A New Sewage System with Best Value Procurement

Abstract

The adoption rate of the BVP/PIPS or the Best Value approach (Kashiwagi 2010) has been rather high in the Netherlands (van de Rijt & Santema 2012). One of the largest industrial companies in the Netherlands, Tata Steel in IJmuiden (part of Tata Steel Group) has applied the principles of BVP/PIPS to select a vendor for a sewer renovation. BVP/PIPS is a procurement method that aims to select the most suitable vendor for the job, to spur this vendor on to highest performance, and to reduce the client’s management and control tasks. The case shows that a different way of procuring by the client leads to different behavior of the vendor and to a higher performance of the vendor and less risk.