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CRITICAL SUCCESS FACTORS FOR

CONSTRUCTION P R O J E C T S
By Victor Sanvido,1 Associate Member, ASCE, Francois Grobler,2
Kevin Parfitt,3 Moris Guvenis,4 and Michael Coyle5

ABSTRACT: A building project is completed as a result of a combination of many

events and interactions, planned or unplanned, over the life of a facility, with
changing participants and processes in a constantly changing environment. This
paper defines a set of conditions or factors that, when thoroughly and completely
satisfied on a project, ensures the successful completion of the facility. Success on
a project means that certain expectations for a given participant were met, whether
owner, planner, engineer, contractor, or operator. These expectations may be
different for each participant. The factors that predicate success were initially de-
rived from the Integrated Building Process Model developed at Penn State by
Sanvido in 1990. These factors were then tested on sixteen projects and the results
showed excellent correlation between project success and achievement of the fac-
tors. Finally, the four factors most critical to success are presented.

INTRODUCTION

A building project is completed as a result of a combination of many

events and interactions, planned or unplanned, over the life of a facility,
with changing participants and processes in a constantly changing environ-
ment. Certain factors are more critical to project success than others. These
factors are called critical project success factors (CPSFs).
The term "critical success factors," in the context of projects and the
management of projects, was first used by Rockart (1982). The topic has
since become a prolific research area. Furthermore, because the pursuit of
excellence in project delivery systems is not new, this new research direction
could thrive upon a rich legacy of many previous investigators.
Unfortunately the promises of critical success factor research have not
been fully realized. Despite nearly a decade's subsequent work, the con-
struction industry is substantially unchanged, and we have only a marginally
better understanding of the factors that make projects successful.

Objective and Significance

The objective of this research is to define the critical factors that lead to
project success and provide a forecasting tool to enable parties to rapidly
assess the possibility of a successful project from their viewpoint.
1
Assoc. Prof., Dept. Arch. Engrg., Pennsylvania State Univ., 104 Engrg. Unit
"A," University Park, PA 16802.
2
Asst. Prof., Dept. Arch. Engrg., Pennsylvania State Univ., 104 Engrg. Unit "A,"
University Park, PA.
3
Asst. Prof., Dept. Arch. Engrg., Pennsylvania State Univ., 104 Engrg. Unit "A,"
University Park, PA.
4
Formerly Res. Asst., Dept. Arch. Engrg., Pennsylvania State Univ., 104 Engrg.
Unit "A," University Park, PA.
5
Formerly Res. Asst., Dept. Arch. Engrg., Pennsylvania State Univ., 104 Engrg.
Unit "A," University Park, PA.
Note. Discussion open until August 1,1992. To extend the closing date one month,
a written request must be filed with the ASCE Manager of Journals. The manuscript
for this paper was submitted for review and possible publication on October 26,
1990. This paper is part of the Journal of Construction Engineering and Management,
Vol. 118, No. 1, March, 1992. ©ASCE, ISSN 0733-9364/92/0001-0094/$1.00 + $.15
per page. Paper No. 873.

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If project participants can predict probability of success better, they can

take steps to: (1) Avoid unsuccessful projects; (2) identify good projects
worth pursuing; and (3) identify problems on current projects and take
corrective action.
The general objectives were met through accomplishment of several spe-
cific tasks.

Research Tasks
The following research tasks were completed.
8
Define the project success criteria
» Define the ideal facility life-cycle functions
9 Develop structured questionnaire
• Select projects
<» Collect data from sites
• Analyze data
9
Develop guidelines for CPSFs

DEFINITION OF SUCCESS

The literature on critical success factors reveals several somewhat con-

flicting definitions of "project success." The following is a sampling of the
various proposals, discussions, and definitions.

results much better than expected or normally observed in terms of

cost, schedule, quality, safety, and participant satisfaction [Ashley
(1987)].
having everything turn out as hoped . . . anticipating all project re-
quirements and have sufficient resources to meet needs in a timely
manner [Tuman (1986)].
quality is defined as the totality of features, attributes, and charac-
teristics of a facility, product, process, component, service, or work-
manship that bear on its ability to satisfy a given need: fitness for
purpose. It is usually referenced to and measured by the degree of
conformance to a predetermined standard of performance [ASCE:
Quality (1988)].
The project is considered an overall success if the project meets the
technical performance specifications and/or mission to be performed,
and if there is a high level of satisfaction concerning the project out-
come among: key people in the parent organization, key people in
the project team, and key users or clientele of the project effort [de
Wit (1986)].

Ashley (1987) refers to project success as having results "much better

than expected;" other authors seem to restrict their expectations to a mere
meeting of the technical specifications and mission. It is not clear at this
point which of these viewpoints represent the expectations of the majority
of project participants.
As Morris (1983) aptly stated [and de Wit (1986) alluded]: "any study of
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success and failure in projects must before long decide what is meant by
success: for whom? using what criteria? and over what time period?" It is
in this area that most previous studies presented a limited view of project
success. If success was defined, it was often unclear from whose perspective,
or at what point in the project life cycle it was measured.
The literature has given several definitions of success, each of which is
specific to a particular project. We believe that each project participant will
have their own viewpoint of success. Success for a given project participant
is defined here as the degree to which project goals and expectations are
met. These goals and expectations may include technical, financial, edu-
cational, social, and professional aspects. These expectations may be dif-
ferent for many project participants, and are discussed below.

