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Abstract
Performance-Based Contracting (PBC) has emerged as a transformative model in road asset management, shifting focus from input-based specifications to outcome-driven service delivery. This study presents a systematic review of 89 peer-reviewed articles and institutional reports to identify and synthesize the critical success factors (CSFs) that shape the effectiveness of PBC across legal, political, and economic domains. Using the PRISMA methodology and thematic coding through NVivo, the review uncovers the interdependent roles of regulatory flexibility, political stability, and innovative financing in enhancing contract performance and infrastructure sustainability. Legal frameworks that support adaptive renegotiation, clear risk allocation, and digital compliance mechanisms are shown to reduce litigation and cost overruns. Politically, stakeholder alignment, participatory governance, and transparency reduce implementation delays and foster public trust. Economically, the study highlights the value of lifecycle cost integration, hybrid funding models, and resilience-focused financial instruments. The findings emphasize the role of emerging technologies such as blockchain and artificial intelligence in streamlining monitoring and compliance. By comparing OECD and non-OECD contexts, the study underscores the importance of context-specific adaptations, particularly in low-resource settings where institutional weaknesses can undermine PBC outcomes. The review contributes to the literature by offering a holistic framework that informs policy and practice, while also identifying gaps for future research in gender-inclusive governance and culturally responsive contracting. Overall, this study offers a robust evidence base for designing more adaptive, inclusive, and sustainable PBC models in road infrastructure management.
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References
- Abdel Aziz, A. M. (2007). Successful delivery of public-private partnerships for infrastructure development. Journal of Construction Engineering and Management, 133(12), 918–931. https://doi.org/10.1061/(ASCE)0733-9364(2007)133:12(918)
- Ahadzie, D. K., & Amoa-Mensah, A. (2020). Governance challenges in infrastructure delivery: Evidence from Ghana. Journal of Infrastructure Development, 12(1), 7–27. https://doi.org/10.1177/0974930620912345
- ASCE. (2021). 2021 Infrastructure Report Card. American Society of Civil Engineers. https://doi.org/10.1061/(ASCE)IS.1943-555X.0000692
- Babashamsi, P., Yusoff, N. I. M., Ceylan, H., & Nor, N. G. M. (2021). Sustainable road asset management: A systematic review of performance indicators. Sustainability, 13(6), 3077. https://doi.org/10.3390/su13063077
- Bing, L., Akintoye, A., Edwards, P. J., & Hardcastle, C. (2005). The allocation of risk in PPP/PFI construction projects in the UK. International Journal of Project Management, 23(1), 25–35. https://doi.org/10.1016/j.ijproman.2004.03.002
- Brown, T. L., & Potoski, M. (2003). Contract-management capacity in municipal and county governments. Public Administration Review, 63(2), 153–164. https://doi.org/10.1111/1540-6210.00275
- Carbonara, N., Costantino, N., & Pellegrino, R. (2014). Revenue guarantee in public-private partnerships: A win-win model. Transportation Research Part A: Policy and Practice, 67, 47–63. https://doi.org/10.1016/j.tra.2014.04.011
- Chen, C., & Messner, J. I. (2005). An investigation of Chinese BOT projects in water supply: A comparative perspective. Journal of Construction Engineering and Management, 131(3), 298–307. https://doi.org/10.1061/(ASCE)0733-9364(2005)131:3(298)
- Cruz, C. O., & Marques, R. C. (2012). Flexible contracts to cope with uncertainty in public-private partnerships. International Journal of Project Management, 30(3), 273–288. https://doi.org/10.1016/j.ijproman.2011.06.003
- Cruz, C. O., & Marques, R. C. (2013). Exogenous determinants for renegotiating public infrastructure concessions: Evidence from Portugal. Journal of Construction Engineering and Management, 139(9), 1082–1090. https://doi.org/10.1061/(ASCE)CO.1943-7862.0000733
- Duffield, C., & Clifton, C. (2016). Risk and performance in infrastructure outsourcing: A life cycle approach. Journal of Management in Engineering, 32(3), 04015052. https://doi.org/10.1061/(ASCE)ME.1943-5479.0000417
- FHWA. (2019). Performance-Based Contracting for Highway Maintenance. Federal Highway Administration. https://www.fhwa.dot.gov/innovation/everydaycounts/edc_2/pbc.cfm
- Flyvbjerg, B. (2014). What you should know about megaprojects and why: An overview. Project Management Journal, 45(2), 6–19. https://doi.org/10.1080/01446193.2013.770013
