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Functional (Performance-based) Maintenance Contracting in Denmark

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.

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Functional (Performance-based) Maintenance Contracting in Denmark

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

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

  3. Administrative Units 2006

  4. 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

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

  6. New procurement template Contractor

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

  8. Visual survey of road condition

  9. Condition SurveyCondition index

  10. Condition Index = 1,5

  11. Condition Index = 5

  12. Condition Index = 15

  13. Performance Requirements

  14. Max. Percentage of Patching

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

  16. Shoulders and DrainageTraffic safety and water run-off Max/min edge

  17. 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 - 3,000, if not OK after period of reconditioning • Bonus ?? The contract can be prolonged e.g. by 4 years

  18. Payment Model

  19. 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

  20. 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.

  21. Municipality Contracts 2006 • 19 contracts • Of 30-300 km • total of >3000 km

  22. 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

  23. Thank you for your attention sub@vd.dk

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