Articles

Low-Bid Acquisition: A Broken System for Building Owners?

What is it: The Simplar Foundation critically examines the widespread use of low-bid acquisition methods in the construction industry, arguing that these practices prioritize cost over value, resulting in delayed schedules, higher long-term expenses, and adversarial project environments. Drawing on research and performance data, Simplar outlines the systemic inefficiencies of low-bid procurement and makes a compelling case for performance-based strategies that better align with long-term asset management goals.

Stakeholder Audience: Corporate-Institutional Owners, Real Estate Investors-Developers, Architecture-Engineering-Construction (AEC), Building Owners, Organizational Leadership, Facility Operations, Service Providers-Consultants, Legal-Risk Management, Regulatory Bodies, Trade-Professional-Standards Bodies

Inform or Action: Informational – encourages stakeholders to reassess procurement practices and consider adopting performance-based models.

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#BLMI #IFMA #Autodesk #Simplar #ConstructionProcurement #FacilitiesManagement #LifecycleThinking #ValueOverCost #SmartContracts