An Empirical Analysis of Project Performance Outcomes for Best-Value Procurement in Design–Bid–Build Projects

Abstract

The best-value (BV) procurement method has been increasingly used by owners in the context of design–bid–build (DBB) project delivery. The objective of this study was to determine whether a statistically significant difference existed between project performance outcomes (cost growth, schedule growth, and owner’s satisfaction) and the qualifications of the selected contractor as rated by the owner’s evaluation team during the bidding stage. The data sample consisted of 118 DBB vertical institutional projects, including project data on awarded cost and schedule information as well as the owner’s evaluation results of common qualifications-based evaluation criteria. Inferential testing of the performance variables showed that contractors who received the highest qualifications scores for technical proposals, past performance, and interviews achieved better project performance in several areas of schedule growth and owner’s satisfaction. This study contributes to the body of knowledge by identifying the extent to which higher qualifications correspond with incrementally improved project performance outcomes, which may help project owners make more informed procurement decisions.