scholarly journals The Research Model that Revolutionized the Dutch Construction Industry

2012 ◽  
Vol 4 (2) ◽  
pp. 133
Author(s):  
Dean Kashiwagi ◽  
Jacob Kashiwagi ◽  
Abraham Kashiwagi ◽  
Kenneth Sullivan
Keyword(s):  
Construction Industry ◽  
Measurement Theory ◽  
Research Model ◽  
Information Measurement ◽  
Leadership Model ◽  
Best Value ◽  
Traditional Research ◽  
Procurement System ◽  
And Control ◽  
Use Of Expertise

The Dutch construction industry is making a change from an owner controlled to a contractor-controlled environment. It is a movement from a top down culture (management, direction and control) to a bottom up culture (alignment and use of expertise). Owner decision making, management, direction and control are being replaced with a leadership model, which aligns and utilizes the expertise of the contractors. The changes in the Dutch construction industry validate a non-traditional research model, which used deductive logic and case studies involving dominant information and visionary industry participants, non-traditional concepts of Information Measurement Theory (IMT), the Construction Industry Structure (CIS) model and the best value Performance Information Procurement System (PIPS).

scholarly journals Best Value Procurement/Performance Information Procurement System Development

2011 ◽  
Vol 3 (1) ◽  
pp. 12 ◽  
Author(s):  
Dean Kashiwagi
Keyword(s):  
The Netherlands ◽  
System Development ◽  
Measurement Theory ◽  
State University ◽  
Arizona State University ◽  
Performance Information ◽  
Information Measurement ◽  
Best Value ◽  
Procurement System ◽  
And Control

Best Value Procurement/Performance Information Procurement System (BVP/PIPS) has been developed by Dean Kashiwagi and the Performance Based Studies Research Group (PBSRG) from 1991 - 2010. BVP/PIPS is a licensed technology from Arizona State University that includes a deductive logic called Information Measurement Theory (IMT), an industry structure model which shapes the PIPS functions, and a process and structure that transfers risk and control to expert vendors. The BVP/PIPS has gone through numerous stages: the performance information centered PIPS (1994-2001); the PIPS testing phase (2001-2005); and the implementation stage (2005-2009); and the theoretical refinement and standardization of BVP/PIPS technology (2010). BVP/PIPS was introduced into the Netherlands in 2005 by a large general contractor Heijmans, the Rijkeswaterstaat, and aggressively proliferated by Scenter and others. BVP/PIPS usage in the Netherlands is modified to fit within the European procurement law. However, the main advantage of PIPS is the IMT based philosophy of minimized management, direction, and control of expert vendors.

scholarly journals Introduction of the Best Value Approach in India

2013 ◽  
Vol 5 (2) ◽  
pp. 137
Author(s):  
Syed Nihas ◽  
Jacob Kashiwagi ◽  
Dean Kashiwagi
Keyword(s):  
Construction Industry ◽  
Research Group ◽  
Measurement Theory ◽  
Industry Structure ◽  
Performance Information ◽  
Information Measurement ◽  
Best Value ◽  
Procurement System

In September of 2013 the Performance Based Studies Research Group (PBSRG) made its first entry into India to introduce the Best Value approach. The purpose of the entry was to identify if the Best Value (BV) approach and technology could optimize the performance of the Indian Construction industry. This paper documents the results of the exploratory effort. In 2014, industry visionaries in coordination with the SJCE university group, will commence testing of the implementation of the licensed Best Value technology in India. The technology includes the Information Measurement Theory (IMT), the Performance Information Procurement System (PIPS) and the Construction Industry Structure (CIS).

scholarly journals Introducing Decision Free Solutions - A Generic, Systemic Approach to Minimize Risk by Avoiding Decision Making

2016 ◽  
Vol 8 (2) ◽  
pp. 102
Author(s):  
Jorn Verweij
Keyword(s):  
Decision Making ◽  
Measurement Theory ◽  
Systemic Approach ◽  
Risk Minimization ◽  
Minimization Method ◽  
Information Measurement ◽  
The Core ◽  
Best Value ◽  
Procurement System ◽  
Consistent Application

“Decision Free Solutions” (DFS) is a generic, systemic approach to minimize risk in achieving an aim by avoiding decision making. Applying DFS will benefit those who have an aim, and those who have expertise. DFS is based on Information Measurement Theory (IMT) and the Kashiwagi Solution Model (KSM), and is congruous with the Best Value Approach (BVA). Despite BVA being an approach aimed at utilizing expertise (and thereby minimizing risk), and not a procurement system, BVA and its applications are very much intertwined with procurement. This makes it challenging to apply BVA to other fields. Establish a generic, systemic approach to implement the technologies of IMT/KSM in any field. Analyzing existing BVA and IMT/KSM documentation, identify the logic and the principles by which expertise is utilized. Define a generic, systemic approach to minimize risk and demonstrate it by applying it to a field other than procurement. Avoiding all types of decision making was identified as the core principle to ensure the utilization of expertise. An approach consisting out of four steps (labelled DICE) and the consistent application of five principles (labelled TONNNO) has been proposed. The approach has been applied to the field of Lean. A generic and systemic approach to minimize risk by avoiding decision making has been introduced which can be applied in any field. It has been applied in Lean, where it addresses several of Lean’s weaknesses as perceived in practice and where it was demonstrated to reduce the risk of project failure. DFS can be considered a risk minimization method to which risk management is integral. DFS makes expertise matter.

