This report aims to explore and explain Performance / Output Based Specifications (POBS) for Performance Based Contracting, reporting successful practices and outlining benefits and potential challenges.
The report explains the concept of Performance Based Contracting, looks into how this has been developed throughout time and reports a few successful best practices. Among these, Guy's and St Thomas' Hospital Trust procuring an energy performance contract; the Danish Municipality of Hedensted procuring heating and ventilation solutions with the aim to reduce both CO2 emissions and resource consumption.
The report also aim to explore the key steps necessary in order to execute a POBS based tender, including a 12 step checklist to follow and potential challenges for when using a POBS approach.