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Performance Partnering and Key Performance Indicators (KPIs) - A UK Perspective

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A key feature following the privatisation of Water Companies in the UK in 1989 was the emergence of Framework Contractors and Consultants who would provide services to their Utility clients. Many of the Water Companies established a series of Performance Partners which are typically reviewed every 5 years to match the investment cycles. This paper identifies the development of collaborative working within the UK Water Sector and highlights the various trends and models employed. Simple project specific partnering arrangements, utilising a multitude of Key Performance Indicators (KPI's) have been replaced with Framework and Alliance arrangements whereby the KPI's are more strategic and compliment incentivisation mechanisms. The main objectives of these new arrangements are to generate competition and deliver significant efficiency gains to the Client and provide further opportunities to their respective partners. In addition the paper examines the key challenges and benefits of performance partnering on the various stakeholders and the change in behaviour and attitudes this has generated.
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Keywords: Framework Agreements; KPI's; Performance partnering

Document Type: Research Article

Publication date: 2009-01-01

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