The value of project execution services: a problem and uncertainty perspective

Magnus Hellström, Robin Wikström, Magnus Gustafsson and Hanna Luotola

Construction Management and Economics, 2016, vol. 34, issue 4-5, 272-285

Abstract: Like services in general project execution services ought to be marketed and sold based on the value they add rather than the cost they accrue. Project services are typically complex and abstract, and hence their benefits are difficult to directly explicate. The aim is to investigate how contractors and suppliers can overcome this dilemma and exercise value-based selling in terms of the typical services they provide. A design science inspired study was used to create a service configurator addressing the dilemma. At the same time the configurator provided a means for studying the value identification and communication process in six sales projects. It is concluded that contractors and suppliers ought to approach customer value by looking for problems that create uncertainty in the underlying investment and to match them with suitable services. Key in communicating the value of the services is to focus on creating certainty as to the parties’ ability to cope with the uncertainty in the investment with the help of these services.

Date: 2016
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DOI: 10.1080/01446193.2016.1151062

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