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LEAN Construction Delivery for Renovation, Repair, and Minor New Projects, Uncategorized

LEAN Construction Delivery for Renovation, Repair, and Minor New Projects

Real property owners, facilities management, contractors, AEs, and building users are rightly worried about the rising costs of getting the numerous renovation, repair, and minor new construction projects completed.

Simply carrying on in business as usual fashion is a recipe for continued waste, inefficiency, and dissatisfaction for all participants.

SOURCE: NRC. 2008. Core Competencies for Federal Facilities Asset Management

The AECOO (Architecture, Engineering, Construction, Owner, Operator/Operations) industry relies heavily on the belief that what worked on the last project will work for this one… despite FACTS to the contrary.   The vast majority of construction projects are over budget, significantly delayed, and don’t meet user requirements.

Public sector organizations have even more complicated issues such as compliance with statutes as well as fiduciary responsibility to their constituents.

LEAN construction delivery processes, common data environments (CDE),  and supporting services are giving savvy owners the ability to optimize for first costs AND life-cycle cost, as well as make better decisions for all team members and stakeholders.

Integrated projects delivery, IPD, for major new construction, and Job Order Contracting, JOC, for renovation, repair, and minor new construction provide efficient ways of working and to virtually assure that approximately 90% of projects are delivered on-time, on-budget, and to everyone’s satisfaction.

r-contracting-services-and-tools/

That said, not all implementations of IPD and JOC are the the same, nor do they comply with the fundamental required aspects of each method.   Beware of “outsourcing” either to consultants, as BOTH require directly owner involvement.

If you are interested in learning more about how to better manage multiple objectives and constraints, and integrating powerful methods, tools, and teams,  please consider reaching out to us.

Learn how tools, processes, training, and new ways of working together  are enabling integrated teams, financial transparency, and virtually eliminating risk.

www.4BT.US

 

 

Job Order Contracting Done Right, Uncategorized

Job Order Contracting Done Right

Job Order Contracting done right with Job Order Contracting Done Right

What is 4BT OpenJOC Building in Cloud?

Just for starters…

Project Management

Measurably improve your organization’s construction project management activities with 4BT OpenJOC Building in Cloud’s powerful tools.

Project team management

Internal and external team members gain instant authorized access to current information to share and manage tasks and solve problems.

Administrators can easily add new team members and define information access rights at the project or building level.

Building in Cloud allows authorized team members to access and share documents, manage tasks, or troubleshoot.

Administrators can easily add new members to the team, define access privileges by differentiating them for each project or building.

Activity and Problem Management

Create and assign tasks to any member of a team.  Request an specific action such as uploading a file or photo, for the task be closed. Tasks can be connected to any entity within Building in Cloud, from a document to a component in the ventilation system.

You can create and assign tasks to any member of a team. Require action to be taken such as uploading a file or photo so that it can be closed. Activities can be linked to any entity within Building in Cloud, from a document to a ventilation plant component.

Messages and Notifications

Send messages directly within Building in Cloud and avoid the inefficient and error prone Email.   Building in Cloud can easily send automated notifications to team members or subgroups to carry out certain actions, such as closing an issue or uploading a new version of a document.

Learn more….

Free facilities management software, FREE Project Construction Facilities Management Software

FREE Project Construction Facilities Management Software

FREE Project, Construction, Facilities Management Software… No credit cards, no gimmicks., period.

Improve your team’s efficiency and have all the information and documents for your buildings and projects at your fingertips.

  • No installation required (access with any Internet browser)
  • No credit card required
  • Create your free account and start working right away
  • All your information is secured via SSL protocols
  • Project management, Document management, Asset management and more!

Free Project, Construction, and Facilities Management Software 1

  • Create a new account and start working in our secure cloud
  • Invite users to share information and collaborate on any project
    Free Project, Construction, and Facilities Management Software 2Free Project, Construction, and Facilities Management Software 3Free Project, Construction, and Facilities Management Software

 

Uncategorized

JOC Tutorial #71 – Terms

(a) “Adjustment factor” / “coefficient+ –  job order contractor’s competitively bid adjustment to the organizations prices as published in the current unit price book.  Typically within a range of 0.80 to 1.20.
(b) “Indefinite quantity” means one or more of the construction tasks listed in the unit price book.
(c) “Job order” –  a firm, fixed priced, lump-sum order issued by an organization to a job order contractor for a definite project scope of work as compiled from the unit price book to be performed pursuant to a job order contract.
(d) “Job order contract” –  a contract, awarded to a most qualified bidder on a best value selection basis in which the contractor agrees to a fixed period, fixed-unit price, and indefinite delivery, indefinite quantity contract that provides for the use of job orders for renovation, repair, maintenance, or minor new construction projects in conformance with applicable regulations.
(e) “Job order contract technical specifications” – a book, defined by the organization, detailing the technical specifications with regard to quality of materials and workmanship to be used by the job order contractor in accomplishing the tasks listed in the unit price book.  These are typically not specialized to the job order contract, but the organization’s current standard technical specifications and referenced as applicable to the all JOC projects.
(f) “Job order contractor” – a licensed, bonded, and general liability insured contractor awarded a job order contract.
(g) “Offer to perform work” – the job order contractor’s proposal for a specific job order in response to the organization’s RFP.
(h) “Plans and specifications” -the unit price book and the organization’s technical specifications. The scope of work to be performed with a job order contract is potentially, but not necessarily, all the tasks published in the unit price catalog.  No more than 10% of the  value of any JOC project should be derived from items not found within the UPB.
(i) “Project” – the specific requirements and work to be accomplished by the job order contractor in connection with an individual job order.
(j) “Project labor agreement” – an agreement that meets the requirements of applicable regulations.
(k) “Project scope of work” – the document and related drawings, specifications, and writings referenced therein which together set forth the specific requirements and work to be accomplished by the job order contractor in connection with an individual job order.
(l) “Proposal” – the job order contractor prepared document quoting those construction tasks listed in the unit price book that the job order contractor requires to complete the project scope of work, together with the appropriate quantities of each task…  a detailed line item construction cost estimate.  The pricing of each task shall be accomplished by multiplying the construction task unit price by the proposed quantity.  The total of all line items is then multiplied by  the contractor’s competitively bid and accepted adjustment factor/coefficient.  The proposal shall also contain a schedule for the completion of a specific project scope of work as requested by the organization. The proposal may also contain approved drawings, work schedule, permits, or other documentation as the organization may require for a specific job order. The proposal shall be certified as contract compliant by a reviewer independent of the contractor, and a member of the owner organization (not a JOC consultant or other third party with a financial interest tied to the value of construction volume, or other association that could lead to the potential for fraud.
(m)  “Subcontractor” -any person, firm, or corporation, other than the employees of the job order contractor, who is bonded and general liability insured and who contracts to furnish labor, or labor and materials, at the worksite or in connection with a job order, whether directly or indirectly on behalf of the job order contractor.
(o) “Unit price book” – an electronic/published book containing specific construction tasks and the unit prices to install or demolish that construction. The listed tasks shall be locally researched  and based on generally accepted industry standards and information, where available, for various items of work to be performed by the job order contractor. The prices shall include the cost of materials, labor, and equipment for performing the items of work. The prices shall not include overhead and profit. All unit prices shall be developed using local prevailing wages and/or Davis Bacon wage rates.
AECOO Change Management - LEAN Construction, Uncategorized

AECOO – LEAN Construction Management

 

AECOO Change Management - LEAN Construction
LEAN Construction Primer

 AECOO Change Management – LEAN Construction are the path to improved productivity.

If the architectural, engineering, construction, operations, and owners sector (AECOO) would stop its hype about digital transformation and BIM/3-D visualization and focus upon change management and associated LEAN construction methods significant benefits would be realized in relatively short order.

As is stands now, without a dedicated focus upon making a success of change management, the AECOO sector is doomed to continue its legacy of economic and environmental waste.

The  Fallacy of Digital Transformation

Forward-looking organizations never start of by saying let’s focus upon technology.  Their primary focus is upon outcomes and building teams and assuring adequate resources to obtain them.

One only need look at the failures associated with ERP systems and most recently with BIM.    Companies looked to ERP technology to prepare them in meeting business challenges, yet for years simply automated existing poor practices verses making fundamental improvements.

BIM has suffered the same fate to date.  Companies assume BIM is some sort of ERP for the AEC sector, when in fact, it is little more that a 3-D visualization tool when it comes to a technology, and little more as a business solution.

Collaborative LEAN Facilities/Asset Management

LEAN collaborative construction delivery methods have existed for decades and they have proven to consistently deliver approximately 90% of renovation, repair, and new construction projects on-time, on-budget, and to the satisfaction of all participants and stakeholders.   Despite their availability however fewer than 5% of the AECOO sector takes advantage of their use and even few use them properly.

The  reason for lack of adoption and proper use is simple.   LEAN collaborative construction delivery requires fundamental changes in how people work and interact on a day-to-day basis.    Collaboration is required.  Financial transparency is required.  Shared risk/reward is required.  Owner leadership is required.  A minimum level of competency for all participants is required.   These requirements sadly are foreign to most AECOO participants.

Integrated Project Delivery-IPD, for major new construction and Job Order Contracting-JOC, for renovation, repair, and minor new construction are proven collaborative LEAN Construction Delivery Methods.  Tools and services are readily available to any AECOO sector member.

Cultural and people change activities need to take place in BEFORE any major technology change activities, or at the very least in concert with them.   The role is technology is secondary, it help so reduce the cost of deployment and assist in assuring levels of consistency and ongoing improvement.

Primary focus MUST be upon education and training.  Specially building the level  of Owner leadership and competency, as well as assuring all participants fully understand and accept working within a collaborative and transparent environment.

 

AECOO Change Management – LEAN Construction are the path to improved productivity.

  • Strategy and organization alignment and focus upon outcomes
  • Feedback and championing success
  • Employee and partner team engagement at all levels
  • Shared Risk/Reward
  • Common Data Environment – CDE
  • Transparent financials/costs

Learn more?

 

Job Order Contract Fraud Prevention

Job Order Contract Fraud Prevention

While properly designed and managed JOC Programs can delivery significant benefits, Job Order Contract Fraud Prevention should be thoroughly addressed.

Job Order Contract Fraud Prevention

In order to prevent fraud, waste, and abuse, an organization adopting job order contracting should do ALL of the following:
(a) Prepare for each individual job order developed under a job order contract an independent owner estimate for every instance, or for job orders at, or above, a set dollar threshold.  The independent owner estimate should be  prepared prior to the receipt of the contractor’s offer to perform work and associated contractor prepared estimate,  and be compared to the contractor’s proposed estimate on a detailed line item by item bases to determine the reasonableness of that price before issuance of any job order.
The basis for any adjustments to the owner’s estimate and the contractor’s estimate should be documented on a line item bases with associated notations per each line item.   If the contractor’s proposal for a given job order is found to be unreasonable, not cost-effective, or undesirable, the owner is under no obligation to issue the job order to the job order contractor, and may instead elect to ask the contractor to revise the contractor estimate accordingly, cancel the procurement, and/or utilize any other available procurement procedures.
(b) The owner shall not issue a job order until the job order has been reviewed and approved by the appropriate level of management.
(c) Once a job order has been issued, all documents pertaining to preparation and approval of the job order, including the independent owner estimate, and the Notice to Proceed, NTP, shall be available for public review.
(d) No  more than 10% of the total value of the approved contractor’s estimate shall be non-prepriced (NPP) line items,  line that are not derived directly from the currently approved unit price book, UPB associated with the JOC Program.
Job Order Contract Fraud Prevention
Learn more…

 

Improve Renovation - Repair Construction Performance

Improve Renovation – Repair Construction Performance

Are you a real property owner looking to improve renovation – repair construction performance?

 

Consider giving us a call, or send us an email to inquire about our new OpenJOC LEAN Construction Delivery Platform (TM).

Here are just a few benefits of our new OpenJOC set of tools and services…

  1.  Less Time To Start Up A Project, including Procurement, Design…
  2.  Less Time To Close Out A Project
  3.  Easier To Use
  4.  Independent, Objective, &  Best Value

Let us help you to …

  1. Build Integrated Teams
  2. Benefit from Early Collaboration
  3. Move to Best Value / Qualifications-Based Selection
  4. Assure Cost Visibility and Transparency

Learn more…

Improve Renovation - Repair Construction Performance

 

 

 

Construction Delivery 101, Construction Delivery Training

What every Owner should know about Construction Delivery

What every Owner should know about Construction Delivery is that it affects success or failure more than any other element.

At a broad level, the following Construction Delivery Methods are available to Owners…

  • Traditional Delivery Method- Design-Bid-Build
  • Various Construction Management Delivery Methods
  • Design/Build Delivery
  • LEAN Collaborative Construction Delivery – IPD, JOC
What every Owner should know about Construction Delivery
LEAN Construction Primer

Each has its associated contract types, which may include…

  • Lump Sum or Fixed Price
  • Unit Price
  • Cost Plus Fee
  • Cost Plus with a GMP ((guaranteed maximum prices, not-to-exceed price, NTE, or NTX)

The selection and appropriate application of any construction delivery methods is dependent upon the following factors…

  • Owner’s experience, qualifications and capabilities
  • Construction project size, form, function and complexity
  • Time and sequencing requirements
  • Budget and other factors

Design-Bid-Build

 Most common

 General Procedure

Owner first contracts Design Professional.  Design completed prior to bidding/pricing and construction. Competitive bidding with selection being the lowest cost selection of the bidder compliant with the scope of work and associated the bid documents.

 Pros

Well known.

 Cons

No upfront collaboration of contractor

Unknown construction price until bids are received

Questionable collaboration between owner/designer

Risk dependent upon completeness and accuracy of construction documents within a relatively ‘ad hoc’ process

Inherently adversarial process

Prone to dissatisfaction, cost over-runs, and litigation

Construction Management Approach 

 Relatively common.

 General Procedure

Involves multiple contracts and intensive professional management.

 Pros

Reasonable communications among owner, designer, and CM firm, if owner all are transparent and capable.

Opportunities for cost savings and value engineering by having construction expertise involved earlier in process.

 Cons

Cost effective for major new construction only.

Unknown construction price until bids are received.

Risk dependent upon completeness and accuracy of construction documents within a relatively ‘ad hoc’ process

Clear potential for conflict of interest – Assumes one entity, manages all facets of the construction effort including pre-construction services. During pre-construction the contractor is a CM and converts to GC after GMP is mutually agreed upon.

Design-Build Method

 Somewhat known

 General Procedure

A single entity provides both design and construction services per the bidding document and final signed contract documents.  The contractor and designer work together for Owner based upon mutually agreed cost, schedule and scope of work.

 Pros

Ability for fast track/phased construction

Three types of deployment –  Contractor Led (subcontract design or joint venture) – Designer Led (subcontract construction or joint venture) – A single firm with both capabilities internally

Perceived higher quality

Generally reduced number of claims and/or litigation issues

Earlier cost identification

More contractor involvement and generally better documentation

 Cons

Suitable for major new construction only

Not fully collaborative, can still bit one party against others

Level of owner involvement may not be required and fully defined

Unknown construction price until bids are received.

Risk dependent upon completeness and accuracy of construction documents within a relatively ‘ad hoc’ process

Clear potential for conflict of interest – Assumes one entity, manages all facets of the construction effort including pre-construction services. During pre-construction the contractor is a CM and converts to GC after GMP is mutually agreed upon.

Contractor is exclusively responsible for design risk

Scope development and selection can be ill-defined and problematic

Legal and professional issues

Not supported in some public and/or federal procurement areas

LEAN Collaborative Construction Delivery Methods

 Not well know, applied, or understood

 General Procedure

Long term multi-party agreement using LEAN construction processes within which the focus is upon outcomes, financial transparency, shared risk/reward,  performance-based incentive.

 Pros

Proven ability to consistently deliver approximately 90% of projects on-time, on-budget, and to the satisfaction of all participants and stakeholders.

Available for major new construction – Integrated Project Delivery, and renovation, repair, and minor new construction – Job Order Contracting – JOC.

Financial transparency

Fully defined roles, responsibility, and required levels of collaboration and training.  Includes the use of standardized construction tasks at line item cost detail.

Focus upon best value procurement

Available supporting technology, training, services

 Cons

Generally requires significant internal “change management” for all participants.  Fundamental difference in thinking and day-to-day activities versus traditional traditional construction delivery methods.

Owner must demonstrate high levels of leadership and competence across multiple domains.

Sometimes used improper by Owners to “bypass” the checks and balances provided by procurement/purchasing authorities (particularly in the State/County/Local Government Sectors).

What every Owner should know about Construction Delivery

What every Owner should know about Construction Delivery

Learn more…

Job Order Contracting- Partnered Best Value Construction Procurement, joc procurement

Job Order Contracting- Partnered Best Value Construction Procurement

The OpenJOC (TM) Job Order Contracting– Partnered Best Value Construction Procurement can offer measurable, if not significant improvements for the numerous renovation, repair, and minor new construction projects facing real property owners and facilities management.

Job Order Contracting- Partnered Best Value Construction Procurement

2000, Mulcahy, F. S.  The Effectiveness of Partnering and Source Selection in Job Order Contracting.

 

 

 

 

 

 

OpenJOC (TM) Job Order Contracting- Partnered Best Value Construction Procurement drive improvements in…

  • Quality
  • Safety
  • On-Time Completion
  • Scheduling and Performance of Subs
  • Warranty Service
  • Responsiveness of Support
  • Innovation and Value Engineering
  • Responsiveness to Client Needs
  • Preventing and Solving Problems
  • Contractors Management Effectiveness
  • Dispute Resolution
  • Level of Trust
  • Communication

Job Order Contracting- Partnered Best Value Construction Procurement drives improved productivity and better outcomes for all participants.

Independent, Objective, Best Value Job Order Contracting Solution - OpenJOC

Learn more…

JOC Project Delivery Integrates LEAN Pre-Construction

JOC Project Delivery Integrates LEAN Pre-Construction Services

JOC Project Delivery Integrates LEAN Pre-Construction  Services to drive measurably improve outcomes for all participants and stakeholders.

LEAN Pre-construction services provide a focus upon Best Value, Alignment of Outcomes, Leadership, and Quality.

A written JOC Operations Manual / JOC Execution Plan establishes a set of interacting players and elements to assure that all roles, responsibilities, are clearly defined and desired outcomes are acceptable to all.

JOC Project Delivery Integrates LEAN Pre-Construction Services

Integrating teams with processes to achieve clearly defined objectives is central to any LEAN Pre-Construction framework.

JOC, and other LEAN construction delivery methods assure coordinated activities of both internal and external teams to realize value from all renovation, repair, and/or new construction project.

JOC Project Delivery Integrates LEAN Pre-Construction Services to drive significant gains in productivity, quality, and overall satisfaction.

The role of the real property Owner is to provide leadership, without excessive management and control.  The Owner must support the team of internal and external service providers in a collaborative manner.   While performance monitoring is critical, mutual respect and shared risk/reward are equally important.   It is understood by all that ongoing and required training and continuous improvement are components of the process for all participants.  In this regard, relationships focus upon long term value delivery, with all parties doing what is necessary to assure  success for every participant.

Learn more?

 

 

 

LEAN Pre-Construction Services Considerations

LEAN Pre-Construction Services Considerations

LEAN Pre-Construction Services ConsiderationsLEAN Pre-Construction services considerations significantly improve outcomes.

Pre-Construction Services include the following…

  • Project Conceptualization
  • Project Delivery Method Selection
  • Design
  • Construction Documents
  • Bidding/Negotiating/Procurement

Adopting a LEAN pre-construction services approach REQUIRES collaboration among all participants and stakeholders and front loads their participation and information-sharing.  Some LEAN project delivery methods already integrate these core elements and thereby increase the success rate of projects to approximately 90% or higher.

Job order contracting, JOC and integrated project delivery, IPD, are the two most widely known forms of LEAN collaborative construction delivery.  Both integrate design, construction, procurement, and all internal and external team members from conceptualize to hands-off, and even beyond.

Job Order Contracting is suitable for renovation, repair, and minor new construction, whereas Integrated Project Delivery is used for major new construction.

The benefit of integrating pre-construction services with Project Delivery is abundantly clear.    It is the Project Delivery Method that established the processes by which all of the procedures and components of initially scoping out a project, designing it, procuring it,  and building it are defined, organized, and structured together into an agreement, as well as an associated Operations Manual or Execution Guide.

It is the role of the real property Owner to provide leadership and match the project delivery method to the project, approach and organize  project teams, establish metrics, and assure both competency of all involved and ongoing improvement.

Project Delivery is the embodiment of the workflows, requirements, and contractual relationships, between the owner, architect/engineer (A/E), contractor(s), and building users, among others.

The Construction Project Delivery Method, the Contract, and the associate Operations Manual/Execution Guide must all be consider jointly.  Collaborative construction delivery methods require multi-party agreements as well as share the following characteristics:

LEAN Pre-Construction Services Considerations increase productivity, quality, and overall satisfaction for all participants.

LEAN Pre-Construction Services Considerations

Learn more?

Integrated Project Delivery, IPD, IWMS, JOB ORDER CONTRACT LEAN CONSTRUCTION, Job Order Contracting, LEAN Construction Managment, Uncategorized

ERP, BIM … Are they really useful to Facilities Management

While at some high level integration, ERP is valuable to FMers, especially from a financials perspective, let’s face it… it’s just another reporting tool at best.   ERP, even IWMS systems are too generic to provide the domain-specific information required across all FM areas…  

  • Strategic Capital Planning &  Management
  • Project Delivery
  • Operations & Management
  • Recycling/Disposal

LFocus Upon LEAN Construction to Improve Productivity

 

As to BIM,  great at the moment for 3-D visualization and some aspects of project delivery, but a child that’s still growing.

Sure, software vendors will tell you otherwise, but when you start asking about the details…. workflows, datasets, KPIs, and being able to drive best practices across the disparate areas… everything simply just falls apart.

Thus, any successful FMer knows that  picking the best-in-class solution in  each knowledge domain…  those that provide what is needed and those that “play nice” with their peers by using industry standard data formats and architectures  (UNIFOMAT, MASTERFORMAT, OMNICLASS, ….) is the way to go.

The key is assure a common data environment (CDE) that enables the appropriate information … in terms of quantity, content/level of detail, and format… to be rapidly accessible to each knowledge domain and/or operational element and/or process.

Tools that claim to integrate ERP with IWMS and/or BIM… well…  good luck with that.  Do you REALLY see you procurement, engineering, operations and maintenance, construction, architecture, and other service delivery teams using the same tools?

My guess is… of your not.  You do, however, want them sharing information, and using the same tools for  like processes.

For example, Job Order Contracting, JOC, is a proven LEAN construction delivery method that can consistent deliver the vast majority of renovation, repair, and minor new construction projects on-time, on-budget, and to the satisfaction of all participants and stakeholders.     Technology, tools, cost databases,Technology, tools, cost databases, and services are available to accomplish this.   Is this capability a component of any turnkey ERP/IWMS/BIM platform… of course not.

Technology will NEVER transform an industry…. especially the AECOO sector, unless CHANGE MANAGEMENT is addressed properly.

CHANGE MANAGEMENT across the AECOO sector must first address the following…

  • Owner leadership & requisite competence
  • Require collaboration among ALL participants
  • Shared risk/reward
  • Common  terms, definitions, and data environments
  • Locally researched, detailed, line item cost data presented within a standard data architecture (MasterFormat)
  • Financial transparency
  • Mutual trust and respect
  • Long term, mutually beneficial relationships
  • Key performance metrics & associated continuous improvement
  • Ongoing training
  • Best value procurement

Those that claim to have a “single source of truth” should  cause any FMer concern, especially ANY tech vendor that claims that they can”bring it all together in one solution”.

There is a reason that the AECOO sector lags all others in productivity.  Focus must NOT be upon technology, but upon improving OUTCOMES via robust LEAN process implementation.

Learn more?

 

Facilities Management evolution

Facilities Management Evolution

Facilities management evolution is an ongoing process.

SOURCE: NRC. 2008. Core Competencies for Federal Facilities Asset Management

 

 

LFocus Upon LEAN Construction to Improve Productivity

The only certainty is that Facilities Management evolution is an ongoing process requiring the integration of disparate competencies, technologies, and processes.

Is your FM Team up to the challenge?

 

Job Order Contract Facilities Management Software

Job Order Contract Facilities Management Software

Job Order Contract Facilities Management Software

4BT-CE Building in Cloud – Job  Order Contract Facilities Management Software – Independent, Objective, Best Value

Simply… an  easier, more efficient way to get things done!

Capabilities

Job Order Contract Facilities Management SoftwareBuilding Location / Information – Building Explorer

The easy way to keep all your current building and project information at your fingertips.  Locate your property using Google Maps and immediately obtain all  the associated construction and operational information, documents, correspondences, drawings, etc.

The innovative way to keep everyone on the same page and everything under control without duplication of effort or loss of time.

The data for every building is stored in a constantly accessible and manageable online archive. Any document type and all of the most common viewers for any type of browser can be handled.

Job Order Contract Facilities Management SoftwareDetailed Line Item Construction Cost Estimating 

4BT-CE OpenCOST sets the new standard for construction cost data.  Finally, just what the industry has needed for decades… independent, objective, and fully transparent cost data for renovation, repair, and construction.  Fully supported by a professional team with decades of cost engineering, project management, and capital planning experience with organizations such as the R.S. Means Company, LL, U.S. Cost, 4Clicks Solutions, LLC, and VFA, Inc.  A team that saw the need for more representative detailed line unit price construction cost data. Licensed by the Construction Specifications Institute (CSI) for MasterFormat data organization.
Job Order Contract Facilities Management Software

Building Information Modeling – BIM

4BT-CE Building in Cloud also allows you to leverage the benefits of BIM (Building Information Modelling), to increase levels of efficiency and collaboration between team members involved in the design, construction and operational phases of the building project process.

Internal and external team members can access the latest building project, construction site, maintenance, or building efficiency information.

4BT-CE Building in Cloud is compatible with both the IFC (Industry Foundation Class) format and the RVT format used by Autodesk Revit.

Job Order Contract Facilities Management Software
Job Order Contract Facilities Management Software
Team

To achieve time, cost, and quality objectives in a complex project, the optimal management of the team is a fundamental requirement.

Building in Cloud enables authorized team members to access project details and documents, manage activities, resolve problems and share documentation with others.

The Building/Project Manager can easily add users, configure access privileges for each project, or building, and much more.

 

Job Order Contract Facilities Management SoftwareDocument Management

The Document Management module lets you manage and share files, while keeping a record of all reviews and uploaded documentation throughout the entire life-cycle of the building.

Upload and share documents and make them available to your whole team – including PDF, Word and Excel files, images and videos.

View and analyse data from BIM models (RVT and IFC formats) directly from your browser without the need to purchase expensive software.

Instant access to drawings using Building in Cloud built-in DWG viewer.

Job Order Contract Facilities Management SoftwareProject Management

Using e-mail is not efficient for managing teams and projects in today’s work environment.   Email simply isn’t up to the task of efficiently supporting construction project complexities or timelines.

4BT-CE Building in Cloud creates teams and provides all information in its current version and assigns and monitors tasks, activities and team communications… accurately and transparently.

The less time spent on managing e-mails the more time you’ll have to manage and monitor the progress of your project.

Job Order Contract Facilities Management Software
Space Management
The Space Management module is designed to provide designers, engineers, contractors, owners visibility into the use of building and external spaces.
Real-time  information in housed in one centralized database, no matter how larger your building portfolio may be, or how much information you may need.  Information is available by spaces, floors, geographic areas, and more!
Asset Management
The Asset Management module lets you keep track of multiple asset classes: buildings, office equipment, furniture, laboratory equipment, and so on.   All are managed throughout their life-cycle. All technical and support information if readily available to those users with appropriate privileges.

Learn more…

 

Job Order Contracting Task Order Process

Job Order Contracting Task Order Process

Job Order Contracting Task Order Process

The Job Order Contracting Task Order Process and LEAN Construction Delivery Approach exists to improve organizational performance specifically with respect to facilities management planning, renovation, repair, and minor new construction.

The Job Order Contracting Task Order Process helps owners and their approved JOC construction contractors…

  • Improve construction outcomes,

  • Assure appropriate management, technical/engineering, procurement, user, and construction service provider engagement,

  • Provide significant improved clarity and transparency for the scope of work, means, methods, and costs,

  • Integrate and leverage diverse areas of expertise,

  • Properly address multiple sources of needs and obligations,

  • Create a collaborative versus antagonistic atmosphere founded upon mutual respect and mutual risk and reward.

Learn more about the OpenJOC Job Order Contracting Task Order Process …

Job Order Contracting Helps Construction Contractors

Job Order Contracting Helps Construction Contractors

Job Order Contracting Helps Construction Contractors in several ways.  If you firm has yet to participate in JOC Programs, it may be the time to do so.

Job Order Contracting Helps Construction Contractors

Job Order Contracting Helps Construction Contractors …

Outperform competitors,

Achieve greater financial visibility,

Improve profit margins,

Develop more consistent revenue streams,

Improve customer service and loyalty,

Develop longer term client relationships, 

Acquire new customers and retain existing clients.

Learn more about Job Order Contracting & How Job Order Contracting Helps Construction Contractors….

 

Best Value Job Order Contracting Solution, Best Value Job Order Contracting Solution - OpenJOC

Independent Objective Best Value Job Order Contracting Solution – OpenJOC

The Best Value Job Order Contracting Alternative

– Independent, Objective, Best Value Job Order Contracting Solution – OpenJOC

Independent, Objective, Best Value Job Order Contracting Solution - OpenJOC

Independent, Objective, Best Value Job Order Contracting Solution – OpenJOC

Robust, Proven Processes that Delivery Approximately 90% of Renovation, Repair, and Minor New Construction Projects… On-Time, On-Budget, & To Everyone’s Satisfaction.

