Confederation of International Contractors Associations What does - - PowerPoint PPT Presentation

Brown Bag Lunch with the World Bank

Confederation of International Contractors’ Associations

Washington D.C., May 19, 2016

What does the future hold for Performance-Based road maintenance Contracts (PBC)?

by Michel DEMARRE DG SEFI (French Association of International Contractors)

A case for PBC…

• CICA-WB meeting (2002): Output-based aid
• On a long-term basis, procurement rules are instrumental in

shaping the construction industry

– Article in Routes-Roads (2006)

http://www.piarc.org/en/order-library/4885-en-A%20contractor-s%20perspective%20on%20the%20impact%20of%20new%20contract%20forms.htm

• Review based on examples from my company in various

countries

– Paper presented in 24th World Road Congress (Mexico 2011) : Innovative Public-Private Partnerships in Road Maintenance and Management : a contractor’s perspective

…but PBC just isn’t taking off

• Examples from industrialized countries :

– France – Alberta – Quebec

• In spite of the opportunity to promote life-cycle costing

Main issues

• Sustainability of procurement over time

– Is PBC just a fad?

• What business model?

– What happens at retendering?

• Staff (TUPE in the UK)
• Competition (big companies vs SMEs; risk of private monopolies) : size of

maintenance areas, number of companies allowed per area, duration of contracts, etc.

• Need of a robust analysis of the industry, tailored to market context (Procurement

Strategy for Devt)

– Corporate structure

• cf UK (acquisition of Mouchel by Kier)
• What guarantee system?