Optimizing Owner/Contractor Core Competencies for Capital Programs

Abstract

This paper proposes a process to help managers of capital project organizations, within owner companies, select key competencies for their capital programs and, where appropriate, leverage contractor personnel and expertise. The process involves evaluation of owner and contractor competencies and determination of the best possible sourcing strategy for each competency required in the owner's capital program. The sourcing strategy is defined in terms of work relationships that clearly identify primary and secondary roles and responsibilities. The resulting work structure helps owners and contractors avoid gaps and eliminate overlaps in their work relationships. The proposed process also provides an approach to evaluate alignment of work structures between owner's corporate objectives and their capital programs. Work structure and alignment indicators consider project delivery approaches, contract types, organizational relationships, and other relevant factors such as proprietary technology. Thus, this paper provides a decision process that can help managers optimize owner and contractor competencies for capital program success.