Areawide Performance-Based Rehabilitation and Maintenance Contracts for Low-Volume Roads

To address internal inefficiency and accountability issues, a number of Latin American countries have moved decisively and successfully over the last decade from force-account (direct labor) to contract maintenance. Also, there has been considerable progress in the region in transferring to the private sector, through concessions, the responsibility for improving, maintaining, and operating high-traffic-volume roads, the cost of which is recovered from tolls. Argentina, Brazil, and Chile are among the most advanced countries in this respect. More recently, some countries—particularly Argentina—have switched from the traditional quantities and unit price–based short-term maintenance contracts to long-term performance-type or results-based contracts. The new approach encompasses either routine maintenance activities alone or integrated contracts involving both the rehabilitation and routine maintenance of road networks. The latter form, the so-called CREMA system (Contrato de Recu-peración y Mantenimiento), is now being implemented in Argentina and covers approximately 12 000 km (i.e., about 40 percent of the national paved road network). Such contracts comprise the rehabilitation and subsequent maintenance over a 5-year period of 200-km- to 300-km-long subnetworks. A framework for extending the CREMA concept to low-volume roads is presented. The means by which this newly developed system could be extended to cover both the paving and future maintenance of low-volume roads is explained. Reasons are analyzed as to why this type of contract, which extends the contractor’s share of responsibility over a relatively long period of time, would be well suited to the specific design and construction features of low-cost, low-volume paved roads—in particular, in the risks related to uncertain traffic projections and in the use of local or nontraditional materials in thin pavement structures. Finally, issues related to the use of the CREMA system—especially the need to prepare adequate contract bidding documents, conduct proper bid proposal evaluations, and monitor contractor’s performance during the rehabilitation/paving and maintenance phases—are explored.