Success Criteria
Success criteria or a person's definition of success as it relates to a building
often changes from project to project depending on participants, scope of
services, project size, sophistication of the owner related to the design of
facilities, technological implications, and a variety of other factors. On the
other hand, common threads relating to success criteria often develop not
only with an individual project but across the industry as we relate success
to the perceptions and expectations of the owner, designer, or contractor.
Differences in a person's definition of success are often very evident.
To orient the researchers, lists of typical success criteria for the owner,
designer, and contractor were developed. Each list was developed by the
writers' reviewing the literature and then brainstorming and discussing suc-
cess criteria for the owners, designers, and contractors represented on the
project team. An unprioritized summary of these success criteria follows.
Owner's criteria for measuring success: on schedule; on budget; function
for intended use (satisfy users and customers); end result as envisioned;
quality (workmanship, products); aesthetically pleasing; return on invest-
ment (responsiveness to audiences); building must be marketable (image
and financial); and minimize aggravation in producing a building.
Designer's criteria for measuring success: satisfied client (obtain or de-
velop the potential to obtain repeat work); quality architectural product;
met design fee and profit goal; professional staff fulfillment (gain experience,
learn new skills); met project budget and schedule; marketable product/
process (selling tool, reputation with peers and clients); minimal construc-
tion problems (easy to operate, constructible design); no "ghosts," liability,
claims (building functions as intended); socially accepted (community re-
sponse); client pays (reliability); and well defined scope of work (contract
and scope and compensation match).
Contractor's criteria for measuring success: meet schedule (preconstruc-
tion, construction, design); profit; under budget (savings obtained for owner
and/or contractor); quality specification met or exceeded; no claims (owners,
subcontractors); safety; client satisfaction (personal relationships); good
subcontractor buy out; good direct communication (expectations of all par-
ties clearly defined); and minimal or no surprises during the project.

Common Criteria
While many criteria items or viewpoints are similar, there are several
distinctions that relate directly to the parties involved and the type of busi-
ness services they provide. For example, a priority item and one that appears
in all three lists (designer, owner, and contractor) in some form is the
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financial reality of doing business. The owner wants the project completed
on time and on budget, and the designer and contractor both expect to meet
certain profit or fee goals. All three viewpoints also recognize the absence
of any legal claims or proceedings on a project as a desirable outcome. In
other words, this is a major criteria for measuring success. Another common
thread among the three groups involves meeting an appropriate schedule
as a way of measuring or determining if a project was successful.

Unique Criteria
It is also evident that there are some unique factors associated with each
of the three groups. The designer for instance is looking for a project that
will increase the level of professional development and professional satis-
faction among his employees. Safety is a high-priority issue for the contractor
that would not normally be an issue with the other two groups, because
their employees are at much less risk during the design or operation of a
building than the contractor's workers are during the construction of a
building. An owner is extremely interested in knowing that the building
project functions properly for the intended use and is free from long-term
defects or lingering maintenance problems.
As one would suspect, there is some variability even within the same firm
on the same project. The factors of importance range from meeting internal
budgets to professional satisfaction and on to producing a job that will help
the firm obtain repeat business or serve as a marketing tool for similar
projects with different clients. For example, two designers working on the
same project may view success differently. An experienced designer serving
as a project engineer may be concerned about meeting internal budget
criteria as well as meeting the client's needs. A less-experienced designer
working at a lower level of responsibility may consider the opportunity to
gain valuable design experience as a success criteria and be less concerned
about meeting the internal budget.
No single list will ever be totally comprehensive when it comes to a
definition of success for a project. The criteria developed for use with the
CPSF project does give a general overall impression of each of the three
groups viewpoints. It determines the "envelope" of ideas that are used to
evaluate success.

CRITICAL SUCCESS FACTORS

Critical success factors are defined as those factors predicting success on

projects. In the literature, several authors identified, explained, and dis-
cussed the factors that are critical to the success of a project.

Those few things that must go well to ensure success for a manager
or organization, and therefore, they represent those managerial or
enterprise areas that must be given special and continual attention to
bring about high performance. Critical Success Factors include issues
vital to an organization's current operating activities and its future
success [Boynton and Zmund (1984)].
They are events or circumstances that require the special attention of
management because of their significance to the corporation. They
may be internal or external and be positive or negative in their impact.
Their essential character is the presence of a need from special aware-
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ness or attention to avoid unpleasant surprises or missed opportunities

or objectives. They may be identified by evaluating corporate strategy,
environment, resources, operations [Ferguson and Dickinson (1982)].
Those few key areas of activities in which favorable results are ab-
solutely necessary for a particular manager to reach his or her goals
[Rockart (1982)].
The manuals, articles, and papers describing previous work in critical
project success factors (CPSFs) vary in content and quality, and indicate
differences in focus of the studies. Approximately 20 sources (research
papers and theses) were collected and reviewed for the present research.
The literature covers a variety of project industries, including computer
software development projects and shipbuilding. This body of literature
represents a significant contribution to our understanding of project success
factors and criteria. However, much uncertainty remains in need of clari-
fication.
Examples of issues not yet adequately resolved are: (1) What CPSFs are
valid for building construction? In previous research the focus was not on
building construction, and in fact building construction formed a minority
of the projects studied. (2) Are the same or different factors important for
different types of buildings, e.g. hospitals versus office buildings? (3) In
reports that included successful-unsuccessful project pair studies, the judg-
ment whether the project was successful or unsuccessful was based on one
participant only. It seems unlikely that other project participants would
necessarily have the same judgment of the project. And (4) all of the pre-
vious studies based their hypothesized CPSFs on experiential and anecdotal
evidence. Are there no theories available that could form the basis of a
more rigorous approach to the CPSF problem?

