Abstract
Performance-based contracts (PBC), one kind of the delivery system has been conducted in Indonesia starting in 2011. The aim of the implementation of PBC in Indonesia is to solve the premature deterioration of national roads in Indonesia that still occur to date and to achieve the best level of service. Implementation of performance-based contracts is not as easy as imagine since many contractors still don’t understand to control the risk if they are given work with performance-based contracts. In this study used the system dynamic approach, the choice of this method because PBC is a long-term contract, where past events can affect current and future events, as well as future events, can be avoided by evaluating today’s events and events in the past. In this paper will show the interface generated after the base model Stock Flow Diagram (SFD) is verified. After the model has been validated, the model is ready as a simulation tool to get the best performance-based contracting mechanism and implementation in Indonesia. So, it can be used in developing countries.
Highlights
A national road project with performance-based contracts has been conducted in Indonesia starting in 2011
The implementation of Performance-based contracts (PBC) in Indonesia aims to solve the premature deterioration of national roads in Indonesia that still occur to date and to achieve the best level of service
After the model has been validated, the model is ready as a simulation tool to get each payoff the government and the contractor
Summary
A national road project with performance-based contracts has been conducted in Indonesia starting in 2011. The implementation of PBC in Indonesia aims to solve the premature deterioration of national roads in Indonesia that still occur to date and to achieve the best level of service. One of the pilot projects that is the case study in this research simulation is the Semarang-Bawen project. The project has a length of 22 km. On a performance-based contract, the work is divided into several phases in the contract i.e. 1) planning and construction period 840 days, 2) maintenance service period 1643 days, and 3) maintenance period 180 days. In the planning and construction period, there is a normalization condition for 151 days at the beginning of the period [1]
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