Confederation of International Contractors’ Associations What does the future hold for Performance-Based road maintenance Contracts (PBC)? by Michel DEMARRE DG SEFI (French Association of International Contractors) Washington D.C., May 19, 2016 Brown Bag Lunch with the World Bank
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 Dev t ) – Corporate structure • cf UK (acquisition of Mouchel by Kier) • What guarantee system?
Recommend
More recommend
