Optimizing Cost and Schedule Performance through Best Value Project Delivery: Application within a Design-Build Project

13 May Optimizing Cost and Schedule Performance through Best Value Project Delivery: Application within a Design-Build Project

By Brian Lines, Anthony Perrenoud, Kenneth T. Sullivan

July 2013

Abstract
Performance in the construction industry is wrought with challenges and owners often are victim to cost and schedule overruns, particularly on high profile projects that are large, complex, and risky. Alternative project delivery methods and techniques are continually being developed and implemented by buyers of construction services to address these problems. The Best Value Business Model (PIPS) has been rigorously tested and shown to improve project performance via its three-phased approach to project delivery. PIPS increases performance throughout the construction project lifecycle by utilizing value-based selection processes, pre-contract planning methodologies, and performance measurement systems. The objective of this research is to provide a detailed case study of PIPS application on a design-build project to deliver a highly complex research facility with tight schedule and budget thresholds. The implementation process is discussed in detail and project results are provided and analyzed to demonstrate the ability of PIPS to improve project performance. Special attention is paid to the ability of PIPS to optimize project cost and schedule performance through the application of a value-based selection methodology, a pre-contract preplanning period, and a weekly risk management system.