RISK ISSUES IN PERFORMANCE-SPECIFIED FLEXIBLE PAVING CONTRACTS

It is widely accepted that true performance specifications are a pipe dream while there are no adequate performance models of pavement behavior. In the United States, the SHRP Superpave performance prediction model was found to have significant technical problems which have prompted a review that will not be completed until the year 2005. Despite the technological limitations, there has been a strong response to a number of design, construct and maintain (DCM) contracts in NSW which require a 10 year pavement warranty. The 1997 Federal inquiry into road funding espoused the economic benefits of DCM and similar long-term warranty contracts. This paper explores the current limitations of knowledge and technology which need to be appreciated in assuming the risks of performance specified paving works. It also examines some particular risks which will need further consideration before this form of contracting is extended to pavement rehabilitation contracts. (a) For the covering entry of this conference, please see IRRD abstract no. 492019.