Framework to Implement Performance-Based Contracting for Chip-Seal Road Maintenance
Publication: Journal of Construction Engineering and Management
Volume 148, Issue 1
Abstract
The road maintenance workload for transportation agencies increases every year. To maintain roads effectively, one contracting method state Departments of Transportation (DOTs) use to outsource is performance-based contracting (PBC). However, state DOTs are having problems identifying the execution issues with PBCs. This study prepares a framework for execution of the PBC method for chip seals (one of the highest expenditure activities for most states), to help guide state engineers to effectively execute the contracts. This framework was developed by conducting a Delphi study with state engineers. The study found five reasons for selecting PBC chip seal; five performance measures; a range of incentives/disincentives to be provided; and the method of PBC team training. For the procurement phase, this study identified the five personnel to be included in the procurement team, as well as the contract duration and best contractor selection method. Similarly, for the contract implementation phase, the five key personnel to be included in the project implementation team, the best way to manage traffic, the timeliness to fix defects, responsibility, the frequency to complete quality assurance work, and the mobilization payment method were identified. As the primary contribution, this paper identified the critical factors of PBC contract life-cycle phases and developed a framework that will provide an easy-to-follow guide to execute PBC contracts to state DOTs. This study has a limitation with its sample size in the Delphi study due to a lack of experience of state DOTs in using the PBC method. The authors recommend conducting similar studies for other activities (cleaning, culvert cleaning, etc.) with larger sample sizes.
Get full access to this article
View all available purchase options and get full access to this article.
Data Availability Statement
The corresponding author will provide all the data used in this study upon reasonable request. It includes all the data collected during the Delphi study in the first, second, and the third rounds.
Acknowledgments
The authors would like to acknowledge all the state engineers and managers and academicians who served as expert panel members for this study.
References
Adams, J., C. Castorena, and Y. R. Kim. 2019. “Construction quality acceptance performance-related specifications for chip seals.” J. Traffic and Trans. Eng. 6 (4): 337–348. https://doi.org/10.1016/j.jtte.2019.05.003.
Anastasopoulos, P., B. McCullouch, K. Gkritza, F. Mannering, and K. Sinha. 2010a. “Cost savings analysis of performance-based contracts for highway maintenance operations.” J. Infrastruct. Syst. 16 (4): 251–263. https://doi.org/10.1061/(ASCE)IS.1943-555X.0000012.
Anastasopoulos, P. C., R. J. G. M. Florax, S. Labi, and M. G. Karlaftis. 2010b. “Contracting in highway maintenance and rehabilitation: Are spatial effects important?” Transp. Res. Part A: Polity Pract. 44 (3): 136–146. https://doi.org/10.1016/j.tra.2009.12.002.
Anastasopoulos, P. C., J. Haddock, and S. Peeta. 2014. “Cost overrun in public-private partnerships: Toward sustainable highway maintenance rehabilitation.” J. Constr. Eng. Manage. 140 (6): 04014018. https://doi.org/10.1061/(ASCE)CO.1943-7862.0000854.
Baker, M. 1999. Asset preservation plan for the district of Columbia national highway system. Washington, DC: Federal Highway Administration.
Berkland, T., and L. C. Bell. 2007. Performance based contracting and improving the current contracting process. Clemson, SC: Clemson Univ.
Chan, A. P. C., A. A. Javed, S. Lyu, C. K. H. Hon, and F. K. W. Wong. 2016. “Strategies for improving safety and health of ethnic minority construction workers.” J. Constr. Eng. Manage. 142 (9): 05016007. https://doi.org/10.1061/(ASCE)CO.1943-7862.0001148.
Delbecq, A. L., A. H. D. Ven, and D. H. Gustafson. 1975. Group techniques for program planning: A guide to nominal group and Delphi processes. Glenview, IL: Scott, Foresman and Co.
Ellevset, O. 2001. “Output and performance—Based road contracts.” In Sub-Saharan Africa Transport Policy Program. Washington, DC: World Bank.
FDOT (Florida DOT). 2007. Asset maintenance contracts. Tallahassee, FL: FDOT.
Fleiss, J. L. 1975. “Measuring agreement between judges on the presence or absence of a trait.” Biometrics 31 (3): 651–959.
