Journal for the Advancement of Performance Information and Value <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> en-US (Nguyen Le) (Nguyen Le, Ph.D.) Fri, 17 Apr 2020 00:00:00 +0000 OJS 60 Case Study of Sustainability of the PIPS Best Value Program at the University of Minnesota <p>This is a case study testing the hypothesis that the best value PIPS process is a sustainable process/structure. The best value PIPS process has been tested 450 times over 13 years. However, the process/structure has not been sustainable, meaning that users have been successful at individual tests, but unable to imbed the system into their organization and standard operating procedures. It has been resisted because it minimizes the need for construction management, simplifies the delivery process and transfers both risk and control to the contractors. The University of Minnesota approached the Performance Based Studies Research Group (PBSRG) to test and implement the process. Unlike other research clients, they agreed to meet the requirements for sustainability: implementing a long term strategic plan, using and instructing a core team, running tests before full implementation, and implementing continuous education to both client professionals and contractors. This study shows the results of the hypothesis testing.</p> Kenneth T. Sullivan, Dean Kashiwagi Copyright (c) 2008 Journal for the Advancement of Performance Information and Value Mon, 02 Jun 2008 00:00:00 +0000 Assessment of Pakistani Construction Industry – Current Performance and the Way Forward <p>The Pakistani Construction Industry has always been of economic and social significance to the country. In contrast to the prospective share of Pakistani construction in the local and global economic market, conversely, the development of the sector has not been at par with the market demands. With the recent rapid economic growth of the country, Pakistan now offers a growing market for the construction industry. The Government of Pakistan has responded to this opportunity by planning extensive infrastructure expansion programs. All of these programs have the potential to lead the local Industry to establish respect, status and international recognition when the appropriate efforts are extended to achieve the same. Even with the opportunity for growth the challenges will be extensive. This research presents the current state of performance of Pakistani Construction Industry and provides directions for strategic improvement of the construction industry on a sustainable basis. Major findings of the research include: a cultural and behavioral shift in the mind-set of all participants in the construction process especially top management is necessary if the construction industry is to improve its performance and competitiveness; the “boom cycle” and corresponding shortage of labor trades has increased the need for industry participants to adopt and apply construction project management philosophy, tools and techniques to help them manage the industry performance and productivity in a sustainable long-term mode. The major obstacles to improving the performance of Pakistani construction industry were found to be lack of expertise/resources in construction project management and its applied areas. A rigid attitude and behavior of executive management toward quality, safety and risk management, plus more management and emphasis on employees’ commitment toward project performance, better education and training to drive the improvement process, and tendency to cure the cause of the problem rather than the symptom. If coordination, teamwork, productivity and industry performance in the long run is going to improve, then extensive awareness and training programs to improve the clients’ understanding and approach toward construction project management must be initiated without exception.</p> Rizwan U. Farooqui, Syed M. Ahmed, Sarosh H. Lodi Copyright (c) 2008 Journal for the Advancement of Performance Information and Value Mon, 02 Jun 2008 00:00:00 +0000 Design-Build Project Delivery in Military Construction: Approach to Best Value Procurement <p>Design-Build is rapidly becoming one of the most commonly used project delivery methods in the facility construction industry. The United States Air Force and the Air Force Reserve Command (AFRC) are expected to establish a target of 75% of all Military Construction (MILCON) projects delivered using the Design-Build method. The use of this delivery method will bring significant changes in the relationships between the various parties associated with facility project delivery when compared to the traditional Design-Bid-Build method. This paper demonstrates that Design-Build delivery with a best value selection is an important tool in accomplishing AFRC’s cost efficient, rapid response transformation goals applicable to facility construction. Three hundred thirty two projects in program years 2002 through 2006, constructed using both traditional Design-Bid-Build or Design-Build delivery methods, were examined. Parameters used for comparisons were construction cost and schedule growth, project cost, vertical versus horizontal construction, and number of days required to prepare solicitation documents, advertise and accomplish construction award. This research reveals significant project schedule advantages with Design-Build best value selection delivery. The advantages are apparent in both pre and post construction award activities. Potential Design-Build cost advantages are hindered by Defense Federal Acquisition Regulations requiring firm fixed price contracts at construction award.