Benefits Realization Management Strategies (BRM) For Post-Contract Transaction (PTCS) Minimization in Design-Build (D&B) Projects

Abstract

There has always been the need to seek out procurement strategies that can achieve and even supersede the planned client’s needs and benefits within the construction industry. It is within this context that the Design-Build (D&B) approach is seen to have been initiated to enhance project delivery. It is without doubt that the needs of clients are dynamic which will require contractor team benefits realization management strategies to transform the way the built environment is designed, built and maintained to generate better value. There is a constant need to seek out new techniques and tools to be able to deliver construction projects within the context of developing a sustainable built environment. This paper seeks to establish the benefits realization management strategies for post-contract transaction costs minimization. Questionnaire survey data from a sample of major D&B contractors in Malaysia was analysed using Exploratory Factor Analysis (EFA) in SPSS to establish the specific D&B contractor team benefits realization management strategies. The questionnaire survey was designed based on collation of past literature findings and validated using a Delphi study undertaken with D&B experts. The findings indicate that all the three BRM strategies of D&B contractors' team have a strong and positive significant effect towards minimizing PTCs, even though stakeholder engagement was found to be highly significant with a potential of significant impact in D&B project delivery. It is also evident that D&B contractor team members that are proactive in managing changes are likely to perform optimally and minimize PTCs during the delivery process. The finding also shows that, the team ability to envisage potential disbenefits is critical to the success of PTCs minimization, as well as being engaged throughout the entire process of the delivery. It is also clear that contractor team should ensure outcomes are related to strategic objectives of the project or client requirements based on the requirement capture at the design brief stage.

Keywords: Design-Build (D&B), Benefits Realization Management (BRM), Post-Contract Transaction Costs