Performance Based Contracts in the Road Sector : Towards Improved Efficiency in the Management of Maintenance and Rehabilitation - Brazil's Experience

This note aims at providing feedback on Brazil's successful experience in using performance based contracts in the rehabilitation and maintenance of the road networks. Since its introduction in the early 2000's, the use of this contract m...

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Bibliographic Details
Main Author: Lancelot, Eric
Format: Working Paper
Language:English
en_US
Published: World Bank, Washington, DC 2014
Subjects:
BID
TAX
Online Access:http://documents.worldbank.org/curated/en/2010/03/12840754/performance-based-contracts-road-sector-towards-improved-efficiency-management-maintenance-rehabilitation-brazils-experience
http://hdl.handle.net/10986/17452
id okr-10986-17452
recordtype oai_dc
repository_type Digital Repository
institution_category Foreign Institution
institution Digital Repositories
building World Bank Open Knowledge Repository
collection World Bank
language English
en_US
topic ACCESS TO INFORMATION
ACCOUNTING
ASSET MANAGEMENT
BANKRUPTCY
BID
BIDS
BOTTLENECKS
BOUNDARIES
BRIDGE
BUDGET CONSTRAINTS
BULLET
CAPACITY BUILDING
CHECKS
CIVIL SOCIETY
CONFLICTS
CONTRACT MANAGEMENT
CONTRACT MONITORING
CONTRACT PRICE
CONTRACT VALUE
CONTRACT VALUES
CONTRACTOR
CONTRACTORS
COST OF TRANSPORT
CREDIBILITY
DEBT
DEBT RESTRUCTURING
DECENTRALIZATION
DRAINAGE
ECONOMIC GROWTH
ECONOMIES OF SCALE
EQUIPMENT
EXISTING CONTRACTS
EXPENDITURES
FEDERAL CONTRACTS
FINANCIAL PENALTIES
FISCAL POLICY
GLOBALIZATION
HEAVY VEHICLES
HIGHWAY
HUMAN RESOURCES
IMPACTS ON TRAFFIC SAFETY
INFORMATION SYSTEM
INFORMATION SYSTEMS
INSTALLMENT
INSTRUMENT
INTEREST RATES
INTERNATIONAL BANK
INTERNATIONAL EXPERIENCE
INTERURBAN ROAD
INVESTMENT CONTRACTS
LAND TRANSPORT
LICENSES
LOAN
MATURITY
MINISTRY OF TRANSPORT
MODALITIES
MODALITY
MONTHLY INSTALLMENT
MONTHLY INSTALLMENTS
MONTHLY PAYMENT
MOTIVATION
NATIONAL TRANSPORT
NEGOTIATION
NEW CONTRACT
NEW CONTRACTS
ORIGINAL CONTRACT
OUTPUTS
PASSENGERS
PAVEMENT REHABILITATION
PAYMENT OBLIGATIONS
PORTFOLIO
PROCUREMENT
PROCUREMENT PROCESSES
PROJECT MANAGEMENT
PROJECT REVISION
PROVISIONS
PUBLIC INVESTMENT
PUBLIC INVESTMENTS
PUBLIC PARTNERSHIPS
PUBLIC PROCUREMENT
PUBLIC WORKS
QUALITY ASSURANCE
RECONSTRUCTION
REMEDIES
REMUNERATION
RETURN
RIGHT-OF-WAY
ROAD
ROAD CONDITIONS
ROAD INFRASTRUCTURE
ROAD INVESTMENT
ROAD MAINTENANCE
ROAD MANAGEMENT
ROAD NETWORK
ROAD SECTOR
ROAD SYSTEM
ROAD TRANSPORT
ROAD USERS
ROADS
SAFETY ISSUES
SERVANTS
SPECIFIC PERFORMANCE
SUB-CONTRACTORS
SUFFICIENT FLEXIBILITY
TAX
TIMELY PAYMENTS
TRAFFIC
TRAFFIC SAFETY
TRAFFIC VOLUMES
TRANSPARENCY
TRANSPORT
TRANSPORT INFRASTRUCTURE
TRANSPORT INVESTMENT
TRANSPORT INVESTMENTS
TRANSPORT MODE
TRANSPORT PLANNING
TRANSPORT REGULATION
TRANSPORT SECTOR
TRANSPORTATION
TRANSPORTATION ENGINEER
TRUE
TYPE OF CONTRACTS
UNDER CONTRACTS
UNEXPECTED EVENT
VEHICLE
VEHICLE OPERATION
YEAR CONTRACT
spellingShingle ACCESS TO INFORMATION
ACCOUNTING
ASSET MANAGEMENT
BANKRUPTCY
BID
BIDS
BOTTLENECKS
BOUNDARIES
BRIDGE
BUDGET CONSTRAINTS
BULLET
CAPACITY BUILDING
CHECKS
CIVIL SOCIETY
CONFLICTS
CONTRACT MANAGEMENT
CONTRACT MONITORING
CONTRACT PRICE
CONTRACT VALUE
CONTRACT VALUES
CONTRACTOR
