scholarly journals Evaluation of Cost Effectiveness of Performance Based Contract for National Road Improvement and Maintenance Projects

2021 ◽  
Vol 27 (1) ◽  
pp. 69-79
Author(s):  
Andhika Ajengtyas Setorini ◽  
Jati Utomo Dwi Hatmoko ◽  
Bagus Hario Setiadji

As an effort to maintain and improve its national road condition with a strict budget, the Government of Indonesia has implemented various types of contract in road maintenance. One of the road maintenance contract, i.e. performanced based contract (PBC), allows the contractor to design, build, and maintain the road and use performance measures as payment requirement. While many researches state that the PBC implementation on road maintenance may lead to cost efficiency, in Indonesia the cost efficiency is still questionable. This research is trying to answer the question by comparing actual road maintenance cost of two roads with same characteristics, while one is PBC and the other is traditional contract. The result shows that in one case PBC is cheaper than traditional contract, while the other case shows the opposite.

2016 ◽  
Vol 845 ◽  
pp. 369-378 ◽  
Author(s):  
Andri Irfan Rifai ◽  
Sigit Pranowo Hadiwardoyo ◽  
António Gomes Correia ◽  
Paulo Pereira

National Road Network which consists of a traditional road structure and modern roads, require planned maintenance and should be in accordance with the needs. The limited choice of available national road network and the deviation of the overloading encourage the government to be more responsive to carry out maintenance management. The institution in charge of road maintenance is often constrained by the limited budget available. A two-objective optimization model considers maximum roughness and minimum maintenance cost for used road network with overload. The study was conducted on the entire national road network in West Java which are paved with flexible pavement. In the proposed approach, data mining model are used for predicting the roughness index over a given period of time. Routine and periodic maintenance are chosen in this study. Multi-objective optimization model was developed based on Genetic Algorithms. Budget constraints and overloading are the two constraints in the developed model. Based on the R-Tools result, the Pareto optimal solutions of the two objective functions are obtained. From the optimal solutions represented by roughness index and cost, an agency more easily obtain the information of the maintenance planning. Results of the developed model has been implemented through the selection of maintenance on the road network scenarios with different levels of overload.


2020 ◽  
Author(s):  
Million Demie ◽  
Emer Quezon ◽  
Alemayehu Feyissa

Roadway is one of the most crucial transportation modes to cater to inland movement within a country. The agency mandate is to design, construct, and maintain the road to sustain the traffic up to its design life without further strengthening. However, some factors are affecting the performance of the pavement. Most pavements start to show some traces of deterioration after construction and opening to traffic, but once neglected, the distress portions would be aggravated with corresponding increasing maintenance cost. Thus, the road's maintenance has to be carried out at the place, right schedule, right quality, and at the least cost. Since there are different maintenance alternatives, the best strategy has to be chosen following the road's condition and the severity of the damage. To select the best maintenance alternative, calculations on the pavement layer's property are performed. The Highway Development and Management (HDM-4) tool can do such measures to help decide which option is the best by evaluating the economic and structural conditions. This paper contains two significant areas that are studied. First, it was assessed the procedures followed by the city's road authority to develop the appropriate road maintenance strategies. Questionnaire surveys and interviews are used to collect information from the city's road maintenance departments. Second, the project analysis was performed for structural and economic comparison of different maintenance alternatives using HDM-4. In the analyses, three selected road segments are considered and collected important input data like road condition data, road network data, vehicle fleet data, estimated AADT, and International Roughness Index (IRI). There were five maintenance alternatives have been defined, and proposed maintenance alternatives are compared. The selection is based on the deteriorated pavement, which showed the average roughness for every section of the road network, considering an analysis period of 20 years and cost stream ranking for their Net Present Value and IRR. Results indicated that using a mill and replace, and routine maintenance schedule for the selected road networks is economically viable and structurally significant. Hence, the city's road authority is recommended to apply the different maintenance strategies, providing an economical and better performance for the city's road network.


2012 ◽  
Vol 12 (2) ◽  
Author(s):  
Sri Hartini ◽  
Setiajeng Kadarsih

Basically, the management of roads expected to be able to meet the needs of safe, convenient, and efficient for transportation of goods and services. But in reality, the road management policy in the regional autonomy were still did not meet expectations. Based on the research, the policy of road management in Banyumas are roads construction and road maintenance program. Road construction are conducted to increasing and widening of roads and paving, while road maintenance are done through regular maintenance and periodic maintenance. Factors that influence the policy are legal substance that have not been set as a whole regarding the management of roads, law enforcement which still have its main office in the policyled, facility factor that were not optimal, the society that tend to release responsibility to the government, and permissive factors. Key words: policy, road management and legal factors


2020 ◽  
Vol 5 (1) ◽  
pp. 11
Author(s):  
St. Fauziah Badaron ◽  
Watono Watono ◽  
Suriati Abd. Muin ◽  
M. Reza C.A ◽  
Darmawansyah Firdaus

