Performance specification is defined as the understanding of the needed functions. When specifying by performance, a lot of focus is directed to the end result and very little attention is given to the processes of acquiring those results. It is thusimperativethat the organization identifies the best fitting type of specification before selecting a supplier(Johnson, Lendeers& Flynn, 2010). This mode of specification has a number of advantages and disadvantages as well. One of the major advantages is derived from the ability of performance-based specifications to allow potential suppliers to demonstrate their expertise, inventiveness and resources during the bidding process. Since suppliers are not restricted to predetermined processes, it allows them to shift some of the risk to contractors and thus enabling them to provide the products and services that a lower cost than they otherwise would have (State of Texas, 2012).
As noted above, performance specification has a number of disadvantages too. One of the major disadvantages is that projects that can employ this type of specification are required to have an already established system or process in existence.This makes it difficult for startups and organizations that do not have already existing systems to employ this mode of specification(Johnson, Lendeers& Flynn, 2010). Furthermore, performance specification dictates that suppliers must comply with certain factors regardless of the quality and performance level of the proposed product.
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