1. Road Investment Decision Framework
Neil Robertson
PIARC ISOHDM Project Coordinator

2. Outline Road system management concepts
Investment decision support framework
Road Management System role
HDM-4 capabilities and applications

3. Road System Management
Planning
Programming
Preparation
Operations
Policy Research

4. Planning Analysing the road system as a whole Outputs:
long term expenditure planning estimates
road development and maintenance
various budgetary and economic scenarios
Outputs:
medium - long term budget estimates
forecasts of system performance
forecasts of road user effects

5. Programming Tactical Planning Outputs:
multi-year road works and expenditure programs
identifying and prioritising works candidates (maintenance, improvement, new)
optimised under budget constraints
Outputs:
short to medium term expenditure estimates under budget heads
candidate works programs: locations and types of work in each budget period

6. Preparation Evaluating road projects or investment options Outputs:
economic or engineering viability of projects
life-cycle analysis
pavement performance, effects of works, road user effects
Outputs:
annual pavement performance predictions
traffic predictions
maintenance and improvement effects
road user costs and benefits
environmental effects
standard economic indicators: NPV, EIRR, BCR etc

7. Operations Ongoing works and traffic management operations Outputs
daily or weekly decisions
focus on detail, on road sections and subsections
Outputs
work orders and schedules
monitoring labour, equipment and materials
details of work completed

8. Policy Research Studies
Fund allocation policies
Road user charges for Road Funds
Impacts on energy consumption of policy changes
Impact of axle load limits
Pavement maintenance and rehabilitation standards

9. Investment Decision Framework
Road system is an important economic asset
Assets require sustainable business management
Investment decisions will consider future performance of the investment
Performance:
of the infrastructure (physical & economic)
of the vehicle fleet
effect (benefits) to road users
value for money
Costs and benefits:
to the agency
to the road users
effective decision making requires a network of knowledge and decision support skills

10. Road Management Cycle Planning Policy Research Policies
Highway Management Information
Inventory
Condition
Resources
Treatments
Productivity
Unit Costs
Economic parameters
Classification and Standards
Performance Monitoring
Needs Assessment
Implementation
Programming
Finance and Resources
Operations
Project Preparation

11. Investment Information
Identifying deficiencies in the road system
Predicting future trends in deficiencies
Developing strategic plans and policies
developing forward plans for improvement and upkeep works
Programming works into budget years

12. Investment Information
Conducting appraisals of project proposals
Predicting impact and consequences of investment options
Researching local road transportation needs
Researching future impacts of operational or technological options

13. Road Asset Management System
Serves these investment information requirements
consists of many information components
road network
vehicle fleet and traffic
policies and standards
system deficiencies
financial
works programs
works performance, asset performance
includes an investment decision support capability

14. Road Asset Management System

15. Road Asset Management System
Road Asset Data
Decision Support Tools
Reporting Tools
Investment Studies
location reference
inventory
condition
traffic
Data Access
Asset reports
tabular
distance charts
time charts
summary graphs
maps
Policy
studies
financial data
geospatial data
Strategic
analysis
Policy research
Network
strategies
Investment
Analysis reports
summary
detail
graphical
map-based
Research
Studies
planning data
network policies
works standards
Works
Programming
Works
programs
Custom queries
model default data
model calibration
Project
Evaluation
Project
evaluations
Performance
reports
asset state
financial
user impact
value for money
Asset
performance
feedback
investment
study results
Network Performance Analysis

16. Road Asset Management System
The decision support system should:
support Planning, Programming, Preparation and Policy Research functions
present relevant, reliable, up to date information
predict future impacts on the transport system and its users
compare competing investment or policy choices
consider both the infrastructure and the community

17. Road Asset Management System
The decision support system should:
allow for new work, maintenance and upgrading
provide a reliable calibrated modeling capability
assess investment impacts over life cycles
provide monetary and non-monetary measures of investment effectiveness
prioritise investment candidates
identify optimum choices between alternative investments

18. HDM-4 in the Decision Framework
Road Asset Data
Decision Support Tools
Reporting Tools
Investment Studies
location reference
inventory
condition
traffic
Data Access
Asset reports
tabular
distance charts
time charts
summary graphs
maps
Policy
studies
financial data
geospatial data
Strategic
analysis
Policy research
Network
strategies
Investment
Analysis reports
summary
detail
graphical
map-based
Research
Studies
planning data
network policies
works standards
Works
Programming
Works
programs
Custom queries
model default data
model calibration
Project
Evaluation
Project
evaluations
Performance
reports
asset state
financial
user impact
value for money
Asset
performance
feedback
investment
study results
Network Performance Analysis

19. Purpose of HDM-4
The Highway Development and Management System is a decision tool to help you investigate your road investment choices.

20. Scope of HDM-4
providing, maintaining and upgrading urban and rural roads and highways
investigating the effect of vehicles, traffic characteristics, road user costs
investigating the social and environmental effects of investments
investigating long term issues which arise over asset life cycles.
* We can use HDM-4 to study these dimensions
* REVEAL POINTS

21. Analytical Framework
Predicts road network performance as a function of:
road asset characteristics
vehicle fleet, traffic volumes and loading
road condition and pavement strength
maintenance and improvement standards
Quantifies community benefits to road users from:
savings in costs of works
savings in vehicle operating costs (VOC)
reduced road user travel times
decrease in number of accidents
environmental effects

22. HDM-4 Applications

23. Example Applications Policy & strategy studies
Strategic planning for development and maintenance
Budget effects of minimum network standards
Allocation for competing needs (eg road classes)
Road use charging for establishing Road Funds
Impact of transport policy on energy consumption
Works programming options
applying fixed work standards
economic optimum constrained by budget
program optimised to a network performance standard
* Let's look at some examples of applications
* REVEAL POINTS

24. Example Applications Project preparation analysis Research Studies
Selection from design alternatives on life cycle cost
maintenance and rehabilitation options
widening and geometric improvement options
pavement upgrading and new construction
economic justification of project proposal
Research Studies
Network implications of new vehicles
Network impact of axle load limits
Effectiveness of alternative road maintenance practices
Impact of maintenance and rehabilitation standards
* At the more detailed level ...
* REVEAL POINTS

25. Integrating HDM-4 into Road Management Systems
Data links to the Road Asset Database
Vehicle fleet characteristics
Work standards reflecting management policies, standards
Unit costs for works and user operations
Model configuration data
Reliable local model calibrations
Links to query, presentation and reporting tools