Performance Indicators in the Best Value Approach

Abstract

One of the distinctive aspects of the Best Value approach compared to traditional approaches is the use of dominant information: simple, non-disputable information. It enables experts to explain complex situations to non-experts in a clear way. This leads to increased transparency in the supply chain and to mitigation of risks. Rijkswaterstaat, as one of the worldwide leading clients using the Best Value approach, pays increasing attention to performance information in their Best Value projects. However, both client and contractor encounter several problems, such as a lack of support for and performance measuring, difficulties in collecting data and a lack of knowledge regarding the development and use of performance indicators. This paper describes the problems encountered based on interviews with practitioners of both client and contractor. Suggestions are made to resolve these problems. Furthermore, a process model for the development and use of performance indicators in infrastructural Best Value projects is proposed. This model is based on theory and validated in practice.