dc.description.abstract | Performance-based contracts (PBC) have been adopted increasingly in various countries. The results and outcomes of contract performance have been valued, and the benefits of their application in various fields have been recognized. However, establishing an objective and convincing benefit evaluation framework to facilitate promotion remains a major challenge for those who wish to use PBCs. In a previous research project in Taipei City, the focus was on introducing PBC into the daily inspection and repair operations of urban roads, with the primary goal of meeting the needs of road users, authorities, and contractors. Key contract elements of PBC, such as performance indicators and payment/deduction mechanisms, were established in this pilot program. Building upon this foundation, the current study further develops a performance evaluation framework for this type of PBC, comprising one qualitative and eight quantitative performance evaluation criteria. To validate the feasibility of the proposed framework, the study targeted a previous pilot project that implemented PBC. This study uses the benefit-cost ratio (BCR) method for the pilot program. It calculates the effectiveness of introducing PBC to verify the feasibility of the proposed framework. The validation results show that qualitative benefit evaluation using the Pavement Condition Index achieves a “satisfactory” rating, indicating it ensures the quality of road maintenance. For the quantitative benefit evaluation, an overall BCR of 3.58, considering road users, authorities, and contractors indicators, suggests that it is economically viable. The benefit evaluation framework developed in this study can be used as a simple and easy-to-use evaluation tool for other organizations to assess whether to introduce PBC and can help promote the use of PBC. Additionally, through a two-stage expert interview process, the study identified 12 key success factors for Performance-Based Contracts and their correlations with strategies for agencies to cope, offering valuable insights for agencies considering the adoption of PBC. | en_US |