PL EN


2009 | 13 | 3 | 205-217
Article title

Cost Savings from Performance-Based Maintenance Contracting

Authors
Content
Title variants
LT
Taupymas naudojant veiklos rezultatais pagrįstas priežiūros sutartis
Languages of publication
Abstracts
EN
New procurement approaches combined with performance-based building approaches should reduce costs, but empirical qualitative and quantitative studies are lacking. Performance-based maintenance contracts give maintenance suppliers incentives to improve their way of working. Innovative, cost-effective solutions that meet the performance criteria can be achieved, especially if the principle of whole-life costing is being adopted. Indirect cost savings are expected as well. It enables maintenance contractors to assume responsibility for certain activities for which they are better equipped to perform than their clients. A calculation model was developed that calculates the net present value of the direct (product) and indirect (transaction) costs at project level for a competitive maintenance tendering approach and for performance-based maintenance contracts. The findings show that performance-based maintenance contracts reduce both direct and indirect costs compared to a competitive tendering approach. Essential preconditions are an early supplier involvement and longer term contracts, giving opportunities for maintenance product and maintenance process improvements.
LT
Nauji pirkimo būdai, derinami su subalansuotos statybos būdais, turėtų mažinti išlaidas, tačiau trūksta empirinių kokybinių ir kiekybinių tyrimų. Veiklos rezultatais pagrįstos priežiūros sutartys skatina priežiūros paslaugas siūlančias bendroves tobulinti savo darbo būdus. Galimi novatoriški, taupūs sprendimai, tenkinantys rezultatyvios veiklos kriterijus, ypač taikant viso naudojimo laiko išlaidų (angl.whole-life costing) principą. Tikimasi sumažinti ir netiesiogines išlaidas. Priežiūrą atliekantiems rangovams tai leidžia prisiimti atsakomybę už tam tikrą veiklą, kuriai vykdyti jie turi daugiau priemonių nei jų klientai. Sukurtas skaičiavimo modelis, kurį taikant apskaičiuojama viso projekto tiesioginių (produktas) ir netiesioginių (sandoris) sąnaudų dabartinė grynoji vertė (NPV), kai vykdomas priežiūros darbų pirkimo konkursas ir kai sudaromos veiklos rezultatais pagrįstos priežiūros sutartys. Rezultatai rodo, kad, lyginant su pirkimo konkursais, veiklos rezultatais pagrįstos priežiūros sutartys mažina ir tiesiogines, ir netiesiogines išlaidas. Būtinos sąlygos - įtraukti į priežiūros vykdymą tiekėją ankstyvuosiuose etapuose ir sutartis sudaryti ilgesniam terminui, suteikiant galimybių tobulinti produktą ir priežiūros procesą.
Publisher
Year
Volume
13
Issue
3
Pages
205-217
Physical description
Contributors
author
  • OTB Research Institute for Housing, Urban and Mobility Studies, Delft University of Technology, PO Box 5030 2600 GA Delft, The Netherlands
References
  • Black, C., Akintoye, A. and Fitzgerald, E. (2000) An analysis of success factors and benefits of partnering in construction,International Journal of Project Management, 18(6), pp. 423-434.
  • Bresnen, M. and Marshall, N. (2000) Partnering in construction: a critical review of issues, problems and dilemmas,Construction Management and Economics, 18(2), pp. 229-237.
  • Gruneberg, S., Hughes, W. and Ancell, D. (2007) Risk under performance-based contracting in the UK construction sector,Construction Management and Economics, 25(7), pp. 691-699.
  • Hughes, W., Hillebrandt, P.M., Greenwood, D. and Kwawu, W. (2006)Procurement in the construction industry: the impact and cost of alternative market and supply processes, Taylor & Francis, London.
  • Lai, J.H.K., Yik, F.W.H. and Jones, P. (2006) Critical contractual issues of outsourced operation and maintenance service for commercial buildings,International Journal of Service Industry Management, 17(4), pp. 320-343.
  • Lai, J.H.K. and Yik, F.W.H. (2007) Monitoring building operation and maintenance contracts,Facilities, 25(5/6), pp. 238-251.
  • Lingard, H., Hughes, W.P. and Chinyio, E.A. (1998) The impact of the contractor selection method on transaction costs: a review,Journal of Construction Procurement, 4(2), pp. 89-102.
  • Lohtia, R., Brooks, C.M. and Krapfel, R.E. (1994) What constitutes a transaction-specific asset? An examination of the dimensions and types,Journal of Business Research, 30(3), pp. 261-270.
  • Meacham, B., Bowen, R., Traw, J. and Moore, A. (2005) Performance-based building regulation: current situation and future needs,Building Research & Information, 33(2), pp. 91-106.
  • Nieboer, N. and Gruis, V. (2004) The Netherlands. In: Gruis, V. and Nieboer, N. (eds.)Asset Management in the Social Rented Sector: Policy and Practice in Europe and Australia, Springer/Kluwer Academic Publishers, Dordrecht.
  • Pasquire, C. and Swaffield, L. (2002) Life-cycle/Whole-life costing. In: Kelly, J., Morledge, R. and Wilkinson, S. (eds.)Best value in construction, Blackwell Sciences, Oxford.
  • Priemus, H. (2001) Social housing as a transitional tenure: reflection on the Netherlands social housing memorandum 2000-2010,Housing Studies, 16(2), pp. 243-256.
  • Saad, M., Jones, M. and James, P. (2002) A review of the process towards the adoption of supply chain management (SCM) relationships in construction,European Journal of Purchasing & Supply Management, 8(3), pp. 173-183.
  • Straub, A. (2007) Performance-based maintenance partnering: a promising concept,Journal of Facilities Management, 5(2), pp. 129-142.
  • Straub, A. and Van Mossel, J.H. (2007) Contractor selection for performance-based maintenance partnerships,International Journal of Strategic Property Management, 11(2), pp. 65-76.
  • Trimmer, G. and Kidston, N. (2003)Assessing procurement, Trimmer CS and The Housing Corporation, London.
  • Van Mossel, J.H. (2008)The purchasing of maintenance service delivery in the Dutch social housing sector. Optimising commodity strategies for delivering maintenance services to tenants, IOS Press, Amsterdam.
  • Waara, F. and Bröchner, J. (2006) Price and nonprice criteria for contractor selection,Journal of Construction Engineering and Management-ASCE, 123(8), pp. 797-804.
  • Williamson, O.E. (1996)The mechanisms of governance, Oxford University Press, New York.
  • Wood, G. (2006) Addressing the economic realities of partnering arrangements within the UK construction industry. In: Mc Dermott, P. and Khalfan, M.M.A. (eds.)Proceedings of the Symposium on Sustainability and Value through Construction Procurement 2006, University of Salford, Salford, pp. 614-625.
Document Type
Publication order reference
YADDA identifier
bwmeta1.element.cejsh-article-doi-10-3846-1648-715X-2009-13-205-217
JavaScript is turned off in your web browser. Turn it on to take full advantage of this site, then refresh the page.