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Budget-driven procurement

Möllemann, D.L. (2018) Budget-driven procurement.

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Abstract:The contract award method ‘budget-driven procurement’ (BDP) was investigated by means of a literature review and 16 interviews with field experts. It has been argued that BDP can be a useful method to purchase “maximum quality” within a fixed budget. However, BDP is not a widely used method and – before a change in the European Directives in 2014 – there have been discussions as to whether it is allowed by law or not. This paper covered literature about the (dis-)advantages, requirements and applicability of BDP. The findings show a range of advantges and disadvantages of BDP, of which the disadvantages, as well as an unclear legal status for this method, were found to be the main reasons for a low utilization of BDP. It was concluded, that, even though BDP can be validly utilized in all purchasing situations, it is more applicable in transparent markets, and in innovation-, design-, or service-based purchases. In those situations, and only if the market requirements are met, BDP is likely to highten, or even maximise the quality in tenders.
Item Type:Essay (Master)
Faculty:BMS: Behavioural, Management and Social Sciences
Subject:85 business administration, organizational science
Programme:Business Administration MSc (60644)
Link to this item:http://purl.utwente.nl/essays/74949
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