Learn Why Vendors Expertise is The Key to Success

Dean Kashiwagi, PhD, P.E., IFMA Fellow Director, Kashiwagi Solution Model Inc.

The International Council for Research and Innovation in Building and Construction (CIB) W117 and Performance Based Studies Research Group (PBSRG) are using the Best Value Approach (BVA) to reduce project risks. They have identified two main issues that often hinder clients from successfully delivering projects. First, the procurement process typically focuses too much on the client’s role, assuming they are the expert in managing and reducing project risks. Second, clients rely on project management techniques that assume they can oversee vendors to control costs and ensure good performance. However, BVA emphasizes that the key to success lies in the expertise of the vendors.

According to BVA, vendors play a critical role in managing both the unique aspects of each project and the planning process from start to finish. It also highlights the importance of simplifying weekly progress reports for all stakeholders. PBSRG has applied this approach to over 2,000 projects worldwide, totaling $6.7 billion in value, achieving 98% customer satisfaction, and cutting costs by 30%. They are the only project management group to show the positive impact on project performance through long-term studies in the Netherlands, the US Army, and Minnesota construction projects.

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