194-296-1-SM.pdf - Best Value Procurement in Construction...

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© P B S R G 2 0 1 6 c i b w 1 1 7 . c o m / j o u r n a l | 2-1 Best Value Procurement in Construction and its Evolution in the 21 st Century: A Systematic Review Muhammad Hasnain, (MS) and Muhammad Jamaluddin Thaheem, (PhD) Department of Construction Engineering and Management, NIT-SCEE, National University of Sciences and Technology Islamabad, Pakistan This research attempts to facilitate client needs by describing the priority indicators that could help in decision making for awarding contracts. The indictors are recognized as key variables that impact the subsequent decisions of contracts award. The authors present a hierarchical review of relevant literature and integrate the factors that help in decision making using the Best Value Approach. This framework is comprised of eight dimensions of Best Value contributing factors cost , risk , performance , quality control , health and safety , project control , current workload and delay claims . These eight dimensions aid the individual clients and organizations in selecting the most suitable contractor. The authors provide a brief understanding of Best Value contract strategy and the basis for the contract award in terms of business choice, managerial capacity and competency. This paper aims to provide a philosophy as to how Best Value decision making could be influenced by the ranking of contributing factors. This work also help in decision making by providing a hierarchical arrangement of the influential factors and the corresponding criteria for Best Value contract award. Keywords: Best Value, Performance, Quality control, Health and Safety, Systematic review. Introduction In the construction sector, project success is defined in a unique way. Project success is defined by meeting design goals, fulfilling user satisfaction, organizational development and developing technological infrastructure of the country. Projects can be undertaken successfully by achieving the milestones in the designated time, conforming to the quality standards and satisfying the cost impact on the end user (A. M. Liu and Walker, 1998). For many decades, the procurement of most of the construction projects has been carried out under traditional low-bid approach. In the traditional process of contractor selection, most of the projects suffer in terms of time and cost due to the subjective bias in clients’ selection mechanisms. According to the user agency, the same level of performance could not be achieved due to subjective bias in contractor`s selection process (D. Kashiwagi and R. Byfield, 2002). The complex and risky decision making in low-bid approach results in misunderstanding, reactive contractor behavior, decreased quality of work, and hostile relationships (J. Kashiwagi et al., 2010). Many owners tend to select based on the lowest price in exchange for quality of work. The actual value of a contractor depends both on cost and project specific criteria (PSC). Supreme value can be measured from contractor’s credentials, or ‘selection criteria’

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