Collaboration in a Best Value Project - A case study of Best Value Approach (BVA) in the Norwegian Construction Industry

Abstract

The procurement of construction services is a large part of the investments in the public sector, and therefore affects both the society and project participants within the construction industry. Despite that, construction projects in Norway tend to be delayed and go over budget, especially in the public sector. The industry has been characterised with a traditional adversarial behaviour but has the last two decades headed towards a more collaborative and integrated path. However, achieving collaborative relationships in the construction industry are challenging, as the industry is characterised by one-off contracts and short-term gains. Therefore, there is a need for a project management and procurement method that enables collaboration in the construction industry. A project management and procurement method that might enable collaboration, is Best Value Approach (BVA). The methodology aims to select contractors based on their capabilities, experiences, and qualifications, in addition to price. The objective of this research is therefore to examine if and how BVA enables collaboration, operationalised through its two facets, coordination and cooperation. Hence, our research question is “How might BVA enable collaboration between the client and the main-contractor in a construction project?” We have chosen to conduct a case study with embedded subunits, as the selected case is within a single organization but includes several units. The single case is Omsorgsbygg, and the embedded subunits of analysis are the construction of Vollebekk and Munkerud kindergartens. The primary data were collected through semi-structured interviews. We based our research on the work of Gulati et al., (2012), which indicates that by properly utilising coordination and cooperation in a project, it is possible to achieve collaboration. Our study shows that there needs to be a high level of coordination and cooperation in a BV project. Through the two projects we have seen the possibility of achieving both coordination and cooperation if the method is used correctly. The findings reveal that what the parties do in the early phases, in terms of coordination and cooperation, facilitated collaboration in the execution phase.