Below is the uncorrected machine-read text of this chapter, intended to provide our own search engines and external engines with highly rich, chapter-representative searchable text of each book. Because it is UNCORRECTED material, please consider the following text as a useful but insufficient proxy for the authoritative book pages.
xiv An equally important component of an overall implementation strategyâ specification developmentâis addressed in detail in Framework for Developing Performance Specifications: Guide for Specification Writers. Readers are encouraged to review that companion document for further information on how performance specifications can be developed and tailored to help achieve project goals.
1 EXECUTIVE SUMMARY This volume, Strategies for Implementing Performance Specifi cations: Guide for Exec- utives and Project Managers, provides a broad overview of the benefi ts and challenges associated with implementing performance specifi cations. The recommendations ad- dress the various cultural, organizational, and legal considerations that can affect the successful implementation of performance specifi cations. Project selection criteria and procurement and project delivery options are also addressed. The anticipated benefi ts of these guidelines are ⢠Improved decision making leading to more effective implementation of perfor- mance specifi cations; ⢠Improved understanding of the required changes in contract administration asso- ciated with performance specifi cations and alternative project delivery methods; and ⢠Smoother transition to a more performance-oriented business model. In general, performance specifi cations have been demonstrated to be a power- ful tool to motivate and empower the industry to improve project performance or value. One of the most signifi cant benefi ts reported in the literature and confi rmed by discussions with industry experts is the ability of performance specifi cations to pro- mote construction innovation. The ability to innovate can provide contractors with a competitive advantage, which can ultimately lead to cost savings and greater returns. Benefi ts, or value added, from using performance specifi cations are more likely to be realized if the contractor becomes involved in a project early and assumes more responsibility for performance. This value added is contingent on owners selecting appro priate projects and defi ning key performance criteria and measures that align with project objectives. Value is also affected by the duration of the contractorâs responsibility for performance.
2STRATEGIES FOR IMPLEMENTING PERFORMANCE SPECIFICATIONS: GUIDE FOR EXECUTIVES AND PROJECT MANAGERS Performance specifications will not immediately emerge as a viable alternative to traditional method specifications. Agencies and industry may find it easier to manage the changes in business practices required for performance specifications in steps or increments. The following guidelines have been developed to help agencies and industry with this transition. The key elements outlined in these guidelines include the following: Organizational considerations. Agencies should communicate to internal agency staff the need for and advantages of transitioning to performance specifications and should develop an action plan for implementing performance specifications. The plan could include establishing a dedicated cross-functional internal team, developing criteria for screening and selecting projects, identifying changes in roles and responsi- bilities and standard administrative procedures, providing internal training, develop- ing sample specifications, conducting trial projects, and evaluating lessons-learned. Industry considerations. Agencies should engage industry early to highlight changes in roles, responsibilities, risks, and rewards related to performance specifi- cations. Responsibilities may include design, construction quality management, and postconstruction performance (contingent on contracting method). Risks may include managing subcontractor and supplier relationships to meet performance requirements and providing bonds, insurance, or other guarantees of performance for long-term performance obligations. Rewards may include the ability to use innovative methods, materials, or technology or to earn incentives for improved performance. Collaborat- ing with industry in the development of performance specifications will help balance the risks and lead to smoother implementation. Deciding to use performance specifications. This guide includes a two-part deci- sion process to determine whether performance specifications are appropriate for a given project. In the first step, the project selection process considers project character- istics, goals, and objectives; further, it looks at whether the objectives can be defined in terms of desired performance outcomes that can be measured and tested in the finished product or measured over a specified operational period. The decision will determine whether the project is a good candidate for method or performance specifications for specific project objectives (e.g., time, quality, service life). The second step evaluates whether the project is a candidate for alternative delivery methods that allow industry greater flexibility to achieve performance outcomes and that transfer more responsibil- ity to industry for performance. Project delivery options range from traditional design- bid-build to design-build-operate-maintain. Project delivery and procurement considerations. The decision to use performance specifications in conjunction with a project delivery system requires the agency to consider both the procurement process and how performance specifications will be implemented to meet performance objectives. The choice of delivery approach will result in different procurement approaches, performance parameters, and levels of performance risk assumed by industry. This guide considers how performance speci- fications will vary with project delivery method; it presents various alternatives to the traditional procurement process that align with project objectives and addresses how payment adjustment strategies can be used to motivate contractors to improve quality and performance.
