Title: Applying the choosing by advantages method to select the optimal contract type for road maintenance

Authors: Harri Haapasalo; Aki Aapaoja; Sami Björkman; Matti Matinheikki

Addresses: Industrial Engineering and Management, University of Oulu, P.O. Box 4610, FI-90014, Finland ' Industrial Engineering and Management, University of Oulu, P.O. Box 4610, FI-90014, Finland ' Industrial Engineering and Management, University of Oulu, P.O. Box 4610, FI-90014, Finland ' Industrial Engineering and Management, University of Oulu, P.O. Box 4610, FI-90014, Finland

Abstract: The public infrastructure sector is under constant pressure to cut costs and improve efficiency. The purpose of this research project is to create comparison criteria for contract models regarding the needs of road network maintenance operations. This research consists of two segments: a literature review and an empirical analysis. The literature review focuses on the various contract models used in road maintenance procurement. The literature on modern business management is also reviewed to identify certain factors that efficient road network operations should assess during contracting. In the analysis, comparison criteria are created based on the factors identified from the literature. Procurement models are compared by using the choosing by advantages analysis, which shows the benefits of the chosen contract models in terms of their suitability for road network procurement. The results emphasise the suitability of combining project and asset management as integrated approaches.

Keywords: choosing by advantages; CBA; road maintenance; public infrastructure; contract models; lean management; customer value; decision making; public procurement; public-private partnerships; PPP; procurement management; contract types; road network procurement; project management; asset management.

DOI: 10.1504/IJPM.2015.072385

International Journal of Procurement Management, 2015 Vol.8 No.6, pp.643 - 665

Received: 22 Apr 2014
Accepted: 10 Aug 2014

Published online: 12 Oct 2015 *

Full-text access for editors Full-text access for subscribers Purchase this article Comment on this article