An Empirical Study to Assist Owners in Selecting the Right Procurement Method for Design-Build Projects

ABSTRACT

In design-build (DB), owners use procurement methods such as best value, qualification-based and sole source to offer a more objective approach when selecting design-builders. The aim of this study was to provide an empirical analysis that can assist the procurement method decision by examining how different project characteristics influence the procurement method selection and comparing DB project performance within the different procurement methods. The study statistically analyzed 160 DB projects completed between 2008 and 2019 worth over $14 billion. The results showed that best value is the most predominantly used procurement method and project characteristics such as project type, owner type, and contract method affect the selection of procurement methods significantly. Best value procurement is more likely to use lump sum contracts while qualification based is more likely to use GMP. Civil infrastructure projects and public owners tend to use best value more frequently while private owners use qualification based more often. In terms of performance comparison, projects with qualification-based procurement have better schedule performance while those with sole source have better cost performance. The findings provide practical considerations for owners in selecting the right procurement method for their projects, which can lead to improved delivery of DB projects.

KEYWORDS:

• Procurement method
• design-build
• best-value
• qualification-based
• sole source
• performance
• project characteristics