The Best Value Based Supplier Selection Research In Construction Industry Procurement

With the deeply application and development of lowest-price bidding method used in China, more and more construction owners and sponsors pay much attention to the problems coursing by suppliers in construction projects. Facing with the increasingly competition pressure and the diversities of construction market, a lot of scholars begins to study how to increase the performance rate in construction industry, how to get the best suppliers not only based on the price but the value they can benefit to the whole construction value chain.First, the author analyzes the troubles coursed by supplier from the macro and micro ways: which are brought by unqualified suppliers during the shortcomings of Lowest-price bidding; non good selection to supplier can bring more unbalanced information during construction bidding. It comes to the conclusion that supplier selection stage is the first step of construction procurement application and the input of the procurement, which plays a very important role in performance application and the valuation of the whole project, successful or not.Secondly, the author illustrates a lot of relative academic theories, which can help us to analyze the true reasons of supplier selection, problems faced, the importance of supplier and benefit to construction value chain, besides the performance-based, value-base procurements and "successful project".Thirdly, after a lot of necessary analysis and study, the author puts forward her own supplier selection evaluation model system. Set up evaluation role, a series of indexes, Factors Value Analysis Measure, and "Two stage-Five step" Model and so on.The last, the author uses the demonstrations to verify the feasibility and usage of "Tow stage-Five Step" supplier selection model, such as PIPS from Dean Kashiwagi, and the application of Accenture Consulting Firm etc.