Statistical comparison of performance based procurement and price based procurement

Darshit Parmar, Kenneth Sullivan, Charles Egbu, David Greenwood, Dean Kashiwagi

Research output: Chapter in Book/Report/Conference proceedingConference contribution

Abstract

Performance based procurement is a relatively new directive for contractor selection. Performance based procurement considers the value of the contractor's services in the award of the contract in addition to the submitted bid price. This study utilizes a statistical analysis comparing the abilities of the performance based and price based (lump sum low-bid) procurement processes to deliver project performance, to minimize the risks of the schedule, to minimize the risks of the budget, and in not meeting the client's expectations. The study also uses the results of statistical tests to identify the relative first costs of the processes and the client's management and control responsibilities. The results of the study show that a performance based procurement process delivers higher performance, minimizes subjective decision making, minimizes risk, and that cost and performance may have no direct relationship.

Original languageEnglish (US)
Title of host publicationConstruction Research Congress 2005
Subtitle of host publicationBroadening Perspectives - Proceedings of the Congress
EditorsI.D. Tommelein
Pages899-908
Number of pages10
StatePublished - Nov 14 2005
EventConstruction Research Congress 2005: Broadening Perspectives - Proceedings of the Congress - San Diego, CA, United States
Duration: Apr 5 2005Apr 7 2005

Publication series

NameConstruction Research Congress 2005: Broadening Perspectives - Proceedings of the Congress

Other

OtherConstruction Research Congress 2005: Broadening Perspectives - Proceedings of the Congress
CountryUnited States
CitySan Diego, CA
Period4/5/054/7/05

Keywords

  • Performance based procurement
  • Procurement
  • Project success
  • Risk

ASJC Scopus subject areas

  • Engineering(all)

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