Performance-based Construction Contracting
Performance Based Contract Management principles for Construction have existed for decades, and include Integrated Project Delivery and Job Order Contacting.
Task Orders are focused upon and emphasize outcomes, repeatable processes, standardized information, and expected quality results rather than excessive management and control versus ‘ad-hoc’ traditional methods.
Contractor innovation in achieving stated outcomes is rewards.
Implementation includes:
- Written Operation/Execution Manuals
- Lont term Owner/Contractor relationships
- Common Terms, Definitions, and Standardized Costs Data in the form of a Unit Price Book (localized researched construction tasks – detailed descriptions, labor, equipment, and material granularity)
- Quality Assurance and Quality Control
- Key Performance Indicators
- Measurable performance standards and incentive-based vendor performance
- Joint work scope development
- Financial visibility and transparency
- Shared Risk/Reward
- Open approach leveraging best management practices and standards
- Supporting collaborative technology
- Mandatory and ongoing training
- Continuous Improvement
- Life-cycle versus first-cost perspective
via www.4BT.US