Authority Structures for Construction Project Management

Many practitioners believe that how one organizes to support a major construction project will have a significant impact on the successful completion of the project. This paper provides a primer on authority structures. The basic corporate organizational forms are described and construction examples are given. The basic authority structures for project management are also described. These forms are the functional, pure project, and matrix. For each form, the advantages and disadvantages as they relate to the project manager's ability to support the project are cited. Nine factors that influence the choice of authority structure are discussed. The role of the project manager is described. His effectiveness as a manager is related to the organizational form, hierarchy within the organization, authority gap, management style, and the ability to resolve conflict. Six principles for developing a project organization and selecting a project manager are given.