Key challenges and coping strategies for performance-based contracts in Urban road maintenance

ABSTRACT Many governments worldwide have recently adopted and recognized the value of performance-based contracts (PBCs) in various sectors. Research teams have developed an innovative PBC for urban road maintenance (URM) and implemented a one-year pilot program in an administrative district of Taipei City, Taiwan, in which the preliminary benefits of the pilot program for stakeholders have been proven but not sufficient for long-term contracts and citywide implementation. This study developed a five-perspective balanced scorecard (BSC) approach, adding an additional social environment perspective to examine the outcomes of strategic planning and performance evaluation for URM. This study organized two focus group interviews with 30 pilot program participants to highlight the key challenges and develop key coping strategies (KCSs). Identified key challenges were transformed into key success factors (KSFs) using the BSC approach. Among identified KCSs, attracting good contractors to participate, setting appropriate performance indicators and thresholds, enhancing the professional ability of the authority staffs, and establishing PBC bidding template documents are the most valuable strategies. The significant outcomes are organized into a correspondence diagram of the KSFs and KCSs, which serve as a benchmark for city road authorities when implementing PBCs to improve the performance of URM.