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This paper considers the choice between different approaches to contract for the construction and maintenance of infrastructure projects. The need to control for user costs over the life cycle of an asset is demonstrated to be a core aspect of contract design. The more likely it is that a certain problem in the current infrastructure could be sorted out in several different ways, the more strongly should the tendering agency consider innovative design alternatives such as performance contracts of Public Private Partnerships. It is also demonstrated that contracts which cover both construction and subsequent maintenance must be accompanied by bonuses and penalties for remunerating or punishing the entrepreneur for delivering (or not) appropriate infrastructure quality.

Jan-Eric NILSSON, Swedish National Road and Transport Research Institute (VTI) Stockholm, Sweden
OECD Discussion Paper No 2012-11, October 2012

content link: http://www.internationaltransportforum.org/jtrc/DiscussionPapers/DP201211.pdf
content language: English
English summary: no
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This content is related to:
project type
International projects 
Other programmes 
area of interest
 maintenance management
 economics & administration
 infrastructure management
user type
road authorities/owners 
city authorities 
construction companies 
material producers 
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created: RC User, 04.01.2013 09:28:08
last modified: RC User, 27.05.2013 09:52:41



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