Garza, J. M., J. C. Pinero, and M. E. Ozbek. 2009. “A framework for monitoring performance-based road maintenance contracts.” Accessed August 22, 2020. http://ascpro0.ascweb.org/archives/cd/2009/paper/CPRT115002009.pdf.
Gharaibeh, H. M. 2014. “Cost control in mega projects using the Delphi method.” J. Manage. Eng. 30 (5): 04014024. https://doi.org/10.1061/(ASCE)ME.1943-5479.0000218.
Gharaibeh, N. G., D. Shelton, J. Ahmed, A. Chowdhyry, and P. E. Krugler. 2011. Development of performance-based evaluation methods and specifications for roadside maintenance. College Station, TX: Texas Transportation Institute, The Texas A&M Univ. System College Station.
Gransberg, D., and D. M. B. James. 2005. Chip seal best practices. Washington, DC: Transportation Research Board.
Gransberg, D. D., E. Scheepbouwer, and S. L. Tighe. 2010. Performance-specified maintenance contracting: The New Zealand approach to pavement preservation. Washington, DC: National Academy of Sciences.
Halcrow. 2011. Cost and benefit study associated with out-sourcing roadway maintenance activities. Carson City, NV: Nevada DOT.
Hallowell, M. R., and J. A. Gambatese. 2010. “Qualitative research: Application of the Delphi method to CEM research.” J. Constr. Eng. Manage. 136 (1): 99–107. https://doi.org/10.1061/(ASCE)CO.1943-7862.0000137.
Hartwig, T., Y. Mumssen, and A. Schliessler. 2005. Output-based aid in Chad: Using performance based contracts to improve roads. Washington, DC: World Bank.
Kyriakides, L., B. P. M. Creemers, C. Teddlie, and D. Muijs. 2010. “The international system for teacher observation and feedback: A theoretical framework for developing international instruments.” In International encyclopedia of education, 3rd ed., 726–734. Amsterdam, Netherlands: Elsevier. https://doi.org/10.1016/B978-0-08-044894-7.01636-5.
Liautaud, G. 2001. Maintaining roads: Experience with out- put-based contracts in Argentina Chapter 4, contracting for public services, output-based aid and its applications. Washington, DC: World Bank.
Linstone, H. A., and M. Turoff. 2002. “The Delphi method: Techniques and applications.” Accessed October 13, 2021. https://web.njit.edu/~turoff/pubs/delphibook/delphibook.pdf.
Ludlow, J. 2002. “Delphi inquiries and knowledge utilization.” Accessed October 13, 2021. https://web.njit.edu/~turoff/pubs/delphibook/ch3b2.pdf.
McCullouch, B. G., K. C. Sinha, and P. C. Anastosopoulos. 2009. Performance-based contracting for roadway maintenance operations in Indiana. West Lafayette, IN: Joint Transportation Research Program, Indiana DOT and Purdue Univ.
Menches, C. L., N. Khwaja, and J. Chen. 2010. Synthesis of innovative contracting strategies used for routine and preventive maintenance contracts. Austin, TX: Center for Transportation Research, Univ. of Texas at Austin.
Migliaccio, G. C. 2007. “Planning for strategic change in the project delivery strategy.” Ph.D. thesis, Dept. of Civil, Architectural and Environmental Engineering, Univ. of Texas at Austin.
Montgomery, A. A., A. Graham, P. H. Evans, and T. Fahey. 2002. “Inter-rater agreement in the scoring of abstracts submitted to a primary care research conference.” BMC Health Serv. Res. 2 (1): 8.
NCHRP (National Cooperative Highway Research Program). 2003. “State DOT outsourcing and private-sector utilization. A synthesis of highway practices, synthesis 313.” Accessed August 22, 2020. http://onlinepubs.trb.org/onlinepubs/nchrp/nchrp_syn_313.pdf.
NCHRP (National Cooperative Highway Research Program). 2009. “Performance-based contracting for maintenance. Synthesis 389.” Accessed August 22, 2020. https://www.nap.edu/read/14266/chapter/1.
NDOT (Nevada DOT). 2019. State of Nevada Department of Transportation 2019 facts and figures. Carson City, NV: NDOT.
Ozbek, M. E. 2004. “Development of performance warranties for performance based road maintenance contracts.” M.S. thesis, Dept. of Civil Engineering, Virginia Polytechnic Institute and State Univ.
