Maintenance flow index

The three influential parameters on the indexation mismatch described above are all relevant in large asphalt maintenance. The large impact on the cost, uncertainty in planning and volatile price levels make large asphalt maintenance very influential to the inflation correction mismatch. This portion of the cash flow of a DBFM project is therefore chosen as the subject of this research. 

The research shows that there are two kind of mismatches in inflation correction. The first mismatch is caused by imperfections of the index formula even when the cash flow behaves exactly as expected in a deterministic budget. At the moment, this mismatch is taken into account in DBFM projects. The second mismatch occurs when the cash flow deviates from its expected path. This deviation may occur in the price development or the timing or amount of expenditures. This second mismatch is not taken into account in the current DBFM projects. The research suggests the private party should take this into account in the tender bid, because it causes variations in the cash flow of a maintenance plan. 

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