Why Traditional Models Keep Failing
Here’s the uncomfortable truth: construction projects often operate like a relay race where every runner is sprinting in a different direction. Architects, engineers, contractors—they all work hard but rarely in sync. The result? Priorities clash, communication breaks down, and inefficiencies stack up.
Let’s talk about metrics for a second. The industry still relies on outdated KPIs: Was the concrete poured on time? Did the materials arrive on-site? Sure, these milestones might tick boxes, but they don’t tell you if the project succeeded. A building can hit every milestone and still end up over budget, months late, or riddled with costly rework (rework alone eats up about 5% of project budgets on average—rising to 20% in extreme cases).
Here’s a parallel: in software development, rework—known as code churn—makes up 26% of pre-release code. But the difference? Software teams use Agile frameworks, which emphasize iterative reviews and stakeholder alignment to catch issues early. In construction, we often don’t catch those issues until it’s too late (case in point: Heathrow Terminal 5, where rework caused a 70% cost overrun and a 20-month delay).
Another issue? Communication—or lack of it. Poor communication is blamed for one-third of project failures. Teams work in silos, reacting to problems instead of planning for them. Even advanced tools like BIM (Building Information Modeling) are often deployed in isolation, disconnected from the bigger picture. That’s the heart of the problem: everything’s disconnected.
What Is Outcome as a Service?
So, what does OaaS actually mean? At its core, OaaS shifts the focus from completing tasks to delivering results that matter—things like cost predictability, timeline adherence, and error reduction. It’s about setting a clear target and making sure every tool, process, and person involved is working toward it.
Think about this: in tech, software providers used to sell licenses. Now, they sell outcomes—uptime, performance, and user satisfaction. In aerospace, SpaceX doesn’t just launch rockets; they deliver payloads into orbit with a 99.3% success rate (out of 134 Falcon 9 launches, only one has failed). These industries have moved from what’s done to what’s achieved. Construction needs to catch up.
Imagine if construction projects didn’t revolve around tracking materials or tasks but instead focused on the final outcome—like delivering a building under budget, on time, and with zero rework. That’s the promise of OaaS: everyone aligned to the same measurable goal.
How OaaS Works in Construction
Outcome as a Service (OaaS) isn’t just a buzzword. It’s a practical, measurable way to ensure construction projects deliver exactly what they promise. It moves the focus from tasks and milestones—things like how many panels are installed or whether the concrete was poured on time—to something far more important: did the project achieve what it set out to?
Here’s how OaaS transforms the way construction works:
1. Redefining KPIs That Actually Matter
Let’s start with the basics. Traditional construction KPIs focus on outputs: How many tasks were completed? Did materials arrive on schedule? But these metrics don’t tell you if a project is truly successful. A building can hit every milestone and still overshoot its budget or fail to meet energy efficiency goals.
OaaS flips this entirely. Instead of asking, “What have we done?” it asks, “What have we achieved?” For example, rather than just tracking materials delivered, an OaaS-driven project might measure whether all materials were delivered on time, with zero defects, and with no downstream rework (rework, by the way, eats up 5-20% of construction budgets).
Imagine going beyond project completion to measure success after handover. Did the building reduce operational energy costs by 25% as planned? Did the project hit its lifecycle carbon reduction target? These are the kinds of measurable outcomes OaaS prioritizes—and they’re the ones that drive real value for stakeholders.
2. Tools That Work for the Outcome
The construction industry is loaded with incredible tools: BIM, IoT, prefabrication, robotics—you name it. But most projects don’t use these tools in a cohesive way. BIM handles design, IoT tracks site activity, and prefabrication speeds up construction, but they rarely work toward the same measurable outcome.
With OaaS, these tools stop operating in silos. Take modular construction as an example. Prefabrication already reduces on-site work by up to 30%, but under OaaS, it would also feed into broader outcomes, like reducing waste by 25% or cutting material defects. IoT sensors on those prefabricated components could monitor their journey from factory to site, tracking delays or damage in real time and ensuring they meet delivery KPIs.
Or consider BIM: it’s not just about designing more efficiently. Under OaaS, BIM becomes a dynamic tool for aligning stakeholders. For example, it could integrate real-time data from IoT sensors on-site, giving project managers instant insights into whether the project is meeting its KPIs for waste reduction or energy efficiency.
3. Aligning Stakeholders to Shared Goals
This is where OaaS becomes transformative. Construction projects often fail because stakeholders—owners, contractors, suppliers—have conflicting priorities. Owners want cost savings. Contractors focus on hitting schedules. Suppliers just want to move inventory. Everyone’s working hard, but they’re not always working together.
OaaS fixes this by tying everyone to the same measurable outcomes. If the goal is to reduce total costs by 10% while meeting sustainability targets like cutting waste by 30%, everyone is held accountable for those results. Contractors can’t compromise on quality to hit a deadline, and suppliers can’t prioritize volume over reliability. The focus shifts from individual wins to collective success.
Here’s a game-changer: dynamic contracts. Imagine agreements that adjust payments based on outcomes—like meeting waste reduction KPIs or avoiding delays. Blockchain-based smart contracts are already being tested in some projects to automate accountability. Under OaaS, this kind of innovation ensures every stakeholder delivers on their commitments without friction or finger-pointing.
Why OaaS Changes Everything
At its core, OaaS is about alignment. It aligns tools, teams, and stakeholders around outcomes that matter. It’s not about adding complexity—it’s about simplifying how success is measured and delivered. By turning abstract goals into actionable targets, OaaS ensures every project delivers real value—on time, within budget, and with measurable impact.
Sustainability is another area where OaaS shines. Renewable energy projects have measurable goals—like a 1 MW solar farm offsetting ~1,500 tons of CO₂ annually or wind farms achieving an 85% lifecycle carbon reduction. Construction can adopt similar measurable metrics, focusing on CO₂ reductions and waste diversion through green-certified designs. For instance, The Edge in Amsterdam reduced operational energy use by 70% and diverted 60% of waste. These are the kinds of outcomes OaaS can deliver.
Time to Rethink Success
For years, construction has measured success by outputs: tasks completed, schedules followed, and materials used. But let’s be real—those metrics have failed us. Outcome as a Service offers a way out: a model that prioritizes results over processes.
It’s not about working harder; it’s about working smarter. OaaS ensures every tool, process, and stakeholder is aligned toward achieving measurable, predictable outcomes. The choice for decision-makers is clear: keep struggling with outdated models or embrace a framework that will define the next era of construction.
Because at the end of the day, it’s not about how much you do. It’s about what you achieve.
