This study assesses the effectiveness of road network pavement maintenance using Markov Chain analysis based on historical costs and road roughness progression data. The analysis is based on a database developed by the State of Victoria, Australia, consisting of 2,197 road sections. The analysis measures maintenance effectiveness using the criterion of whether road sections remain in the same condition state or move to the next worst state based on a predefined roughness value. Principal inputs for the stochastic models, such as the development of transition probability matrices and associated cost functions, are discussed. Results show that, within the current budget envelop and only undertaking routine maintenance, the probability of road sections remaining in the same condition state, which is a determinant of maintenance effectiveness, exhibits a declining tendency from good to worst condition states. This finding prompts the discussion on when to increase maintenance expenditure such that the whole of life outcome is optimized. The method discussed in this paper provides tools for road authorities to select the appropriate maintenance action for each condition state of pavements based on the comparison analysis of the results of Markov Chain for different types of maintenance actions.

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Traditionally, road maintenance is conducted either using road authorities’ in-house resources or method-based contracting, where contractors do the work and are paid based on predefined volume and unit prices. Nowadays, Performance-based Maintenance Contracting (PBMC) is one of the most current approaches in road maintenance works. PBMC provides contractors with freedom in design, construction methods, materials, and innovation in performing the contract as long as the standard specified is fulfilled. While PBMC implementation is increasing around the world, it can be considered new in Malaysia. This research aims to investigate the viability and practicability of PBMC’s implementation for road maintenance in Malaysia. Specifically, the research’s objective is to identify factors that are affecting the adoption of PBMC for road maintenance works in Malaysia. To achieve that objective, interview data from industry practitioners that are involved in managing roads are analyzed. Factors affecting PBMC’s implementation for road maintenance in Malaysia can be categorized into two groups: PBMC (ex. awareness on PBMC) and Non-PBMC (ex. contractor’s integrity) related factors. The findings of this research would help policymakers, industry practitioners, and researchers improve the success of implementing PBMC in the facility management industry.