Asset Lifecycle Servitization: The new business revenue model for the construction sector

More and more asset owners are seeking to outsource maintenance for their assets over the whole lifecycle. Service or facilities management contracts are often offered by construction companies for assets they, or another, contractor has built.

Facing diminishing margins for capital projects, COVID pandemic disruptions and sporadic revenues, this new Servitization business model throws construction firms a lifeline. However, “contracting for outcomes” arrangements require a complete change in mindset: construction firms must now manage complex, but potentially lucrative, performance-based contracts and accurately model whole-life costs.

Read More