-Saroj Acharya

073MSTR262
Introduction
 Performance-Based Maintenance Contracting (PBMC)
is a contracting method that provides incentives
and/or disincentives to the contractor to achieve
desired outcomes or results; in its purest form, PBMC
does not detail how, when, or where to do the work.
 A PBM contract is an agreement between a
government department and a private contractor
whereby the private contractor maintains the road to
achieve specified condition standards for a certain
period of time in return for a fixed payment stream.
Elements of PBM Contracts
 Output-based works
 Performance-based works
Performance based Works in PBM Contracts
 The desired service levels that describe the thresholds
the Contractor is required to achieve are mentioned in
Contracts and the monthly payment are made on
achieving those standards.
 Monthly payments are reduced if the service levels are
not maintained.
Performance based Works in PBM Contracts
Research Objective
 According to a Research paper Mulmi “Assessment of
Performance Based Road Maintenance Practices
in Nepal” by A.D. Mulmi “Proper discussion with time
frame among all of the stakeholders to modify and
develop the PBMC document compatible with Nepali
Environment and its implementation. Service quality
indicators, inspection format, penalty reduction
provision specified in PBM contracts are not quite
compatible to Nepali Environment and so it needs
modification.”
Methodology
 Review of Literature:
 Development of Service Level Criteria for Performance
Based Road Maintenance Contracts
 Data Collection
 Verification in Study Area
 Analysis and Outcome
 Conclusion and Recommendation
Review of Literature
 Study of contract documents of present Performance
Based Road Maintenance Contracts in Nepal.
 Standard Contract documents prepared by
Multilateral banks in neighboring countries
 Research papers on Performance based contracts
 Completion Report of Completed Performance Based
Road Maintenance Contracts in Nepal.
Development of Service Level Criteria for
Performance Based Road Maintenance Contracts
 Base on the information from the contract documents
of existing Performance Based Road Maintenance
Contracts and the relevant information from above
literature review, a Service Level Criteria for
Performance Based Road Maintenance Contracts will
be developed.
 A survey will be conducted among the Engineers’ who
have been involved in Performance Based Road
Maintenance Contracts for their inputs on developing
a compatible Service Level Criteria for Performance
Based Road Maintenance Contracts.
Development of Service Level Criteria for
Performance Based Road Maintenance Contracts
 The Progress report of the concluded Performance
Based Road Maintenance Contracts will be studied to
determine the Service Level Criteria which are not met
in most of the projects and new Service Level Criteria
will be proposed such that the new Service Level
Criteria still ensures minimum Level of Service
Criteria.
Data Collection
 Secondary Data from the literature review
 Primary data from the running Performance based
road contracts.
Verification in Study Area
 Verification of proposed Service level in the sites of
existing and concluded Performance Based Road
Maintenance Contracts sites of Department of Roads
(DoR) and Department of Local Infrastructure
Development and Agricultural Roads (DoLIDAR)
Analysis and Outcome
 Analyze if existing service level is compatible with
respect to the real sites
 The new service level standard is proposed based on
the result such that they met the minimum service
standard and are practical enough to enforce in
context of Nepal
Conclusion and Recommendation
 We will have a revised set of Service level criteria for
Performance based Road Maintenance which is more
compatible than the existing set of Service level
Criteria based from the research.
Referances
 William, H. Performance Based Contracting for
Maintenance, a Synthesis of Highway Practice. Washington
DC: Transportation Research Board, 2009.
 Mulmi, A.D. “Assessment of Performance Based Road
Maintenance Practices in Nepal.” Open Journal of Civil
Engineering, 6, 2016: 225-241.
 DoLIDAR (2018), Contract Agreement Volume 1,
Upgrading and Performance Based Maintenance of Rural
Roads in Rukum District, Contract Nos.
DoLIDAR/RCIP/Works/NCB-11/2074/075. Department of
Local Infrastructure Development and Agricultural Roads,
Lalitpur
Thank You!