Performance-Based Maintenance Contracts (PBMC) for highways is gradually becoming an appealing contractual mechanism for transferring the maintenance activities, traditionally undertaken by the public sector, to private entities. Amplified financial pressures on governments, demands for improved service levels, and the operational efficiency offered by private entities, all create a strong business case for PBMC. This book introduces an ?Integrated Highway Asset Management System?, which extends the standard functionality of traditional pavement management systems to cover specific contractual requirements of PBMC. The system is designed to analyse both network-level and project-level asset management decisions. Defect-specific pavement deterioration models are developed using multivariate regression. Stochastic network-level deterioration models are developed using markov-chains. Life cycle costing models are developed to cover specific financial obligations in PBMC such as; penalties & incentives, in addition to traditional M&R expenditures. Optimization modules are used to trade-off various decision scenarios that are beneficial to both maintenance contractors and road agencies.