Outcome-Based Contracting for Lift Maintenance Contracts
The manpower outlook in the lift industry remains challenging amidst an ageing workforce. Remote Monitoring and Diagnostics (RM&D) solutions offers lift owners and lift companies opportunities to transition towards manpower-lean maintenance for productivity and costs savings over the long term.
However, engagements with industry have shown that the ‘traditional’ contracting model, based on the number of maintenance visits by the servicing contractors, present as an obstacle to parties to adopt RM&D solutions. Contracting models would need to pivot away from headcount-based and frequency-based to one that focuses on outcomes so as to reap the full benefits of RM&D adoption.
This Guide aims to provide service buyers and lift service providers with information in preparing the appropriate specifications for an outcome-based contract (OBC). You will find examples, clauses and templates that can be adapted in the tender requirements. It also suggests indicators for measuring performance and outcomes, as well as good practices that will allow the benefits of RM&D and OBC to be reaped.