ABSTRACT
This chapter discusses the principal approaches or options available for execution plan. The project manager should take the lead in the selection of the construction execution plan. The decision as to the construction execution plan may be limited by certain factors. One of these factors might be site location; domestic United States, Europe, less developed countries, offshore. Use of multiple subcontracts on a competitive bid basis will result in an extended construction schedule. Although this approach frequently results in an extended construction schedule, it has generally been found that lower construction costs can be obtained. Under certain conditions for large domestic projects a blend of direct-hire, lumpsum subcontracts, and reimbursable subcontracts should be investigated. The approach in continental Europe results in a construction performance superior to that achieved in reimbursable direct-hire projects in the United States. The clients found themselves required to insist upon lump-sum competitive bidding in order to obtain more realistic construction costs.