  • Create advantage through improved performance
  • Produce value through sustainable LEAN business practices
  • Minimize disruption through effective risk management
  • Assure quality through common language and common data environment (CDE)
  • Define service level requirements and customer expectations

Tailored to Your Organization

  • Overview of External & Internal Issues

  • Interested Party Requirements Considered Early and Throughout Process

  • Fully; Transparent Scope of Work

Leadership

  • Owner Leadership & Commitment

  • Competent Teams

  • Leadership & Commitment

  • Establish FM Policy

  • Communicate FM Policy

  • Relevant Roles

  • Responsibility & Authority

Planning

  • Fully Defined Mutual Risks & Opportunities

  • Clear Defined Stakeholder Requirements

  • Written Job Order Contract Operations Manual / Execution Plan

  • Defined Planning Horizons and Key Performance Indicators (KPIs)

Operation

  • LEAN Facilities Management and Construction Processes

  • Change Management and Control

  • Focus upon Relationships & Satisfactory Outcomes for Clients and Service Providers

  • Integrated Service Delivery

Improvement

  • Minimal Nonconformity

  • Defined Corrective Actions

  • Proactive Measures

  • Gap Analysis

  • Continually Improve

Support

Performance Evaluation

  • Formal and Informal Estimate Reviews

  • JOC Program Compliance Monitoring

  • JOC Audits

  • Performance Reviews

Learn more about the Independent, Objective, Best Value Job Order Contracting Solution – OpenJOC

Applying the Independent, Objective, Best Value Job Order Contracting Solution – OpenJOC and associated process standards …

  • contribute to the optimization of regulatory compliance
  • assure technical and procurement information is more accessible through standards implementation and cloud technology
  • improve the quality of contractor services and owner support.
and characteristics

Job Order Contracting requirements, specifications, guidelines, and characteristics

OpenJOC – Job Order Contracting requirements, specifications, guidelines, and characteristics that can be used to assure consistency, limit variation, and enable optimal efficiency with respect to material, products, processes and services fit for facilities management… renovation, repair, maintenance, and construction.

Job Order Contracting requirements, specifications, guidelines, and characteristics

The OpenJOC suite of tools support Job Order Contracting per Owner guidelines and requirements.

  • Specify performance of personnel and services
  • Virtually eliminate misunderstandings, errors, and omissions
  • Elevate operational and ethical levels
  • Enhance positive change management
  • Integrate and leverage diverse areas of expertise
  • Assure cost visibility and transparency
  • Create operational competitive advantage
  • Assure quality
  • Meet team and user expectations
  • Continuously improve
  • Fully define requirements, roles, processes, and workflows
  • Clarify risks and opportunities
  • Minimize variance
  • Require leadership & commitment
  • Supporting collaborative technology – cloud-based
  • Document results
  • Regular third-party maintenance

 

Either Agency or JOC Consultant acts as CM

Agency or JOC Consultant acts as CM

” Either Agency or JOC Consultant acts as CM. ” is a sentence that should NEVER appear in a Job Order Contract RFP or associated with a JOC Program.

Unfortunately, however, Job Order Contracts, in certain areas, primarily County, State, and Local Government, has been known to abuse JOC and allow JOC consultants to manage JOC programs and projects.

The following definition should also NEVER appear within the scope of a JOC Program…

“Construction Manager – The authorized representative of the Agency to administer, coordinate, and manage the Job Order or JOC Project. The Construction Manager can be either the Agency or the JOC Consultant’s Construction Manager.   If the Construction Manager is managing a Job Order or JOC Project, the term Construction Manager is used interchangeably with “Using Agency” and/or “Agency Owner” in the Contract Documents.  Also known as JOC Consultant.”  (Source:  http://www.dgs.pa.gov/Documents/Procurement%20Forms/Handbook/Pt4/Pt%20IV%20Ch%2015%20Job%20Order%20Contracting%20Program.pdf )

A JOC Program should ONLY be managed by an independent government agency with appropriate authority, and/or the real property owner implementing the JOC program.

The primary focus of any “best practice” Job Order Contract” is to develop, support, and manage long term win-win relationships between Owners and Contractors, resulting in quality construction projects delivered on-time, on-budget to the satisfaction of all participants.

Achieving maximum benefit from a JOC program requires a competent owner that provides leadership, without excessive management and control.

An owner-managed Job Order Contract drives superior outcomes and avoids any potential for conflict of interests, abuse of contractors, and/or fraud.   JOC can also be deployed via cooperatives, if such cooperatives are directly managed by independent governmental agencies with the authority to do so.   Use of JOC consultants and/or cooperatives owned and managed by private entities presents an opportunity for abuse and/or fraud, especially if payment to the JOC management firm is in the form of a percentage of total JOC construction volume. Several independent audits of JOC programs have documented these an associated issues.

Cooperatives, managed by independent governmental authorities, provide other public sector real property owners, with access to JOC Construction Services without the cost of setting up a JOC.   This is generally considered to be beneficial to owners with annual JOC construction volumes less than $2M per year.  Properly managed cooperatives that provide independent, objective, and professional JOC services thus play an important industry role.

OpenJOC, a term coined by Fout BT, LLC, abides by fundamental JOC principles of collaboration and transparency, as well as core LEAN construction processes. Focus is upon providing tools, training, and support at the appropriate level to enable owner-managed JOC programs and associated support services, as well as support for JOC cooperatives managed by independent governmental agencies.

Either Agency or JOC Consultant acts as CM

OpenJOC is based upon the philosophy that a full understanding of owner and contractor needs, requirements, competencies, and behaviors is vital to JOC program success and continuous improvement.

Focus upon OUTCOMES by all participants and shared risk-reward drives overall BEST VALUE that can be quantitatively measured.

OpenJOC delivers and supports all requisite components of a Job Order Contracting System based upon current best management practices (BMPs) including;

  • Electronic Cost Data- Unit Price Book(s) – Detailed locally researched construction task descriptions in common terms, with detailed labor, material, and equipment breakdowns included.
  • Support, & Training – Ongoing support and  software technology and cost data updates,  and multiple levels and formats of training for all JOC program participants (introductory, advanced, domain specific, regional, on-site, and virtual).
  • Services – Independent Government Estimating (IGE), Budget Collaboration Reviews,  JOC Marketing, Informal Estimate Auditing Services/Formal Estimate Auditing Services, Marketing – Internal and external marketing to build awareness of the JOC Program and its core feature, benefits, and requirements.
  • Technology – Collaborative cloud environment embedding  LEAN construction delivery methodology and designed to support consistent JOC Program deployment:
    o Integrated Cost Estimating, Contract Management, Project Management, and Document Management
    o Access to Multiple Cost Data Sources / UPBs
    o Ability to Lock Down UPBs/Price Guides, and associated Coefficients per Job Order Contract(s)
    o Export to Excel, PDF
    o Store, Recall, Share, Reuse Estimates from Central Location
    o Link to Specifications / Graphics / Pictures
    o Powerful Estimating Tools
    o Standard and Custom Reporting
    o Industry Standards – Masterformat licensed
    o Secure Data Encryption
    o Full Administrator ControlsLearn more about OpenJOC…. www.4BT.US

Uncategorized

LEAN Construction Delivery

LEAN construction delivery is the solution to the AECOO sector’s track record of poor productivity.    While LEAN processes have been deployed just as successfully as in the manufacturing, software, and other areas,  penetration has been anemic.   Less than 5% of the AECOO currently uses LEAN construction, and even fewer do so optimally.

LEAN, whose first successful implementation is credited to Henry Ford and the automobile industry,  provides several benefits. Perhaps the most important benefit of LEAN however is its ability to limit variation.

The AECOO industry suffers from an inability to control variation.    Certainly there are multiple variances from project to project, including but not limited to, labor skill requirements, capabilities, and availability, location/site issues, weather, construction means and methods, material/equipment costs and availability,  regulations, and procurement processes.   Nonetheless, the AECOO’s woes are not due to project dissimilarities, but rather, in how participants have historically planned for and reacted to them.

LEAN Construction Delivery Methods provide …

  • The ability to leverage the skills and resources of teams with varying competencies and requirements. Teams under Varying Site, Regulatory and Weather Conditions,

 

  • Tools to  optimize knowledge, information, and prior experiences.

 

  • Flexibility to adapt to changing needs and conditions with minimal risk,  

 

  • Procurement systems based upon Best Value

 

  • Shared risk/reward

 

  • Financial Transparency

 

  • Common Data Environment

 

  • Access to current, defensible, and actionable information 
Construction Industry Productivity Remains Poor

Construction Industry Productivity Remains Pool

It’s likely no surprise that construction industry productivity remains poor.  Ninety percent (90%) of capital projects are not delivered on-time, on-budget, or to the satisfaction of participants (Construction Industry Institute, CII, research).

What is truly unacceptable is that solutions to the problem have existed for decades, yet are seldom implemented.  LEAN construction delivery methods have proven to yield significant improvement over the past thirty plus (30+) years, yet less than five percent (5%) of owners have successfully adopted their use.

Construction Industry Productivity Remains PoorConstruction Industry Productivity Remains Poor

LEAN Construction Delivery Methods

Integrated Project Delivery, IPD, for major new construction, and Job Order Contracting, JOC, for minor new construction, renovation, and repair, are both capable of consistently improved performance… over 90% of projects delivered on-time, on-budget, and to the satisfaction of all participants and stakeholders.   Despite the availability of these and other robust solutions, the  AECOO* sector as a whole continues to waste time with excessive focus upon so called “technology solutions” (3D visualization, BIM, IWMS…), yet ignoring the fundamental requirement for Owner competence and leadership.   As result… construction industry productivity remains poor.

*AECOO – Architecture, Engineering, Construction, Owners, Operations

Learn more today…

Facilities Asset Management and Enabling The Workforce

Facilities Asset Management and Enabling The Workforce

Facilities Asset Management and Enabling The Workforce requires a focus upon managing relationships, transactions, information, tools, and resources.

Enabling the workforce specifically demands optimizing competencies and relationships among internal and external facilities services providers.  While it’s widely recognized that facilities asset management is best considered from a life-cycle and best value perspective, it is rarely practiced in this manner.

Best value facilities asset management and enabling the workforce demands the integration of multiple competencies that may be in-house and external to the organization, as well as disparate information, technologies, and competing goals.   Managing the numerous and ongoing facilities renovation, repair, maintenance, and minor new construction projects is particularly problematic for many real property portfolio owners. As the proper stewardship of existing buildings is generally critical to the function and bottom line performance of facility intensive organizations, improvement in this area is paramount.

Measurable and significant improvement in competencies relevant to facilities asset management and service delivery is easily attainable via LEAN collaborative construction delivery methods.  Job Order Contracting, JOC, is the most widely known and used method for renovation, repair, and minor new construction.

JOC Programs, when deployed in an independent, objective, and best value manner, can consistently delivery over 90% of projects on-time, on-budget, and to the satisfaction of all participants and stakeholders.   Unfortunately, less than 5% of the market current uses JOC and some sectors within this category, particularly state, county, and local governments have yet to master the concept.

Until senior management focus is upon developing required competences associated with LEAN facilities management and construction service delivery,  core facilities management capabilities and outcomes will continue to suffer their legacy of waste and low productivity.

This is particularly disappointing as implementation of LEAN methods is not difficult as support tools and services abound.  Based upon the level of owner resources, a JOC Program can be up and running within six months or less.

Learn more about Facilities Asset Management and Enabling The Workforce…  info@4BT.US

Facilities Asset Management and Enabling The Workforce

OpenJOC LEAN Job Order Contracting

OpenJOC LEAN Job Order Contracting

OpenJOC LEAN Job Order Contracting delivers optimized facility renovation, repair, and minor new construction services via teamwork and the consistent implementation of proven management processes.

OpenJOC LEAN Job Order ContractingOpenJOC LEAN Job Order Contracting

What sets OpenJOC LEAN Job Order Contracting apart?

1. User focus—Focus is upon the user and the organisation with respect to providing the best possible services.  Client/User values define the program and are shared by JOC contractors.
2. Demand driven—Requirements of users and the organisation, derived from strategic and tactics objectives prioritize resource allocation and JOC Program activities.
3. Best Value and Context of Use—Consideration is given to the context of use and achieving best value for resources expended, rather than selection of the lowest bid, or lowest initial cost.
4.  Process oriented—JOC is viewed as a construction delivery process rather than as a means to bypass traditional procurement checks and balances.
5.  Service production— OpenJOC assumes service solutions are co-created by service users and service providers and that both will contribute to continuous improvement and mutual benefit.
8. Relationship management— Long term, mutually beneficial relationships are key to increased productivity.  Knowledge is retained and improvements frequent.
9. Learning process – Training and ongoing learn is a requirement.

What OpenJOC is not!

  1. A service designed to maximize benefits exclusively for the real property owner, without proper reward to and consdieration of contractors.
  2. A mean to bypass traditional procurement checks and balances and/or a means to get projects approve that otherwise would not have been via traditional procurement/construction delivery methods. (see JOC Audits to learn more…)
  3. A service paid for via a % of total construction volume to a JOC consultant who is involved in approving construction projects.
  4. A JOC that is “open book”, i.e. relies upon contractor and subcontractor quotes versus a locally researched and verifiable unit price book. (see JOC Audits to learn more…)
  5. A JOC Program dependent upon spreadsheets and ‘ad hoc’ practices versus application-specific collaborative JOC technology.

Uncategorized

Setting up a LEAN Job Order Contract

Setting up a LEAN Job Order Contract.. OpenJOC, a LEAN Job Order Contract,  provides an environment  that efficiently supports core facilities management functions, including renovation, repair, maintenance, and minor new construction.  The OpenJOC LEAN Job Order Contract includes all required tools, information (including locally researched line item cost data), workflows, documents,  and services

Any organization that wants to  contribute to the development and creativity of their internal staff as well as external service providers can reap significant benefits with an OpenJOC Job Order Contracting Program versus traditional construction services procurement and delivery, or even “run of the mill”, or less robust JOC Programs.

The key to an OpenJOC JOC Program is that is establishes the strategies and processes necessary to connect diverse people, skills, information types, and competencies to drive maximum resource utilization and focus uponn  positive outcomes for all participants and stakeholders.   While independent and objective, OpenJOC also provides a proven framework that integrates the traditionally sil0-based processes of owners and service providers.  Properly setting up LEAN Job Order Contract and managing it properly typically results in approximately 90% of projects being  delivered on-time and on-budget per client requirements.

Stakeholders include owners, occupiers and operators of the facility, all service providers, the local community, and representative agencies.

Setting up a LEAN Job Order Contract

OpenJOC Job Order Contracting assures robust implementation of processes that mutually benefit all stakeholder interests.   The multiple and unique experiences and competencies of participants are leveraged to drive optimal results.   Limited in-house resources are used to the maximum extent possible.

The learnings obtained from the experiences of the team and co-creation of solutions are preserved within the transparent OpenJOC environment and supporting OpenJOC cloud technology.

Setting up a LEAN Job Order Contract helps participants  achieve measurable gains in productivity, quality, responsiveness, and overall satisfaction.

Traditional Design-Bid-Build OpenJOC – Job Order Contracting
Generally antagonistic as individual needs of owners and service providers tend to compete. Concerns of all stakeholders are considered throughout the process – owners, building users, contractors, oversight groups…
Generally rigid process, little interaction, few checks and balances. A continuous/cyclical process, adaptable to changing needs/focus. Client and service provider needs and capabilities are fully considered and supported.
A structure based upon separate areas of expertise or capabilities.  Information is limited to silos with little opportunity for mutual benefit.  Duplication of effort and waste is common. Shared information process supported by common data environment, REQUIRED collaboration and information sharing (including financial transparency via a mutually agreed upon detailed line item unit price book, UPB).  Co-learning, recommendation for improvement, and continuous improvement are not only encouraged, but rewarded
Facilities users are considered as data sources at best. Facilities users are actively involved as part of a requirements and acceptance process.  Users viewed as valuable information sources and team members.
The end result is typically rampant waste, brief owner/service partner relationships, and facility user dissatisfaction. The result is acceptance of solutions based a detailed line item estimate complete with supporting notes, information, plans, etc.  and generally 90%+ of projects completed on-time, on-budget, to everyone’s satisfaction.

Learn more…

Relationship Management:   procurement-technical-management-building users-oversight groups

Cross-functional Teams & Systems Throughout Project Life-cycle

Targeted Value Statement to Each Participant/Stakeholder

Primary Orientation Towards Quality Outcomes

Discrete Process Supporting Long Term Relationships/Value

 

Uncategorized

Facilities Management Key Performance Indicators

Facilities Management Key Performance Indicators (KPIs) provide objective analysis of select aspects of the built environment.

KPIs are essential to facilities management, as the old axiom goes, “you can’t manage what you don’t measure”.

Facilities Management Key Performance Indicators

While benchmarks against peer organizations are important, the collection and analysis of actual current and actionable information is preferable.

The following terms, definitions and KPI’s are relevant to life-cycle management of the built environment and may be useful to your organization.

  1. Number of service requests per time period.
  2. Number/percentage of service requests completed versus requested.
  3. Number/percentage of service requests completed per established timeframe
  4. Number of contractor estimates issued.
  5. Number/percentage of contractor proposal requests received on time.
  6. Average time from RFQ to receipt of contractor estimate.
  7. Average variance between owner estimates and contractor estimates.
  8. Number/percentage of change orders.
  9. Total value of change orders.
  10. Average project delivery time versus project size.
  11. Quality/satisfaction of work performed.
  12. Average dollar value of renovation, repair, maintenance work.
  13. Annualized Total Cost of Ownership (TCO) per building per gross area = Rate per square foot
  14. Annualized TCO per building/Current replacement value = Percent of Current Replacement Value (CRV)
  15. Annualized TCO per building/Net assignable square feet = Cost rate per net assignable square
    feet per building
  16. Annualized TCO per building/non-assignable square feet = Cost rate per non-assignable square
    feet per building
  17. Annualized TCO per building/Building Interior square feet = Cost rate per interior square foot per
    building
  18. Churn Rate = The total number of moves made within a 12-month period divided by the number of occupants
    during the same period.
  19. Utilization Rate = = Occupied Space/Facility Usable Area
  20. AI (Adaptation Index) or PI (Programmatic Index) = PR (Program Requirements)/CRV (Current Replacement Value)
  21. Uptime or Downtime – Defined in percent, as amount of time asset is suitable for the program(s)
    served.
  22. Project Soft Cost Index = Soft Costs/Adjusted Total Actual Project Cost
  23. Estimating Index = Actual Time or Costs/Estimated Time or Costs
  24. Custodial Costs per square foot
  25. Grounds Keeping Costs per square foot
  26. Energy Costs per square foot
  27. Energy Usage = British Thermal Unit/Gross Area = BTUs/GSF
  28. Utility Costs per square foot =
  29. Waste Removal Costs per square foot
  30. Facility Operating Current Replacement Value (CRV) Index = Annual Facility Maintenance Operating Expenditures ($)/Current Replacement Value ($)
  31. Facility Operating GSF Index = Annual Facility Maintenance Operating Expenditures ($)/Gross Area (GSF)
  32. Planned/Preventive Maintenance Costs per square foot
  33. Emergency Maintenance Costs as a percentage of Annual Operations Expenditures.
  34.  Unscheduled/Unplanned Maintenance Costs as a percentage of Annual Operations Expenditures.
  35. Repair costs (man hours and materials) as a percentage of Annual Operations Expenditures
  36. AI (Adaptive Index) or PI (Programmatic Index) = PR (Program Requirements)/CRV (Current Replacement Value)
  37. FQI (Facility Quality Index) or Quality Index or Index = FCI (Facility Condition Index) + AI (Adaptive Index)
  38. Capital Renewal Index = Annual Capital Renewal and Renovation/Modernization Expenditure ($)/Current Replacement Value ($)

Via WWW.4BT.US – Leading provider of LEAN Construction Delivery Solutions, including Job Order Contracting.

KPI Categories – Physical, Financial, Task/Equipment Related, Environmental, Health/Life/Safety/Legal…

Focus Upon LEAN Construction to Improve Productivity

Focus Upon LEAN Construction to Improve Productivity

There is only one barrier to the efficient management of the built environment…. commitment.  While BIM has been hyped by vendors and industry alike, technology is not a solution the AECOO sector’s woes.  The AECOO (Architecture, Engineering, Construction, Operations, Owner) sector could easily improve its notorious legacy of uniquely low productivity and rampant economic/environment waste with a focus upon LEAN Construction / LEAN Facilities Management.

Focus Upon LEAN Construction to Improve Productivity

What is LEAN Construction?

LEAN Construction is not complex, but does required change management for most AECOO organizations.  The basics of LEAN Construction simply involve required collaborative efforts among all participants in order to drive optimal outcomes.   This necessitates a deeper and more widespread awareness and understanding of human behaviors, organizational productivity drivers, as well as  the concepts of life-cycle management of the built environment.

The need for Change Management

A requisite level of understanding with respect to the strategic and operational value of the built environment and life-cycle facilities management and associated stewardship nonetheless has yet to be achieved by the majority of real property owners.   As owners must provide leadership within a LEAN environment, challenges will continue to exist.

Real property owners must forge closer links and collaboration between the financial, technical, sociological and operational aspects of facilities life-cycle management and integrate multi-discipline teams.   When they are capable of technical and professional leadership and transparently sharing information within an atmosphere of mutual respect and shared risk/reward, true advancement will occur.

Professional organizations and formal educational institutions also need to provide a forum for distributing and exchanging LEAN Construction know-how and best management practices.

Roadmaps and Robust Processes Already Exist

LEAN collaborative construction delivery is not new.   The two most common forms are integrated project delivery, IPD, for major new construction, and job order contracting, JOC, for renovation, repair, and minor new construction.   Nonetheless only a fraction of industry practices either, and even fewer do so to the fullest extent.

There is only one barrier to the efficient management of the built environment…. commitment.

Focus Upon LEAN Construction to Improve Productivity… Learn more…

Expanded Job Order Contracting Solutions

Expanded Job Order Contracting Solutions

Four BT, LLC (4BT – www.4BT.US), offers expanded Job Order Contracting solutions.

4BT provides advanced expanded Job Order Contracting solutions for the construction industry.   We deliver the ability to enable JOC participants to collaborate, share information and work transparency… anytime and anywhere… within our secure cloud environment.

4BT is a veteran owned small business that specializes in providing Job Order Contracting cost estimating, project, and program management software, cost data and support services.

We help real property owners and their multi-discipline in-house teams and external service providers to work more efficiently and achieve better outcomes.

Our staff is a team of estimators, cost engineers,  project managers, and JOC professionals who have built hundreds of JOC unit price books, supported large and small Job Order Contracts, and developed enterprise-level software systems.    Our team has played key roles in leading organizations including, The R.S. Means Company, LLC, VFA, Inc, U.S. Cost, LLC, and 4Clicks Solutions, LLC.

What makes 4BT different…

• Independent, Objective, and Best Value Resource for Job Order Contracting
• Expertise in Job Order Contracting Estimating,Project Management, and JOC Program Support
• Current Generation Cloud Technology
• We Locally Research Own Own Cost Data!!!
• We Provide What Our Clients Want…

A Partial List of our unique JOC Solution Capabilities…

• Our own independently and locally researched unit price cost data
• Integrated JOC application specific cloud cost estimating and project management software
• Unit Price Books are locked to JOC Contract(s)
• Project, task, and document management
• Integral version control
• We DON’T USE location factors (too prone to error)
• Standard Summary and Detailed Estimate Reports, complete with line item and estimate level notations
• Export to PDF and Excel
• Industry Standards – Licensed by CSI Masterformat – 49 Divisions
• Secure Data Encryption
• Full Administrator Controls
• Deployment via Cloud – NO TERMINAL SERVERS or outdated technology used

Services

  • 4BT OpenJOC Custom Unit Price Book Development 
  • 4BT On-Site Training Class
  • 4BT On-Line Virtual Training Class
  • Professional Services
  • JOC Program Implementation
  • Informal JOC Estimate Compliance Review Per Audit (ICR)
  • Formal JOC Estimate Compliance Review Per Audit (FCR)

 

www.4BT.US

Job Order Contracting Life-cycle Facilities Value Management

Job Order Contracting Life-cycle Facilities Value Management

Job Order Contracting Life-cycle Facilities Value Management and improving AECOO outcomes for all participants and stakeholders.

 

INTRODUCTION – The goal of Job Order Contracting Life-cycle Facilities Value Management activities is to maximize the value of physical structures and assure appropriate ownership of the project outcomes over the project’s life span.   Funding for maintaining built structures is rarely sufficient, thus existing budgets must be maximized.   Job Order Contracting Life-cycle Facilities Value Management enables the efficient use of available funds targeted  for executing renovation, repair, maintenance, and minor new construction projects.  While some attempt to differentiate between life-cycle and value management, in reality, they should be one in the same, thus the use of the term, Job Order Contracting Life-cycle Facilities Value Management.

Life-cycle analysis takes into account best value.  This includes first costs as well as ongoing operation, maintenance,and disposal/recycling.  A best value approach to facilities management considers all possible alternatives and focuses upon total cost of ownership in concert with the built structures relative support of the organizational mission.

Maximizing facilities functions and performance at the lowest possible total cost is the definition of best practice facilities management, and/or Job Order Contracting Life-cycle Facilities Value Management.   This includes reducing the risk of project/system failure, on-time and on-budget project delivery,  shortening projects delivery times,  lowering operational costs, as well as improving quality, reliability and safety.

ROLE OF CONSTRUCTION DELIVERY METHODS – Collaborative participation of all participants and stakeholders as early in the project phase as possible and on an ongoing basis,  i.e. from concept onward, is a core element of successful life-cycle / value management.

The degree of success achieved with respect to life-cycle / value management is largely determined by the construction delivery method used.   Traditional design-bid-built has been noteworthy in its failure to deliver efficiency and long-term mutually beneficial relationships.   Alternatively, the proven success of Job Order Contracting, JOC and integrated project delivery, IPD have demonstrated significant measurable improvements in construction and life-cycle outcomes for all participants and stakeholders.

For example, Job Order Contracting can deliver over 90% of projects on-time, on-budget, and to the satisfaction of all stakeholders. This is amazing within an AECOO industry where waste and low productivity is the norm.

Both collaborative construction delivery methods, JOC and IPD,  focus upon best value.   They are proactive and based upon  problem solving management and maximizing the functional value of a project by assuring teamwork from concept stage to operation stage of projects.  They also leverage the expertise multidisciplinary teams.    JOC and IPD make the real property owner’s  value system explicitly clear from the project’s conceptual stage and onward.   They are designed to obtain the best functional balance between cost, quality, reliability, safety and aesthetic as determined by owner specifications.   Owner leadership and competence is a fundamental requirement, as is the competency and collaborative nature of each team member.

IMPLEMENTATION – Implementation of IPD and JOC programs commonly take the form of arranging an intial workshop in which all participants, the client/real property owner, facilities management, AE’s, contractors, suppliers, manufacturers, specialists and other stakeholders involved take part and put forward suggestions for discussions.   This is distinct from a project kick-off meeting.  The process assures that everyone understands what a client will accept as the benchmark to measure the outcome of their investment, as well as everyone’s roles, responsibilities, capabilities, risks, and rewards.

JOC, IPD, and life-cycle / value management are defined as an organized and written set of procedures.  Example being Operations Manuals or Execution Manuals, which are part of the contractual documents.  Both are based upon LEAN management principles, as both JOC and IPD are LEAN collaborative construction delivery methods.   Both are and  organized and written set of specified procedures and processes that are introduced, purposely to enhance the function of a designs, services, facilities or systems at
the lowest possible total cost of effective ownership, in concert with the client’s value system for quality, reliability, durability, conformance, durability, aesthetic, time, and cost.

JOC, IPD and other LEAN collaborative construction delivery methods center around enabling  team  creativity, innovation, and continuous improvement.   Other key characteristics include the following:

Job Order Contracting Life-cycle Facilities Value Management

LEAN Planning Outline 

 

Work

Activities

  

Phase

  

Activities

  

Questions

  

Techniques
 

 Conceptualization  

 

 

 Concept Select appropriate team, assure all members are trained in LEAN process(es), initial briefing meeting Needs, budgets, resource requirements, study areas.

Identify areas of potential improvements.
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  

Information

 Collect latest and correct information Required information, areas of expertise? Request for facts from validated sources.
 

 

 

 Functional analysis  

Identify, classify and document functions

 What asset/area  do? Identify main functions, cost and worth to organization (priority).
 

 

  

Analysis

  

Generate alternative ideas

 What else will perform the functions? Simplify and classify functions, use creativity and innovation.
 

 

 

 Evaluate  

Evaluate alternatives. Total cost, availability,
technology, merits,constraints, ease of construction, schedules impacts,
safety, ease of procurement, coordination…

  

What is the cost/value  trade off for each alternative? 

 Established standard for evaluation, developed cost (UPB) and value model
 

 

 

  

 

Development

  

Developed evaluated alternatives

  

 Meet client’s requirement?

 Collect defensible data and consider other alternatives
 

 

 

 

 Presentation  

Method of presentation, present workable alternatives.

 List benefits and constraints Method of presentation, prepare reports tailored to appropriate audiences.
 

 

 

 

 

  

 

 

 

Execution

  

 

 

 Implementation Implement presented ideas Award approved service providers. Determine if contractual changes or special conditions are needed Eliminate roadblocks, actualize plan, implement ideas.
 

 

 

 Follow up Check results. Audit. Ideas successful or not , what are the benefits and setbacks Final feedback. Document learnings. Key Performance Indicators, KPIs

 

Introduction to LEAN Facilities Management

Introduction to LEAN Facilities Management

An introduction to LEAN Facilities Management involves discussions about collaboration, competencies, tools, interpersonal relationships, delegation, strategy formulation, implementation, monitoring, and ongoing improvement.

Facilities Management is a leadership function with the central goal of maximizing value of  with available resources.  Technology is helpful for lowering associated implementation costs and to helping to assure consistency, but should not be the primary driver.

The Success of LEAN Facilities Management REQUIRES the following…

  • A common understanding and commitment to the fact that facilities/built environment is critical to the organizational mission.
  • Owner competency and leadership
  • Collaborative and competent teams
  • Ability to leverage disparate areas of expertise and/or cross-functional teams
  • Financial transparency
  • Shared risk/reward
  • Common data environment
  • Focus upon outcomes and best value
  • Required collaboration
  • Required training
  • Continuous improvement
  • Key performance indicators (KPIs)
  • Supporting tools, technologies, and services
  • Life-cycle versus first-cost mindset
  • Relationship building & long-term relationships
  • Alignment of built structures with organizational mission
  • Fully defined and written FM Execution Plan – outcomes, roles, responsibilities, work flows, metrics, requirements.

