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Contracting for Road Maintenance in the Netherlands—The Downside of Performance-Based Contracting

Department of Marketing & Supply Chain Management, Open University of the Netherlands, 6419 AT Heerlen, The Netherlands
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Infrastructures 2019, 4(3), 41; https://doi.org/10.3390/infrastructures4030041
Received: 19 June 2019 / Revised: 8 July 2019 / Accepted: 8 July 2019 / Published: 10 July 2019
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Abstract

A trend towards performance-based contracting (PBC) can be observed in public infrastructure maintenance. PBC is an approach of tying the contractor’s payment to specified performance. We investigated PBC for the maintenance of highways and roads in the Netherlands, identifying issues ultimately resulting in poor contractor performance. The PBC-induced risks for clients relate to the problematic translation and measurement of specifications, the ineffectiveness of incentives, the avoidance of contractors taking full responsibility, and contract management issues. Clients should recognize the actual balance of power in the relationship with their (main) contractors, and take appropriate measures. View Full-Text
Keywords: performance-based contracting; PBC induced risks; road maintenance performance-based contracting; PBC induced risks; road maintenance
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This is an open access article distributed under the Creative Commons Attribution License which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited (CC BY 4.0).
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Gelderman, C.J.; Semeijn, J.; De Vries, S. Contracting for Road Maintenance in the Netherlands—The Downside of Performance-Based Contracting. Infrastructures 2019, 4, 41.

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