Define Construction Procurement

By peter.cholakis@verizon.netDefine Construction Procurement

Define Construction ProcurementDefine Construction Procurement

 

Define Construction Procurement… It’s easy to define construction procurement right?   Perhaps not.   Improper construction procurement methods and a relative lack of competency on the part of procurement staff have greatly contributed to poor construction outcomes.

The appropriate procurement and management of construction services resulting in timely, cost effective, and quality outcomes has remained problematic for many/most public organizations.

 

While Federal, State, County, and Local Governments as well as other public entities may have volumes of regulations regarding construction procurement practices, in many cases they are outdated and do not include current LEAN construction procurement/delivery best management practices.

Define Construction ProcurementDefine Construction Procurement

–  A process whereby contractual agreements are designed, bid, and executed between real property owners and construction contractors for renovation, repair, or new construction services for buildings or any form of physical infrastructure.

Services and/or work may include… 

architectural or engineering/design, the construction, alteration, repair, refurbishment or fitting out of buildings and other structures; 

the installation, alteration or repair of plant and equipment designed to be used in, or in relation to, the provision of services for buildings and other structures;

the undertaking, construction, alteration or repair of landscaping and earthworks (whether or not in relation to buildings and other structures);

the demolition, destruction, dismantling or removal of:  buildings and other structures; plant and equipment, earthworks, the clearing of land and the development of land for use as urban land or otherwise; and any other matter declared by the regulations/statutes to be a work.

Valuation of Construction Services

The estimated value and type of a construction services required (including any options such as contract extensions) should  determines the appropriate procurement and construction delivery method.   In order to achieve optimal outcomes both the construction services valuation method and the construction delivery method should be well defined and mandatory.

  • When estimating the value of a construction services procurement in order to determine if it is a covered procurement, the procurement must not be divided into separate parts for the purpose of avoiding a procurement threshold.
  • While an initial procurement of construction services may include a contractual provision for maintenance services for a period after completion of a project, the procurement of maintenance services after that period should subject established regulations.
  • A locally researched, independent, and objective detailed unit price book, UPB, should be used to create internal government budgetary and project estimates, as well as be the foundation of associated methods of construction services procurement.  Using bids from local construction contractors should NOT be used, except to supplement the UPB as required and allowed by  regulations.  The UPB should provide a detailed description of line item construction tasks with appropriate detail for associated labor, material, and equipment.  Common, industry standard terms and data architectures (CSI MasterFormat) should be used.

Regardless of the Construction Procurement and Delivery Methods selected, minimum and maximum dollars values should be established….and, of course, Define Construction Procurement.

 

Define Construction Procurement – Related White Papers and Resources

ASSET LIFE-CYCLE MODEL – Total Cost of Ownership Management – A framework for facilities life-cycle  management.

BIM, LEAN Construction, and a Common Data Environment (CDE) – A  strategic tool for sharing information and managing a team within a BIM / LEAN Construction Delivery environment.

BIM, PROJECT DELIVERY METHODS, WASTE, & LACK OF LEADERSHIP – Traditional design-bid- build (DBB) contracting techniques, and even more recent attempts to improve DBB such as design-build (DB), CM@R, etc. should not be considered LEAN efficient construction delivery methods.

How to Select a JOC Unit Price Book – White Paper – Download – Select a JOC UPB – A JOC  Unit Price Book, UPB is very important to the  quality, integrity, productivity,  and transparency of any Job Order  Contract.

JOB ORDER CONTRACTING – Overview & Best Management Practices – Job Order Contracting White Paper 2016801 – Job Order Contracting (JOC) is a competitively bid, firm-fixed price, Indefinite Delivery Indefinite Quantity (IDIQ) LEAN construction delivery method.

COLLABORATION IN CONSTRUCTION – IPD, JOC – Collaboration In Construction-White Paper – Owners determine the  approach  for funding, using, sustaining and disposing of buildings and infrastructure. They also select the construction delivery method.

INTEGRATED PROJECT DELIVERY – for Public and Private Owners – Integrated_Project_Delivery_for_Owners_ – A Joint Effort of the National Association of State Facilities Administrators (NASFA);Construction Owners Association of America (COAA);APPA: The Association of Higher Education Facilities Officers;Associated General Contractors of America (AGC); and American Institute of Architects (AIA)

THE HISTORY OF JOB ORDER CONTRACTING – The LEAN Construction Delivery Method – The United States Department of the Army is attributedwith initially developing and deploying Job Order Contracting during the early 1980s.

Job Order Contracting – A Procurement Success Story, 1998 – Moore, W., Stout, C.

LEAN Construction Detailed Overview – LEAN Construction Institute, LCI – An overview of LEAN Construction

Unit Price Books for Job Order Contracting – A quick tutorial about Unit Price Books, UPB (s), for Job Order Contracting, and what you need to know.

Why BIM Will Not Succeed – Higher Level of Owner Competency Required – BIM requires a higher  level of  interdependence and information sharing in order to fully understand needs, requirements, limitations, desired outcomes, and overall best value.

The What, Why and How of Job Order Contracting (JOC) – CEFPI Educational Brief – JOC a unique cost competitive delivery process for minor construction, renovations, repairs, and alterations that is faster and better than the traditional “design-bid-build” method.

2015-IDIQ-Contract-White-Paper-National-Academy-of-Sciences – Systematic, well-designed research provides the most effective approach to the solution of many problems facing highway  administrators and engineers.