Alternative project execution approaches

Depending on the specific conditions of a given project, there are a number of alternatives available to the project owner for the execution approach. On the basis of the allocation of risks to the project participants, these options range from one extreme in which one contractor takes full responsibility for the project execution (full turnkey) to the other extreme in which the owner takes full control of the project for its implementation (full multiple contracting). Between these two extremes there are a number of other execution approaches that have been used in which the total project risk is shared between the owner and the contractors in varying proportions. Some specific project factors may influence the decision on the approach to be used, in particular the experience and resources of the project owner, the project time table, the scope of the project, the local conditions and other factors. This paper presents a review of these alternative approaches, along with a discussion of the influence of the above factors on the decision of the approach to be used. A brief outline of some important trends in the construction industry in North America is also presented, along with a discussion on their potential impact on the project performance.