</p> Birtice Garner, Kathleen Richardson, Daniel Castro-Lacouture Copyright (c) 2008 Journal for the Advancement of Performance Information and Value Mon, 02 Jun 2008 00:00:00 +0000 Industry Transformation: Testing Best-Value and Leadership in Non-Construction Industries <p>The Performance Based Studies Research Group (PBSRG) in the Del E. Webb School of Construction at Arizona State University has conducted research in the development and application of best-value and leadership based process models in construction for the past 14 years. Despite significant success in terms of construction performance, the concepts and ideas of the best-value/leadership process models have met consistent resistance. Due to the construction industry’s characteristics, fragmented system, and inability to change easily, documenting industry impact has been difficult. The PBSRG has embarked on an effort to test their research concepts of best-value/leadership process models in industries outside of construction, with a less fragmented system, but with similar characteristics. In this way, the authors hope to gain a better understanding of the research models’ impact on an industry. This paper presents the initial testing of the bestvalue/ leadership process model in the area of dining services, specifically on a $300+ million contract for one of the largest campuses in the United States, Arizona State University. The initial results show a significant increase in guaranteed money, performance, and risk minimization. The expanse of the effort seeks to create an industry transformation model to be first tested in dining services and then brought back to the construction industry as an example to drive change in the future.</p> Kenneth T. Sullivan, John K. Michael Copyright (c) 2008 Journal for the Advancement of Performance Information and Value Mon, 02 Jun 2008 00:00:00 +0000 The Construction Industry in China: Its Bidding System and Use of Performance Information <p>This paper describes the rapid development of China’s construction industry and especially its bidding system. After summarily depicting the history, scope, employees and contractors in China’s construction industry, the paper identifies that even after nearly thirty years’ development, the sector is still harassed by the problems of low productivity, unskilled employees, unsophisticated technologies, inadequate legal framework and flawed mechanism. This paper also points out that the status quo of performance information in China’s construction industry still leaves much to be desired, and that in order to merge into the global market, China has made much effort to introduce the competitive bidding mechanism and the method of evaluated lowest bidding price to the industry. Via picturing the course of using the method of evaluated lowest bidding price in China’s construction industry, the paper also characters why and how the performance information is used in the sector. At the end of the paper, it is pointed out that although some certain district has made some efforts to use performance information, most Chinese scholars and government officials are still convinced that the method of evaluated lowest bidding price does accord with the market-oriented trend and should certainly be widely adopted in the future.</p> Wenjuan Zhang, Dongping Cao, Guangbin Wang Copyright (c) 2008 Journal for the Advancement of Performance Information and Value Mon, 02 Jun 2008 00:00:00 +0000 A Case Study of a Best Value Manufacturer <p>This is a case study of a construction product manufacturer’s effort to become a profitable manufacturer of roofing systems while providing a best value product to the client (best performance at the lowest cost.) The manufacturer was attempting to become successful with product performance in an industry where low performance of competing products brought a perceived high risk of nonperformance from clients. The manufacturer’s efforts included documentation of performance of their installed product, creating a risk management process, testing the risk management process and creating a supply chain structure which minimized the risk of both the manufacturer and the client. The key component of a best value manufacturer is the identification of the true buyer of their materials is the owner of the facility which buys their product and not the contractors. This paper documents the transformation from not having performance information to having documented performance on their product, developing a risk management program, and exercising their risk management program. This includes the formulation of a performance based contractor program and the application of the Performance Information Risk Management System (PIRMS.)