Key Benefits to Our Approach
TSNA-TI pioneered performance-based contracting (PBC) in the U.S., a contracting method that provides incentives to the contractor to achieve measurable outputs and outcomes. Traditionally maintenance contracting has relied on specifying methods, technologies, techniques, and materials along with the time period for executing the work. In principle, PBC communicates the desired results rather than the specified methodology.
The TSNA-TI approach contributes to local economic development by providing new job opportunities for area contractors, many of whom had not previously performed roadway maintenance work.
Benefits to PBC include:
- Assured Outcomes:
VMS guarantees services will meet agreed upon standards and established performance measures.
- Allocations of Risk:
Another primary motivation for many transportation agencies to adopt PBC is to shift a large portion of risk to the contractor. Using a pre-qualification process further minimizes the risk to the contracting agency.
- Cost Savings:
Substantial evidence is accumulating that PBC results in the same or better asset conditions and quality of maintenance service at less cost. Organizations such as the Transportation Research Board, several universities, internationally recognized experts, and state transportation agencies have published evidence concerning PBC cost savings.
- Innovations and Efficiencies:
Performance-based contracting allows TSNA-TI to achieve the desired client results using innovative methods, processes and technologies. The cost savings and efficiencies achieved through performance-based contracts can be attributed in part to the use of innovative contracting methods, operational tools, and on-the-job efficiencies.