Source of construction industry instability and performance problems

A ten year study of construction performance has resulted in a conclusion that construction industry performance problems are being caused by the client's delivery process. The hypothesis of the research is that the client has created a price-based environment which forces a technical solution to construction issues. Modeling has been created which deductively shows that the problem is being caused by the client's selection of contractors rather than the type of delivery process (design-bid-build, design-build, or CM@Risk). A solution is proposed in the paper which uses the concepts of outsourcing, quality control (rather than management and inspection), continuous improvement with minimal client control, and a process based upon leadership rather than management principles. One of the major design requirements for the process is that the client must receive best value (best performance at the lowest possible cost) and the contractor must maximize their profit. The deductive design is supported by test results over the past ten years.