Performance Specifications

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Performance Specifications is a document specifying operational requirements of a component or installation. In other words, a performance specification informs the contractor what the final installed product capabilities are.

In this case the buyer simply explains problems the product should solve and the supplier provides such. In essence this is less rigid than conformance specification.

Examples of what typical specifications may be like include;

Required quality levelsRequired safety levels and controlsCompared to conformance specification, performance specification has a number of ADVANTAGES such as;

The specifications are easier to draftThe efficacy of specifications does not depend on technical knowledge of the buyerSupplier can use their creativity to develop the productsGreater share of specification risk is borne by the supplier.When is it advisable to use performance specification?

When the supplier has more technical or relevant skills than that of the buyerWhen technology is constantly changing in the suppliers industries in which case it will be hard to specify methodologiesWhen there is a clear criterion for evaluating alternative solutions suggested by the suppliers competing for the contractWhen there is enough time to assess the functionality of the product as proposed.

Source: http://zeritenetwork.com/typesofspecificationswhencontracting/