Testing the value of best value: Evidence from educational facilities projects

Gerald Eke, John Elgy

Research output: Chapter in Book/Published conference outputConference publication

Abstract

Contractor selection is one of the most important step in ensuring the success of any construction project. Failing to adequately select the winning contractor may lead to problems in the project delivery phase such as bad quality and delay in the expected project duration; which ultimately results in cost overruns. This paper presents an approach by which a what-if scenario can be analysed in educational facilities projects in the UK; therefore if the client selected the best value contractor for a project whose submitted price is not the lowest price, a what-if scenario was conducted to show how the lowest priced contractor would have fared had he/she been awarded the contract instead. This was done by analysing historic data of projects that have selected the lowest priced contractor. Then correlations were derived between variables; which was then be inputted into a Monte Carlo Simulation to analyse 3 real educational facilities projects that used a best value selection method. Using Monte Carlo Simulation allowed us to see all the possible outcomes of cost, and duration. It was concluded that selecting the best value contractor in educational facilities projects may not be necessary in terms of cost.

Original languageEnglish
Title of host publicationIGLC 2017 - Proceedings of the 25th Annual Conference of the International Group for Lean Construction
Pages19-26
Number of pages8
DOIs
Publication statusPublished - 1 Sep 2017
Event25th Annual Conference of the International Group for Lean Construction, IGLC 2017 - Heraklion, Crete, Greece
Duration: 9 Jul 201712 Jul 2017

Conference

Conference25th Annual Conference of the International Group for Lean Construction, IGLC 2017
CountryGreece
CityHeraklion, Crete
Period9/07/1712/07/17

Bibliographical note

Copyright © 2017 by Kenneth Walsh, Editor.

Keywords

  • Best value contractor
  • Contractor selection
  • Educational facilities projects
  • Lowest priced contractor
  • Monte Carlo Simulation

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