Collaborative Construction Contracts Drive BIM, not Technology
Introduction
BIM, the life-cycle management of the built environment supported by digital technologies, holds promise, yet remains elusive to many. Inefficient construction delivery methods and poorly designed contracts are the primary cause for inefficiencies across the architectural, engineering, construction, operations, and owner (AECOO) sector. Failure to improve this situation generally stems from cultural, awareness, and competency related issues.
Construction delivery methods and their associated processes, contract documents, including operations manuals/execution plans are directly linked to the success or failure of a BIM.
The business strategy leading to the integration of previously disparate knowledge areas/competencies (design, construction operations, planning, finance), business processes, technologies, and teams is the primary goal of a BIM. Attaining the requisite level of convergence requires use of common terms and definitions, standardized data architectures (Masterformat, Uniformat, Omniclass, etc.), and a shared set of goals, as well as risk/reward among project participants.
Understanding BIM
BIM is not 3D visualization, nor a single vendor’s software product. As defined by the United States National BIM Standards (NBIMS3.0) BIM is consists of three inter-related components – modeling, model, and management.
“Building Information Modeling: A BUSINESS PROCESS for generating and leveraging building data to design, construct and operate the building during its lifecycle. BIM allows all stakeholders to have access to the same information at the same time through interoperability between technology platforms.
Building Information Model: The DIGITAL REPRESENTATION of physical and functional characteristics of a facility. As such it serves as a shared knowledge resource for information about a facility, forming a reliable basis for decisions during its life cycle from inception onwards.
Building Information Management: The ORGANIZATION & CONTROL of the business process by utilizing the information in the digital prototype to effect the sharing of information over the entire lifecycle of an asset. The benefits include centralized and visual communication, early exploration of options, sustainability, efficient design, integration of disciplines, site control, as built documentation, etc. effectively developing an asset lifecycle process and model from conception to facility management.”
Accomplishing BIM requires integrating knowledge across multiple “business domains” – SPACE MANAGEMENT, PROJECT DELIVERY MANAGEMENT, OPERATIONS MANAGEMENT, CAPITAL ASSET MANAGEMENT, and CONTINUOUS IMPROVEMENT – and their associates “competencies” as shown in the figures below.
Figure 1 LEAN[1] Asset Life-cycle Management
Figure 2 BIG DATA – Facility Life-cycle Management
The Role of the Construction Delivery Method
Studies show that only 2.5% of all global construction projects are delivered on-time and on-budget. The use of the appropriate construction delivery methods can improve this staggeringly poor statistic to 90%+.
Construction delivery methods play a significant role in ultimate success or failure of BIM and any renovation, repair, maintenance, or new construction project.
The construction delivery methods that defines roles, responsibilities, risk, deliverables, outcomes, and determines ultimate project success or failure, equally or more so than any other primary consideration.
Within the above graphics, Integrated Project Delivery (IPD), Job Order Contracting (JOC), construction delivery methods can be seen in the top right quadrants. Both are collaborative efficient, robust and transparent implementations of LEAN construction delivery.
Collaborative LEAN construction delivery methods shared the following characteristics:
- Collaboration
- Mutual Respect & Trust
- Financial Transparency
- Owner Leadership without excessive management & control
- Shared Risk/Reward
- Best Value Procurement
- Common Standard Terms, Definitions, & Data Architectures (UNIFORMAT, MASTERFORMAT, OMNICLASS)
- Continuous Education, Training, & Improvement
- Key Performance Indicators (KPIs) / Audits
- Written Execution and/or Operations Manuals (Roles, Responsibilities, Deliverables, Workflows / Standardized Work Processes, Reporting Requirements…) as a Contractual Component
By definition, BIM requires a collaborative construction delivery method due to the need for early and ongoing information sharing across multiple knowledge domains.
The Future
The systemic productivity problems associated to the AECOO sector are traceable to archaic, ad hoc, and antagonistic construction delivery methods. These have unfortunately become part of our culture.
A primary focus upon education and change management is the only viable solution to reducing waste and improving productivity.
Focus must shift from the prevalent “first cost mentality” to “life-cycle cost” planning. On average, only 20% of a built structures cost resides in initial construction. Procurement must shift from “lowest bidder” to “best value”.
Real property owners and facility managers must take on leadership roles in terms of stewardship of the built environment.
Collaboration should be mandated.
[1] LEAN CONSTRUCTION DEFINED
LEAN construction is the adaptation and application of processes from LEAN manufacturing. The latter is believed to have been was first implemented at Toyota Motor Company in Japan. The implementation, known as the Toyota Production System (TPS) was specific to Toyota and has since evolved in multiple forms of “LEAN philosophy”. LEAN is a collaborative business process with a focus upon team collaboration, early and ongoing information sharing, and continuous improvement. Minimizing waste, increasing value, and accepting input from all persons within an organization are the hallmarks of LEAN. LEAN, as a business process philosophy, has been successfully implemented via progressive construction delivery methods for over two decades (Integrated Project Delivery – IPD, and Job Order Contracting – JOC).
JOC, for example, is specifically designed for repair, renovation, sustainability and minor new construction projects. JOC has also been referred to as “IPD-lite”, as IPD is typically associated with major new construction projects. Within JOC, focus is upon long term relationships among all participants and early collaboration among team members. JOC is implemented through an inter-locking set of business processes, a standardized cost database, and is performance-based. As a component of BIM, JOC can be used to deal with the numerous renovation, repair, and sustainability projects encountered by Owners, Contractors, Architects, Engineers and Suppliers, without the waste and burdens commonly associated with design-bid built, DBB. JOC is easily supported by technology to assure rapid and consistent deployment as well as ongoing monitoring and improvement.
The key “take away” is the importance of the inter-relationships and integrated competencies aligned by common goals. In fact, one could easily argue that BIM, collaborative construction delivery are inseparable in practice.
LEAN is focused on the reduction of waste through the efficient assignment and release of work. BIM, IPD and JOC are inherently LEAN. They focus on reducing the total cost of ownership, reducing non-value added processes and providing for more streamlined and predictable release of projects. Predictable work flow and shared goals increased efficiency and decrease costs for Owners, Architects, Engineers and Contractors.