Lines, B C; Sullivan, K T; Hurtado, K C and Savicky, J (2015) Planning in construction: Longitudinal study of pre-contract planning model demonstrates reduction in project cost and schedule growth. International Journal of Construction Education and Research, 11(1), pp. 21-39. ISSN 1557-8771
Abstract
Planning is known to enhance construction project performance in terms of cost, schedule, and quality. Yet, project teams oftentimes do not incorporate effective planning methodologies, typically citing a lack of time or capability to conduct detailed planning. This article proposes a brief yet rigorous project planning method, known as the pre-contract planning model, which is uniquely implemented between the owner and selected contractor project teams prior to contract award with the intent of increasing project team alignment and facilitating greater risk transfer from owner to contractor. Results from a multi-case longitudinal study documented the impact of the pre-contract planning model in terms of three success criteria: cost growth, schedule growth, and owner satisfaction, where cost and schedule growth were measured as percent increase of initial contract values. Projects that implemented the pre-contract planning model were compared with a control group that operated via a traditional project delivery process where the selected contractor directly proceeded to contract award without a formal planning process. Analysis revealed that the pre-contract planning model reduced cost and schedule growth by as much as 54% and 70% percent, respectively, indicating that pre-contract planning may be a viable planning mechanism to be implemented in the construction industry.; Planning is known to enhance construction project performance in terms of cost, schedule, and quality. Yet, project teams oftentimes do not incorporate effective planning methodologies, typically citing a lack of time or capability to conduct detailed planning. This article proposes a brief yet rigorous project planning method, known as the pre-contract planning model, which is uniquely implemented between the owner and selected contractor project teams prior to contract award with the intent of increasing project team alignment and facilitating greater risk transfer from owner to contractor. Results from a multi-case longitudinal study documented the impact of the pre-contract planning model in terms of three success criteria: cost growth, schedule growth, and owner satisfaction, where cost and schedule growth were measured as percent increase of initial contract values. Projects that implemented the pre-contract planning model were compared with a control group that operated via a traditional project delivery process where the selected contractor directly proceeded to contract award without a formal planning process. Analysis revealed that the pre-contract planning model reduced cost and schedule growth by as much as 54% and 70% percent, respectively, indicating that pre-contract planning may be a viable planning mechanism to be implemented in the construction industry.;
| Item Type: | Article |
|---|---|
| Uncontrolled Keywords: | planning; construction; change order; project cost; schedule growth; success factors; contractors; project management; construction costs; construction contracts; cost reduction |
| Index terms: | success factor, project cost, success criteria, cost reduction, project planning, methodology, construction project, change order, owner, construction cost, satisfaction, planning process, project delivery, project team, project management, construction industry, schedule growth, construction contract |
| Subjects: | contract type, control systems, health monitoring assessment and metrics, financial and cost management, project delivery, economics, research methods, project management theory and practice, contractual condition, production management, sociology, assessment methods, project controls, industry analysis |
| Topics: | Contract Administration, Time Control, Health and Safety, Cost Management, Research Practice, Project Management, Stakeholder Management, Procurement |
| Descriptive scope: | 3 PCT |
N.B. Descriptive scope is a count of how many of the five facets of empirical research are indicated by the words used in title, abstract and keywords. It is not intended as a judgement on the research; merely a count of the kind of word we would expect to indicate Phenomenon, Concepts, Theoretical framing, Empirical techniques, Analytical techniques. If all five are present, then a code of “5 PCTEA” will indicate this. If you feel the coding for this record is questionable, we welcome discussion around the terms we matched or the way we categorized them. The facet you would expect may not be coded, or a facet may be coded inappropriately. This can also bear on a larger question, of which facets should be treated as defining in construction management research. Please get in touch, and we will look at it. More details here