An evaluation of the performance information procurement system (PiPS)

Since procurement is seen as a crucial element in project success, many methods have been developed to manage this process and many papers written about this issue. A remarkable contribution in this field comes from Dean Kashiwagi who underpins his support for the Performance Information Procurement System (PiPS) with claims of high project performance and client satisfaction. Kashiwagi’s explanation for PiPS’s success is based on a theoretical framework that is related to staff members’ ability to deal appropriately with information by making sound decisions based on more than implicit expectations and tacit experience. This does not, however, provide a fully satisfactory explanation. Our paper provides an overview of perspectives taken from the New Institutional Economics which, we argue, are better able to explain the effects of PiPS. The linking of these ideas to innovative PiPS elements makes it possible to effectively select and apply appropriate PiPS elements within suitable projects in the Dutch construction industry. This will enhance industry performance and should thus be of interest to all stakeholders.