Project Work Structuring: Management Considerations and Performance Implications

Abstract

On a construction project, “work structuring” refers to the design of the production organization, and includes the division of the work into work packages and the assignment of the work packages to the different project participants (trade contractors). Work structuring determines the scope of each work package, and the dependencies between work packages. Consequently, it determines the need for coordination between the project participants. This study investigates the criteria that project managers use to decide the breakdown of the project into work packages. Data were collected on three projects through interviews with project managers, and review of project records. The findings identified two sets of considerations influencing the work structuring: (1) Considerations related to winning the project, including the owner’s requirements and budget constraints, requirements for use of local/disadvantaged/minority contractors, prequalification requirements, and licensing. (2) Considerations related to production performance, including the difficulty and complexity of the work packages, the quality of the subcontractors who will be attracted, interfaces and coordination requirements, and potential production problems. These factors often create conflicting requirements and trade-offs that can affect project performance.