For our latest blog post, we begin with a brief history of what is known as Performance-Base contracting – the founding principle behind the functioning of Premier Facility Solutions – before delving into its format and benefits.
Introduced around WWII, Performance-Base contracting was the solution to overspending on inefficient materials; the contractors themselves were then free to work out the actual costs, resulting in greater relevancy between materials and price. Disappearing for a period during the mid-20th Century in favor of the markets overseas, Performance-Based contracting was then reintroduced by former President Clinton in the late 90s – and here is where Premier Facility Solutions comes into the picture.
In the year 2000, President of PFS John M Moran became the first consultant to use Performance-Base programs, specifically in regard to maintenance contracts with universities and venues. Immediately, he was struck by how the costs were lowered and the relationships were stronger – a direct result of giving contractors the freedom in arriving at an exceptional product. Encouraged by his rapid success, President Moran trademarked several of his Performance-Based programs and established a Flagship Account in 2004.
At this point, you may be asking, “What exactly is a Performance-Based contract comprised of? In what ways is it successful?”
The answer to that begins with the initial assembling of the contract: the first step is to arrange all of a facility’s space into subcategories, with a critical need for accuracy of space, surface detail, and density. It is also crucial to identify any barriers, such as a lack of elevators, or the traffic patterns of the occupants. The second step is to determine what the client’s tolerances are, and where they currently feel they stand from a quality perspective. Once this information is gathered, the client can be given a standard by which the program will be developed.
Next we take into account the structure of the contract, implementing Moran’s triangular relationship branded, The Trilogy, which is unique to this industry.The Trilogy allows for a three-party partnership between the Client, Contractor, and the Consultant – the latter of which is Moran himself, supporting the former two as an Advocate, delivering high-end technical expertise in both service processes and Administrative Management.
Being able to have an open communication between all three parties helps to eliminate normal friction that can occur between the customer and service provider. In this Trilogy design, Moran, with his 40+ years of experience, acts as a neutral partner, cementing a long-term contract relationship, complete with transparency and little-to-no conflict or misrepresentation of standards.
Finally we look at how this design benefits both the contractor and the client.
First, the contractor benefits by having an extra set of eyes at the site: consultant Moran, who can give suggestions on new ways to improve performance and productivity. This eases the conversation between contractor and service provider, allowing for more direct and coherent communication.
Then, the client receives an independent assessment that measures their outcome and contract – this results in a lower budget and higher, more stable quality. The client also benefits from the monitoring process, Performance-Q-Based™, which is customized specifically to every client. There are twenty-four different options to how a building can be monitored, allowing for increased precision to the client’s needs. The client forms a strong relationship with the contractor and consultant, resulting in efficient work that meets expectations. Historically client administration has been overwhelmed in communicating and monitoring traditional contract specifications; Moran’s process and partnership relieves Administration of tedious operation conflicts and subjective measurements of service delivery, allowing them to focus on more pressing and creative initiatives.
If you’re wondering how successful Moran and Premier Facility Solutions has been, the answer is, “very”: over the past fourteen years, PFS has had twenty-six clients who have never lost a contracting-provider service. The relationship that has developed is one associated with brand-loyalty, specifically due to quality and cost-effectiveness. Moran’s Performance-Base contracting system has worked out well for both him and his clients, included in whom are a number of prestigious universities and healthcare facilities in sixteen U.S. states – and his business is only continuing to grow.
Check back next week for a discussion on how the PFS Performance-Base contracting varies from other methods, and the benefits of Performance-Base contracting over those alternatives.