The fact that most FM executives list “budgeting and cost management” as their most significant challenge is indicative that the profession has a long way to go.    Building internal and external capabilities and competencies should be the primary focus and challenge.   Measurable FM gains can only be achieved when capable cross-functional teams are established within a supportive organization.

The role of the Owner…

Learn more…

 

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LEAN FM Involves Leveraging Teams and Diverse Skills

LEAN FM Involves Leveraging Teams and Diverse Skills.  There is nothing new or complex about LEAN FM.  It’s benefits of delivering 90%+ of service delivery on-time, on-budget, to everyone’s satisfaction are well documented.  Yet, only 5% of FMers truly practice LEAN…. why?

The answer is equally simple.  LEAN FM required significant change management as well as owner leadership.

LEAN FM

  • Cooperative Teamwork
  • Leveraging Diverse  Skills & Capabilities
  • Continuous Skills Deployment
  • Mutual Trust/Respect
  • Shared Risk/Reward
  • Financial Transparency
  • Common Data Environment (CDE)
  • …

Read above article “Delivering Better Facilities…”

LEAN Facilities Management

LEAN Facilities Management

LEAN Facilities Management Drives Optimal Outcomes for owners, facilities users, contractors, architects, engineers, and oversight groups.

LEAN is not new to the AECOO sector.  In fact, it has been successfully practice for decades in the form of Integrated Project Delivery, IPD and Job Order Contacting, JOC.

When applied to Facilities Management, LEAN’s value lies within integrating previously disparate technical and business domains and leveraging their experience from project concept through close out.

LEAN Facilities Management

  • Integrates technical and business teams
  • Leverages disparate experience of team members
  • Focus is upon outcomes
  • Rapid response and client-focused services delivery

To date, only 5% of the AECOO sector truly leverages LEAN for facilities renovation, repair, and maintenance, despite readily available and proven tools, techniques, and service providers.   While LEAN can delivery over 90% of projects on-time, on-budget, and to the satisfaction of all stakeholders, it does require significant “change management” for the uninitiated.   For example, information must be shared among all participants transparently, including financial/cost data.   Additionally risk and reward are shared among all teams.   This type of an environment is generally foreign to those experienced solely with traditional facilities management, construction, and AE activities.

LEAN Facilities Management

Learn more today…

 

 

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Deploy your Job Order Contract Optimally

Deploy your Job Order Contract optimally using LEAN best management practices and supporting tools and services provided by JOC professionals with your needs in mind.

Deploy your Job Order Contract Optimally

  • Continuously Evaluate & develop Maintenance Excellence
  • Clearly Define Work Responsibilities, Tasks, and Outcomes within a Job Order Contract Execution Manual
  • Perform Regular Audits
  • Minimize Response Times
  • Assure Regulatory Compliance
  • Use Current, Locally Researched Tasks and Detailed Unit Price Costs
  • Reduce Unplanned Maintenance Requests
  • Leverage Collaborative Cloud Technology and Processes

Learn more today….

Prioritizing Job Order Contract Task Orders

Prioritizing Job Order Contract Task Orders

Prioritizing Job Order Contract Task Orders is a key part of providing efficient facilities management services on an ongoing basis.

Job Order Contracting provides the ability to deliver over 90% of renovation, repair, and minor new construction project projects on-time, on-budget, and to the satisfaction of all participants.   That fact aside, there is never enough money in the budget to fulfill all requirements.

Does your organization have a process in place for prioritizing job order contract task orders?

There are several items to consider in this regard.  First, is the methods being used to manage your real property portfolio.  It’s likely you have a mix of planned, preventative, and reactive strategies in place based upon your budget, mix of facilities, and other factors.

Your plan also includes various types of inspections, visual and other, with multiple items/units of detail/measure…  paint condition, chalking, water/gas leaks, window casings, concrete cracking, etc.

All of the above, then fit into a priority listing and/or matrix, such as the following…

In Good Condition (Good = ok for now)
Functional with warning (Failure Predicted = pay attention, but not a critical system/location)
Schedule Work Order (Fix Needed = Something is amiss, and should be scheduled for repair based upon established criteria)
Urgent Work Order (Emergency Fix Needed  = Must be done asap and/or within a set period)

Priority #1 Immediate /Same Day Response (Emergency or Safety) – Direct health or safety impact and preventing the delivery of the core mission.
Priority #2 48 Hour Response (High) –  If not attended to, possible direct health or safety impact or impact on the core
mission.
Priority #3 10 (x-day) Working Day Response (Medium) – No immediate health or safety impact but needs attention. Work needs to be
complete but no immediate impact on the core mission.
Priority #4 Date Sensitive Response (Scheduled) – Customer requested completion date. This work needs to be completed based on the date the customer is requesting in order to keep their operations functioning normally to achieve
the core mission.
Priority #5 90 Day Response (Low) – Requests that have an impact on aesthetics or minor impact on the function of
the building.

Prioritizing Job Order Contract Task Orders

 

Construction Cost Data

Independent, Objective, Best Value, Construction Cost Data

Independent, Objective, Best Value, Construction Cost Data is changing the way architects, engineers, contractors, subs, and owners interact. The OpenCost Approach provides a locally researched unit price detailed construction cost data base withing a standard data architecture (CSI Masterformat).   Unlike traditional “national average cost databases” that rely upon cost factors to provide local costs, the OpenCost Approach delivers data from each city, region, or state as required.

Independent, Objective, Best Value, Construction Cost Data

Information is updated annually, however, data can be modified by users at any level of detail and reused while still maintaining proper organization.

The OpenCost Approach provide the unique ability to actually quote construction jobs and not simply have a “reference cost database”.

So, if you organization is looking for Independent, Objective, Best Value, Construction Cost Data, why not contact us today?

Additional Information:

The OpenCost Approach delivery Independent, Objective, Best Value, Construction Cost Data within a database to handle your current and future needs, quickly and accurately.   Provide and share valuable information to your organization, your business partners, and/or your service delivery partners.

Any construction, renovation, or repair process becomes quantifiable with a standard format, easily understood by everyone!
Create estimate, budgets, life-cycle capital reinvestment models, or link to BIM!

Budgeting, estimating, approving, executing, and managing renovation projects has just gotten easier!   The OpenCost Approach  is a common tool that enables major improvements in communicating scope of work.  Tasks are clearly characterized and shared with a shared environment.

Teams can move from managing people to sharing information and knowledge.  Long term, mutually beneficial relationships are formed as the expertise of all parties can now be shared to improve the overall project outcome.

The OpenCost Approach contributes to the development of a common template of tasks and costs to create a shared understanding. This creates a functional versus dysfunctional system, with all parties working toward a common purpose.

Independent, Objective, Best Value, Construction Cost Data

OpenCost is a trademark of Four BT, LLC

Independent, Objective, Best Value, Construction Cost Data

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Common Myths Associated with LEAN Construction & LEAN Facilities Management

#1. LEAN FM & LEAN Construction require more time and cost more.

FALSE: Traditional methods such as design-bid-build and even design-build, are wasteful and cost more in the long run than Integrated Project Delivery (for new construction) and Job Order Contracting (JOC) for renovation, repair, and minor new construction. Life-cycle costs are reduced by LEAN methods, as are procurement costs. LEAN methods also significantly reduce project delivery times and improve overall satisfaction for all participants.

#2. LEAN FM & LEAN Construction are difficult to implement.

FALSE: While LEAN methods do require a certain amount of change management with an associated shift to a focus upon collaboration and mutually beneficial outcomes, as well as leadership on the part of the real property owner, and competence of all service providers, tools, training, and consulting are readily available.

#3. All suppliers, tools, consultants and approaches to LEAN FM & LEAN Construction are the same.

FALSE: Do your homework! Tools, suppliers, and consultants must be independent, objective, and focused upon providing the best value for the client. Do not purchase IPD or JOC services that are based upon compensating the supplier by a total percentage of the construction volume. This is expensive and can lead to compliance issues, as well as set the landscape for improprieties.

#4. LEAN Facilities Management and LEAN Construction Delivery Methods are new.

FALSE: LEAN methods have been successfully practices for decades and have proven to consistently deliver over 90% of projects on-time, on-budget, and to the satisfaction of all participants and stakeholders.

LEARN MORE… White Papers, Articles, etc.

Procuring Construction Performance with Job Order Contracting

Procuring Construction Performance with Job Order Contracting

INTRODUCTION – Procuring Construction Performance with Job Order Contracting yields significantly outcomes for owners, contractors, and facilities users.

Traditional construction delivery such as design-bid-build, and even efforts at improvement such as design-build, are lacking the respect to  1. basic contract focus and requirements,   2.  relational aspects,  and 3., integration of disparate processes and information.

A focus upon the procurement of AECOO (Architecture, Engineering, Construction, Operations, and Owner) OUTCOMES to the mutual benefit of all involved participants and stakeholders in not difficult, nor is it new.   Furthermore, the benefits of this approach are well documented, and include a completion rate of approximately 90% or greater in terms of on-time, on-budget, and satisfactory renovation, repair, maintenance, or new construction project delivery.

That said, less than 5% of the AECOO sector engages in procuring construction performance and an even lower percentage does so efficiently.

FOCUS UPON OUTCOMES –  An early and ongoing focus upon outcomes core aspect of Procuring Construction Performance with Job Order Contracting.

Every plan, activity, and expenditure of resource is done with the goal of increasing value for all participants and stakeholders.  This can only be achieved if all participants and stakeholders are competent, engaged, understand and agree with all roles, responsibilities and planned outcomes, and share information in standardized, transparent manner.

With respect to the AECOO sector, the most important aspect is that the Owner provide leadership and have access to the required competencies for all aspects of the projects at hand.   It is the Owner that must lead without excessive management and control, and provide an appropriate level of oversight.

Traditional construction delivery to reconcile the divergent values and strategies held by owners, contractors, building users, facilities managers, and others.    In fact, it relies upon the false premise that lowest bidder and/or volume are the best ways to save money or improve efficiency.

LEAN construction, as embodied within OpenJOC Job Order Contracting,  creates an environment that support specialized capabilities to create value beyond that achieved through artificial cost economies.  For example, rewards are based upon performance, and processes are designed to mitigate opportunistic behavior and reduce both uncertainty and ambiguity.  Roles and responsibilities are clearly specified and collaboration is a requirement of all participants.

Learn more…

 

 

 

 

 

 

 

Introduction to Current Construction Cost ESTIMATING Techniques , Uncategorized

Introduction to Current Construction Cost ESTIMATING Techniques 

Introduction to Current Construction Cost ESTIMATING Techniques 

 By Four BT, LLC

INTRODUCTION

Robust construction cost estimating is critical to improving productivity, quality, delivery times, cost control, and overall satisfaction for any renovation, repair, or new project.

There are several types of construction cost estimates that provide varying levels of detail and confidence.   They range from proving a conceptual or “ballpark” estimate for budgetary purposes to detailed line item estimates.

An integrated, collaborative cost estimating approach provides greater value to all participants and stakeholders.  This specifically involves assuring that appropriate owner, contractor, engineering, and architectural representatives are brought into the process as soon as possible where functional and financial aspects are discussed openly.

While cost estimating has traditionally focused upon initial costs, a life-cycle perspective generally provides greater value.

Construction cost estimates are provided by a professional estimating firm either as part of the design team or as an independent party contracted with the construction firms or directly for the agency/owner.  In many instances the latter is preferred in order to ensure the independence of the estimate and to meet associated fiduciary responsibilities.

 

ESTIMATING FORMATS

The format of the construction cost estimate should be specified by the owner and associated contractual documents.   Common industry terms and definitions should be used for all descriptions.  Based upon the level of detail of the estimate, the most common data formats used are the CSI MasterFormatTM and Uniformat.

MasterFormat is used for detailed line item estimates and consist of 49 divisions.  Uniformat is used for system level and/or early stage/conceptual estimates and includes the major systems of a building.  In some cases Uniformat and MasterFormat are used jointly.

TYPES OF ESTIMATING & ESTIMATES

Conceptual/Preliminary/Square Foot Estimates –

Early in the planning/budgetary stages a conceptual “Ballpark” estimate is used to provide a gross order of magnitude estimate.  Based upon a preliminary scope of work provided by the agency/owner, this type of an estimate provides a +/- 40% approximation of the target cost. Estimates of this kind are generally provided on a square foot basis and/or a combination of square foot and Uniformat.   The types of estimating used for this level include Project Comparison Estimating, Parametric Cost Estimating, and/or Area & Volume Estimating.  Historical information on total job costs from similar projects are typically used for preconstruction services; an example would be the number of beds in a hospital, the number of rooms/floors in a hotel, etc.  This method makes the assumption that the approximate gross area and type for the proposed work has sufficient examples within the historical records for the area.

Intermediate/System Level Estimates – 

These level of estimates provide a more detailed look at the buildings structure from a system level versus the square foot approach.  Alternative construction techniques, assemblies, systems, and materials are included versus looking at building type and/or general systems as a whole.  Estimates at this level are generally presented in Uniformat.   Various LEAN methods are used in developing these estimates such as Earned Value Analysis.  Assembly and/or System Estimating is used for this level.  Estimates are generally within approximately +/- 25% of the target value.

Final/Detailed Estimates –

This is the most comprehensive type of estimate.  It is provided is CSI MasterFormat™ format and most closely approximates the target cost.

The multiple construction tasks required for a specific project with the associated labor, material, and equipment breakdowns for each individual task are definitively described and quantified.  Work is divided into the smallest possible work increments known as the “Unit Price”.  That Unit Price is then multiplied by the required quantity to determine the cost for that specific task.   All line item costs are summed to obtain the total estimated cost that most represents the closest approximation of a project’s target cost.

This approach creates an optimal environment for all parties to communicate and understand the project scope of work and serves as a means to compare various estimates and associated outcomes.

LEAN Construction Delivery methods, such as Job Order Contracting (JOC), require detailed line item estimates using  either  a contract specific Unit Price Book (UPB)  or other published unit pricing mechanism that allow all parties to jointly focus on line item tasks and usages.  A Unit Price Detailed Line Item Estimating is used at this level.

LEAN Collaborative Construction Practices Construction Cost Estimating

 

 

Actionable Construction Cost Data for Job Order Contracting

 

Construction cost databases

Types:

 

Compiled Cost Records of Completed Projects

Pros

  • Time to create an estimating is relatively short.
  • Cost to create is relatively low

Cons

  • Every project is unique.
  • Involves local factors
  • Improper use can cause gross errors
  • Target value is approximately +/- 25% to 30%.

 

Line Item Unit Price Books

Pros

  • Provides detailed task information that is locally researched for labor, material, and equipment
  • Can greatly speed estimating time
  • Generally within +/- 5% of target cost.

Cons

  • Not all unit price books are locally researched
  • Some UPB’s have national averages and may yield unpredictable results
  • Some UPB’s use cost factors in an attempt to localized data.
  • Users must be highly skilled in line item detailed estimating.

 

Source – www.4BT.US

 

Learn more…

Uncategorized

JOC Users

https://4bt.us/job-order-contracting/

JOC Users

The following sectors use Job Order Contracting.   The list is in approximate order regarding capability (primary) and volume (secondary).

  1. Federal Government – DOD and non-DOD
  2. Educational Institutions – Higher Education, K-12
  3. Transportation – Airports, Mass Transit
  4. Hospitals
  5. County, State, & Local Governments
  6. Utilities

Learn more about LEAN Construction and Job Order Contracting

While JOC users span multiple sectors, the level of competency and implementation consistency varies greatly.  The DOD sector has used JOC the longest and developed the most comprehensive JOC Programs.   Independent and internal JOC Audits, however, have unearthed that the County, State, and Local Government sectors appearto be in a learning mode.

If you currently wish to improve your JOC Program, or a considering JOC for the first time, review the Basics of JOC.

 

Job Order Contract Unit Price Book Basics

Job Order Contract Unit Price Book Basics

Job Order Contract Unit Price Book Basics

Improve your JOC Program today with independent, objective, locally researched cost data.

Detailed Line Item Unit Cost Construction Estimating, & Unit Price Books, UPB (Unit Price Guides-UPG)

Definition: detailed cost estimate: “a forecast of construction cost prepared on the basis of a detailed analysis of materials and labor for all items of work.”  – 13th edition of the Architect’s Handbook of Professional Practice

A detailed unit cost line item construction cost estimate involves a  review and understanding of the scope of work of the associated project including all possible factors and risks.

Materials, labor, and equipment cost breakdowns and detailed descriptions in plain English provide the highest level of granularity and value when preparing a cost estimate.

Anticipated productivity is also a key element.  The latter can be affected by multiple variables such as labor composition and availability, weather, site access, materials availability, etc.

Owners – Detailed unit price line time estimates are required by public agencies for most  IDIQ construction projects, and ALL conforming JOC Programs.    If the project exceeds a specified dollar threshold, an independent owner estimate generally is required (also called an independent government estimate – IGE).  Detailed line items are also used to create and validate construction budgets.

Contractors – Detailed unit price line estimates derived from unit price books are used to bid jobs, or supplement bids, and are also used by general contractors and construction managers to validate bids from sub contractors.  Detailed unit price line item are also critical for progress reporting, invoicing, and payment processes.

Required Skills – Field  construction experience is extremely important as it is perhaps the only way to gain a true appreciation of risk factors and other variables that can impact a construction project.  In addition, the ability to review and interpret construction drawings, work with cost estimating formulas and technologies, communicate information to disparate disciplines and audiences, and attention to detail are all additional requirements.

Process Tasks  – Processes associated with creating a line item construction cost estimate include the following:

  • Definition of services to be provided and associated statement of work – SOW
  • Estimate preparation
  • Validation of contents and assumptions
  • Estimate reconciliation (if multiple estimates are required for a project)
  • Documenting and associated presentation of the estimate

Defining the scope of services in itself requires several considerations such as identifying inclusions and exclusions, defining the basis to be used for pricing (construction cost databases and/or unit price books – UPB, unit price guides, subcontractor quotes), presentation of line items as bare costs or inclusive of overhead and profit,  classification system to be used, i.e. CSI MasterFormat, Uniformat II, WBS, etc, and format of the estimate (summary level, detailed level, price vs. non pre-priced items, associated formulas, source of each line item).

Collaboration among construction project participants and/or stakeholder is critical to assuring a proper definition of the scope of services, and thus mandatory if the estimate is to reflect the expectations of the owners, design, contractor, etc.  As one might expect, achieving the best possible outcome for the estimate and the overall construction project is dependent upon the processes involved in gathering accurate information in a timely manner and to employ the actions and philosophies associate with continuous improvement and LEAN best management practices.

The following is a graphic noting some of the items that may be considered in the creation of a construction cost estimate.

unit price book - upb

Multiple construction delivery methods require line item construction cost estimates.  Job Order Contracting – JOC, for example, requires the use of line item unit price book – UPB and/or unit price guide – UPB.   Unit prices books are typically updated annually and quarterly price adjustments may also be applied by specified processes and factors.

job order contracting

CONE OF UNCERTAINTY – (Source:GAO)

job order contracting unit price book

Learn more about JOC Tools & Resources…

improve your job order contract

IMPROVE YOUR JOB ORDER CONTRACT

The application of LEAN methods and best management practices can significantly improve your job order contract.

IMPROVE YOUR JOB ORDER CONTRACT

The potential for fraud, waste or abuse exists for Job Order Contracting as it does for any other construction delivery method. A review of  completed Job Order Contract Audits provides ample evidence of this fact.

Proper selection of a JOC consultant and tools, professional JOC Program set-up, internal controls, and education/training improve your job order contract.

It is important and necessary to be alert to the potential for fraud, waste, and abuse, and to take reasonable, prudent, efficient actions and implement appropriate safeguards.  Personnel to be assigned to work with JOC should be carefully screened to ensure the selective use of competent individuals with a high degree of integrity

  • JOC management authorities must require…
    • JOC personnel are properly trained to do their jobs.
    • JOC personnel are familiar with and understand the terms of the contract they are executing.
    • Procedures established are followed for processing JOC actions from start of job to finish of contract administration.
    • JOC personnel read and adhere to standard for ethical conduct.
    • JOC personnel seek assistance and guidance before proceeding on unclear or borderline issues.
    • Meaningful quarterly reviews of JOC operations are done by technical/engineering/ facility management staff and contracting/purchasing/procurement staff.
    • Work scopes, government estimates, contractor’s proposals, awarded task orders, and contractor invoices are logically progressive, consistent and clear.
    • Project scoping and project quality control/acceptance activities are kept separate. Individuals involved with project scoping and development as well as proposal negotiations with the contractor must not be the same individual responsible for monitoring quality assurance. Although project engineers may be required during the construction phase to clarify scope of work or recommend modifications for changes or unforeseen conditions, the responsibility for recommending acceptance of completed work will remain with separate quality assurance personnel. This principle of separation should also allow for effective coordination between project engineers and quality assurance persons so that problems occurring during the construction phase do not cause contractor delays and potential claims.

IMPROVE YOUR JOB ORDER CONTRACT

The head of the team or division with responsibility for the Job Order Contract should ..

  • Make certain contract administration documentation activities are kept current, complete and correct.
  • Conduct periodic sessions among JOC personnel to discuss their work activities, procedures and problems.
  • Complete a JOC internal control checklist and/or audit annually.
  • Assure all aspects of the JOC SOP (Standard Operating Procedure) properly identify authorities, limitations, and responsibilities of all technical and contracting/purchasing  personnel involved in the JOC contract, and that processes are being followed.
  • Review the JOC unit price book to assure it is sufficient to meet JOC requirements and updated per changed to meet the specific needs on an annual basis.
  • Require all JOC participants (internal and contractor) receive training and orientation regarding policy and procedures for operation of the JOC contract which specifically addresses their authorities, limitations and responsibilities.
  • Assure  statements of work for proposed task orders under a JOC contract contain sufficient detail to assure that the owner can properly develop an estimate and that the contractor can properly prepare responsive and cost-effective proposals with a minimum of non-prepriced work.
  • Review any  significant differences between owner estimates and contractor proposals and determine reasonableness of bids and/or accuracy of estimates.

IMPROVE YOUR JOB ORDER CONTRACT

Uncategorized

Unit Price Books Construction Cost Data

Unit Price Books Construction  Cost Data

Unit Price Books Construction Cost Data

LEAN Collaborative Construction Practices Construction Cost Estimating

 

Not surprisingly there is a great deal of confusion about Job Order Contracting, especially when it come to unit prices books and the use of appropriate and best value construction cost data.

Selective the appropriate Unit Price Book is extremely important to the overall success of any JOC Program.

While Job Order Contracting remains the most widely used form of integrated project delivery, many if not most users are not receiving the best possible outcomes.

What Unit Price Book is best for your JOC Program depends upon several factors:

  • Location (s)
  • Types of Work / Work Scope (General renovation/repair, trade-specific, specialized work)
  • JOC Implementation Method (Owner-managed JOC, JOC Consultant, Cooperative)
  • Type and Competence of Users
  • Data Format (CSI Masterformat is highly recommended)
  • Update frequency (Annual updates are recommended)

Unit Price Books Construction Cost Data

Types of Unit Price Books ( In order of likely best overall value)

  • Locally researched unit price book (may include some owner-specified unit price line items)

  • Owner specified unit priced book (may also be called a “customized unit price book”)

  • Commercial unit price book (typically uses also involves the use of cost/location factors)

Unit Price Books Construction Cost Data

Selecting a best value UPB solution balances the cost and quality of the offering specific to your JOC Program Goals.

Locally researched unit price book (may include some owner-specified unit price line items) – Based upon your location and other requirements, the cost of locally researched unit price book may be comparable is cost to a standard commercial unit price book, or require a one time fee of approximately $10,000.   Even considering the one time fee, a locally research unit price book generally provided the best solution as it most accurately reflects local material, labor, and equipment costs.  For example, is is not unusual for a commercial unit price book to have error rates of 30% or more, even when localization factor are used.  These errors can cost significant delays do to the need for prolonged owner/contractor negotiations, and/or impact the project value to participants.  Thus the cost of the locally research unit price book can easily be justified.

Unit Price Books Construction Cost Data

Owner specified unit priced book (may also be called a “customized unit price book”) –  The use of  fully owner-specified unit price book is extremely rare due to the detail included in locally researched unit price books and the excessive cost of a fully owner-specified unit price book.   Creating an unit price book from scratch could easily cost hundreds of thousands of dollars.

Commercial unit price book (typically uses also involves the use of cost/location factors) – Using a commercial construction unit price book for JOC, with or without localization factors, is typically the lowest cost solution.  That said, it may not accurately reflect costs for the JOC region(s) and generally will also lack required construction tasks.

Both Owners and Contractors should carefully research and/or review the unit price book to assure it is in alignment with organizational goals.

Learn more today!

 

Construction Cost Data Sources:

Locally researched JOC Unit Price Books (Locally researched unit price line items, including line item modifiers, demolition line items)

Four BT, LLC

The Gordian Group

Commercial Unit Price Books (Typically a commercial unit price books that involves the use of cost/location factors)

The Gordian Group / R.S. Means Company

 

 

 

 

 

 

 

JOC Process Post Task Order Approval

JOC Process Post Task Order Approval

While specific procedures are tailored to your JOC Program, here is a JOC Process Post Task Order Approval.

Once a JOC project is approved a standardized process occurs per JOC Program requirements.  This process is generally detailed within the JOC Operations Manual and/or JOC Execution Guide.

JOC Process Post Task Order Approval is detailed within the Job Order Contract Operations Manual / JOC Execution Manua

A typical JOC Process Post Task Order Approval  is show below.

JOC Process Post Task Order Approval is detailed within the Job Order Contract Operations Manual / JOC Execution Manual

  • Appropriate authority (typically procurement) approves and executes the Job Order and associated package via the issues of a  Notice To Proceed (NTP) – (copied to the owner and contractor JOC “managers”)
  • Owner’s JOC Manager organizes a pre-construction kick-off meeting with JOC contractor and building user
  • JOC Contractor begins work
  • Owner’s JOC Manager or assigned person regularly inspects JOC work site to assure compliance.
  • Contractor’s JOC Manager informed Owner of completion a JOC project
  • Owner’s JOC Manager does a final inspection, reviews work package and either creates a punch list or processes and pays the invoice
  • Define Closeout process is followed by both Owner and Contractor
  •  Owner designates project is complete.

Learn more today!

Better JOB ORDER CONTRACT

Better JOB ORDER CONTRACT

Do you need a better Job Order Contract?

better job order contract

At the very least, a Job Order Contract should be all of the following…

  • Low cost (not based upon a percentage of total construction volume
  • Benefit ALL participants – Owner & Contracts
  • Financially transparnet
  • Easy to implement
  • Based upon industry best management practices
  • Use independent, objective, and locally researched cost data.

As a public sector real property owner it is your fiduciary responsibility to provide the best value for use of public funds.   Job Order Contracting can be very beneficial in this regard, but only if used properly!  JOC should never be used to bypass traditional procurement process and to minimize due process.

If you would like to learn more about how to implement a better Job Order Contract, contact us today!

better job order contract

 

Uncategorized

Job Order Contract Estimate Management

Job Order Contract Estimate Management

Assigned owner and contractor team members request, create, review, edit,  and/or approve detailed line item estimates during the JOC process.

These actions can occur during conceptual, request for proposal, detailed estimating, or estimate approval/review stages.

A clear written definition of the Job Order Contract Estimate Management process should be included within the approved Job Order Contract Operations Manual and/or JOC Execution Guide.

Proper Job Order Contract Estimate Management greatly aids in the coordination of all team members and JOC consultants.

Type of Job Order Contract Estimates

  • Conceptual/Budgetary Estimate – Owner/Owner’s Representative
  • Owner Estimate or Independent Government Estimate – Owner/Owner’s Representative
  • Task Order Proposal – Contractor
  • Revised Task Order Proposal – Contractor
  • Owner Approved Task Order Proposal

 

Conceptual/Budgetary Estimate – An Owner may create construction cost estimates to determine “ballpark”/order of magnitude level estimates based upon a conceptual scope of work for budgetary purposes.   It is best to use the accepted JOC Unit Price Book at this stage to avoid duplication of work and to avoid future communication issues.   This effort may be solely for the Owner’s budgetary purposes, or as a prerequisite for submitting an RFP to a JOC contractor.   Appropriate Owner team members are responsible for validating the scope of work and validating the level of detail.  This is general a joint effort between the Owner Procurement Authority, Technical/Engineering Authority, and Building User.

Owner Estimate or Independent Government Estimate – A detailed line item estimate for a proposed JOC project/task order using the approved JOC unit price book.  This is generally completed after a joint site walk between Owner and Contractor Teams.  A cross functional Owner team consisting of the JOC procurement authority, technical/engineering team, and building user may be involved.

Contractor JOC Proposal– A detailed line item estimate in response to an Owner’s JOC Request for Proposal for a specific JOC task order/project. JOC project/task order using the approved JOC unit price book.  This is generally completed after a joint site walk between Owner and Contractor Teams.

Assigned individuals are responsible for coordination/communications, appropriate documentation/reviews/approvals, version control, per the approved Job Order Contract and associated approved JOC Operational Manual.

All estimates should maintain the required usage of the Unit Price Book line items and associated data architecture (CSI Masterformat).  Any non-prepriced line items should be based upon an existing line item and assigned a CSI Masterformat association.

Remove term: Job Order Contract Estimate Management Job Order Contract Estimate Management

Learn more…

LEAN Job Order Contracting 5

LEAN Job Order Contracting 5

LEAN Job Order Contracting 5 – Project Goals and Objectives:

LEAN Job Order Contracting 5

 

Project Goal Objective Project Time frame
Paperless review, research, and internal presentation processes. Improve information access, collaboration, and transparency. Work on current data. Throughout JOC Program
Build upon our collocation strategies and collaboration efforts. Learn the best way to deliver  coordinated and collaborative information and services and leverage the shared experience of all parties involved. Throughout JOC Program
Educating all stakeholders on the benefits of LEAN collaborative construction delivery. Encourage continuous information sharing and continuous improvement via shared risk/reward. Throughout JOC Program
Develop, record, and analyze metrics and key performance indicators (KPIs) Retain learnings from each project with the goal of making future  projects more efficient. Throughout JOC Program
Take the time to periodically present what project learnings to stakeholders Use presentations to increase the knowledge base of our peers. Throughout JOC Program
Identify and resolve conflicts as early in the process as possible. Reduce construction cost, rework ,and project delivery time.

