Over the past ten years, the relationship between large facility owners and contractors has changed dramatically in North America. In many owner organizations, the capability to manage construction work has been lost through downsizing and retirements. Contractors have been asked to take on a larger role in planning, designing and constructing facilities, while at the same time they are asked to share more risk. Experience and expertise have disappeared on both sides as fewer engineers are pursuing construction careers.

This paper will outline an ongoing, multi-disciplinary study, funded by the Alfred P. Sloan Foundation, investigating the impact of these changes. Data from over 600 projects, over 100 owner and contractor organizations and detailed case studies of 8 companies will be summarized. Implications of these organizational changes for project success will be given. A set of policy implications and best practices for managing organizational changes, such as team staffing, owner management of individual careers and competencies, strategic alliances, knowledge transfer, and project competency development will be discussed. Implications of these findings for European firms will be given.