Best-Value Procurement in Design-Bid-Build Construction Projects: Empirical Analysis of Selection Outcomes

2018 ◽  
Vol 144 (10) ◽  
pp. 04018093 ◽  
Author(s):  
Phuong H. D. Nguyen ◽  
Brian C. Lines ◽  
Dai Q. Tran
Author(s):  
Azeanita Suratkon ◽  
◽  
Riduan Yunus ◽  
Rafikullah Deraman ◽  
◽  
...  

Design-Bid-Build (DBB) or commonly known as Traditional method is the earliest and most prevalent procurement method used in Malaysian construction industry. Design-Build (DB) and Construction Management (CM) procurement methods were later introduced in Malaysia as an endeavour to satisfy and accommodate the increase in project complexity and the need for avoiding drawbacks of the Traditional methods. Each procurement method has different nature and possesses certain characteristics. Therefore, this study was carried out to ascertain and compare the characteristics of these three procurement methods that are implemented in building construction projects in Malaysia. A questionnaire survey was conducted among architects, consultants, contractors and owners or developers to elicit their feedback on the characteristics which were categorised into time, cost, quality, complexity and flexibility, degree of involvement and responsibility allocation and technical expertise. The findings indicated that only DB method almost fulfils all the characteristics under the six categories, whereas, DBB methods garnered agreement only for certain characteristics under time, cost, complexity and flexibility and technical expertise categories. Meanwhile, the only CM method’s characteristics that satisfy agreement from the respondents are the often used of fast track approach and lack of certainty in price. This study concludes that when a procurement method is adopted for a construction project, not all the features or characteristics will turn out as expected. There are many factors that contribute and are influential on the success in procurement methods that are worth for further investigation.


2012 ◽  
Vol 18 (2) ◽  
pp. 184-196 ◽  
Author(s):  
Godwin Iroroakpo Idoro

This study compares the levels of planning and the outcome of projects procured by direct labour and traditional contract procurement options. For this comparison, a survey of 130 projects was carried out. Data were collected using structured questionnaires and analysed using percentage, mean and t-test. The study discovers that whereas the levels of conception and overall planning done in projects procured by the two options are the same, the levels of design and construction planning done in DBB and DL projects differ. The study also discovers that the time-overruns of projects procured by the two methods differ but their cost-overruns are the same. The study concludes that projects procured by DBB and DL options differ in planning and time-overrun and suggests improved planning at the design stage when DL option is adopted and improved planning at the construction stage when DBB option is adopted. Santrauka Šiame darbe lyginami planavimo lygiai ir projektų rezultatai, kai naudojamas tiesioginis darbas ir taikomas tradicinis pirkimų metodas (projektavimas–konkursas–statyba; angl. Design-Bid-Build, D-B-B). Palyginimui atlikta 130 projektų apklausa. Duomenys surinkti naudojant tam tikros struktūros anketas ir išanalizuoti pagal procentus, vidurkius ir t testą. Atliekant tyrimą nustatyta, kad abiem paslaugų pirkimo atvejais projektų sumanymo etapas ir bendras planavimas yra vienodo lygio, tačiau tradicinį pirkimų metodą pasirinkusiuose projektuose projektavimo ir statybų planavimo etapų lygis skiriasi nuo tiesioginį darbą pasirinkusių projektų etapų lygio. Atliekant tyrimą paaiškėjo, kad abiem atvejais laikas viršijimas skirtingai, tačiau sąnaudos viršijamos vienodai. Daroma išvada, kad projektams taikant skirtingus pirkimo būdus (tradicinį metodą arba tiesioginio darbo variantą) skiriasi planavimas ir vėlavimas; taip pat siūloma, kaip pagerinti projektavimo etapo planavimą, kai naudojamas tiesioginio darbo variantas, ir kaip pagerinti statybų etapo planavimą, kai taikomas tradicinis metodas.


2011 ◽  
Vol 71-78 ◽  
pp. 160-166
Author(s):  
Wen Hao Leu ◽  
Andrew S Chang

Adopting the BOT (build-operate-transfer) delivery method for construction projects has brought opportunities for desired performance. Studies have investigated many issues of BOT projects such as concessionaire selection criteria or risk factors, but the soft issue of the status and psychology change of project participants from traditional DBB (design-bid-build) method is not investigated. This research explored the status and psychology of DBB and BOT project participants and drew implication for performance. By using the case study method, this study selected ten projects in which five from DBB and five from BOT methods; interviewed 36 owners, designers, constructors and other participants in 14 times; and analyzed and compared their design and construction work interaction, designer and constructor status, and owner and concessionaire psychology. It is found that for DBB civil projects performance would be stable because of completed design, more cautious owner, and respected designer that is good to performance. For BOT civil projects, performance would vary and the designer and constructor can better cooperate. The flexibility and vitality brought by the BOT mechanism should be better used to create better performance.


Author(s):  
Jeroen Van de Rijt ◽  
Sicco Santema

More than 15 years ago Dean Kashiwagi created a process called BVP/PIPS (Best Value Procurement/Performance Information Procurement System) at Arizona State University. PIPS is a procurement method that aims to select the most suitable vendor for the job, to spur this vendor on to highest performance, and to reduce the client’s management and control tasks (Kashiwagi, 2009b). Kashiwagi developed the method for several years with the objective of improving the procurement and management of construction projects by reducing risk in selecting the top performer. The method (herein BV approach) has a number of steps, each built around a specific "filter”, which focuses on a different element to separate high and low performers. The early phase of the adoption of the process in the Netherlands has been described by Van de Rijt and Witteveen (2011) in the special issue of the Journal for the Advancement of Performance Information and Value. In this paper an update is given and future developments are described. The paper covers the BV approach, a brief history of PIPS in the Netherlands, technology adoption theory, adoption and adaptation of the technology and future developments.


Author(s):  
Kenneth Sullivan ◽  
John Savicky ◽  
Brad Carey

The City of Peoria is Arizona’s ninth largest city. It covers nearly 178 square miles and is home to over 153,000 residents. The projected 10 year growth of the City is estimated to be over 204,000, which has prompted a significant expansion of the City’s municipal services and facilities. In an attempt to efficiently meet the demands of the projected growth, the City of Peoria partnered with the Performance Based Studies Research Group out of Arizona State University in 2004. The objective of the partnership was to test and implement a best value structure within the City’s construction program, specifically as applicable to capital projects. This paper presents a five year summary of the test implementation results, the evolution of the best value structure within the city, project performance, service expansion to include non-construction projects, and lessons learned from the research. The research effort has included $385,691,802 in total projects awarded and implemented under the best value structure, with documented performance increases in cost metrics, schedule metrics, and customer satisfaction.


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