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.

Building Information Modelling in UK Construction Projects: A State of the Art Review

This paper aims to present a state-of-the-art review of the scope and practical implications of the Building Information Modelling (BIM) platform in the UK construction practice. Theoretical developments suggest that BIM is an integration of both product and process innovation, not just a disparate set of software tools. BIM provides effective collaboration, visual representation and data management, which enable the smooth flow of information throughout the project’s lifecycle. The most frequently reported benefits are related to Capital Cost (capex) and Operational costs (opex) and time savings. Key challenges, however, focus on the interoperability of software, capital installation costs, in-house experience, client preference and cultural issues within design teams and within the organisation. The paper concludes with a critical commentary on the changing roles and a process required to implement BIM in UK construction projects, and suggests areas for further research.