scholarly journals Unique Factors of Best Value Procurement from the Perspective of Nigerian Construction Professionals

2020 ◽  
Vol 7 (2) ◽  
pp. 1-14
Author(s):  
Gumgaro Simon-Peter Buba ◽  
Razali Adul Hamid ◽  
Zuhaili Mohamad Ramly ◽  
Tchad Sharon Jatau ◽  
James David Jatau
Keyword(s):  
Construction Industry ◽  
Cost Effective ◽  
Best Interest ◽  
Best Value ◽  
Quality Of Products ◽  
Procurement System ◽  
Procurement Method ◽  
And Control ◽  
Poor Working Condition

The construction industry is vital to the economic development of any country. It has a major role in providing built infrastructures in an innovative and cost-effective way using an effective procurement approach. In contrast, the most widely used procurement method in Nigeria is the traditional procurement approach which is known for plaguing the industry with the poor working condition and poor performances thus, reducing the sustainability and quality of products and services. For this reason, there is a need for a procurement approach which utilises expertise to minimise the risk of non-performance and create a win-win environment for both client and contractors, while increasing transparency and add value to the project such like, the Best Value Procurement. Against the background, this paper aims to establish the perception of the Nigerian construction professionals on the unique factors of the Best Value Procurement. The paper outlines the following objectives: To identify the unique factors of the Best Value Procurement and, to establish the perception of the Nigerian construction professionals on the Best Value Procurement unique factors. Using a questionnaire survey, data was collected form 314 construction professionals involving Quantity Surveyors, Architects, Builders and Civil Engineers. Kruskal Wallis Test and mean score ranking was used for data analysis. The findings show that the professionals generally agree that the Best Value Procurement unique factors can bring about transparency, accountability, increase project performance and the contractor is the best to control risk and adds value to the project. This paper derives its significance from the need to stabilise the procurement system in Nigeria by transferring the risk and control to contractors who must act in the best interest of the client. 

scholarly journals A Procurement Method that Considers Innovation

2020 ◽  
Vol 7 (1) ◽  
pp. 11
Author(s):  
Jorn Verwey ◽  
Wim De Vries ◽  
Isaac Kashiwagi ◽  
Dean Kashiwagi
Keyword(s):  
Measurement Theory ◽  
Performance Information ◽  
Past Performance ◽  
Information Measurement ◽  
Best Value ◽  
Treatment Equipment ◽  
And Performance ◽  
Procurement System ◽  
Procurement Method

A challenge facing buyers in the delivery of innovative construction and facility services is to utilize expertise without increasing project risk. The traditional price-based Design-Bid-Build approach minimizes the utilization of expertise of expert construction vendors by using an owner driven specification. The non-traditional approaches such as design-build, construction management @ risk (CM@Risk), and integrated project delivery are more flexible but still have no methodology to minimize the risk caused by innovative practices. The Best Value Approach utilizing the Performance Information Procurement System (PIPS) and the Information Measurement Theory (IMT) has been tested for over 20 years with high customer satisfaction and performance. However, the use of past performance information still gave the perception of high risk when considering innovative concepts that have never been previously utilized. This research uses a case study of a hospital owner competing the risk of innovative systems with existing, proven systems. The research group had the opportunity to interject the Best Value Approach into the case study delivering the innovative service/equipment requirement, allowing them to see how the approach and created Best Value environment reacted to the expertise that uses innovation. The case study involves the delivery of cutting edge cancer technology, the proton cancer treatment equipment/system. Even though the delivered service is not standard construction, the delivery approach can be easily used in construction.

scholarly journals Use of Best Value Process for Inspection and Preventive Maintenance of Pumping Stations

2012 ◽  
Vol 4 (2) ◽  
pp. 195
Author(s):  
Jannie Koster-Robaard
Keyword(s):  
Preventive Maintenance ◽  
Professional Services ◽  
Lessons Learned ◽  
Performance Information ◽  
New Paradigm ◽  
Water Board ◽  
Best Value ◽  
Pumping Stations ◽  
Procurement System ◽  
And Control

