Journal for the Advancement of Performance Information and Value 2020-06-18T02:20:02+00:00 Nguyen Le Open Journal Systems <p>The Journal for the Advancement of Performance Information and Value (JAPIV) presents the development of performance-based value models pertaining to management, leadership, and service delivery aspects in civil engineering, as well as other service delivery environments, including education. The journal publishes peer-reviewed, open-access issues in rolling format; engaging traditional journal article style with innovative publishing technology to ensure faster, yet prestigious, publication for authors.</p> Implementation at Hanze University of Applied Sciences 2020-06-18T02:20:02+00:00 Antoinette Bos <p>Best Value PIPS has become popular in the Netherlands and at the Hanze UAS. Hanze UAS started its first BV PIPS project in June 2011 and is currently performing seven projects. The Hanze UAS encountered major difficulties in the clarification period with an IT project. Therefore the main thrust of this paper is to explore the clarification and risk management phase. For this purpose the author uses an IT project as a case study. The conclusion is that it is in the clarification phase that the major paradigm shift takes place. BV practitioners must understand that the clarification phase is critical in the changing of the paradigm. The client and the vendor must continually implement the new BV concepts and lessons learned. This case study is similar to projects in the U.S., where the culture of the organization is the biggest challenge to the BV system.</p> 2012-12-03T00:00:00+00:00 Copyright (c) 2012 Journal for the Advancement of Performance Information and Value Best Value Solution Designed in a Developing Country 2020-06-18T02:13:03+00:00 Dean Kashiwagi Jacob Kashiwagi Abraham Kashiwagi Kenneth Sullivan <p>For the last two years, researchers have been working with parties in Malaysia to implement best value practices. After two years of research work, the effort has many lessons learned. Lessons learned include a combination of factors that make the best value approach difficult in a developing country such as Malaysia. The different strata of economic levels give the upper levels (owners) a greater perceived ability to control the supply chain even though they may lack the expertise. This causes owners to attempt to deliver construction by controlling the vendors, both professionals and contractors. This increases the difficulty moving from a price based or owner directed system to a best value environment, which releases control to experts. The authors use deductive logic models which show decision making, direction, and control negatively impact accountability, proactive behavior, and the use of expertise. The two-year research program results in addressing the issue of how a buyer in a developing country can utilize the expertise of experts, and how the expert can change their function to get a controlling owner to use their expertise. The paradigm shift needs to take place among the elite and the visionary, before the overall environment can make the change. The product of this research project is to meet the requirements of a visionary group of quantity surveyors in Malaysia.</p> 2012-12-03T00:00:00+00:00 Copyright (c) 2012 Journal for the Advancement of Performance Information and Value The Source of Degradation of the Construction Industry Performance 2020-06-18T02:07:18+00:00 Dean Kashiwagi Jacob Kashiwagi Jake Smithwick Isaac Kashiwagi Abraham Kashiwagi <p>The construction industry performance has been analyzed for the past 20 years. There has been no simple answer to the source of the construction industry problems. In 1991, the Construction Industry Structure (CIS) was formulated, and identified that the price based environment was more inefficient than the best value environment. Over the past 18 years, the analysis of the CIS has led to the hypothesis that the price based sector is inefficient because the buyer controls it. The hypothesis has been tested through case studies, and test results show that the owner is the biggest source of project risk and deviations. The dominant information was formed through repeated testing by moving the control to the vendor, and documenting all sources of project deviation. The studies have shown that the use of decision making, management, direction and control of the contractor by the owner increases the project risk. Two longitudinal studies are used to confirm the potential accuracy of the deductive logic. Key words: contractor control, owner releases control, contractor defined scope.</p> 2012-12-03T00:00:00+00:00 Copyright (c) 2012 Journal for the Advancement of Performance Information and Value Use of Best Value Process for Inspection and Preventive Maintenance of Pumping Stations 2020-06-18T01:55:40+00:00 Jannie Koster-Robaard <p>The water board Velt en Vecht is a Best Value (BV) client who used the Performance Information Procurement System (PIPS) process to select professional services in 2012. The client had a procurement mission of integrity, transparency, objectivity, and non-discrimination that aligned them with the BV PIPS system. With a strategic plan of leadership instead of management and control, the water board is an example of a visionary owner that can be successful with BV PIPS. Lessons learned from the water board implementation of PIPS are that BV PIPS is a change of paradigm, even for a visionary owner. Both the owner who selects and the contractors who compete for the award must learn the new paradigm of minimized decision making, proactive planning, and risk management.</p> 2012-12-03T00:00:00+00:00 Copyright (c) 2012 Journal for the Advancement of Performance Information and Value Contracting Rolling Stock Maintenance of Utrecht Tramway, The Netherlands 2020-06-18T01:43:00+00:00 Anneke van Abeelen <p>This is a case study of the Utrecht tramway rolling stock maintenance project (21.6M euros). The case study is unique to the Dutch environment, which has experienced many construction-related projects. As it is one of the first services contracts in this area, it is different from a construction project, where the performance can be more easily and quickly identified. Another unique factor is that the vendors are also less educated in the Best Value (BV) approach. The BV approach and concept of the “vendor having no financial risk, and the owner having all the financial risk” was not well understood. At the time of its procurement (May 2011), the understanding of the clarification period in the Netherlands was not mature, causing potential issues with this type of contract. The uniqueness of this project, coupled with the approach to BV, presents invaluable lessons learned for entities interested in implementing BV.