The procurement of road infrastructure maintenance and management through Performance-Based Contracting (PBC) is becoming the outsourcing model for most transportation agencies worldwide. This trend is underscored by multilateral infrastructure funding institutions such as the World Bank and Asian Development Bank. Several studies have indicated that the institutional and user benefits gained from progression towards a PBC are significant. These include agency cost savings and improved road conditions. Developing proper performance standards or key performance indicators (KPI) and optimal thresholds is vital in a PBC framework. However, this has proven to be a challenge with this contracting method among road agencies. Therefore, the study utilized the mechanical-empirical pavement performance model to develop a framework to investigate the critical performance indicator specification of PBCs. The study used the Linkou rehabilitation project of National Freeway No.1 as a case study for the necessary model and cost analysis inputs. For the M-E analysis, the study adopted the MEPDG methodology established under the NCHRP Project 1-37A to simulate the pavement performance. The performance and cost-effectiveness (CE) of various maintenance and rehabilitation (M&R) strategies under different performance criteria (rutting, cracking, and IRI) and various thresholds were analyzed. The cost-effectiveness ratio of each scenario was calculated based on the area over the performance curve (AOC) and agency and user costs.
Keywords: Performance-Based Contract, Mechanistic-Empirical Design, NCHRP-137A, Cost-Effectiveness, Area Over the Curve

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