THE IMPACT OF BVP IN A TVD BASED PROJECT DELIVERY

Abstract

Best Value Procurement (BVP) and Target Value Delivery (TVD) are registered to be increasingly applied in construction, and in some cases, also in the same project. The purpose of our paper is to address these two concepts theoretically and empirically to see if challenges occur when combining BVP and TVD. We deduce the proposition from a theoretical analysis: Best Value Procurement (BVP) is inconsistent with the Target Value Delivery (TVD) approach. We have examined a theoretical-oriented case study of a Norwegian highway construction project. Data was gathered by document analysis, direct observation, and semi-structured interviews. One finding was that BVP did not hinder the client from being a proactive actor and solution enabler in collaboration with the general contractor team. The study shows a lack of alignment of joint project development with a BVP and TVD structure. BVP has proved good results in projects using transactional contracts. However, in projects based on a relational contract, a more direct dialogical procurement approach may be more productive. The paper contributes to the literature by pinpointing conceptual and empirical counterproductive differences when combining BVP and TVD.