Price Based Environment of Design and Engineering Services

Authors: ADean Kashiwagi (Arizona State University), (PhD), Geoffrey S. Child (Arizona State University), (PhD), Jacob Kashiwagi (Arizona State University), (PhD), Kenneth Sullivan (Arizona State University), (PhD)


Design Services have not met the value and expectations of the clients and their project managers. A previous research project studied the impact of the price based award environment on construction practices, and this research proposes that designers’ current practices and expectations are also price based and not performance based asperceived by many due to the qualifications based system [QBS] approach. The authors also propose that the qualification-based system [QBS] is a price based system and should be replaced by a best value approach, which includes a best value selection process such as the Performance Information Procurement System (PIPS.) The proposed design model will give control and risk management capability back to designers by having the designers utilize expertise, create transparency utilizing a weekly risk report (WRR) and a risk management plan (RMP.) The new model utilizes the expert’s expertise to create transparency, giving the advantage to the higher performing professionals. The researchers interviewed over 400 professionals to validate the concepts of the best value approach for the design community.

Keywords: Qualification Based System [QBS]; Best Value; Performance Information Procurement System.