Abstract
The use of long term warranty or performance based contracts (PBC's) for periods of 10 years or more has proven to be an effective means for sustained preservation of pavement networks. A transfer of risk to the contractor is involved, but there is also increased potential for innovation. There are several keys to maximizing benefits to both the agency and the contractor in long term PBC's and they range from commitment by both parties to objectively based, measurable performance criteria or warranties to harmonized measurement methods. As well, it is important that the agency has established realistic policy objectives which can be linked to performance indicators and in turn to implementation targets/warranties. A real world network example from the June 2008 International Conference on Managing Pavement Assets in Calgary provides a comprehensive set of policy objectives - performance indicators - implementation targets and demonstrates that they can in fact be achieved. Another example from a 10 year PBC shows that the original pre-contract targets for network roughness, rutting, cracking and structural adequacy were realistic in that they were met or exceeded at the end of the contract period. These examples, and other evidence, clearly demonstrate that long term performance based contracts for pavement networks can provide significant benefits to all stakeholders and that well founded realistic warranties/implementation targets are key to success.