 

 Throughout JOC Program
Utilize 4BT Builiding in Cloud technology capabilities to stream line analysis, cost estimation, project management, and training Use defined consistent process,parameters, and phasing to reduce human error and reduce time needed for scope of work development, cost estimating, information sharing, etc. Throughout JOC Program
Improve the Quality of all information and documentation. Reduce miscommunication, errors and rework. Throughout JOC Program
Improve the quality in the field. Leverage cloud computing and tablets to improve information quality and timely generation. Throughout JOC Program

LEAN Job Order Contracting 5

Resources

 

LEAN JOC Construction Improves Facilities Management Outcomes

LEAN JOC Construction Improves Facilities Management Outcomes

LEAN JOC Construction Improves Facilities Management Outcomes for all participants and stakeholders by focusing upon best value.

In order to achieve the Project goals, all team members must proceed with with informed, accurate information concerning process, quality, cost and schedule.

While each Project Team Member will brings different expertise and capabilities, all of these issues and the full weight of the entire teams’ expertise should be integrated throughout the project to attain optimal outcomes.  None of the parties can proceed in isolation from the others.  Extensive collaboration and continuous flow of information is required from concept onward.

LEAN JOC Construction Improves Facilities Management OutcomesThe likelihood of a successful project will be increased by promoting the following LEAN JOC Construction objectives:

  • Increasing the competency of all participants and appropriate levels of Owner competence and leadership.
  • All participants and stakeholders  collaborating throughout the project life-cycle
  • Planning and managing the Project and optimizing it as a whole rather than to the benefit of a particular party.
  • Tightly coupling learning with action promoting continuous improvement throughout the life of the JOC Program.
  • Fundamental willingness and ability of the Delivery Team members, Owner,  Owner’s Representative and the Owner’s JOC Consultants to make and secure reliable statements and commitments as the basis for planning and executing the Project.
  • The conditions of satisfaction are clear to all parties – the performers and the recipient
  • All parties are competent to perform the task(s) or has access to the competence to perform the task and the wherewithal (materials, tools, equipment, instructions
  • Performers have  estimated the time to perform the task and have  allocated adequate resources for successful project completion.
  • The performer is sincere in the moment that the promise is made – only making reasonable commitments that can and will be
    fulfilled.
  • The performer is prepared to mitigate the consequences that may ensue if the promise cannot be performed as promised.

“Delivery Team” describes the following parties collectively as appropriate: Owner’s Representative, Architect, Architect’s consultants, Owner’s consultants including key Owner personnel such as Facilities, Maintenance and Information Technology managers, Procurement/Purchasing/Contracting Contractor, Subcontractors, and Suppliers. The Delivery Team has the legal duties of the constituent parties as outlined in their respective contracts.  The team members are expected to openly share information and cooperatively collaborate for the benefit of the Project.

“Core Team” – The functioning and operation of the Project is administered by the “Core Team”. The Core Team include the Owner/Owner’s Representative,  the Contractor/Contractor’s Representative, and others as identified in the contract.

The Core Team should be facilitated by the Core Team (Owner) representative selected by the Core Team representatives collectively. This initial Core Team may invite others to become members of the Core Team and may also remove added members from the Core Team. The Core Team should exercise its authority in the best interest of the Project. Each party should assure that its Core Team representative attends all Core Team meetings, has authority to act on behalf of the Party, and fulfills his or her responsibilities as a Core Team representative. The Core Team may approve any representative’s designation of an alternate representative; any purposed replacement of a Core Team representative should be subject to the Core Team’s approval, which should not be unreasonably withheld.

The Core Team should endeavor to make decisions for the Project by consensus. In the event the Core Team fails to reach a consensus, the objecting party may rely on the terms of its separate agreement(s).

The Core Team has a regular meeting schedule during active projects which in general should be no less frequently than weekly.  The Core is responsible for reviewing and stimulating the progress of the Project and developing benchmarks, metrics, or standards, and monitoring Project Evaluation Criteria. The Core Team plans and implements items to improve Project performance.   On a regular basis, the Core Team Meeting should include by invitation a Senior Management Representative from each of the Core Team member firms.

The Owner/Owner’s Representative is responsible (unless otherwise stipulated) for coordinating action among the project participants, including any additional Owner personnel who must participate in decision making on the Project.

The Core Team is responsible for achieving the targeted best value for expended resources.    Cross-functional team leaders meet regularly and frequently to review opportunities,  including function / cost trade-offs and authority to direct value engineering and adjustments of the to maintain total project target cost.

CORE TEAM REPRESENTATIVES

Owner’s Representatives

  • JOC Program Manager – Typically designated Procurement Authority
  • Technical/Engineering/DPW
  • Senior Management Representative

Contractor’s Representatives

  • JOC Project Manager

METRICS

Cost

Did the project come in within or below the Project Budget?

Were estimates, projections and recommendations provided by the Contractor and Delivery Team correct?

Were cost savings realized?

Schedule

Was the Project completed according to the Project schedule?

Were all punch list items and corrective work orders completed in a timely manner?

Process & Documentation

Where all documents complete, clear and complete?
Did the Project proceed smoothly with a minimum of change orders,  request for additional information, payment issues,
claims and conflicts and were all records and books maintained in good order?

Were the goals of the LEAN integrated process model realized, including efficiency, communication and predictability?

Did the Delivery Team display creativity and intelligence in preparing for and constructing the Project and addressing problems as they arose?

In daily interactions, did everyone believe they received good and responsive service from the Delivery Team?

Did the Project, as initially proposed meet all regulatory requirements so that permits
were timely issued?

Construction Quality

Was the construction work performed in a good and workmanlike manner free from faults and defects with little corrective or punch
list work required?

Were all punch list items and corrective work orders completed in a timely manner

Learn more?

 

LEAN Job Order Contracting Intro 4

LEAN Job Order Contracting Intro 4

LEAN Job Order Contracting Intro 4 continues to define LEAN JOC versus others so-called “JOC Programs”.

Basic elements of LEAN Job Order Contracting …

  • Rewarding desired behaviors
  • Alignment of risk and reward with a party’s ability to control risk
  • Creating a culture of partnership among all stakeholders
  • Creating an open information environment
  • Integrating operating, design and construction knowledge through broad based team meetings
  • Reducing redundant efforts, conflicts
  • Continuously improving means and methods
  • Consistent application of collaborative processes, supported by cloud technology
  • Ongoing required training for all participants
  • Key performance indicators (KPIs) and regular audits by independent third party
  • Owner leadership without excessive reliance upon “JOC consultants”
  • Focus upon best value outcomes

LEAN Job Order Contracting Intro 4 helps drive better outcomes for owners, contractors, and subcontractors and better assure financial transparency as well as fiduciary responsibility.

Learn more about LEAN Job Order Contracting Intro 4 …

FEATURED ARTICLE

Delivering Better Facilities through Lean Construction and Owner Leadership NIBS 2017 – The ability to significantly improve how facilities are constructed, managed and operated depends largely on whether owners provide high levels of leadership, knowledge and collaborative support.

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

Building Information Modelling BIM in the Construction Industry – Technical Report TR-1405

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.

COAA – Owners Perspective – BIM for FIM, BIFM – BIM for FM and a “Building Information Management Framework” – BIMF includes a laser sharp focus on integrated functional planning and cost metrics. The framework’s value for stakeholders includes: a) transformational change effected by a capital planning philosophy that emphasizes integration of professional practice; b) delivery models that emphasize lean construction practices; and, c) transparent standardized construction and facility operations data and taxonomies that contain cost by providing access to building information whether stored or linked to a building
model.

Delivering Better Facilities through Lean Construction and Owner Leadership

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.

Construction Cost Workbook – 2002 – Conference on the International Comparison Program World Bank

Delivering Better Facilities through Lean Construction and Owner Leadership NIBS 2017 – The ability to significantly improve how facilities are constructed, managed and operated depends largely on whether owners provide high levels of leadership, knowledge and collaborative support.

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.

THE EFFECTIVENESS OF PARTNERING AND SOURCE SELECTION IN JOB ORDER CONTRACTING – Design-bid-build has proven to be inefficient, antagonistic, and incapable of delivering the majority of construction project on-time, on-budget, and to everyone’s satisfaction.

 

LEAN Job Order Contracting Intro 4… Contact us.

LEAN Job Order Contracting Intro 3

LEAN Job Order Contracting Intro 3

LEAN Job Order Contracting Intro 3 – Hoe to provide focus upon best value, quality, timeliness, and reasonable cost, assuring overall satisfaction.

LEAN Job Order Contracting Intro 3

  • Scope of Work is fully, unambiguously defined, coordinated and validated.
  • Scope validation phase  is longer and more intense than traditional design bid build, or other “so-called” JOC programs
    because more is accomplished.
  • All tasks are fully defined by detailed locally researched unit price line items from the accepted unit price book.
  • Owner provides LEADERSHIP and the team collaborates to resolve any inconsistencies or conflicts.
  • Each team member is responsible for their area of competence, task, and documentation.
  • Technology and tools used are inter-operable and fully transparent to support checking for inconsistencies/conflicts.
  • Industry standard terms, and clear, concise definitions in plain English are REQUIRED, as well as standardized data formats (CSI MasterFormat).
  • Predefined workflows, processes, sign offs, and work packages are consistently used, and continuously improved.
  • Technical Specifications are those in place by the Owner and not customized.
  • Subcontractor and other vendor insights are integrated into design and used for coordination and conflict
    resolution.
  • Focus is upon Best Value – Quality and Timeliness at a reasonable cost.

LEAN Job Order Contracting Intro 3

Learn more about LEAN Job Order Contracting Intro 3 …

Job Order Contracting – JOC Articles JOC Articles

AEC Best Value Construction and Facilities Operational Exellence- Position Paper

Collaboration In Construction-WhitePaper

JobOrderContractingWhitePaper2016801

JOC Construction Services RFP Considerations for Real Property Owners

IntegratedOrderContractingSAME

LEAN Construction, Building Energy Efficiency, & the Cloud

General Facility Management

Asset Total Cost of Ownership-Efficient Life-cycle Management Model

Classification Criticality – Architecture, Engineering, Construction, & Life-cycle Facility Management – A Draft White Paper

BIM for Facility Management

The Evolution of Construction Cost Estimating Technology

Maintenance and Repair of Federal Facilities

Integrated Project Delivery – IPD

Integrated_Project_Delivery_for_Public and Private Owners – AIA, NASFA, COAA, APPA, AGC

LEAN JOB ORDER CONTRACTING PROCESS INTRO 2

LEAN JOB ORDER CONTRACTING PROCESS INTRO 2

LEAN JOB ORDER CONTRACTING PROCESS INTRO 2 – LEAN Construction is an integral part of JOC and other integrated project delivery methods.LEAN JOB ORDER CONTRACTING PROCESS INTRO 2

1. Involve all key stakeholders including Owner, contractor, subcontractors, and building users in the process.
2. Identify key technologies, such as cloud based cost estimating and project management and begin to capture key parameters.
3. Cost structure – Locally researched unit provide book, UPB
4. Develop performance goals, including metrics for determining team performance.
5. Preliminary schedule for JOC Program and each JOC Project / JOC Task Order.
6. ALL decisions are made on a “best for project” basis.
7. Scope is fixed, price is fixed and cost is established on an detailed line item basis – joint site meeting, joint scope of work review/refinement.
8. Owner signs off on what will be built allowing the team to evolve and optimize any issues.  Collaborative approach and
focus is upon to schedule and outcomes.

 

Learn more…

 

LEAN Construction Job Order Contracting, Uncategorized

LEAN Construction Job Order Contracting

LEAN Construction Job Order Contracting (INTEGRATED PROJECT DELIVERY) – RELATIONSHIP CONTRACTING

LEAN Construction Job Order Contracting follows the fundamental aspects of integrated project deliver versus simply being a method to bypass delays and/or checks and balances provided by traditional procurement and/or construction delivery methods.

LEAN Construction Job Order Contracting

LEAN Construction Job Order Contracting offers several enhancements …

  1. Competent Owner providing leadership on-site management.

  2. Formation of a LEAN Job Order Contracting (JOC) core group which includes stakeholders

    from the Owner, Contractor, and Subcontractor (as applicable) – procurement, technical, facilities management, building users…)

  3. Joint refinement of Scope of Work

  4. Defined workflow and associated document packages

  5. Contract documents are developed.

  6. Collocation of team members at key phases

  7. Full financial transparency

  8. Locally researched unit price book

  9. Supporting cloud-based technology

  10. Iterative continuous improvement philosophy

  11. Focus upon BEST VALUE OUTCOMES

    1. Take ownership of the project

    2. Continuously improve the services, disciplines, and project delivery

    3. Consider life-cycle cost

    4. Deliver the project using defined workflows and monitor with key performance indicators (KPIs)

    5. All parties contribute to drive innovation & find cost savings and schedule improvements to bring the

    project in at the best value

    6. Employ OpenJOC transparent processes

  12. Shared Risk/Reward

LEAN Construction JOB ORDER CONTACTING is a deeply collaborative process that uses best available processes, information, and technology. Essential Principles are set forth as necessary and REQUIRED assumptions in that contribute to the teaming process. Unless all parties are deeply committed to these principles, LEAN Construction JOB ORDER CONTACTING
will not succeed.

Workflow begins with building an Integrated  and Competent Team and conclude with an integrated closeout for warranty period, operations, and maintenance.

LEAN Construction JOB ORDER CONTACTING

  • requires fundamental changes in participants, timing and intensity.
  • involves dynamic, flexible and iterative processes
  • integrates people, systems, business structures and practices
  • harnesses the talents and insights of all participants collaborative to reduce waste and optimize efficiency

ESSENTIAL PRINCIPLES of LEAN Construction JOB ORDER CONTACTING

ALL participants MUST share and apply common values and goals.

1. Mutual respect: Participants understand the value of collaboration and are committed to working as a team in the best interests of the project. To
harness the collective capabilities of the integrated team, all key participants should be involved as early as possible with multiple competencies, disciplines, technologies, and interests represented.

2. Mutual Benefit: All members will benefit and use innovative business models to support, rather than discourage, collaboration and efficiency.

3. Early Goal Definition: Project goals are developed early and agreed upon by all participants. Insight of each participant is valued in a culture that promotes and drives innovation and outstanding performance.

4. Enhanced Communication: Focus on team performance is based on communication among all participants that is open, straightforward and honest. Responsibilities are clearly defined in a no-blame culture leading to identification and resolution of problems, not determination of liability.

5. Appropriate Technology: Rely upon cloud technologies,  specified at JOC Program initiation, to maximize functionality, generality and interoperability.

6. High Performance: Integrated projects will lead to optimized design solutions, higher performance buildings/physical structures, and sustainable design.

7. Leadership: Although each participant is committed to achieving project goals, leadership should be taken by the OWNER.   Each participant should lead in areas of their traditional competence with support from the entire team; however specific roles are necessarily determined on a task at hand basis, and the OWNER IS RESPONSIBLE FOR PROVIDING LEADERSHIP.  Roles are clearly MUST BE CLEARLY DEFINED.    No party (especially JOC CONSULTANTS) should create artificial barriers that chill open communication and risk taking, and/or are solely to the benefit of the JOC Consultant. The core LEAN CONSTRUCTION JOB ORDER CONTRACTING group exists to streamline decision making and problem resolution process.

 

LEAN Job Order Contracting

LEAN Job Order Contracting

LEAN Job Order Contracting requires adherence to and the continuous improvement of process, and a central focus upon transparency, competency, relationships, and shared best value outcomes.

LEAN Job Order Contracting

How does this differ from Job Order Contracts currently being administered?   In some cases, there is little difference.  However, in some segments, particularly State, County, and Local Government, JOC is being used primarily as a means to “bypass” procurement or simplY speed up project deliver times.   These uses are NOT in concert with LEAN Job Order Contracting.

To determine if you are following a LEAN Job Order Contracting process, see if your JOC Program allows you to check off all the following boxes.  If not, you may wish to consider looking into your program a bit further.

  • Strong owner competency and leadership
  • Clear, quantitative JOC Program goals
  • JOC metrics (key performance indicators) 
  • Project prioritization methodology
  • Regular reassessment and audits
  • Continuous Improvement
  • Win/win program structure for owner and all service providers
  • Full financial transparency
  • Locally researched cost data
  • Compliance 
  • Focus upon Best Value Outcomes

ASSESS & PRIORITIZE NEED – FINANCIAL DUE DILIGENCE & FULL TRANSPARENCY – CLEAR ROLES & RESPONSIBILITIES – DEFINED WORKFLOW & ASSOCIATED REQUIRED DOCUMENTATION/SIGN-OFFS – REGULAR INSPECTIONS – ONGOING TRAINING – REQUIRED COLLABORATION

PROJECT SET-UP & APPROVAL – PROJECT EXECUTION – COMPLIANCE

 

Estimating Facility Life-cycle Costs

Estimating Facility Life-cycle Costs

Estimating Facility Life-cycle Costs is a critical aspect of facilities management.

Key elements associated with Estimating Facility Life-cycle Costs include the following:

  • Experience
  • Detailed Project Data
  • Systems costs and systems life-cycles
  • Detailed unit price line item information
  • Current and desired physical condition levels
  • Annual expenditures for operations and maintenance
  • Used of standardized data architectures (CSI Uniformat, CSI Masterformat)
  • Use of common, easily understood industry terms and definitions
  • Building models for multi-year capital planning – including system-level models, linked to unit price data and energy use models, etc.)
    • Expected system/assembly life-times
    • Current percentage of life used
    • Failure mode/failure distribution – percentage and associated curve
    • Priority – system criticality

Managing Life-cycle Costs

With respect to efficiently executing the numerous repetitive renovation and repair costs during the life span of a facility, Job Order Contracting, JOC is a LEAN collaborative construction delivery method that has proven capable of delivering over 90% of project on-time, on-budget, and to the satisfaction of all parties.  Learn more about JOC?

Estimating Facility Life-cycle Costs

What to learn more about Estimating Facility Life-cycle Costs?

 

Actionable Construction Cost Data for Job Order Contracting

Actionable Construction Cost Data for Job Order Contracting

Actionable Construction Cost Data for Job Order ContractingKey characteristics of actionable construction cost data for Job Order Contracting…

  • Independent Source
  • Locally Researched
  • CSI Masterformat data architecture
  • Clear concise definitions in plain English
  • Full details – labor, material, equipment, crew
  • Ability to create Non-pre-priced (NPP) line items from unit price book (UPB) line items
  • Best value (not linked to total value of construction project or total value of JOC construction)

Actionable Construction Cost Data for Job Order Contracting

If your looking for Actionable Construction Cost Data for Job Order Contracting, contact us today!

Benefits of Actionable Construction Cost Data for Job Order Contracting

  1. Uniform language among staff and service providers
  2. Shared vision
  3. Informed decisions
  4. Managed risk
  5. Improved efficiency
Uncategorized

IPD LEAN Construction JOB ORDER CONTRACTING

IPD LEAN Construction JOB ORDER CONTRACTING – all are interrelated and all can lead to measurably improved outcomes for all participants.

IPD LEAN Construction JOB ORDER CONTRACTING

IPD – Integrated Project Delivery – Collaborative process that harnesses the talents and insights of all participants to optimize project results, increase value to the owner, reduce waste, and maximize efficiency through all phases of design and construction.

LEAN CONSTRUCTION – A way to design production systems to minimize waste of materials, time, and effort in order to generate the maximum possible amount of value.

JOC – Job Order Contracting – IPD specifically for renovation, repair, and minor new construction projects.

IPD LEAN Construction JOB ORDER CONTRACTING – PRACTICES

Ground Rules for Effective Communications
 No Animosity – Free & Open Communications (Keep it Professional)
 Respectful – Level of Trust / Build-up Relationships
 No Interruptions – One at a time
 No Bad Ideas
 Don’t Force a Situation / Response (Take time to correct issues)
 Focus on Solutions / Goals – Not Blame
 Be Accurate / Truthful
 Remember – We’re One Team (Support each other / We have the same goals)
 Listening vs. Talking
 Listening before Speaking

Improving Communications
 Listen carefully & help others do the same
 Invite others to restate what they heard the other person say
 Reflect back your understanding of content, feelings & meaning
 Dialog is seeking understanding; not agreement
 Use non-verbal communications to set a positive tone
 No “end arounds”

CONFLICT RESOLUTION
Team Goals and Objectives: All project team members working cooperatively in an
atmosphere of mutual trust, respect and understanding, to anticipate and streamline resolution
to problems. Core to this focus is identifying problems early by getting information from all
involved, conducting team problem solving, giving clear and direct communications and
providing timely resolution of issues.

OWNER RESPONSIBILITIES

OWNER’S AUTHORIZED REPRESENTATIVE (LA) AND KEY STAFF
1. Coordinates necessary contacts with internal and external staff and team members, consultants, and community resources to ensure design and development review of the construction project.
2. Attends regular meetings on planning, maintains a record and observation of processes, and assists the team in ordering, storage, and placement of new materials and equipment as required. Serves as the central liaison between the building users, contractors, and all team members.
3. Represents the Owner and building users in meetings and public forums with affected and interested municipalities, community groups, businesses, individuals, regulatory personnel, and
legislators. Assists in the development of printed materials and other types of
information for presentation to various stakeholders. Makes oral presentations
covering a wide variety of project-related topics. Identifies and provides consultation
to staff, contractors, or volunteers, instructing on departmental regulations,
standards, and operating policies. Participates in all assigned/required training as needed.
4. Represents Owner in meetings with affected and interested stakeholders concerning
construction and operation issues and responds to questions from others
that arise during the course of construction.
5. Creation and assured compliance with roles and responsibility matrix.

Core Practices – IPD LEAN Construction JOB ORDER CONTRACTING

  • Reward desired behaviors
  • Alignment of risk and reward with a party’s ability to control risk
  • Creating a culture of partnership among stakeholders
  • Creating an open information environment
  • Integrating operating, design and construction knowledge through broad based team meeting
  • Reducing redundant efforts, conflicts
  • Improving means and methods
  • Modeling enterprise operations at the start, and behavior after occupancy
  • Mutually promote the success and benefit of the project and abide by the consensus decisions made by the Core Team composed of one leader from entity/area of competence.
  • Use detailed JOC Operations Manual/JOC Execution Guide to promote high performance with mutual benefit in the quality and efficiency of the process and outcome

IPD LEAN Construction JOB ORDER CONTRACTING

Learn more…

Uncategorized

Job Order Contracting Course – Competency 101

Job Order Contracting Competency 101 – The basic element of LEAN construction for renovation, repair, and minor new construction of the built environment.

Complimentary 20 Minute Webcast – Job Order Contracting Competency 101

Job Order Contracting Competency 101

Job Order Contracting Competency 101 – Outline

  1. What is LEAN Construction
  2. Owner & Contractor Requirements
  3. Requisite Tools
  4. Sample JOC Workflow

Register Here for Job Order Contracting Competency 101- (Time/Date TBD)

Job Order Contracting Competency 101 – your first step toward measurable improvements in productivity, quality, and overall satisfactions among participants.

About Us.

Our JOC Team helps Owners, Contractors, Subcontractors, Architectural&Engineering/Contract Management Companies and Cooperatives develop, deploy, and execute LEAN best practice Job Order Contracts.

 

Uncategorized

Job Order Contracting FAQs

Job Order Contracting FAQs are provided to assist in understanding JOC processes and procedures as well as improve the final outcomes for all participants.

Job Order Contracting FAQs

How JOC Contracts do Owners bid?

Owners may bid a single contract or bid several contracts base upon geographic area and/or type of work required (roofing, paving, electrical, etc.)

Are JOCs awarded via lowers bidder or best value?

Owners may elect to award JOCs to the prescribed number of responsible and eligible bidders bidding the lowest coefficients per solicitation.

We, however, suggest that a best value approach be used.  This considers the bidders previous work history as well as the coefficient.
How is are JOC contracts priced, since it the amount of work is open-ended?

Actual projects are not identified at the time of bid.  Pricing for individual projects are based upon the 4BT OpenJOC Unit Price Book and the applied contractor JOC coefficient.    The coefficient (or multiple coefficients), serve as a modifier or adjustment factor, to the applicable unit price book(s) approved for the JOC.    For instance, a coefficient of 1.20 would represent a 20% markup.   The coefficient generally must include all project general conditions as described in the contract, including but not limited to supervision, overhead and profit.  It represents the total cost for an installed unit.  Projects, considered Job Orders under a a JOC contract are generally scoped and priced as part of the process described in the contract.   Once a Job Order is approved, the price becomes a lump sum price for the project.

How do I, as a contractor, develop a coefficient? What is a typical coefficient?

Contractors may develop the coefficients that they choose to bid by any means they desire based on their own experience.  Some contractors develop coefficients by analyzing the unit prices in the Unit Price Books and comparing them to historic and anticipated actual costs, plus overhead and profit.  They may not analyze all unit price line items (generally 30,000-40,000) but may focus on key commonly used tasks.  If a contractor maintains good job costing information, they can select corresponding line items out of the Unit Price Books and compare actual costs including general conditions, overhead and profit.  Historic project analysis, where you take a historic project where costs are known, and then generate a line item estimate based on the applicable Unit Price Book would provide a differential  The differential (including overhead and profit) could provide a reasonable  basis for the coefficient is an appropriate cross section of tasks is selected.   Projects selected should be similar in size, general condition requirements, and possible distribution of work items.

Is the 4BT OpenJOC Unit Price Book similar to a national average price book and the associate used of location factors? 

No.  The 4BT OpenJOC Unit Price Book has been locally researched for the specified JOC area(s).  We do not recommend the use of commercial and/or national average price books.

What are prevailing wage requirements?

Prevailing wage rate requirements of the contract will be imposed by the Job Order Contract.   Davis-Bacon Wage Rates are required for federal government projects and/or those using federal funds.  They also generally provide a reasonble approximation of local prevailing wage rates.   It is critical that labor is locally researched and that national average data not be used.

How may the Job Order Contracts support Minority and Women-owned businesses?

Studies of JOC in the federal government have shown that JOC increases opportunity for small and disadvantaged businesses.  The type of work performed under a JOC should provide   provide opportunities for emerging businesses, whether they serve as prime contractors or a trade subcontractors.    Note that not all JOCs allow for subcontractors.

What is overview of your company and what differentiates your products and services from your competitors ? We founded 4BT in 2016 upon seeing a clear need to Rethink, Reshape, and Rebuild JOC. Basically, to assure that 1. LEAN planning, procurement, and project delivery processes were deployed in a manner that is mutually beneficial to all participants and stakeholders….2. Full transparency and compliance was provided… 3. That solutions did not burden users with excessive fees and costs.and 4. Cost data was truly reflective of local market conditions.

LEAN Procurement via Collaborative Job Order Contracting

LEAN Procurement via Collaborative Job Order Contracting

LEAN Procurement via Collaborative Job Order Contracting provides significantly improve outcomes for all participants and stakeholders.

There are several core elements associated with LEAN Procurement via Collaborative Job Order Contracting for real property owners, construction contractors, and building users.   All begin with the desired outcomes of the project life-cycle in the forefront.
  • Identifying and prioritizing key requirements (personnel, assets, methods, timelines)
  • Defining and developing processes that support positive outcomes
  • Identifying and adhering to a common data environment including a locally researched, independent, and objective unit price book
  • Implementing workflows and processes consistently and leveraging purpose-built  JOC cloud technology

LEAN Procurement via Collaborative Job Order Contracting  required teaming throughout the life-cycle of the project.   Procurement, engineering, and building uses are part of the project from concept through warranty.

 

The Benefits of LEAN Procurement via Collaborative Job Order Contracting

  • Project sequencing optimization – Process is well defined to assure that information is created and shared at the right time
  • Information-asset alignment & transparency – Classification of project information is standardized (MasterFormat) and aligned with user requirements
  • Waste reduction – Shared information environment and defined LEAN construction processes mitigate miscommunication, change orders, and legal disputes
  • Projects timelines are shortened.
  • Quality & Satisfaction are enhanced
  • Reduced complexity via standardized processes, data formats, and information sharing among varied areas of expertise – Procurement is complex and difficult without the support of varied competencies. Challenging traditional, ingrained, and inefficient processes in favor of collaborative LEAN methods improves productivity through the use of openly-shared common information.

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Owners must be competent and provide LEADERSHIP  (Click to read 2017 NIBS Article)

The success LEAN Procurement via Collaborative Job Order Contracting and attainment of available benefits requires that real property owners/facilities management be competent and provide leadership.  The capability of the Owner team and the maturity of the associated facilities management systems must be at a prerequisite level.

Owners must view service providers as part of their team and operate within an atmosphere of mutual respect and trust.

Owners can work with JOC consultants to structure JOC Programs, however, JOC consultants should NOT be managing the JOC Program.   JOC programs are collaborative service supply models and require equal participation of all stakeholders in terms of roles, responsibilities, information creation/sharing, monitoring, etc.

The JOC collaborative construction service supply model  relies upon an integrated team with a focus upon attaining positive outcomes, and a shared approach to problem solving and challenges.

Learn more…

 

RFP JOC Construction Contractors

RFP JOC Construction Contractors

RFP JOC Construction Contractors

RFP JOC Construction Contractors – Solicitation is for JOC construction services for the maintenance, repair, alteration, renovation, remediation, or minor construction of a facility when (1) the work is of a recurring nature but the delivery times are indefinite and (2) indefinite quantities and orders are awarded substantially on the basis of pre-described and pre-priced tasks.

ALL VENDORS (JOC Construction Contractors) must register at www.alliedstatescooperative.com  and check off “JOC services” in the event of any addendums to the Solicitation.  Bidding information and documents are also available.

Tools:

4BT OpenJOC™ UPB

4BT OpenJOC™ system

üContracts are awarded through open competition in compliance with applicable procurement rules and regulations.

üASC sends a Proposal Request to the Vendor, vendor reads about it in the newspaper, or is contacted by another professional bid finding company on behalf of the vendor. In those instances, the vendor is encouraged to log-in at www.alliedstatescooperative.com under Vendor Registration so that in the event there is an addendum or change, they will be notified via email.

üAll proposals are evaluated, however all vendors submitting proposals will be notified whether or not they are given an award.

üThe Vendor and ASC or the ASC member then agrees on a Delivery Order.