CONTRACTORS
COST OF TRANSPORT
CREDIBILITY
DEBT
DEBT RESTRUCTURING
DECENTRALIZATION
DRAINAGE
ECONOMIC GROWTH
ECONOMIES OF SCALE
EQUIPMENT
EXISTING CONTRACTS
EXPENDITURES
FEDERAL CONTRACTS
FINANCIAL PENALTIES
FISCAL POLICY
GLOBALIZATION
HEAVY VEHICLES
HIGHWAY
HUMAN RESOURCES
IMPACTS ON TRAFFIC SAFETY
INFORMATION SYSTEM
INFORMATION SYSTEMS
INSTALLMENT
INSTRUMENT
INTEREST RATES
INTERNATIONAL BANK
INTERNATIONAL EXPERIENCE
INTERURBAN ROAD
INVESTMENT CONTRACTS
LAND TRANSPORT
LICENSES
LOAN
MATURITY
MINISTRY OF TRANSPORT
MODALITIES
MODALITY
MONTHLY INSTALLMENT
MONTHLY INSTALLMENTS
MONTHLY PAYMENT
MOTIVATION
NATIONAL TRANSPORT
NEGOTIATION
NEW CONTRACT
NEW CONTRACTS
ORIGINAL CONTRACT
OUTPUTS
PASSENGERS
PAVEMENT REHABILITATION
PAYMENT OBLIGATIONS
PORTFOLIO
PROCUREMENT
PROCUREMENT PROCESSES
PROJECT MANAGEMENT
PROJECT REVISION
PROVISIONS
PUBLIC INVESTMENT
PUBLIC INVESTMENTS
PUBLIC PARTNERSHIPS
PUBLIC PROCUREMENT
PUBLIC WORKS
QUALITY ASSURANCE
RECONSTRUCTION
REMEDIES
REMUNERATION
RETURN
RIGHT-OF-WAY
ROAD
ROAD CONDITIONS
ROAD INFRASTRUCTURE
ROAD INVESTMENT
ROAD MAINTENANCE
ROAD MANAGEMENT
ROAD NETWORK
ROAD SECTOR
ROAD SYSTEM
ROAD TRANSPORT
ROAD USERS
ROADS
SAFETY ISSUES
SERVANTS
SPECIFIC PERFORMANCE
SUB-CONTRACTORS
SUFFICIENT FLEXIBILITY
TAX
TIMELY PAYMENTS
TRAFFIC
TRAFFIC SAFETY
TRAFFIC VOLUMES
TRANSPARENCY
TRANSPORT
TRANSPORT INFRASTRUCTURE
TRANSPORT INVESTMENT
TRANSPORT INVESTMENTS
TRANSPORT MODE
TRANSPORT PLANNING
TRANSPORT REGULATION
TRANSPORT SECTOR
TRANSPORTATION
TRANSPORTATION ENGINEER
TRUE
TYPE OF CONTRACTS
UNDER CONTRACTS
UNEXPECTED EVENT
VEHICLE
VEHICLE OPERATION
YEAR CONTRACT
Lancelot, Eric
Performance Based Contracts in the Road Sector : Towards Improved Efficiency in the Management of Maintenance and Rehabilitation - Brazil's Experience
geographic_facet Latin America & Caribbean
Brazil
relation Transport paper series;no. TP-31
description This note aims at providing feedback on Brazil's successful experience in using performance based contracts in the rehabilitation and maintenance of the road networks. Since its introduction in the early 2000's, the use of this contract management model has progressively spread to reach, as of today, one third of the federal network and more than 10 percent of the states' networks, and expectations are for higher figures in the short run. The note highlights the context which led to the introduction of these contracts in the road sector and the strategic orientations adopted in their structuring. The model was notably expected to bring rationalization, accountability and credibility to the sector at a moment when road maintenance, though a crucial issue when considering the networks' characteristics and conditions, was not given sufficient consideration by the road administrations. The note then provides an evaluation of the positive achievements resulting from these contracts. The evaluation, comparing objectively performance based contracts to the traditional input-admeasurements approach, shows that these contracts brought an overall improved efficiency to the sector which translated to better road conditions at lower costs for the governments and reduced management burdens on the administrations. Finally, the note provides insights, gained