</p> Dean Kashiwagi, PhD, Jake Smithwick, Jacob Kashiwagi, Kenneth Sullivan, PhD Copyright (c) 2010 Journal for the Advancement of Performance Information and Value Mon, 01 Feb 2010 00:00:00 +0000 The Dutch Construction Industry: An Overview and Its Use of Performance Information <p>This paper gives an overview of the Dutch Construction industry and elaborates further on its use of performance information. After giving an overview of the Dutch construction industry depicting size, major contractors, growth, profitability, value added, costs, productivity, this section is concluded by giving future predictions of the industry for the following years. A summary is given of the 2002 Dutch construction collusion as a means to give explanations for the persistent use of procurement based on lowest-bid competition. Although a starting realization is recognizable towards more innovative ways of tendering to restore trust and bilateral relationships between constructors and their clients; change is slow as hard data of performance information is limited. Current available performance information of the Dutch construction industry is discussed, such as failure rate and costs, bottlenecks, procurement methods used, customer satisfaction and selection criteria. As seen throughout this paper, innovative ways of procurement can contribute to the changes aspired to by the Dutch construction industry as well as bring in added value. Government plays a central role as a major client and frontrunner and also with the means of regulating policy on procurement for the industry. Although new initiatives of change towards more innovative ways of tendering are starting to build with cooperation between companies and industry platforms, it remains still in its infancy.</p> Jeroen van de Rijt, MSc., Michael Hompes, MSc., MCom., Sicco Santema, PhD Copyright (c) 2010 Journal for the Advancement of Performance Information and Value Mon, 01 Feb 2010 00:00:00 +0000 Best-Value Process Implementation at the City of Peoria: Five Years of Research Testing <p>The City of Peoria is Arizona’s ninth largest city. It covers nearly 178 square miles and is home to over 153,000 residents. The projected 10 year growth of the City is estimated to be over 204,000, which has prompted a significant expansion of the City’s municipal services and facilities. In an attempt to efficiently meet the demands of the projected growth, the City of Peoria partnered with the Performance Based Studies Research Group out of Arizona State University in 2004. The objective of the partnership was to test and implement a best value structure within the City’s construction program, specifically as applicable to capital projects. This paper presents a five year summary of the test implementation results, the evolution of the best value structure within the city, project performance, service expansion to include non-construction projects, and lessons learned from the research. The research effort has included $385,691,802 in total projects awarded and implemented under the best value structure, with documented performance increases in cost metrics, schedule metrics, and customer satisfaction.</p> Kenneth T. Sullivan, PhD, MBA, John Savicky, M.S., Brad Carey . M.S. Copyright (c) 2010 Journal for the Advancement of Performance Information and Value Mon, 01 Feb 2010 00:00:00 +0000 Past Performance Information: Analysis of the Optimization of a Performance Evaluation Criteria <p>Performance information has been defined as “the set of metrics used to quantify both the efficiency and effectiveness of actions (Neely 1995).” From this definition, past performance information can be extrapolated to entail those metrics that consider the effectiveness of past or previous actions. Within value-based procurement methodologies, the use of past performance information as an evaluation criteria is common; however, the optimal use, method, specific criteria, and collection techniques vary widely across clients and buyers. This paper presents a history and evolution of the use of past performance information within a specific procurement and project delivery process called the Performance Information Procurement System (PIPS). It also includes an analysis of the modifications made, an analysis of the effort required for the inclusion of past performance information as a selection criteria as calculated from the procurer’s perspective, and an analysis of a new methodology of a vendor driven collection process as compared to a buyer driven collection process.</p> Kenneth T. Sullivan, PhD, MBA, John Savicky, M.S. Copyright (c) 2010 Journal for the Advancement of Performance Information and Value Mon, 01 Feb 2010 00:00:00 +0000 Influence of Delivery Methods and Legislative Impediments on Project Performance Information <p>The choice of a suitable delivery method plays a considerable role in the performance of a construction project. Previous research has attempted the development of a systematic approach to project delivery method selection focusing on performance information. However, such attempts did not properly address public agencies and legislative impediments are almost entirely neglected as suggested variables in such models. This paper addresses these limitations by presenting a quantitative analysis to test whether federal and state legal limitations do influence project performance. Project characteristics from the U.S. General Services Administration Capital Construction Project database are presented. The database is analyzed using cross-tabulation to determine potential correlations among the variables, and specifically their relation to project delivery method choice and performance information. Contributions from this research are reflected in presenting a methodology for choosing alternative delivery methods while considering project characteristics and specifically the legislative impediments associated with a construction project and their influence on project performance.