Exploring performance-based contracts: a Good Option to Address Long-Term road maintenance in California?

Timespan: March 2023 - December 2023
Development Organization: Developed at California State University, Fresno, USA
Funding Agency: Fresno State Transportation Institute and California State University, Fresno

Background

SB1 aims to “fix neighborhood streets, freeways, and bridges in communities across California” (State of California 2021). The purpose of the projects developed under this framework is not only to fix current deficiencies but also to provide an effective long-term performance of roads and bridges. Thus, in these projects, enhancing long-term performance is one of the main goals.

Project goals are the basis for public agencies to select each project’s contracting strategy. In fact, lifecycle issues, such as lifecycle costs and maintainability, are aspects to be considered when selecting the contracting strategy (Touran et al. 2009).

PBC, in contrast with traditional contracts, considers payments for the construction, management, and maintenance of road assets explicitly linked to the contractor successfully meeting or exceeding a clearly defined number of performance indicators (Wirahadikusumah et al. 2015)

Previous studies have analyzed the use by public administrators of PBC in other states and countries. However, there is a knowledge gap on how these contracts might be applied in California’s road maintenance.

Research Objective

This research project aims to explore performance-based contracts (PBC) as a contracting strategy that might facilitate the application of new materials, design, and technology to address long-term road maintenance in California. This research contributes to objective 3 of the California Senate Bill (SB 1) by (1) identifying the benefits and limitations of PBC compared to traditional contracts and (2) exploring the experience of other states and countries in the implementation of PBC for road maintenance to inform the implementation of these types of contracts in California.

Research Methods

The research follows a three-step methodology including (1) structured literature review, (2) content analysis using the software dedoose, and (3) results obtention.

Contributions

In preparation: “Is a performance-based contract a good option for my project? A structured approach to guide decision-makers”
Poythress R., Shrestha R, Calahorra-Jimenez M. Target Journal: ASCE Journal of Construction Engineering and Management [DOI]

Research Team