Executing major projects through Contractors

Abstract

Project based organizational structures are utilized in many industries. The firms engaged in these significant endeavors, project sponsor and contractor alike, risk both capital and reputation in the market-place with each new project. Delivering projects effectively provides all the firms involved with desirable financial outcomes and market advantage. This thesis sets out to identify and understand the mechanisms established by the contracting structure that in part determine the outcome of the project. It is suggested that the nature of the relationship between project sponsor and contractor shapes the outcome of the project to a significant extent. Complex and challenging projects are made more so by the adversarial relationships that frequently exist between the sponsor and contractor(s). This thesis unpacks the underlying mechanisms that determine that relationship and begins to establish a theory of the project organization that could lead to improved project execution performance.