Abstract

The Government of Indonesia has implemented an integrated contract, performance-based contract (PBC) to preserve national roads since 2011. Comparing with conventional agreements that prioritize input and maintenance processes, PBC prioritizes the output and outcome of clear and measurable road performance. In the performance-based contracts are required WIM (weigh in motion) tools to monitor the overloading vehicles throughout national roads with PBC and should be provided by the contractor as stated in the contract. However, the installation of WIM tools with the high budget has not been beneficial for the contractor because not followed by punishment for the “overloading” vehicles. PBC is the risk sharing between government as road authority and the contractor as the private sector. So, in PBC practice not allowing any significant losses on either party. This study resulted in a performancebased contract simulator by combining WIM technology and dynamic system methods. If the government succeeds in stopping the overloading vehicle entering the road with PBC contract but the contractor still fails to meet the minimum performance, that is the own risk of the contractor and resulted in the imposition of a fine to the contractor as established in the PBC contract. .

Highlights

  • The problem of infrastructure in Indonesia is the premature deterioration of the national road

  • This paper will show the amount of compensation that the government should give to the contractor if the vehicle overloading is still crossing the national road using the performance-based contract (PBC) contract

  • Because the PBC contract does not allow vehicle overloading through this road but in reality, this still happens

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Summary

Introduction

The problem of infrastructure in Indonesia is the premature deterioration of the national road. It can bring about to questions, speculations and the assumption that the deterioration of road is caused by inaccurate planning, implementation https://doi.org/10.10 51/matecconf /201927602009 of work that is not following the specification and method and the lack of accurate supervisory the field work. These cases cause the risk of road rehabilitation to become a burden on Directorate General Bina Marga as road authority in Indonesia (government). The national road should be able to serve the traffic by the designed at the time of planning period and established in the planning contract This condition can due to the contractor action not based on the method specified in the contract. The incident proves that the risk that should be the burden of planners, supervisors, and contractors burden the road authority (government) because the government must make additional repairs to roads and improved to provide the best service to road users [3]

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