</p> 2012-12-03T00:00:00+00:00 Copyright (c) 2012 Journal for the Advancement of Performance Information and Value A New Sewage System with Best Value Procurement 2020-06-18T01:37:53+00:00 Jeroen van de Rijt Herman van den Hoogen <p>The adoption rate of the BVP/PIPS or the Best Value approach (Kashiwagi 2010) has been rather high in the Netherlands (van de Rijt &amp; 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.</p> 2012-12-03T00:00:00+00:00 Copyright (c) 2012 Journal for the Advancement of Performance Information and Value Increasing Performance in the Japanese Construction Industry 2020-06-18T01:30:56+00:00 Tsunemi Watanabe Kazumasa Ozawa Nozomu Mori Kenji Kinoshita <p>The performance of the construction industry in Japan has been high due to a lack of emphasis of price. Due to rapid change in the industry environment such as social requirement of fair implementation process of public works; however, there is a deep concern that the performance of the industry is being lowered due to more emphasis on the public works getting the low price contractor. Many efforts are being made to keep its high performance in a more cost competitive environment. A comparison between the essence of public bidding reforms in Japan and principles of the Best Value Approach shows some ideas on the future of the public bidding scheme. The critical areas needing to be addressed are the importance of various levels of feedback loops in social capital management and clarification of the position of supervision for appropriate risk sharing between the public client and the vendor. Additionally, in order for local governments with insufficient engineering resources to be truly accountable, it is worthwhile studying an alternative evaluation method of proposal and performance including non-technical one.</p> 2012-12-03T00:00:00+00:00 Copyright (c) 2012 Journal for the Advancement of Performance Information and Value The Best Value Approach in the Netherlands: A Reflection on Past, Present and Future 2020-06-18T01:04:23+00:00 Jeroen van de Rijt Sicco Santema <p>More than 15 years ago Dean Kashiwagi created a process called BVP/PIPS (Best Value Procurement/Performance Information Procurement System) at Arizona State University. 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 (Kashiwagi, 2009b). Kashiwagi developed the method for several years with the objective of improving the procurement and management of construction projects by reducing risk in selecting the top performer. The method (herein BV approach) has a number of steps, each built around a specific "filter”, which focuses on a different element to separate high and low performers. The early phase of the adoption of the process in the Netherlands has been described by Van de Rijt and Witteveen (2011) in the special issue of the Journal for the Advancement of Performance Information and Value. In this paper an update is given and future developments are described. The paper covers the BV approach, a brief history of PIPS in the Netherlands, technology adoption theory, adoption and adaptation of the technology and future developments.</p> 2012-12-03T00:00:00+00:00 Copyright (c) 2012 Journal for the Advancement of Performance Information and Value The Research Model that Revolutionized the Dutch Construction Industry 2020-06-18T00:43:40+00:00 Dean Kashiwagi Jacob Kashiwagi Abraham Kashiwagi Kenneth Sullivan <p>The Dutch construction industry is making a change from an owner controlled to a contractor-controlled environment. It is a movement from a top down culture (management, direction and control) to a bottom up culture (alignment and use of expertise). Owner decision making, management, direction and control are being replaced with a leadership model, which aligns and utilizes the expertise of the contractors. The changes in the Dutch construction industry validate a non-traditional research model, which used deductive logic and case studies involving dominant information and visionary industry participants, non-traditional concepts of Information Measurement Theory (IMT), the Construction Industry Structure (CIS) model and the best value Performance Information Procurement System (PIPS).</p> 2012-12-03T00:00:00+00:00 Copyright (c) 2012 Journal for the Advancement of Performance Information and Value Utilization of a Best Value Structure on a City’s Park Renewal and Upgrade Program 2020-06-10T03:31:21+00:00 Jake Smithwick Kenneth Sullivan Dean Kashiwagi <p>The City of Roseville is utilizing a best value selection and contract management process for the delivery of their $19M park renewal and upgrade program. The best value process minimizes decision of the client, and requires pre-planning from the vendors. This paper analyzes the impact external factors can have on a successful implementation of best value business model. The City is using the model after a highly successful initial pilot project, and in response to tremendous political pressure to deliver a high quality, high performance renewal program.</p> 2013-06-03T00:00:00+00:00 Copyright (c) 2013 Journal for the Advancement of Performance Information and Value Implementing Project Schedule Metrics to Identify the Impact of Delays Correlated with Contractors 2020-06-10T03:14:39+00:00 Anthony Perrenoud Kenneth Sullivan <p>Schedule management reduces schedule delays while optimizing positive opportunities to the project timeline. The built industry continues to struggle to capture project metrics that will improve supply chain management. The lack of performance metrics on construction projects filters the actual project performance of the project stakeholders. Contractors can easily be blamed for schedule delays because of the nature of construction projects. A large university capital improvement organization recognizes their lack of performance information and begins implementing a performance measurement system in 2005. The university measurements focus on project impacts to cost, schedule, and quality in hopes that additional information will improve risk management processes. This article reviews the schedule impacts that contractors create within projects. Data was collected directly from both contractor and client project managers of 254 construction projects. Actual delays from contractors were found to be a small percentage of the overall project schedule delays. More than half of the delays that contractors produced were found to be correlated to the material suppliers.