üThe Vendor and ASC or the ASC member agrees on a Purchase Order referencing the ASC contract number. No other contract forms may be used, over or in lieu of the purchase order as it will negate the legally procured and awarded contract. Purchase Orders are reported and sent by individual ASC members to the Vendor and to ASC, where they are logged and filed.

üThe Vendor delivers product(s)/service(s) directly to ASC or the ASC member and then invoices ASC or the ASC member depending on who is directly requesting the goods and/or services.

üThe Vendor receives payment directly from ASC or ASC member.

üThe Vendor reports the administrative fee to ASC and pays the fee to ASC.

 

Contractor Proposal Reviews for Job Order Contracts

Contractor Proposal Reviews for Job Order Contracts

Contractor Proposal Reviews for Job Order Contracts are an important element to overall JOC Program success.

These reviews should be done by the Owner and by an independent and objective third party.

An Informal Compliance Review (ICR) is the most widely used form of review.   An ICR is a high level estimate audit that include a line item review that typically meets an agencies contract documents requirement.

JOC industry standards should be used for ICRs or any type of auditing of contractor proposals.  Audits serve to assure transparency and overall program compliance.

An ICR includes a review of the owner’s and contractors SOW  narrative and documents. to gain an understanding of the proposed construction means and methods and its relation to estimate development.  An inconsistent SOW narrative is the primary cause of project issues, including change orders.

An ICR also includes review of the contractor’s proposal for reviewed for the contractor’s coefficient as it is applied to each line item per the estimate document.

Contractor Proposal Reviews for Job Order Contracts

Proper line item usage and associated use of comments are also important.
Proper usage of notes and formula’s on the part of the contractor can dramatically improve communicate and reduce overall project errors.
Conversely, the lack of notes and formulas generally increase the negotiation and value of engineering time, the purchase order issuance time frame, and the time between estimate submittal and construction project start.

Use of trade labor is considered a “Time & Material” estimate and not appropriate as a JOC unit price line item. If a line item cannot be found for a SOW task, a Non-Prepriced (NPP) line item should be considered and used. A NPP typically requires 3 subcontractor and/or material quotes and should given to submission to the owner for evaluation and UPB inclusion.

Division 1 is generally not allowed for JOC.

Also, qualitative or “open ended” proposals and/or line items should be rejected… i.e. the use of terms“as needed”, “as required”, “as directed”, “it is the intent”, should not be allowed.

Learn more about JOC Program Best Management Practices…

 

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Job Order Contract Roles and Responsibilities

Appropriate Job Order Contract Roles and Responsibilities promote best management practices and optimal outcomes for all stakeholders.

JOC Procurement/Purchasing/Contracting Authority

The Real Property Owner and an assigned Contracting, Procurement, Purchasing Authority should be the SIGNING AUTHORITY for any JOC task order/project, with appropriate authority/co-signature of the Owner’s assign Technical Authority (from Facilities Management, DPW, Engineering, etc.)

The assigned Owner authority (JOC Program Manager)  has the responsibility for ensuring the performance of all necessary actions for effective contracting and ensuring compliance with the terms of the contract.

Contractor

The contractor has the responsibility to provide a detailed line item proposal to the Owner, using the accepted JOC Unit Price Book, per the Owner’s request (based upon an Owner Statement of Work and joint site visit), within a defined period, and properly executed the work if accepted by the Owner.

The Contractor provides a full-time JOC Project Manager to serve as the focal point for all work and be responsible for the coordination of on-site activities. The JOC Project Manager shall represent the Contractor and serve as the Contractor’s prime point of contact and the Owner’s sole point of contact for all contract matters

Owner Technical/Engineering/Facilities Management DPW Team/Authority

This individual generally doesn’t have procurement authority (though may request task order proposals) and signature may be required on required JOC procurement documents.  He/she provides an Owner’s Statement of Work with all associated  specifications and/or drawings, and conducts walk through site visits/inspections.

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The OpenJOC Process Job Order Contract Best Management Practices

The OpenJOC Process Job Order Contract Best Management Practices for Owners and Contractors that DEMAND Best Value, Quality, and Maximum Productivity.

OpenJOC Process Job Order Contract Best Management Practices

Independent, Best Value Solutions for ANY JOC Program

•LOCALLY RESEARCHED Unit Price Book –4BT OpenJOC™ UPB
•Supporting CLOUD JOC Software –4BT OpenJOC™ system
•JOC Services
Training (Introductory & Advanced)
Estimate Reviews
JOC Program Development
JOC Program Marketing
•A Veteran-Owned Small Business
•Experienced Team
Decades of proven results, working with…JOC, Cost Engineering, Cost Estimating, & Project Management: The RS Means Company LLC, 4Clicks Solutions, US Cost, VFA Inc., The JOC Group, CJE –Center for JOC Excellence, Owners, Contractors

The OpenJOC Process Job Order Contract Best Management Practices

  • Share quick access with your team
  • Create detailed estimates – Point and click, and build estimates in minutes versus hours, hours versus days, days versus months
  • Current pricing – Standardized & LOCALLY RESEARCHED
  • Nationwide Training – Virtual, On-site – Introductory through Advanced
  • Leading CLOUD Technology
16 Things Every Contractor Should Know When Bidding a Job Order Contract

16 Things Every Contractor Should Know When Bidding a Job Order Contract

16 Things Every Contractor Should Know When Bidding a Job Order Contract is just an introduction to anyone interested in JOC.  Learn more…

6 Things Every Contractor Should Know When Bidding a Job Order Contract

 

1. Typically, what kind of information is given to the general contractor to put together a price and approximately how often does each occur?  For example, are drawings given to the general contractor 50% of the time?  Is the other 50% of the time just walking the job and talking about scope?

Information varies by Owner.  At a minimum, the Owner should provide a statement of work with sufficient detail to enable the contractor to create a detailed line item construction cost estimate.  Information should include a description of current conditions including access, materials, dimensions, and a drawing/PDF, as well as a description and drawing/PDF of requirements.

2. Approximately what percentage of the time are specifications provided?

Specifications should be provided for all work order requests.  For Owners following “best management practices”  specialized JOC specifications are NOT used.  The Owner simply references their existing Technical Specifications. The reason for this is obvious.  The Owner should expect the same quality and type of work across their portfolio. Be Specifications should be per the Job Order Contract and associated with the UPB.  AIA MasteSpec or BSD Speclink specifications or the owner equivalent are generally used for commercial construction.  All local, state, and national codes apply to work done under an executed contract.

Individual owner specifications may also be provided.  Specifications should be present to indicate minimal standards as the usage, materials, and content needs of the owner.

3. Who is responsible for making the quantity takeoff(QTO)?  Is it the general contractor?  Is it an electrical (other trade) contractor that performs the work?

The awarded JOC contractor is responsible for QTO.   If subcontractors are allowed and used per the JOC, it is still the ultimate responsibility of the awarded JOC contractor.

4. Who is responsible for checking the unit price line items in a contractor  proposal?  

The awarded JOC contractor is responsible for all unit line items as well as any nonprepriced line items.  The Owner SHOULD, per fiscal responsibility, check each and every line item.   If a JOC Cooperative is used and/or a JOC Consultant, they may conduct audits of specific project estimates at their discretion and per the JOC Program requirements.

16 Things Every Contractor Should Know When Bidding a Job Order Contract is just an introduction to anyone interested in JOC.  Learn more…

5. Who is responsible for checking the quantities we enter into the JOC to create a proposal?

The awarded JOC contractor is responsible for all quantities entered in the JOC software.  (Also see Question #4 and Response)

6. Typically, how many general contractors are invited to bid on a JOC project?

The number of awarded JOC contractors invited to bind on any individual project varies.  It typically ranges from one (1) to three (3) awarded JOC contractors.  The Owner and/or Cooperative generally has the right to approve and/or award contracts.  The decision to award one, several, or no contracts rests solely with the Owner and/or JOC Cooperative.  Under NO CIRCUMSTANCES should a JOC Consultant be involved in make an award decision if the JOC Consultant is being compensated via a % of JOC construction volume.   

7. The information we have seen from previous JOC proposals indicate Coefficient factors run from .80 to 1.20 for Standard Working hours and .68 to 1.30 for Non-Standard Working hours.  Is this the range that you typically see?

Yes.   For properly designed and managed JOC programs, coefficients average from 0.80 t0 1.20.    If coeffficients are under 0.80 it can be difficult for awarded JOC contractors to make a reasonable profit and can place undue pressure on the contractor.   Coefficients over 1.20 are typically the result of site access/security issues or other unusual circumstances.

8. Who determines which general contractor will be asked to price a specific project for a member in a JOC Cooperative situation?  Is it the member?  Is it somebody the JOC Cooperative?

It is generally the member party (school district, government body, etc.) that determines which contractor will be asked to price a specific project.  In fact, if could be considered a conflict of interest for a JOC Cooperative to make a determination in this regard on a specific project.    Purchase orders are issued by participating governmental agencies (schools, school districts, government entities, etc.)  indicating “Per JOC Cooperative Contract”, on the appropriate document.

The decision as to the number of contractors and their regions awarded contracts, however, is solely made by the JOC Cooperative and/or Owner.   Note:  Most JOC Cooperatives are managed by private entities.  The only JOC Cooperative run and managed by a Government Entity on a nationwide basis is ESC19/Allied States Cooperative.

9. When are proposals due form a Contractor to an Owner?

All timing requirements are specified in the JOC award documents, when should include a JOC Operations/Execution Manual.

10. Do General Contractor’s typically find a team of subcontractors skilled in using a UPB?

The awarded JOC contractor must have a full understanding of costs for all project requirements.  A fundamental aspect of JOC is that the contractor have requisite knowledge to price all tasks required by a JOC owner.   The Unit Price Book (UPB), and associated coefficient(s) and the associated quantities are the source of proposal / task order construction cost estimates.   If the awarded JOC contractor is skilled/knowledgeable relative to the UPB and the UPB is appropriate for the JOC Program, use of the UPB should be sufficient.   Of course,  subcontractors must be allowed per the JOC,  and the subcontractor must be equally skilled/knowledgeable relative the associated UPB.

11. How do general contractors handle the situation where the pricing from one trade, like drywall, runs about 92% of the prices and the prices from another trade, like electrical, run 105% of the  prices?  It seems very unlikely that any two trades will have the same coefficient factor which they charge us.  So our overall coefficient factor will depend upon the proportion of each trades work in the project.  For example, if Project A is 90% drywall and 10% electrical, the general contractor’s overall cost will be different than Project B which has 10% drywall and 90% electrical.

PROJECT A                        JOC $                                   Cost to GC

Drywall                $90,000      x       92%   =  $82,800

Electrical             $10,000      x       105% =  $10,500

TOTAL                                                               $93,300

PROJECT B

Drywall                $10,000      x       92%   =  $  9,200

Electrical             $90,000      x       105%  = $94,500

TOTAL                                                               $103,700

 

Individual JOC task orders/project must be bid by the eligible JOC contractors(s) using the UPB and allowable coefficient(s) only, regardless of the associated distribution of “trades” associated with the particular task order/project.   JOC is based upon the premise that the UPB is generally applicable to all trades.  Furthermore, the JOC contractor may make a varying profit for various individual projects, however, each a reasonable profit overall.

12. We have encountered several contradictions between a JOC RFQ, the Questions and Answers, and Addenda.   Here are a few.  

– General Conditions – is our coefficient factor supposed to include costs such as project superintendent, jobsite trailer, port-a-cans, etc. or do we add line items from the UPB for these costs?

The coefficient should contain all requisite project administrative and/or set-up costs, including overhead and profit.  General conditions are generally not allowed.  Please note that in the case of a JOC Cooperative administrative fee is generally also required.

– Engineering fees appear to be included in our coefficient factor but the RFQ clearly states that this RFQ is not for engineering or architectural scope

Per most, if not all, legislation/regulations, engineering fees are not allowed in a Job Order Contract.  JOC is designed for routine renovation, repair, and maintenance that doesn’t include any significant engineering component.

– P&P Bond costs appear to be included in our coefficient factor  but Q&A stated that these are a pass through cost.

Performance and payment bonds are governed by any and all applicable state and local laws or policies.   P&P bonds are may be linked to the contract between the member agency and the prime contractor, if a cooperative situation, and for example  stipulated to be 100% of specified contract price.  The actual cost of the bond is a pass through, however, any tax consequences should be consider with respect to impact upon profit.

13. Should we qualify our JOC proposal, or will that likely disqualify us?

JOC experience is considered very highly by Owners and JOC Cooperatives if not virtually a mandatory requiremenOur recommendation is to answer any questions on experience in terms of the fundamental characteristics of JOC – early and ongoing information sharing with clients and subcontractors, collaboration, financial transparency, on-demand service, responsiveness to emergency service requests, customer/problems resolution process,  financial status/condition, safety record, reputation/testimonials/references, past experience with similar owners, employee experience, market outreach capabilities (marketing, education/training) etc.  Furthermore, we have found that most effective way to enter the JOC market is to participant on JOC programs as subcontractor.

14. Regarding “Economies of Scale”, how is this handled in a JOC?

The only economies of scale contained in a UPB are quantity based line items.   Historically, these are not generally found within and commercial “national average” cost databases, however, have are included within JOC UPBs.  Also, the ability to perform multiple jobs for the same owner, in the same location provides significant economies.

15. It is normal to include a “Buy American Act” into our coefficient factor.  

Vendors may be exclusively responsible for compliance of the Buy American requirement for the certain states and for virtually all Federal Agencies. all other applicable states.  Separate coefficients for these “applicable locations” are generally not specifically allowed, nor are nonprepriced line items.

 

16. Do general contractors typically get subcontractors approved during the JOC pricing effort we are currently bidding?

Yes.  In fact it is considered “best practice”, if not mandatory to have subcontractors approved prior to award, and or shortly after award, and certainly prior to any use of subcontractor.

16 Things Every Contractor Should Know When Bidding a Job Order Contract is just an introduction to anyone interested in JOC.  Learn more…

 

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RFP for JOC Construction Services – ADDENDUM

REGION 19 EDUCATION SERVICE CENTER
PURCHASING DEPARTMENT
ALLIED STATES COOPERATIVE
6611 BOEING DRIVE
EL PASO, TX 79925
NOTICE OF ADDENDUM
Addendum No.1 on Request for Proposal # 17-7261 titled Job Order Contracting and Facilities Construction Services – State of Texas – ESC Region 19-Allied States Cooperative which was previously set to close August 3, 2017 at 2:00 PM MST requires the following changes and/or additional information:
1. The solicitation close date has been changed to August 30, 2017 at 2:00 PM MST.
2. The following language has been incorporated into the RFP.
a. COMPLIANCE CERTIFICATION WITH GOVERNMENT CODES 2252 & 2270: I, the vendor, am in compliance with all applicable provisions of Government Codes 2252 & 2270. This code requires vendors agree to NOT boycott Israel or do business with companies that boycott Israel. In addition vendor cannot do business with Iran, Sudan or a known terrorist organization. By submitting a response to this solicitation, vendor certifies compliance with this code.
b. Should this contract be utilized by a State of Texas entity, vendor agrees that any project relating to the construction, remodeling, or altering of a building, a structure, or infrastructure, including a road or highway, or who supply a material for such projects, to source iron or steel products used in such projects from the US. Proof must be provided to the state entity should it be requested. In addition, if the product listed above would increase the cost by more than twenty (20) percent, documentation must be provided to approve non-compliant product to be utilized.
3. Page 21, Paragraph 2 adds the following after sentence 3: “and/or as requested by either the Member or by Vendor/Member/4BT partnering. A corresponding Regular Working Hours and Non-Regular Working Hours coefficient shall be provided by the Vendor.”
4. Coefficients below 1.00 may be considered non-responsive.
5. A webinar training for the 4BT OpenJOC™ software will be held on August 8th at 10:00am MST. Registration is for vendors that have completed the Non-Disclosure Agreement only. Contact Becky Hernandez at rshernandez@esc19.net for registration information. Webinar is not mandatory but is highly recommended.
6. See attached list of current submitted questions and answers.
7. Vendors may not lobby any person regarding this contract including attempting to influence contract award or vendor selection. Violators will not be offered a contract.

BIDDING INSTRUCTIONS for JOC Construction Contractors

ALL VENDORS (JOC Construction Contractors) must register at www.alliedstatescooperative.com  and check off “JOC services” in the event of any addendums to the Solicitation.  Bidding information and documents are also available.

Structuring a Job Order Contract

Job Order Contracting - JOC - Integrated Project Delivery

Job Order Contracting JOC Integrated Project Delivery

Real Property Owners, Facilities Management, and Construction Contractors can all benefit from enhanced project productivity, quality, and satisfaction.    All are attainable with Job Order Contracting JOC Integrated Project Delivery.

While technical improvements in construction processes, new building materials and the use of technology to streamline project management are all important, LEAN collaborative construction delivery methods are the only solution PROVEN to deliver over 90% of project on-time, on-budget, and to the satisfaction of all stakeholders.

Job Order Contracting (for renovation, repair, and minor new construction) and Integrated Project Delivery (for major new construction, are the two most widely known and used forms of collaborative construction delivery.   Both require “a collaborative alliance of people, systems, business structures and practices into a process that harnesses the talents and insights of all participants to optimize project results, increase value to the owner, reduce waste, and maximize efficiency through all phases of design, fabrication, and construction.”

Job Order Contracting JOC Integrated Project Delivery align the interests, objectives and practices of all parties involved in a construction project. Participants work as one team, creating increased productivity and higher quality, saving time, minimizing disputes and litigation, and creating a more rewarding process for the entire team.

Job Order Contracting - JOC - Integrated Project Delivery

Job Order Contracting JOC Integrated Project Delivery REQUIRE  a high level of collaboration among all project stakeholders, from the early stages of planning/design through to project completion/handover, with the objective of achieving the highest level of efficiency through:

  • Combining the knowledge and expertise of all participants to maximise the value each participant provides to the project and to optimize the utilization of technical capabilities and support
  • Open communication to engender a “no-blame” attitude; where problems are identified, there is no move to establish liability, but instead a focus on having them resolved quickly
  • Timely sharing of up-to-date information to ensure all participants work on the same version of project documentation and reports
  • Financial transparency and trust to encourage participants to concentrate on project outcomes rather than on their own individual objectives
  • A common data environment (CDE), including a unit price book
  • Sharing risks and rewards where compensation is directly related to the value that each participant adds to the project, and incentives are tied to achieving overall project goals.
  • Collaborative cloud-based technology that support LEAN practices, enabling consistent, low-cost deployment
  • Owner competency and leadership

 

 

 

 

Strategic Considerations for a JOC Program

Strategic Considerations for a JOC Program

Strategic Considerations for a JOC Program include a thorough Evaluation of Objectives, Goals, and Appropriateness.

 

Development and review of Strategic Considerations for a JOC Program improve the value and overall success for all participants and stakeholders.

An owner’s review of the historical type and volume of construction work is the first step.  This will help to establish the level of need.

Strategic Considerations for a JOC Program

It’s generally considered that numerous and repetitive renovation, repair, maintenance, sustainability, and minor new construction (where allowed) with a minimum total annual volume of $2M is an initial threshold for setting up an in-house, owner-managed job order contract.

If an owner doesn’t meet this criteria, participation in a JOC Cooperative may be a viable altnerative to an owner established JOC Program.
Facility management/engineering should conduct a review of work that could be done under the support of the JOC program and develop an estimated annual volume.

Strategic Considerations for a JOC Program improve the value and overall success for all participants and stakeholders…

Work below a specified and appropriate threshold (for example $10,000) should not be included in the analysis as this level may not be cost effective and/or may be best accomplish by in-house staff or alternative methods.

Consider what work is being accomplished, how, by whom, and where. Also consider the urgency of tasks and other elements that would benefit from fast, high quality turn around.    JOC is particularly well suited for reducing an existing backlog of projects/tasks.

Consideration of future requirements is also important.
It’s beneficial to review historical and planned budgets  to assure long term, consistent execution of the JOC program, including any existing related contracts, etc., in order to avoid any potential conflicts or work disruption.
A review of owner staff personnel and management philosophy is critical in order to assure in-house capability to support a JOC Progam from a the technical (facility management/engineering), purchasing, and other  administrative areas.  In-house staff MUST be capable of reviewing line item detailed construction cost estimates provided by the awarded JOC contractors.  In certain JOC programs, in-house staff MUST also be capable of creating in-house and/or independent owner estimates for use in comparison to contractor estimates.

Determining the source for the JOC UPB is also extremely important.  The JOC UPB must be from an independent, objective, and quality source.  It should be locally researched and not a national average cost book (even the use of localization factors and a national average price book and introduce gross errors and JOC performance issues).  The UPB should include detailed line items with easy to understand descriptions in plain English using industry standard terms, with a minimum use of confusing acronyms.   The UPB should provide sufficient content to assure that a minimum of 90% of the work to be accomplished for a particular project is derived from the UPB in terms of value and a  maximum of 10% from non-prepriced (non-UPB) line items.  Factors such as ease of use, should also be considered.  For a example, most JOC Programs only require 30,000 to 60,000 line items.  An excessive number of line items…i.e. hundreds of thousands, can create confusion, cause errors, and negatively impact a JOC Program.

Technology is also important, and cloud computing can greatly aid in assuring collaboration and compliance.

Initial and ongoing training for all JOC Program participants is a requirement, as are regular JOC Audits.

Customized technical specifications are NOT REQUIRED for a JOC Program.   An owner’s existing technical specifications should be referenced and used for the JOC Program.  If technical specifications are not available, they may be purchased and adapted as needed.

Strategic Considerations for a JOC Program
A market of local contractors to assure a pool of qualified and interested companies is another important task. This should include consideration of any specific technical or service requirements associated with the JOC program.
Depending upon the types and locations of work, as well as service levels, there may be a need to have multiple JOC UPB’s and/or multiple coefficients. For example, work in several locations and/or associated varied building types, or security/access issues,  may require the use of various location factors or even separate JOC unit price books. (Separate coefficients may be require for work during normal hours, or after hours, and or for specific types of buildings and/or for secure areas.)
The structure, content, and values associated with indirect costs and profit for non-prepriced (NPP) work should be clearly noted.
A final report summarizing the results and conclusions of the strategy component of the JOC Program is helpful the final decision and approval processes.

 

Learn more…

Four BT, LLC
4BuildingTogether
www.4BT.us

Structuring a Job Order Contract

Structuring a Job Order Contract

Here are a few considerations for structuring a job order contract and implementation.
A JOC contract includes one or more coefficients, a JOC unit price book, UPB, (which is typically updated annually for pricing and potentially new line items, and for greatest value is locally researched), and has a duration ranging from one year to five years. The JOC contract is generally issued with a 12-month term followed by up to four option years.

Structuring a Job Order Contract
Monitoring of contractor, team, and overall JOC contract performance is necessary. This includes task order pricing, adherence to the UPB, and meeting any small, small disadvantaged, and women-owned business contracting or subcontracting requirements.
Any work awarded to the contractor beyond the minimum per the contact is solely determined by the owner.
Option years, if included, are generally considered separate contracts, and all minimum/maximum values noted and awarded.

Structuring a Job Order Contract for optimal performance and best value required implementation of best management practices, BMPs, and appropriate tools.

When structuring a job order contract, the maximum value should be specific for the total value of the contract, including all option years. The maximum value may not be exceeded. For example, if a JOC states that the maximum is $20M over 5 years with an estimate of $5M per year, $8M could be awarded the first year.
Current Davis-Bacon Wage Determination must be used for all Federal JOC Programs and may be required in other public sectors. (Note… all cost data providers do not research these rates with equal due diligence, Four BT, LLC is follows best practices guidelines in this regard.)
Basic steps involved in Structuring a Job Order Contract and associated implementation include;
1. Strategic evaluation of objectives, goals, and appropriateness
2. Development of acquisition/procurement approach
3. Facility management/engineering planning
4. JOC procurement/award process
5. Work execution and contract administration
6. Monitoring

JOC and JOC UPB Implementations such as those based upon Four BT, LLC cost data and similar sources, as well as best management practices (BMPs) are acceptable in terms of being independent, objectives, and providing best value.

What to learn more about Structuring a Job Order Contract?

LEAN Operations Maintenance Management

LEAN Operations Maintenance Management

METRICS for LEAN Operations Maintenance Management

LEAN Operations Maintenance Management improves use of existing resources and better supports organizational needs.

METRICS for LEAN Operations Maintenance Management

METRICS for LEAN Operations Maintenance Management provide ongoing performance measurement to support informed, information-based, decision making and help to maximize the use of available resources

From a generic perspective, an effective measurement system includes:

  • Clearly defined, actionable, and measurable goals.
  • Key performance indicators that monitor the overall administration of O & M program, as well as individual projects / task orders, and all associated workflows, deliverables, and outcomes.
  • Established baselines enabling measurement of historical and current progress.
  • A basis of timely, accurate, repeatable, and verifiable information based upon standardized terms, definitions, and data architectures
  • Applicable reporting and feedback systems to support continuous improvement of processes, practices, and outcomes.
  • Leading Indicators (forecast future trends inside and outside the organization) as well as lagging indicators
  • Objective and unbiased information (not subject to manipulation) that is normalized (can be benchmarked against other organizations, departments, locations)
  • Statistically reliable
  • Unobtrusive (not disruptive of work or trust)
  • Appropriate (measures the right things)
  • Quantifiable
  • Verifiable/auditable.

The importance of performance measurement cannot be understated.  It is a fundamental element of any successful O & M program.

Specific O & M performance indicators (sample listing only)

  • Annualized Total Cost of Ownership (TCO) per building per gross area = Rate per square foot
  • Annualized TCO per building/Current replacement value = Percent of Current Replacement Value (CRV)
  • Annualized TCO per building/Net assignable square feet = Cost rate per net assignable square feet per building
  • Annualized TCO per building/Non-assignable square feet = Cost rate per non-assignable square feet per building
  • Annualized TCO per building/Building Interior square feet = Cost rate per interior square foot per building
  • Churn Rate
  • Utilization Rate
  • AI (Adaptation Index) or PI (Programmatic Index) = PR (Program Requirements)/CRV (Current Replacement Value)
  • Uptime or Downtime = Defined in percent, as amount of time asset is suitable for the program(s) served.
  • Facility Operating Gross Square Foot (GSF) Index (SAM Performance Indicator: APPA 2003)
  • Custodial Costs per square foot
  • Grounds Keeping Costs per square foot
  • Energy Usage is expressed as a ratio of British Thermal Units (BTUs) for each Gross Square Foot (GSF) of facility, group of facilities, site or portfolio = British Thermal Units BTUs /  Gross Area GSF
  • Utility Costs per square foot
  • Waste Removal Costs per square foot
  • Facility Operating Current Replacement Value (CRV) Index = Facility Operating CRV Index = Annual Facility Maintenance Operating Expenditures ($)/Current Replacement Value ($) (SAM Performance Indicator: APPA 2003)
  • Facility Operating GSF Index = Annual Facility Maintenance Operating Expenditures ($)/Gross Area (GSF)
  • Planned/Preventive Maintenance Costs per square foot
  • Emergency Maintenance Costs as a percentage of Annual Operations Expenditures.
  • Unscheduled/Unplanned Maintenance Costs as a percentage of Annual Operations Expenditures.
  • Repair costs (man hours and materials) as a percentage of Annual Operations Expenditures
  • FCI (Facility Condition Index) = DM (Deferred Maintenance) + CR (Capital Renewal)/CRV (Current Replacement Value)
  • Recapitalization Rate, Reinvestment Rate
  • Deferred Maintenance Backlog
  • Facilities Deterioration Rate
  • AI (Adaptive Index) or PI (Programmatic Index) = PR (Program Requirements)/CRV (Current Replacement Value)
  • FQI (Facility Quality Index) or Quality Index or Index = FCI (Facility Condition Index)+ AI (Adaptive Index)
  • Capital Renewal Index = Annual Capital Renewal and Renovation/Modernization Expenditure ($)/Current Replacement Value ($)Emerging Issues

LEARN MORE about METRICS for LEAN Operations Maintenance Management …

METRICS for LEAN Operations Maintenance Management

Tools for LEAN Operations Maintenance Management

O & M Checklists

Locally Researched OPEN & DETAILED Unit Line Item Costs

Training

LEAN Process

JOC, Job Order Contracting, is a proven LEAN Construction Delivery Management Method capable of delivering… financial transparency, collaboration, and 90%+ of projects on-time, on-budget, and to everyone’s satisfaction!   Learn more at www.4BT.com

 

 

Construction Collaboration Requires Common Terms, Uncategorized

Construction Collaboration Requires Common Terms

Efficiency is driven by collaboration and construction collaboration requires common terms,  as well as standardized, locally researched cost cost data, and LEAN delivery methods.

