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Additional info for Economic Evaluation of Long-Life Pavements: Phase 1 (Road Transport and Intermodal Linkages Research Programme)
This further analysis could include: • Use of country-specific real cost data for traditional surfacing rather than the single “representative” value used in the standard test case assessments. • Further variations in the maintenance profiles that make allowance for the different traffic flows and proportions of heavy vehicles. • Improved estimation of the consequences of working with the advanced surfacing. • Impact of the condition of the existing pavement on the long-term performance of the advanced surfacing, particularly where the structural condition or evenness are poor.
A social time preference rate or discount rate (which reflects the social value attached to current versus future expenditures and benefits) is used to reduce the value of costs that occur in the future to a common base year. The use of whole-life cost techniques to consider the total cost of projects is well established in the construction world. PIARC (2000a, 2000b) have examined whole-life costing of pavements in some detail. PIARC put forward the following definition of whole-life costing used by the United States Department of Transportation: … a process for evaluating the total economic worth of a useable project by analysing initial costs and discounted future costs, such as maintenance, user, reconstruction, rehabilitation, restoring and resurfacing costs over the life of the project … The PIARC reports considered the various uses of whole-life costing techniques for a range of highway pavement-related projects.
As the model is based on a spreadsheet, it has been kept relatively straightforward. The user needs to enter a realistic maintenance regime for each of the pavement options being considered. There is the option to include other costs in the analysis, such as initial construction cost, operating costs or any other associated costs or benefits. They can be entered either as part of the initial maintenance cost or as costs incurred in future years of the analysis period. All costs are discounted to a base year which allows a valid comparison of NPVs of costs between the project options considered.
Economic Evaluation of Long-Life Pavements: Phase 1 (Road Transport and Intermodal Linkages Research Programme) by Organisation for Economic Co-Operation a