Pakkala P. 2005. “Performance-based contracts: International experiences.” In Proc., Finnish Road Administration. Presentation at the TRB Workshop on “Performance-Based Contracting.” Washington, DC: Transportation Research Board.
Pierce, L. M., and N. Kebede. 2015. Chip seal performance measures: Best practices. Olympia, WC: Washington State DOT.
Pinero, J. C. 2003. “A framework for monitoring performance-based road maintenance contracts.” Ph.D. thesis, Dept. of Civil and Environmental Engineering, Virginia Polytechnic Institute.
Popescu, L., and C. L. Monismith. 2006. Performance-based pay factors for asphalt concrete construction: Comparison with a currently used experience-based approach. Sacramento, CA: California DOT.
Raynault, E., D. R. Mark, L. Mesfin, R. Simon, and A. S. Edward. 2005. Performance-based rehabilitation and maintenance for the district of Columbia’s national highway system. Washington, DC: National Academy of Sciences.
Ribreau, N. 2003. Synopsis of WSDOT’s review of highway maintenance outsourcing experience. Olympia, WA: Washington State DOT, Maintenance and Operations.
SAIC (Science Applications International Corporation). 2006. Performance contracting framework fostered by highways for LIFE, Virginia. Reston, VA: SAIC.
Schexnayder, C., and L. G. Ohrn. 1997. “Highway specifications—Quality versus pay.” J. Constr. Eng. Manage. 123 (4): 437–443. https://doi.org/10.1061/(ASCE)0733-9364(1997)123:4(437).
Shrestha, K. 2016. “Framework of performance-based contracting for chip seal and striping maintenance activities.” Ph.D. dissertation, Dept. of Civil and Environmental Engineering and Construction, Univ. of Nevada.
Shrestha, K., and M. Powers. 2018. “Performance-based contracting for maintaining rest area stops.” In Proc., 54th ASC Annual Int. Conf., Associated Schools of Construction. Cheyenne, WY: Associated Schools of Construction.
Shrestha, K., and P. P. Shrestha. 2014. “An evaluation of current practices of road maintenance contracting methods.” In Proc., Construction Research Congress. Reston, VA: ASCE.
Shrestha, K., and P. P. Shrestha. 2020. “Framework development of performance-based striping maintenance contracts.” J. Leg. Aff. Dispute Resolut. Eng. Constr. 12 (2): 04520014. https://doi.org/10.1061/(ASCE)LA.1943-4170.0000385.
Shrestha, K. K., and P. P. Shrestha. 2019. “Change orders on road maintenance contracts: Causes and preventative measures.” J. Leg. Aff. Dispute Resolut. Eng. Constr. 11 (3): 04519009. https://doi.org/10.1061/(ASCE)LA.1943-4170.0000299.
Shrestha, P. P., and J. R. Batista. 2021. “Transition from traditional to alternative project delivery methods in water and wastewater project: Executive decision-makers’ perspective.” Eng. Constr. Archit. Manage. https://doi.org/10.1108/ECAM-10-2020-0791.
Shrestha, P. P., K. Shrestha, and M. Lidder. 2017a. “Factors affecting the selection of in-house and outsourcing road maintenance methods and assessment of their benefits.” J. Infrastruct. Syst. 23 (1): 06016001. https://doi.org/10.1061/(ASCE)IS.1943-555X.0000315.
Shrestha, P. P., K. Shrestha, and M. Lidder. 2017b. “Quality of road maintenance work performed by state force versus private contractors in Nevada.” Pract. Period. Struct. Des. Constr. 22 (4): 04017012. https://doi.org/10.1061/(ASCE)SC.1943-5576.0000326.
Shuler, S., A. Lord, A. Epps-Martin, and D. Hoyt. 2011. Manual for emulsion-based chip seals for pavement preservation. Washington, DC: Transportation Research Board.
Stankevich, N., N. Qureshi, and C. Queiroz. 2009. “Performance-based contracting for preservation and improvement of road assets.” Accessed August 22, 2020. http://documents.worldbank.org/curated/en/539351468156262796/pdf/339470ENGLISH01041B0trn12701PUBLIC1.pdf.
Testa, D. M., and M. Hossain. 2014. Kansas Department of Transportation 2014 chip seal manual. Topeka, KS: Kansas DOT.
