scholarly journals Improving the Current Procurement System in Saudi Arabia: A University Case Study

2020 ◽  
Vol 9 (2) ◽  
pp. 63-78 ◽  
Author(s):  
Majed Alzara ◽  
Mohammed Algahtany ◽  
Jacob Kashiwagi ◽  
Abdulrahman Al-Tassan ◽  
Dean Kashiwagi
Keyword(s):  
Saudi Arabia ◽  
Project Performance ◽  
University Campus ◽  
Performance Information ◽  
Past Performance ◽  
Public Projects ◽  
Best Value ◽  
Procurement System ◽  
Level Of Agreement

Public projects in Saudi Arabia have faced performance issues. The primary procurement system used in Saudi Arabia (low-bid) does not consider the contractors’ performance. A case study conducted at a university campus in northern Saudi Arabia showed low project performance. The current procurement system was analyzed and modified to utilize the concepts of the Best Value Performance Information Procurement System (BV PIPS). BV PIPS has demonstrated high levels of project performance in previous tests. A large survey was conducted of 761 classified contractors and 43 universities’ representatives. Survey respondents were asked to quantify their view regarding the current procurement system, rate their level of agreement regarding Best Value principles, and rate their level of agreement with the newly proposed procurement system which integrates Best Value principles. The results of the survey show that both, clients and contractors, are dissatisfied with the current procurement system, and agree with the new procurement system. The survey also suggests that respondents agree with Best Value principles suggesting that contractors’ performance should be tracked, and procurement should be conducted using both price and past performance information. The authors recommend that the newly proposed procurement model should be implemented in more projects in Saudi Arabia to further validate the Best Value system and improve the performance of projects in the country.

scholarly journals Analysis of Cost Overruns in Saudi Arabia Construction Projects: A University Case Study

2020 ◽  
Vol 10 (1) ◽  
pp. 84-101
Author(s):  
Majed Alzara ◽  
Jacob Kashiwagi ◽  
Dean Kashiwagi ◽  
Abdulrahman Al-Tassan
Keyword(s):  
Saudi Arabia ◽  
Construction Projects ◽  
Common Factor ◽  
Project Performance ◽  
University Campus ◽  
Cost Overruns ◽  
Change Orders ◽  
Public Projects ◽  
Procurement System

Public projects in Saudi Arabia have been experiencing low construction project performance for the past decade. Studies have identified the low-bid delivery method as an important factor in causing such delays. In addition, low bids for contracts have not reflected the actual project cost. A case study was conducted at a university campus in northern Saudi Arabia in which the actual project costs for four projects were examined. The study found that all four projects’ costs were higher than the original bid. In addition, a large survey was conducted of 804 classified contractors and universities representatives who identified change orders as the most common factor causing cost overruns in Saudi Arabia. Previous studies showed that some contractors aim to submit low bids for winning the competition then change orders to reduce their losses. Consequently, low bids also lead to cost overruns. In a comparison using the result of a case study and the results of the Performance Information Procurement System (PIPS), Saudi Arabia’s delivery system was identified as a potential cause of project performance issues.

scholarly journals Important Causes of Delayed Projects in Saudi Arabia vs. PIPS: A University Campus Case Study

2016 ◽  
Vol 8 (1) ◽  
Author(s):  
Majed Alzara ◽  
Jacob Kashiwagi ◽  
Dean Kashiwagi ◽  
Abdulrahman Al-Tassan
Keyword(s):  
Saudi Arabia ◽  
Construction Projects ◽  
University Campus ◽  
Performance Information ◽  
Literature Research ◽  
Public Construction ◽  
Procurement System ◽  
Causes Of Delays ◽  
The University

Saudi Arabia has been facing issues with completing construction projects on time and on budget. It has been documented that 70% of public construction projects are delayed. A case study was performed, at a University campus in northern Saudi Arabia, identifying the major causes of project delays. The University was experiencing delays from 50% to 150%. The delay factors were gathered from the University Projects Director and five engineers. The University delay factors were then compared to delay factors experienced on Saudi construction projects, identified by performing a literature research. The comparison identified nine causes of delays that both studies documented. The study also proposes a solution to minimize the nine major delay factors. A literature research identified one construction management method, the Performance Information Procurement System (PIPS), has documented multiple times its ability to improve project performance and minimize delays.

