Analysing and modelling the critical success factors of project management offices in the construction industry

Rapid urbanization has led to an ever-increasing need for running megaprojects in a variety of construction and infrastructure sectors, which calls for the active involvement of many designers, subcontractors, and suppliers under the supervision of principal Engineering, Procurement, and construction (EPC) contractors. The contemporary literature emphasizes a need to investigate how project management offices (PMOs) can be effectively operated towards boosting resource productivity and embedding agile and integrated multi-project management mechanisms rather than relying on traditional stand-alone controls. This empirical research develops a PMO success model using a two-phase mixed-method study design; The first phase aims to identify success factors (quantitative approach) and the second phase explores optimal implementation strategies (qualitative approach). Structural equation modelling (SEM) was conducted using survey data collected from 395 experts in Australian principal contracting organizations. Five data-driven scales include (1) alignment to strategies and business objectives, (2) leverage organizational capacities, (3) competent human resources and supportive culture, (4) effective support of project delivery, and (5) effective information and knowledge management. This study extends the current literature and contributes to bridging a gap in understanding how these units should be optimally operated to capacitate contractors in handling multiple large infrastructure projects while addressing conflicting priorities.