Sustainable Asset Management – Built Environment

Sustainable Asset Management Framework for the Federal Sector Built Environment A sustainable asset management strategy for federal sector facilities requires… Addressing deferred […]

Costly Aspects of Percentage-Based JOC Programs

Tech Note — Costly Aspects of Percentage-Based JOC Programs Percentage-based JOC (Job Order Contracting) fees (commonly 1–5% or higher of construction volume) create ongoing, volume-linked administrative costs that scale linearly with spending and can materially increase lifecycle program cost compared with fixed-fee or owner-managed alternatives. Replacing percentage fees with owner-managed models (annual license, fixed implementation, or hourly support) typically reduces administrative cost by 4–6× (or more) while preserving locally researched Unit Price Books (UPBs) and owner control. How percentage-based fees generate cost and inefficiency Direct fee drag: A 1–5% administrative fee on every dollar of annual construction is a recurring tax on delivery that compounds with higher spending years. Misaligned incentives: Vendor revenue grows with volume, potentially incentivizing higher-priced change orders, scope creep, or conservative pricing margins to preserve vendor revenue. Reduced price transparency: Proprietary UPBs and closed-data models make it harder for owners to validate unit rates, increasing audit and oversight effort or forcing reliance on vendor assurance rather than independent verification. Ongoing outsourcing cost: Managed programs outsource price proposal review, auditing, and dispute resolution, shifting recurring labor cost to the vendor instead of building owner capacity. Opportunity cost: Money paid as percentage fees is unavailable for capital work; for public owners this reduces realized service delivered for the same budget. Budget volatility: Because fees scale with spend, program administration costs become unpredictable during large projects or emergency spending spikes. Cost drivers in a percentage-fee JOC program (detailed) Fee rate: The single largest driver (e.g., 1% vs 5% changes the absolute cost by 5×). Annual construction volume: Linear multiplier on fee rate. Proprietary data licensing: May be bundled with percentage fees, hiding recurring data costs. External audit and dispute resolution: Additional per-event charges or retained monthly costs. […]

Unit Price Books and the Foundation of Defensible Construction Cost Management

Locally researched, granular Unit Price Books (UPBs) represent the most reliable and defensible foundation for procurement, cost control, and program delivery—particularly in […]

Verifiable Construction Estimating

Verifiable Construction Estimating drives cost visibility and cost management. This innovative approach helps project managers and stakeholders understand the intricacies of budgeting […]

Proactive Preventive Maintenance – FM

Proactive Preventive maintenance (PM) is widely recognized as one of the most effective strategies for controlling facility operating costs, improving reliability, and […]

Construction Cost Transparency is not optional

Construction Cost Transparency is not optional for real property owners, architects, builders, or oversight groups. In today’s volatile construction environment, cost transparency […]

Understanding Independent Government Cost Estimates

A public sector organization benefits greatly by appropriately preparing an independent government estimate (IGE) for facilities repair, renovation, maintenance, and new build projects.  Their primary value lies in helping public sector organizations validate contractor proposals with respect to  reasonableness and realism.

Boosting Collaborative Project Delivery for Better Results

A collaborative project delivery approach changes the game. Emphasizing the importance of Collaborative Project Delivery ensures all parties are aligned and working towards common goals.

Independent Government Cost Estimate

Any public sector organization can benefit greatly by appropriately preparing an independent government cost estimate (IGE).  The primary value lies in helping public sector organizations validate contractor proposals with respect to  reasonableness and realism.

Role of Pre-Construction in Success

The Critical Role of Pre-Construction in Success. Pre-construction is the phase of a project where the greatest influence on cost, schedule, and quality outcomes can be achieved. Decisions made during this stage have long-lasting impacts throughout the lifecycle of the facility. Effective pre-construction planning is especially critical for repair, renovation, maintenance, and new construction projects, where cost control and schedule adherence are essential.

Construction Value Engineering and Cost Estimating

Construction Value Engineering and Cost Estimating go hand in hand.

Simply put, value engineering is a process intended to balance between function, performance, quality, safety and cost. The appropriate balance in alignment with organizational requirements results in the maximum value for the project.

Dependable Cost Estimating Software for Construction

Dependable Cost Estimating Software is needed to develop reliable construction cost estimates. Requirements include:
1. Objective, current, verifiable, and local granular construction tasks inclusive of labor, material, equipment, and productivity components as well as a unit of measure.
2. Cost data organized by a well-defined Work Breakdown Structure (WBS) and standardized data architecture such as expanded CSI Masterformat.
3. The ability to create modified/custom unit price line items by adjusting labor, material, equipment, crew, and productivity data.
4. Cost estimate copy and paste.
5. Collaborative online cost estimate review and/or creation.
6. Automatic cost estimate comparison.
7. Ease-of-use.
8. Scalability.
9. Security.

FM Productivity Constraints – Public Sector

FM productivity constraints remain a barrier for most public sector areas.
To address rising sustainment (repair, renovation, maintenance) and new build  costs, robust, integrated Planning, Procurement, and Project Deliver Frameworks increasing needed to maximize resource utiization.

