1 Performance contracts and construction quality Lena Borg Dep. 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.