the perfect performance based contract

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The Perfect Performance based Contract - how should it be? By Lillian Uthus

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Page 1: The Perfect Performance based Contract

The Perfect Performance based Contract- how should it be?

ByLillian Uthus

Page 2: The Perfect Performance based Contract

2LUt 14.02.08

Outline

IntroductionPerformance based contracts today– NPRA strategy– Low-/high-volume roads– Service life

The ”perfect” performance based contract– Risk – Predictability– Bonus systems

The ”perfect” performance based contract – How should it be?

Page 3: The Perfect Performance based Contract

3LUt 14.02.08www.dagbladet.no

Page 4: The Perfect Performance based Contract

4LUt 14.02.08www.dagbladet.no

Page 5: The Perfect Performance based Contract

5LUt 14.02.08www.dagbladet.no

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Sustainable road maintenance?

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Performance based contracts -NPRA strategy

Use of performance based contracts will be increased up to 2012– AADT > 5000: 50 % by 2012– AADT < 5000: 10 % by 2012– The number of contracts will be increased with 10% pr year

Current experience shows that these type of contracts give increased service life

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Performance based contracts today – low volume roads

The perfomance based contracts on low volume roads are under development– The Strynefjell contract is the first contract on a low volume

roadPerformance based performance indicators– Initial rutting and IRI are the main parameters– Friction – Crossfall– Holes and damages of the pavement

The contractor decides methods Good results are rewarded the first year

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Performance based contracts today – high volume roads

Performance based indicators– Development in rutting is the main parameter, determining

the pavement service life– Initial roughness measured by IRI– Friction – Crossfall– Holes and damages of the pavement

The contractor decides both asphalt type/quality and methods The contractor needs to take most of the risk into account– Wear from studded tyres– Deformation in the asphalt pavement– Deformation in the underlying materials

• Base, subbase and subgrade

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Service life

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Rutting – the key parameter

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Causes of rutting in pavements

Wear from studded tiresDeformation– In the asphalt pavement– In a granular base, subbase or subgrade

Initial rutting influences the total service life – A high degree of compaction is important– Surface temperature is important in combination with the

cooling time available

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Causes of variation in rutting

Inhomogeneity (Contractor)– Separation in the asphalt mass– Variation in void content (compaction, temperature etc)

Variations in lane width (Road owner)Curvature, obstacles etc (Road owner)

Page 14: The Perfect Performance based Contract

The ”perfect” perfomance based contract

RiskPredictability

Bonus systems

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Risk

Risk costs! Today most of the risk is placed on the contractorHow can the risk be reduced?– Distribution of risk between NPRA and contractor– More available information reduces the risk for the contractor– Some kind of Prequalification with trial sections may reduce

the risk for both the contractor and NPRA– Good correlation between laboratory results and rutting in situ

reduces the risk for the contractor– Collaboration in research projects and other projects to get

more knowledge about the service life of pavements

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Distribution of riskNPRA/contractor

The contractor is responsible for the parameters that thecontractor has an influence on:– Quality (resistance against rutting)– Homogeneity (the same properties in the whole section)

The contractor is responible for the development of rutting inselected sections – Suspected inhomogeneity in the pavement may be controlled

by sampling

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Distribution of risk NPRA/contractor

The road owner (NPRA) needs to be responsible for variationin rutting caused by:

– Narrowing lanes– Curvature– Rutting caused by some kind of obstacle

The road owner (NPRA) has access to historical data from national database

– This is the best basis for an evaluation of the risk connectedto these parameters

It is also possible to say something about the effect of road geometry on service life costs from these data

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Distribution of risk NPRA/contractor

Risk caused by changes in climate, traffic, studded tyres shouldbe shared between the road owner and contractorRisk caused by changes in measuring methods should beplaced on the road owner

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More available information

All possible information about the section should be available– Historical data on rutting, measured minimum two times per

year – to split rutting caused by studded tyres from rutting caused by deformation

– Historical data on pavement types, thicknesses– Current data on rut depth, IRI, friction, crossfall– Measurements of variation in bearing capacity over the year– Data on AADT, traffic growth, the number of heavy vehcles,

amount of vehicles with studded tyres, the use of salt, climatic data etc.

