PERFORMANCE CONTRACTING

1
PERFORMANCE CONTRACTING

• A SPLIT PERSONALITY CONTRACTORS PERSPECTIVE

2
KEY POINTS OF PERFORMANCE BASED CONTRACTING

• Means of promoting innovation
• Reallocates more risk to contractor
• Suggests using Best Value Award
• Performance goals should target
• Improving safety
• Reducing congestion due to construction
• Improving quality
• Improving user satisfaction

3
DIFFERENT ABILITIES REQUIRED FOR CONTRACTORS TO
SUCCEED

• Engineering resource (in house)
• Research capabilities or experience
• Sophisticated planning scheduling
• Financial bonding strength
• Staff to respond to Best Value RFP

4
CONCLUSIONS

• Performance Contracting can provide increased
  value in certain situations
• You need to be aware of the abilities of your
  contracting community
• It will probably reduce the number of bidders you
  get on a project