Basis for Factors—IBPM

Given these shortcomings of previous research efforts, the writers searched
for a theoretical basis for the factors. A process model, the integrated
building process model (IBPM), had been developed to identify all major
functions required to provide a facility and the information that is produced
and utilized by each function (Sanvido et al. 1990). The model was developed

Sub-Category: PRODUCT INFORMATION M P D C O

FACILITY IDEA i/o c
PLANNING Program 0 i
INFORMATION Site Information o i
Project Execution Plan 0 i i i
Facility Planning Knowledge o i
DESIGN Bid Construction Documents
INFORMATION and Criteria o i
Operations and Maintenance
Documents o i
Facility Design Knowledge o i
CONSTRUCTION Post Construction Documents o i
INFORMATION Facility Construction Knowledge o i

Input to the Function o - Output of the Function

FIG. 1. Product Control Elements and Their Relationships to Five Major Functions
in Model

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ISub-C&tsgoryElement M P D C 0
Facility Plan c

oooooooo
CHANGES, Design Plan c
AND Construction Plan c
OBLIGATIONS Operation Plan c
Contract(s): Planning Contract c
Design Contract c
Construction Contract c
Operation Contract c

FACttlrY Facility Champion m

Management Team m
TEAM Planning Team m
o
Design Team o m
Construction Team o m
Operation Team o m
Facility Mamangement Experience o
EXPERIENCE Facility Planning Experience 0.
Facility Design Experience o
Facility Construction Experience o
Facility Operation Experience o

RES6URC1S Planning Resources

o o oo
1
Design Resources i
Construction Resources i
Operation Resources i

i - Input to the Function o - Output of the Function

c - Constraint on the Function m - Mechanism for the Function

FIG. 2. Process Control Elements and Their Relationships to Five Major Func-
tions in Model

Sub-Category Element M P D C 0
OPTIMIZATION Designability Information c o
INFORMATION ConstructabUity Information c o.
Operability Information c 0

PERFORMANCE Planning Performance Information c o

INFORMATION Design Performance Information c o
Construction Performance Information c o
Operations Performance Information c o

c - Constraint on the Function

o - Output of the Function

FIG. 3. Feedback Elements and Their Relationships to Five Major Functions in

Model

to four hierarchical levels of detail from data collected on 22 building proj-

ects. It was drawn from the perspective of the owner of the facility.
The IBPM identifies elements of information and physical entities that
must flow between the manage (M), plan (P), design (D), construct (C),
and operate (O) functions. [The reader is directed to (Sanvido et al. 1990)
for a full description of the IBPM.] These elements are grouped into nine
subcategories (Sanvido 1990). Figures 1-3 show the elements of the sub-
categories and their relationship to the M, P, D, C, and O functions. The
elements that form the basis for the questionnaire are all defined as follows.
The facility team is assembled by the owner to provide the facility. This
team starts with the facility champion and expands to include representatives
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of the planner, designer, constructor, owner, operator, consultants, and

facilities managers.
The contract, obligations, and changes category covers all the written or
verbal agreements and changes to them that are used among different parties
during the various phases of the project.
Facility experience is the information and knowledge that results from
providing the facility that is not included as formally communicated docu-
ments but is resident in other media, e.g. company history and project
participants' memories. This improves the abilities of the members of the
facility team to provide similar or related facilities in the future. The ele-
ments of this category are management experience, planning experience,
design experience, construction experience, and operation experience.
Resources includes all resources provided for the facility by all participants
(money, time and man-hours, permanent materials and equipment, energy,
information, equipment, temporary materials, tools, and the workplace or
site).
Product information comprises the information elements used to describe
and communicate that the facility is in various stages of development. These
elements are transformed from the facility idea and the site through the
planning information (project execution plan, program and site information,
etc.), the design information (design documents, bid documents, etc.), the
constructed facility, and from construction information to the operational
facility.
Optimization information is the information used to integrate expertise
of participants in providing the facility. This includes designability, con-
structability, and operability information.
Performance information is information about the progress of activities
that, when compared to the plan, is interpreted to assess the status of the
project and the appropriateness of the plan.
Constraints are parameters or variables that hinder, limit, or impact the
participants in their ability to provide a facility.
Products are the physical building-related "noninformational" outputs
of specific functions, which can be inputs or control elements for other
functions in the model. The key physical products are defined as the site,
the constructed facility, and the operational facility.

