https://doi.org/10.24928/2018/0248

A Comparison of Competitive Dialogue and Best Value Procurement

Paulos Abebe Wondimu1, Ole Jonny Klakegg2, Ola Lædre3 & Glenn Ballard4

1PhD Candidate, Department of Civil and Environmental Engineering (DCEE) , Norwegian University of Science and Technology (NTNU), Trondheim, Norway/Senior Engineer, Norwegian Public Roads Administration, Norway, +47 901 11 814, paulos.wondimu@ntnu.no/ paulos.wondimu@vegvesen.no
2Professor, DCEE, NTNU, ole.jonny.klakegg@ntnu.no
3Associate Professor, DCEE, NTNU,ola.ladre@ntnu.no
4Professor, DCEE, NTNU/Professor DCEE, University of California Berkeley glenn.ballard@ntnu.no /ballard@ce.berkeley.edu

Abstract

Competitive Dialogue (CD) and Best Value Procurement (BVP) are two different approaches to early contractor involvement (ECI) in public projects. However, it is not clear which approach is best suited for what kind of project situations, and which is better for implementing lean in public procurement. The purpose of this paper is to explore the similarities and differences of these approaches to develop recommendations for how to match approach with project situations. In addition to literature study, two large infrastructure projects were studied through 12 in-depth semi-structured interviews and review of documents. The findings from this study indicate that the two approaches have several similarities; e.g., both give a better result when they are used together with a design-build contract than design-bid-build contract, and they give clients possibilities to meet suppliers and clarify projects before contract signing. However, they also have a number of differences such as the number of competitors that develop a project and a supplier selection premises varies. The study concludes that BVP is a more effective procurement process than CD as regards procurement phase. However, CD gives more room for the clients to influence supplier solutions than BVP.

Keywords

Best value procurement (BVP), competitive dialogue (CD), lean, early contractor involvement (ECI), public procurement

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Reference

Wondimu, P.A. , Klakegg, O.J. , Lædre, O. & Ballard, G. 2018, 'A Comparison of Competitive Dialogue and Best Value Procurement' In:, 26th Annual Conference of the International Group for Lean Construction. Chennai, India, 18-20 Jul 2018. pp 13-22

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