Construction Cost Management is now possible with the adoption of a robust programmatic process that integrates associated planning, procurement, and project delivery activities and people, information, and enabling technologies.
Let’s face facts, the baseline for current public sector cost management practices and experiences for facilities and other forms of physical infrastructure is quite poor.
- Planning, procurement, and project delivery are not integrated.
- Locally researched, granular line item cost data is not used as a baseline to provide verifiable cost visibility and transparency.
- Robust LEAN programmatic processes are not used to efficiently manage all associated repair, renovation, and new build requirements.
- Collaborative LEAN process management is not understood and not practiced organization-wide by any federal sector agency or department.
- 80%-90% of all projects are late, over-budget, or completed unsatisfactorily.
- Most organizations rely upon historical cost data and/or contractor quotes, and/or other national average cost database with cost and/or other economic factors.
- Owners are far less knowledgeable of cost management and implications than builders, inclusive of assessing risk related to any changes or performance issues.
- Tracking constructions task job requirements in association with verifiable project costs is not a current capability for most owners.
- Change order management is beyond the capability of many owners.
- Managing documentation, approvals, and compliance remain problematic.
Tools and services are readily available to any public sector owner to engage in a phased approach to adopt efficient repair, renovation, and new build practices and resulting best value outcomes.