RESEARCH METHODS

Questionnaire
A questionnaire was developed to facilitate data collection by the re-
searchers and to ensure consistency in the elements examined. The ques-
tionnaire (see a sample page in Fig. 4) was separated by each major function,
viz management, planning, design, construction, and operation. Each of
these sets of questions has two parts. The first part determines the closeness
of fit of the functions as performed on the project with the ideal or modeled
functions just defined. There are nine major categories of questions. The
second part determines the degree of success that the responding participant
experienced on the given project.
The questions are thus classified by function and not by the people who
carry them out. For each project, the people who perform these functions
will be different depending on the contract type, the phase of the project,
local regulations and so on. Therefore, the same set of questions may be
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Asked: Manager Company:

Category: Facility team Project:
Elements: Planning Team RANKING - Bad, Unsatlsf., Good, Very Good, Excellent
Design Team Quality of element:
Construction Team Timeliness of element:
Operation Team Cost effectiveness:
Impact on success:
QUESTION REPLY FACTORS/CRITERIA TO CHECK FOR
How do you select the people for capabilities of the team
the planning, design, construction understanding of the staff needs
and operation phases? availability
Planning contract type
chemistry
Design

Construction

Operation

Were the following three items, communication

team selection, project needs, company policies
and the contract strategy contract types
developed together? How?

FIG. 4. CPSF Question and Answer Summary Sheet

directed to more than one person for each project. The data will be collected
from the individuals who perform the five basic functions of the model.
The questions are nonleading, and are structured so that the interviewee
would not be biased and answer freely, given the relatively short list of
questions. Each question is accompanied by a set of items that must be
examined in the answers. These items are based on the literature search
and are intended to aid in refining the replies and comparing the information
obtained from different interviewees.

Selection of Projects
To analyze the data meaningfully, the writers carefully selected eight pairs
of projects. The two projects in each pair were similar in scope and proposed
by the same sponsor. One project was successful in the eyes of the sponsor
and the second was less successful. To compare projects in a given field,
three categories were established. These categories all included projects in
which there were significant M, P, D, C, and O functions to be performed.
An ideal project fell in the range of 100,000-200,000 sq ft (9,467-18,935
m2) in area, but some projects were larger. The categories selected were:
(1) Owner-occupied, lease-equivalent space (O), e.g. office and retail build-
ings; (2) high-tech, high-reliability buildings (H), e.g. lab facilities and hos-
pitals; (3) multiphase projects in which the occupant is in the building (R),
e.g. renovation work and multiphase buildings.
A summary of the projects together with their reference numbers is as
follows.
* Sponsor 1—Projects HI, H2, Rl, R2
* Sponsor 2—Projects Ol, 02, H3, H4
* Sponsor 3—Projects 0 3 , 04, H5, H6
« Sponsor 4—Projects H7, H8
o Company 5—Projects 05, 06
Note that sponsor four was only able to provide two sites. The researchers
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then solicited another company to provide a pair of projects to study. The

first letter of these project numbers refers to the type of facility, the second
to a sequential series. These project numbers are constant for the remainder
of the paper.

Data Collection Procedure

In preparation for a site visit, the researchers reviewed all pertinent in-
formation available on the project. This included a completed project-data
form and any literature provided by the sponsor company. After scheduling
the site visit and immediately upon arrival, the researchers met the principal
players and toured the site (where possible) to become familiar with the
project.
The chief purpose of the site visits was to determine which agencies/
companies were responsible for performing each of the five key functions.
Where more than one agency/company performed a given function, re-
sponses were collected from both companies. Interviews proceeded in the
sequence in which the project was executed; i.e., with the owner, architect,
engineer, contractor, and operator. Where applicable, the researchers ob^
tained physical evidence of key techniques used to accomplish a task. All
answers were cross-checked with other participants.
At the conclusion of each interview the interviewee was asked to rank
how successful that project was. The interviewee was also asked to determine
whether that function had either a positive or negative effect on the project's
success, and what that effect was. Also, researchers solicited input on lessons
learned on that project and what had been done to implement those lessons
in subsequent projects.

Data-Reduction Procedure
The data collected from each project were recorded directly on the ques-
tionnaire. These data were reduced onto the data analysis sheet (Figs. 5
and 6). Given this sheet, two data descriptions were prepared.
The first type was a verbal description of the information on each project
provided under the following headings: facts, functions, and lessons learned.
The facts section defined the project background and description of the
building, the key players and contracts, and cost and schedule data. The
functions section defined how the facility team, contracts, facility experi-
ence, resources, product information, optimization information, and per-
formance information were performed or achieved. The final section listed
the lessons learned for each principal player.
A second type of data reduction was the conversion of the questionnaire
data to a numerical system. This is presented in detail later in this paper.
Sample results of the textual information follows.

