Best value procurement in the construction industry
Contents |
[edit] Introduction
The best value procurement (BVP) approach is a method of purchasing construction works, services and so on. It considers criteria, such as quality, reliability and expertise, rather than just price to assess value.
[edit] History
This method was developed by the Performance Based Studies Research Group (PBSRG) in the United States (where it is most commonly used). It is also practised in the United Kingdom and the Netherlands, where it is referred to as ‘prestatie inkoop’ or performance procurement.
[edit] BVP or MEAT?
The idea behind best value procurement is to compare the long term costs and benefits associated with the vendor selection process. It is similar to the Most Economically Advantageous Tender (MEAT) principle, and both use assessment criteria such as:
- Quality.
- Price or cost using a cost-effectiveness approach.
- Technical merit.
- Aesthetic and functional characteristics.
- Accessibility.
- Social characteristics.
- Environmental characteristics.
- Innovative characteristics.
- After-sales service and technical assistance.
- Delivery conditions such as date, process and period.
In addition to MEAT criteria, best value procurement also assesses the potential for eliminating (or minimising) risk, so procurement decisions are made based on predictability. Best value procurement assigns weightings to each criteria - including reliability- and vendors or contractors are scored on each. Decisions are based on the final tally.
[edit] The process
There are four phases of the best value procurement process::
- Preparation.
- Selection.
- Clarification.
- Execution.
Being data driven, best value procurement simplifies the decision making process. This minimises the influence of vendors in the procurement process and maximises the power of the procurer.
[edit] Related articles on Designing Buildings
Featured articles and news
Plumbing and heating systems in schools
New apprentice pay rates coming into effect in the new year
Addressing the impact of recent national minimum wage changes.
EBSSA support for the new industry competence structure
The Engineering and Building Services Skills Authority, in working group 2.
Notes from BSRIA Sustainable Futures briefing
From carbon down to the all important customer: Redefining Retrofit for Net Zero Living.
Principal Designer: A New Opportunity for Architects
ACA has launches a Principal Designer Register for architects.
A new government plan for housing and nature recovery
Exploring a new housing and infrastructure nature recovery framework.
Leveraging technology to enhance prospects for students
A case study on the significance of the Autodesk Revit certification.
Fundamental Review of Building Regulations Guidance
Announced during commons debate on the Grenfell Inquiry Phase 2 report.
CIAT responds to the updated National Planning Policy Framework
With key changes in the revised NPPF outlined.
Councils and communities highlighted for delivery of common-sense housing in planning overhaul
As government follows up with mandatory housing targets.
CIOB photographic competition final images revealed
Art of Building produces stunning images for another year.
HSE prosecutes company for putting workers at risk
Roofing company fined and its director sentenced.
Strategic restructure to transform industry competence
EBSSA becomes part of a new industry competence structure.
Major overhaul of planning committees proposed by government
Planning decisions set to be fast-tracked to tackle the housing crisis.
Industry Competence Steering Group restructure
ICSG transitions to the Industry Competence Committee (ICC) under the Building Safety Regulator (BSR).
Principal Contractor Competency Certification Scheme
CIOB PCCCS competence framework for Principal Contractors.
The CIAT Principal Designer register
Issues explained via a series of FAQs.