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Potential of Using Design-Build in Public Procurement

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  • Ing.Jakub Blatak

Abstract

Risk is an omnipresent effect in every area of human activity. Ignoring it can cause serious problems. This article is about eliminating risk in public contracts using the design-build method as a possible solution to reduce risk. First, we need to compare the standard method of design-bid-build with its alternative, design-build. Two methods are used in this article to analyse risk ¨C the main method is RIPRAN. The evaluated results provided by the RIPRAN method are processed by research data using a scoring method with a risk map. The analysis is going to detect the difference between the DBB and DB methods, primarily in appearance and its impact on the realization of the whole construction. The comparison identifies numerous contractual topics and risks included in both and gives deeper insight into risk management, both for the contracting party and also for public procurement. Applying risk analysis strategies and tools to the process will help decision-makers evaluate and select the most suitable delivery method consistently and defensibly. This paper gives generic risk factors related to both project types.

Suggested Citation

  • Ing.Jakub Blatak, 2016. "Potential of Using Design-Build in Public Procurement," Applied Finance and Accounting, Redfame publishing, vol. 2(2), pages 77-85, August.
    • Handle: RePEc:rfa:afajnl:v:2:y:2016:i:2:p:77-85
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    References listed on IDEAS

    as
    1. Doug Forbes & Simon Smith & Malcolm Horner, 2008. "Tools for selecting appropriate risk management techniques in the built environment," Construction Management and Economics, Taylor & Francis Journals, vol. 26(11), pages 1241-1250.
    2. Shou Qing Wang & Mohammed Fadhil Dulaimi & Muhammad Yousuf Aguria, 2004. "Risk management framework for construction projects in developing countries," Construction Management and Economics, Taylor & Francis Journals, vol. 22(3), pages 237-252.
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    More about this item

    Keywords

    design-build; RIPRAN; score method with a risk map;
    All these keywords.

    JEL classification:

    • R00 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General - - - General
    • Z0 - Other Special Topics - - General

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