Rooney P, A R (2013) A case study of changing procurement practices on delivery of highways projects. In: Smith, S D and Ahiaga-Dagbui, D D (eds.) Proceedings of 29th Annual ARCOM Conference, 2-4 September 2013, Reading, UK.
Abstract
Despite many changes to industry best practice since the publication of the Latham and Egan report, the construction industry has been heavily criticised for inefficient procurement strategies. The publication of NEC 3 (the latest version of the New Engineering Contract) in 2005 instigated improved collaboration, flexibility, risk sharing and enhanced management practices, particularly in relation to public sector procurement projects. This study analyses the organisational benefits of changes to the procurement strategy, based on NEC 3 and including framework contracts and key performance indicators, to the Engineering Consultancy which delivers highways and transportation projects for Hampshire County Council. Quantitative data from 51 projects completed prior to 2008 when the new procurement framework was introduced was compared to data from 23 projects completed post 2008 to establish key areas of improvement. A case study approach was adopted comprising interviews with project managers, quantity surveyors and supervising engineers, together with further detailed data analysis from three typical projects. The results of the investigation demonstrate better predictability for projects delivered under the new procurement strategy as they were more likely to be delivered on time and to cost, and less likely to overrun on tender value. Other benefits identified include closer working relationships with contractors and faster agreement for compensation events, time extensions and valuations. This study supports the premise that such changes in procurement practices can lead to improvements in the efficiency and delivery of highways construction projects and overall methods of working.
| Item Type: | Conference Paper (Paper) |
|---|---|
| Uncontrolled Keywords: | framework agreement; highway; nec3; procurement; public sector |
| Index terms: | procurement strategy, public sector, New Engineering Contract, overrun, engineer, transportation project, data analysis, Latham, key performance indicator, case study, project manager, public sector procurement, interview, quantity surveying, framework agreement, efficiency, consultancy, publication, compensation, construction industry, investigation, collaboration, construction project, best practice, management practice |
| Subjects: | data analysis and analytics, contractual arrangements, project delivery, data collection methods, research dissemination and communication, profession, business, organization, dispute resolution, industry policy reports, project controls, administrative law, industry analysis, infrastructure and transport systems, management, performance management, production management |
| Topics: | Procurement, Governance, Roles and Professions, Project Management, Research Practice, Engineering Principles, Information Management, Business Strategy, Organizational Design, Time Control, Quality Management, Legal Issues |
| Descriptive scope: | 5 PCTEA |
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