There are multiple types of construction delivery methods that strive to achieve superior outcomes to traditional design-bid-build, design-build, CM@R, etc. These including alliance contracting/project alliancing, LEAN construction, integrated project delivery, LEAN job order contracting. While all are “relational contracting and/or relational project delivery methods” they can vary in terms of level of development, available tools, and actual work scope. Focus of all, however is upon improving outcomes for involved parties.
“Coming together is a beginning, staying together is progress, and working together is success.”
– Henry Ford
What you need to know about LEAN construction, integrated project delivery, LEAN job order contracting, and project alliancing
- LEAN construction can refer to a “philosophy” (examples: Last Planner, Kaizen, 5s, six sigma…), or a LEAN project delivery methods or LEAN planning, procurement, and project delivery method (integrated project delivery, LEAN job order contracting…). The difference being that the philosophies are “generalized approaches” and/or “ways of thinking”, whereas LEAN project delivery methods are proven, robust processes and workflows than can be deployed per specified requirements.
- Per #1, LEAN construction be used to refer to a “philosophy” or to a planning, procurement, and/or project delivery method. That said, Integrated project delivery, and LEAN job order contracting are both forms of project alliancing, as well a LEAN planning, procurement, and project delivery methods, however, LEAN construction is not necessarily a planning, procurement, or project delivery methods.
- Both Project Alliancing and Integrated Project Delivery are collaborative, relational methods, however IPD and LEAN Job Order Contracting incorporate specific LEAN construction processes and workflows.
- Alliancing, like IPD and LEAN Job Order Contracting, developed due to the need for a solution superior to design-bid-build, design-build/design construct). It collaboration between the real property owner and multiple service providers whereby risk and reward are better defined, managed, and shared. One definition, among may of alliancing – “A method of procuring and project delivery of construction services where all parties are required to work together in good faith, acting with integrity and making best-for-project decisions. Working as an integrated, collaborative team, they make unanimous decisions on all key project delivery issues. Alliance agreements involve joint management of risk for project delivery. All parties jointly manage that risk within the terms of an ‘alliance agreement’, and share the outcomes of the project”.
- LEAN construction in terms of a philosophy actually has no commonly accepted definition. One example is as follows… “A combination of original research and practical development in design and construction with an adoption of lean manufacturing principles and practices (i.e., Toyota Management System) to the end-to-end design and construction process. Lean construction is concerned with the alignment and holistic pursuit of concurrent and continuous improvements in all dimensions of the built and natural environment: design, construction, activation, maintenance, salvaging and recycling.” Austin 2016 . Many definitions include characteristics such as “customer focus”, “workplace standardization”, “waste elimination”, and “continuous improvement”.
- Integrated project delivery and job order contracting have more standardized and “accepted” definitions as well as supporting tools, workflows, information sets, and technologies. Integrated project delivery – “Integrated project delivery (IPD) is a collaborative alliance of people, systems, business structures and practices into a process that harnesses the talents and insights of all participants to optimize project results, increase value to the owner, reduce waste, and maximize efficiency through all phases of design, fabrication, and construction.” Job order contracting (JOC) – Job Order Contracting (JOC) is a project delivery method utilized by organizations to get numerous, commonly encountered construction projects done quickly and easily through multi-year contracts for a wide variety of renovation, repair and minor construction projects.
via Four BT, LLC, www.4bt.us – Four BT, LLV (4BT) is the AEC industry’s innovative integrated project delivery, construction cost data, and SAAS technology provider. We help guide organizations to achieve accelerated improvement of their facilities repair, renovation, and construction outcomes through the development ofa culture centered upon delivering customer value, supported by proven LEAN processes, actionable data, enabling cloud technology, and ongoing training.