Anti-crisis management of road maintenance in the application of performance-based contracts.

The purpose of the article is to propose a modification of the existing simulation model of Performance Based Contract (PBC) implementation to analyze the effectiveness of crisis management of the contract when designing a PBC in the context of: 1) lack of domestic historical experience in the practical use of PBC; 2) insufficiency and incompleteness of data from surveys and inspections of the operational condition of road components necessary to create models of changes in operational condition over time in order to predict the risks inherent in PBC and the possible occurrence of crises during the implementation of PBC. The analysis of foreign research data based on the actual materials of PBC implementation in many countries of the world generally confirms the effectiveness of PBC and their superiority over traditional method-based contracts. However, for example, for specialized PBCs for road marking maintenance, the results of the “before and after” analysis conducted to assess the impact of PBCs on road safety did not provide convincing evidence that performance-based contracts for road marking maintenance are an effective safety countermeasure that helps reduce accidents. It is established that a sufficient regulatory framework has been created for the implementation of PBC in Ukraine, but the lack of actually implemented PBC projects makes it impossible to comprehensively test them in practice. The way of research on creating a simplified simulation model of PBC is demonstrated. It is shown that crisis management of road enterprises using PBC can be assessed using a simulation model implemented in Excel. For an expert manager (PBC designer), this software implementation of the simulation model will be a useful simulator mechanism with which he or she can feel and evaluate the impact of various input parameters on the studied contract project, in particular, to explore different crisis scenarios. The author’s hypothesis is that an experienced expert manager is able to feel the threat to the organization’s operations and reputation caused by such a hypothetical virtual crisis.

Authors

Publication Details

Journal
Modern Science
Published
2025-03-27
DOI
https://doi.org/10.62204/2336-498x-2025-1-2
Primary Topic
Construction Project Management and Performance
Type
article
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article

Anti-crisis management of road maintenance in the application of performance-based contracts.

Natalia Sokolova
Modern Science
Construction Project Management and Performance
article

Anti-crisis management of road maintenance in the application of performance-based contracts.

Natalia Sokolova
article en

Abstract

The purpose of the article is to propose a modification of the existing simulation model of Performance Based Contract (PBC) implementation to analyze the effectiveness of crisis management of the contract when designing a PBC in the context of: 1) lack of domestic historical experience in the practical use of PBC; 2) insufficiency and incompleteness of data from surveys and inspections of the operational condition of road components necessary to create models of changes in operational condition over time in order to predict the risks inherent in PBC and the possible occurrence of crises during the implementation of PBC. The analysis of foreign research data based on the actual materials of PBC implementation in many countries of the world generally confirms the effectiveness of PBC and their superiority over traditional method-based contracts. However, for example, for specialized PBCs for road marking maintenance, the results of the “before and after” analysis conducted to assess the impact of PBCs on road safety did not provide convincing evidence that performance-based contracts for road marking maintenance are an effective safety countermeasure that helps reduce accidents. It is established that a sufficient regulatory framework has been created for the implementation of PBC in Ukraine, but the lack of actually implemented PBC projects makes it impossible to comprehensively test them in practice. The way of research on creating a simplified simulation model of PBC is demonstrated. It is shown that crisis management of road enterprises using PBC can be assessed using a simulation model implemented in Excel. For an expert manager (PBC designer), this software implementation of the simulation model will be a useful simulator mechanism with which he or she can feel and evaluate the impact of various input parameters on the studied contract project, in particular, to explore different crisis scenarios. The author’s hypothesis is that an experienced expert manager is able to feel the threat to the organization’s operations and reputation caused by such a hypothetical virtual crisis.

Modern ScienceVol. 176
Openalex Percentile: Top 93%
Construction Project Management and Performance
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Anti-crisis management of road maintenance in the application of performance-based contracts. — Natalia Sokolova · Modern Science (2025) | TGRS Research Map | TGRS