Project performance measures for civil construction projects associated with different procurement strategies

Seeney, Luke (2015) Project performance measures for civil construction projects associated with different procurement strategies. [USQ Project]

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The Australian construction industry, operating in both the public and private sectors, ‘is the fourth largest contributor to Gross Domestic Product in the Australian economy’ (Nitschke, 2010, para. 2). Given the significance of this industry to the Australian economy, it is critical that the way in which contractors are procured for projects, and the way in which their performance is monitored, is undertaken with a ‘best practice’ focus with the aim of delivering excellent project outcomes for clients.

This dissertation investigated current procurement strategies and performance measures used on civil construction projects. Specifically, this dissertation was undertaken with the aim of determining the most common procurement strategies and performance measures used on civil construction projects, the relevance of these performance measures to the current industry, the opportunity to introduce new performance measures with a focus on driving innovation, establishing current industry thinking on procurement strategies and performance measures, and to determine industry thoughts on future approaches to procurement.

Using a single round Delphi study, semi-structured interviews using a feed forward methodology were undertaken with 20 industry experts. These experts were selected based on their employment history and knowledge regarding procurement and performance measurement, with participants selected from private, local and state government works agencies, engineering consultancies as well as contracting companies.

Using the Framework Approach, the qualitative data gathered in the Delphi study was assessed for trends and consensus of opinion amongst participants regarding the areas of investigation. It was identified that the industry continues to heavily utilise the construct only approach to procurement, with some use of the design and construct approach. Recession away from alternate approaches, such as alliancing, has been evident over the past five years.

Investigations identified that the industry has come to accept performance measurement as an embedded element of project delivery, and that the influence this has creates positive impacts during the delivery of projects. Participants expressed that the current areas of performance measurement are reflective of the industry, and that there is not a need for new areas to be introduced.

The concept of driving innovation through performance measurement was dismissed, and it was found that this should be done through the adoption of a suitable procurement strategy. Specifically, the industry nominated a preference of moving towards greater utilisation of the design and construct approach, with the belief that this could help to bring innovation into the industry. In addition to this, it was identified that this would also require a change of mindset from procuring agencies who currently stifle innovation through prescriptive specifications and standards, as well as a risk averse approach to project delivery.

The study presents a number of additional findings regarding issues associated with
current approaches to procurement and performance measurement, as well as discussing
the limitations associated with this research, and potential future studies that can build
upon this study.

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Item Type: USQ Project
Item Status: Live Archive
Additional Information: Bachelor of Engineering (Civil) project
Faculty/School / Institute/Centre: Historic - Faculty of Health, Engineering and Sciences - School of Mechanical and Electrical Engineering (1 Jul 2013 - 31 Dec 2021)
Supervisors: Tilley, Paul
Date Deposited: 31 May 2016 02:41
Last Modified: 31 May 2016 02:41
Uncontrolled Keywords: civil construction, project performance measures, procurement strategies, framework approach
Fields of Research (2008): 09 Engineering > 0905 Civil Engineering > 090599 Civil Engineering not elsewhere classified
Fields of Research (2020): 40 ENGINEERING > 4005 Civil engineering > 400599 Civil engineering not elsewhere classified

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