Rs.20,000/-per KM (paid as lumpsum) per annum.

1 Amount paid to contractor is total amount as peractual quantities

2 The number of maintenance repairs carried bycontractor are 16 items.

2 Only 5 maintenance repairs are carried.

3 The pot holes and other repairs are carried withinrectification standard items avoiding discomfort tothe traffic and resulting in increased service.

3 The repairs are taken up after monsoon thus thetraffic will suffered through out the monsoon periodand also results in increased quantities and hencehigher maintenance costs.

4 The maintenance cost are also very low as propermachinery is adopted with increased outturns anddecreased over head costs.

4 The maintenance costs are very high as most ofrepairs are labour oriented with decreased out turns .

5 For carrying similar jobs(ie. 5 items only )it has costed Rs5,40,737. For similar maitenance as that of normal maintenance the Km Rate is Rs 20 797/-

5 Where as in normal maintenance it costed Rs 29697/_ per Km.This is due non employment of machinery & Letest Methods of execution

REMARKS

NOTE:- The total amount spent by enterprenuer is Rs.6,04,596/- inclusive of ordinary maintenance lumpsum and provisional items ie; pavement digout repairs. Hence ordinary maintenance Lumpsum expenditure excluding provisional item is

CHITTOOR - GUDIYATHAM ROAD (20.40 Kms) CHITTOOR-ARAGONDA ROAD (17.40 Kms)

1 Pot hole patching - 24,000.00 1 Patch works - 63,907.00

2 Dig out Repairs - 9,000.00 2 Jungle Clearance - 13,396.00

3 Shoulder Repairs - 12,400.00 3 Painting - 29,706.00

4 Crack Sealing - 16,800.00 4 Shoulder - 29,706.00

5 Minor Suraface Repairs - 37,400.00

6 Culvert Ventway clearing - 14,400.00 TOTAL 1,33,981.00

7 Culvert U/S & D/S Vagu Repairs - 9,650.00 KM WAR RATE 7,612/-

8 Edge Repairs - 3,450.00

9 Sign Maintanance - 3,120.00

10 Bitter Control - 4,400.00

11 Vandalism Control - 670.00

12 Gaurde Stones Repairs - 1,170.00

12 KM:/ HM & Village name boards - 55,000.00

TOTAL 2,80,580.00

KM WAR RATE 13,754.00

COST COMPARTIVE STUDY ON AN AVERAGE CONDITIONED ROAD(Similar conditions)

1 On a average condition road the cost is coming toRs.13,754/- On this road the amount paid is little high.

1 The KM war rate is very low as only limited maintenancejobs are carried.

2 However on this road also the normal contractor hascarried 4 No. of jobs only where as PRMP contractor 13different jobs are carried and hence increased cost

2 The serveciability is very low as no monitoring is madewith respect to rectification time and only 4 jobs arecarried

3 Here the serviciability is quick (With in RectificationStandard) the defects are attended.

3 As no preventive measure like crack sealing a minorsurface repairs are carried recurring maintenance cost ofaccrues.

45 As the crack sealing & minor surface repairs are carried,the maintenance costs for coming years will bedecreased.

4 As no preventive maintenance jobs like crack sealing are carried ,frequent renewals are required

5 For carrying similar 4 standard jobs it has costedRs1,00,400. Which works out to Rs4921/-

5 For carrying only 4 jobs it costed Rs7612/- due impror methods of execution ,non adoption of proper machinery, recurring maintenance costs,decreased outputs,wastage of materials man power etc.,

REMARKS

PRESENTED BY B. RAJAGOPALREDDYCHIEF ENGINEER (R&B)&MANAGING DIRECTOR APRDC, HYDERABAD