Best Value Implementation Program For Contractors by Michele ...

ABSTRACT
The price based marketplace has dominated the construction
industry. The majority of owners use price based practices of
management (expectation and decision making, control, direction, and
inspection.) The price based/management and control paradigm has not
worked. Clients have now been moving toward the best value environment
(hire contractors who know what they are doing, who preplan, and
manage and minimize risk and deviation.) Owners are trying to move from
client direction and control to hiring an expert and allowing them to do the
quality control/risk management. The movement of environments changes
the paradigm for the contractors from a reactive to a proactive, from a
bureaucratic/non-accountable to an accountable position, from a
relationship based/non-measuring to a measuring entity, and to a
contractor who manages and minimizes the risk that they do not control.
Years of price based practices have caused poor quality and low
performance in the construction industry. This research identifies what is
a best value contractor or vendor, what factors make up a best value
vendor, and the methodology to transform a vendor to a best value
vendor. It will use deductive logic, a case study to confirm the logic and
the proposed methodology.
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