Managing Change Orders

Managing change orders for any size of repair, renovation, maintenance, or new build project, whether IPD, alliance job order contracting, DB, DBB, ‘et al’, simply requires a robust preconstruction process in most instances.
A granular, well communciated (among owner and design/builders), well organized (using a standardized data architecture such as expanded CSI MasterFormat) DETAILED SCOPE OF WORK, eliminates of 90% of change orders.
Change orders should not result from errors and omissions, coordination issues, means and methods, or material substitutions as these are all manageable via application of robust, detailed scope of work (SOW) development.

Better CONSTRUCTION COST ESTIMATION workflows

Better CONSTRUCTION COST ESTIMATION workflows can be used by owners and design-builders to better navigate the journey to improved cost visibility and cost management.  

STOP Thinking about ACCURATE CONTRUCTION COST ESTIMATES

“Accurate construction cost estimates” is a misnomer, however, and estimate can and should be Objective, Current, Granular, and reflect LOCAL Market Labor, Material, and Equipment costs.   

FSRM – Facilities Sustainment, Restoration, and Modification

Facilities sustainment – The maintenance and repair activities necessary to keep an inventory of facilities in good working order. It includes regularly scheduled adjustments and inspections, preventive maintenance tasks, and emergency response and service calls for minor repairs.

Introducing LEED v5 – For what it is worth.

Introducing LEED V5, the next version of the globally recognized comprehensive framework for green building practices. Embracing market demands for greater accountability, v5 will champion solutions to aligning the built environment with critical imperatives including decarbonization, ecosystem conservation and restoration, equity, health, and resilience. LEED v5 will drive real-world impact and positive change worldwide.

Beware of Using Assemblies for Job Order Contracting

Beware of Using Assemblies for Job Order Contracting. Some suppliers of Job Order Contracting software and cost data use “Assemblies” within what is supposed to be a unit price book (UPB). Line item estimating provides a detailed and transparent breakdown of costs, making it easier to track expenses and communicate with stakeholders. 

OpenBUILD(TM) Integrated Project Construction Delivery Solution

Integrated Project Construction Delivery Solution thar provides a standardized approach to construction data collection that collates and shares data on all public sector projects across all locations in a common format across public and private sector audiences to leverage the latest methods and tools supporting optimal project planning, costing, procurement, delivery, and management,

Alliance Contracting Key Aspects

Alliance Contracting / Alliance Partnering in ConstructionWhen properly designed, implemented, and managed, drives innovation, collaboration, and best value outcomes for all parties.

Defining a CREDIBLE Construction Cost Estimate

A credible cost estimate is one that has been derived using local market granular information. A unit cost is assigned to each of the facility components or construction tasks as represented by the bill of quantities.

Creating a detailed line item construction cost estimate

What’s involved in creating detailed line item construction cost estimate contains a complete and accurate descriptions aof a granular construction task to credibility support analysis.   Unit prices and quantities include individual LOCAL MARKET labor, material, and equipment information and cost breakdowns as well as crew and productivity information.

Controlling Construction Costs, Rocket Science, and Time Travel

Controlling construction costs is not rocket science, nor does it involve time travel. Facilities repair, renovation, maintenance, and new build projects can be delivered on time and on budget.

JOC Contractor Evaluation

JOC contractor evaluation is an ongoing process, begining with their response to a Job Order Contract Request for Propsals for design-builders and continuing throughout the life-cycle of the JOC Program.

Developing an Efficient JOC Program Framework

Developing an efficient JOC Program Framework requires a commitment to collaborative and integrated Planning, Procurement, and Project Delivery teams. Unfortunately most JOC […]

Robust Process Drives Efficient Construction Delivery

Robust process integrating multi-stakeholder engagement enables consistent delivery of quality repair, renovation, maintenance, and new build projects on time and on budge. […]

Poor Construction Estimates – Root Cause

The are two primary root causes of poor construction cost estimates:

Lack of early and ongoing communication between all relevant parties.
Failure to use granular, current, and well organized construction cost data specific to the local market.

Objectively Validate Contractor and Subcontractor Quotes

Objectively VALIDATE Contractor and Subcontractor Construction Cost Estimates Construction cost management capabilities are critical to the success of any repair, renovation, maintenance, […]

Embrace the next generation of Construction and Sustainable Lifecycle Facilities Management!

Embrace the next generation of Construction and Sustainable Lifecycle Facilities Management! Move all repair, renovation, maintenance, and new build projects forward with proactive, informed decisions.

Sustainable Facilities Management – Repair, Renovation, Maintenance, and New Builds

Sustainable facilities management is the allocation of financial, environmental, and other organizational resources in the most efficient way possible. Attainment of sustainable […]

Construction Productivity Solution – Provide support for dealing with the conflicting interests of multiple stakeholders

A robust Construction Productivity Solution must include the ability to provide support for dealing with the conflicting interests of multiple stakeholders is CRITICAL to consistent achievement of best value construction outcomes.

Systems Enablers for Sustainable Facilities Management, Repair, Renovation, and Maintenance

Systems Enablers for Sustainable Facilities Management are critical considerations for any real property portfolio owner. In fact, they dictate how efficiently or how poorly an organization manages facilities stewardship requirements.