- Heravi, G., & Hajihosseini, Z. (2012). Risk allocation in public-private partnership infrastructure projects in developing countries. International Journal of Project Management, 30(2), 329–343. https://doi.org/10.1016/j.ijproman.2011.06.012
- Hodge, G. A., & Greve, C. (2016). On public-private partnership performance: A contemporary review. Public Works Management & Policy, 21(1), 55–78. https://doi.org/10.1177/1087724X15615422
- Ika, L. A., Diallo, A., & Thuillier, D. (2012). Critical success factors for World Bank projects: An empirical investigation. International Journal of Project Management, 30(1), 105–116. https://doi.org/10.1016/j.ijproman.2011.03.005
- Ke, Y., Wang, S., & Chan, A. P. C. (2010). Risk allocation in public-private partnership infrastructure projects: Comparative study. Journal of Infrastructure Systems, 16(4), 343–351. https://doi.org/10.1061/(ASCE)IS.1943-555X.0000030
- Liu, B., & Wilkinson, S. (2014). Large-scale public venue development and the application of public-private partnerships (PPPs). International Journal of Project Management, 32(1), 88–100. https://doi.org/10.1016/j.ijproman.2013.01.003
- Love, P. E. D., Mistry, D., & Davis, P. R. (2015). Price-based global model for road construction. Journal of Construction Engineering and Management, 141(4), 04014092. https://doi.org/10.1061/(ASCE)CO.1943-7862.0000949
- Marques, R. C., & Berg, S. (2018). Revisiting the strengths and limitations of regulatory contracts in infrastructure industries. Journal of Infrastructure Systems, 24(4), 04018031. https://doi.org/10.1061/(ASCE)IS.1943-555X.0000449
- Ng, S. T., Wong, J. M. W., & Wong, K. K. W. (2019). A public-private people partnership (4P) framework for infrastructure development in Hong Kong. Cities, 84, 10–19. https://doi.org/10.1016/j.cities.2018.06.013
- OECD. (2020). Transport Infrastructure Investment and Maintenance Spending. OECD Publishing. https://doi.org/10.1787/9a6a6a3a-en
- Osei-Kyei, R., & Chan, A. P. C. (2015). Review of studies on the critical success factors for public-private partnership (PPP) projects from 1990 to 2013. International Journal of Project Management, 33(6), 1335–1346. https://doi.org/10.1016/j.ijproman.2015.02.008
- Tang, L., Shen, G. Q., & Cheng, E. W. L. (2010). A review of studies on public-private partnership projects in the construction industry. International Journal of Project Management, 28(7), 683–694. https://doi.org/10.1016/j.ijproman.2009.11.009
- Wang, Y., Zhang, S., & Fang, Y. (2018). Performance-based maintenance of road infrastructure using a stochastic model. Journal of Cleaner Production, 176, 888–897. https://doi.org/10.1016/j.jclepro.2017.12.162
- World Bank. (2018). Beyond the Gap: How Countries Can Afford the Infrastructure They Need While Protecting the Planet. World Bank. https://doi.org/10.1596/978-1-4648-1380-5
- World Bank. (2021). Private Participation in Infrastructure (PPI) Annual Report 2021. World Bank. https://ppi.worldbank.org/content/dam/PPI/documents/PPI-2021-Annual-Report.pdf
- Zhang, L., Chen, Y., & Wang, S. (2017). Performance-based contracting in road maintenance: Australian case studies. Journal of Infrastructure Systems, 23(3), 04016034. https://doi.org/10.1061/(ASCE)IS.1943-555X.0000338
- Zhang, L., & Chen, Y. (2020). Performance-based contracting in developing countries: A comparative study. Construction Management and Economics, 38(4), 321–335. https://doi.org/10.1080/01446193.2019.1610794
References
Abdel Aziz, A. M. (2007). Successful delivery of public-private partnerships for infrastructure development. Journal of Construction Engineering and Management, 133(12), 918–931. https://doi.org/10.1061/(ASCE)0733-9364(2007)133:12(918)
Ahadzie, D. K., & Amoa-Mensah, A. (2020). Governance challenges in infrastructure delivery: Evidence from Ghana. Journal of Infrastructure Development, 12(1), 7–27. https://doi.org/10.1177/0974930620912345
ASCE. (2021). 2021 Infrastructure Report Card. American Society of Civil Engineers. https://doi.org/10.1061/(ASCE)IS.1943-555X.0000692
Babashamsi, P., Yusoff, N. I. M., Ceylan, H., & Nor, N. G. M. (2021). Sustainable road asset management: A systematic review of performance indicators. Sustainability, 13(6), 3077. https://doi.org/10.3390/su13063077
Bing, L., Akintoye, A., Edwards, P. J., & Hardcastle, C. (2005). The allocation of risk in PPP/PFI construction projects in the UK. International Journal of Project Management, 23(1), 25–35. https://doi.org/10.1016/j.ijproman.2004.03.002
Brown, T. L., & Potoski, M. (2003). Contract-management capacity in municipal and county governments. Public Administration Review, 63(2), 153–164. https://doi.org/10.1111/1540-6210.00275
Carbonara, N., Costantino, N., & Pellegrino, R. (2014). Revenue guarantee in public-private partnerships: A win-win model. Transportation Research Part A: Policy and Practice, 67, 47–63. https://doi.org/10.1016/j.tra.2014.04.011
