Performance-Based Maintenance of Public Facilities: Principles and Implementation in Courthouses

Abstract

The performance concept implies that the requirements of a building are defined according to the outcomes of the process rather than according to either the method of construction or maintenance activity. An innovative performance-based contract (PBC) for outsourcing maintenance may be very cost effective due to contract flexibility and reduced management costs. The objectives of the present research study were to develop and implement a framework for a maintenance sector PBC in a sample of 13 courthouse buildings in Israel. To monitor the results, six key performance indicators were adapted and were used both for model implementation and for comparison between performance-based and unit-price contracts. The research study demonstrated a consistent improvement in the performance of the facilities operating under PBC, as well as a 20–40% improvement in the performance-cost ratio. The framework proposed here can be modified for different public buildings, and the performance model could be expanded to consider various categories of performance and risk.