Ruas  jalan  Hertasning  merupakan  jalur  strategis  yang  menghubungkan  kawasan industri di antara dua Kabupaten / Kota yaitu Makassar dan Gowa. Tingginya frekuensi kendaraan yang lewat di atas permukaan jalan yang ada menyebabkan turunnya tingkat pelayanan jalan. Penelitian ini bertujuan untuk mengetahui jenis kerusakan dan nilai kondisi yang terjadi dengan menggunakan metode Road Condition Index (RCI), juga untuk menentukan jenis penanganan yang tepat serta mengetahui biaya dan penanganan terhadap kerusakan jalan pada ruas Jalan Hertasning. Analisis data dilakukan perhitungan kondisi fungsional dengan 2 tahap perhitungan yaitu metode Road Condition Index (RCI) dan analisis anggaran biaya dari hasil penilaian RCI dengan metode standar Bina Marga 1995. Hasil dari penelitian ini ditemukan bahwa jenis kerusakan pada ruas Jalan Hertasning antara lain pelepasan butir, lubang , lubang bekas galian utilita, tambalan dan retak kulit buay juga mendapatkan nilai rata – rata RCI sebesar 76,92 dan juga penanganan serta biaya yang digunakan menggunakan AHSP Bina Marga 2018 membutuhkan sebesar Rp. 531.210.000,-. Dengan adanya penelitian kondisi jalan yang menggunakan metode RCI dapat memberikan gambaran atau dekripsi tentang kondisi jalan di Jalan Hertasning, yang dapat digunakan sebagai data base untuk perencanaan dan pelaksanaan rehabilitasi dan pemeliharaan jalan.The Hertasning road is a strategic route that connects the industrial estate between two Regencies / Cities, namely Makassar and Gowa. The high frequency of vehicles passing over the existing road surface causes a decrease in the level of road service. This study aims to determine the type of damage and the value of conditions that occur using the Road Condition Index (RCI) method, also to determine the appropriate type of treatment and determine the cost and treatment of road damage on the Hertasning Road section. Data analysis was performed functional condition calculations with 2 stages of calculation, namely the Road Condition Index (RCI) method and the analysis of the cost budget from the RCI assessment results with the 1995 Bina Marga standard method. The results of this study found that the types of damage to the Hertasning Road section included grain release, holes, utility pit excavations, patches and crocodile cracks also received an average RCI of 76.92 and also the handling and costs used using AHSP Bina Marga 2018 requires Rp. 531,210,000. With the research on road condition assessment using the RCI method can provide an overview or decryption of road conditions on Hertasning Road, which can be used as a data base for planning and implementing road rehabilitation and maintenance.


Author(s):  
Reni Dewita ◽  
I G. A. Adnyana Putera ◽  
I G. Putu Suparsa

Facilities in an airport requires maintenance activity in order to achieve excellent quality level and able to support activities at the airport to avoid negative impacts, which is the declining quality of the facility that can lead to lower levels of the productivity carried out in an airport. Maintenance facilities at Bali's Ngurah Rai airport need the maintenance costs planning. To get proper maintenance actions,  the maintenance costs early stages of planning phase needs to develop a model of facility maintenance costs that can provide the maintenance costs estimates quickly and accurately. To produce a maintenance costs model we should identify the maintenance activities that exist at Ngurah Rai airport. Maintenance costs data used is within the last 5 years (2007-2011). Using the Cost Significant Model methode and the linear regression equation it showed that several of the facility maintenace significantly affect the facility maintenance costs in the Ngurah Rai Airport which is the cost of passenger terminal building maintenance (X6), the cost of runway maintenance (X1), the cost of taxiway maintenance (X2), the cost of air conditioning installation maintenance (X14), the cost of road maintenance (X4), the cost of vehicle parking maintenance (X5), and the cost of navigation and communication equipment maintenance (X10). There is 3  linear regression equation model which is 1) Y = 11873745878,77 + 0,993 X1 + 0,826 X2 + 0,334 X4 + 1,181 X6, 2) Y = -698840481,94 + 1,327 X1 + 1,716 X2 + 5,516 X5+ 3,060 X14, and 3) Y = 82110363478,07 + 1,013 X1 - 17,223X5 + 22,406 X10 - 12,035 X14. After doing the Cost Model Factor (CMF) test to the three linear regression equation, the most accurate equation is linear regression equation Y = 82110363478,07 + 1,013 X1 - 17,223X5 + 22,406 X10 - 12,035 X14 that has the average ratio 0.006% of the actual cost, so it is the best facility maintenance cost model at Bali's Ngurah Rai Airport.


2019 ◽  
Vol 24 (2) ◽  
pp. 184
Author(s):  
Marsinta Simamora ◽  
Diarto Trisnoyuwono ◽  
Anastasia Hendrina Muda

National road management is not optimal and inefficient, the indications can be seen from the number of early damage cases of the road construction found. Indeed, natural damage to road construction is unavoidable but it becomes a problem if the damage occurs not long after the road product is handed over to the road manager or the government. Then the next question can arise whether the phenomenon of early pavement damage will cause harm to both road users and the government.This study aims to show the thinking framework of financial consequences and apply it through a model due to the occurrence of premature damage. Referring to the concept of benefit value that is represented by road conditions over the life of the service, then roads that have been damaged before their construction ends will result in losses due to loss of benefits. Based on this concept, a simulation was conducted using a national road data. Simulation results show that there is an estimated financial loss due to the occurrence of early damage. For early damage with a condition value of loss of 36 then the estimated loss is Rp 458,257,899.41 per kilometer. Estimated average loss per kilometer for each loss of one unit of condition value is Rp 12,72,386.09. The results of this study also show that roads that do not suffer early damage do not cause losses or losses are zero.


