A Robust Facilities Repair, Renovation, Maintenance, and New Build Cost Management System
A SYSTEM is a set of related components that work together in a particular environment to perform whatever functions are required to achieve the system’s objective.
- Donella Meadows
Systems are dynamic and complex and require a more holistic
approach for understanding. Synthesis is the process and ability to understand the whole and the parts at the same time, along with the relationships and the connections that make up the dynamics of the whole. In short, synthesis is the ability to see interconnectedness.
- Leyla Acaroglu (adaption)
Stop all those underperforming repair/renovation projects and create a clear path to consistent delivery of on-time, quality outcomes while reducing costs.
1000's Projects Completed --- 100's Satisfied Clients
80%-90% of ALL construction projects are late, over-budget, or not completed properly.
Before
The County of Ventura GSA had implemented Job Order Contracting years ago but was having trouble getting projects scoped, procured, and completed. The level of support and service needed by internal staff proved to be a burden, however, additional support from the current JOC vendor was unavailable or viewed as too costly. The problem was that the County needed to support its multiple client departments, but it could not cost-effectively meet their demands.
After
The County took the time and effort to identify an alternative solution that directly translated to a higher performing facilities repair, renovation capability for the County and its client department and agencies at a 75% cost savings. We helped them implement a customized solution and repeatable processes to realize current and capture future benefits.
What we hope you take away from this is that we gave them a roadmap, a plan, a suite of tools, and we delivered on it. We addressed their facilities support needs and implemented a sustainable solution. As a result, not only were administrative costs reduced 75%, but the JOC Program expanded from $6M/year to $20M/year.
Timeframe
Set Up – 3 months
Program Experience – 3 years
Story
The Ventura County GSA is a provider of critical support services to multiple public sector “client” departments and agencies. These clients include schools, hospitals, parks and recreation, first responders, and other public service buildings. The procurement team knew they were having some issues with their facilities construction services support despite having a Job Order Contract in place for several years. They have confidence in the JOC approach but recognized that they were not getting the services needed to reap benefits for their clients.
The client departments and agencies had a critical need to efficiently deal with the numerous ongoing repair and renovation requirements for public safety and meeting other service commitments but a major issue was no to not be able to procure and execute projects in a timely and robust manner.
After completing work with 4BT to develop a workflow compatible with the County’s needs, 4BT embedded the process into a secure cloud application. 4BT also built a locally researched, detailed unit price construction cost book, including line items specifically required by the County.
Simplifying the overall JOC process and providing the level of service the County needed virtually eliminated all the past issues, including client frustrations with lost time dealing with administrative issues. The County could support the needs of its clients and pinpoint exactly the status and value of each project.
Who Is This For?
As a savvy public sector facilities professional we understand that only two things really matter…
1. Ensuring organizational buy-in and adoption of your strategy, and
2. Delivering on a plan to efficiently sustain your facilities requirements.
This is for you if…
-You hate having to wait months to start projects,
-Your FM budget has gone awry, and you are just plain sick and tired of throwing money out the window, explaining why your projects are late, and over-budget, “fighting” with contractors, and “putting out fires” with building users,
-You are spending way too much money a JOC Program tied to a % of construction volume.
-You know you need better support for your in-house FM team and your AEC vendors,
-You suspect your current construction planning, procurement, and project management system is not up to par,
-You are worried about compliance and financial visibility or transparency,
-You could use help getting your leadership to understand the value of moving to a better way of doing things.
-With your ever increasing need to “do more with less” it’s no surprise you only have time for solutions, not technology or “consulting services”.
Core Concept
Here’s the Truth
You can achieve consistent quality projects on-time and on-budget while reducing cost 30%-40% with a robust, collaborative process-based solution combined with objective, current, and local market labor, material, and equipment cost data , instead of continuing inefficient ‘ad hoc’ methods.
