Assessing the contractor performance outcomes of construction framework procurement for the UK public sector
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(Published version)
Date
2013
Authors
Lam, T.
Gale, K.
Editors
Yiu, T.W.
Gonzalez, V.
Gonzalez, V.
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Conference paper
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Proceedings : 38th AUBEA International Conference, 2013 / Yiu, T.W., Gonzalez, V. (ed./s), pp.1-14
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38th Australasian University Building Educators Association Conference (20 Nov 2013 - 22 Nov 2013 : Auckland, New Zealand)
Abstract
The construction industry in the UK has a history of client dissatisfaction. Criticisms have been included within UK Government reports since the 1940’s. A potential solution for improvement is through formation of a framework agreement between contractors and a client, where long term relationships may focus upon performance. A typical yet unique local authority was examined to determine whether use of framework agreements for construction projects could result in significant improvement for contractor performance outcomes in respect of quality, schedule and budget when compared with traditional discrete procurement methods. Within the case, performance data was compiled from 164 highways maintenance projects and separated into two groups – one represents those procured using traditional discrete methods and the other within a framework agreement. All projects were subjected to Critical Success Factors (CSFs) determined by the client organisation allowing a Project Success Index (PSI) to be calculated for performance assessment of each project. Independent-samples t-tests proved that there were significant improvements resulted from framework agreements in overall performance and individually in quality (defects and health and safety), schedule (finish on time), budget limit (accuracy of payment applications). Conclusions from this study support the use of framework agreements as an innovative procurement for the wider public sector environment.
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