NEW ROAD MAINTENANCE MODEL IN FINLAND – 2014 PILOT PROJECT

Pekka Pakkala, Katja Levola

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Last modified: 2017-02-28

Abstract


Finland is testing a new model for Performance Based Maintenance Contracting (PBMC) for roads in 2014. In Finland, PBMC have been used for about thirteen years and the market is very competitive, driven by lower costs, and quality needs improvement. Continued pressure towards efficiency and reduced costs are approaching the limits and a new model is needed to increase the quality and provide incentives for contractors. An internal road agency steering group was assigned the task to develop a new model for maintenance that would be appropriate for Finland. The “alliance model” has been tested in some countries, but there are limited results and the alliance model may not be appropriate for Finland. This new model is titled “Program Managed Performance-Based Maintenance Contracts” and has similarities to the alliance model, but is much simpler. Since the model is presently under development, the objective of the paper is to discuss the development, procurement, and preliminary findings.
The tendering of this model is in early 2014 and details are not known at the time of the writing this abstract, but preliminary finding will be available for the conference. The new model introduces possibilities for improved quality, services, and provides a better opportunity for risk sharing.

Keywords


Performance Based Maintenance Contracts (PBMC), outsourcing, maintenance and contracting

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