An Opposite Design-Build Procurement Method: Competing on Quality with a Fixed Price

Author: Leif D. Houck
Publisher: 10th Nordic Conference on Construction Economics and Organization

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Purpose For a public project leader charged with a construction project, it can be crucial to meet the budget, while maximizing the qualities within a construction project. A method to achieve this is to use the “opposite design build” procurement method, in which the price is fixed and the contractors compete on adding a wide range of qualities to the project. However, such procurement approaches are rare, and it is difficult to find models on how to implement such an approach. Design/Methodology/Approach This study firstly looks at the literature on design-build, quality-only as the main selection criterion and to some degree on constructors’ bidding behaviour. Secondly, it explains a model for a design-build, quality-only procurement designed within the public tendering legislations. Thirdly, it investigates the outcome of the model applied to a specific case in Norway. Findings There seems to be a research gap within literature and cases on design-build, quality-only selection with a fixed price. The developed model allowed for negotiations, which led to more comparable and improved bids. In the investigated case, and the client was able to implement more qualities in the project than expected within the budget. Research Limitations/Implications The researcher was himself partly involved in the process as an advisor. Practical Implications The developed method is relatively simple and might readily be applied by any client to maximise a project’s qualities within a given fixed price. Originality/Value The long-term value should be to widen the range of useful procurement methods.

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