Laryea, S and Watermeyer, R (2016) Early contractor involvement in framework contracts. Proceedings of Institution of Civil Engineers: Management, Procurement and Law, 169(1), pp. 4-16. ISSN 17514304
Abstract
Early contractor involvement (ECI) has been used for construction procurement in about 30 countries. The reasons for its adoption include collaboration, integration of design and construction, value for money and utilisation of market capacity. At least two models of ECI are reported in the literature. A different model of ECI has been used in framework contracts at Wits University in South Africa. The research aim was to analyse how this type of ECI works and its value to the success of projects. Data were collected through ten interviews, documentary analysis and observation of one ECI session. Through framework agreements, an opportunity is created to have ECI. Once concept designs and elemental cost estimates are prepared, the contractor is brought in to assist with value-engineering of the design and production drawings. ECI produced 12% cost savings in one project and 32% in another. Team integration and ECI are supported by framework agreements and NEC contracts. Although contractors receive no remuneration for the involvement in design development, they value the benefits of developing early cost models and production plans. Conditions for successful adoption are an intelligent client, a framework agreement, collaborative contracts, cost-based pricing strategies, the professional team's flexibility and a committed contractor.
| Item Type: | Article |
|---|---|
| Uncontrolled Keywords: | contracting; procurement; project management |
| Index terms: | South Africa, documentary analysis, value-for-money, integration, collaboration, cost model, drawing, early contractor involvement, strategy, interview, cost estimate, cost saving, design development, project management, design and construction, construction procurement, concept design, framework agreement, pricing |
| Subjects: | design process, evaluation, Geography, economic analysis, contractual arrangements, project management theory and practice, economics, management, organizational analysis, data collection methods, financial and cost management, data science, technical documentation |
| Topics: | Organizational Design, Design Practice, Cost Management, Business Strategy, Research Practice, Value Management, Procurement, Geographical Context, Project Management |
| Descriptive scope: | 4 PCEA |
N.B. Descriptive scope is a count of how many of the five facets of empirical research are indicated by the words used in title, abstract and keywords. It is not intended as a judgement on the research; merely a count of the kind of word we would expect to indicate Phenomenon, Concepts, Theoretical framing, Empirical techniques, Analytical techniques. If all five are present, then a code of “5 PCTEA” will indicate this. If you feel the coding for this record is questionable, we welcome discussion around the terms we matched or the way we categorized them. The facet you would expect may not be coded, or a facet may be coded inappropriately. This can also bear on a larger question, of which facets should be treated as defining in construction management research. Please get in touch, and we will look at it. More details here