Performance-based Maintenance Contracts (PBMCs) are increasingly being used for roadway maintenance as an alternative to method-based specifications. However, this technique is still relatively new and several issues have not been adequately addressed in the literature. The paper provides a systematic process for developing quality assurance measures to be used within these contracts. The process addresses key issues, including the development of performance standards and targets, a method for monitoring the roadside performance, and a methodology for developing pay adjustment factors. The developed performance standards presented in the paper are easily measured and assigned grades of pass, fail, or not applicable. The required sample size is a function of the project characteristics, including performance variability along the project, required confidence level, and allowable tolerance. Finally, the pay adjustment curves are a function of the initial project LOS, the target LOS, and the maintenance cost to achieve the target LOS.