THE APPLICATION OF PERFORMANCE

BASED CONTRACT:
Lessons Learned in Indonesia National Roads
Management

The Condition of National Road.. (1)

The Indonesian national roads comprise arterial highways and
collector roads in a primary road network system.
The pavement types and conditions of the whole national roads:
Table. National Road Length Distribution (in km)
Type of Pavement
Region/
Island

Road
length

Sumater
a & Java

15,708

15,336

41

Bali,
NTT,
NTB

2,376

2,172

189

Sulawesi

7,089

5,641

878

488

72

560

Kalimant
an

5,707

4,006

308

625

807

1,432

Maluku
& Papua

3,747

1,063

958

1,014

712

1,726

TOTAL

34,627

Hotmix/
Rigid

Nonhotmix

Unpaved
Gravel

Earth

218
-

Total

113

331

Source: Ministry of Public Works (2008) MOHON DIUPDATE DENGAN DATA TERBARU

28,278

2,364

2,286

1,079

3,995

The Condition of National Road (2)

Table: National Road Condition
Region/I
sland

Good
km

Moderate

Lightly
Damaged

Heavily
Damaged

Dead End

km

km

km

km

Total
km

Sumatera
& Java

8,094

51,5

6,611

42,1

809

5,1

82

0,5

113

0,7

15,70
8

Bali, NTT,
NTB

1,234

51,9

960

40,4

158

6,6

25

1,1

0,0

2,377

Sulawesi

4,609

65,0

1,662

23,4

606

9,8

95

1,3

30

0,4

7,092

Kalimanta
n

2,087

36,6

2,261

39,6

1,287

22,6

70

1,2

0,0

5,706

Maluku &
Papua

672

17,9

1,599

42,7

1,065

28,4

48

1,3

364

9,7

3,747

16,695

48,2

13,093

37,8

4,015

11,6

320

0,9

506

1,5

34,62
9

TOTAL

Source: Ministry of Public Works (2009) MOHON DIUPDATE DENGAN DATA TERBARU

The Current Issues:

Inefficiency Road Management & Maintenance

Why Performance Based Contract?

a) To fulfill demand;
b) To reduce cost of management and maintenance over
the long term;
c) Continuity in the provision of road maintenance by
means of continuous multiyears funding (5+ years);
d) The assurance of long term road performance. Improved
procedures, and a proactive response, drawing upon
innovative methods, investment in new technology and
machinery, and improved work ethic to ensure that task
are not having to repeated regulary;
e) The orientation on user satisfactory on road services;
f) Rational risk sharing

Pilot Project: Application of PBC

1. The Ciasem Pamanukan Project, West Java (2011): 21,8
km:
2. The Demak Trengguli Project Pavement (2011): 10,5 km;
3. The Semarang Bawen Project (2012);
4. The Bojonegoro Padangan Project (2012);
5. The Padangan Ngawi Project (2012)

Evaluation of Pilot Project

Project
Evaluation Result
Ciasem Pamanukan
-Demak Trengguli
++
Semarang Bawen
Bojonegoro Padangan
+
Padangan - Ngawi
+

Finding
a) Reduction cost of management and maintenance:....... (DATA)
b) Contract for .... Years, including road maintainance to achieve
certain performance;
c) The current contract may give to much freedom for the
contractor to apply pavement designs that are not consistent
with good practice.
d) The current contract provides no physical measure to verify
that the required design life will be reached.
e) The current contract did not define the required design
reliability.
f) Social, landscaping, safety, pedestrian facilities, flood
drainage, adjoining property interface and other design
features are not driven by design life consideration. Therefore
the employer must retain control of design and supervisionof
the design elements.

Finding
g) The supervision team appears to have no power to
enforce the Hold Point requirements of the contract as
this authority also has not been delegated;
h) Most of contractors do not have an efective Quality
Assurance Plan and not operate comprehensive quality
control system;
i) There is no mechanism in the contract documents to
identify the residual life at the end of waranty periodas
an means to reward or penalise the contractor.

Lessons Learned
1. Quality and compliance inspection remain necessary for PBC
contract to ensure that the design life is reached. Therefore
supervision consultants should be engaged and authorized to
carry out quality inspection.
2. The PBC contract documents should allow contractor to
choose the specifications to be used.
3. The PBC contract document should clarify the minimum design
standard that must be provided and the right of the employer to
insist on good practice design solutions;
4. The PBC model does not ensure the best outcomes for design
issues such as property access, pedestrian facilities, storm
drainage, safety standards, etc. The matters need to be
comprehensively defined by the contract documents.
5. Procedures and sanctions, including termination, applicable in
the event of the contractors failure to deliver specified quality
to respond to engineers instructions should be clearly defined.