Abstract
There is increasing adoption of framework contracts (FC) for construction project delivery in South Africa, but it is not yet clear what the performance of the approach is in accomplishing client's expected outcomes of projects being delivered on time, within budget and to required quality and satisfaction. In this study, the performance of FC and the variables that influences the performance is investigated empirically. A qualitative research methodology was adopted for the study. Data were collected via semi-structured interviews with key informants of eight purposively selected client organizations employing FC in South Africa. From the findings, FC is indicated to have performed spectacularly in dealing with unnecessary cost overruns, time delays, and improvement in the quality of delivery. However, it was reported that the approach work best for repetitive works and when a client has the intention of a long-term programme of work. In which case, clients also have to take care to avoid complacency from the contractors. The results provide substantial evidence that FC can perform better than the conventional approaches to short-term relationships and contracts. The result of the study provides insights that can encourage construction stakeholders to appreciate and adopt FC as a viable alternative approach for construction project delivery.
Highlights
The performance of projects is primarily measured using key indicators such as the cost, time, quality and satisfaction objectives
Without having to return the budget money for a fiscal year.” - “I wouldn’t say quality wise it is better, because you’ve got measures.” - “It assists and typically reduces the procurement period.” - “Provides technical capacity for rural municipalities.” - “It saves you time to go to the market.” - “It’s better for labour development.” - “So under any circumstances, it makes 110% sense to have an framework contracts (FC) because it safeguards the interest of any company, more than anything else, it ensures that we have an expedited resolution of the problem that we have.” - “In terms of quality of delivery, I will say there is a benefit.” - “You are able to reduce the time spent on the tender process.”
The use of traditional approaches for construction project delivery is greater in practice but there is growing adoption of FC in South Africa
Summary
The performance of projects is primarily measured using key indicators such as the cost, time, quality and satisfaction objectives. Projects which are delivered within cost and schedule; and to required quality and satisfaction are regarded to have performed successfully. Laryea and Watermeyer [4] attributed the poor performance of construction projects to the development and adoption of inappropriate procurement strategies. Indicating the need for developing and adopting appropriate construction procurement strategies for construction project delivery. The underperformance of the traditional procurement strategy is attributed to the fragmentation, adversarial, arms-length and short-term relationships which characterised the procurement strategy [8, 9]. A shift from the traditional procurement to procurement strategies that internalise collaboration and long-term relationships such as framework contracts are advocated and it is gaining adoption in the construction industry
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