Construction Innovation: Information, Process, Management

Purpose – The purpose of this paper is to show how performance-based contracting functions as an enabler of service innovation by maintenance contractors.

Design/methodology/approach – A postal survey of medium-sized maintenance employers was carried out. The questionnaire and findings were mapped and analysed combining existing models of service innovation and service quality.

Findings – As a consequence of the survey, performance-based contracting maintenance companies implement innovations in their service concept, client interface and service delivery system to guarantee the quality of their services. The maintenance contractors have launched new, improved or better competing services for their own organisation. Existing services are implemented in a new environment incorporating small incremental innovations.

Research limitations/implications – Maintenance companies do not solely address all business innovations as consequences of performance-based contracting. Performance-based contracting of, for example, building services may by the different nature of the maintenance strategies and activities lead to somewhat other outcomes.

Originality/value – There is very little literature on maintenance contractors as service providers and service innovators. This paper provides insights in innovations by maintenance contractors as well as the needed additional knowledge and competences of the contractors acting as maintenance-engineering consultants.