2020 ◽  
pp. 1-30 ◽  
Author(s):  
Salem Abo-Zaid

This paper studies the government spending multiplier in the presence of the cost channel of the nominal interest rate. I find that the spending multiplier of normal times declines markedly when this channel is introduced. The rise in government spending leads to a rise in the nominal interest rate and, with the cost channel, to a rise in the marginal cost and inflation. In turn, this leads to a bigger rise in the nominal interest rate and the expected real interest rate, hence a lower multiplier, than in a model that abstracts from the cost channel. On the other hand, in a liquidity trap, the cost channel makes the spending multiplier larger. Therefore, by ignoring the cost channel, the spending multiplier is overestimated in normal times and underestimated during liquidity trap episodes. Since liquidity traps are rare, however, the spending multiplier is mostly lower than in previous estimates.


2013 ◽  
Vol 723 ◽  
pp. 923-930 ◽  
Author(s):  
Yung Lin Chen ◽  
Jyh Dong Lin

Taiwan Highway System experiences successively investment of few decades in government. After the first national highway-Chung Shan, the Second national highway, twelve west to east freeway and western seaside freeway go to operation, the road network is gradually complete. The road engineering changes the style from new construction to maintenance management. In recent years, because the government public construction budget reduce year by year, so road agencies should be emphasizing facilities management and enhancing construction performance that keeping highway transits service quality with the constraints of budget limitations. World Bank carries on a series of project researches to the road in 1968 and develops the related evaluation module. In HDM-4, it provides the extensive module application and explicit method in the stages such as planning, programming, preparation and operation etc. It provides a reference that road agencies carry on related decision. HDM-4 provide user to adjusting with different region parameter such as weather, environment...etc. So this tool can be applicable to more widespread region. When the related pavement maintenance systems are not satisfactory, how to use the international identify tool help Taiwans highway maintenance management. It is very interesting and workable research. We use HDM-4 to collect and analyze Guan-Xi regions Highway No.3 network data, traffic characteristic and cost related information. Through this knowledge, we can adjust the HDM-4s parameter to suit Taiwans condition. Besides, we review technical literature and experts experience to determine on maintenance alternates. We use adjusted mode with real highway budget to determine the threshold of routine and period maintenance. Considering maintenance cost, user cost and highway economy to decide suitable threshold. Finally, base on the best maintenance strategies to explain the relation between maintenance budget and performance. Base on this result, we can determine the budget allotting criteria to reach the biggest economy benefit of the resource.


2004 ◽  
Vol 34 (8) ◽  
pp. 1747-1754 ◽  
Author(s):  
Jenny Karlsson ◽  
Mikael Rönnqvist ◽  
Johan Bergström

The problem we consider is annual harvesting planning from the perspective of Swedish forest companies. The main decisions deal with which areas to harvest during an annual period so that the wood-processing facilities receive the required amount of assortments. Each area has a specific size and composition of assortments, and the choice of harvesting areas affects the production level of different assortments. We need to decide which harvest team to use for each area, considering that each team has different skills, home base, and production capacities. Also, the weather and road conditions vary during the year. Some roads cannot be used during certain time periods and others should be avoided. The road maintenance cost varies during the year. Also, some areas cannot be harvested during certain periods. Overall decisions about transportation and storage are also included. In this paper, we develop a mixed integer programming model for the problem. There are binary variables associated with harvesting, allocation of teams, and road-opening decisions. The other decisions are represented by continuous variables. We solve this problem directly with CPLEX 8.1 within a practical solution time limit. Computational results from a major Swedish forest company are presented.


Author(s):  
Andreas Kuehnle ◽  
Wilco Burghout

Sweden spends 1.7 billion Crowns on winter road maintenance annually. A large part of this money goes into plowing, salting, and sanding of the roads. The decision about what maintenance to perform is made, in part, based on data received from road weather information stations, some of which are also equipped with video cameras. These video cameras form an additional unexploited sensor for determining the road condition during winter. Images taken from a handheld roadside video camera are investigated here to see if it is possible to determine the road state (dry, wet, snowy, icy, snowy with tracks) from the video images alone. The system is intended to supplement the other weather station measurements, such as temperature and wind speed, and make better maintenance decisions and quality control of maintenance possible. The results indicate that it is possible to distinguish between all road states except for ice/wet and ice/tracks. Typical class separations are a Mahanalobis distance between 0 and 2. Neural networks with three or four input features, three to five hidden neurons, and a sigmoid-sigmoid-linear architecture are used to classify the road state. Rates of correct classification are typically 40 to 50 percent with these networks. There are useful feature combinations, including purely monochrome features, which do not depend on the network architecture.


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