from ten years of continuous learning, on the main lessons learnt, and perspectives on desirable evolutions in the future, while a balanced share of responsibilities and initiatives between the public and the private sectors is essential, strengthened administrations, fully accountable for preserving public interests, remain key to success; better articulating contract duration and rehabilitation works service life, which would lead to extended contract duration, is also one of the possible orientations for future performance-based contracts in Brazil.
format Publications & Research :: Working Paper
author Lancelot, Eric
author_facet Lancelot, Eric
author_sort Lancelot, Eric
title Performance Based Contracts in the Road Sector : Towards Improved Efficiency in the Management of Maintenance and Rehabilitation - Brazil's Experience
title_short Performance Based Contracts in the Road Sector : Towards Improved Efficiency in the Management of Maintenance and Rehabilitation - Brazil's Experience
title_full Performance Based Contracts in the Road Sector : Towards Improved Efficiency in the Management of Maintenance and Rehabilitation - Brazil's Experience
title_fullStr Performance Based Contracts in the Road Sector : Towards Improved Efficiency in the Management of Maintenance and Rehabilitation - Brazil's Experience
title_full_unstemmed Performance Based Contracts in the Road Sector : Towards Improved Efficiency in the Management of Maintenance and Rehabilitation - Brazil's Experience
title_sort performance based contracts in the road sector : towards improved efficiency in the management of maintenance and rehabilitation - brazil's experience
publisher World Bank, Washington, DC
publishDate 2014
url http://documents.worldbank.org/curated/en/2010/03/12840754/performance-based-contracts-road-sector-towards-improved-efficiency-management-maintenance-rehabilitation-brazils-experience
http://hdl.handle.net/10986/17452
_version_ 1764436325735333888
spelling okr-10986-174522021-04-23T14:03:36Z Performance Based Contracts in the Road Sector : Towards Improved Efficiency in the Management of Maintenance and Rehabilitation - Brazil's Experience Lancelot, Eric ACCESS TO INFORMATION ACCOUNTING ASSET MANAGEMENT BANKRUPTCY BID BIDS BOTTLENECKS BOUNDARIES BRIDGE BUDGET CONSTRAINTS BULLET CAPACITY BUILDING CHECKS CIVIL SOCIETY CONFLICTS CONTRACT MANAGEMENT CONTRACT MONITORING CONTRACT PRICE CONTRACT VALUE CONTRACT VALUES CONTRACTOR CONTRACTORS COST OF TRANSPORT CREDIBILITY DEBT DEBT RESTRUCTURING DECENTRALIZATION DRAINAGE ECONOMIC GROWTH ECONOMIES OF SCALE EQUIPMENT EXISTING CONTRACTS EXPENDITURES FEDERAL CONTRACTS FINANCIAL PENALTIES FISCAL POLICY GLOBALIZATION HEAVY VEHICLES HIGHWAY HUMAN RESOURCES IMPACTS ON TRAFFIC SAFETY INFORMATION SYSTEM INFORMATION SYSTEMS INSTALLMENT INSTRUMENT INTEREST RATES INTERNATIONAL BANK INTERNATIONAL EXPERIENCE INTERURBAN ROAD INVESTMENT CONTRACTS LAND TRANSPORT LICENSES LOAN MATURITY MINISTRY OF TRANSPORT MODALITIES MODALITY MONTHLY INSTALLMENT MONTHLY INSTALLMENTS MONTHLY PAYMENT MOTIVATION NATIONAL TRANSPORT NEGOTIATION NEW CONTRACT NEW CONTRACTS ORIGINAL CONTRACT OUTPUTS PASSENGERS PAVEMENT REHABILITATION PAYMENT OBLIGATIONS PORTFOLIO PROCUREMENT PROCUREMENT