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This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License
Sameh Zaghloul
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DOI:10.17265/1934-7359/2023.09.004
International Transportation Asset Management Specialists (ITAMSs), Cairo, Egypt
PBMC (performance-based maintenance contracts) provides incentives and/or disincentives to the contractor to achieve desired outcomes or results. In other words, the concept of PBMC is to pay a contractor based on the actual results (performance or LOS (level of service)), not on the performed work. PBMC does not detail to the contractor how, when, or where to do the work. Instead, it specifies performance standards or targets for measurable outcomes and sometimes outputs. There are several benefits from implementing PBMC. Higher LOS, i.e., better quality, potential reduction in agency costs and downsized maintenance workforce are among these benefits. Also, there are several challenges facing the implementation of PBMC. One of the most complex challenges that relates to both the agency and contractor, and in some cases to the public, is how to manage LOS in an objective manner and to demonstrate that policy goals and objectives regarding quality of life expectancy are achieved without any increase in the LCC (life cycle cost) of the assets. This challenge, along with many other challenges, can be addressed through the adoption of an AM (asset management) approach. AM approach facilitates the long-term planning based on the current and future conditions and desired LOS. In addition, AM provides the necessary tools to objectively monitor LOS, and hence the contractor performance, which will contribute to the success of the implementation of PBMC.
Transportation project, maintenance, PBMC.
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