Highway maintenance: impact of framework agreements upon project financial performance

Terence Lam; Keith Gale

doi:10.1080/01446193.2014.892628

Highway maintenance: impact of framework agreements upon project financial performance

Terence Lam^*, Keith Gale

^*Corresponding author for this work

School of Architecture and Built Environment

Research output: Contribution to journal › Article › peer-review

16 Citations (Scopus)

Abstract

Use of frameworks is recognized by the UK Industrial Strategy: Government and Industry in Partnership as an innovative procurement method that may be used to deliver cost savings. Support for potential efficiencies from use of frameworks by practitioners is, at best, mixed. A single case study was conducted to investigate the financial performance of frameworks for highway maintenance projects within the context of a major county council. Results from independent samples t-tests of 60 framework and 60 traditional discrete projects verified that use of a
framework revealed no significant changes in production costs of tender prices, but significant reductions in total transaction costs for engagement and performance monitoring. These findings suggest that use of framework
procurement methods can support significant cost savings when used within a public sector environment.

Original language	English
Pages (from-to)	460–472
Number of pages	13
Journal	Construction Management and Economics
Volume	32
Issue number	5
DOIs	https://doi.org/10.1080/01446193.2014.892628
Publication status	Published - 2014

UN SDGs

This output contributes to the following UN Sustainable Development Goals (SDGs)

SDG 9 Industry, Innovation, and Infrastructure

Keywords

Financial performance
framework agreements
highway maintenance projects
public sector procurement
UK

Research Group keywords

Adaptation, Value, and the Built Environment

Access to Document

10.1080/01446193.2014.892628

Cite this

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AB - Use of frameworks is recognized by the UK Industrial Strategy: Government and Industry in Partnership as an innovative procurement method that may be used to deliver cost savings. Support for potential efficiencies from use of frameworks by practitioners is, at best, mixed. A single case study was conducted to investigate the financial performance of frameworks for highway maintenance projects within the context of a major county council. Results from independent samples t-tests of 60 framework and 60 traditional discrete projects verified that use of a framework revealed no significant changes in production costs of tender prices, but significant reductions in total transaction costs for engagement and performance monitoring. These findings suggest that use of framework procurement methods can support significant cost savings when used within a public sector environment.

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KW - framework agreements

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KW - public sector procurement

KW - UK

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Highway maintenance: impact of framework agreements upon project financial performance

Abstract

UN SDGs

Keywords

Research Group keywords

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