Over the past decade, there has been a movement in North America towards Performance Based Contracts (PBC). In PBCs, the client agency specifies defined minimum performance measures to be met or exceeded during the contract period. PBC operates through a continuing performance measurement and review systems against a set of minimum level of services (LOS). Therefore, performance measures in contract administration are fundamental to the successful usage of this type of contract. The paper presents a review of PBC focusing on performance measures. A review of the current state-of-the-practice is conducted to identify key performance measures employed by various agencies. In addition, a literature review of several road agencies in North America is conducted to evaluate the important physical attributes agencies are using as performance inputs to evaluate the overall condition of the road assets. Moreover, the study provides a review of performance specifications implemented by the Ministry of Transportation in Ontario (MTO) including Pavement with Warranty and Minimum Oversight Contracts. A monitoring framework of performance measures is presented. Finally, recommended performance measures for flexible, rigid pavements and granular shoulders are presented for the use in MTO's PBCs.