Whole life performance tender evaluation for design-build in the Korean public sector

The increasing use of design-build by the public sector in Korea has prompted the need for a greater emphasis on seeking ways to change the present tender selection system from one based on lowest price, to one based on best value over the whole life of the facility. The research investigated the current status of design-build in the public sector and the process of tender selection. It considered the relevant guidelines and ways in which whole life cost could be integrated into a system of whole life cost planning and appraisal (WLCPA). A criteria matrix of the top 80 critical factors, according to their relative importance throughout the project whole life, was developed. This was informed by an extensive survey of clients, contractors and sub-contractors, all with extensive experience in the industry. It was validated by a panel of experts to establish its practical application. The survey revealed that design-build and turnkey contracts are the most appropriate contract types for using WLCPA in Korea. Furthermore, cost, quality, scope and time are more important than contract/administration, risk, human resource, health and safety to all respondents over a project life cycle. In particular, 'cost' is the most important factor for all principal industry participants in Korea in assessing whole life performance. A whole life performance tender evaluation model is proposed to aid decision makers in the selection of an appropriate design-builder based on the integration of a framework using an analytical hierarchy process. Key criteria like whole life cost, service life planning and design quality, are important in the three key stages of the evaluation process. The model uses a systematic and holistic approach which enables a public sector client to make better decisions in design-builder selection, based on long term cost effectiveness and whole life. As the popularity of design-build as a method of public sector procurement in Korea grows, tender selection based on more than just the lowest tender will have both economic and environmental gains. The model produced in this research can aid decision-makers in a tender selection which will deliver whole life benefits.