Influence of best value procurement on design-build projects: a grounded theory study

ABSTRACT This study examines the entire life-cycle of best-value projects to identify factors that can help key stakeholders build collaborative teams. Fifteen design-build projects (three medical, five offices, four educational, and three lodging buildings) that were procured using best-value were selected. For each project, knowledgeable stakeholders (i.e., owner’s representatives and contractors) were interviewed. The interview data were coded and analyzed to develop a grounded theory where forming a collaborative team is the core element. This study found that the following factors impact the degree of success achieved through the implementation of best-value: early involvement of key stakeholders, collaborative problem-solving, co-location, sharing information using technology, providing early project planning that includes clear definitions of each party’s responsibilities, building trust between parties, maintaining continuous dialogue through regular meetings, and having joint risk management. As far as academia is concerned, this research is one of the first studies that uses grounded theory qualitative method to better understand the role of project procurement on team behavior. The findings of this study can help practitioners and researchers leverage best-value procurement approach to build high-performance teams during design-build projects.