Infrastructure investment and value for money consistently capture the attention of public decision-makers. Making the right decisions begins by deciding on which project to invest in and how to deliver or procure that particular project. This report presents the application of a ground-breaking new tool for informing procurement choices in major infrastructure projects.
The procurement of infrastructure projects (or procurement in general) provides public decision-makers with numerous choices which importantly define procurement outcomes. The wrong procurement strategy can lead to cost overruns, delays, high total cost or time of delivery, quality issues, or lack of innovation. Despite national and international efforts to date, most of the decisions in procurement are still based on expert judgment or tools which address only a particular aspect of procurement such as risk allocation.
The absence of holistic and evidence-based tools, therefore, raises serious concerns that infrastructure procurement around the world often leads to suboptimal outcomes.
Since 1999, professor Adrian Bridge at the Queensland University of Technology (QUT) has been working on a tool to comprehensively address the procurement strategy of a project. After several pilots, supported by Infrastructure Australia, the OECD joined forces with QUT to further evolve and trial the new approach
outside Australia. Nye Veier A/S, the Norwegian motorway company (hereinafter: Nie Veyer) came forward as a first mover in Europe.
Nye Veier AS (hereinafter Nye Veier) received a mandate from the government to try to reduce the cost, improve the speed, and quality of infrastructure delivery. Nye Veier set itself a target to reduce the infrastructure cost by 20% against the outline cost estimate1. In the hope of achieving that goal, Nye Veier was designed as a lean organisation (with currently around 170 employees) with a EUR16 billion portfolio of road investments to be executed by 2036. In the hope of achieving the targeted savings, Nye Veier chose the Design and Build (hereinafter: DB) contract as its workhorse delivery model and experimented also with Early Contractor Involvement.
The adoption of STEPS is expected to significantly upgrade Nye Veier’s capabilities in ensuring that
available funding is spent as efficiently as possible.

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