Abstract
This research focuses on multi-prime (MP) contracts, as an alternative contracting method to general contractor (GC) contracts, to reduce the construction costs of the Korean government. Two pilot projects were executed under MP contracts with direct owner management (without professional construction management services). The project performance (i.e., construction costs, schedule, defects and participant satisfaction) under the MP contracts was then compared with a GC contract. The results show that construction costs reduced somewhat but not as much as expected (8% reduction). Direct construction costs were also reduced using the lowest bid system, but indirect construction costs, such as common laborer costs, increased. Fast track construction was not applied to the pilot projects, and therefore their schedule and defects are not distinguished from those under a GC contract. However, project participant satisfaction is very high and participants stated they would use MP contracts again for future projects. These pilot projects show that the owner′s management ability is very important in MP contracts and directly affects project performance. Therefore, professional construction management services for owners in MP contracts are strongly recommended for successful projects.
