Nature and extent of domestic construction program outsourcing

The sourcing of a construction program has always been a fluid process for many construction owners. A construction owner must balance the performance of all construction functions between internal staff and external service providers. Described herein are recent sourcing trends of construction programs identified through a survey of nonresidential construction owners. The survey data is representative of 170 respondents with varying demographic characteristics that account for about $72 billion in annual construction spending. Included are outsourcing trends of specific functions across the construction lifecycle and the sourcing strategy employed for each. A comparison of the outsourcing volume reported and the sourcing strategy employed is presented. A clear relationship between the amount of outsourcing and the sourcing strategy employed for the performance of construction is shown. The paper provides the academic community with new outsourcing data for construction lifecycle functions. It also provides contractors with new information about the current behavior of construction owners while providing owners with a better understanding of the relationship between sourcing and outsourcing. DOI: 10.1061/(ASCE)0733-9364(2008)134:12(1002) CE Database subject headings: Owners; Organizations; Life cycles; Capital improvement; Construction management; Contracting.