Risk under performance-based contracting in the UK construction sector

As a method of procuring the services of the built environment, performance-based contracting (PBC) seeks to link the building supplier to longer term commitments than has traditionally been the case in the construction sector. By rewarding the building producer according to the way that building or structure delivers the users' requirements, rather than according to a list of assembled parts, a number of additional risks are taken by contractors, including fitness for purpose, costs and briefing. The extent to which contractors recognize these risks and their methods of dealing with them vary considerably and are influenced by their attitudes towards risk. As the risks associated with PBC are seen as large, uninsurable, and vulnerable to changing client requirements, the majority of respondents would reject the use of PBC as a method of contracting. Nevertheless, PBC may be used under particular conditions, where rewards are deemed sufficient to compensate for the additional risk to the contractor of undertaking work on the basis of a stream of payments paid over the life of a structure depending on the satisfactory performance of the building or as part of a private finance initiative.

Evaluating the use of an urban consolidation centre and electric vehicles in central London

The paper focuses on the role that can be played by urban consolidation centres (UCCs) in reducing freight traffic and its environmental impacts in towns and cities. It is based on the before and after evaluation of a trial led by a major stationery and office supplies company in which urban freight deliveries in central London made from a depot in the suburbs using diesel vehicles were replaced with the use of an urban micro-consolidation centre located in the delivery area together with the use of electrically-assisted cargo tricycles and electric vans. The results show that the total distance travelled and the CO2eq emissions per parcel delivered fell by 20% and 54% respectively as a result of this delivery system. However, the evaluation has also indicated that the distance travelled per parcel rose substantially in the City of London delivery area as a result of the electric vehicles having far smaller load limits in both weight and volume compared with diesel vans. But, at the same time, the trial system was able to virtually eliminate CO2eq emissions per parcel delivered in the City of London. The trial proved successful from the company's perspective in transport, environmental and financial terms. The company therefore decided to continue the operation beyond the end of the trial with it being officially launched during 2010.