26th Annual Conference of the International Group for Lean Construction - Chennai, India - 2018

https://doi.org/10.24928/2018/0285

Best Value Procurement (BVP) in a Mega Infrastructure Project

Mikkel Narmo1, Paulos Abebe Wondimu2 & Ola Lædre3

1M.Sc. Student, Department of Civil and Transport Engineering, Norwegian University of Science and Technology (NTNU)/Project Engineer, Veidekke AS, Phone +47 99415674, [email protected]
2PhD Candidate, NTNU, Trondheim, Norway/Senior Engineer, Norwegian Public Roads Administration (NPRA), Norway, +4790111814, [email protected]/ [email protected]
3Assoc. prof., Dr.Ing., NTNU, Trondheim, Norway, +4791189938, [email protected]

Abstract

The Norwegian Government recently established a new public company called New Roads with the aim to create more value for money within road investment. To meet government expectations, New Roads has started to use Best Value Procurement (BVP) in mega infrastructure projects. BVP emphasizes contractor selection and risk management from the beginning of the project to add value and reduce waste in all project phases. The purpose of this research is to explore the experience of client and vendor personnel with the implementation of BVP so recommendations can be given for future application. In addition to a literature review, one of the first BVP projects was studied through 11 in-depth semi-structured interviews with key informants. Both client and vendor applauded the approach. Three significant shared positive experiences with the method were found: better risk management, realistic performance expectations, and efficient procurement procedure. BVP is one of several approaches that can be used to award contracts based on qualification rather than price. In addition, the method brings risk management to the beginning of the project.

Keywords

Best Value Procurement (BVP), Public Procurement, Infrastructure projects, Lean, ECI

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Reference

Narmo, M. , Wondimu, P. A. & Lædre, O. 2018. Best Value Procurement (BVP) in a Mega Infrastructure Project, 26th Annual Conference of the International Group for Lean Construction , 23-33. doi.org/10.24928/2018/0285

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Founded in 1993, the IGLC is an international network of researchers from practice and academia in architecture, engineering, and construction (AEC) who feel that the practice, education, and research of the AEC industry have to be radically renewed in order to respond to the global challenges ahead.

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