United States Department of Transportation
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Exploring Performance-Based Contracts: A Good Option to Address Long-Term Road Maintenance in California? [Research Brief]
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2023-07-01
[PDF-1.16 MB]
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Corporate Contributors:State of California SB1 2017/2018, Trustees of the California State University Sponsored Programs Administration ; United States. Department of Transportation. University Transportation Centers (UTC) Program ; United States. Department of Transportation. Office of the Assistant Secretary for Research and Technology
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Edition:Research Brief
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Abstract:The 2019 Report Card for California’s infrastructure indicates that California has the second worst roads in the country: “(55%) of the major urban roads in California are in poor condition.” This report indicates that S.B. (1)— which aims to “fix neighborhood streets, freeways, and bridges in communities across California” provides the revenue needed for maintenance, but more must be done. In 2018, roads faced an $85 billion funding gap over the next ten years. To address this issue, it was recommended that the state explore new and innovative funding models, including increased participation from the private sector. This research identifies the benefits and challenges of using performance-based contracts (PBCs) compared to traditional contracts and explores the main aspects of PBC implementation for road maintenance and relates them to California’s context.
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