SAMPLE DESCRIPTIVE RESULTS FOR TWO PROJECTS

Project Number O l

Facts
Background and description: New operations center, data processing cen-
ter [400,000 sq ft (37,870 m2)] built in northeastern U.S., built on a new
site. Raised floor, modular electrical wiring system, uninterrupted power
supply (UPS), emergency power, halon systems, universal wiring system,
access floor, security systems, sound masking, heat recovery.
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Sub-Category Element Evidence of Elements

FACIUTY Management Team
TEAM Planning Team
Design Team
Construction Team
Operation Team

CONTRACTS, Management Contract/ Plan

CHANGES, Planning Contract/ Plan
OBLIGATIONS Design Contract/ Plan
Construction Contract/ Plan
Operation Contract/ Plan

FACILITY Facility Management Experience

EXPERIENCE Facility Planning Experience
Facility Design Experience
Facility Construction Experience
Facility Operation Experience

RESOURCES Management Resources

Planning Resources
Design Resources
Construction Resources
Operation Resources

PRODUCTS Site
Constructed Facility
Operational Facility

PRODUCT Facility Idea

INFORMATION Planning Information/ Program
Design Information
Construction Information

EXTERNAL External Factors

Owner's Home Office
Planner's Home Office/ Subs
Designer's Home Office/ Subs
Constructor's Home Office/ Subs

OPTlMl2AtiOtf User's Information

INFORMATION Designability Information
Constmctability Information
Operability Information

PERFORMANCE Project Performance Information

INFORMATION Planning Performance Information
Design Performance Information
Construction Performance Information
Operations Performance Information

FIG. 5. Data Analysis Sheet 1

Key players: Project managed by owner and developer; design by archi-

tect with specialty subs (negotiated lump sum); construction manager [cost
plus fixed fee with a guaranteed maximum price (GMP)]; in-house building
operator.
Design start: 9/89.
Construction: 11/88 to 4/89.
Final construction cost at turnover: $45 million.

Functions
Facility team: The owner had little experience and selected a project
developer to assist him in this task. A participative management style was
employed, which ensured a good team. The construction manager (CM)
was hired at the same time as the architect.
Contracts: The architect and design team had fixed-fee contracts. The
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SUCCESS Manager
CRITERIA

Planner

Designer

Constructor

Operator

SUCCESS Manager
Planner
Designer
Constructor
Operator

LESSONS
LEARNED

FIG. 6. Data Analysis Sheet 2

fee was tied to the principals of the key designers' staying with the company
for the duration of the project. The contracts all allowed the participants
to function as a team.
Experience: The developer had experience in this area, but it was the
largest such facility done by them. The mechanical/electrical designer had
had a very similar project before this one. The design team had experience
working together.
Resources: The CM's previous job suffered from insufficient staff. On
this project the project executive made sure that the staffing level was
correct.
Product information: The architect ernployed a team-building program
to develop a common frame of reference, program, and philosophy on the
project. The coordination using an overlay drafting system on the project
was unsatisfactory. The contractor lost momentum due to frequent changes.
Optimization information: The contractor provided good value engi-
neering (VE) input. The team had to work to change the philosophy of the
operator.
Performance information: The user's chief executive officer (CEO) was
involved in weekly reviews. Good control.
External constraints: Unusual spells of dry and wet weather and sinkholes
constrained the contractor. The owner's home office staff changed their
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minds on the size of the facility. The windows that were supplied did not
meet the design specification.
Product: Good.
Success: Generally the most successful job in all the companies.

Lessons Learned
Owner: Remove weak team members as soon as possible. Clearly state
all assumptions in the design phase and ensure that the client knows and
understands what they are. Hold multiple contracts with all key designers;
don't have one contract with an architect only.
Architect: Educate the owner and community on what quality of building
they get for their funds. Take tours of similar facilities to communicate the
space and quality of finishes.
Engineers: Spend the time to get to know the project manager. Spend
time up front developing the team.
Contractor: Used the same organization and staffing levels on subsequent
projects successfully.

Project Number 02

Facts
Background and description: New corporate office headquarters [110,000
sq ft (10,414 m2)] built in the northeastern U.S. on an urban restricted site.
Structural steel frame, self-contained air conditioning (AC) with roof-mounted
dry cooler, and automated control system. Masonry walls with brick facade.
Key players: Project managed by owner and consultant project manager;
design by architect with specialty subs (negotiated lump sum); construction
manager (cost plus fixed fee with a GMP); in-house operator.
Design start: 4/86.
Construction: 9/88 to 10/89.
Final construction cost at turnover: $12 million.

Functions
Facility team: The owner brought in a project manager to assist them.
The project manager had no authority, and dragged out key project deci-
sions. There was a large amount of friction between the project manager,
architect, and mechanical designer. The project management team changed
during the project. The new project manager was abusive, and the team
could not function well.
Contracts: The architect's and the mechanical designer's fees were cut
drastically by the owner. A GMP construction contract was developed with
very poor documentation.
Experience: The owner had no experience and the project manager had
very little experience. The operator had absolutely no experience, and at
the time of the site visit, the project had its third operator.
Resources: Available.
Product information: The owner had many changes of mind because the
large committee representing the owner later in the project had been left
out in the earlier phases. The architect had to revise the program done by
another architectural firm. The GMP documents were incomplete, but con-
struction documents were fairly good.
Optimization information: The owner was brought in too late to the
process and made scope changes. The contractibility input by the contractor
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was poor. It was hypothesized that the contractor had a vested interest in
keeping the budget low until they were required to guarantee the price. No
operability input was received.
Performance information: The absence of quality control was the only
deficiency in this category.
External constraints: The site size and height restrictions severely limited
the building. Severe changes from the owner's home office impacted the
project.
Product: Poor site and poor operations of facility.
Success: Average to poor.

