Job Order Contracting Best Management Practices

Job Order Contracting Best Management Practices

Job Order Contracting best management practices should be applied throughout the life cycle of every program, contract, project, estimate, and work order.

  • Owner establishes a LEAN Job Order Program and selects vendors via a full and open best value procurement process:
    Minimum and maximum quantities or dollar values for annual construction and individual projects. A writtesn= operations manual as part of the contract detailing all roles, responsibilities, and requirements including but not limited to workflows, phases, and time, statements of work requirements, locally researched current and actionable cost data, specifications, or other descriptions that reasonably describe work requirements, forms, ordering procedures; and selection criteria used to provide awardees a fair opportunity to be considered.
  • During planning, procurement, and facilities professionals should work together to develop a clear
    statement of work (SOW).
  • Request a joint site visit to enable the development of detailed SOW and to provide sufficient information for the design builder to develop a detailed line-item proposals.
  • Owners should continuously seek design/builder and building user input to improve the efficiency and effectiveness of the ordering process.
  • Owner reviews the contractor’s proposals and accepts or notes issues and requests changes or additional information.
  • Owner accepts the proposal and issues a Notice to Proceed (NTP) or rejects the proposal.
  • Use a locally researched unit price book (UPB) to assure cost visibility and validity and collaborative technology to lower administrative burden as well as assure compliance.
  • Adhere to all preestablished timelines and formats and cost limitations
  • Require initial and ongoing training for ALL participants to assure adequate knowledge to operate withing a dynamic interactive environment.
  • Use simplified procedures and supporting technologies and documentation when issuing orders under multiple award contracts.
  • Establish and maintain a performance-based work environment with all work being fixed price.
  • Maintain good communications between planning, procurement, and project delivery teams throughout the project lifecycle.
  • Assure ALL projects follow the same program methodology.
  • Enable all participants to discuss administrative and technical matters and suggest improvements.
job order contracting
Locally Researched Construction Cost Data

job order contracting best management practices

via Four BT, LLC – www.4bt.us – Robust LEAN construction planning, procurement, and project delivery solutions.

 

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GREEN Facilities Management and Procurement Practices

GREEN Facilities Management and Procurement Practices

 

Planning, construction, and renovation to create more resilient and environmentally compatible buildings minimize costs and save lives.

  1. Disasters caused $210 billion worth of damage around the world in 2020 – a significant increase on 2019’s figure of $166 billion.
  2. Rebuilding after a disaster has become prohibitively expensive

 

 

 

Green FM

Green Facilites Management

 

 

Via Four BT, LLC – www.4bt.us – Integrated planning, procurement, and project delivery solutions for the built environment.

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Locally Researched Detailed Construction Cost Database

Understanding the Value a Locally Researched Detailed Construction Cost Database

Understanding the value of a locally researched detailed construction cost database is important to any real property owner, architect, engineer, or builder.

CREATION

A significant amount of time and experience is needed to develop a verifiable unit price cost database that reflected local market conditions and can be easily used and maintained.   The process is complex and involves significant deep and breadth of knowledge and capability, including cost research, cost engineering, data architecture and database expertise, and an understanding of repair, renovation, maintenance, and new construction techniques, materials, and equipment.

An actionable local market detailed line-item unit price cost database (UPB), unlike national average cost database, assures a clear understanding of local market costs and conditions and the diversity of trades and associated costs for “fringes”.  Construction techniques commonly used for each type of construction activity are carefully considered as well as associated productivity.

A fuller understanding of locally researched detailed construction cost data BEFORE procurement and project execution best communicates a shared understanding of the required Detailed Scope of Work, and plays a critical role in mitigating change orders, disputes, and cost overruns.

Input prices:

Labor • Surveys local labor markets as well as the most current local federal and state labor data.
Materials • Surveys of commodities, local building materials supply, and building product manufacturers.
Equipment • Surveys construction equipment rental rates, operating costs, and transportation costs.

Construction Cost Data
Construction Cost Data

VALUE

When integrated with robust LEAN planning, procurement, and project delivery mechanisms and solid teaming arrangements, a locally researched cost database has proven to consistently deliver quality projects of all types, on time and on budget.

