Using the Best Value Approach to Improve Construction Project Performance in the Chinese Construction Industry
Keywords:China, Construction, Performance, Risk, Developing Country, Best Value Approach
The Chinese Construction Industry (CCI) is struggling with poor project performance (including cost overruns, delays, and lower satisfaction ratings). Previous research has identified that other developing countries are struggling with similar issues. According to the available economic data (GDP, growth, corruption, etc.) the CCI is very similar to construction industries in Vietnam and the Kingdom of Saudi Arabia. A literature review suggests that the CCI struggles with similar risks as these two countries. The primary difference between the CCI and other industries is the socialistic environment. Several research efforts have shown the Best Value Approach (BVA) to be a feasible solution to reconciling project performance in both Vietnam and Saudi Arabia. The research shown herein investigates whether the BVA is a feasible solution to performance issues in the CCI. Using available literature, the authors created an industry expert survey to investigate whether BVA concepts can address the performance issues in the CCI and if they can be implemented despite government policy. From 204 responses, the results suggest that most professionals are dissatisfied with the CCI performance, over 50% believe BVA concepts will improve the performance of the CCI, but only 40% believe that the BVA would be implementable in the CCI.