Savvy facilities management professionals are establishing high performing internal and external teams, setting the strategy, building the “business case” and leveraging enabling technologies, but there is a problem. If done out of sequence and without the appropriate steps and tools, they find themselves facing a high probability of failure.
We are the best and only company dedicated to solving this problem for public sector facilities owners.
Background Story
Mark Powell co-founded 4BT. His experience includes serving in the United States Navy aboard the U.S.S. Enterprise and subsequently built his career in the construction sector.
After spending decades as a construction project manager, it became clear that public sector facilities owners needed a way to plan, procure, and deliver projects faster and achieve better outcomes, build and retain critical knowledge.
The reality is that any construction project, whether a repair, major renovation, or new build is only successful if it is based upon a robust, integrated, and collaborative process, including the use of current, actionable data.
Ensuring that all projects follow the same robust process is the only way to assure that information is effectively communicated on an early and ongoing basis throughout the planning, procurement, and project delivery life-cycle and beyond.
Project management optimization requires consistent leverage of a robust programmatic framework. “Success” is a shared responsibility among internal and external project teams. Leadership and participants work collaborative to set objectives, provide resources and establish and maintain the environment that supports effective performance.
But then, there is a well-kept secret regarding FM Technology – No technology is going to deliver a solution for your organization!
Software is only useful if it is based upon a robust process and current, quality, clear, objective, and verifiable data. Furthermore, no software or consultant can solve your problems… without your team doing the work.
Your most valuable assets are your people and your team of service partners. Empower them to solve the problems themselves. Your organization’s facilities management planning, and procurement professionals and your partners of architects, engineers, and contractors need to be on the same page. Change management is critical and must be a primary focus. BIM, CAFM, CMMS, ERP, or any “alphabet soup” of technologies have not significantly improved construction productivity or quality outcomes.
The issues remain the same regardless of the technology, all the project participants continue operating in silos, duplicating information, using inappropriate, information that can’t be used by others. Building users, your clients, remain less than satisfied, and resources are not optimized.
This is an opportunity to do something different.
What seems like “common sense”, however, is foreign to many organizations. Furthermore, robust solutions, like Integrated Project Delivery and Job Order Contracting, were largely being supported by “consultants”, instead of real property owners. The associated cost, and addition of a “third party” to the mix is both costly and incapable of optimizing outcomes.
4BT has built solution that was easy-to-use and implement directly by real property owners, that is cos effective, simple to deploy, and bulletproof!
So, together with Peter Cholakis formerly with 4Clicks Solutions LLC, The R. S. Means Company, and VFA, Inc., and Gene Spencer, formerly with The R.S. Means Company, we developed a collaborative LEAN Job Order Contracting and Integrated Project Delivery solution.
Members of our team have worked with real property owners of all sizes, and their AEC services providers…supporting single sites and entire organizations… including the General Services Administration, Public Building Services, Federal Aviation Administration, Clark County School District, MEDCOM, USACE, United States Air Force, and hundreds of others.
So, if you want a no BS solution to drive best value facilities repair, renovation, and new build outcomes that won’t break the bank, and will be fully compliant, let’s talk about how 4BT might be right for you.
Thesis Steps
4 Steps to to stop all those underperforming repair/renovation projects and create a clear path to consistent on-time, on-budget, project delivery while reducing costs 30%-50% in 90 days.
Step 1 – Focus on a robust process first and create a common work environment.
Step 2 – Assure every Scope of Work (SOW) is detailed and presented in a way that everyone can understand.
Step 3 – Plan and procure your facilities repair, renovation, and new build Program to support your needs, capture and grow organizational knowledge to achieve maximum value at the lowest administration cost.
Step 4 – Consider a Cooperative if your annual repair, renovation construction budget is less than $2M-$3M.
Step 1 – Focus on a robust process first and create a common work environment.
