• Title/Summary/Keyword: Design-Bid-Build

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Whole Life Performance Bid Evaluation in the Korean Public Sector

  • Park, Kenneth Sungho;Lim, Hyoung-Chul
    • Journal of the Korea Institute of Building Construction
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    • v.12 no.6
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    • pp.682-700
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    • 2012
  • Over the last several years, Korea has increasingly adopted design-build for public construction projects. There is a much greater awareness of the need to change to a system based on 'Value for Money', which is high on the government's agenda. A whole life performance bid evaluation model is proposed to aid decision makers in the selection of a design-builder. This is based on the integration of a framework using an analytic hierarchy process, as the bid awarding system is being changed from one based on the lowest price to one based on best value over the life-cycle. Key criteria such as whole life cost, service life planning and design quality are important through the key stages of the evaluation process. The model uses a systematic and holistic approach, which enables the public sector client to make better decisions in design-builder selection, which will deliver whole life benefits based on long-term cost-effectiveness.

The Impact of Design-Bid-Build Procurement Methods on Project Performance in Libya

  • Ghadamsi, Alaeddin;Braimah, Nuhu
    • Journal of Construction Engineering and Project Management
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    • v.6 no.2
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    • pp.16-23
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    • 2016
  • The use of inappropriate procurement methods to deliver construction projects has long been acknowledged as a major source of poor project performance and is particularly problematic for the Libyan Construction Industry. Poor procurement method selection has been recognised as a major contributory factor to frequent time and cost overruns. This paper offers a way of selecting specific procurement methods to maximize successful project performance. The methodology involves an intensive review of relevant literature, followed by a semi-structured questionnaire survey. The key findings of the study reveal that 11 out of its 12 common selection criteria exhibit a significant contribution to one or more project performance criteria (time, cost and quality). Project clients should therefore prioritise these criteria when selecting a design-bid-build method. Knowledge of the criteria that contribute positively to project performance will also enable clients to work out, prior to and during construction, the best measures and provisions for successful project outcomes.

A Comparative Analysis of Integrated Project Delivery in Construction Versus Traditional Methods

  • Peressini, Anthony;Bristow, James;Motahari, Mahmoud;Karakouzian, Moses
    • International conference on construction engineering and project management
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    • 2022.06a
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    • pp.669-677
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    • 2022
  • In this paper, different types of traditional project delivery methods in the construction industry were explored and a comparative analysis against Integrated Project Delivery (IPD) were performed. The advantages of IPD method for all parties, owner/engineer/architect/general contractor, were explored by reviewing the most recent literature. The literature suggests that IPD method should be the dominating project delivery method and diluting the conventional methods such as Design-Bid-Build due to more collaborative and mutually beneficial ways of doing construction; IPD is newer and a more comprehensive method to capture the intrinsic values of project collaboration. This paper presents a comparison of the commonly used methods of project delivery, Design-bid-build, CMAR, & Design-Build and addresses their advantages and disadvantages in differing project scopes and sizes. Several industry leaders with experience in the four types of project delivery addressed were surveyed. The survey results show an overwhelming desire for future projects to go toward IPD from the contractor/owner/RDP. The biggest obstacle facing a project from using IPD appears to be trust.

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Project Performance Comparison Based on Different Types of Project Delivery System (사례연구 분석을 통한 발주방식별 성과비교)

  • Lee, Soo-Kyong;Jung, Young-Soo
    • Proceedings of the Korean Institute of Building Construction Conference
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    • 2011.05a
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    • pp.207-209
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    • 2011
  • Numerous reports show that alternative project delivery systems (PDSs) such as design-build (DB), construction management at risk (CMR), and design-build-maintain (DBM) are increasingly used in many countries. This study compared characteristics of each PDS (design-bid-build (DBB), DB, CMR, or DBM) by analyzing quantitative data from 9 research articles. In order to compare characteristics between DBB and alternative PDSs, the study is based on principal 3 factors - Time, Cost, and Quality. DB shows the best performance in the time part and also the cost performance depending on facility type and project size. The performance of quality has minor difference among different PDSs. These results support the fact that using an appropriate PDS by the characteristic of a project makes high value of efficiency and productivity.

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A Study on the Evaluation System for Bidders to According to the Best Value Bid System by Technology Proposal Method (기술제안방식의 최고가치낙찰제도 입찰자 평가체계에 관한 연구)

  • Yeo, Sang-Ku;Lee, Gun;Lee, Hyun-Chul;Go, Seong-Seok
    • Proceeding of Spring/Autumn Annual Conference of KHA
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    • 2009.04a
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    • pp.211-216
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    • 2009
  • Bidding systems in the domestic public construction work have been amended many times since the lowest-bidding system was implemented in 1951. However, this hasn't had much success. Competition in technical development among companies has declined as the contracts for buildings are given to company which submits the lowest price without considering traits of projects. In addition, as the construction market turns to the limitless competition system due to FTA(Free Trade Agreement), advanced techniques are needed to promote the national competitive power. Considering the needs of the times, Korean government announced that "Best Value Contract (Design-Bid-Build)" and "Bridging Contracts (Design-Build)" are included to 4 existing bidding systems in October 2007. Thus this study aims to suggest devised the evaluation criteria including major items for evaluating bidders, in order to establish and revitalize the best-value bid system successfully.

