Country: Australia
Key Area: Transportation
Services: Project Procurement and Construction

The New South Wales Roads and Traffic Authority sought a review to guide their policy decision on how to proceed in the future with their current Performance Specified Maintenance Contract (PSMC), which is close to termination.  Opus was commissioned to review current international and national practice with PSMC’s. Opus provides a unique combination of experience with this type of contract:

• Opus has a business presence in most countries that operate these contracts,
• Opus is involved in the planning and development of contract performance specifications,
• Opus manages PSMC’s, and
• Opus operates as the contractor in PSMC’s.

The study considered what the various road authorities in the Australian states, New Zealand, Canadian provinces, US states, Europe and UK were doing in procuring roads maintenance by contract. More detailed research into the contract processes was undertaken for England, Ontario, British Columbia, Finland, New Zealand, Western Australia, and Tasmania because each of those authorities have been engaged in long term PSMC’s that include managing the life cycle of the pavements.  Our international team researched and reported on the various contract policies and structures, and reviewed the success and issues with the current contracts as well as reporting on planned future developments.  Following the review stage, the Roads and Traffic Authority was determined to develop a second generation PSMC that would incorporate the practice knowledge from around the world.  Opus will be preparing the specification of performance measures for a new contract.

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