Old Way
While each repair, renovation, maintenance, and new build has its own requirements, they unfortunately have been managed by archaic, ‘ad hoc’, and unsustainable practices. Each project was procured and managed as its own unique activity, with its own set of tools, unnecessarily duplicating efforts, and without a well-defined, reliable, or verifiable set of phases, milestones, or information requirements.
New Way
The proven road to measurable improvement is to follow a robust core workflow for EVERY project. Sure, each project has its unique requirements, but following a common work flow assures every team member knows what to do, where, when, and how much it will cost. The process and workflow is detailed and documented in an Operations Manual / Execution Guide, as a part of a long-term multi-party agreement. All documents, forms, schedules, approvals, and information requirements are consistent, and communicated in real-time through an enabling collaborative technology. A common, robust, core workflow is maintained for each and every project. Every project has detailed reliable costs and concrete timelines.
Old Result
When you wanted to schedule a renovation project you would have to create a scope of work, advertise for bids, review the bids, award a contractor, and try to bring the contractor up to speed on your buildings and work environment. This process would take months, many times nearly a year. The results would be costly in delays, duplicative efforts, and numerous change orders.
New Result
A consistent way of approaching each project that drives best value outcomes for everyone, with a proven track record of 90%+ of all projects and work orders executed in a quality manner, on-time, and on-budget! The process provides full technical and cost visibility and transparency and is fully auditable and compliant.
Unique Useful Insight
Using a consistent, robust process allows you to create a reliable program that enables owners and their services providers to consistently achieve best value outcomes for everyone.
Do not Take our Word for it Though…
National survey information, case studies, and our clients have implemented a programmatic approach and achieved significant improvements in their construction related facilities management activities throughout all phases of planning, procurement, and construction.
FAQs
Q: Does setting up a workflow for my organization take a great deal of customization and effort?
A: No. The primary phases of the workflow have been proven and are already developed. Customization largely comes in the form of the specific authorization and other documents associated with proposal/bid packages, approval notices, authorizations, etc. Focus on a robust process first and create a common work environment.
Q: Are there various ways to establish a common construction planning, procurement, and project delivery environment.
A: Yes. Research the market and assure what every approach you take will have a financial benefit. Develop a direct link between you new process initiative and the cost benefits. Far too often organizations select a technology, consultant, or a solution without developing a cost benefit analysis for the activity. What happens when organizations do this is that they miss a huge opportunity to get major benefits from the low hanging fruit. Processes get adopted that don’t solve real problems, and overall costs actually increase, with recurring costs that don’t add real value. The market pressures from large technology vendors and consulting companies is strong, so allocate the time up front for planning to avoid the wrong decision and recurring sunk costs. Establishing quantitative goals based upon return on investment is the only way to drive measurable, lasting benefits. So, avoid failure by overinvesting in planning.
Step 2 – Assure every Scope of Work (SOW) is detailed and presented in a way that everyone can understand.
Old Way
For many projects, an owner writes up a scope of work without designer or contractor input. Formats and the level of detail are all over place. Generally, there is little detailed information about actual site conditions, how and what needs to be done for demolition or otherwise getting the site ready for mobilization and construction execution. Costing the activity is little more than an educated guess..
New Way
With a repeatable process in place, the owners and the service providers meet on-site and share information about the work to be done. In this way, the owner can develop and communicate a detailed scope of work that is sufficient for the builder to create a detailed line-item description of the required work and the cost of each task. Costs and requirements are no longer a shot in dark. The tasks and cost information are derived from a locally researched detailed unit price book (UPB), to which both parties have previously accepted. The UPB describes what is required in terms of an activity with all labor, materials, and equipment for the task itemized individually.
Old Result
As a result the scope of work is poorly defined and poorly communicated. Errors and omissions and change orders are numerous and increased project costs and uncertain project completion times are the norm. In the end, 9 times out of 10, the owner, building users, the designer, and the builder are unhappy.