The water board Velt en Vecht is a Best Value (BV) client who used the Performance Information Procurement System (PIPS) process to select professional services in 2012. The client had a procurement mission of integrity, transparency, objectivity, and non-discrimination that aligned them with the BV PIPS system. With a strategic plan of leadership instead of management and control, the water board is an example of a visionary owner that can be successful with BV PIPS. Lessons learned from the water board implementation of PIPS are that BV PIPS is a change of paradigm, even for a visionary owner. Both the owner who selects and the contractors who compete for the award must learn the new paradigm of minimized decision making, proactive planning, and risk management.

scholarly journals The Best Value Approach in the Netherlands: A Reflection on Past, Present and Future

2012 ◽  
Vol 4 (2) ◽  
pp. 147 ◽  
Author(s):  
Jeroen Van de Rijt ◽  
Sicco Santema
Keyword(s):  
The Netherlands ◽  
Construction Projects ◽  
State University ◽  
Performance Information ◽  
Adoption Theory ◽  
Future Developments ◽  
Best Value ◽  
History Of ◽  
Procurement System ◽  
And Control

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.

History and Topics of the Project Management

2013 ◽  
Vol 405-408 ◽  
pp. 3372-3375
Author(s):  
Hai Xie
Keyword(s):  
Project Management ◽  
Construction Industry ◽  
Time Management ◽  
Management Decision ◽  
Best Value ◽  
Different Types ◽  
Management Decision Making ◽  
And Control ◽  
Coordination And Control ◽  
Bidding Process

Project management is the overall planning, coordination, and control of a project from beginning to completion. Project management is aimed at meeting a clients requirement in order to produce a functionally and financially viable project. Project management is project management that applies to the construction sector. The construction industry is composed of five sectors: residential, commercial, civil, industrial, and environmental. A construction manager holds the same responsibilities and completes the same processes in each sector. All that separates a construction manager in one sector from one in another is the knowledge of the construction site. This may include different types of equipment, materials, subcontractors, and possibly locations. A contractor is assigned to a construction project once the design has been completed by the architect or is still in progress. This is done by going through a bidding process with different contractors. The contractor is selected by using one of the three selection methods: low-bid selection, best-value selection, or qualifications-based selection. A construction manager should have the ability to handle public safety, time management, decision making, mathematics, and human resources.

scholarly journals The Source of Degradation of the Construction Industry Performance

2012 ◽  
Vol 4 (2) ◽  
pp. 206 ◽  
Author(s):  
Dean Kashiwagi ◽  
Jacob Kashiwagi ◽  
Jake Smithwick ◽  
Isaac Kashiwagi ◽  
Abraham Kashiwagi
Keyword(s):  
Construction Industry ◽  
Test Results ◽  
Repeated Testing ◽  
Project Risk ◽  
Potential Accuracy ◽  
The Past ◽  
Deductive Logic ◽  
Best Value ◽  
Industry Performance ◽  
And Control

The construction industry performance has been analyzed for the past 20 years. There has been no simple answer to the source of the construction industry problems. In 1991, the Construction Industry Structure (CIS) was formulated, and identified that the price based environment was more inefficient than the best value environment. Over the past 18 years, the analysis of the CIS has led to the hypothesis that the price based sector is inefficient because the buyer controls it. The hypothesis has been tested through case studies, and test results show that the owner is the biggest source of project risk and deviations. The dominant information was formed through repeated testing by moving the control to the vendor, and documenting all sources of project deviation. The studies have shown that the use of decision making, management, direction and control of the contractor by the owner increases the project risk. Two longitudinal studies are used to confirm the potential accuracy of the deductive logic. Key words: contractor control, owner releases control, contractor defined scope.

scholarly journals Vietnam Construction Industry Performance Issues and Potential Solutions

2020 ◽  
Vol 9 (2) ◽  
pp. 7-20 ◽  
Author(s):  
Nguyen Le
Keyword(s):  
Construction Industry ◽  
Project Managers ◽  
Potential Solution ◽  
Financial Difficulties ◽  
Design Changes ◽  
Best Value ◽  
Industry Performance ◽  
Performance Issues ◽  
Key Aspects ◽  
Procurement System

This paper provides a literature review assessing the performance and issues of delivering construction services in the Vietnam Construction Industry (VCI). The research also explores a potential solution that could improve the performance of the VCI. The results show multiple non-performance issues that the VCI has experienced in the past 15 years, and presents a comparison between these issues and issues from other countries. The results reveal that the top 5 non-performance issues in the VCI include poor design services, frequent design changes, lack of skilled contractors, a lack of experienced project managers, and financial difficulties of owners. The comparison identifies that 87% of VCI issues were also experienced in other countries. Since the VCI has similar issues as other countries, the author propose that the VCI can improve construction performance by implementing successful methodologies from other countries. This paper investigates the Best Value Performance Information Procurement System (BV PIPS) as a potential solution because of two key aspects: (1) sufficient documentation of on time, on budget, and high customer satisfaction from this model, and (2) sufficient testing from other regions and countries to show similar improvement in construction performance.

Sign in / Sign up

Export Citation Format

Share Document