Performance Based Design: Why Aren’t We Leveraging It to Its Full Potential? Managing Opportunity, Safety, and Contract Risk-Video

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Video Summary

The presentation argues that subsurface engineering should manage uncertainty through the observational method and performance-based design, rather than relying solely on conservative, prescriptive specifications. Following Terzaghi and Peck, the method begins with available information, identifies assumptions and possible differences from actual conditions, monitors measurable performance during construction, and adjusts the design when needed—without compromising safety.<br /><br />Examples from Toronto showed how monitoring informed added ground support at St. Paul’s Church, enabled tieback reductions on a condominium project, and supported a station design that performed as well as an adjacent prescriptive design while costing substantially less. The speakers also described collaborative contracts using target prices, contingency pools, and shared savings or overruns to align owner, consultant, contractor, and subcontractor decisions.<br /><br />Successful implementation requires project-specific planning, clear action thresholds, reliable information, and agreed contingency measures. These safeguards can address conflicts of interest while helping teams respond to actual ground conditions and share both risks and opportunities.

Keywords

subsurface engineering

observational method

performance-based design

ground support monitoring

target price contracts

contingency management