Nature and Extent of Domestic Construction Program Outsourcing
Publication: Journal of Construction Engineering and Management
Volume 134, Issue 12
Abstract
The sourcing of a construction program has always been a fluid process for many construction owners. A construction owner must balance the performance of all construction functions between internal staff and external service providers. Described herein are recent sourcing trends of construction programs identified through a survey of nonresidential construction owners. The survey data is representative of 170 respondents with varying demographic characteristics that account for about $72 billion in annual construction spending. Included are outsourcing trends of specific functions across the construction lifecycle and the sourcing strategy employed for each. A comparison of the outsourcing volume reported and the sourcing strategy employed is presented. A clear relationship between the amount of outsourcing and the sourcing strategy employed for the performance of construction is shown. The paper provides the academic community with new outsourcing data for construction lifecycle functions. It also provides contractors with new information about the current behavior of construction owners while providing owners with a better understanding of the relationship between sourcing and outsourcing.
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Acknowledgments
The writers would like to especially acknowledge CMAA and their director Bruce D’Agostino for their support and work on this project. Mr. D’Agostino’s guidance was invaluable in providing access to industry professionals and in the development and execution of the survey. The writers would also like to acknowledge the program management focus group and each professional organization that participated in the survey including COAA, CURT, HFI, and CEFPI. Finally, the writers acknowledge and thank each respondent who took time to complete the survey instrument.
References
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Bryant, P. T. (2006). “Decline of the engineering class: Effects of global outsourcing of engineering services.” Leadership Manage. Eng., 6, 59–71.
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Galloway, P. D. (2006). “Survey of the construction industry relative to the use of CPM scheduling for construction projects.” J. Constr. Eng. Manage., 132(7), 697–711.
Gibson, E., Jantz, G., and Graham, T. (2001). “Owner outsourcing trends and their affects on project practices and performance.” Technical Rep., Center for Construction Industry Studies, Univ. of Texas at Austin.
Greaver, M. F. (1999). Strategic outsourcing: A structured approach to outsourcing decisions and initiative, American Management Association, New York.
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Information & Authors
Information
Published In
Journal of Construction Engineering and Management
Volume 134 • Issue 12 • December 2008
Pages: 1002 - 1010
Copyright
© 2008 ASCE.
History
Received: Apr 30, 2007
Accepted: Jun 2, 2008
Published online: Dec 1, 2008
Published in print: Dec 2008
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