 

 

activity – task or tasks that contribute to completion of  deliverables (products and/or services)
agreement: a fully executed (signed by appropriate parties) between the demand organization and the provider of services and products that clearly describes requirements in sufficient detail, including conditions, costs, resources required, desired outputs, and associated workflows.
asset management: coordinated activity established by an organization to monitor, control, and  realize value from physical items.
asset: a physical item that has potential or actual value to an organization.  Examples: buildings, roadways, dams, bridges, utilities, mass transit, airports, equipment.
audit: systematic, independent documented, and verifiable process for obtaining evidence and evaluating it objectively to determine the extent to which the a product or service is providing intended results and/or meeting requirements.
benchmark: reference point or metric against which a process, product, or service can be measured.
benchmarking: process of comparing processes, performance, products, quality against practices/products of the a similar nature, under the same circumstances and with similar measures.
best practice; documented process or product developed by the user community, consisting of suppliers and end users working together for the purpose of establishing industry guidelines
built environment: buildings, land/landscaped areas, infrastructure and other construction works.
business case: document which summarizes the scope, benefits, costs and risks, of a proposed solution to a business/organizational.
business continuity: capability of the organization  to continue delivery of products/services at a acceptable predefined levels following disruptive incident
competence / competency – ability to apply knowledge, skills, and tools to achieve intended results in a  targeted area(s).  Examples specific to facility management include:  construction cost estimating, maintenance management, capital planning, space planning, project delivery, etc.
conformity:  documented/confirmed fulfillment of a requirement.
continual improvement: recurring activity to enhance performance, and a key aspect of LEAN.
corrective action: action/service to eliminate the cause of a nonconformity and to mitigate recurrence.
deliverable: measurable and verifiable outcome, result or item to be produced within a specific time frame to complete a project or part of a project
demand organization: an entity which has a need and the authority to incur costs to have requirements met via services and/or products.
documented information; information required to be controlled and maintained by an organization and the medium on which it is contained.
due diligence: compilation, comprehensive appraisal and validation of information of an organization required for assessing accuracy, commercial integrity, financial stability and functional competence, and integrity at the appropriate stage of the agreement sourcing process.
effectiveness: extent to which planned activities are realized and planned results achieved
emergency preparedness: capability to take actions that will effectively mitigate the consequences of an unplanned event than negatively impacts and organization.
end user: person or organization  which uses products and/or services from a supplier
entity: actual or abstract thing that exists, did exist, or might exist, including associations among these things
facility management, facilities management, FM: organizational function which integrates people, place,processes, technologies, competencies, business domains for the purpose of improving outcomes, including quality, service availability, productivity, comforts, safety, satisfaction, and return on investment in support of the organizational mission.
facility process:  an integrated workflow developed a and/or managed by a facility management.
facility service: support provision to the primary activities of an organization delivered by an internal or external providers.
infrastructure system:  facilities, physical equipment, built structures, and associates services and products and processes  needed for the operation of an organization.
in-source: an arrangement to move external service/product provisions to internal resources/products.
internal service provision, in-house service provision: delivery and management of by staff employed by the demand organization
key performance indicator, KPI: measure that provides essential information  a product or service is meeting predefined defined requirements.
life-cycle cost: total costs (in present-value terms) expected to be spent on an asset  during its operational existence, inclusive of demolition/recycling.
management system; set of interrelated or interacting elements of an organization  to establish policies and objectives and processes to achieve those objectives.
measurement: process  to determine a value
method statement: a document in which the service provider translates the demand  set out in the specification  and service level agreement into a delivery plan with resources, allocations and methodologies.
mobilization: phase to establish and implement all resources, tools, materials, information, information  and procedures prior to taking full responsibility for the facilities services and or construction services to be delivered as specified in the agreement.
monitoring: determining the status of a system, process, product, or service/activity.
need/requirement:  a stated or implied expectation, specific (stated, for example in documented/written or abstract, from the demand organization which is essential to enable the achievement of the core purpose and key objectives and goals.
nonconformity: non-fulfillment of a requirement.
objective: result to be achieved
open cost: transparent exchange of relevant information cost information between the facility management/construction/AE service provider and the demand organization
operational level; level at which activities are performed in a routine way in support of the organization’s unctions
organization: person or group of people that has its own functions with responsibilities, authorities and relationships to achieve its objectives and goals (examples: sole-proprietor, corporation, firm, enterprise, authority, partnership, charity or institution, or part or combination thereof, whether incorporated or not, public or private).
performance: a measurable result of an activity/product/service.
policy: intentions and direction of an organization,  as formally expressed by its senior management.
primary activities: actions that constitute the distinctive and indispensable  competencies of an organization in its value chain
process: set of interrelated or interacting activities which transforms inputs into outputs
quality: degree to which a set of inherent characteristics of an object fulfills organizational requirements.
real estate / real property:   land and/or buildings and/or physical structures.
risk: effect of uncertainty
service level agreement, SLA: document which has been agreed between the demand organization  and a service/product provider that defines performance, metrics,  and conditions of associated with the service/product.
service level: complete description of requirements of a service, product, technology process or systems with their defined characteristics and defined metrics that quantitatively define performance.
service provider organization: a provider that delivers one or more facility services hat is internal or external to the demand organization
service: time-perishable, intangible activity performed for an entity.
specification(s): detailed description of the required performance,  and/or technical requirements for services and/or products and processes  set out by the demand organization  to make clear to the service provider the requirements to be fulfilled.
strategic level; level at which an organization  defines its objectives and policies  and plans and assesses how to achieve its goals.
support service: an activity delivered in support of a core business/service of the organization.
sustainability; state of the global system, including environmental, social and economic aspects, in which the needs of the present are met without compromising the ability of future generations to meet their own needs
system – contained set of interrelated processes, products, technologies and/or procedures.
tactical level; level at which an organization plans and manages the specific mechanisms and resources for operational delivery of  products/services.
vision: description of what an organization  wants to be and how it wants to be seen by stakeholders.
work station: location containing furniture and supporting equipment (telephony, IT and power connections), specifically designed or suitable for work-related activities and is suitable for current use.
workplace: physical location where work is performed.
zero-based budget; methodology which uses detailed asset lists and engineering and performance standards to assess resource, and market unit costs to create a total budget without reference to previous expenditure levels.

 

Construction Collaboration Requires Common Terms to drive productivity, satisfaction, quality, and overall better outcomes.

Job Order Contract Compliance

 

 

Minor New Construction

LEAN Construction for Facilities Renovation, Repair, Minor New Construction

LEAN Construction for Facilities Renovation, Repair, Minor New Construction

LEAN Construction for Facilities Renovation, Repair, Minor New Construction can delivery 90%+ of construction projects on-time, on-budget, and to the satisfaction of all parties involved.

This is possible if the processes and tools used are independent and objective,  and LEAN best management practices (BMPs) are adopted and maintained.

The two most widely known and used forms of LEAN construction are Integrated Project Delivery, IPD, and Job Order Contracting, JOC.   IPD is used primarily for major new construction due to implementation costs, while JOC is used for faciliites renovation, repair, and minor new construction.

Benefits of JOC:

  • Reduced procurement costs and time
  • Shorter overall project delivery times
  • Faster response times
  • Improve participant satisfaction
  • Long term, mutually beneficial relationships among contractors and real property owners / facilities management
  • Financial transparency
  • Few change orders
  • Risk reduction
  • Virtual elimination of legal disputes
  • Focus upon outcomes
  • Value-based procurement
  • Reduced overhead for both owner and contractor
  • Performance-based reward system

JOC Tools

  • Independent, objective, locally research JOC unit price book (preferable to national average price books and adjustment factors)

LEAN Construction for Facilities Renovation, Repair, Minor New Construction

  • Ongoing training
  • Enabling software
  • JOC program audits
  • Independent owner estimates
  • Owner’s Technical Specifications (NOTE:  Special/custom technical specifications for JOC should NOT be used.  Owner should simply use their existing specifications.  Should an owner not have construction specifications, they are readily available from at least two major and reputable sources – Arcon/Masterspec, BDS/SpecLink).

LEAN Construction for Facilities Renovation, Repair, Minor New Construction may not be for everyone…

Barriers to Success

  • Owners without appropriate leadership or competence
  • Inability of owner or contractor to work collaboratively (Note:  The primary issue with owners is typically competence, while some contracts may be unwilling to be transparent with costs, work methods, etc.
  • Using JOC as a method to bypass traditional procurement versus a best value delivery system
  • Excessive reliance upon JOC consultants (IMPORTANT NOTE: A JOC consultant should NEVER be paid a fee based upon JOC construction volume and also be in a position to approve JOC projects/task orders.)
  • Existence of so-call open book JOC and competitive JOCs.   An open book JOC is NOT a JOC by definition as costs are derived from subcontractors in a typical design-bid-build fashion and are not fully visible, defensible and transparent.  Competitive JOCs are contrary to the philosophy of JOC as they are cost-based not value-based.

JOC is a proven construction delivery method, with a 30+ year successful track record.  Learn more today!

Typical JOC Workflow

 

 

Executing a Job Order Contract

 

 

LEAN Construction for Facilities Renovation, Repair, Minor New Construction

 

LEAN Construction for Facilities Renovation, Repair, Minor New Construction

Learn more about  LEAN Construction for Facilities Renovation, Repair, Minor New Construction …

LEAN Construction Improves Success

LEAN Construction Improves Success

LEAN Construction Improves Success

LEAN construction delivers over 90% of projects on-time, on-budget, and to the satisfaction of all parties.   The most widely used types are Integrated Project Delivery, IPD for major new construction, and Job Order Contracting, JOC, for renovation, repair, and minor new construction.

LEAN Construction Improves Success
Lean construction requires a balance of strategic, tactical and operational considerations. Within each category, smaller, often day-to-day elements support the process.

In both cases, Owners must be capable and demonstrate leadership and outsourcing management is NOT a viable option.

To succeed with lean construction, many organizations must change their daily
policies and practices—a challenging task that requires ongoing attention.

All participants should make a long-term commitment to continuous improvement.

Lean construction is most successful when organizations implement it at a gradual pace and with realistic expectations.

Benefits don’t occur immediately or even during the first year.
Failures will occur. Learn from them. Accept input from all participants. Adapt
processes and requirements to each organization and its capabilities. Build a
repository of best practices, knowledge and actionable information.
Keep communications open, keep learning and keep improving

Uncategorized

Job Order Contract Compliance

Public sector facilities managers have a fiduciary responsibility is to secure maximum value for funding allocated for building and infrastructure repair, renovation, maintenance, sustainability, and construction.

Job Order Contract Compliance

Order Contracting can provide significant gains in productivity and improve quality, some government agencies.  However, some public sector organizations are using JOC to simply bypass traditional procurement methods, or are ignoring EDGAR requirements.

The result is that benefits anticipated benefits to be gained by JOC have not materialized in these instances.  In fact, excessive administrative costs, poor financial visibility and transparency, and increased potential for fraud have surfaced for improperly designed and managed JOC Programs.

For JOC to be successful,  real property owners must be fully trained in JOC fundamentals, inclusive of LEAN principles,  actively participate in JOC programs, and independently audit JOC projects and programs.

The exclusive use of JOC consultant to “manage” a JOC program, be paid a percentage of JOC construction volume, and be involved in approving JOC projects, is contrary to the core aspects JOC philosophy.

Governments can adopt various strategies to optimize resources and renovation, repair, and minor new construction projects.   A JOC framework can certainly aid in that goal, if the process used is supported by independent, objective, and best value tools and best management practices.

Learn more…

Move Beyond Spreadsheets for Job Order Contracting

Move Beyond Spreadsheets for Job Order Contracting

Move Beyond Spreadsheets for Job Order Contracting…. When it comes to collaborative and efficient Job Order Contracting for real property portfolios, facilities professionals learn that spreadsheets lack key capabilities…

  • Built-in cost locally researched line item cost data complete with line item modifiers, demolition line items, and organized/maintained in CSI Masterformat.
  • Ability to create, store, and reuse custom construction cost detailed line items
  • Objective project prioritization
  • Centralized data storage
  • An ability to scale
  • Real-time collaboration
  • Controlled data access
  • Everyone working on current versions/information

Move Beyond Spreadsheets for Job Order Contracting

Please contact us learn more about the limits of spreadsheets and how you can overcome them to improve your Job Order Contract!

Move Beyond Spreadsheets for Job Order Contracting to improve outcomes.. productivity, transparency, collaboration, quality, and satisfaction.

Free Trial to Qualified Organizations!

Facilities Management Key Performance Indicators

Facilities Management Key Performance Indicators

List of Facilities Management Key Performance Indicators / Metrics:

(1) Thermal comfort (e.g. temperature, mean radiant temperature, humidity and air speed)

(2) Visual comfort (e.g. illuminance and glare)

(3) Acoustic comfort (e.g. reverberation)

(4) Indoor air quality (e.g. total volatile organic compound, CO2 level, concentration of radon)

(5) Percentage users dissatisfied

(6) Number of users’ complaints per year Financial

(7) Percentage cost of personnel

(8) Percentage cost of subcontractors

(9) Percentage of contractor cost

(10) Actual costs within budgeted costs

(11) Direct maintenance cost

(12) Breakdown severity

(13) Equipment replacement value (ERV)

(14) Maintenance stock turnover

(15) Percentage of maintenance material cost

(16) Percentage of corrective maintenance cost

(17) Percentage of preventive maintenance cost

(18) Percentage of condition based maintenance cost

(19) O&M cost per building area

(20) O&M cost per capacity of installation

(21) Cost of equipment added or replaced

(22) Energy expenditure per building area

(23) Energy expenditure per person

(24) Total safety and security expenditure

(25) Security expenditure per building area

(26) Security expenditure per person

(27) Building income per building area

(28) Total rentable value of the building Task and equipment related

(29) Work request response rate

(30) Scheduling intensity

(31) Manpower utilization rate

(32) Manpower efficiency

(33) Manpower utilization index

(34) Preventive maintenance ratio (PMR)

(35) Percentage of reactive (corrective) work

(36) Percentage of proactive (preventive) work

(37) Percentage of condition based maintenance work

(38) Percentage of improvement work

(39) Number of manhours per capacity of installation

(40) Number completed work orders per staff

(41) Area maintained per maintenance staff

(42) Quality of scheduling

(43) Schedule realization rate

(44) Schedule compliance

(45) Work order turnover

(46) Backlog size

(47) Urgent repair request index (URI)

(48) Corrective maintenance time

(49) Preventive maintenance time

(50) Response time for maintenance

(51) Percentage compliance with required response time

(52) Number of maintenance induced interruptions

(53) Failure/breakdown frequency (number of equipment faults per month or per year)

(54) Mean time between failures (MTBF)

(55) Mean time to repair (MTTR)

(56) Availability

(57) Efficiency of facilities

(58) Gross floor area under safety and security patrol Environmental

(59) Energy use index (EUI)

(60) Energy consumption per person

(61) Greenhouse gas emission per building area

(62) Energy audit

Facilities Management Key Performance Indicators

(Sources: British Standards Institution, 2007; Building Services Research and Information Association, 2011; Campbell, 1995; Chan et al., 2001; Electrical & Mechanical Services Department, 2007; Electrical & Mechanical Services Department and Environmental Protection Department, 2010; Hinks and McNay, 1999; Ho et al., 2000; Hong Kong Quality Assurance Agency, 2012; Lai and Yik, 2006; Lavy et al., 2010; Leung et al., 2005; Lukzkendorf and Lorenz, 2006; Muchiri et al, 2011; Parida and Chattopadhyay, 2007; Tsang et al., 1999; Vesela and Michael, 2001). Physical (impact on customer satisfaction)

Learn more…

Collaborative Facilities Management

Collaborative Facilities Management

Collaborative facilities management can, and must…

  1. foster a better understanding of how the built environment influences human behavior, health and organizational productivity
  2. promote the strategic and operational value of LEAN, collaborative facilities management practices in meeting emerging environmental and economic challenges
  3. forge closer links and collaboration between the financial, technical, sociological and operational aspects of facilities management through an integrated resource management and service delivery approach
  4. disseminate proven business process, tools, and research specific to best practice facilities management to a wider audience, and
  5. support a forum for the exchange of know-how and best practice in education, research and industry that addresses physical and functional aspects of the built environment.

Collaborative Facilities Management

Learn more…

 

Facilities Management Operations & Management

Facilities Operations & Maintenance Management

Facilities Operations & Maintenance Management considerations span several areas.

A partial list is shown below:

  • Organizational Strategy, Goals, Required Outcomes
  • Budgeting/Capital Planning
  • LEAN Business Models and Methods
  • Multiple Competencies, Business Processes, and Activities
  • Supporting Technologies and Tools
  • Education, Training, and Support Services
  • Metrics/Key Performance Indicators (KPIs)
  • Common Data Environment (CDE)

Facilities Operations & Maintenance Management

Organizational Strategy, Goals, Required Outcomes

The full support of an organization and associated service providers is required in order to deliver provide a level of Facilities Operations & Maintenance Management in concert with their mission and goals.

A comprehensive written facilities management operations and maintenance manual and/or execution guide is a fundamental requirement.  It should be written with LEAN process fundamentals in mind that focus upon BEST VALUE outline measurable desired OUTCOMES.

Facilities Operations & Maintenance Management requires and appropriate and ongoing consideration of PEOPLE, PROCESS, INFORMATION, and TECHNOLOGY is needed during the development of the Operations Manual / Execution Plan.

Facilities Operations & Maintenance Management

 

 

 

Budgeting/Capital Planning

Post construction costs average 80% of total facilities investment thus emphasis upon O &M budgeting and capital planning provides major benefits.

 

 

Most organizations are historically first-cost driven, a bias that negatively affects overall return on investment.   Appropriate decision-support tools and services (technology, data, and consulting/education/support) must be included to enable consideration of life-cycle costs and financial resource prioritization.

Determining the priority of capital reinvestment into facilities based upon a life-cycle perspective has proven to provide the highest likelihood of positive overall results.   Many organizations spend up to 80% of operations and maintenance funds on emergency, unplanned projects and/or projects that provide limited true value to an organization.   With proper planning and management processes in place, this ration can be reversed.  This beneficial “shift” in resource allocation however is impossible without current actionable information, appropriate decision-support tools and appropriate strategies among all participants and stakeholders.

LEAN Business Models and Methods

The productivity, quality, value and satisfaction associated with any facility renovation, repair, maintenance, sustainability, or new construction project are directly linked to the processes employed.   Promoting awareness and education of LEAN construction practices and associated construction delivery methods among Owners, Contractors, Engineers, Architects, and Oversight Groups is key to efficient management of the built environment.

Within the LEAN Construction / Collaborative Construction Delivery process framework, emphasis is upon BEST VALUE OUTCOMES as the can be achieved through the leveraging of expertise of all project participants and stakeholders from initial concept and throughout the entire life-cycle of the built structures.

 

A common and minimum body of knowledge defined as a standard of excellence is key to reversing the current norm of waste, and other negative economic and environmental issues attributed to the Architecture, Engineering, Construction, Operations, Owner (AECOO) sector.

 

LEAN, BEST VALUE CONSTRUCTION DELIVERY METHODS[1] have been available for decades, but only practiced by fractional percentage of Real Property Owners and service providers.   The reason for limited adoption of these methods, capable of enabling more projects to be completed on-time and on-budget, and with higher levels of quality and satisfaction, is simple.  It’s a sector-wide lack of awareness and education.

The most widely used collaborative construction delivery methods are JOB ORDER CONTRACTING, JOC for renovation, repair, and maintenance activities and INTEGRATED PROJECT DELIVERY, IPD for major new construction.

As JOC is a form of IPD, directly applicable to operations and maintenance, a typical workflow for job order contract project is shown below.

LEAN Construction methods share has the following characteristics;

  • Performance-based reward based upon achievement of specified goals.
  • Defined work flows, data formats, and technologies which enable experiences with the principles and techniques of state of work definition, cost estimating, project management, and performance analysis to be reported, discussed, documented, and reused.
  • Fostering and requirements for ongoing training
  • Systems to maintain standards of proficiency and performance
  • Required cooperation among internal and external project participants with common or related purposes, in furtherance of project success
  • Clear and transparent mechanisms for all participants to collectively discuss and comment on subjects of common interest
  • Common and shared standards for terminology, definitions, conduct and application of all procedures and policies
  • Shared risk/reward
  • Mutual respect
  • Continuous improvement

Mulitiple Competencies, Business Processes, and Activities

Facilities O & M management spans multiple competencies (core skills), business process (asset management practices/industries), and activities.   A partial listing is shown below with links to additional information.

Facilities Operations & Maintenance Management

Competencies/activities

  • Strategic planning
  • Cost estimating
  • Procurement/bidding
  • Construction
  • Space planning
  • Operations
  • Planned, unplanned, user requested maintenance
  • Repairs, improvements/upgrades, retrofits, replacements
  • Programming

 

Business Processes

  • Capital planning and management
  • Construction project delivery methodology
  • Space management
  • Operations and maintenance
  • Inventory and maintenance disposition management

Supporting Technologies and Tools

Multiple technologies and tools can be used to lower the cost of establishing and deploying facilities management operations and management best practices consistently.   A partial listing is shown below, with appropriate links to additional information where available.

Technologies

Application Software

Tools

  • Construction code databases
  • Construction cost databases
  • Data formats: PDF, Graphics (2D, 3D, PNG, JPG, …)
  • Industry specific glossaries
  • Industry Standards (ISO, NIST)
  • O & M Execution Guide
  • O & M Manuals
  • Standardized data architectures (Cobie, Masterformat, Uniformat, Omniclass)
  • Technical construction specification

Education, Training, and Support Services

Enhancing the understanding and appreciation specifically within the below areas will aid in improving productivity, quality, and satisfaction across the AECOO[2] sector, thereby bringing facilities management operations and maintenance to a higher level of performance:

  • Collaborative methods
  • Leadership without excessive management
  • Linking global oversight with local knowledge and execution
  • Life-cycle / total cost of ownership management techniques

Training and education must be required and ongoing for all stakeholders.

Metrics/Key Performance Indicators (KPIs)

Ongoing performance measurement supports informed, information-based, decision making and improve resource allocation targeting facilities operations and maintenance.

From a generic perspective, an effective measurement system includes:

  • Clearly defined, actionable, and measurable goals.
  • Key performance indicators that monitor the overall administration of O & M program, as well as individual projects / task orders, and all associated workflows, deliverables, and outcomes.
  • Established baselines enabling measurement of historical and current progress.
  • A basis of timely, accurate, repeatable, and verifiable information based upon standardized terms, definitions, and data architectures
  • Applicable reporting and feedback systems to support continuous improvement of processes, practices, and outcomes.
  • Leading Indicators (forecast future trends inside and outside the organization) as well as lagging indicators
  • Objective and unbiased information (not subject to manipulation) that is normalized (can be benchmarked against other organizations, departments, locations)
  • Statistically reliable
  • Unobtrusive (not disruptive of work or trust)
  • Appropriate (measures the right things)
  • Quantifiable
  • Verifiable/auditable.

The importance of performance measurement cannot be understated.  It is a fundamental element of LEAN management practices.

Sample O & M performance indicators:

  • Annualized Total Cost of Ownership (TCO) per building per gross area = Rate per square foot
  • Annualized TCO per building/Current replacement value = Percent of Current Replacement Value (CRV)
  • Annualized TCO per building/Net assignable square feet = Cost rate per net assignable square feet per building
  • Annualized TCO per building/Non-assignable square feet = Cost rate per non-assignable square feet per building
  • Annualized TCO per building/Building Interior square feet = Cost rate per interior square foot per building
  • Churn Rate
  • Utilization Rate
  • AI (Adaptation Index) or PI (Programmatic Index) = PR (Program Requirements)/CRV (Current Replacement Value)
  • Uptime or Downtime = Defined in percent, as amount of time asset is suitable for the program(s) served.
  • Facility Operating Gross Square Foot (GSF) Index (SAM Performance Indicator: APPA 2003)
  • Custodial Costs per square foot
  • Grounds Keeping Costs per square foot
  • Energy Usage is expressed as a ratio of British Thermal Units (BTUs) for each Gross Square Foot (GSF) of facility, group of facilities, site or portfolio = British Thermal Units BTUs /  Gross Area GSF
  • Utility Costs per square foot
  • Waste Removal Costs per square foot
  • Facility Operating Current Replacement Value (CRV) Index = Facility Operating CRV Index = Annual Facility Maintenance Operating Expenditures ($)/Current Replacement Value ($) (SAM Performance Indicator: APPA 2003)
  • Facility Operating GSF Index = Annual Facility Maintenance Operating Expenditures ($)/Gross Area (GSF)
  • Planned/Preventive Maintenance Costs per square foot
  • Emergency Maintenance Costs as a percentage of Annual Operations Expenditures.
  • Unscheduled/Unplanned Maintenance Costs as a percentage of Annual Operations Expenditures.
  • Repair costs (man hours and materials) as a percentage of Annual Operations Expenditures
  • FCI (Facility Condition Index) = DM (Deferred Maintenance) + CR (Capital Renewal)/CRV (Current Replacement Value)
  • Recapitalization Rate, Reinvestment Rate
  • Deferred Maintenance Backlog
  • Facilities Deterioration Rate
  • AI (Adaptive Index) or PI (Programmatic Index) = PR (Program Requirements)/CRV (Current Replacement Value)
  • FQI (Facility Quality Index) or Quality Index or Index = FCI (Facility Condition Index)+ AI (Adaptive Index)
  • Capital Renewal Index = Annual Capital Renewal and Renovation/Modernization Expenditure ($)/Current Replacement Value ($)Emerging Issues

[1] The construction project delivery method, or project delivery method is the process established to define, cost, procure, execute, and manage ) O & M and other construction/service tasks.  As there are numerous and disparate operations and maintenance projects facing real property owners and their service providers, is it critical that they be accomplished in a timely and cost effective manner.

 

[2] AECOO-Architecture, Engineering, Construction, Operations, Owner

Open Data Job Order Contracting

Open Data Job Order Contracting

Open Data Job Order Contracting  should be a requirement for any JOC Program.

Open Data Job Order Contracting

WHAT….

Open Data for JOC means…

  1. Independent sourcing…. to assure objectivity
  2. Locally researched…  to assure value
  3. Transparency…  ability to see all components – labor, material, and equipment for each JOC line item task.
  4. Full use…   right for owners/contractors to create custom line items from parent line items and/or to expand upon cost data set size and value with appropriate approvals processes in place and followed.

Note:  A national average cost data book is note considered open data from a JOC perspective.

WHY…

  1. Compliance…  cost data sourcing must be verifiable and assured to have no link to construction contractors or any other party that would benefit improperly.
  2. Value…  cost data must reflect tasks and costs that are commonly incurred in the specific locations that work for the JOC tasks is performed.
  3. Retained knowledge…  Full detailed transparency and the ability to create new information assure that learnings from all JOC participants are retained.
  4. Uniform language among staff and service providers
  5. Shared vision
  6. Informed decisions
  7. Managed risk
  8. Improved efficiency

Learn more about the OpenCost Approach…

open data job order contracting
LEAN Collaborative Construction Practices Construction Cost Estimating

Improving Job Order Contracts, Uncategorized

Improving Job Order Contracts

Improving Job Order Contracts to maximize renovation, repair, and construction productivity is easy if you have the right approach, tools, and training.

Improving Job Order Contracts can help to assure that over 90% of renovation, repair, and minor new construction projects are completed on-time, on-budget, and to everyone’s satisfaction.   This is only possible, however, if the Job Order Contracts are designed, implemented, and managed properly.

Here are the some major issues to take a look at when Improving Job Order Contracts..

1- LEAN Construction Delivery Approach

LEAN Construction Delivery can significantly improve quality, productivity, and overall levels of satisfaction.   That said, some JOC Programs, especially at the County, State, and Local Government levels have bee set up simple as a means to bypass traditional procurement versus truly establish LEAN collaborative construction delivery processes.

Real property owners must be directly providing leadership and participate in day-to-day functions, and not rely upon a JOC Consultant to provide a management role.

Improving Job Order Contracts

2- Cloud Based Collaboration Tools

Cloud technology best enables internal and external teams to be connected, and have access to current and actional information from anywhere, anytime.

LEAN collaborative project delivery models need to work in a shared space  so that decisions, updates and communications are simultaneously and instantly applied, flagged, and tracked.

Improving Job Order Contracts

3 – Carbon Footprint Reduction

According to the International Energy Agency, almost 30% of worldwide energy is attributable to buildings (40% of total in energy in the United States), and will increase 1.5% year through 2040 to almost 50%. The United States is largest user of energy for commercial use.  Building energy use, and associated renovation, repair, and sustainability is therefore the top priority.  Job order contracting can assist all forms of organizations to expedite the numerous projects to meet sustainability goals.

Improving Job Order Contracts

 

3 – Financial Visibility & Transparency

Locally researched detailed unit price cost data is key to improved financial visibility and transparency.   National average unit price commercial construction cost books have their purpose, however, for JOC, you need more.    Check our OpenCost Advantage!

 

Improving Job Order Contracts
Improving Job Order Contracts – Learn More…

 

Job Order Contracting in the Cloud

Job Order Contracting in the Cloud

Job Order Contacting in the Cloud helps you to deliver more renovation, repair, and minor new construction projects on-time, on-budget, and to everyone’s satisfaction.

Job Order Contracting in the Cloud is simply better, faster, and more secure.

Sure, you can continue to use spreadsheets or national average cost databases and their associated little cost calculators, or you can use powerful, locally research construction cost data developed by teams with years of JOC expertise... AND…. get easy-to-use modern cloud technology!!!

Better. Faster. Stronger. Four BT’s (4BT) cloud-based JOC management software empowers Owners, Contractors, and Subcontractors new, innovative ways.

The demand for faster, more accurate and objective JOB ORDER CONTRACTING systems led to the creation of 4BT-CE cloud-based JOC software.  

Please review the following information, and give us a cal to better understand the true value of these tools  and how they can benefit our organization.

A few facts about the Cloud-based Job Order Contract Management

  • Cloud-Based JOC Software Improves Security – Traditional software can be more vulnerable to cyberattacks and data loss. Advanced cybersecurity measures reduce the risk of cyberattacks, and continuous penetration testing ensures maximum cybersecurity.   Data storage on a remote server with redundancy promotes information integrity and durability.
  •  Cloud-Based JOC  Management Software Reduces Issues During Implementation – Startup costs and time requirements are significantly lower.
  • Cloud-Based JOC Software Promotes Collaboration –  Collaboration is the cornerstone of improved productivity, quality, and timely service delivery. 4BT-CE enables real-time collaboration using current information.   Everyone is literally on the same

Why Wait?  Begin Putting It All Together Today!

The goal of facilities management  is to provide the greatest return on investment for dollars spent in delivering physical infrastructure in support of your organization’s mission.    Providing internal and external managers and service providers the information they need at any given time is CRITICAL to this goal.

4BT tools help make this possible, connecting all JOC participants and stakeholders with current actionable information and tools.

Job Order Contracting in the Cloud

Job Order Contracting in the Cloud

Job Order Contracting in the Cloud

JOB ORDER CONTRACT PROCUREMENT STRATEGY

Job Order Contract Procurement Strategy

JOB ORDER CONTRACT PROCUREMENT STRATEGY

A JOB ORDER CONTRACT PROCUREMENT STRATEGY spans process of soliciting/marketing, contractor selection, and award of a Job Order Contract involves technical and business strategies.
The facility management authority and procurement/contracting/purchasing (purchasing) meet and discuss items such as timing (JOC start and end dates), available funding, access to local contractors, as well as any and all additional resources needed to achieve quality on-time and on-budget performance.

Other authorities in the organization must participate in its development to ensure that all objectives and interests are met (examples: legal, quality assurance, small business, building users, planners).
The JOB ORDER CONTRACT PROCUREMENT STRATEGY and approach should be tailored to JOC construction services required.
The acquisition starts with the needs and feasibility study and is complete once the decision has been made to implement a JOC contract. An acquisition timeline should be developed.

