Target Value Delivery in Bid Process

Abstract

The use of the traditional tendering procedure is predominant in the construction industry; although it is ill-equipped for the current complex and dynamic nature of the industry. Various Lean construction scholars have noted that while construction clients are demanding for more complex and dynamic projects, there is a need to transform the traditional tendering procedure which focuses on the lowest cost for the selection of contractors, while neglecting their technical and management qualifications to one that focuses on needs and requirement of the project. Collaborative approaches like Target Value Design (TVD) can be incorporated in the tendering procedure to ensure that the project needs are met. The case study method was used to demonstrate how TVD principles were used to make competing companies collaborate and contribute during the pre-tender selection process in the traditional tendering procedure to improve project outcomes. Semi-structured interviews were conducted with 17 professionals who participated in 2 case study projects. The study provides empirical data showing that the incorporation of TVD mitigates the reported challenges of the traditional tendering process. Cost reduction/certainty, reduction of waste/rework/variation, stakeholders' satisfaction, accurate cost specifications, early involvement of stakeholders, tenderer's competency and identification of problems were some of the benefits identified.

Collaborative Dialogue During the Pre-Tendering Phase to Maximize Project Value Generation

“…The last two effects usually make the project prone to suffering schedule delays and cost overruns project (Wondimu et al, 2018). Multiple studies suggest that collaborative approaches such Target Value Design (TVD) and Integrated Project Delivery (IPD), as alternative to the traditional tendering methods, can be integrated into the procurement phase to meet the needs of the project (Mosey, 2019;Musa & Pasquire, 2020;Whelton et al, 2004).…”

Exploring Value Generation in Target Value Design Applying a Value Analysis Model

“…A tool is a structured technique or instrument that facilitates the implementation of principles, while a management practice refers to concrete actions associated with increasing productivity [62][63][64]. Table 1 includes the first documented project practices that are used and recommended [47,48]; the fundamental practices listed by [27]; and updated, added, and recommended practices and tools that were associated with the TVD, lean design, and lean management by other authors [4,5,9,11,[15][16][17]55,60,61,[65][66][67][68][69][70][71][72][73][74][75][76][77][78][79][80].…”