Project Case Studies

Selecting the Best Value for the Lowest Cost


Contractor Change Orders: 0%
Cost Impacts: 2.8%
Satisfaction: 10 out of 10 vendor risk rating by Client PM


Type: Best Value (PIPS)


Contractor: J.E. Dunn Construction

Designer: TSP, Inc.

Location: New Hope, MN

Contract: $26,000,000

Start Date:  March 2011

Completion Date: August 2012

North Education Center, New Hope MN

Intermediate School District 287 partnered with our group to implement the Best Value Model on the construction of a new classroom facility. Best Value procurement identified the selected contractor as being both the most qualified proposer and the lowest cost.

The risk- and value-focused procurement model clearly identified the best value contractor among the nine competing contractors. Best Value evaluations demonstrated that the awarded contractor understood the project needs and risks, as their Risk Assessment submittal and project team interviews both received the highest score.

North Education Center was completed with an overall 2.8% cost increase (0% contractor change orders) in August, 2012. The project was awarded the 2013 Minnesota Construction Association Choice Award, which honors one project that was completed through resourceful blending of construction techniques and professionalism.

District 287’s Facilities Director, Tom Shultz, identified the Best Value method for their success:
“If I’m the owner, I’m not the expert [in construction],” Shultz said. “I’m asking the experts to tell me how much it’s going to cost, and where the risks are in the building. The process doesn’t focus solely on price: it focuses on finding the best contractor to give you the best building.”

REFERENCE:  Tom Shultz,  Director of Facilities | | 763-550-7120

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