JOB ORDER CONTRACT PROCUREMENT STRATEGY TIMING / Months

JOB ORDER CONTRACT PROCUREMENT STRATEGY

JOB ORDER CONTRACT PROCUREMENT STRATEGY is an ongoing activity, the plan is continuously updated.
Components of an acquisition plan within the overall JOB ORDER CONTRACT PROCUREMENT STRATEGY;
 Statement of Need. Results of the need analyzed.
 Surrounding Conditions. All significant conditions, such as requirements for compatibility with existing laws, regulations, contracts.
 Capabilities Being Acquired. Capabilities and performance goals being sought – on-demand services, quality, and expertise.
 Performance Period. Initial proposed award date, term, and option years as applicable.
 Plan of Action Sources. Research market for skilled and otherwise qualified contractors and subcontractors.
 Source Selection Procedures. Method(s) for rating and selecting awardee(s).
 Contracting Considerations. Discuss features of the JOC contract and any special clauses and/or requirements.
 Multiple Awards. It the JOC involves multiple contractors/awardees, it must be determined how selection per task order will be made.
 Budgeting and Funding. Assure process is in place for funding the JOC throughout its term and appropriate provisions are in place should the JOC be terminated.
 Management Information System / Technology / Software Requirements. Discuss cost estimating or other software that is to be used as well as formats for reporting.
 Quality Assurance: Discuss quality requirements and evaluation procedures and warranties.
 Owner Furnished Property. A JOC acquisition may require the contractor to use or occupy owner property, including an on-site work facility, and or dedicated workspaces.
 Owner Furnished Information. Owner manuals, drawings, and other data to be provided to prospective offerors and awarded contractors.
 Contractor Computer Equipment. The equipment specifications to support the pricing (JOC UPB) software must be planned for and identified in advance. The contractor must equip itself with compatible computer hardware and software so that information can be shared, as required.
 Environmental Considerations. Discuss the proposed resolution of environmental issues and any environment-related requirements to be included in the solicitation and contract. Discuss whether any environmental considerations are to be separately treated when individual task orders are issued, and whether contractual coverage will be required.
 Security Consideration. If the contractor’s contractual responsibilities require the use of secured areas, discuss how adequate security will be established, maintained, and monitored.  Discuss how security clearances for the prime and any subcontractors will be handled and the responsibilities of both the owner and the prime contractor regarding them.
 Energy Considerations. Discuss energy conservation considerations, including whether specific coverage will be required in the solicitation and in selecting the JOC unit price book.
 Standardization. Discuss any standardization programs to be recognized in the contract.
 Occupational Safety and Health Administration (OSHA). Discuss how OSHA requirements will be met in the solicitation and contract, including the need for special contract clauses.
 Source Selection Evaluation Plan. Because the selection of a contractor is based on other factors in addition to price, the nature and structure of the source selection process should be discussed to ensure that adequate planning occurs.
 Contract Structure. Discuss the initial period and option(s) structure of the contract. Discuss the responsibilities of the purchasing authority and technical JOC staff members in monitoring contractor performance.
 Bonding Requirements. Discuss any bonding requirements on the part of the contractor.
 Preproposal Conference.
 Job Order / Task Order Placement. Discuss the appointment and training of the purchasing and technical personnel. Discuss the location and schedule of training so that it will be completed before contract activation. A JOC basic training course, followed by advanced and ongoing (annual) training is an important consideration.
 Assignment of Source Selection Authority. As with any solicitation of the magnitude of a JOC contract, the appointment of the source selection authority (SSA) needs to be addressed.
 Assignment of Purchasing Responsibilities. Assure roles and responsibilities associated with contract operations, including issuance of task orders are planned and discussed to ensure smooth and orderly accomplishment.

Job Order Contract Acquisition Milestones
 Needs Analysis
 Strategy
 Acquisition Plan Approval, as required.
 Statement of Work
 Specifications & JOC Unit Price Book / Data Requirements
 Small Business Considerations
 Purchase Request
 Preparation of Acquisition Package
 Obtain Pre-solicitation Approvals (as required)

Review Panel
 Source Selection Evaluation Plan Approval (as required)
 Issue Solicitation
 Preproposal Conference
 Evaluate proposals, audits & field reports, as required
 Prepare Discussion and Clarification Statements
 Prepare Discussion and Competitive Range Decision
 Request & Review Revised Proposals (Discussions Process)
 Request Final Revised Offer
 Prepare Selection Decision
 Contract Award
 Debriefing(s)

Four BT, LLC – Independent, Objective, Best Value LEAN Construction Job Order Contracting Solutions
www.4BT.us

JOB ORDER CONTRACT PROCUREMENT STRATEGY

Learn more…

Delivering Better Facilities Through LEAN Construction and Owner Leadership

Delivering Better Facilities Through LEAN Construction and Owner Leadership

Delivering Better Facilities Through LEAN Construction and Owner Leadership …  The ability to significantly improve how facilities are constructed, managed and operated depends largely on whether owners provide high levels of leadership, knowledge and collaborative support.

Delivering Facilities Through LEAN Construction and Owner Leadership

Delivering Better Facilities through Lean Construction and Owner Leadership NIBS 2017

Delivering Better Facilities Through LEAN Construction and Owner Leadership enables major improvements in productivity, quality, and overall satisfaction.

Owners are in the best position to validate appropriate planning, capability, tools, information and processes. They can require all stakeholders to collaborate, be transparent, build strong relationships and drive higher productivity and value for the facility.

Productivity in the architecture, engineering, construction, owners and operations (AECOO) industry lags behind other industries. Given the impact that facilities have on the financial and operational performance of an organization, increasing productivity can make a big difference to the bottom line. However, to achieve better results, owners must be more involved.

Traditional construction delivery methods (e.g., design-bid-build and lowest-bidder) and newer methods (design-build) are not up to the task. Ultimately, these methods fail to integrate the unique variables of each construction project.

Lean construction is a solution for the facilities industry, as it has been for other industries facing similar struggles. Lean Construction Basics Lean construction delivery provides a process framework to improve outcomes. When properly implemented, more than 90% of lean projects (renovation, repair and new construction) are on time, on budget and satisfactory for all parties.

Learn more….

 

Job Order Contracting Benefits

Job Order Contracting Benefits

Job Order Contracting Benefits
Job Order Contracting benefits all participants and stakeholders – facilities management, DPW, engineering, real property owners, facility users, procurement, contractors and oversight groups.

JOC concept has several key advantages over the traditional design-bid-build, design-build, and virtually all other construction construction delivery method, exclusive of integrated project delivery, IPD.   That said, JOC is a form of IPD that specifically targets renovation, repair, and minor new construction.  IPD, on the other hand, targets major new construction.

Though the benefit of Job Order Contracting are significant, users of this method typically undergo a change management process in order to be able to fully adopt and deploy all related processes, procedures, and tools.

Job Order Contracting Benefits

  • Response Time – faster response to client/end user requests for construction services
  • Shorter Overall Project Delivery Time
  • Reduction is Administrative Burden and/or Costs
  • Lower Design Costs
  • Higher Constructability
  • Fewer Change Orders
  • Virtual Elimination of Legal Disputes
  • Higher Percentage of Dollars Spent on Actual Construction
  • Reduced Deferred Maintenance
  • More Productive Use of Internal Facilities Management Staff
  • Enhanced Financial Visibility
  • Improved Quality
  • Higher Levels of Satisfaction Among ALL participants
  • Long Term Relationships
  • Benefit of Local Knowledge without Sacrificing Global Oversight
  • Quantitative Metrics
  • Availability of Tools and Enabling Technology

Learn More…

Job Order Contracting Benefits

LEAN Collaborative Construction Practices Construction Cost Estimating

LEAN Collaborative Construction Practices Construction Cost Estimating

LEAN Collaborative Construction Practices  Construction Cost Estimating

Four BT, LLC

LEAN Collaborative Construction Practices Construction Cost Estimating
LEAN Collaborative Construction Practices Construction Cost Estimating

Efficient and best management practice construction cost estimating and ongoing construction project/program management is impossible without proper early and ongoing planning, inclusive of the collaborative and competent involvement of all construction project participants and stakeholders.  

 

LEAN Collaborative Construction Practices Construction Cost Estimating – Within this structure the Real Property Owner must demonstrate appropriate leadership skills and manage the appropriate selected team of internal and external service providers and stakeholders without excessive control.   Continuous monitoring, process improvement, and resource development should be a central focus.

 

In general terms are an actionable construction cost estimate should reflect approximate costs developed for a complete schedule of detailed construction line item tasks/activities after consideration of all physical and functional requirements and possible cost variations.  

Thus the process of generating an actionable construction cost estimate can be defined as a quantitative assessment process generates a detailed line item construction cost estimate.

There are multiple alternative forms of estimates including conceptual, square foot, building, system, life-cycle, etc.   The primary focus here is upon detailed line item construction cost estimates as they should be considered mandatory before any final construction project is approved and begun.

LEAN Collaborative Construction Practices Construction Cost Estimating

A few general principles greatly assist in the development of actionable construction cost estimates:

·         Early and ongoing participation of all stakeholders (designers, architects, engineers, construction contractors, facilities management, building users, oversight groups, etc.)

·         Full line item descriptions in plain English using industry standard terms.

·         Organization by standard data architecture (Uniformat, MasterFormat, Omniclass etc.)

·         Full details of specific labor, material, and equipment costs and type.

·         Transparency, sharing, and collaboration among all stakeholders

·         Independently and objectively locally researched cost information (Note: Do not rely exclusively upon national average cost data, even data with localization factors.  Do not rely exclusively upon subcontractor costs.

·         Assure all cost information is updated to current location, time, requirements, and conditions.

General review of the Cost Types associated with LEAN Collaborative Construction Practices Construction Cost Estimating

Variable Cost – Any cost that changes with the amount of production or the amount of work. Examples: cost of materials, power, water, labor

Fixed Cost – Cost that does not change as production changes is a fixed cost. Examples: mobilization/set up cost, rental or rental of equipment or machinery.

LEAN Collaborative Construction Practices Construction Cost Estimating

Direct Cost- Costs are directly attributable to the work on the project. Example: team travel, team wages, recognition, and costs of materials used on the project.

Indirect Cost – Overhead items or costs incurred for the benefit of more than one project are indirect costs. Example: Corporate Tax, Fringe Benefit Tax.

Opportunity Cost – Cost associate by choosing a particular method or project over another an opportunity cost.

Sunk Cost – Costs are the ones which were already spent on the project earlier and generally not considered when future decisions are made.

Types of Estimating and Associated Key Terms
 

Analogous Estimating – Using the actual cost of previous or similar projects as the basis for estimating the cost of the current project.

Researched Costs/Cost Rates – Actual per unit labor and material resource rates are that are collated or estimated.  May include subcontractor quotes, current/previous relevant contracts, and commercial cost databases.

Bottom-up Estimating (also detailed line item estimating- Individual schedule activities, and/or task, that are estimated to the smallest reasonable level of detail to provide the greatest level of confidence.  All costs are then aggregated and used for reporting, tracking and control purposes. Individual activity/task cost consciousness is of prime importance.

Parametric Estimating – This technique uses historical cost with current project variables that are determined. This is a highly accurate method as it requires clarity in current project variables.

Cost Estimating Software – Widely Available cost estimation applications can be used for faster estimation of alternatives.  At a minimum capabilities should include the ability to house, store, and recall a construction cost database, provide a collaborative environment, create, report, and export (excel, PDF), detailed line item cost estimates, track source of line time, and have ability to include notes at line item level.

Vendor Bid Analysis / Contractor/Subcontractor Quote Analysis: A method used to benchmark costs. If a project is won in a competitive bid, more details should be considered for cost estimation and control purposes.

Contingency or Reserve Analysis – Allowances used to deal with uncertainty or “knowns-unknowns” and these are added to the cost estimates, thus sometimes overstating construction project costs. Options vary between grouping similar activities and assigning a single contingency reserve for that group to a zero duration activity.

Cost of Quality – Cost of quality can also be used to prepare the schedule activity cost estimate.
Cost Budgeting – Aggregating the estimated costs of individual schedule activities or work package to establish a total cost baseline for measuring project performance. The project scope of work statements are prepared prior to the summary budget. Schedule activity or work package cost estimates are prepared prior to the detailed budget requests and work authorization.  
 
 

Cost Aggregation – Schedule activity cost estimates are aggregated and grouped by work packages, which may be then grouped by higher levels as per levels set by the WBS, then finally by the entire project.

Parametric Estimating – Using construction project characteristics (parameters) in a mathematical model to predict total project costs. Both the cost and accuracy of parametric models vary widely. They are most likely to be reliable when: the historical information used to develop the model is accurate, the parameters used in the model are readily quantifiable, and the model is scalable (it works within the range of likely construction sizes to be finalized).

Funding Limit / Budget Reconciliation – Funds are reconciled and based on the results and new limits are set and WBS components are adjusted. This may impact allocation of resources to the project. If costs are used in the schedule development process, the process is repeated with new constraints and a new baseline is derived.

 

Primary Causes of Cost Variation
 
Cost control and/or the level of confidence associated with a construction cost estimate can be affected by several factors… 1. Level of collaboration and detail with which the scope of work is discussed and shared among all stakeholders, 2. The construction deliver method, 3. The experience level and competency of the team, 4. The amount experience that the team has had working together in the past, 4. Degree and/or number of uncertainties, 5. The method in which the project is managed (assuring that requested changes are detailed and agreed upon, managing the actual changes when and as they occur, ongoing (daily) monitoring project work and cost performance to detect and understand variance from the cost baseline, recording all appropriate changes accurately against the cost baseline versus the project cost estimate, adhering to established processes and workflow s (preventing incorrect, inappropriate, or unapproved changes from being included in the reported cost or resource usage, informing appropriate stakeholders of proposed, approved changes, leveraging the use of key performance indicators (KPIs), shared risk/reward among all participants.
Tools and Techniques of Construction Estimating and Associate Cost Control

Project / Program / Contract Execution Plan and//or Operations Manual – In addition to the Construction Delivery Method, likely the most important item relevant to improving outcomes. A written, detailed, and agreed upon document defining roles, responsibilities, documents, costs data types/formats, specifications. Outcomes, deliverables, processes, workflows, approvals/approval levels, etc., tools associated with the cost management plan.

Collaborative Construction Cost Estimating and Project Tracking System – Cloud based system that enables transparent creation, modification, use, updating, and storage.  Inclusive of construction cost line item database.

Key Performance Indicators, KPIs, Performance Measurement Analysis – Performance measurement methods, metrics, techniques to help to assess the magnitude of any variance that will invariably occur with any construction estimate, or construction project/program.   For example, the earned value technique (EVT) compares the cumulative value of the budgets cost of work scheduled (planned) to the actual cost control, resource management, and production. An important part of cost control is to determine the variance, the magnitude of the variance, and to decide if the variance requires corrective action. The earned value technique uses the cost control contained in the project management plan to assess project progress and the magnitude of any variations that occur. The earned value technique involves developing these key values for each schedule activity, work package, or control account.

Planned value (PV) – PV is the budgeted cost for the work scheduled to be completed on an activity or WBS component up to a given point in time.

Earned value (EV) – EV is the budgeted amount for the work actually completed on the schedule activity or WBS component during a given time period.

Actual cost (AC) – AC is the actual cost incurred in accomplishing work on the schedule activity or WBS component during a given time period. This AC must correspond in definition and coverage to whatever was budgeted for the PV and the EV (e.g. direct hours only, direct cost only, or all costs including indirect costs).

Estimate to complete (ETC) and estimate at completion (EAC) – The PV, EV, and AC values are used in combination to provide performance measures of whether or not work is being accomplished as planned at any given point in time. The most commonly used measures are cost variance (CV) and schedule variance (SV). The amount of variance of the CV and SV values tend to decrease as the project reaches completion due to compensating effect of more work being accomplished. Predetermined acceptable completion can be established in the cost management plan.

Cost Variance (CV) – CV equals earned value (EV) minus actual cost (AC). The cost variance at the end of the project will be the difference between the budget at the completion (BAC) and the actual amount spent. Formula: CV=EV-AC

Schedule Variance (SV) – SV equals earned value (EV) minus planned value (PV). Schedule variance will ultimately equal zero when the project is completed because all of the planned values will ultimately equal zero when the project is completed because all of the planned values will have been earned. Formula: SV=EV-PV   The values CV and SV, can be converted to efficiency indicators (KPIs) to reflect the cost and schedule performance of any project.

Cost performance index (CPI) – A CPI value less than 1.0 indicate accost overrun of the estimates. A CPI value greater than 1 indicates a cost under-run of the estimates. CPI equals the ratio of the EV to the AC. The CPI is the most commonly used cost-efficiency indicator. Formula: CPI=EV/AC

Cumulative CPI (CPI^c) – The cumulative CPI is widely used to forecast project costs at completion. CPIC equals the sum of the periodic earned values (EV^c) divided by the sum of the individual actual costs (AC^c). Formula: SPI=EV/PV   The earned value technique in its various forms is a commonly used method of performance measurement. It integrates project scope, cost (or resource) and schedule measures to help the project team assess project performance.
 

Forecasting –  Making estimates or predictions of conditions in the project’s future based on the information and knowledgeable available at the time of the forecast. As the project progresses, the forecasts are adjusted.  The earned value technique parameters of BAC, actual cost (AC^c) to date, and the cumulative CPI^c efficiency indicator are used to calculate ETC and EA, where the BAC is equal to the total PV at completion for a schedule activity, work package, control account, or other WBS component.  Forecasting technique parameters to assess the cost or the amount of work to complete schedule activities is called the EAC. Forecasting techniques also help to determine the ETC, which is the estimate for completing the remaining work for a schedule activity, work package, or control account. While the earned value technique of determining EAC and ETC is quick and automatic, it is not as valuable or accurate as a manual forecasting technique based upon the performing organization providing the estimate to complete.  ETC is based on the new estimate. ETC equals the revised estimate for the work remaining as determined by the performing organization. This more accurate and comprehensive completion for all the work remaining considers the performance estimate to complete all the work remaining and the performance or production of the resource to date.  Alternatively, to calculate ETC using value data, one of the two formulas is typically used: ETC based on atypical variances. This approach is most often used when current are seen as atypical and the project management team expectations are that similar variance will not occur in the future. ETC equals the BAC minus the cumulative earned value to date (EVC). Formula: ETC= (BAC – EVC)

ETC based on typical variances – This approach is most often used when current are seen as typical of future variances. ETC equals the BAC minus the cumulative EVC (the remaining PV) divided by the cumulative cost performance index (CPIC). EAC using a new estimate. EAC equals the actual costs to date (AC^c) plus a new ETC is provided by the performing organization. Formula: EAC=AC^c + ETC
 
 LEAN Collaborative Construction Practices Construction Cost Estimating

Learn more about…LEAN Collaborative Construction Practices Construction Cost Estimating

Job Order Contracting Lessons Learned Regarding Improving Construction Productivity

Job Order Contracting Lessons Learned Regarding Improving Construction Productivity

Here are a few lessons learned with respect to improving construction productivity, and overall life-cycle management of the built environment.  Job Order Contracting Lessons Learned Regarding Improving Construction Productivity …

Job Order Contracting Lessons Learned Regarding Improving Construction Productivity

  1. First and foremost, the primary issue impacting low productivity and poor life-cycle management of built environment is the need for higher levels of leadership and  ownership on the part of real property Owners.
  2. Secondly, robust LEAN collaborative project delivery methods have proven capable of delivering approximate 90% of renovation, repair, and new construction projects on-time, on-budget, and to the satisfaction of all participants.   Thus, a road map to improving the woefully low productivity associated with the AECOO sector is there for everyone’s use. (Note: examples of LEAN Construction Delivery Methods include Integrated Project Delivery, IPD for major new construction, and Job Order Contracting, JOC for renovation, repair, and minor new construction.)
  3. Data is certainly important, especially actionable detailed transparent and objective sourced information, shared among all participants (FM, contractor, AEs, building users…)  at early stages and throughout end-of-life.   That said, data is meaningless if not interpreted and applied properly.
  4. As to technology, it is NOT THE SOLUTION, it is simply an enabler with respect to rapid, more consistent, and lower cost deployment of robust LEAN processes.
  5. Continuous education, improvement, and collaboration drive better outcomes.

Focus must be upon building strong leadership, competency, and collaboration internal to an organization and doing the same with external service providers.

WHAT NOT TO DO….

JOC is a collaborative construction delivery method.  It is NOT solely a procurement method.  Is also should NOT be used to bypass traditional procurement methods to simply save time or approve project that otherwise would not have been approved.   Unfortunately some sectors such as County, State, and Local Government are notoriously poor facilities management practitioners and many agencies have corrupted the use of JOC.   This fact readily demonstrated if one take the time to review the many publicly available independent and internal audits of JOC Programs in this sector.

Conversely the Federal Government and Higher Education, for the most part, deploy JOC properly and have reaped the available benefits.

RULES TO LIVE BY…

Deploying JOC, and any collaborative LEAN construction delivery method properly, does indeed solve many AECOO industry if used properly.  All, however  REQUIRE the following…

Job Order Contracting Lessons Learned Regarding Improving Construction Productivity

  • Focus upon Outcomes
  • Best Value Procurement
  • Collaboration
  • Common Data / Information Environment (examples- Uniformat, Masterformat, Omniclass), Work Breakdown Structure, Common Line Item Cost Data
  • Financial Transparency – Detailed Line Item Tasks, including Full Descriptions in Common Terms/Plain English and Labor, Materials, and Equipment Breakdowns
  • Shared Risk/Reward
  • Operation/Execution Manuals as part of the Contract
  • Multi-party Agreements
  • Defined Roles, Responsibilities, Deliverable, and Outcomes
  • Continuous Improvement
  • Ongoing Annual Training/Certification
  • Monitoring / Audits
  • Key Performance Indicators (KPIs)
  • Supporting Technology
  • Checklists, Audits, Status Reports, Plans, Forms/Documents – Budget, Resource, Communications, Training, Cost Estimating, Project Delivery, Project Management, Progress versus Goals, Procurement/Payments, Implementation/Deployment, Milestones, Change Requests, Project Closeout…
  • Early and Ongoing Communication Among ALL Participants from Concept through Warranty
  • Detailed, Mutually Established Statement of Work / Project Scope
  • Compliance with Contract, Rules, Regulations, Statutes
  • Quality Control/Quality Assurance Plans
  • Negotiation-centered Dispute Resolution
  • Current, Actionable Information
  • Oversight and Leadership without Excessive Management and Control

Learn more…

Peter Cholakis, 4bt.us

BIM for FM

BIM for FM

BIM for FM

BIM for Facilities Management – 12 Reasons

 Senior Vice President at Four BT, LLC, Moscardi, Lemsys SRL

 

12 Good Reasons to Adopt BIM for Facilities Management

Despite the fact that the use of the BIM[1] methodology in Facilities Management is becoming ever more important for all organizations for both economic and environmental reasons, BIM software adoption for facilities operation and maintenance (O&M) remains poor.

Distribution and sharing of information by the Facilities Management Team is crucial to achieving cost efficient and high performing facilities, however, 3-D BIM visualization and modeling software is generally very sophisticated, relatively expensive, and very complex.   Current 3-D BIM software targets sophisticated users who focus upon design yet are ill-suited to support or engage in Facilities Management functions.

Complex 3-D visualization type of software is SIMPLY NOT REQUIRED to practice efficient life-cycle management of the built environment.  What is required is an integrated, customer focused service delivery approach based upon LEAN collaborative construction design and delivery methods, a common data environment that transparently shares detailed technical and locally researched actionable and standardized cost information, and the integration of multiple cloud-based technologies to effectively manage each core domain and competencies of facility life-cycle management.

Twelve (12) reasons for facilities managers to adopt change management and relevant technologies in support of BIM strategy and implementation:

1.      LEAN Construction Delivery, the foundation of the efficient management of the built environment, have a proven track record. Examples such as integrated project delivery and job order contracting (JOC) deliver over 90% of renovation, repair, and new construction project on-time, on-budget, and to the satisfaction of all participants and stakeholders.[2]

2.      There are no barriers to integrating various BIM technologies and LEAN processes, except that of the need for Owners to provide leadership, and for all organization to successfully drive change management.

3.      3-D visualization is already rooted in design and construction phases and is therefore inevitable that it is also adopted in the subsequent operation and maintenance phase, and integrated with other competencies and tools (however, again, is not a requirement).

4.      LEAN construction delivery, common data environments, and open cloud-based technologies enable measurable gains in efficiency, cost-effectiveness, collaboration, and transparency.

5.      Collaborative LEAN construction delivery and supporting BIM methods and technologies will become the standardized method for Facilities Management, regardless of the size of an organization.

6.      The focus of BIM upon life-cycle costs versus first drives continuous improvement and provides major environmental benefits, such a lowering carbon footprints.

7.      BIM’s collaborative LEAN construction process are beneficial for all types of projects – public and private sector and all types of properties – hospitals, commercial buildings, residential buildings, etc.

8.      Cost of implementation is insignificant versus cost savings.

9.      The expertise and involvement of Facilities Managers during the initial concept development and design through deconstruction is crucial to ensuring life-cycle performance of the building/physical asset.

10.  Current inventory and location, condition, and detailed service plans and costs of building components and technology assets are uniquely stored, traceable, and readily accessed.

11.  Information and asset inventory can be viewed in a wide variety of ways depending upon user needs: displaying all the premises using pictures, 3D models, 2D CAD, detailed line items in list view, etc.

12.  Operation and Maintenance are now part of an overall integrated service delivery approach.

Solutions such as Building in Cloud, allow, via access through any device (desktop, tablet, or smartphone and a Web browser) access to a full range of facilities management information and associated proven LEAN collaborative workflows/processes.

Have you some cases of successful implementation of BIM in the Facility management processes to highlight and you would like to bring to the attention of those working in the industry?

If yes please comment on this post, or email me, and we will share your experience with others! info@4BT.US

[1] BIM is defined as the efficient life-cycle management of the built environment supported by digital technologies.

[2] For JOC, due to the need for negotiations on individual delivery orders and the lack of a defined scope of work at the beginning of the contract, teamwork and frequent communication are required for a successful contract. . A formal =partnering process is required in JOC to focus the parties in that direction. In addition, many JOC contracts employ a negotiated source selection based upon best value procurement.

Learn more…

Uncategorized

Improve Construction Productivity

Improve Construction Productivity using Integrated Project Delivery, Job Order Contracting (JOC) and other proven LEAN construction methods.

Research has clearly determined as well as decades of successful deployment have determine that integrated service delivery methods, such as JOC and IPD, improve overall project delivery effectiveness.

Improve Construction Productivity

 

Survey information obtained from both real property owners and construction contractors spans construction performance, administrative support, owner-contractor relationships, and overall satisfaction.

Analysis of available survey data and discussion with experience professionals in these areas reveal that owners, contractors, and oversight groups perceived advantages in the use of properly designed and executed Job Order Contracting and Integrated Project Delivery programs.

Learn more…

Below are examples of best practices to be considered when structuring and executing a JOB ORDER CONTRACTING PROGRAM.
  • Promote awareness and education of  LEAN and BEST VALUE construction delivery methods among management and projectall project participants – Owners (procurement/contracting, engineering/management) Contractors, Engineers, Architects, and Oversight Groups.
  • Focus upon BEST VALUE and fully leveraging and enabling the expertise of all  project participants from initial concept and throughout the entire life-cycle of the built structure.
  • Enhance the understanding and appreciation of collaboration, transparency, common terms/definitions/data formats, shared risk/reward, best business practices, metrics, and continuous improvement.
  • A common and minimum body of knowledge must be defined as a performance standard.
  • Reward achievement through an appropriate recognition –  example – additional work for contractor.
  • Provide work flows, data formats, and technologies which enable experiences with the principles and techniques of state of work definition, cost estimating, project management, and performance analysis to be reported, discussed, documented, and reused.
  • Foster and promote ongoing training.
  • Incorporate systems to maintain standards of proficiency and performance – monitoring / metrics.
  • Require cooperation among internal and external project participants with common or related purposes, in furtherance of project success.
  • Provide opportunities for participants to collectively discuss and comment on subjects of common interest.
  • Establishing standards in the terminology, conduct and application of all procedures and policies
  • Leverage technology that embeds LEAN workflows
  • Share risk and reward among participants.
Job Order Contracting Information

Job Order Contracting Information

Job order contracting information is key to improving construction productivity. Public works contracts vary from private sector contracts in that legislation sets the contracting guidelines for contracts and the public interest demands safeguarding process integrity.

Job Order Contracting Information

Thus, the requirement for full and open competition is a hallmark of
public contracts.

To minimize the chance of favoritism or corruption, the sealed bid
contracting method was developed to award a contract on the basis of price alone.   Also referred to as the “Design-Bid-Build” process, this system has long been the most prevalent option for large and small public works contracts.

Over time, however, design-bid-build has proven to be inefficient, antagonistic, and incapable of delivering the majority of construction project on-time, on-budget, and to everyone’s satisfaction.

Learn more….

Related Resources:

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

Building Information Modelling BIM in the Construction Industry – Technical Report TR-1405

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.

COAA – Owners Perspective – BIM for FIM, BIFM – BIM for FM and a “Building Information Management Framework” – BIMF includes a laser sharp focus on integrated functional planning and cost metrics. The framework’s value for stakeholders includes: a) transformational change effected by a capital planning philosophy that emphasizes integration of professional practice; b) delivery models that emphasize lean construction practices; and, c) transparent standardized construction and facility operations data and taxonomies that contain cost by providing access to building information whether stored or linked to a building
model.

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.

Construction Cost Workbook – 2002 – Conference on the International Comparison Program World Bank

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.

THE EFFECTIVENESS OF PARTNERING AND SOURCE SELECTION IN JOB ORDER CONTRACTING – Design-bid-build has proven to be inefficient, antagonistic, and incapable of delivering the majority of construction project on-time, on-budget, and to everyone’s satisfaction.

