Best Value Solution Designed in a Developing Country

Authors: Dean Kashiwagi (Arizona State University), (PhD, Fulbright Scholar, PE), Jacob Kashiwagi (Arizona State University), (MS), Abraham Kashiwagi (Arizona State University), and Kenneth Sullivan (Arizona State University), (PhD, MBA)


For the last two years, researchers have been working with parties in Malaysia to implement best value practices. After two years of research work, the effort has many lessons learned. Lessons learned include a combination of factors that make the best value approach difficult in a developing country such as Malaysia. The different strata of economic levels give the upper levels (owners) a greater perceived ability to control the supply chain even though they may lack the expertise. This causes owners to attempt to deliver construction by controlling the vendors, both professionals and contractors. This increases the difficulty moving from a price based or owner directed system to a best value environment, which releases control to experts. The authors use deductive logic models which show decision making, direction, and control negatively impact accountability, proactive behavior, and the use of expertise. The two-year research program results in addressing the issue of how a buyer in a developing country can utilize the expertise of experts, and how the expert can change their function to get a controlling owner to use their expertise. The paradigm shift needs to take place among the elite and the visionary, before the overall environment can make the change. The product of this research project is to meet the requirements of a visionary group of quantity surveyors in Malaysia.

Keywords: Best value approach, developing countries, Information Measurement Theory (IMT), Kashiwagi Solution Model (KSM)