Ying, F J; Zhao, N and Tookey, J (2022) Achieving construction innovation in best value procurement projects: New Zealand mega projects study. Construction Innovation, 22(2), pp. 388-403. ISSN 1471-4175
Abstract
Purpose: Best value procurement (BVP) has been recognized for some time as offering significant opportunities to advance process excellence in the construction sector. As an innovative approach to strategic procurement, BVP has attracted attention from the New Zealand (NZ) Government. It has similarly been found that the most substantial benefit of this modified approach to procurement is in value creation and innovative organizational processes through identifying “best value.” Yet to date, there is a lack of robust evidence as to how BVP can exactly influence construction innovation. Accordingly, this paper aims to explore how to improve BVP implementation to promote construction innovation and what are the values to be achieved in BVP mega projects from the view of innovation. Design/methodology/approach: Semi-structured interviews with 22 participants, including project managers, procurement specialists, engineers and general managers from three organization types, were conducted to explore BVP implementation in a range of mega construction projects in NZ. Findings: Barriers to BVP implementation and value innovation have been identified in this paper. Data analysis suggested traditional mindset in the procurement process, market constraints, mistrusts and fuzzy definition of BVP are the challenges for BVP implementation; BVP cultivates organizational competition because of diverse collaboration models and value attitudes; and BVP considers more values from the whole supply chain. To promote innovative construction, existing BVP should consider adopting progressive enhancements toward updating procurement guidance, encouraging effective communications, collaborating and promoting changes in stakeholders' mindset. Practical implications: Identified barriers to BVP implementation set up a platform for framing guidance, which could provide an effective approach as it enables a better understanding of what BVP means to NZ and what needs to be overcome. Taking this into account, similar small size markets around the world would be able to consider the applicability of BVP for innovative improvements. Originality/value: This paper provides insights into value concepts in project procurement. It theoretically and practically possesses originality in linking BVP to innovative construction. The study of BVP and its application further reveals the importance of establishing a distinct regulation and fostering organizational competition from value aspects to achieve construction innovation.
| Item Type: | Article |
|---|---|
| Uncontrolled Keywords: | best value procurement; construction engineering management; construction innovation; construction management; construction procurement; infrastructure; innovation; mega projects; New Zealand; procurement; value management/engineering |
| Index terms: | construction procurement, value management, best value procurement, best value, implementation, markets, New Zealand, project manager, platform, engineer, value creation, regulation, competition, evidence, methodology, construction project, collaboration, project procurement, construction engineering management, construction innovation, construction sector, procurement process, data analysis, manager, interview, framing, strategic procurement, mindset |
| Subjects: | digital design, project management theory and practice, production management, Geography, research methods, tendering, economic development, management, political science, industry analysis, building construction, market analysis, practitioner, health behaviours and lifestyles, evaluation and assessment methods, data collection methods, profession, strategic project management, economic analysis, bidding, contractual arrangements, conceptual models, data analysis and analytics |
| Topics: | Organizational Design, Digital Applications, Value Management, Roles and Professions, Sustainability, Governance, Procurement, Business Strategy, Engineering Principles, Research Practice, Geographical Context, Project Management |
| Descriptive scope: | 5 PCTEA |
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