The Swedish civil engineering sector has problems with the rate of technology and knowledge development. It also has image problem when trying to attract students. The Swedish National Road Administration (SNRA) has addressed these issues by undertaking a number of demonstration road projects. One of these demonstration projects aimed at developing the performance concept in road construction. The road construction project was procured and produced and it is today open for traffic. The performance concept differs from traditional Swedish procurement mainly through the change from extensive technical specifications to demands on road functions. One assumption was that a higher degree of freedom for the contractor would lead to more innovative technical solutions. This paper aims to describe and draw conclusions regarding development of road construction based on the demonstration road project. Observers attended project meetings throughout the project, from design of the procurement documents to production. Interviews were made at different stages of the project with client, tenderer, consultants and contractor. The results from the follow-up indicate a rethinking of design in the tender process, new communication and decision behaviour in production and a changed focus towards finding solutions rather than finding faults. The overall conclusion is that the performance concept has a potential to develop construction in the civil engineering sector although with obstacles in the dissemination process to overcome.