'Performance' specifications for improved productivity and better value

Abstract

This research examines how the use of 'performance' specifications could achieve higher productivity and better 'value' for owner and contractor. The inductive methodology identified that construction industry advisors were helpful in assisting the (public sector) owner in defining the owner's 'performance' requirements, period and price, and for all subsequent phases through to contract completion. 'Performance' requirements expressed in the owner's capability brief were used for tendering and contracting purposes, within a context of fixed period and price. This necessitated tenderers to focus solely on best 'value'. A 'performance' contract transferred design and construction risk to the marketplace and demanded competitive, innovative tenders. When compared to projects where method and/or material risks are carried by the owner, the 'performance' based project delivered improved productivity and better 'value' for both owner and contractor. © Springer-Verlag Berlin Heidelberg 2014.