New Result
The detailed scope of work now clearly communicates the project in a way there everyone understands. This process results in fewer errors and omissions, reduced change orders, faster project delivery, and lower costs! All parties fully understand and agree upon the desired result, the cost, and the schedule. Eliminating change orders alone results in a 15%+ reduction of total project costs.
Unique Useful Insight
A well communicated, detailed scope of work is critical to the success up any construction activity.
Do not Take our Word for it Though…
Experts agree that a poorly prepared Scope of Work is the #1 cause of project failure.
FAQs
Q: Does setting up a workflow for my organization take a great deal of customization and effort?
A: No. The primary phases of the workflow have been proven and are already developed. Customization largely comes in the form of the specific authorization and other documents associated with proposal/bid packages, approval notices, authorizations, etc. Focus on a robust process first and create a common work environment.
Q: Are there various ways to establish a common construction planning, procurement, and project delivery environment.
A: Yes. Research the market and assure what every approach you take will have a financial benefit. Develop a direct link between you new process initiative and the cost benefits. Far too often organizations select a technology, consultant, or a solution without developing a cost benefit analysis for the activity. What happens when organizations do this is that they miss a huge opportunity to get major benefits from the low hanging fruit. Processes get adopted that don’t solve real problems, and overall costs actually increase, with recurring costs that don’t add real value. The market pressures from large technology vendors and consulting companies is strong, so allocate the time up front for planning to avoid the wrong decision and recurring sunk costs. Establishing quantitative goals based upon return on investment is the only way to drive measurable, lasting benefits. So, avoid failure by overinvesting in planning.
Step 3 – Plan and procure your facilities repair, renovation, and new build Program to support your needs, capture and grow organizational knowledge to achieve maximum value at the lowest administration cost.
Old Way
You sign up with a JOC services “consultant” and pay a percentage of your total JOC annual construction volume. Based on the services you select; this approach will cost your firm 2% to over 8% of construction volume. This can easily reach millions of dollars for larger JOC Programs, just for administering the program.
New Way
With a repeatable process in place, the owners and the service providers meet on-site and share information about the work to be done. In this way, the owner can develop and communicate a detailed scope of work that is sufficient for the builder to create a detailed line-item description of the required work and the cost of each task. Costs and requirements are no longer a shot in dark. The tasks and cost information are derived from a locally researched detailed unit price book (UPB), to which both parties have previously accepted. The UPB describes what is required in terms of an activity with all labor, materials, and equipment for the task itemized individually.
Old Result
You assess your needs and properly research the market to either select select a JOC Cooperative (if your annual construction volume is under $2M to $3M), or set up your own JOC Program. In both cases you select only the products and services you need and maximize value. As the your selection is compliant with all applicable regulations and that every contractor proposal is independently audited.
New Result
The cost for all tools and services is 3x to 10x less than paying a percentage fee and your organization builds with you and your internal and external service provider teams retain and grow critical competencies and drive continuous improvement.
Unique Useful Insight
Direct owner participation, support, and understanding are critical to value achievement. Public sector organizations can improve the results of their facilities repair, renovation, maintenance, and new build activities by spending more time openly learning and communicating the core principles of Job Order Contracting. The core benefit, and difference in our approach is treating everyone involved as “equal partners” in the process, which in turn greatly increases internal knowledge and greatly enhances JOC Program success. During this process, it is important to gain management support and understanding. Both are critical. This is true as well as all participants internal to the organization… facilities management professionals, procurement, project management, and building professionals. JOC is a fundamental change in how people work together on a day-to-day basis. It is important for everyone to be directly involved, without the buffer of a “consultant”, so that they can actually “feel it to understand it and believe it.”
Do not Take our Word for it Though…
Multiple audits of JOC Programs have been conducted by independent third-party agencies. A review of these audits clearly highlight what can happen if owner teams do not learn fundamental JOC principles and directly engage in proven JOC processes. This link will direct you to a sampling of these JOC Program audits.
