Agent-Based Simulation of General Contractor–Subcontractor Interactions in a Multiproject Environment

Abstract

The behavioral dynamics of general contractors and subcontractors in bidding, construction planning, and production control influence the outcomes of construction projects. To date, researchers have modeled these interactions in the context of stand-alone projects. While much has been learned, questions arise concerning the validity of these models, because projects are not islands—they are affected by the markets in which general contractors compete for subcontractor resources. LeapconX is a marketwide simulation that can model an unlimited number of construction projects, subcontractors, and residential building projects in any given market region. It enables testing of production system innovations, revealing the impacts not only on companies implementing the innovations, but also on companies that do not. The system was validated through simulation using data for the Newark, New Jersey metropolitan area. Three production control innovations were tested at three levels of market penetration. Comparison of the results with those of single-project simulations for the same innovations confirms that market dynamics moderate outcomes. LeapconX enables both construction management researchers and practitioners to predict the likely outcomes of a wide variety of procedural and technological innovations, with little cost and no risk to actual projects.