PhD Final Thesis April 2013.pdf - Anglia Ruskin Research Online

Thesis Keith Gale 2013H2: Framework agreements can provide significant performance improvementscompared with traditional discrete tendering methods in terms of overallproject outcomes.Overall project outcomes are derived from data collected from the case studyprojects – 164 in total (60 discrete and 104 framework) in relation to aggregation ofcritical success factors decided by the client organisation. Raw project data identifiedin hypothesis H1 are collated from contemporary records and processed using definedcalculations to arrive at values for factors. Aggregation of these critical successfactors produces a project success index measuring an objective value ofperformance for each project. Comparison of results from the two groups areanalysed to test this hypothesis. In addition to critical success factors and outcomes,an examination of project characteristics will be undertaken to determine if theseaffect performance measures.Group B: Extrospective view of economic performance with frameworkagreements:H3: There is significant difference in production costs between frameworkagreements and traditional tendering methods due to reduced competition.Economic theory dictates that operation of a perfect market requires a large numberof suppliers competing for selection in order to obtain the lowest possible price.Traditional procurement methods employed this economic proposition by usingextensive approved lists with large numbers of suppliers in order to gain the lowestprice as a benchmark of efficiency. According to analysis from central governmentreports in chapter one, this premise is flawed as it does not usually offer the bestvalue overall.Irrespective of views from government reports, reference to professional practice hasidentified that some practitioners feel that use of framework agreements restrictmarket competition, thereby increasing the value of tender prices. Hypothesis 3follows perfect market economic theory in order to determine if tender prices areaffected by the restrictive market offered by framework agreements. Comparisonbetween production costs of different tendering methods is extremely difficult to83