McKenna, Nicholas, "Executing Major Projects through Contractors", 2005 July 17-2005 July 21

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Project based organizational structures are utilized in many industries. The firms engaged in these endeavors, project sponsor and contractor alike, risk both capital and reputation in the market-place with each new project. The relationship between project sponsor and contractor influences 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 paper presents a model for examining the influence of the contractor/sponsor relationship on the execution of a project. The focus is on the effects of the relationship, as determined by the financial performance of the engaged firms and key project performance indicators (schedule, budget etc), on the degree to which the firms engage and the impact this has on project performance. Analysis of the model indicates the importance of appreciating the project’s need for effective team integration in determining the financial arrangements.

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  • 2005 July 17-2005 July 21
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