Lessons Learned
Owner: Hard to work with an architect located off site. Must have a good
on-site project manager. Must have high-level people involved in the proj-
ect. A precise delegation of authority is essential.
Architect: The owner's decision-making cycle must be quick and respon-
sive. Resist a project manager and work for structured owners. Pay the fee
requested.
Engineer: Insist on user-groups involvement during the design phase.
Contractor: Evaluate subcontractors and material suppliers at the end of
the project. Panelize as much millwork as possible on projects of this type.

NUMERICAL RESULTS

The data obtained from the questions is transferred onto a data analysis
sheet (Figs. 5 and 6) for each project. The data analysis sheet requires the
researcher to evaluate the quality of each major element being performed
for each of the five project participants identified.
Thus, each subcategory, e.g. facility team, has five possible elements.
These elements represent the teams provided to manage, plan, design,
construct, and operate the facility. To rank the quality and timeliness of
the element associated with a particular project function, there must be
agreement from the parties questioned and physical evidence, where pos-
sible, regarding the existence, timeliness, and quality of the subject subele-
ment. For example, in evaluating the planning information or program, the
researcher would check the response of the planner and designer, since the
program flows from the planner to the designer.
Fig. 7 provides a numerical representation of the data collected from the
projects. The top section of the figure indicates the closeness of fit to the
ideal situation predicted by the model; the lower section represents the
participants' views of project success. The product category indicates par-
ticipant's views of the building end product as a physical item; the success
indicators define the broader project issues such as profit, meeting objec-
tives, and reputations.
The values for such subcategory in the left-hand column of the upper
section of Fig. 7 are derived as follows. The manager, planner, designer,
contractor, and operator are all ranked as either 0 or 1 for each element of
the subcategory. A 0 means that everything was performed correctly; a 1
indicates that this function was below average or not performed. The num-
bers are then added for each sub category to give the indicated score (shown
in Fig. 7 as a single entry). A low score of 0 indicates good performance;
a high score of 5 indicates poor performance. The variable at the bottom
of the upper section, "CFIT," indicates the closeness of fit to the modeled
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FUNCTION PROJECT NUMBER

SUBCATEGORY Mi H2 Rl R2 Ol 02 m I H4 3 0 3 0 0 4 HS H6 OS OS H7 va 5
Facility team 1 3 3 3 0 3 0 1 2 1 1 0
Contracts 0 1 0 1 0 3 0 1 2 1 1 0 3 1 0 0
Experience 0 1 0 4 0 2 0 2 1 0 1 2 2 1 0 0
Resource! 0 0 0 0 0 0 0 0 0 1 2 1 1 0 0 0
Product Info 0 1 1 1 1 2 1 2 1 1 1 2 1 1 1 0
Optimization Info 0 2 0 2 0 3 1 2 3 1 2 2 2 1 0 2
Performance Info 1 1 0 0 0 1 0 0 0 0 0 0 1 1 0 1
CFIT 2 9 4 11 1 14 3 10 7 4 8 9 11 6 1 8

External 3 2 3 2 3 2 1 3 2 2 3 4 3 1 1 1
Products 0 0 0 0 0 2 0 0 2 1 1 1 0 0 0 2

SUCCESS
Manage 5 4 4 2 5 4 5 4 4 5 3 3 2 4 5 4
Plan 3 3 4 5 5 3 4 5 4 5 4 3 3 4 5 5
Design 3 5 1 4 1 3 5 4 2 3 4 5 4
Construct 4 3 5 2 5 3 4 2 4 5 5 4 4 3 5 3
Operate 3 5 2 2 4 4 4 3

SUM ALL 12 13 13 9 20 11 17 12 18 25 18 14 16 19 24 19
NO ALL 3 4 3 3 4 4 4 4 5 5 5 5 5 5 5 5
SUMMDC 12 10 13 9 15 9 13 9 11 15 11.5 9 10 11 14.5 11
SALL 0.80 0.65 0.87 0.60 1.00 0.55 0.85 0.60 0.72 1.00 0.72 0.56 0.64 0.76 0.96 0.76
SMDC 0.80 0.67 0.87 0.60 1.00 0.60 0.87 0.60 0.73 1.00 0.77 0.60 0.67 0.73 0.97 0.73

FIG. 7. Success Factor Data for 16 Projects

functions for the whole project. A low score is 0 (excellent) and the max-
imum score is 35 (worst case).
The calculation of CFIT did not include data from the two question
subcategories "External" (constraints) and "Products," which are included
as two separate line items. External constraints describe factors beyond the
control of the project team, not functions performed. Products describe the
satisfaction of the respective players with the facility. These two were in-
cluded in the questions to aggregate these comments and separate them
from the required subcategory data.
The lower section of Fig. 7, titled "SUCCESS," measures the participant's
success ranking of the project. The ranking scale for success is as follows:
1 = very unsuccessful; 2 = poor; 3 = average; 4 = better than average;
and 5 = outstanding. In some cases success rankings could not be collected,
and these fields in the figure are left blank.
The numbers at the bottom in the row "SALL" are a weighted percentage
rating given the success ratings. The second number, "SMDC," is developed
using a combined manage and operate score; a combined planning and
design score; and a construction score; each weighted as three equals. In
both cases ("SALL" and "SMDC") 1.0 indicates a very successful job, and
0 indicates a very unsuccessful project.
SALL and SMDC are calculated as follows:
SUM ALL
SALL (1)
NO ALL-5
SUM MDC
SMDC (2)
3-5
where NO ALL = number of success responses used in the calculation.

