Best Value Implementation Program For Contractors by Michele ...

Differentiate by processes.
The differentiation approach implies that a firm offers something
unique and unmatched by its competitors, and valued by the industry.
Such an approach calls for differentiation of aspects of the business such
as the products or services offered, the technology used, the delivery
system offered, or the marketing approach adopted. (Kale & Arditi, 2002)
Factors that affect competitiveness include management, organization,
and structure including techniques to attract expert personnel. Strategies
to identify differentiation then include providing the highest quality
services; determining methods of lowering and managing risk and looking
for outstanding people (Yates, 1994).
Plan to avoid risk and be efficient.
Risk Management is an important process within the best value
environment because risk can affect productivity, performance, quality,
and budget of a construction project (Kangari, 1995) Risk Analysis is the
study of the likelihood that an action will produce an unwelcome outcome
or “adverse effect” and the severity of that adverse effect. Risk
management develops or evaluates strategies for dealing with hazards. It
uses risk assessments and values to provide better ways for individuals
and groups to reduce hazards or cope with their effects (Swaney, 1996)
In the best value environment, managing risk is looking beyond
risks within the control of the contractor or technical risk. Strategic
management also includes managing those that are outside of their
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