CMMS Facilities Operations Maintenance Best Management Practices

CMMS Facilities Operations Maintenance Best Management Practices

CMMS Facilities Operations Maintenance Best Management Practices span a broad range of services, competencies, processes, and tools required to assure the built environment will perform the functions for which designed, constructed, and currently used:   All activities associated with the routine, day to day use, support and maintenance of a building or physical asset; inclusive of administration, management fees, normal/routine maintenance, custodial services and cleaning, fire protection services, pest control, snow removal, grounds care, landscaping, environmental
operations and record keeping, trash-recycle removal, security services, service contracts, utility charges (electric, gas/oil, water), insurance (fire, liability, operating equipment) and taxes. It does not include capital improvements. This category may include expenditures for service contracts and other third-party costs. Operational activities may involve some routine maintenance and minor repair work that are incidental to
operations but they do not include any significant amount of maintenance or repair work that would be included as a separate budget item.

CMMS Facilities Operations Maintenance Best Management Practices

CMMS Facilities Operations Maintenance Best Management Practices  include the day-to-day activities necessary for the building/built structure (examples:  facilities, roadways, bridges, dams, airports, mass transits,  utilities, landscaping, snow removal, etc.) and its systems, equipment, and occupants/users to perform their intended function.

Facilities operations and maintenance encompass a broad spectrum of services, competencies, processes, and tools required to assure the built environment will perform the functions for which designed and constructed. Operations and maintenance are combined into the common term Built structures cannot operate at peak efficiency without being properly maintained.

The following are generally required to implement CMMS Facilities Operations Maintenance Best Management Practices:

Operations and maintenance (O&M) activities can further be divided several functions/areas:

Emergency Maintenance: Unscheduled work that requires immediate action to restore services, to remove problems that could interrupt
activities, or to protect life and property.

General Maintenance:  Custodial, trash removal, landscaping, snowplowing, janitorial activities.

Planned or Programmed Maintenance: 
Includes those maintenance tasks whose cycle exceeds one year. Examples of planned or programmed
maintenance are painting, flood coating of roofs, overlays and seal coating of roads and parking lots, pigging of
constricted utility lines and similar functions.

Predictive Maintenance: Predictive Maintenance/Testing/Inspection Routine maintenance, testing, or inspection performed to anticipate failure using specific methods and equipment, such as vibration analysis, thermographs, x-ray or acoustic systems to aid in determining future
maintenance needs. For example, tests to locate thinning piping, fractures or excessive vibration that are
indicative of maintenance requirements.

Preventive Maintenance: A planned, controlled program of periodic inspection, adjustment, cleaning, lubrication and/or selective parts
replacement of components, and minor repair, as well as performance testing and analysis intended to
maximize the reliability, performance, and lifecycle of building systems, equipment, etc. Preventive
maintenance consists of many check point activities on items, that if disabled, may interfere with an essential
installation operation, endanger life or property, or involve high cost or long lead time for replacement.

Repair(s):  Work that is performed to return equipment to service after a failure, or to make its operation more efficient.
The restoration of a facility or component thereof to such condition that it may be effectively utilized for its
designated purposes by overhaul, reprocessing, or replacement of constituent parts or materials that have
deteriorated by action of the elements or usage and have not been corrected through maintenance.

Routine Maintenance:  Normal/Routine Maintenance and Minor Repairs
Cyclical, planned work activities funded through the annual budget cycle, done to continue or achieve either
the originally anticipated life of a fixed asset (i.e., buildings and fixed equipment), or an established suitable
level of performance. Normal/routine maintenance is performed on capital assets such as buildings and fixed
equipment to help them reach their originally anticipated life. Deficiency items are low in cost to correct and
are normally accomplished as part of the annual operation and maintenance (O&M) funds. Normal/routine
maintenance excludes activities that expand the capacity of an asset, or otherwise upgrade the asset to serve
needs greater than, or different from those originally intended.

Unscheduled/Unplanned Maintenance: Reactive and non-emergency corrective work activities that occur in the current budget cycle or annual program. Activities may range from unplanned maintenance of a nuisance nature requiring low levels of skill
for correction, to non-emergency tasks involving a moderate to major repair or correction requiring skilled
labor.   Requests for system or equipment repairs that – unlike preventive maintenance work – are unscheduled and unanticipated. Service calls generally are received when a system or component has failed and/or perceived to be working improperly. If the problem has created a hazard or involves an essential service, an emergency response may be necessary. Conversely, if the problem is not critical, a routine response is adequate.
Reactive and/or emergency corrective work activities that occur in the current budget cycle or annual program.
Activities may range from unplanned maintenance of a nuisance nature requiring low levels of skill for
correction, to non-emergency tasks involving a moderate to major repair or correction requiring skilled labor, to
emergency unscheduled work that requires immediate action to restore services, to remove problems that
could interrupt activities, or to protect life and property.

Key Performance Indicators – KPIs  for monitoring CMMS Facilities Operations Maintenance Best Management Practices
􀀹 Facility Operating Gross Square Foot (GSF) Index (SAM Performance Indicator: APPA 2003)
􀀹 Custodial Costs per square foot
􀀹 Grounds Keeping Costs per square foot
􀀹 Energy Costs per square foot
􀀹 Energy Usage
􀀹 Utility Costs per square foot
􀀹 Waste Removal Costs per square foot
􀀹 Facility Operating Current Replacement Value (CRV) Index (SAM Performance Indicator: APPA 2003) 
􀀹 Emergency Maintenance Costs as a percentage of Annual Operations Expenditures.
􀀹 Unscheduled/Unplanned Maintenance Costs as a percentage of Annual Operations Expenditures.
􀀹 Repair costs (man hours and materials) as a percentage of Annual Operations Expenditures

CMMS Facilities Operations Maintenance Best Management Practices

via Four BT, LLC – Independent, Objective, Best Value Lean Construction and Job Order Contracting Soutions

Job Order Contracting Program Manager

Job Order Contracting Program Manager

Roles and responsibilities of a job order contracting program manager are both diverse and key to overall success.

Job Order Contracting Program Manager

Job Order Contracting Program Manager

Let’s take a look at the roles and responsibilities of a job order contracting program manager.  First, and foremost, the JOC Program Manager should be an employee of the real property owner and directly involved in both the strategic and day-to-day operations of the JOC Program.   Job Order Contracting is a multiple party, collaborative win-win agreement between a real property owner and the service provider(s), as such JOC Program management should not be outsourced to a third party, such as JOC consultant.

Based upon the type and location of the organization, the JOC Program Manager must assure that the JOC Program is in full compliance statues/regulations/laws pertaining to the acquisition and use of capital funds for a facility and/or physical infrastructure renovation, repair, maintenance, and/or minor new construction.

Qualifications, Roles and Responsibilities of a Job Order Contracting Program Manager – Sample Listing

  1. Knowledge of the construction management industry and life-cycle management of the built environment including but not limited to, contract and information management, quality control, cost control, and schedule control.
  2. Monitor, review, approves all forms and reports associated with the Job Order Contracting workflow.
  3. Represent the best interests of Real Property Owner is all matters relating to the JOC Program and associated JOC Projects, while doing so in  collaborative and transparent manner with all service providers and associated internal and external personnel/stakeholders.
  4. Participate in on-site inspections, budget/cost estimate development and/or reviews, monitor all stages/phases of the Job Order Contracting process/workflow.
  5. Review and assure that cost data, specifications, documents, tools and procedures are timely and appropriate.
  6. Participate in the review and close-out of all Job Order Contracting task orders / projects, and make recommendations on, and assist in any disputes claims/issues and close-out activities of the project.
  7. Review all JOC task order cost estimates, documents, packages for accuracy and compliance.
  8. Assure internal cost estimates are created when required and compared to JOC contractor estimates.
  9. Assure ongoing training for all JOC participants.
  10. Support JOC owner/JOC contractor negotiations between owner and contractors technical and procurement/purchasing teams.
  11. Monitor and report upon timeliness, quality, cost of all JOC projects.
  12. Make any necessary recommendations for alternative ways of accomplishing the JOC process / scope of work to achieve improved quality, cost reduction and schedule goals based upon establishments and review of key performance indicators (KPIs).
  13. Assure overall JOC Program compliance with respect to developing, preparing, publishing and evaluating request for proposals for JOC projects and all associated phases from initial conceptualization and acceptance/rejections through the warranty period.
  14. Assists owner and contractor JOC Project Managers as required, examples… preparing, organizing, maintaining, submitting, and tracking, summarizing and reporting all project documents and overall JOC Program operation.
  15. Assure full understanding of Job Order Contracting as a collaborative construction delivery method versus alternative delivery methods among all stakeholders-procurement, facilities management/DPW, contractors, building users, and oversight groups.

LEARN MORE>>>

 

Location Factors

Stop Using Construction Cost Indexes, Location Indexes, Location Factors

Whether you are involved in Job Order Contracting or engaging in general construction cost estimating its time to Stop Using Construction Cost Indexes,  Location Indexes, Location Factors.   The use of construction cost indexes, location indexes, or location factors is likely costing your organization money and creating major problems for everyone involved;  real property owners, contractors, subs, architects, engineers, and oversight groups.

Using location indexes appears to be a gamble, and the result will vary significantly depending on the index used. There is no obvious consistency between the publications, even those of the same type. This is very concerning as major decisions may be based upon this information.  – A Guide to Construction Cost Sources, Prism Economics and Analysis and the Department of Civil Engineering, University of Toronto

First, if one compares construction cost factors from various sources there appears to be no rhyme of reason for their development.   The variances can be extreme.   Secondly, applying a location factor to a unit price line time just doesn’t make sense.   The location of a job affects the labor rates, fringes, crew composition, and productivity… all of which can’t simply be multiplied by a factor.   As labor alone accounts for 60% of construction cost alone, the use of location factors can easily introduce gross errors. (Note: Some vendors even state the productivity is not considered in creating the location factor!)

Location indexes generally do not contain any assumptions or adjustments related the local labor productivity. It is important to note that the quantities are constant in every location. This means that some aspects of the construction process are not captured, such as labor skill levels or practices and local building code requirements.

Why are location factors used?

Simple.  Traditionally cost estimators have researched there own costs by calling subs and also by using national average price books.  Locally researched construction cost data either wasn’t available or was too expensive.

That is no longer the case, locally researched cost data is not only available, but it provides a faster, more efficient and reliable method of creating construction costs estimates for all parties.   Locally researched line item construction cost data can be even be relied upon to check estimates received from subcontractors/trades!!!

Stop Using Construction Cost Indexes, Location Indexes, Location Factors

Learn more about locally researched detailed line item construction cost data…

Stop Using Construction Cost Indexes,  Location Indexes, Location Factors

Validation
The reliability of the cost data is always in question. The method used to collect the cost data is very important to ensure the data are representative of the political and economic conditions. Data collection may be done by phone with associated firms (engineers, cost estimators, subcontractors/trades, contractors) providing information, by survey of published labor, material, and equipment costs, and/or by review of completed project files. Where associated firms are providing the information, it is important that they all understand the assumptions that must remain constant for all locations, and to not allow personal or local biases affect the reliability of the process.

Facilities Management Glossary

Facilities Management Glossary

Facilities Management Glossary

Facilities management glossary provided to improve collaboration and productivity for real property owners, contractors, architects, engineers & oversight groups .

Facilities Management Glossary

agreement: a fully executed (signed by appropriate parties) between the demand organization and the provider of services or products that clearly describes requirements in sufficient detail, including conditions, costs, resources required, desired outputs, and associated workflows.

asset: a physical item, thing or entity  that has potential or actual value to an organization

asset management: coordinated activity  of an organization monitor, control, and  realize value from physical items, things, or entities

built environment: buildings, land/landscaped areas, infrastructure  and other construction works

competence / competency – ability to apply knowledge, skills, and tools to achieve intended results in a  targeted area(s).  Examples specific to facility management include:  construction cost estimating, maintenance management, capital planning, space planning, project delivery, etc.

demand organization: an entity which has a need  and the authority to incur costs to have requirements  met

end user: person or organization  which uses products  or services obtained from a supplier

internal service provision, in-house service provision: delivery and management of by staff employed by the demand organization 

facility management, facilities management, FM: organizational function which integrates people, place, process,  technologies, competencies, with respect to  the  with the purpose of improving outcomes, including quality, productivity, satisfaction, and return on investment in support of the organizational mission.

facility process: process  which is integrated and managed by a facility management group/facility management organization

facility service: support provision to the primary activities  of an organization delivered by an internal or external provider

infrastructure system: of facilities, physical equipment, built structures, and services/products/processes  needed for the operation of an organization

open-book:  transparent exchange of relevant information (especially costs – (OpenCostTM) between the facility management/construction/AE service provider and the demand organization

organization: person or group of people that has its own functions with responsibilities, authorities and relationships to achieve its objectives  (examples: sole-proprietor, corporation, firm, enterprise, authority, partnership, charity or institution, or part or combination thereof, whether incorporated or not, public or private.

mobilization: phase to establish and implement all resources, tools, materials, information, information  and procedures prior to taking full responsibility for the facilities services to be delivered as specified in the agreement.

need/requirement:  a stated or implied expectation, specific (stated, for example in documented information or abstract, from the demand organization  which is essential to enable the achievement of the core purpose and key objectives, generally implied (custom or common practice for the organization and interested parties or obligatory

real estate / real property:  immovable land and/or buildings/physical structures.

service level: complete description of requirements  of a service, product, technology process or system with their defined characteristics

support service: non-primary activity  delivered in support of core business/core service of the organization

service level agreement, SLA: document which has been agreed between the demand organization  and a service / product provider  on defining performance, measurement  and conditions of product/service  delivery.

service provider organization: a provider that delivers one or more facility services that is internal or external to the demand organization .

specification(s): detailed description of the required performance  and/or technical requirements  for services  or products  and processes set out by the demand organization  to make clear to the service provider  the requirements to be fulfilled

workplace: physical location where work is performed

work station: location containing furniture and supporting equipment (telephony, IT and power connections), specifically designed or suitable for work-related activities and is suitable for permanent use

Facilities Management Glossary

 For a more definitive Construction Glossary, please visit…

For more information…

LEAN Construction Primer

LEAN Construction Primer

LEAN Construction Primer,  an introduction to collaborative construction delivery.

LEAN Construction delivers higher productivity and over 90% of construction projects on-time, on-budget, and to everyone’s satisfaction.

LEAN Construction Primer
LEAN Construction Primer

LEAN Construction Primer

So what is LEAN Construction?   Simple actually, it’s a process the embodies ALL of the following elements….

  1. Early and ongoing participation of all participants & stakeholders
  2. Common terms, definitions, and data architectures (i.e.  MasterFormat is an example of a data architecture)
  3. Financial transparency (i.e.  a shared line item unit price book, shared estimates, etc.)
  4. Shared risk/reward
  5. Continuous improvement
  6. Required ongoing training
  7. Key performance indicators
  8. Mutual respect/trust among all participants and stakeholders

The most notable examples of LEAN construction delivery methodology that have been deployed and proven include Integrated Project Delivery, IPD (for major new construction), and Job Order Contracting, JOC (for renovation, repair, and minor new construction).

LEAN Construction is tailored to each organization and its service providers, in consideration of the following…

Context of the Organization

  • External & Internal Issues
  • Interested Party Requirements
  • Scope of Work

Leadership

  • Real Property Owner Leadership & Commitment (Management is NOT outsourced)
  • Established life-cycle based Facilities Management Policy
  • Communication of FM Policy
  • Clear Definition of all Roles, Responsibilities, & Deliverables
  • Management Without Excessive Control

Planning

  • Risks & Opportunities
  •  Stakeholder Requirements
  • FM Objectives
  • Implementation Plan
  • Planning Horizons

Operations

  • Processes
  • Supporting cloud technology
  • Change Management/Control
  • Control Processes
  • Customer Relationships
  • Integrates Service Delivery
  • Global Oversight Supported by Local Knowledge and Action

Improvement

  • Nonconformity
  • Corrective Actions
  • Proactive Measures
  • Gap Analysis
  • Continually Improve

Support

  • Security
  • Source & Monitor
  • Assured Competencies
  • Awareness
  • Communications
  • Information Requirements

Performance Evaluation

  • Scope of Monitoring
  • Regular Independent Third-party Audits
  • Monitoring Means & Methods
  • Documented Results
  • Evaluate Performance – Key Performance Indicators
  • Top Management Review
  • Communicate/Act on Results

via Four BT, LLC, www.4bt.us … Independent, Objective, and Best Value LEAN Construction Delivery Solutions (JOC, IPD…), Training, Technology, Services, and Cost Data

LEAN Construction Primer

construction cost estimating software

Construction Cost Estimating Software

Construction Cost Estimating Software including 50,000 line item construction cost database and access via a secure cloud network, only $150.00/month!

The only cloud based construction cost estimating system available that is  independent and objective, includes over 50,000 detailed construction line items created by cost estimators, project managers, and facilities managers with decades of industry experience, AND  also the a wide range of features noted below, and more!

Construction Cost Estimating Software 

Construction Cost Estimating Software

  • Secure – highest security rating available
  • Detailed line item cost data
  • Ability to create custom line items
  • Create favorites
  • Demolition line items
  • Line item modifiers (to account for quantity and other variables)
  • Licensed by Construction Specifiers Institute (CSI)
  • Organized by Masterformat
  • Create Estimates
  • Export to Excel, Adobe PDF
  • Easy to Use!   Virtually no training required, be up and running in minutes
  • So much more …..

10-day Trial to Qualified Organizations…

 

The 4BT Team helps Owners, Contractors, Subcontractors, Architectural&Engineering/Contract Management Companies and Cooperatives  develop best value cost estimating processes in support of their organization.
Job Order Contract Outsourcing

Job Order Contract Outsourcing

Job Order Contract outsourcing of core management is inconsistent with its inherent design and function.

outsource (verb) – to make an arrangement where an external organization/service provider/consultant   performs part of  demand organization’s function or process.   Note: The demand organization is an entity requesting services or products from an external service provider. The external organization is outside the scope of the management system of the demand organization.Job Order Contract Outsourcing

By definition Job Order Contracting is a LEAN construction delivery method that focuses upon early and ongoing communications between real property owners and construction contractor.  Competent and directly leadership, provided by the real property owner is important, IF NOT REQUIRED, in order to achieve the benefits of Job Order Contracting.

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job order contract outsourcing

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Job Order Contract Open Standards

Job Order Contract Open Standards increase collaboration and productivity for owners and contractors as well as improve financial visibility.

Job Order Contract Open Standards

OpenJOC provides facilities management a means to consistently execute renovation, repair, and minor new construction on-time, on-budget, and per established requirements.

OpenJOC improves financial visibility

OpenJOC helps to assure compliance 

OpenJOC established a collaborative, win-win relationship between owner and contractor teams

OpenJOC can be monitored globally yet managed locally

OpenJOC embodies change management

OpenJOC provide a wealth of current and actionable facilities information, including detailed unit price line items.

OpenJOC is supported by cloud  technology

OpenJOC can be tailor to organization and local requirements

OpenJOC delivers competitive advantage through improved performance

OpenJOC delivers best value through proven process implementation

OpenJOC minimizes disruption through effective risk management

OpenJOC uses common terms and a common cost data environment (CCDE) 

OpenJOC clearly defines service level requirements and customer expectations

OpenJOC monitors key  performance indicators

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LEAN Construction Job Order Contracting Standards

LEAN Construction Job Order Contracting Standards

LEAN Construction Job Order Contracting Standards provide requirements, workflows, specifications, guidelines or characteristics that can be used consistently to ensure that renovation, repair, minor new construction projects and their associate materials, products, processes and services are fit for their purpose, and delivered on-time and on-budget, to everyone’s satisfaction.

LEAN Construction Job Order Contracting Standards

Contact us today to get your 80+page template…. (available to qualifying organizations only).

LEAN Construction Job Order Contracting Standards provide requirements, workflows, specifications, guidelines, and characteristics to improve outcomes for all.

 

Good JOC Program

Good JOC Program

What is a Good JOC Program ?

A Good JOC Program is …
✓ proactive,
✓ a team effort,
✓ based on mutual trust/respect and shared risk/reward,
✓ money well spent,
✓ an effective method of reducing the life-cycle cost of a building and/or built structure,
✓ in the best interest of taxpayers,
✓ complementary to organization objectives, &
✓ financially transparent.

Good JOC Program

 

Request a copy of an 80+ page Job Order Contract Operations Manual Template

via www.4BT.US – Independent, Objective, Best Value LEAN Job Order Contracting Solutions for Savvy Owners & Contractors.

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Our JOC Team helps Owners, Contractors, Subcontractors, Architectural&Engineering/Contract Management Companies and Cooperatives  develop, deploy, and execute LEAN best practice Job Order Contracts.
Six Key Features of Job Order Contract, Six Key Job Order Contract Features Assure Success

Six Key Job Order Contract Features Assure Success

Six Key Job Order Contract Features Assure Success for real property owners, contractors, and oversight groups.

Six Key Job Order Contract Features Assure Success

  1. Monitoring:   This includes initial joint site visits, regular site inspections, the use of key performance indicators and JOC specific software, as well as independent JOC Program audits.
  2. Record-Keeping:  A cloud based record-keeping system is essential for assuring collaboration, providing real time access to current and actionable information, and determining trends and patterns
  3. Locally researched construction cost data (versus national average cost data and location factors), based upon open standards and collaborative development/maintenance.
  4. Clearly defined roles, responsibilities, and workflows as defined by a written JOC Operation Manual / JOC Execution Guide.   Six Key Job Order Contract Features Assure Success
  5. Required and ongoing training:  Introductory and Advanced provided via regional, on-site, and virtual methods.
  6. Owner leadership, management, and support.

Request an 80-page JOC Operations Manual Template to receive information that goes well beyond Six Key Job Order Contract Features Assure Success …

 

Job Order Contracting can be a powerful tool in addressing physical infrastructure  maintenance management.   JOC can used across the facilities maintenance management spectrum.

Six Key Job Order Contract Features Assure Success
Leveraging JOC to move from reactive to proactive maintenance management results in fewer costly and highly disruptive emergency events, providing higher quality, greater customer satisfaction, and lowering overall costs.

via www.4BT.US – Independent, Objective, and Best Value LEAN Job Order Contracting Solutions for savvy owners and contractors.

 

Community-based Construction Cost Estimating

Community-based Construction Cost Estimating

Community-based Construction Cost Estimating …  The OpenCostTM Approach

Take advantage of several critical improvements relative to the collection, validation, use, and maintenance of detailed line item unit price cost data to improve construction outcomes.

Traditional cost data commonly available on the market is based upon national averages.   Localization factors are used to attempt to provide a reasonable approximately of construction costs in particular areas.   While this approach is fine for gross approximation, locally researched cost data provides significantly improved financial visibility.

Community-based Construction Cost Estimating

The OpenCost MethodologyTM  is a collaborative and ongoing cost estimation process.  The estimator (owner/contractor/A&E, etc.) leverages an OpenCostTM locally researched and fully detailed line item cost database as a baseline.    Participant experience and a site visit with all service providers and stakeholders lead to a detailed construction cost estimate.  A collaborative and potentially iterative process then occurs between the owner and contractor(s) on a detailed line item basis.  The standardized terms and data formats contribute to the all parties’ ability to generate the final and mutually approved cost estimates that truly reflects the desired scope of work.

Once the estimate is mutually approved the construction team uses the estimate for the development of the schedule of values, the cost loaded schedule, and management of the construction progress and costs within the limits of the estimate, the associated construction delivery method, contract, and detailed written operations or execution manual.

The OpenCost ApproachTM leverages industry standard terms and definitions expressed in plain English with minimal use of confusing acronyms or abbreviations.  All data is organized by the Construction Specifications Institute MasterFormat.

The OpenCostTM Approach provides the following features, benefits, and core defensible elements:

  • Consistent and localized labor cost by trade
  • Crews reviewed and updated
  • Appropriate materials and line items
  • Line items are reviewed for clarity and reasonableness to ensure basic building materials usage to common area quantities
  • Line items reflect approximate quantities according to a trade break down
  • Use of licensed CSI MasterFormat
  • Ability to create customized line items via changes to material, labor, and equipment, while maintaining core “parent line items”.
  • Line item modifiers associated with parent line items to accommodate for variations in quantities, locations, etc.
  • Continuous updating process with annual major updates.
  • Addresses line items used in 90% or more of common renovation, repair, and minor new construction projects.
  • Independent, objective, transparent, and auditable cost research processes
  • Costs reflect standard commercial construction specifications for the location
  • Developed for ease-of-use for any experienced line item estimator with no additional training required
  • Available via secure cloud access
  • Developed by experienced line item cost engineers, project managers, and life-cycle cost professionals
  • Incorporates input from all users.
  • Significantly greater financial transparency
  • Subjective values associated with each estimator can be compared against locally researched verifiable information, not with ballpark national averages or factored data.
  • Major reductions in errors, omissions, change orders, and legal disputes.
JOB ORDER CONTRACTING Solutions

JOB ORDER CONTRACTING Solutions

JOB ORDER CONTRACTING Solutions

JOB ORDER CONTRACTING Solutions should be designed for Owners and Contractors to drive the best possible outcomes and assure compliance.   As such, they must be independent, objective, fully transparent and NOT linked to a JOC consultant if the later is being paid a percentage fee and managing the JOC Program.

Job Order Contracting, or a JOC Program is NOT simply a procurement method that public and/or other organizations use to complete renovation, repair, and minor new construction projects.  A JOC Program is a LEAN Collaborative Construction Delivery Method.

JOB ORDER CONTRACTING Solutions

As such, the JOC Program MUST be directly managed by the real property owner to achieve optimal results and NOT managed by third party.  Outsourcing a JOC program to a third party may be an excellent method (if the program is designed and managed properly),  for an Owner to learn JOC and/or for Owners with total annual JOC construction values under $2M, but otherwise, Owners should provide direct leadership and support.

JOB ORDER CONTRACTING Solutions

Independent, best value JOC Programs and associated JOB ORDER CONTRACTING Solutions are capable of delivering more than 90% of projects on-time, on-budget, and to the satisfaction of all participants.

Job order contracts are awarded to a contractor(s) based upon BEST VALUE.   Selection criteria generally include technical qualifications, past experience and or demonstrated ability to perform requisite tasks,  small business/WBE, MBE status, and the associated co-efficient(s) bid by the contractor.

Subcontractors may or may not be allowed based upon the contract document.

JOC Programs, contract documents should address and/or include the following:

  • Maximum and minimum construction values in dollars for year and any associated option years (generally up to a maximum of four (4) option years.
  • Maximum and minimum construction value for individual JOC projects/task orders.
  • Required annual training (introductory and advanced) for ALL participants (including training for the owner BEFORE the JOC Program is designed)
  • A unit price book, UPB, consisting of locally research construction cost data in the form of unit price line items of sufficient quantity to address a minimum of 90% (dollar value) of the total construction cost of each JOC project/task order.   Generally a UPB  of 30,000-60,000 line items is sufficient. (Note: an excessive number of line items can create confusion, cause errors, and delay proper program implementation).   Each line time should be include a description in plain English using common terms as well as labor, material, and equipment cost details as appropriate.   Separate demolition line items as well as line item modifiers should also be provided.   Modifiers apply to the parent line items and address applicable variable such as cost, access, construction methods.  All line items should be organized by CSI MasterFormat and updated annually. (Note: a “national average” price book, even if used with “localization factors” will not provide sufficient information for JOC Programs to assure the best possible outcomes for all parties.)
  • Written JOC Operations Manual / Execution Guide as part of the Job Order Contract.
  • All requisite forms.
  • Specialized JOC technical specifications are generally NOT REQUIRED unless construction means and methods do not follow commercial construction standards for the area/region.  The Owners current technical specifications should be referenced and required via the contract.  Should the Owner not have technical specification, sources such as Masterspec and BSD Speclink are generally more than sufficient and can be modified per owner requirements.
  • Key performance indicators and other metrics to monitor JOC Program success must be part of the contract.
  • JOC specific Cloud Cost Estimating Software that is capable of noting priced (UPB) and non-prepriced line items within each JOC project/task order and reporting same in detail.

 Process involved when using JOB ORDER CONTRACTING Solutions

Requests for projects are made but the customer/building user(s) per the pre-approved forms and generally via the electronic cloud JOC cost estimating/management software.    The owner technical and procurement team reviews and clarifies the request (JOC RFP).   The owner forwards the request to the approved JOC contractor(s) and schedules a site visit and scoping meeting among all participants in which they will discuss the requirements, goals and further define the scope of work.  The owner (technical and procurement team) reviews the detailed line item estimate and if the proposal is above a set threshold compare the estimate to the internal owner estimate / internal government estimate, IGE.   The owner and contractor enter in negotiations and/or discussions as needed and the owner approves the JOC project/task order, or cancels the request.   On average, there should be no more than one or two iterations when reviewing the taks order.  If there are more, there is likely something wrong with the JOC process and/or JOC tools.

If approved, the contractor sets up a JOC kick-off meeting mobilized for the project.   The owners should visit and review progress regularly (daily in most cases).  Once completed the owner does and inspection and signs off on the project and the contractor provide the requisite final JOC package as required, or the owner provides a punch list for the contractor to address any issues.

JOB ORDER CONTRACTING Solutions

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Optimizing Construction Cost Estimating Outcomes

Optimizing Construction Cost Estimating Outcomes

Optimizing Construction Cost Estimating Outcomes requires experience, LEAN management practices, common data outcomes, metrics, and continuous improvement.

Optimizing Construction Cost Estimating Outcomes

The OpenCost Approach incorporates significant improvements into the collection, validation, use, & maintenance of detailed line item unit price Construction cost data.

Request our white paper to learn more about Optimizing Construction Cost Estimating Outcomes.

Below is a the Table of Contents for the 20-page document.

Contents

Introduction. 2

Detailed Construction Cost Data. 3

Traditional Construction Cost Methods. 4

Size of Typical Construction Cost Estimates & Unit Price Cost Books. 5

The OpenCostTM Approach. 6

Summary. 8

Appendix. 11

The Construction Estimating Conundrum.. 11

Line Item Estimating Details. 12

Choice of work Method. 12

Output of crew. 12

Cost of labor 13

Cost of Material 13

Addition for Overhead and Profit 14

Construction Estimator Skill Requirements for Detailed Unit Price Line Item Estimating. 14

Location. 16

Variability of Estimates. 16

Accurate Estimate – An Oxymoron. 17

Historical Data. 20

Optimizing Construction Cost Estimating Outcomes