Purpose – The construction industry in the UK has a history of client dissatisfaction. A potential solution for improvement is through use of a framework agreement, where long-term relationships between parties may focus upon performance. The purpose of this paper is to assess whether use of framework agreements for highway maintenance projects can result in significant improvement for performance when compared with engagement of contractors through traditional discrete methods. Design/methodology/approach – A single-case study approach is used to investigate outcomes set within the context of a major county council in the UK. Quantitative data compiled from 164 civil engineering highway maintenance projects are separated into two groups – one represents those procured using traditional discrete methods and the other within a framework agreement. Findings – Results from independent-samples t-tests identified significant improvements in overall performance and in time (finish on time), cost (payment accuracy) and quality (defects and health and safety) resulted from the framework agreements. Research limitations/implications – The results of this study are derived from one unique and typical case, but they form a baseline upon which further research can build to test their significance in many other settings for construction and maintenance programme, especially in housing, education and highways. This research does not cover the impact of framework agreements on production and transaction costs which should be treated as a separate area for further research. Practical implications – Councils have a statutory duty to provide and maintain a wide range of local services and facilities, including transportation and road network. Conclusions from this study support use of framework agreements within a public sector environment, leading to improvement for contractor performance due to longer term relationship with clients. This in turn enhances quality of works and hence value for money from the councils’ highway budgets. Originality/value – Construction frameworks are a relatively new idea. Although a number of frameworks have been concluded, there is very little analysis regarding performance outcomes. This research tested and confirmed the validity of impact of this new approach on contractor performance.

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Collaborative construction frameworks have been developed in the United Kingdom (UK) to create longer term relationships between clients and suppliers in order to improve project outcomes. Research undertaken into highways maintenance set within a major county council has confirmed that such collaborative procurement methods can improve time, cost and quality of construction projects. Building upon this and examining the same single case, this research aims to develop a performance model through identification of performance drivers in the whole project delivery process including pre and post contract phases. A priori performance model based on operational and sociological constructs was proposed and then checked by a pilot study. Factor analysis and central tendency statistics from the questionnaires as well as content analysis from the interview transcripts were conducted. It was confirmed that long term relationships, financial and non-financial incentives and stronger communication are the sociological behaviour factors driving performance. The interviews also established that key performance indicators (KPIs) can be used as an operational measure to improve performance. With the posteriori performance model, client project managers can effectively collaboratively manage contractor performance through procurement measures including use of longer term and KPIs for the contract so that the expected project outcomes can be achieved. The findings also make significant contribution to construction framework procurement theory by identifying the interrelated sociological and operational performance drivers. This study is set predominantly in the field of highways civil engineering. It is suggested that building based projects or other projects that share characteristics are grouped together and used for further research of the phenomena discovered.

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We demonstrate that the use of Performance Frameworks for the procurement of construction projects by public sector organizations in the UK (specifically, in England) leads to significantly improved outcomes in terms of time, cost, quality, sustainability and closer relationships, than the traditional ‘open tender’ approach of procuring discrete projects, individually. We identify the factors that lead to such improvements. We label these: supplier’s task performance factors (project staff, execution approach, competence of firm and structure of firm); supplier’s contextual performance factors (trust and collaboration, culture and conscious behaviour); and client’s organisational factors (incentives, performance monitoring, procurement approach and communication). And we offer a performance improvement model that will help project managers to select the most appropriate suppliers at the procurement phase, to achieve successful project outcomes. The model can also be used to drive project performance further, by adopting client’s organisational factors during the procurement and construction phases. By applying the research conclusions, suppliers will be able to focus on communicating their strengths in the relevant aspects of task and contextual performance for technical tender proposals, and so increase the value of their services and the probabilities of winning work. And the analysis can be used by policy makers to help in drafting regulations and legislation on formal frameworks, in ways that will improve the delivery of policy objectives.