An Assessment of the Performance of Framework Contract Projects

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 of 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.

Keywords: Framework contracts, Performance, Performance variables, South Africa