USDOT. 2016. “Public road mileage, lane miles, and VMT, 1980–2014. Accessed October 11, 2021. https://www.fhwa.dot.gov/policyinformation/statistics/2014/vmt422c.cfm.
Vaiana, R., and F. G. Pratico. 2014. “Pavement surface properties and their impact on performance-related pay adjustments.” In Proc., 3rd Int. Conf. on Transportation Infrastructure, 22–25. Pisa, Italy: Sustainability, Eco-efficiency, and Conservation in Transportation Infrastructure Asset Management.
Wang, Z., H. Zhou, V. Mandapaka, and L. Nguyen. 2021. “Pavement maintenance and rehabilitation practices in California: A study of 35-year as-built data in PaveM.” Int. J. Transp. Sci. Technol. https://doi.org/10.1016/j.ijtst.2021.04.005.
Williams, D. L., R. Boone, and K. V. Kingsley. 2004. “Teacher beliefs about educational software: A Delphi technique.” J. Res. Technol. Educ. 36 (3): 213–229.
World Bank. 2002. Sample bidding document: Procurement of performance-based management and maintenance of roads. Washington, DC: World Bank.
Yeung, J. F., A. P. Chan, and D. W. Chan. 2009. “Developing a performance index for relationship-based construction projects in Australia: Delphi study.” J. Manage. Eng. 25 (2): 59–68. https://doi.org/10.1061/(ASCE)0742-597X(2009)25:2(59).
Zaiontz, C. 2015. “Real statistics using excel: Intraclass correlation continued.” Accessed August 22, 2020. https://www.medcalc.org/manual/intraclasscorrelation.php.
Zietlow, G. 2004. Implementing performance-based road management and maintenance contracts in developing countries: An instrument of German technical cooperation. Frankfurt, Germany: German Development Cooperation.
Zietsman, J. 2004. Performance measures for performance based maintenance contracts. College Station, TX: Texas Transportation Institute.
Information & Authors
Information
Published In
Journal of Construction Engineering and Management
Volume 148 • Issue 1 • January 2022
Copyright
© 2021 American Society of Civil Engineers.
History
Received: Aug 27, 2020
Accepted: Sep 8, 2021
Published online: Oct 29, 2021
Published in print: Jan 1, 2022
Discussion open until: Mar 29, 2022
Authors
Metrics & Citations
Metrics
Citations
Download citation
If you have the appropriate software installed, you can download article citation data to the citation manager of your choice. Simply select your manager software from the list below and click Download.
Cited by
- Harrison E. Mutikanga, Muzafalu Kayondo, Mark G. Alexander, Yunus Ballim, Forensic Investigations of Concrete Degradation: Case Study of a Hydropower Project, Journal of Performance of Constructed Facilities, 10.1061/JPCFEV.CFENG-4566, 38, 1, (2024).
- Kishor Shrestha, Pramen P. Shrestha, Mohamed Lohoud, Critical Factors Affecting the Bid Cost of Building Construction Projects, Journal of Legal Affairs and Dispute Resolution in Engineering and Construction, 10.1061/JLADAH.LADR-960, 15, 3, (2023).
- Kishor Shrestha, Pramen P. Shrestha, Krishna Neupane, Identification of Geotechnical-Related Factors Impacting Cost, Schedule, and Claims on Roadway Construction Projects, Journal of Legal Affairs and Dispute Resolution in Engineering and Construction, 10.1061/JLADAH.LADR-1022, 15, 4, (2023).
- Shumank Deep, Thayaparan Gajendran, Marcus Jefferies, Kumar Neeraj Jha, Developing Subcontractor–General Contractor Relationships in the Construction Industry: Constructs and Scales for Analytical Decision Making, Journal of Construction Engineering and Management, 10.1061/JCEMD4.COENG-13630, 149, 12, (2023).
- Kishor Shrestha, Cost Comparison of Highway Rest Area Operations: In-House Workforce versus Outsourcing Methods, Journal of Construction Engineering and Management, 10.1061/JCEMD4.COENG-13214, 149, 8, (2023).
- Medya Fathi, Pramen P. Shrestha, Public–Private Partnership Contract Framework Development for Highway Projects: A Delphi Approach, Journal of Legal Affairs and Dispute Resolution in Engineering and Construction, 10.1061/(ASCE)LA.1943-4170.0000575, 15, 1, (2023).