Comparison of two infrastructure project implementation models in a developing country

Abstract

A comparative analysis of public sector infrastructure projects implemented using a traditional public sector model against projects implemented using a modern management contractor model is presented. Traditionally, the implementation of public sector construction projects in South Africa is undertaken by an implementer such as the Department of Public Works. However, in 2014, the Western Cape Education Department created a framework contract and employed two management contractors with single-point accountability to implement maintenance and upgrading projects alongside those implemented in the traditional manner. A total of 122 projects implemented by management contractors are evaluated and compared with 35 implemented by the Western Cape Department of Transport and Public Works based on the cost performance, time performance and professional services costs of the two approaches. The practice of including contingency and provisional sums in contracts distorts the cost performance analysis, and superficial comparisons can be misleading. The management contracts delivered more projects on time. The professional services costs associated with management contracts was 9·2% compared to 15·6% for public works projects. The overall evidence demonstrates that the management contracting system is efficient and suited to the nature of maintenance and upgrading projects and delivers significant advantages.