Benefits of Reduced Construction Time:
Korean shipyards proved that by pre-negotiating an exact
delivery time with a detailed work breakdown structure and
essentially outlawing change orders, it was possible to
decrease construction time by 30%. Analysis of construction
costs has shown that by decreasing the time taken from
concept design to delivery by 50% it will be possible to
decrease total costs by as much as 30% (19) . Although it
may be infeasible and undesirable to decrease costs by 50%,
it is clear that the time value of money should play a much
more important role in the decision making aspects of the
naval procurement process. By having longer projects the
Navy incurs the following costs: