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Subcontractors have a different focus from contractors derived in part from working on multiple projects simultaneously rather than one at a time. The researchers used a computer simulation to examine resource allocation behaviors.
Subcontractor Resource Allocation in a MultiProject Environment
Michael Harel and Rafael Sacks
They performed a survey of 28 contractors and 29 subcontractors for the basis of establishing a better utility function than the inferred "win as much as you can" approach.
In only 55% of the cases did PMs enable subcontractors to work with effective crew sizes
Some of the findings:
- More than 48% of project managers admitted to exagerating resource requirements by at least 20%
- More than 75% of project managers assume a priori that Subs will bring less than 80% of the resources needed
- The average amount of work ready expected was only 60%
- 40% of PMs admit that contract price was the prime reason for selectin a subcontractor
- The researchers concluded that in only 55% of the cases did PMs enable subcontractors to work with effective crew sizes.
- Subcontractors adopt a defensive behavior of overbooking their resources while supplying fewer resources than demanded.
The survey results confirmed the original mistrust-exploit view of contractor-subcontractor behavior. PMs and Subs are more likely to play 'Win as Much as You Can' than not.
? Guy Kawasaki wrote, "Less is the new more." Easy to learn: symmetry, seduction, subtraction, and sustainability. Very valuable to do. Step 1: Read Matt's book!! just 140 keystrokes.
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{ 3 comments… read them below or add one }
Hal–what’s the punchline on that second bullet point? “75% of project managers” …. what? Inquiring minds want to know!
My late night editing wasn’t so good! I updated the bullet point with the punchline. The survey in a way just confirmed our suspicions — subcontractors don’t think they will be taken care of by the PMs and PMs think they will be lied to by the subs. Acting to protect their own interests (not those of the client) the parties relationships devolve along with the reliability of the project.
I agree. That’s the problem with hiring subcontractors, they (and the project team) usually have their own interests. A good supplier contract will usually make sure that both parties meet the same end goal.