</p> Valerie R. Riecke Smith, Daniel Castro-Lacouture, Rita Oberle Copyright (c) 2010 Journal for the Advancement of Performance Information and Value Mon, 01 Feb 2010 00:00:00 +0000 Individual Business Travel at Boehringer Ingelheim: A Best Value Procurement Pilot <p>Problems in the delivery of construction are supply chain issues in the procurement area, and not caused by the complexity of the construction industry. In order to prove this, Best Value Procurement has been applied in procuring travel services within pharmaceutical company Boehringer Ingelheim. In this paper the authors propose that there are similarities in the procurement of services at BI and the procurement of construction services. It is proposed that the best value PIPS process makes a procurement officer a professional, able to deliver any service. The BVP PIPS test to deliver travel services increased value and performance and minimized the cost of the service. The conclusion is that the best value PIPS process has great potential to increase the value and performance in the delivery of other services.</p> Marco van der Heijden, Jeroen van de Rijt, MSc Copyright (c) 2011 Journal for the Advancement of Performance Information and Value Wed, 01 Jun 2011 00:00:00 +0000 A Cross-Purchasing Portfolio Application of Best Value Procurement: Lessons Learned from Six Cases at Ballast Nedam <p>Ballast Nedam like any other business in the industry encounters failure due to purchasing based on low cost. Research shows that these tend to arise because of poor planning, non-compliance to agreements and incomplete project evaluations among others. Taken into account the effort put into the purchasing process one wonders why this kind of purchasing approach is still practiced. Best Value Procurement uses the expertise of subcontractors to streamline the total value chain by making the potential values and risks explicit and the management of each accountable to one party in the chain. The question is whether this kind of purchasing approach could and should be the approach to any given purchase done. In this paper lessons learned from six cases at construction company Ballast Nedam are described. Successful and less successful implementations are shown, as well as lessons learned on each of the PIPS filters. Conclusion is that the BVP/PIPS can be used in both construction and non-construction purchasing and in onetime projects as well as with IDIQ contracts.</p> Guido J. E. Koreman, MSc Copyright (c) 2011 Journal for the Advancement of Performance Information and Value Wed, 01 Jun 2011 00:00:00 +0000 BVP at 's-Hertogenbosch: Buying a Retention and Settling Tank <p>The city of s-Hertogenbosch was introduced to the best value process by Heijmans and their engineering consultant group Breijn B.V. Under the leadership of Breijn, s-Hertogenbosch visionaries, and the assistance of researchers from Hogesxchool Zuyd, a best value PIPS test was accomplished to deliver a retention and settling tank. The version of PIPS used implemented the concept of dominance, value, and the transfer of risk and control to the vendor. The paper reviews the process; it also reveals that the best value selection finished as the least expensive option with the highest customer satisfaction rating.</p> Gard van Hulzen Copyright (c) 2011 Journal for the Advancement of Performance Information and Value Wed, 01 Jun 2011 00:00:00 +0000 Hiring an External Advisor Hydrology at Water Board De Dommel <p>Best value PIPS has been introduced in the Netherlands in the procurement of construction systems. The Water Board De Dommel utilized best value PIPS to select engineering consultant services. The test differed from other Dutch tests in that the PIPS process used the pre-award phase before the award phase. The best value selection of engineers also proposes that design firms can compete on value (price and performance). The engineering selection process was much closer to the original BVP/PIPS than the construction phases. The major lesson learned is the BVP/PIPS is a paradigm shift. The success of the test led to the recommendation of more professional services using BVP/PIPS.</p> Bas Plehn Copyright (c) 2011 Journal for the Advancement of Performance Information and Value Wed, 01 Jun 2011 00:00:00 +0000 Tender Environmental Impact Assessment Extra Discharge Capacity Afsluitdijk <p>The project Extra Discharge Capacity Afsluitdijk (EDCA) of Rijkswaterstaat aims to enlarge the capacity of the discharge sluices by building new sluices, necessary because of the climate change. Rijkswaterstaat has decided to outsource the responsibility to write the Environmental Impact Report to an engineering firm. Specific problems in the outsourcing of engineering jobs involve the limited liability of the engineering firms as well as how they receive little or no feedback from the design and build phase. This paper tests the hypothesis that BVP can also be successful in the area of engineering services. The result shows that BVP can be successful in the procurement of engineering services. The application of BVP at EDCA was very distinguishing in selecting the best value vendor. It identified a vendor at a lower cost, shorter time schedule, and with more innovative ideas than the Rijkswaterstaat project team.</p> Stan van Veenendaal, MSc, Wiebe Witteveen, MSc Copyright (c) 2011 Journal for the Advancement of Performance Information and Value Wed, 01 Jun 2011 00:00:00 +0000