Best Value Implementation Program For Contractors by Michele ...

of a best value environment, the following key components are
consistently re-iterated.
High competition and high performance.
Referencing the earlier CIS, the Best Value quadrant has high
competition and high performance. High competition does not just mean
that there are many companies that can perform the service, but also that
they are allowed to participate. There are no pre-qualifications or ways of
limiting participation within the best value environment. The process of
selecting the best value vendor will filter out the vendors that are not the
best value. If a service provider or institution is better, then something
makes it better. Performance measurement is the process of finding out
what that something is (why is X better than Y?). The first step involves
identifying performance indicators (what underlies performance?),
"operationally defining" each criterion, then quantifying the criteria through
measurement (Fisher, 1994).
Differentiate by other than Price by measuring performance.
The contractors in this environment compete with other contractors
based on performance and price. The difficulties in differentiating between
the offerings of construction firms coupled with other unique features of
the construction industry, particularly, the method of price determination,
the nature of the final product, the forms of the demand for the
construction industry’s final output, and the fragmented nature of the
organization of construction processes, fuel the intensity of the
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