ABSTRACT: Arterial roads of Montreal city, mostly constructed in 1950’s, are at an advanced state of deterioration and need major rehabilitation, upgrading, or even reconstruction. City of Montreal has allocated over $1.6 billion for road infrastructure in its 2012-2014 Three-year Capital Work Program. This investment can be wasted without proper infrastructure asset management system. The current practice of mill and asphalt overlay method by City of Montreal to rehabilitate the pavement is inadequate to repair potholes, fatigue and cracking. A performance-based pavement management system can predict the response and performance of pavement under actual dynamic traffic loads. As of today, implementations of Pavement Management Systems (PMS) are dedicated to achieve optimal levels of condition under budget restrictions. Other important objectives (e.g. mobility, safety, accessibility and social cost), along with investments to upgrade and expand the network, are normally left outside the modelling. This paper presents a conceptual framework of a dynamic PMS for the road network of Montreal City. This dynamic PMS will manage continuous aggregate behaviour of transportation system and can solve optimization problems of pavement management at any time interval.