</p> 2016-06-03T00:00:00+00:00 Copyright (c) 2013 Journal for the Advancement of Performance Information and Value Optimizing Cost and Schedule Performance through Best Value Project Delivery: Application within a Design-Build Project 2020-06-10T03:07:33+00:00 Brian Lines Anthony Perrenoud Kenneth Sullivan <p>Performance in the construction industry is wrought with challenges and owners often are victim to cost and schedule overruns, particularly on high profile projects that are large, complex, and risky. Alternative project delivery methods and techniques are continually being developed and implemented by buyers of construction services to address these problems. The Best Value Business Model (BVBM) has been rigorously tested and shown to improve project performance via its three-phased approach to project delivery. BVBM increases performance throughout the construction project lifecycle by utilizing value-based selection processes, pre-contract planning methodologies, and performance measurement systems. The objective of this research is to provide a detailed case study of BVBM application on a design-build project to deliver a highly complex research facility with tight schedule and budget thresholds. The implementation process is discussed in detail and project results are provided and analyzed to demonstrate the ability of BVBM to improve project performance. Special attention is paid to the ability of BVBM to optimize project cost and schedule performance through the application of a value-based selection methodology, a pre-contract preplanning period, and a weekly risk management system.</p> 2013-06-03T00:00:00+00:00 Copyright (c) 2013 Journal for the Advancement of Performance Information and Value Post Construction Quality Evaluation – A Manufacturer’s Use of the End User to Minimize Risk 2020-06-10T02:59:39+00:00 Dhaval Gajjar Kenneth Sullivan Dean Kashiwagi <p>A roofing manufacturer is motivated to increase accountability, minimize risk and differentiate themselves from other manufacturers to increase their sales. In order to achieve this, the manufacturer approached the research group to implement a warranty program that measures the performance information of their systems and applicators. The manufacturer submits a list of warranted jobs to the researchers, researchers perform a satisfaction check by calling the end users and report back to the manufacturer. Concepts utilized by the manufacturer include the use of warranty to ensure performance decreases risk, transparency is the best way to mitigate risk and risk can be mitigated before it happens. The research revealed that warranty program minimizes the risk for manufacturer and clients and helps differentiates the manufacturer by identifying end users that are not satisfied, applicators that are low performing, jobs that are leaking, customer retention rate and having a running log of satisfaction rating for every warranted job.</p> 2013-06-03T00:00:00+00:00 Copyright (c) 2013 Journal for the Advancement of Performance Information and Value Organizational Implementation of Best Value Project Delivery: Impact of Value-Based Procurement, Preplanning, and Risk Management 2020-06-10T02:47:09+00:00 Brian Lines Kenneth Sullivan Brian Stone <p>Many buyer organizations have attempted to implement new project delivery methods to increase performance on their contracting processes. Yet implementing new business practices can be difficult to accomplish successfully. An action research methodology was utilized to present a longitudinal case study of the University of Alberta’s implementation of the Best Value Business Model (BVBM). A key research objective was to document and present observations of the change management principles utilized during the implementation of organizational change at a large public organization. Other research objectives included quantification of project-level and organizational-level success indicators that reflect the progress of change implementation. Results are analyzed after more than two years of implementation of the BVBM on ten separate contracts. Direct cost savings on these projects as a result of the BVBM has been documented to be as much as $16 million when considering savings below budget and conducting comparisons against traditional project delivery methodologies. Other success factors include low rates of vendor and contractor change orders and high satisfaction among owner project managers with regards to the performance of contracted service providers. Contributions of this research include documentation how theoretical change management principles have been applied within an action research setting as well as the identification and documentation of success indicators for project- and organizational-level implementation of new project delivery methods.</p> 2013-06-03T00:00:00+00:00 Copyright (c) 2013 Journal for the Advancement of Performance Information and Value An Analysis of the Construction Industry Structure in India 2020-06-03T04:41:55+00:00 Syed Nihas Kristen Barlish Jacob Kashiwagi Dean Kashiwagi <p>The Indian construction industry has had poor performance delivering on time, with quality and within cost. Project cost and time deviations have been documented at 25%. The paper introduces the utilization of the Construction Industry Structure model to identify the problem, the solution, and how the paradigm of the Indian industry must be changed. Instead of using peer review to determine the validity of the explanation, the authors will use observable deductive logic to validate their proposal. The success of the explanation is not peer review, but Indian academic/research unit adopting the explanation and running research tests with the construction industry participants. The CIS proposal to the industry is to replace the management, direction&nbsp; and control of personnel and vendors with a transparent system of metrics and utilizing the expertise of the experts in the beginning of the project.</p> 2013-12-02T00:00:00+00:00 Copyright (c) 2013 Journal for the Advancement of Performance Information and Value