Early contractor involvement in framework contracts

Abstract

Early contractor involvement (ECI) has been used for construction procurement in about 30 countries. The reasons for its adoption include collaboration, integration of design and construction, value for money and utilisation of market capacity. At least two models of ECI are reported in the literature. A different model of ECI has been used in framework contracts at Wits University in South Africa. The research aim was to analyse how this type of ECI works and its value to the success of projects. Data were collected through ten interviews, documentary analysis and observation of one ECI session. Through framework agreements, an opportunity is created to have ECI. Once concept designs and elemental cost estimates are prepared, the contractor is brought in to assist with value-engineering of the design and production drawings. ECI produced 12% cost savings in one project and 32% in another. Team integration and ECI are supported by framework agreements and NEC contracts. Although contractors receive no remuneration for the involvement in design development, they value the benefits of developing early cost models and production plans. Conditions for successful adoption are an intelligent client, a framework agreement, collaborative contracts, cost-based pricing strategies, the professional team’s flexibility and a committed contractor.