New Approach to Construction Management

Abstract

In this paper the concept of organizational effectiveness based on the productivity/PERT/LOB methodology has been elaborated. Using illustrative examples it was demonstrated that the introduction of the concept of resource or factor effectiveness into the management of construction engineering projects can be of immense value in dealing with cost overruns, which have become a critical problem in the construction industry. Particularly of great significance in this approach the two types of analyses: partial effect analysis (PEA) and the total effect analysis (TEA), which provide pertinent information about the current status of the project, for detecting the proximate and remote causes of changes in the effectiveness of the resources used in the project execution. The usefulness of this technique in determining the efficiency of the supervisors, foremen, and management in the use of the various resources; in ensuring that disbursements are consistent with management's expectations on the actual work to be done; in indicating when a portion of a project should be subcontracted; and in establishing cost overrun bounds, is also discussed.