Assessing the contractor performance outcomes of construction framework for the UK public sector

Document Type

Conference Proceeding

Publication Date

2013

Keywords

Public sector construction, Framework procurement, Contractor performance outcomes

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), 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.

Source Publication

The 38th Australian Universities Building Education Association (AUBEA) Conference 2013, Nov 20-22, University of Auckland

First Page

908

Last Page

918

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