Abstract
This study analysed a system dynamics model for outsourcing engineering services in a large and complex project organisational structure that is typically associated with design-build (DB) project delivery. A literature review indicated that most of the reviewed papers implied the project engineering resources were totally insourced or the authors were silent regarding any resources that were outsourced. Comprehensive sensitivity analysis of various model variables was performed, which indicates that the quality and productivity of the outsourced resources as well as the initial number of assigned experienced engineers significantly impacted the amount and timing of engineering work completion. Project outcomes were also impacted by varying the number of initial and changed engineering tasks. The decision to insource/outsource engineering work on DB projects may have significant cost and time impacts, which should be considered by decision makers.
Highlights
The ability of owners and managers to execute design-build (DB) projects is dependent upon implementing best practices that realise affordability and cost management
The present study performs an extended analysis of the impacts of quality and productivity of 100% outsourced engineering services as well as the initial number of experienced engineers upon the engineering task outcome of the DB project using the previously validated system dynamics (SD) model
For the variables used in this study, it indicates that the 100% Quality case always presents the largest engineering task completion during any period during the project duration
Summary
The ability of owners and managers to execute design-build (DB) projects is dependent upon implementing best practices that realise affordability and cost management. The results of running this Vensim model indicated that the amount and timing of engineering task work completed depended upon both the productivity and quality of the outsourced engineering services as well as the initial number of experienced engineers.
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