PROCESSES PROJECT MANAGEMENT PROJECT REVISION PROVISIONS PUBLIC INVESTMENT PUBLIC INVESTMENTS PUBLIC PARTNERSHIPS PUBLIC PROCUREMENT PUBLIC WORKS QUALITY ASSURANCE RECONSTRUCTION REMEDIES REMUNERATION RETURN RIGHT-OF-WAY ROAD ROAD CONDITIONS ROAD INFRASTRUCTURE ROAD INVESTMENT ROAD MAINTENANCE ROAD MANAGEMENT ROAD NETWORK ROAD SECTOR ROAD SYSTEM ROAD TRANSPORT ROAD USERS ROADS SAFETY ISSUES SERVANTS SPECIFIC PERFORMANCE SUB-CONTRACTORS SUFFICIENT FLEXIBILITY TAX TIMELY PAYMENTS TRAFFIC TRAFFIC SAFETY TRAFFIC VOLUMES TRANSPARENCY TRANSPORT TRANSPORT INFRASTRUCTURE TRANSPORT INVESTMENT TRANSPORT INVESTMENTS TRANSPORT MODE TRANSPORT PLANNING TRANSPORT REGULATION TRANSPORT SECTOR TRANSPORTATION TRANSPORTATION ENGINEER TRUE TYPE OF CONTRACTS UNDER CONTRACTS UNEXPECTED EVENT VEHICLE VEHICLE OPERATION YEAR CONTRACT This note aims at providing feedback on Brazil's successful experience in using performance based contracts in the rehabilitation and maintenance of the road networks. Since its introduction in the early 2000's, the use of this contract management model has progressively spread to reach, as of today, one third of the federal network and more than 10 percent of the states' networks, and expectations are for higher figures in the short run. The note highlights the context which led to the introduction of these contracts in the road sector and the strategic orientations adopted in their structuring. The model was notably expected to bring rationalization, accountability and credibility to the sector at a moment when road maintenance, though a crucial issue when considering the networks' characteristics and conditions, was not given sufficient consideration by the road administrations. The note then provides an evaluation of the positive achievements resulting from these contracts. The evaluation, comparing objectively performance based contracts to the traditional input-admeasurements approach, shows that these contracts brought an overall improved efficiency to the sector which translated to better road conditions at lower costs for the governments and reduced management burdens on the administrations. Finally, the note provides insights, gained from ten years of continuous learning, on the main lessons learnt, and perspectives on desirable evolutions in the future, while a balanced share of responsibilities and initiatives between the public and the private sectors is essential, strengthened administrations, fully accountable for preserving public interests, remain key to success; better articulating contract duration and rehabilitation works service life, which would lead to extended contract duration, is also one of the possible orientations for future performance-based contracts in Brazil. 2014-03-28T15:17:40Z 2014-03-28T15:17:40Z 2010-03 http://documents.worldbank.org/curated/en/2010/03/12840754/performance-based-contracts-road-sector-towards-improved-efficiency-management-maintenance-rehabilitation-brazils-experience http://hdl.handle.net/10986/17452 English en_US Transport paper series;no. TP-31 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank, Washington, DC Publications & Research :: Working Paper Publications & Research Latin America & Caribbean Brazil