The impact of client characteristics on the time and cost performance of collaborative infrastructure projects

Abstract

Purpose

Collaboration is thought to offer significant benefits over traditional contracts, however there is little existing research concerning how these benefits can be optimized. To address this gap, a survey investigated the impact of client characteristics on the time and cost efficiency of collaborative infrastructure projects. The paper aims to discuss these issues.

Design/methodology/approach

The survey of experienced senior practitioners of Australian collaborative infrastructure projects yielded 320 valid responses. Cluster analysis, one-way between group ANOVA tests and independent sample t-tests were used to confirm that three client characteristics are critical to time and cost performance: client sector (public/private); client experience with asset procurement; and client approach to price competition.

Findings

Projects procured by experienced private sector clients were found to meet targeted levels of performance, regardless of their approach to team selection. Among projects procured by experienced public sector clients, groups of relatively low and high performing projects could be distinguished, regardless of their approach to team selection. Projects run by teams selected competitively on non-price criteria prior to the pricing stage exhibited significantly better performance than those run by teams that competed on the price of the project to win the work.

Research limitations/implications

This study focussed only on analysis of three client characteristics. Future research may consider a broader range of contextual variables. Results are based on perceptual data rather than objective data.

Practical implications

The findings show collaborative infrastructure clients in the construction sector should be less concerned about inexperience than they might have been, and more interested in single-team selection approaches than they might have been.

Originality/value

The results indicate significant performance differences between client types. In particular, experienced public sector clients had more polarized performance outcomes, compared to the private sector.

Citation

Manley, K. and Chen, L. (2016), "The impact of client characteristics on the time and cost performance of collaborative infrastructure projects", Engineering, Construction and Architectural Management, Vol. 23 No. 4, pp. 511-532. https://doi.org/10.1108/ECAM-06-2015-0084