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

Thesis Keith Gale 20131.4 Aim and Objectives of this researchThe aim of this study is to assess whether the use of framework agreements forconstruction projects can result in significant improvement with performanceoutcomes when compared to engagement and management of suppliers withtraditional discrete arrangements without a significant increase in cost, and if this isrecognised, develop a procurement performance model to ensure continuousimprovement in performance outcomes can be achieved without a significantincrease in costs. A controlled case study method is used to measure the effects andassess differences between the two procurement systems. In particular, the objectivesof this research will consider specific elements of performance as follows:• investigate if construction project outcomes differ between the two methodsof procurement.• determine if any variance exists between production and transaction(engagement and performance monitoring) costs for projects procured withinframework agreements and those engaged through traditional procurement.• establish the performance drivers within the procurement process in order todevelop a procurement performance model to ensure continuousimprovement in performance with the engagement and construction stages ofa framework agreement.1.5 Relevance of this research to professional practice and the UK constructionindustryThe construction industry is a significant contributor to the economy of the UnitedKingdom. In 2010, the Gross Value Added (GVA) of the construction industry wasestimated to be £110 billion and this represented 6.8% of the total GVA of the UK(ONS, 2010). Gross Value Added is a measure of actual ‘added value’ of theindustry and excludes intermediate industry effects, taxes or subsidiaries on products.2.11 million workforce jobs are provided by the industry at March 2011 – accountingfor 6.7% of all workforce jobs for the UK (ONS, 2011). Of the total estimated valueof the industry, £41 billion is financed by the public sector (representing 37% of all9