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Estimation Method of the Competitive Bid-price in Bid-rigging of Public Construction (기댓값 분석에 따른 공공공사 입찰담합의 가상경쟁가격 산정방법)

  • Jeong, Kichang;Kim, Wooram;Kim, Namjoon;Lee, Jaeseob
    • Korean Journal of Construction Engineering and Management
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    • v.19 no.3
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    • pp.52-60
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    • 2018
  • Korea's public construction projects are under construction through bidding, however, due to the nature of the bidding, collusion between participants can occur. The collusion of bids accordingly damages the client. So, it is necessary to calculate the appropriate fictitious competition price to compensate for this. In this regard, econometrics methods are generally used, but there are limitations and issues arising from the nature of construction, especially design-build bid. Therefore, this study proposes a method to estimate reasonable competitive bid-price in design-build bid. It derives the lowest bid-price from the design submitted by the proponent and estimates the competitive bid-price by examining the factors according to the penetration rate according to the technical level of the tester, the skill level of the competitor, and the type of tester. Based on the method proposed in this study, a reasonable price can be derived that reflects the characteristics of the design and construction bidding bidder selection method and also it can be used as a reference material in the actual bidding process as well as calculating the damage due to the answer.

Detecting Red-Flag Bidding Patterns in Low-Bid Procurement for Highway Projects with Pattern Mining

  • Le, Chau;Nguyen, Trang;Le, Tuyen
    • International conference on construction engineering and project management
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    • 2022.06a
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    • pp.11-17
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    • 2022
  • Design-bid-build (DBB) is the most common project delivery method among highway projects. State Highway Agencies (SHAs) usually apply a low-bid approach to select contractors for their DBB projects. In this approach, the Federal Highway Agency suggests SHAs heighten contractors' competition to lower bid prices. However, these attempts may become ineffective due to collusive bidding arrangements among certain contractors. One common strategy is the rotation of winning bidders of a group of contractors who bid on many of the same projects. These arrangements may also be specific to a particular region or vary in time. Despite the practices' adverse effects on bidding outcomes, an effective model to detect red-flag bidding patterns is lacking. This study fills the gap by proposing a novel framework that utilizes pattern mining techniques and statistical tests for unusual pattern detection. A case study with historical data from an SHA is conducted to illustrate the proposed framework.

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Cost Performance Comparison of Project Delivery Methods in Public Sector - Focusing on Mediator Effect of Biddropping on Change Orders - (공공건설공사 발주방식에 따른 비용성과 실증비교 - 설계변경에 대한 낙찰률 매개효과를 중심으로 -)

  • Moon, Hyosoo;Lee, Hyun-Soo;Park, Moonseo;Lee, Bogyeong;Joo, Seonu;Son, Bosik
    • Korean Journal of Construction Engineering and Management
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    • v.16 no.5
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    • pp.86-96
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    • 2015
  • According to previous research, the reason why Design-Build(hereinafter "DB") outperforms Design-Bid-Build(hereinafter "DBB") in terms of cost is due to less change orders(hereinafter "COs"). However, if biddropping was low for DBB resulting into increasing COs, then it would be wrong to conclude that DB is superior due to less COs. Therefore, in order to confirm such misjudgment, the attempt to comprehensively analyze biddropping, COs and delivery method was made as previous methods had analyzed either the relationship between delivery method and COs, or biddropping and COs. This research uses path analysis, which simultaneously compares effect sizes on COs according to delivery method and biddropping based on the project type, and validated the mediator effect. The research proved that DB outperforms DBB due to less COs cannot be validated as biddropping caused a mediator effect by intervening between the delivery method and COs for specific project types. Therefore, the mechanism of delivery method acts on COs through biddropping was established. Also, the identity of biddropping was investigated in a different perspective from previous research. Based on this result, this research is expected to help determine a delivery method by considering the mediator effect of specific projects and evaluate performance.

QUANTITATIVE ANALYSIS ON PROJECT PERFORMANCE ANALYSIS AND DELIVERY METHODS

  • Seta Ohanesian;Jin-Lee Kim;Tang-Hung Nguyen;Ok-Kyue Kim
    • International conference on construction engineering and project management
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    • 2013.01a
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    • pp.332-337
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    • 2013
  • Various project delivery methods have been utilized by owners over the years to maximize project performance. The design-build delivery method is being increasingly used due to the advantages it can offer to an engineering construction industry. Numerous studies have advocated the use of design/build over the traditional design/bid/build delivery approach. This study represents comprehensive analysis of 40 projects from the construction industry and shows that design/build method may not provide all the benefits to project performance. This study found timesaving was a definitive advantage of design/build project delivery, but the positive effects of cost changes was not convincing. Based on the results of the study, the project management expertise and experience of the contractor may have a greater impact on project performance outcomes than focusing on project delivery strategy only.

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Assessing Contractor Competition in Competitive Bidding for Highway Construction Projects Using Network Analysis

  • Le, Chau;Arya, Minakshi;Moriyani, Muhammad Ali;Le, Tuyen
    • International conference on construction engineering and project management
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    • 2022.06a
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    • pp.18-24
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    • 2022
  • State highway agencies (SHAs) typically apply a competitive procurement procedure to select contractors for their design-bid-build projects. Since the level of competition affects construction bid prices and project outcomes, the Federal Highway Agency (FHWA) suggests SHAs seek ways to improve competition among contractors continuously. However, they rarely conduct an empirical assessment of the current competition level necessary to identify room for improvement. Besides the number of bidders on a project, other factors such as winning or losing rates among the contractors in previous projects can also indicate the degree of competition; only a few contractors may have won the majority of the projects in a specific region. However, few studies have investigated such factors. This paper proposes a network analysis-based approach to evaluating contractor competition levels of highway projects using historical bid tabulation data. The proposed method provides insights into overall competition levels, the determination of competitive contractors, and winning rate distribution among contractors.

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