ANALYSIS OF RESULTS

Several types of analysis are discussed. First, projects are grouped into
pairs of similar buildings. Both projects in each pair were proposed by a
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common sponsor company. The results are analyzed to determine whether

projects that were closer to the modeled structure were more successful
than those that were further from the model. Second, all projects examined
by each data collector were summarized, their closeness of fit to the model,
and performance were ranked and correlated. Third, all projects were grouped
by type for a similar analysis. A fourth analysis of all projects studied was
performed and the results correlated. All four analyses used the following
procedure.

1. Rank the closeness of fit (CFIT) of each project in each group (see
"CRANK," in Fig. 8).
2. Rank the success (SMDC) of each project in each group (see "SRANK,"
in Fig. 8).
3. Compute Spearman's rho between rankings in steps 1 and 2

rho = 1 —-— (3).

n\nl —
where d = difference between the CFIT and SMDC ranks for each of the cases
in the given group; and n = number of cases in the group being ranked. Results
are presented in Fig. 8.

FUNCTION PROJECT NUMBER

SUBCATEGORY HI H2 Rl R2 Ol 02 H3 H4 03 04 H5 H6 OS 06 H7 H8
Facility team 1 3 3 3 0 3 1 3 0 0 1 2 1 1 0 5
COD tracts 0 1 0 1 0 3 0 1 2 1 1 0 3 1 0 0
Experience 0 1 0 4 0 2 0 2 1 0 1 2 2 1 0 0
Resources 0 0 0 0 0 0 0 0 0 1 2 1 1 0 0 0
ProductInfo 0 1 I 1 1 2 I 2 1 1 1 2 1 1 1 0
Optimization Info 0 2 0 2 0 3 I 2 3 1 2 2 2 1 0 2
Performance Info 1 1 0 0 0 1 0 0 0 0 0 0 1 1 0 1
CFIT 2 9 4 11 I 14 3 10 7 4 8 9 11 6 1 8

External 3 2 3 2 3 2 1 3 2 2 3 4 3 1 1 1
Products 0 0 0 0 0 2 0 0 2 1 1 1 0 0 0 2

CRANK PAIR 1 2 1 2 1 2 1 2 2 1 1 2 2 1 1 2
CRANK SPONSOR 1 3 2 4 1 4 2 3 2 1 3 4 4 2 1 3
CRANK TYPE 2 6 1 2 1 6 3 8 4 2 4 6 5 3 1 4
CRANK ALL 3 11 4 14 1 16 4 13 8 4 9 11 14 7 1 9

SUCCESS
Menage 4 4 4 2 4 4 4 4 4 5 3 3 2 4 5 4
Plan 3 3 4 4 4 3 4 4 4 4 4 3 3 4 5 5
Design 3 4 1 4 1 3 5 4 2 3 4 5 4
Construct 4 3 4 2 4 3 4 2 4 5 5 4 4 3 5 3
Operate 3 5 2 2 4 4 4 3
SUM ALL 12 13 13 9 20 11 17 12 18 25 18 U 16 19 24 19
NO ALL 3 4 3 3 4 4 4 4 5 4 5
. 5 5 4 5
SUMMDC 12 10 13 9 14 9 13 9 11 li 11.5
sy 10 11 14.5 11
SALL 6.80 0.6$ 0.81 0.60 1.00 0.44 0.85" 0.60 0.72 1.00 0.72 0.56 0.64 0.76 0.96 0.76
O.tJO 0.67 0.87 0.60 1.00 0.60 0.87 0.60 0.73 1.00 0.77 0.60 0.67 0.73 0.9^7 0.73
mac
SRANK PAIR 1 2 1 2 1 2 1 2 2 1 1 2 2 1 1 2
SRANKSPONSOR 2 3 1 4 1 3 2 3 3 1 2 4 4 2 1 2
SRANK TYPE 3 6 1 2 1 6 2 7 3 1 4 7 5 3 1 5
SRANK ALL 6 11 4 13 1 13 4 13 8 1 7 13 11 8 3 8

d sponsor 1 0 -1 0 0 -1 0 0 1 0 -1 0 0 0 0 -1
Rho sponsor 0.8 0.9 0.8 0.9
dtype 1 0 0 0 0 0 -1 -1 -1 -1 0 1 0 0 0 1
Rho rhoH 0.94 rhoO 0.94 rhoR 1
dull 3 0 -1 -1 0 -3 0 0 0 -4 -2 2 -3 1 2 -1
Rho all 0.91

FIG. 8. Analysis of Success Factors for 16 Projects

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Pairwise Analysis
In this section, projects are grouped into pairs of similar buildings. Both
projects in a pair were proposed by a common sponsor company. The results
are analyzed to determine whether projects that were closer to the modeled
structure were more successful than those that were further from the model.
The pairs selected for comparison were HI and H2; R l and R2; Ol and
02; H3 and H4; 0 3 and 0 4 ; H5 and H6; 0 5 and 06; and H7 and H8.
"CRANK PAIR" and "SRANK PAIR" indicate the ranking of CFIT and
SMDC, respectively, for each pair. In all cases, the project that had a higher
score for CFIT (see Fig. 8) was the poorer performer as indicated by SMDC.
The rho for each project was 1.0, indicating perfect correlation.

