Effectiveness of Qualifications-Based Selection Criteria in Design-Build and Construction Manager at Risk Procurements: An Empirical Analysis

Owner organizations are increasingly using alternative project delivery methods of design-build (DB) and construction manager at risk (CMAR). Documented advantages of these delivery methods include the opportunity to improve project constructability, value engineering, innovativeness, and collaboration. The experience, qualifications, and technical expertise of construction managers and design-build team are of immense importance to achieve these performance improvements. The procurement methods used in alternate project delivery are therefore heavily focused on best value (BV) and qualifications-based system (QBS) evaluation criteria. Substantial research has been conducted on the performances of alternate project delivery, yet little research has been conducted to describe the merits of various evaluation criteria in differentiating the qualification and expertise of the selected bidder. The objective of this study was to document the selection outcomes of the selected bidder and identify which evaluation criteria achieves the greatest differentiation among competing bidders for alternative project delivery. A data sample of 63 alternate project delivery across North America was compiled. The sample mainly consisted of vertical building projects, with a few horizontal utility and park projects. The research analyses empirical data of BV and QBS procured projects. The results showed that in a BV procurement, half the time the selected bidder was the lowest bid. Also, almost all the time the lowest bidder was selected, they were also the best qualifications. The results also revealed that schedule, technical proposal, and interview achieved the greatest differentiation among competing bidders, whereas cost and related experience (RE) achieved a moderate differentiation. The evaluation criteria which required past performance information from the bidders achieved the least differentiation. The research contributes by analyzing the evaluation team scores for selected bidder and effectiveness of different evaluation criteria. It also contributes practical guidance to both owners and DB/CMAR firms. Owners can optimize the inclusion and weighting of their evaluation criteria in order to ensure the selection of qualified bidders. Conversely, DB and CMAR firms can strategize their business development efforts to emphasize evaluation criteria which can have the greatest differentiation from competitors, thereby increasing the chance of being selected.