Examining Relationship between Design-Bid-Build Selection Criteria and Project Performance in Libya

Abstract

The construction industry’s poor project performance has often been attributed to the use of inappropriate procurement methods. This has partly led to previous studies focusing largely on the development of scientific models for the selection of the best method for any given project. To add to knowledge advancement of this subject matter, this paper reports on an aspects of a wider study aimed at exploring the relationship between procurement selection criteria and the key project performance outcomes in the context of the Libyan construction industry. The part of the study reported here involves using a questionnaire survey to explore this link for traditional form of procurement (Design-Bid-Build). The study findings show that only 8 out of the 12 common selection criteria exhibit significant correlations with one or more project performance outcomes (time, cost and quality) as follows: (1) the criteria relating to “certainty of project duration”, “ cost certainty”, “clarity of project functionality” and “involvement of project client” are positively associated with project cost performance; (2) those relating to “design complexity” and “organising and reviewing project activities” are positively associated with time performance; (3) the criterion relating to “project quality level required” is negatively associated with time and cost performance, whilst it is positively associated with quality performance; and finally (4) criteria relating to “controllable project variations” and “clarity of project functionality are a positively associated with quality performance outcome. Although all the existing criteria are important, the results suggest that it would be reasonable for clients to give more attention to controlling those criteria of significant correlation with performance outcomes” when procuring projects with DBB method. The findings also form the basis of further work that is currently being pursued to develop a formalised model for this relationship.