Journal of Engineering, Project, and Production Management, 2015, 5(2), 60-70

A Procurement Performance Model for Construction Frameworks

Terence Y M Lam¹ and Keith S Gale²

¹Senior Lecturer, School of Natural & Built Environment, University of South Australia, Adelaide SA5000, Australia, E-mail: terence.lam@unisa.edu.au (corresponding author).

Project Management

Received January 21, 2015; received revision May 8, 2015; accepted May 9, 2015

Abstract: Collaborative construction frameworks have been developed in the United Kingdom (UK) to create longer term relationships between clients and suppliers in order to improve project outcomes. Research undertaken into highways maintenance set within a major county council has confirmed that such collaborative procurement methods can improve time, cost and quality of construction projects. Building upon this and examining the same single case, this research aims to develop a performance model through identification of performance drivers in the whole project delivery process including pre and post contract phases. A priori performance model based on operational and sociological constructs was proposed and then checked by a pilot study. Factor analysis and central tendency statistics from the questionnaires as well as content analysis from the interview transcripts were conducted. It was confirmed that long term relationships, financial and non-financial incentives and stronger communication are the sociological behaviour factors driving performance. The interviews also established that key performance indicators (KPIs) can be used as an operational measure to improve performance. With the posteriori performance model, client project managers can effectively collaboratively manage contractor performance through procurement measures including use of longer term and KPIs for the contract so that the expected project outcomes can be achieved. The findings also make significant contribution to construction framework procurement theory by identifying the interrelated sociological and operational performance drivers. This study is set predominantly in the field of highways civil engineering. It is suggested that building based projects or other projects that share characteristics are grouped together and used for further research of the phenomena discovered.

Keywords: Public sector, collaborative frameworks, performance drivers.

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Citation: Lam, T. Y. M. and Gale, K. S. (2015). A Procurement Performance Model for Construction Frameworks. Journal of Engineering, Project, and Production Management, 5(2), 60-70.

DOI: 10.32738/JEPPM.201507.0002

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