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Enhancing Construction Quality Through Performance Contracts

This presentation explores the impact of performance contracts on construction quality. The research delves into different sectors, focusing on infrastructure and building, to analyze how responsibilities post-construction affect building practices and outcomes. The study investigates various contracts like PPP, BOT, and performance contracting, identifying if they lead to improved cost efficiency and operational quality. The aim is to understand the influence of contractual frameworks on construction practices and outcomes.

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Enhancing Construction Quality Through Performance Contracts

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  1. Performance contracts and construction qualityLena BorgDep. of Real Estate & Construction Management

  2. The outline of today's presentation • Introduction • Part 1: Definitions and conceptual overview • Part 2: The infrastructure sector • Part 3: The building sector

  3. The background of the project • Incentive for “right” quality. • Swedish Agency for Public Management verifies: • Clients competence weak. • Some contracts have stronger forces to contribute to a qualitative and cost efficient work. • Swedish Agency for Public Management’s suggestion: • Purchase contracts with functionality demands, e.g. PPP, BOT or Performance contracting.

  4. The project • The research question: “Will a company build differently if they have they have the responsibility for the operate and maintenance part after construction are completed compared to a company that only has the responsibility for the construction part?” • Focus on contracts that has functionality as a main objective. • PPP, BOT, Performance contracting and other contracts that includes this main objective.

  5. Part 1: Definitions and a conceptual framework • New contracts and concepts are introduced, evaluated and discussed e.g. Performance contracting, PPP and BOT. • Lack of explicit definitions of the contracts and concepts. • Aim and Method: • Contribute to the understanding of the more or less new forms of contracts and concepts. • Literature review. • End up in four different categories • The literature in the field will be discusses on the bases of the categories.

  6. Part 2: The infrastructure sector • Cost efficiency can be achieved by contracts that contain: • Functionality demands. • Responsibility for the contractor to maintain and operate. • Does this mean that the decision making differs between those that only build and those that have the responsibility? • Aim and Method: • To see if the technical design differs between contracts purchased as e.g. PPP and Performance contracting compared to “traditional” contracts e.g. Construction contracts • Based on interviews of representatives from the infrastructure sector and will be used as a basis of a questionnaire.

  7. Part 3: The building sector • Aim and Method: • Examine the building sector and in particular the construction of multifamily houses. • To see if the technical design differs between actors that have different incentives. • Build operate and maintain (have everything in house). • Companies that only build and then sell. • Based on interviews of representatives from the building sector and will be used as a basis of a questionnaire.

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