Project company
A project is a singular, time-limited and complex task. Respect, a distinction is the degree of becoming independent following types of project organization : line project organization , staff line project organization , matrix project organization , pure project organization and project company. The latter represents the highest degree of independence.
In contrast to the pure project organization, which is only organizationally independent, the project company is also legally independent. It thus represents a separate company that was created just for the project.
features
The project is usually very large, long-lasting and very complex. As a result, it is sometimes advisable to outsource the project task from the primary organization and make it organizationally independent. The internal organizational structure of the project company can be designed like any other company. As the project size increases, the overall project is divided into sub-projects, and a project hierarchy consisting of overall project manager and sub-project manager is established.
The project manager, who is also the company manager, has full authority to issue instructions and management. The employees are directly subordinate to him, i. H. They receive instructions exclusively from him. The members of the project team are only hired for this project. If the project company does not take on new, initially unintended tasks, they will be dismissed after the project company is dissolved.
For a better understanding, it is important to go into more detail about the reasons for the legal independence (the target structure of the project, the singularity (risk) of the project task, the complexity of the project task and the number of project sponsors and the financing of the project).
The legal independence of a project must always be considered if the goals of the project conflict with the goals of the base organization (project-external goal conflicts), for example if the base organization is subject to the principle of thrift, while the project decisions involve weighing up input and output in accordance with the principle of economic efficiency . Since the company and project goals are identical, the problem of an external conflict of goals cannot arise. It should be emphasized that in the event of an internal conflict of objectives (between performance, cost and deadline target), it is possible to refrain from founding a project company, as conflict-reducing interventions in legally autonomous institutions are difficult.
When deciding to found a project company, the task characteristic “ singularity ” plays a major role. Since project tasks have to be solved innovatively or under exceptional conditions, they are subject to a significantly higher risk than routine tasks. The legal independence reduces the risk that failures endanger the existence of the grassroots organization. B. through monetary losses or loss of image and prestige.
Due to the high complexity of the project tasks and the need to search for interdisciplinary solutions, it is necessary to involve several project sponsors (companies). As it is no longer possible to handle the project within a basic organization or a project organization integrated into a company, an independent project company is founded. The joint implementation of projects by several companies is usually chosen for reasons of capacity or risk sharing. In the case of project companies with several project sponsors, one speaks of interorganizational project management . Examples of this are working groups and consortia (legally independent companies, which as a rule have the legal form of a company under civil law) and general contractors. The client concludes a contract with a general contractor to carry out the entire project. The general contractor has the project management and responsibility. He concludes contracts with so-called subcontractors for the fulfillment of partial tasks of the project.
Under a project finance funding is meant a self-sustaining project, d. H. the lender is to be served from the resulting cash flow of a project. Compared to traditional loan financing, the future profit potential of the project forms the focus of the credit check (a global risk for all project sponsors). Project financing is used, for example, for transport projects, the construction of power plants, refineries, hotel complexes, etc. It requires the establishment of an independent company. As a rule, one chooses the legal form of a corporation to which the project loans are paid out and which appears as a debtor to the credit institutions . Project financing means that the project-specific risks are distributed among the project sponsors and the lenders.
Choice of legal form
Since the choice of the legal form of a project company is a meta decision, i.e. one of the decisions that precede other decision-making processes and only need to be made once or rarely, it must be given special importance. It is an important determinant for project success.
The legal forms of civil law company (GbR), partnership (OHG or KG) or corporation (GmbH or AG) are available. In practice, the limited liability company is more likely to be chosen.
advantages
Advantages of organizational independence
The employees work full-time for the project company. You are only occupied with completing tasks within the framework of the project. There is no double employment in primary and secondary organization (project organization). Since they are not also involved in other tasks, optimal use of personnel can be guaranteed. In addition, competencies and responsibilities are clearly regulated. The cooperation between employees therefore usually works well. Since the project manager is also the company manager, there are no conflicts of competence with regard to the authority to issue instructions and management.
Advantages of legal independence
Smaller corporate units and open, less formalized communication structures shorten the information and decision-making paths. The legal independence increases the ability to cooperate and independent project financing (capital procurement via the market) is ensured. Any risks can be transferred from the base organization (s) to the project company.
disadvantage
Due to the fact that the project company is dissolved after the end of the project, the employees try to extend the project time in order not to be dismissed too quickly. There is a risk that if the projects become legally independent, the tendency of the projects to "live of their own" will be reinforced; the danger of an organization as an end in itself increases. Furthermore, the project task-specific establishment of the organizational structure results in an inflexibility with regard to changes in the task structure. Since there are no non-project-related tasks at the project company, it is difficult to compensate for peaks in the workforce.
Areas of application
The project company organizational form is mainly used for large projects. For example, the Olympia Baugesellschaft mbH was founded as part of the " Olympic Summer Games 1972 " event in Munich or the Expo AG to prepare and hold the 1995 Vienna-Budapest World Exhibition . Other well-known project companies are working groups (ARGE), consortia, general contractors in the construction industry, in aerospace, research and development.
Individual evidence
- ↑ Grün, Oskar: Organization . In: Scheuch (Hrsg.): Allgemeine Betriebswirtschaftslehre, Vienna 1990, p. 492
- ↑ Schreyögg, Georg: Organization, basics of modern organizational design . Wiesbaden, p. 194
- ↑ Doralt, Grün, Nowotny: The legal form decision in the project organization . Vienna 1978, p. 5f
- ↑ Doralt, Grün, Nowotny: The legal form decision in the project organization . Vienna 1978, p. 6ff
- ↑ Doralt, Grün, Nowotny: The legal form decision in the project organization . Vienna 1978, p. 9f
- ^ A b Corsten, Hans: Project Management . Munich-Vienna 2000, p. 81ff
- ↑ Doralt, Grün, Nowotny: The legal form decision in the project organization . Vienna 1978, p. 1
- ^ A b Bühner, Rolf: Strategy and organization - analysis and planning of corporate diversification with case studies . Wiesbaden 1993, p. 454
- ↑ Doralt, Grün, Nowotny: The legal form decision in the project organization . Vienna 1978, p. 7