Lessons Learned in Output and Performance-Based Road Maintenance Contracts

By delivering efficient, cost-effective and innovative maintenance services, well-designed output and performance-based road maintenance contracts can help maintain road assets and achieve value-for-money. Output-based contracts can also help governments build experience in undertaking Public-Private Partnerships (PPPs). Several factors need to be considered when designing and implementing these contracts to achieve their full benefits.

This document discusses five key lessons learned from PPIAF and the World Bank Group’s experiences in using output-based road maintenance contracts:

1. Successful output-based contracts require suffi cient dedicated fiscal resources and realistic performance expectations;
2. Private operators may need training and capacity building to bid for and implement output-based contracts;
3. Clear baseline data is needed to establish and monitor performance indicators and standard;
4. Simple performance indicators and user monitoring can improve contract performance;
5. Vehicle overloading is a major challenge to implementing effective output-based maintenance contracts.

Publication Date: 14.2010