Selecting the Organisational Form

The construction organisation design is developed due to the need to develop and produce complex and/or large projects in the shortest possible time at minimum cost with specified and required quality, and anticipated performance. It is realised universally beyond doubt that traditional organisational structures like simple, bureaucratic and professionally bureaucratic no longer allow effective management in the contemporary environment particularly for construction industry. 

Construction industry particularly deals with projects in which some projects last for only a few weeks/months while other takes several years. Before deciding the type of form best suited in a particular case, one has to undertake a critical study. Broadly speaking, organisation of construction involves following three basic activities : 

1. Planning and design, 
2. Execution of construction, and 
3. Inspection and quality control. 

At the beginning of search for organisational form, one has to decide which is the area of action of the proposed firm. Each area of action has different organisational structure to effectively carry out the job selected. Unfortunately, in most cases, the objective is not clear. As a result, large project teams are selected for small projects whereas these could have been handled more productively and quickly by some other structural form. All structural forms have their merits and demerits and there is no clear cut criteria by which 

a particular form can be selected for all the construction operations on all type of projects. 

Four following fundamental parameters must be analysed while considering implementation of a project organisational form : 

• Integrating devices, 
• Authority structures, 
• Influence distribution, and 
• Information system. 

Integration of activities across functional boundaries can be accomplished by influence, including participation in budget, design, unit set-up and salaries etc. It can cut the red tape and bureaucratic hold-ups. 

Information systzms also play an important part. They must be designed to get the right information to right person at the right time in a cost effective manner. The organisational form selected must facilitate and support the flow of information through the management network.