FAQs
Q: What type of training is required to set up an “owner-managed process’?
A: Is important for you, as the owner, to fully understand fundamental principles, process, and workflows. These are neither complex, nor time consuming. It’s important to note that your program will continuously improve and adapt over time. You will likely phase in the new process over the first two years.
Q: What tools and services are generally required?
A: Introductory training and ongoing training is mandatory for all participants and stakeholders. This will be a new way of working for many. Software that embeds your processes, and locally researched detailed unit price cost data are also requirements.
Q: Isn’t it more costly to set up an owner-managed program?
A: Initial costs are higher, however, overall program costs are 3x to 10x lower than an “outsourcing” approach…
Step 4 – Consider a Cooperative if your annual repair, renovation construction budget is less than $2M-$3M.
Old Way
JOC Cooperatives began to add construction services to the list of “commodities”, like paper, pencils, and computers, that public agencies can purchase in bulk. Fees for these services range from 2% to 8%+ of the construction value.
New Way
JOC Cooperatives are used by owners to learn about JOC, in situations where total JOC construction volume is less than $2M-$3M annually, or to supplement an existing house program. You properly research the JOC Cooperative to assure it is compliant with all applicable regulations and that every contractor proposal is independently audited for compliance.
Old Result
Construction is clearly not a commodity, and fees charged to the Owner, JOC Cooperative, or Contractors of more than 2% are extremely costly. Also, these fees clearly end up being paid by you, the Owner.
New Result
Owners appropriately leverage JOC Cooperatives in concert with their level of knowledge and demand for appropriate repair, renovation, and new build construction services.
Unique Useful Insight
Repair, renovation, maintenance, and new construction activities are not commodities. While JOC Cooperatives play a role, they are not appropriate long-term solutions for all public sector owners.
Do not Take our Word for it Though…
Do your homework and carefully review the fees being charged to contractors, If more than 2%, remember that owners inevitably pay for the increased cost. Also carefully evaluate the services being provided to assure compliance with applicable regulatory requirements.
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FAQs
Q: Are all JOC Cooperatives the same?
A: No. Some JOC Cooperatives are owned or managed by for profit private corporations. These may have different motivations than those managed directly for government agencies. Also, some cooperatives charge owners or JOC contractors excessive fees, up to 8%+ of the project construction volume. Look for a government agency owned and managed JOC with no fee to cooperative members and no more than 2% to JOC contractors. Also assure that every contractor proposal is independently audited, and that the UPBs involved are locally researched and regularly updated.
NOW THERE ARE A FEW WAYS YOU ACHIEVE THIS…
OPTION #1 – Do it yourself
You can do the research and try to dig through all the information and hype to learn how to structure a robust and integrated construction planning, programing, and project delivery process. Then, you can set out to develop your own locally researched detailed unit price construction cost book. Of course, you will also need to develop a collaborative technology to host your newly developed process and tools.
Result:
You will slog up a difficult learning curve, make needless mistakes, and progress toward an uncertain outcome.
Price:
$1M+
Time:
1 year minimum, likely 2-3 years.
OPTION #2 -Go the traditional “JOC consultant” route
You can hire a JOC consultant and pay them a percentage of your annual repair, renovation, and minor new build budget and have them “manage” your program.
Result:
You will put a third party between you and your team and your design/build contractors. By doing this you will miss a core benefit, the opportunity to build and maintain a long-term direct relationship with your builders. You will not build and maximize the knowledge of your internal and external teams. The fees you pay will not be directly proportional to the tools and services you need to simply build and manage your program.
Price:
$1M-$3M/Yr. (approximately 2% to 8%+ of annual construction volume.
Time:
6-12 months
Or… we can work together and stop all those underperforming repair/renovation projects, and create a clear path to consistent on-time, on-budget, project delivery while reducing costs 30%-50% in 90 days.
And, quite frankly save your self the headache and conventional mistakes made by most…
