Selecting the best contractor to get performance: On time, on budget, meeting quality expectations

Dean Kashiwagi, Richard E. Byfield

Research output: Contribution to journalArticle

25 Scopus citations

Abstract

The most important element in construction procurement is contractor selection. Particularly, hiring contractors who are performers. Why then do facility owners continue to select non-performing contractors? This paper presents a system for contractor selection that has resulted in a 99 per cent success rate for completing facility construction on time, on budget and meeting or even exceeding quality expectations. The Performance Information Procurement System (PIPS), a full information system that discourages non-performers, identifies the best-performing contractor for the project and motivates the contractor to improve their performance on the current project. Based on $3.5m research and over 300 tests, PIPS has the ability to minimise the owners’ risk (not being on time, on budget, and meeting quality expectations). PIPS allows facility and project managers the ability to control the contractor selection process through the use of performance information, assuring that the right contractor is selected for each project.

Original languageEnglish (US)
Pages (from-to)103-116
Number of pages14
JournalJournal of Facilities Management
Volume1
Issue number2
DOIs
StatePublished - Apr 1 2002

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Keywords

  • Best value
  • Performance based procurement
  • Performance contracting

ASJC Scopus subject areas

  • Strategy and Management
  • Management of Technology and Innovation
  • Business and International Management

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