Traditional procurement such as the Design-Bid-Build (DBB) method continues to be the main form of contracting for capital investment projects for roads. The only full exception is England's Highways Agency, which does not use the DBB method. Recently, several countries have been procuring medium and lager sized projects via Design-Build (DB) and Design-Build-Finance-Operate (DBFO) or PPP models. These innovative models have some common advantages such as quicker completion, value for money, usually some savings, alternative concepts that would not be normally be realized, better project coordination, and more aligned to public values.
The Design-Build-Operate-Maintain (DBOM) is seldom practiced except for Finland and has not really become a model of choice, but merely an exception. Many of the contractors interviewed in study indicated that the DBOM model would cause them to practice better quality and be more attuned to LCC thinking. It might be interesting to determine if there is future acceptance of this model and if the risks can be managed by the private sector. Also, the DBOM model requires a significant amount of performance requirements to be developed and most road authorities have not developed these performance requirements to a significant level yet.
It is interesting to note that the Design-Build-Finance-Operate (DBFO) or PPP model seems to be progressing forward as compared to the similar study by Pakkala (2002). More and more countries have tested and tried the PPP model and many more other countries have been interested in this model. One of the main reasons for the increase in popularity and acceptance of the PPP model has been the lack of public funding for new projects. Also, some countries are testing the efficiency of the PPP model to determine the performance against traditional and Design-Build models. It is a very wise decision to thoroughly evaluate and conscientiously study all aspects of the PPP model for any proposed projects. There are so many dynamics involved and securing a project over a long-term period. It requires much research, wisdom, and a huge learning process for the client as well as the service providers. Also, each country has differing cultural reference points and each country needs to decide whether the PPP model is appropriate for projects in their country.
The "Alliance model" appears to have impressive concepts and interviews have indicated good results and alignment to public values. There is not enough evidence and quantitative data to make any further conclusions, but the leadership characteristics of this model seem to be theoretically excellent. This model requires a totally different attitude and may be too difficult step forward, especially if the personnel in the entire alliance are not aligned to superior communication, trust, excellent innovative practices, and better leadership principles.
Despite the economic efficiency of Design-Build and PPP projects being rated higher than DBB according to Koppinen and Lahdenpera (2004), the better results from partnering and collaborative type projects as mentioned in Hughes e. a. (2006), and more Value for Money" (VfM) from innovative methods, these innovative methods appear to account for a minor portion of the project delivery methods used for road projects. However, they probably will be used for larger projects and when there are bold champions among the decision makers. It appears as if change is very slow and of course, it is difficult to change the mindset of people.
Some significant concepts can be concluded from this study and are listed below:
• Practices that have early involvement of the contractor
• Some type of consultants & contractors rating systems
• Limiting the amount of design development before tendering
• Optimizing risks
• Continuous improvement and re-engineering of the models
• Fully developed performance measures
• Client and industry learning process
• More quality based approaches
Finally, there is a great deal of effort and time required when moving to these newer models and practices, but the potential to achieve better results has been realized in many countries. Some of the achievements have been to develop a contracting industry, savings compared to the traditional model, better quality in most instances, globally more competitive, increasing exposure to foreign markets, reducing administrative burden, and delivering projects at a faster pace.
Capturing the effectiveness of each of these models is a challenge and requires a great deal of international networking, research, and applicability to the local practices and obligations. It should be the objective for road authorities to find the best methods and continually search for those practices that will achieve the results in meeting better roads for the valued customers - the road users.