https://doi.org/10.24928/2019/0190

Best Value Procurement From a Contractor Point of View

Emilie Sofie Lesjø1, Paulos Abebe Wondimu2 & Ola Lædre3

1M.Sc. Student, Department of Civil and Environmental Engineering, Norwegian University of Science and Technology (NTNU), +47 943 83 498, emilie.lesjo@gmail.com
2Researcher, 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
3Associate Professor, DCEE, NTNU, ola.ladre@ntnu.no

Abstract

Best Value Procurement (BVP) was introduced in Norway in 2016. Since then, more than ten pilot projects have tested the method. So far, limited research has been carried out to explore the contractors’ experiences on BVP to improve the method for future projects. The purpose of this paper is to fill part of this research gap by exploring a contractor’s experiences from several projects using the method. By looking at five road projects that have tested out the BVP method, a trend can be seen in how the evaluation of the offers was conducted. Data was collected from five pilot road projects through three in-depth interviews with key persons and a document study. The results show how the evaluation of the price aspect has changed over time. In three of the five projects, a formula was used that urged the contractors to set prices low in order to score additional points. This formula gained criticism from both the contractors and the BVP experts hired to help the contractors. BVP has contributed, to a certain extent, to Lean implementation. However, the practice should be improved to increase value and transparency and minimize conflict and waste.

Keywords

Best value procurement, BVP, lean construction, value, early contractor involvement, ECI

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Reference

Lesjø, E. S. , Wondimu, P. A. & Lædre, O. 2019, 'Best Value Procurement From a Contractor Point of View' In:, Proc. 27th Annual Conference of the International Group for Lean Construction (IGLC). Dublin, Ireland, 3-5 Jul 2019. pp 121-132

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