Functional (Performance-based) Maintenance Contracting in Denmark By Susanne Baltzer Danish Road Directorate Denmark

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

Administrative Units 2006 StateNo long term contracts 14 Counties>40 long term performance contracts on single road sections 300 Municipalities19 long term performance contracts on road network 30 – 300 km

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

What does the contract cover? Maintenance of: Paved roads Shoulders and open drainage systems Road marking Bicycle tracks and footpaths

New procurement template Municipalities PMS provider / consultant Contractor

Performance requirements based on data from PM- systems User PM Vejman.dk VEJMAN registre Pavement condition

Visual survey of road condition

Condition Survey Condition index

Condition Index = 1,5

Condition Index = 5

Condition Index = 15

Performance Requirements Maintenance Level Mean Condition Index Max. Condition Index per section

Max. Percentage of Patching

Also requirements to... Friction Longitudinal Evenness Rutting Potholes Light reflection Road marking

Shoulders and Drainage Traffic safety and water run-off Max/min edge

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

Payment Model

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

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.

Municipality Contracts 2006  19 contracts  Of km  total of >3000 km

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

Plan of action

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