The data should be available for a longer period of time than today for the contractors to really process the data

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Pre qualification?

One option is to have some kind of pre-qualification– All interested contractors should make their asphalt solution in

trial sections– The two best alternatives are pre-qualified, and the best price

combined with the best service life based on the results fromthe trial sections should do the job

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Correlation between laboratory results and in situ conditions

Properties measured in situ– Rut depth– Roughness– Bearing capacity– Friction– Etc.

Properties measured in the laboratory– Bitumen (PG-class, viscosity, elastisity etc)– Aggregates (Ball Mill, Los Angeles etc)– Asphalt mass (Wheel Track, Cyclic creep etc)

With good correlations between laboratory results and in situ rutting it is easier to predict the development of rutting

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The SIV-projectTrial section E18 Vestfold

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Rut depth measured by ALFRED, E18 Vestfold

0,0

2,0

4,0

6,0

8,0

10,0

12,0

14,0

16,0

Spo

rdyb

der(m

m)

2001 2,4 1,6 2,4 2,6 3,4 2,6 5,22002 4,2 4,2 4,4 4,2 6,2 6,4 6,62003 5,0 7,2 5,8 5,6 7,2 7,8 7,82004 5,8 10,2 7,4 5,6 8,4 7,6 9,62005 6,3 13,1 8,4 7,5 8,8 7,9 11,62006 7,5 14,1 9,1 7,6 9,1 8,5 12,72007

Ab 16 PmB 60 Lierskogen

Ab 16 PmB 60 Hedrum

Ab 16 PmB 60 Hanekleiva

Ab 16 PmB 60 Hadeland

Ska 16 B70/100

Lierskogen

Ska 16 B70/100 Hadeland

Ab 16 B70/100

Lierskogen

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Sammenheng sporutvikling (mm/år) og mølleverdi

0

0,5

1

1,5

2

2,5

3

0 2 4 6 8 10 12 14 16 18

Mølleverdi

Spor

utvi

klin

g (m

m/å

r)

Ska 16

Ab 16 PmB

Ab 16 B70/100

Aggregate quality vs rutting

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Sporutvikling (mm/år) mot Wheel Tracking rate

Ab 16 B 70/100

0

0,5

1

1,5

2

2,5

3

0,00 0,05 0,10 0,15 0,20 0,25 0,30 0,35 0,40 0,45

Tracking rate

Spo

rutv

iklin

g (m

m/å

r)

Ska 16

Ab 16 PmB

Wheel-track vs rutting

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Predictability

In order to meet the technical challenges the performance based contracts give, the contractors needs to invest in– Highly competent personell– Advanced equipment– Research and development of new technology

• Methods, materials

There is a need for a high level of predictability for the contractors to make these investments

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Bonus-system

Today, on high-volume roads the contractor is rewarded after a warranty period The Strynefjell-contract has a different bonus-system, where the initial rutting and IRI is rewardedA bonus-system with both an initial bonus, and a bonus after a warranty period may be a solution

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The ”perfect” performance based contract – how should it be?

Risk costs, this means that minimized risk is a win-win situation All data about the current pavement and the pavement history should be available to the contractorThe road owner shoud take the risk of deformation in the base, subbase and subgrade– If the contractor should be resonsible for the whole road

structure, measurements of bearing capacity should be availbleOne possibility is to have some kind of pre-qualification to get this kind of job – reduced risk for both the road owner and contractor One should find good correlation between laboratory resultsand real rutting in situ– Collaboration between the road owner and the contractor?

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The ”perfect” performance based contract – how should it be?

The ”perfect” contract has high level of predictabilityA bonus system with both an initial bonus and a bonus after a warranty period is favorablePerformance based contracts gives incentives for development of new and better asphalt masses and methodsPerformance based contracts should be a win-win situation for both the road owner and the contractor– A long service life should be rewarded