Reducing project duration is a significant concern for many industries in the speed-to-market era. Numerous studies have examined the effects... Show moreReducing project duration is a significant concern for many industries in the speed-to-market era. Numerous studies have examined the effects of project delivery methods on speeding up the process of construction. However, no study has quantitatively compared the effect of using different compensation strategies on schedule duration and schedule reduction. Using the data obtained from 175 international construction projects, this paper focuses on examining the influence of compensation strategy (lump sum versus reimbursable) on project duration while specifically taking into account the industry sector (heavy industrial versus light industrial). The results of the study provide empirical evidence that using a reimbursable compensation strategy can potentially shorten the procurement duration, construction duration, and overall project duration of heavy industrial projects. However, reimbursable contracting did not appear to reduce the project duration on light industrial projects. Show less
