The construction industry is beginning to adopt a model inspired by the service economy: materials are no longer purchased, but “used.”

The concept involves paying for the performance of a material over its lifecycle. Instead of buying concrete or steel, the beneficiary pays for durability, strength, or energy efficiency.

This model is supported by digitalization. Sensors embedded in materials enable real-time performance monitoring. The collected data is used for predictive maintenance and optimization.

Examples are already emerging in practice. Companies in Europe offer contracts for façades or insulation systems, where payment is linked to the building’s energy performance. In the infrastructure sector, some projects include performance-based contracts, where the supplier is responsible for the durability of the material.

The advantage is risk transfer. The beneficiary no longer bears the full cost of degradation, while the supplier is incentivized to deliver higher-quality materials.

A Deloitte report indicates that service-based models can reduce total operating costs by 10–20% and extend the lifespan of constructions.

Challenges are related to contracts and standardization. Performance evaluation and legal responsibility are more complex than in the traditional model.

Materials as a service transform construction from a static process into a dynamic system, where value is generated over time, not at the moment of purchase.

(Photo: Magnific)