Performance Based Contract Application Opportunity and Challenges in Indonesian National Roads Management

摘要

In the framework of the Indonesian national roads' service quality improvement, Performance Based Contract (PBC), with a Design (D) - Build (B) - Operate (O) - Maintenance (M) project delivery system, deserves to be seriously considered. This paper analyzes the opportunity and challenges of PBC implementation that suits the Indonesian national road management system. It is revealed that the benefits of PBC will be gained if contractors are allowed to develop their creativity and innovation during design and construction, improve their productivity and efficiency during operation, and identify accurately the risks transferred to them by service users. It is also described that national roads have to be operated as planned according to the design Annual Average Daily Traffic (AADT) and control on overloading should be exercised during the roads' design life in order to benefit from PBC. As long as these requirements are fulfilled, simulations on unpaved national roads have shown promising results, which include lower investment compared to DBB project delivery system, better guarantee of road condition during design life, and only a slightly higher monthly performance cost compared to the usual maintenance cost.