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Title:The relationship between alternative project approaches, integration, and performance
Author(s):Pocock, James Bryant
Department / Program:Civil and Environmental Engineering
Discipline:Civil Engineering
Degree Granting Institution:University of Illinois at Urbana-Champaign
Subject(s):Business Administration, Management
Economics, Commerce-Business
Engineering, Civil
Abstract:This work compares the performance of traditional design-bid-build projects with alternative approaches. It verifies that partnered, design-build, and combination projects offer significant advantages in cost growth, schedule growth, modifications, and design deficiencies.
Next, a method is developed for measuring "degree of interaction" (DOI) as an approximation of project integration. This method is used to show that DOI has a direct impact on project performance. Finally, DOI score is used to predict future project performance.
In comparing 209 completed military construction projects, partnered projects had the least average schedule growth, design-build projects had the least average cost growth and design deficiencies, and combination projects averaged the fewest modifications. Traditional projects had the worst average schedule growth, modifications, and design deficiencies. The significance of these differences is confirmed with t-tests.
Degree of interaction scores were calculated for 38 projects from this group of 209, representing each category. The alternative projects have significantly higher average DOI scores than traditional projects.
Scatter plots comparing DOI and project performance show a clear relationship between the two. As DOI scores rise, project performance quickly improves and becomes more consistent. Regression analysis shows a modest but significant correlation between DOI and project performance, including user satisfaction. Beyond a certain DOI score (approximately 0.4), performance tends to level off. Achieving this score takes only a modest increase in interaction. Threshold analysis separates the projects into those with DOI scores above and below 0.4. Performance is significantly better for projects with higher DOI in all areas except design deficiencies. Interaction occurring early in the project is also shown to have a positive impact on project performance.
Finally, these results are combined with statistical analysis to predict future project performance based on DOI scores. The probability of improved average performance for future projects with DOI $>$ 0.4 ranges from 80% to 99% depending on the performance indicator. A hypothetical project with a $5 million budget, 365 day duration, and a DOI score over 0.4, should save, on average, \$119,500 in cost growth, 71 days in schedule growth, 21 fewer modifications, and 7 fewer design deficiencies, over a comparable project with DOI $<$ 0.4.
Issue Date:1996
Rights Information:Copyright 1996 Pocock, James Bryant
Date Available in IDEALS:2011-05-07
Identifier in Online Catalog:AAI9702638
OCLC Identifier:(UMI)AAI9702638

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