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Functional (Performance-based) Maintenance Contracting in Denmark PowerPoint PPT Presentation


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Functional (Performance-based) Maintenance Contracting in Denmark. By Susanne Baltzer Danish Road Directorate Denmark. Standard Danish Contracts. Road authority sets requirements for mix design, and some performance requirements 5 year warranty period for new asphalt concrete layer.

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Functional (Performance-based) Maintenance Contracting in Denmark

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Functional performance based maintenance contracting in denmark l.jpg

Functional (Performance-based) Maintenance Contracting in Denmark

By

Susanne Baltzer

Danish Road Directorate

Denmark


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Standard Danish Contracts

  • Road authority sets requirements for mix design, and some performance requirements

  • 5 year warranty period for new asphalt concrete layer


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Administrative Units 2006


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Principles in Performance Contracts

  • Road authority describes performance requirements

  • Contractor decides product and time of laying

  • Road authority buys service level – not asphalt!

  • Long contracts, typically 15 years

  • Equal yearly payment


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What does the contract cover?

Maintenance of:

  • Paved roads

  • Shoulders and open drainage systems

  • Road marking

  • Bicycle tracks and footpaths


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New procurement template

Contractor


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User

Performance requirements based on data from PM-systems

Pavement condition

VEJMAN

registre

PM Vejman.dk


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Visual survey of road condition


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Condition SurveyCondition index


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Condition Index = 1,5


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Condition Index = 5


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Condition Index = 15


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Performance Requirements


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Max. Percentage of Patching


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Also requirements to ...

Friction

Longitudinal Evenness

Rutting

Potholes

Light reflection

Road marking


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Shoulders and DrainageTraffic safety and water run-off

Max/min edge


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Penalty / Bonus system

  • Exceeding the mean condition index for one or more maintenance levels

  • => no payments that year

  • Exceeding all other requirements

  • => penalty of Euro 1,000 - 3,000, if not OK after period of reconditioning

  • Bonus ?? The contract can be prolonged e.g. by 4 years


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Payment Model


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Why is it advantageous for the municipality ?

  • Better price

  • Equal yearly payment – fixed !

  • Quick improvement of network standard

  • Maintenance level is ensured

  • Lack of ressources/expertice


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Accounting standards in municipalities

  • Roads and assets belong to road authority

  • In the accounting system, the asset of existing roads stays unchanged as long as they remain serviceable

  • Wearing courses and services included in these contracts are not considered investments, - only maintenance.


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Municipality Contracts 2006

  • 19 contracts

  • Of 30-300 km

  • total of >3000 km


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Performance based contracts generates development!

  • As contractors are not restricted to certain mix designs,

  • they use ”their network” for experiments

  • There is a an incentive for producing long-lasting pavements


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Thank you for your attention

[email protected]


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