"Long-Term Separate Maintenance Contracts Model" or what is now named as the "Bundling Model" is a maintenance contract model that is applied to a single maintenance activity that is secured for a long duration and usually is special, unique, or risk intensive task that takes advantage of the mass efficiency or so-called bundling. This is similar to the "activity based maintenance model", but the tendering is quite different and the maintenance activity encompasses many areas or regions and can even be for the entire country. Some examples could be a single contract for bridges, line marking, resurfacing, lighting, rest areas, and even ICT services across many areas, regions, or even the entire country. Finland is set to pilot this model in the near future for bridges, resurfacing, and already implemented for line marking contracts. The duration is estimated for 5 years, but it can vary from 3 to over 5 years. The tendering can be quite complicated and probably will be for a lump sum contract. Risks will be an extremely important part especially for bridges and resurfacing portions. In USA, there are 10 year agreements for the "rest areas", and this seems to have satisfactory results.
This model is quite new and there is insufficient data to determine any conclusions and results, but there is much interest. The bundling effect is what should provide an incentive for efficiency and hopefully lower costs at a better service level. It was especially intended or hoped to uncover long-term pavement warranty contracts, but these have not gone forward yet. Apparently the risks are so severe and extensive that it has not progressed as road authorities would have desired. This has a potential to limit the market and may cause concerns in the supply chain.
Finland and MODOT (not in study) in the USA are the countries testing this model.