Realized economic efficiency of road project delivery systems

Tiina Koppinen, Pertti Lahdenperä

    Research output: Contribution to journalArticleScientificpeer-review

    9 Citations (Scopus)

    Abstract

    Lately project delivery methods where the implementer offers broader service packages are increasingly used in infrastructure projects worldwide. At the same time, the number of alternative project delivery methods has increased making selection of the best one difficult. The road authority must understand the features of the methods in order to select the most effective ones in terms of economic efficiency. To assist in the selection, this research compared the operating principles and performance of design-bid-build, construction management, design-build (DB), and design-build-maintain (DBM) based on an international interview survey and an extensive literature review. Opinions presented by the interviewees and literature review all pointed to the same direction. Based on the analysis of road procurement, broader service packages give, on average, better value for the money and enable clients to attain their goals better than more traditional methods. DB and DBM seem to outperform more conservative procurement methods both in cost and value generation terms. Each method, however, is particularly suitable for specific projects and should be selected accordingly.
    Original languageEnglish
    Pages (from-to)321-329
    JournalJournal of Infrastructure Systems
    Volume13
    Issue number4
    DOIs
    Publication statusPublished - 2007
    MoE publication typeA1 Journal article-refereed

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    Economics
    Costs

    Keywords

    • road construction
    • road construction and maintenance operations
    • road design
    • road management
    • road procurement

    Cite this

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    title = "Realized economic efficiency of road project delivery systems",
    abstract = "Lately project delivery methods where the implementer offers broader service packages are increasingly used in infrastructure projects worldwide. At the same time, the number of alternative project delivery methods has increased making selection of the best one difficult. The road authority must understand the features of the methods in order to select the most effective ones in terms of economic efficiency. To assist in the selection, this research compared the operating principles and performance of design-bid-build, construction management, design-build (DB), and design-build-maintain (DBM) based on an international interview survey and an extensive literature review. Opinions presented by the interviewees and literature review all pointed to the same direction. Based on the analysis of road procurement, broader service packages give, on average, better value for the money and enable clients to attain their goals better than more traditional methods. DB and DBM seem to outperform more conservative procurement methods both in cost and value generation terms. Each method, however, is particularly suitable for specific projects and should be selected accordingly.",
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    Realized economic efficiency of road project delivery systems. / Koppinen, Tiina; Lahdenperä, Pertti.

    In: Journal of Infrastructure Systems, Vol. 13, No. 4, 2007, p. 321-329.

    Research output: Contribution to journalArticleScientificpeer-review

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    AU - Koppinen, Tiina

    AU - Lahdenperä, Pertti

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    AB - Lately project delivery methods where the implementer offers broader service packages are increasingly used in infrastructure projects worldwide. At the same time, the number of alternative project delivery methods has increased making selection of the best one difficult. The road authority must understand the features of the methods in order to select the most effective ones in terms of economic efficiency. To assist in the selection, this research compared the operating principles and performance of design-bid-build, construction management, design-build (DB), and design-build-maintain (DBM) based on an international interview survey and an extensive literature review. Opinions presented by the interviewees and literature review all pointed to the same direction. Based on the analysis of road procurement, broader service packages give, on average, better value for the money and enable clients to attain their goals better than more traditional methods. DB and DBM seem to outperform more conservative procurement methods both in cost and value generation terms. Each method, however, is particularly suitable for specific projects and should be selected accordingly.

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    KW - road construction and maintenance operations

    KW - road design

    KW - road management

    KW - road procurement

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