Background and goal of the investigation

Since the reorganisation of the Norwegian Public Roads Administration in 2003, operation and maintenance of the road network has largely been subject to competitive tendering through operating and maintenance contracts based on function responsibility (function contracts). As of 31 December 2008, there were a total of 105 function contracts in operation, and the total turnover in 2008 amounted to NOK 2.1 billion.

The Storting has assumed that maintenance of the road network will be timely and of the correct quality. Correspondingly, the Ministry of Transport and Communications emphasises that it is important that the roads motorists drive on are safe and of a good standard.

The goal of the investigation was to assess whether operating and maintenance tasks are managed and performed in a manner that takes due account of traffic safety considerations and the accessibility of the road network.

Method

A document analysis and a case study were carried out. A questionnaire survey was also conducted among construction managers and section managers in the Norwegian Public Roads Administration with responsibility for maintenance of the road network. Interviews were also conducted with the Ministry of Transport and Communications, the Directorate of Public Roads, the five regions in the Public Roads Administration and a selection of four districts.

The results

The investigation shows that there are deficiencies in the operation of a substantial proportion of the road network. This is clear both from evaluations carried out/conducted by construction managers in the Public Roads Authority and from analyses conducted by SINTEF on behalf of the Office of the Auditor General. Among other things, the deficiencies mean that the requirements for driving conditions during the winter season are not met.

The investigation also shows that the management and control system for operation and maintenance of the road network has material deficiencies:

The investigation shows that reporting is inadequate in terms of providing reliable information about the condition of the road network. The Ministry of Transport and Communications and the Public Roads Administration therefore have an insufficient basis on which to assess whether operation of the road network is in accordance with the stipulated standards and priorities. The investigation also shows that reporting to the Ministry does not provide systematic feedback on whether management signals concerning function contracts are followed up.

Moreover, the organisation of the operation and maintenance of the road network is highly decentralised, since responsibility for administration of the function contracts is largely assigned to the final link in the organisational chain (the districts in the Public Roads Administration). The investigation shows that, despite this, a management and control system has not been established that could provide the Directorate of Roads or Ministry of Transport and Communications with reliable information about whether the work carried out by the contractors is of satisfactory quality. Nor has the Ministry carried out systematic evaluations in this field.

The investigation shows that, for many contracts, too little resources are allocated for control purposes and that the actual control level is lower than stipulated in the adopted control plans. In light of the fact that the function contracts are of great societal and socioeconomic importance, the Office of the Auditor General has pointed out that the owner must adequately follow up the work performed by the contractors to ensure that the operating and maintenance tasks carried out are of the correct quality. The Office of the Auditor General has also stressed that it is important that the contractors have sufficient incentives to deliver high quality in their operation of the road network.

When the Norwegian Public Roads Administration was reorganised in 2003, competitive tendering for operation and maintenance tasks was emphasised as an important means of achieving the best possible efficiency. Competition between suppliers is a precondition for effective procurements. The investigation shows that competition has been weak in the contractor market. The Office of the Auditor General has underlined that the Ministry of Transport of Communications must follow up to ensure that systematic efforts are made to stimulate competition in the contractor market.