Analysis by Sponsor
The following five groups of projects with the same sponsor were ana-
lyzed.

Sponsor 1) Projects: HI, H2, Rl, andR2

Sponsor 2) Projects: Ol, 02, H3, andH4
Sponsor 3) Projects: 03, 04, H5, andH6
Sponsor 4) Projects: 05 and 06
Sponsor 5) Projects: H7 and H8
For each sponsor, the CFIT and SMDC scores were ranked and corre-
lated. Spearman's rho was calculated for each group, and the results are
shown in Fig. 8. In all cases rho was 0.8 or higher—this indicates excellent
correlation (rho > 0.5 indicates significance and rho > 0.75 indicates ex-
cellent correlation).

Analysis by Type of Project

The projects all belonging to the H, O, and R groups were analyzed and
ranked accordingly. Rho H, rho O, and rho R were all above 0.94 and
showed excellent correlation by project type—which was expected.

Analysis of All Projects

When all projects were analyzed together, the resulting rho was 0.901.
This indicates that the testing method and critical success factors are ap-
plicable to all projects studied.

COMMENT ON RESULTS

All four methods of analysis showed that projects closer to the modeled
structure or those where the elements of the function subcategories were
properly performed enjoyed better success for all parties than those projects
further from ideal. This held true for project pairs, those proposed by the
same sponsor, those in the same industry market segment, and for all proj-
ects analyzed together. This correlation indicates that the seven function
subcategories and their 35 elements are indeed project success factors.
When examining Fig. 8, the reader can infer the relative importance of
the success factors. The facility team; contracts, changes, and obligations;
facility experience; and optimization information varied significantly be-
tween successful and unsuccessful projects. These four factors can then be
deemed the critical project success factors (CPSFs).
One factor, the product information (i.e., design documents and the
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coordination of the discipline during the design phase), was a problem on

both poor and good jobs. In general, projects with good teams, contracts,
experience, and optimization input were able to work around incomplete
drawings and program changes. Those with poorly functioning teams could
not react to this condition. Two other factors had lesser significance on the
project. The supply of resources by the members of the team was generally
good, and no instances were found in which they were significantly re-
stricted. Performance information was found to be formally provided in the
construction and operational phases, but informally provided in the planning
and design phase (due to the small design teams). Quality control by the
general contractor was the most common deficiency.
The results of the research indicated that there were seven success factors.
Of these seven, four were found to be critical: (1) A well-organized, cohesive
facility team to manage, plan, design, construct, and operate the facility.
Team chemistry was typically developed by common goals and activities.
(2) A series of contracts that allows and encourages the various specialists
to behave as a team without conflicts of interest and differing goals. These
contracts must allocate risk and reward in the correct proportions. (3) Ex-
perience in the management, planning, design, construction, and operations
of similar facilities. And (4) timely, valuable optimization information from
the owner, user, designer, contractor, and operator in the planning and
design phases of the facility.

Areas for Further Research

Research often uncovers new questions in the process of providing an-
swers to previously asked questions. Several topics in this work also need
further refinement: (1) The research showed by analysis of the data that
the listed factors are significantly present in the projects considered most
successful. The CPSFs should also be tested on one or more projects to
determine if project success is guaranteed by the mere presence of these
factors. (2) There is a need to systematically develop procedures to ensure
the successful performance of each factor. (3) To develop a predictive model
the financial impacts of the absence of the CPSFs should be studied and
compared with the cost of achieving the CPSFs on a project. With this
information the optimum level of CPSFs may be predicted for a given
project. And (4) this study focused on 16 projects from a select industry
category. Further research is needed to conclusively test these CPSFs.

CONCLUSIONS

The initial objectives of this research were to define the critical factors
that lead to project success and provide a forecasting tool to enable parties
to rapidly assess the possibility of a successful project from their viewpoint.
These, general objectives were met through the accomplishments of the
research. More importantly, a list of specific factors were identified as critical
to the success of projects.
The topic of this research required a critical look at projects that were
deemed less successful by their nominators, thus creating potential embar-
rassment to those involved or noncooperation with the research. The re-
search team was able to avoid this danger successfully; made possible by
the excellent cooperation and support the Consortium for the Advancement
of Building Sciences (CABS) members provided. Other participants in the
projects also displayed a remarkable spirit of cooperation and genuine in-
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teres! in the successful outcome of the research. Under these conditions the
writers were able to bring the project to successful conclusion.
The research team set out to study CPSFs applicable to building projects,
based on established theoretical work in construction process modeling. The
research was successful in identifying a number of CPSFs based on extensive
field research on 16 selected construction projects. Clearly, some questions
await further study. Although more projects are necessary to provide con-
clusive evidence, this work provided significant insight into the essential
elements of project success.

ACKNOWLEDGMENTS

The researchers wish to thank the Consortium for the Advancement of

Building Sciences, and the Ben Franklin Partnership for funding the re-
search, We also express our gratitude to the companies that participated in
this research.

APPENDIX. REFERENCES

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Ferguson, C. R., and Dickinson, R. (1982). "Critical success factors for directors in
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Morris, P. W. G. (1983). "Managing project interfaces—key points for project
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