The purpose of the OS2 Industry Affiliates Program is to conduct fundamental research in new business and commercial models for the capital projects industry. This is especially needed today because the construction industry suffers from low investments and poor productivity growth. Capital projects are risky and wasteful. Previous studies demonstrated that a significant percentage of projects did not meet their business objectives and could not be completed within 10% of their budgeted cost and schedule. Moreover, approximately 40% of the capital spending on any given project is “wasted” due to non-value added transactional costs throughout the supply chain.
There is a real need to create a new business platform to streamline the capital project delivery process. The inadequacy of current models has been extensively documented in the recent past.
The primary objective of the IAP is to develop a new business platform for the capital projects industry to foster organic growth. OS2 IAP research topics will span all subjects that can benefit capital project delivery, including: industrial engineering, risk management, systems engineering, finance, accounting, construction engineering, law, computer science, organizational behavior, project management, and communications, among others. Engineers, business administrators, consultants, and scientists with critical specialties will be involved in the OS2 IAP research activities.