Abstract
Purpose. The purpose of this study was to examine areas which may contribute to successful contract compliance and decrease cost overages in local government public works contracts. Methodology. Descriptive research was used to determine if certain contract provisions were contained within 302 public works contracts, in four cities. The research was conducted to determine whether these provisions were tied to program goals and whether certain other cost/goal variables, extracted from the local government contract processes, could be contributors to the accomplishment of more successful contracts. Selected readings and informal interview questions were asked of local government contract administrators to direct the research. The data were analyzed through measures of central tendency and expressed in mean averages and percentages. A process model was developed to provide a method for contract oversight. Findings. The research indicated that most of the selected contract provisions were included in local government contracts, but often do not reflect the current goals of a program. The research indicated that all costs are not considered a part of the total contract cost and often end costs exceeded the jurisdiction's beginning expenditures and percentage over cost goals. Each jurisdiction had a hierarchical monitoring system for oversight. There appeared to be no correlation between the number of change orders and cost overages. Recommendations. Local government jurisdictions must provide a systematic method for program management. Each program or portion of a program which is contracted out should be evaluated prior to the development of contract provision language and often during the contract term to ensure program goals and mandates will be met. Accurate cost accounting methods must be used to track and align all contract costs. The inclusion of construction management costs of the city resources used and the use of preestimates must be considered. Each contract description should be tracked yearly and scrutinized for the nature of change orders. Future research is crucial in determining systematic methods for program/goal alignment and contract oversight. These systems should include a partnering activity contract template.