An empirical study to assist owners in selecting the right procurement method for design-build projects

Adamtey, S A (2022) An empirical study to assist owners in selecting the right procurement method for design-build projects. International Journal of Construction Education and Research, 18(1), pp. 67-84. ISSN 1557-8771

Abstract

In design-build (DB), owners use procurement methods such as best value, qualification-based and sole source to offer a more objective approach when selecting design-builders. The aim of this study was to provide an empirical analysis that can assist the procurement method decision by examining how different project characteristics influence the procurement method selection and comparing DB project performance within the different procurement methods. The study statistically analyzed 160 DB projects completed between 2008 and 2019 worth over $14 billion. The results showed that best value is the most predominantly used procurement method and project characteristics such as project type, owner type, and contract method affect the selection of procurement methods significantly. Best value procurement is more likely to use lump sum contracts while qualification based is more likely to use GMP. Civil infrastructure projects and public owners tend to use best value more frequently while private owners use qualification based more often. In terms of performance comparison, projects with qualification-based procurement have better schedule performance while those with sole source have better cost performance. The findings provide practical considerations for owners in selecting the right procurement method for their projects, which can lead to improved delivery of DB projects.

Item Type: Article
Uncontrolled Keywords: best-value; design-build; performance; procurement method; project characteristics; qualification-based; sole source
Index terms: schedule performance, public owner, cost performance, procurement method, qualification, owner, best value, best value procurement, empirical study, project performance, infrastructure project, design-builder
Subjects: sociology, project controls, infrastructure and transport systems, economics, project management theory and practice, tendering, educational resources, research methods, contractual arrangements, bidding, practitioner
Topics: Time Control, Roles and Professions, Stakeholder Management, Cost Management, Research Practice, Education, Procurement, Engineering Principles, Project Management
Descriptive scope: 3 PCA

N.B. Descriptive scope is a count of how many of the five facets of empirical research are indicated by the words used in title, abstract and keywords. It is not intended as a judgement on the research; merely a count of the kind of word we would expect to indicate Phenomenon, Concepts, Theoretical framing, Empirical techniques, Analytical techniques. If all five are present, then a code of “5 PCTEA” will indicate this. If you feel the coding for this record is questionable, we welcome discussion around the terms we matched or the way we categorized them. The facet you would expect may not be coded, or a facet may be coded inappropriately. This can also bear on a larger question, of which facets should be treated as defining in construction management research. Please get in touch, and we will look at it. More details here