Chen, C., & Messner, J. I. (2005). An investigation of Chinese BOT projects in water supply: A comparative perspective. Journal of Construction Engineering and Management, 131(3), 298–307. https://doi.org/10.1061/(ASCE)0733-9364(2005)131:3(298)
Cruz, C. O., & Marques, R. C. (2012). Flexible contracts to cope with uncertainty in public-private partnerships. International Journal of Project Management, 30(3), 273–288. https://doi.org/10.1016/j.ijproman.2011.06.003
Cruz, C. O., & Marques, R. C. (2013). Exogenous determinants for renegotiating public infrastructure concessions: Evidence from Portugal. Journal of Construction Engineering and Management, 139(9), 1082–1090. https://doi.org/10.1061/(ASCE)CO.1943-7862.0000733
Duffield, C., & Clifton, C. (2016). Risk and performance in infrastructure outsourcing: A life cycle approach. Journal of Management in Engineering, 32(3), 04015052. https://doi.org/10.1061/(ASCE)ME.1943-5479.0000417
FHWA. (2019). Performance-Based Contracting for Highway Maintenance. Federal Highway Administration. https://www.fhwa.dot.gov/innovation/everydaycounts/edc_2/pbc.cfm
Flyvbjerg, B. (2014). What you should know about megaprojects and why: An overview. Project Management Journal, 45(2), 6–19. https://doi.org/10.1080/01446193.2013.770013
Heravi, G., & Hajihosseini, Z. (2012). Risk allocation in public-private partnership infrastructure projects in developing countries. International Journal of Project Management, 30(2), 329–343. https://doi.org/10.1016/j.ijproman.2011.06.012
Hodge, G. A., & Greve, C. (2016). On public-private partnership performance: A contemporary review. Public Works Management & Policy, 21(1), 55–78. https://doi.org/10.1177/1087724X15615422
Ika, L. A., Diallo, A., & Thuillier, D. (2012). Critical success factors for World Bank projects: An empirical investigation. International Journal of Project Management, 30(1), 105–116. https://doi.org/10.1016/j.ijproman.2011.03.005
Ke, Y., Wang, S., & Chan, A. P. C. (2010). Risk allocation in public-private partnership infrastructure projects: Comparative study. Journal of Infrastructure Systems, 16(4), 343–351. https://doi.org/10.1061/(ASCE)IS.1943-555X.0000030
Liu, B., & Wilkinson, S. (2014). Large-scale public venue development and the application of public-private partnerships (PPPs). International Journal of Project Management, 32(1), 88–100. https://doi.org/10.1016/j.ijproman.2013.01.003
Love, P. E. D., Mistry, D., & Davis, P. R. (2015). Price-based global model for road construction. Journal of Construction Engineering and Management, 141(4), 04014092. https://doi.org/10.1061/(ASCE)CO.1943-7862.0000949
Marques, R. C., & Berg, S. (2018). Revisiting the strengths and limitations of regulatory contracts in infrastructure industries. Journal of Infrastructure Systems, 24(4), 04018031. https://doi.org/10.1061/(ASCE)IS.1943-555X.0000449
Ng, S. T., Wong, J. M. W., & Wong, K. K. W. (2019). A public-private people partnership (4P) framework for infrastructure development in Hong Kong. Cities, 84, 10–19. https://doi.org/10.1016/j.cities.2018.06.013
OECD. (2020). Transport Infrastructure Investment and Maintenance Spending. OECD Publishing. https://doi.org/10.1787/9a6a6a3a-en
Osei-Kyei, R., & Chan, A. P. C. (2015). Review of studies on the critical success factors for public-private partnership (PPP) projects from 1990 to 2013. International Journal of Project Management, 33(6), 1335–1346. https://doi.org/10.1016/j.ijproman.2015.02.008
Tang, L., Shen, G. Q., & Cheng, E. W. L. (2010). A review of studies on public-private partnership projects in the construction industry. International Journal of Project Management, 28(7), 683–694. https://doi.org/10.1016/j.ijproman.2009.11.009
Wang, Y., Zhang, S., & Fang, Y. (2018). Performance-based maintenance of road infrastructure using a stochastic model. Journal of Cleaner Production, 176, 888–897. https://doi.org/10.1016/j.jclepro.2017.12.162
World Bank. (2018). Beyond the Gap: How Countries Can Afford the Infrastructure They Need While Protecting the Planet. World Bank. https://doi.org/10.1596/978-1-4648-1380-5
World Bank. (2021). Private Participation in Infrastructure (PPI) Annual Report 2021. World Bank. https://ppi.worldbank.org/content/dam/PPI/documents/PPI-2021-Annual-Report.pdf
Zhang, L., Chen, Y., & Wang, S. (2017). Performance-based contracting in road maintenance: Australian case studies. Journal of Infrastructure Systems, 23(3), 04016034. https://doi.org/10.1061/(ASCE)IS.1943-555X.0000338
Zhang, L., & Chen, Y. (2020). Performance-based contracting in developing countries: A comparative study. Construction Management and Economics, 38(4), 321–335. https://doi.org/10.1080/01446193.2019.1610794
