The procurement model is broken.
Over 80% of projects in the Federal, County, State, and Local Government sector are being delivered late, over-budget and/or not completed per requirements.
Multiple independent studies have demonstrated the above. Many have also attributed these poor outcomes to the widespread use of traditional procurement models, resulting in up to 98% of project over budget by over 30%, and approximately 80% completed late.
Current procurement models are inefficient due to the following…
#1. Disparate, nonintegrated planning, procurement, and project delivery teams and processes.
#2. Lack of accountability and poor training of public sector procurement professionals.
#3. Poor leadership across the public sector with respect to facilities/built environment asset life-cycle management.
Solutions readily exist to resolve the ramp levels of economic and environmental waste that has existed for decades. Unfortunately, there has been no catalyst of driving event to force change. Even the fact the buildings are responsible for 30%+ of greenhouse gases and carbon impact doesn’t seem to matter, not does the 30%-40% waste of taxpayer dollars, amounting to billions.
There is a window of opportunity for owners, design firms, engineering, and builders to truly collaborate a leverage robust LEAN, integrate planning, procurement, and project delivery methods such as LEAN Job Order Contracting and Integrated Project Delivery, and operate in a manner compatible with a sustainable future, but it is rapidly closing. create a built environment for the future.
Robust, Readily Available Solutions
Early and ongoing collaboration among planning, procurement, and project delivery teams, supported by robust programmatic processes and a common data environment have been proven capable to consistently deliver Quality repair, renovation, maintenance, and new construction project ON TIME and ON BUDGET.
Procurement professionals play a larger role along with earlier involvement with all relevant stakeholders. They must, in fact, be directly involved with ALL the numerous and ongoing projects throughout their life cycles. This will require additional training and the support of new tools and processes to ease administrative burden and assure full compliance.
While a select few procurement professionals have begun to adopt these new models, they are not fully supported by leadership on an organization-wide basis. For example, not a single federal sector department or agency has required the use of locally researched detailed line-item construction data for all projects. Instead, they continue to use poor approximations of costs such as historical data and/or average costs and cost factoring.
It’s time to enable procurement professionals to be involved with and play a continuous management role in life-cycle asset management and achieve significantly improved outcomes.
Contact to learn how to set up a pilot program!
Capable Governance – Process Integration – Common Data Environment – Enabling Collaborative Technology
via Four BT, LLC – www.4bt.us – Integrated planning, procurement, and project delivery solutions for the built environment