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Owner/Contractor Work Structure: A Preview

Publication No
RS111-1
Type
Research & Development Product
Publication Date
Dec 01, 1996
Pages
22
Research Team
RT-111
DOCUMENT DETAILS
Abstract
Key Findings
Filters & Tags
Abstract
The shifting of many engineering resources from owners to contractors for project planning and execution has created a problem in today’s construction industry: corporate-level and project-level work structures are increasingly difficult to organize.
Key Findings

Thirty recommended project competencies were identified to support the capital projects delivery process. Examples include:

  • Conceptual Cost Estimating: Preparation of estimates at various stages of scope development for purposes of project option selection
  • Constructability: Incorporating construction knowledge and experience into project development and execution
  • Construction: Installation of permanent facility equipment and materials including all support required to do so
  • Construction Management: Management oversight of field construction operations and startup
(RS111-1, p. 8)

Perceptions of business unit managers, operations managers, technical managers, and project managers are:

  • Most downsizing is driven by attempts to reduced fixed costs.
  • Reengineering of entire organizations has occurred.
  • Loss of expertise has occurred through retirements.
  • Owners have fewer experienced project managers.
  • Contractors are not adding skills necessary for outsourcing.
  • Contractor responsibilities are increasing, but staff size is not keeping pace.
  • Owner representatives today often lack decision-making authority, resulting in poorly informed decisions by owners, with varying effectiveness. 
(RS111-1, p. 11)
Of the 30 key compentencies, four competencies should be retained by the owner and one competency (construction) should be outsourced. The remaining 25 competencies are subject to structural alignment. (RS111-1, p. 13)
Filters & Tags
Research Topic
Owner/Contractor Work Structure
Keywords
Competencies, Organizational Structure, Rightsizing, Outsourcing, Alignment, Project Resources, Work Structure, Downsizing, Alliance, Partnering, Construction Management, Project Management Oversight, rt111