Using the Best Value Approach to Improve Project Performance in the Vietnam Construction Industry
Keywords:Best Value Approach, Procurement, Risk Management, Project Management, Performance Information, Developing Countries, Relative Importance Index, Vietnam
The Vietnam Construction Industry (VCI) has been facing risks that cause delays, budget overrun, and low customer satisfaction that required continuous research efforts on solutions. This paper focuses on how the Best Value Approach (BVA), a procurement and project management philosophy, could be utilized in VCI projects to improve overall performance. Analysis from six industry experts determined how current VCI conditions, namely risk and success factors, are related to the BVA. Sixteen BVA success principles were identified and ranked based on their perceived impact to project performance by an industry survey with 98 VCI practitioners. The results show high agreement rate with all sixteen BVA principles. Spearman’s rank-order correlation test determined relatively high agreement between owners and contractors, and lower agreement between owners and consultants on the ranking. The majority of participants agreed that the BVA would improve project performance and were interested in learning more about the BVA. The results encourage further BVA testing and education in the VCI. This approach is not limited to the VCI but could be followed by other developing nations.