Best Value Procurement (BVP) in a Mega Infrastructure Project

Abstract

The Norwegian Government recently established a new public company called New Roads with the aim to create more value for money within road investment. To meet government expectations, New Roads has started to use Best Value Procurement (BVP) in mega infrastructure projects. BVP emphasizes contractor selection and risk management from the beginning of the project to add value and reduce waste in all project phases. The purpose of this research is to explore the experience of client and vendor personnel with the implementation of BVP so recommendations can be given for future application. In addition to a literature review, one of the first BVP projects was studied through 11 in-depth semi-structured interviews with key informants. Both client and vendor applauded the approach. Three significant shared positive experiences with the method were found: better risk management, realistic performance expectations, and efficient procurement procedure. BVP is one of several approaches that can be used to award contracts based on qualification rather than price. In addition, the method brings risk management to the beginning of the project.