Content of the presentation

1. Operation and Maintenance by contract, public roads in SwedenJan-Åke KarlssonSpecialist Operation and Maintenance by contract

2. Content of the presentation • History • Market contractors • Plan competition • Effects of competition • Normal maintenance area • Basic package • Project management contract • Contractor verification • Monitoring and construction inspection • Collaboration and cooperation • Key words: • Competition • Efficiency • Cooperation

3. TRAFIKVERKETSwedish Transport Administration We are responsible for longterm planning of transport for road, rail, seaand air. We are also responsible for the construction, operation and maintenance of state roads and railways. Vision and values • All arrive comfortable, green and safe

4. History A political decision was taken in the early 90s, the operation and maintenance of roads would be carried out by contractors in Sweden. Earlier the operation managed inhouse. FIA - Renewal in the Civil Engineering Industry is a Swedish project working to develop and streamline the construction industry. FIA has developed programs for more efficient operation and enhanced collaboration. FIA was created on the initiative of the Director-General of the Swedish Road Administration and the Swedish Rail Administration in December 2003.

5. From inhouse to contractors The government has been the guiding principle held that the state will not operate in a market with effective competition. The Maintenance areas where successively tendered for an eight years period, from 1992. In year 2000 all the road maintenance areas where purchased as competitive contracts on the market. A study by Magnus Arnek points to 22-27 percent lower contract prices for the procurement of competitive compared to direct orders. (Arnek 2002) National Audit Agency study from 1998 indicates a 25 percent lower prices for the procurement of the competition. (RRV1998: 59)

6. Tender prices GPD 2000 – 2011 An indicator of productivity change? Real offer 2001-2011, -1.4% / yearReal offer / CPI 2001-2011, -2.6% / yearCPI Consumer price index

7. Development of tenders in Norway

8. Tenders GPD Number of tenders

9. Information for contractors and consultantsFive regional meetingsin Sweden and one international The program is essentially the same at all locations, but with the difference that it is a regional information for each location of what is going on in the various parts of the country.The main part of the program is about business opportunities in the region, both in the short and longer term, with presentations of future procurements of maintenance and investment. We will also talk about news in our purchasing and logistics operations, supply monitoring, and the legal aspects of doing business with the state; similarities and differences in relation to private business.

10. Contractors and maintenance areas

11. Operation and maintenance by contract For operation and routine maintenance each service is described as conditions, roadstandard. Jobs that can not be described or measured by standards that are paid for work performed. The form of payment is a major driver for good jobs. Payment can be settled or paid Performed amount. As an example, final result on the road condition is stated as payment for the routine winter performances, not the snow clearing, the salting or the sanding etc. The contractor is paid for km road with an approved standard.

12. Experiences of good contracts • Good sharing risks • Good calculability • Good measurability • The right quantities to avoid speculation • Multi-year contracts • Good mix of work allows for coordination • The right way to pay work, fixed rates or adjustable work, key driver of the contractor. • Cooperation between client and contractor during the execution. "We" have a job.“The work begins when a contractor is procured” ADFASDFASDFASDFASDF

13. Operation and Maintenance contracts, package Operating Contracts or basic package service includes primarily short-term maintenance which are intended primarily to keep the road open to traffic accessibility, for example: • General works • Winter • Paved and gravel roads • Drainage • Side areas • Signs, fences and barriers • Resting areas Specific contracts for road paving, bridge maintenance, installations

14. General works InspectionContractor shall inspect and monitor the extent necessary to ensure that the standards outlined in the relevant account is maintained. • Acute injuries • When damage to the road which are dangerous to road users, the work begins after a short time.

15. Winter Criteria for startSnow depth thicknessFrictionRoughness Maximum timesSnow plowingSalting and sanding

16. Paved and gravel roads Friction Flat surface Holes and cracks Free from dust Obstacles, trees

17. Drainage No water on the road Ditches Water pipes No water in the road”body”

18. Side areas Visibility to oncoming vehicles and signs Free height Green areas and plantations Alleys Grass cutting and removing bushes Slope Clean road area Milestones and old roadstones

19. Signs, fences and barriers Road barriers Wildlife fence Traffic signs

20. Resting areas Rest and relaxation Toilet visits Any exercise and play In well-managed environment

21. Good aesthetics for road maintenance Characteristics good aesthetics in maintenance- “Orderly in everything"- Consistency in materials- Simplicity- Clean and completely- Persistent materials- Good maintenance of green plants, trees, species-rich roadsides- Good adaptation to the surrounding natural and cultural environmentWell maintained impression for customer satisfactionGood image of the sector

22. FIA- Program. More efficient Operation and Maintenance Recommended measures for creating good relations with users and local members of society • Develop forms for dialogues with motorists, passengers, rail companies, neighbouring residents, the local business community and society in general. • Develop knowledge and shed light on the connection between measures and benefits. • Establish forums between different facility owners for co-operation and the feedback of ”customer experience”.

23. FIA-More Efficient Operation and Maintenance Recommendations for creating good relations between clients and contractor to strengthen customer benefit • Develop tender documents for the procurement and contracting of operation and maintenance services. • Standardise and create common specifications .Same requirements for the state and municipalities. • Develop co-operation models to cope with the overall spectrum of events since conditions change constantly, and often rapidly. • Develop shared regulations for agreements on the contracting of operational services in the civil engineering industry corresponding to AB and ABT (General Conditions of Contract and General Conditions of Turnkey Contract) for contract works • Develop the forms and incentives for creating good working environments for all employees. • Develop the forms for and intensify work on the follow-up and exchange of experience with the aim of increasing customer benefit.

24. FIA program, increased cooperation The programme shall contribute towards developed forms of co-operation, and thus to greater efficiency and a higher level of quality in operation, maintenance and investment projects. Better working ”climate”. In a first step, it is recommended that the traditional forms for co-operation and: • Transparency • Follow-up • Improvement • Conflicts, different views • Risk management • Management by common goals • One organization On the next level, it is recommended that advanced manageme nt by objectives, active design and group development, etc. be introduced. The highest level of the programme is strategic co-operation. ABT 06. General provisions for function/standard projects for building, construction and installation

25. 2012 started a contract with both road- and railmaintenance • Purpose • Learning from each other • Find synergies or opportunities for coordination • Data • Road District Solleftea, 1 000 km • The railroad Forsmo-Hoting, 100 km • Contract 4 years + 2 years • Contractor NCC, subcontractor InfraNord