Successful Project Business Between Customer and Subcontractors
Project managers at prime contractors (general contractors, main contractors) must reconcile the needs of customers and subcontractors without ignoring their own.
In the robustly growing market of customer projects, driven by "Make-or-buy" decisions that are increasingly often answered choosing the "Buy" option, they are customers and contractors at the same time and have a focal responsibility for project success.
Project business is difficult and bears high risks. unresolved problems on both sides customer and subcontractor can drive the prime contractor into crisis.
All constitutent organizations in complex project supply networks (PSNs) must collaborate, but at the same time, each firm must protect itself from problems in the other firms, with which they are interconnected in a complex pattern of commercial, technical, and inter-personal dependencies. The central position of the prime contractor gives a lot of influence, but also an increased exposure to risk. Leeway between the contradicting demands of the other stakeholders can quickly become narrow, and the problems of the others turn into troubles for the own organization and the project.
Project managers can encounter these risks by using their business competency. This competency makes the company valuable for its contract partners and grades up the project managers in the own organization.
Based on more than three decades of experience and a lot of knowledge collected, we help making customer and contractor business more profitable and satisfying for all key stakeholders. We are adding project business management (PBM) competency to employees' already existing project management skills and knowldge.
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