Rapid Analysis for Subcontractor Resource Allocation Essay

4311 Words 18 Pages
1. Introduction
Specialist contractors – generally known as subcontractors – perform the majority of the work on commercial construction projects. It is common for a typical construction project to utilize dozens of subcontractors, with 80-90% of the work of most building projects in the U.S. being performed by subcontractors (Hinze and Tracey 1994). The performance of the subcontractor is critical to project success (Arditi and Chotibhongs 2005; Gray and Flanagan 1989). Commonly, subcontractors have to perform work on multiple projects simultaneously (Sacks 2004), but with limited resources, each subcontractor strives to maximum its workload at any given time for optimum resource utilization (Mathews et al. 2003; O'Brien and Fischer
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In the multi-project work environment, subcontractors strive to optimize their resource utilization in accordance with their work load, leading them to adjust resource allocations between projects(Sacks 2004). Thus, their work activities are subject to individual resource constraints (Kim and Paulson 2003). For those reasons, resource allocation has been identified as a key consideration for subcontractors by multiple studies (Faniran et al. 1999; O'Brien and Fischer 2000; Sacks 2004; Sacks and Harel 2006; Zhang and Tam 2003).

On the other hand, every project requires some changes during construction in order to complete the project (Oberlender 2000). More commonly, changes are caused by contractor schedule delays, and these delays tend to propagate downstream due to predecessor and successor linkages. The challenges in dealing with changes become much more serious because each contractor performs multiple projects simultaneously (O'Brien and Fischer 2000; Turner and Speiser 1992).

The difficulty in dealing with resource allocation increases tremendously in today’s world. Owners are willing to start construction without a final design to save time and money, and the owners’ needs may be also changing constantly because of the economic and industry environment. Those factors have led to a tremendous increase of change orders (Hanna et al. 1999) and certainty number of clauses