Dutch performance-based approach to building regulations and public procurement

Along with the publication of the first set of performance-based regulations in 1991, the Netherlands Governmental Building Agency (GBA) introduced innovative performance-based procurement and tendering. A structurally different performance-based regulation document was published in 2001. A continuous research effort paralleled these developments, leading recently to the Policy Document on Building Regulations 2002-06 and the approval of a new national programme called Process and System Innovation in Building (PSIB). Actual and future developments are strongly influenced by the turmoil following the recent disclosure of the wide use of outlawed settlement of calculation cost and project 'rights' by the Dutch contractors. In addition, some blatant cases of fraudulent contract administration were revealed. By the end of 2003, key stakeholders within both the government and industry were in agreement that there was a need for radical change of the economic and social performance of the building and construction sector. The PSIB programme, in combination with a strong deregulation initiative, will be the major driver for the application of the performance approach in the sector.