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 Best Value Procurement Results within the GSA

2014 ◽  
Vol 6 (1) ◽  
pp. 72
Author(s):  
John Savicky ◽  
Dean Kashiwagi ◽  
Kristen Barlish ◽  
Kenneth Sullivan
Keyword(s):  
Construction Projects ◽  
Performance Metrics ◽  
Government Agency ◽  
Performance Information ◽  
Best Value ◽  
Overall Performance ◽  
Concurrent Testing ◽  
Procurement System ◽  
The Impact

A large government agency, seeking to become more efficient, implemented the Performance Information Procurement System (PIPS) Best Value (BV) process on various construction projects to determine if the program could increase the performance of outsourced services. The impact of this model for increasing the performance of procured projects is presented. The environment of the projects and testing of the process were unique, as they allowed concurrent testing and validation of multiple projects, similar in scope, and uniform application of key performance metrics. A case study is also used to illustrate the overall performance of the BV process. The findings in this paper show that the process resulted in approximately a 60% increase in performance with regards to customer satisfaction, project delays, and cost increases. In an industry with delays in excess of 20-50%, a model that results in an increase of performance for outsourced services is significant.

scholarly journals Best Value Case Study for Cold Storage Facility in Miami, Florida

2014 ◽  
Vol 6 (1) ◽  
pp. 53 ◽  
Author(s):  
Dhaval Gajjar ◽  
Dean Kashiwagi ◽  
Jacob Kashiwagi ◽  
Kenneth Sullivan
Keyword(s):  
Cold Storage ◽  
Complex Problem ◽  
Storage Facility ◽  
Performance Information ◽  
Modified Bitumen ◽  
Safety Hazard ◽  
Best Value ◽  
Facility Manager ◽  
Procurement System

A cold storage facility had been reroofed in 2003 (investment of $600,000) that required the removal of existing insulated roof and replaced with a 20 year modified bitumen roof. After six years, the facility posed a safety hazard due to the ice formations inside the cold storage facility. The source of the problem was not known. The traditional process of using a professional designer, a certified contractor, receiving a manufacturer’s warranty, and having the roof inspected by the local government inspector could not assist the owner and the FM resolve the complex problem. The facility manager (FM) decided to utilize a non-traditional Best Value (BV) Performance Information Procurement System (PIPS) to identify and resolve the problem. The main difference of the system is that the best value vendor and not the owner determines the final scope. This paper documents the BV PIPS approach and the resulting performance. An inspection five years later verified the performance of the Best Value approach and showed the value of the installed sprayed polyurethane (SPF) roofing system.

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 Upgrade the Saudi Arabian Procurement System Delivery Method

2015 ◽  
Vol 7 (1) ◽  
pp. 146
Author(s):  
Ahmed Alofi ◽  
Yasir Alhammadi ◽  
Dean Kashiwagi ◽  
Kenneth Sullivan
Keyword(s):  
Saudi Arabia ◽  
Construction Projects ◽  
Public Procurement ◽  
Saudi Arabian ◽  
The Public ◽  
Public Projects ◽  
Potential Risks ◽  
Low Performance ◽  
And Performance ◽  
Procurement System

Saudi Arabia has had many issues in delivering mega construction projects, such as delays, high costs, and low customer satisfaction. Some studies show that around 70% of public projects in Saudi Arabia are delayed. One factor that might be causing these performance issues is the traditional low bid contracting system in Saudi Arabia, or the Saudi procurement system. In Saudi Arabia, owners select contractors based only upon the lowest price. This paper researched ways to modify the current Saudi procurement system and show quick and simple modifications that can be done to improve the low performance. This research proposes that by adding the clarification phase from the Performance Information Procurement System (PIPS) to the Saudi traditional procurement process could greatly improve construction performance. The clarification phase requires the selected contractor to submit a project scope, detailed and milestone schedule, potential risks that they do not control, and performance measurement before a contract is awarded. The PIPS system is one of the most successful systems around the world, which shows success rate of 98% in six different countries with risk and cost reduction up to 30%. The clarification phase has been identified as the most important step in the PIPS to ensuring a successful project. This paper conducted a survey among construction professionals in Saudi Arabia, including 157 engineers, 33 consultants 9 owners, 5 vendors, 13 academics, and 28 architects, in order to develop the public procurement system in Saudi Arabia. The participants work in government sectors with an interest in the Saudi Arabian procurement system. The survey confirmed that professionals in the Saudi construction industry believe that the procurement system should be changed and that the inclusion of the clarification phase to the procurement system is a way to improve the procurement system.

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 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).

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