AbstractThe road maintenance workload for transportation agencies increases every year. To maintain roads effectively, one contracting method state Departments of Transportation (DOTs) use to outsource is performance-based contracting (PBC). However, state DOTs are having problems identifying the execution issues with PBCs. This study prepares a framework for execution of the PBC method for chip seals (one of the highest expenditure activities for most states), to help guide state engineers to effectively execute the contracts. This framework was developed by conducting a Delphi study with state engineers. The study found five reasons for selecting PBC chip seal; five performance measures; a range of incentives/disincentives to be provided; and the method of PBC team training. For the procurement phase, this study identified the five personnel to be included in the procurement team, as well as the contract duration and best contractor selection method. Similarly, for the contract implementation phase, the five key personnel to be included in the project implementation team, the best way to manage traffic, the timeliness to fix defects, responsibility, the frequency to complete quality assurance work, and the mobilization payment method were identified. As the primary contribution, this paper identified the critical factors of PBC contract life-cycle phases and developed a framework that will provide an easy-to-follow guide to execute PBC contracts to state DOTs. This study has a limitation with its sample size in the Delphi study due to a lack of experience of state DOTs in using the PBC method. The authors recommend conducting similar studies for other activities (cleaning, culvert cleaning, etc.) with larger sample sizes.