The management of large capital improvement construction programs involves the efforts of both internal staff and external service providers.An understanding of how construction programs are managed, either through internal or external staff, is essential in tracking future trends and determining improvements and best practices in the management process.To address this need a survey was developed by a focus group of industry professionals.The survey was distributed to the membership of a number of professional organizations that represented owners within the construction industry.The survey attempted to determine both the current status of managing a construction program throughout a broad range of demographic characteristics (including the definition of program management) and the hiring of an external program manager.The survey and subsequent analysis that focused on the management of a construction program examined the following key points: role of a program manager, internal capabilities, outsourcing, sourcing strategy, and management costs.The survey and subsequent analysis that focused on hiring an external program manager examined: program management fees, type of firms used in managing a construction program, factors considered when hiring a program manager, and organizational structure.The results of the survey have also been segregated by public and private organizations to denote any differences in the management of public and private construction programs.A key contribution of this research was determining the percentage of outsourcing within each phase of the construction process and the number of service providers considered in the selection process.Also, a multifaceted definition of program management was developed from the research for use in clarifying the concept of program management within construction.
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Benchmarking the Management of Construction Programs