On a detailed line-time locally researched construction cost data based can prove the specification of the hundreds, if not thousands of detailed tasks and associated component of labor, material, and equipment, for a typical repair, renovation, and new build activity.

It is important to recognize the importance of detailed line item UPBs and furthermore that 1.) not all UPBs provide the same value, and 2.) national average cost databases do not provide the equivalent cost representation whether “location indexes” or “location factors” are used.

Construction Cost Changes
Construction Cost Changes

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Carbon Modeling Tool, Carbon Modeling Tool - Facilities Lifecycle, Facilities Lifecycle

Carbon Modeling Tool – Facilities Lifecycle

Carbon modeling tool for the facilities capital delivery process.

  •  Assess carbon over the whole life of constructed assets
  •  Align carbon and costs
  •  Develop carbon options
  •  Capture data and monitor carbon targets
  •  40% reduction in construction carbon emissions
Components The two components of the Carbon Planning Tool are:

·        Carbon Modelling Tool – top-down whole life carbon assessment and optioneering, used during the project appraisal phase to enable quick and simple carbon assessment to inform the solution selection process. LINK

·        Carbon Calculator – detailed bottom-up whole life carbon assessment, incrementally built up during the delivery phase, following selection of a preferred project solution option. The final Carbon Calculator assessment is used to create data points in the carbon models within the Carbon Modelling Tool. LINK
 The construction carbon modeling tools estimates emissions from a variety of sources covering the whole life of a project. These emissions sources are described below, and are split into capital carbon (which occurs, at the time of project implementation – most often the construction of the project, which is known as the first intervention), and lifecycle carbon (which occurs over the asset’s lifetime, which is 100 years within ERIC).

Capital Carbon

Category Description
Materials Carbon associated with materials used for the project, including extraction, processing, manufacture and distribution – this is also known as cradle to gate embodied carbon.

This step excludes carbon associated with the installation and use of the materials during the construction process, which should be fully captured in the Installation section. However for several earthworks materials, some construction processes may be included in the emissions factor applied (where noted in descriptions).
Transport Carbon associated with the transportation of resources. Three subcategories are assessed:

·        Materials – delivery to site

·        People – travel associated with both contractor and non-contractor personnel to site

·        Plant – delivery of plant from supplier to site

Carbon associated with the manufacture, servicing and repair of plant is not included within the calculator.
Installation Carbon associated with the construction process. Three subcategories are assessed:

·        Site establishment – fuel/energy use during construction

·        Plant use – fuel use during construction

·        Waste – transportation off-site to dispose of excess materials and other construction process waste such as arising from the site.

Carbon associated with the final disposal of waste is not included within the calculator.

Lifecyle Carbon

Category Description
Operational carbon Carbon associated with the ongoing operation of each asset/sub-asset. Four subcategories are assessed:

·        Use – use/manning of assets, based on travel to/from the site

·        Maintenance – planned maintenance activities, based on an assessment of travel to/from the site and use of plant and materials where required

·        Repair – an assessment of unplanned repair activities, based on an assessment of travel to/from the site and use of plant and materials where required

·        Energy – power consumption
Refurbishment carbon Carbon associated with interventions at the end of an asset/sub-asset’s useful life that extend the useful life.
Replacement carbon Carbon associated with re-building an asset/sub-asset at the end of it’s useful (or if refurbished, extended useful) life.
Demolition carbon Carbon associated with the demolition of life-expired asset/sub-assets. Three subcategories are assessed:

·        Materials Waste –  transportation off-site of demolished materials

·        People – travel to/from site

·        Plant – transportation to/from site and fuel use

Carbon associated with the final disposal of waste is not included within the calculator.
Residual carbon The carbon emissions associated with assets that extend beyond the 100-year project lifespan. The residual carbon is presented and subtracted from the whole life carbon total to produce a total net emissions figure for the project.

Figure below outlines the options available to estimate the capital carbon emissions for earth used

carbon tool

 

(Source of above – Whole Life (Construction) Carbon Planning Tool, Instruction: LIT 14284                                                                      Published: 02/09/2021)

 

via Four BT, LLC, www.4bt.us – Integrated construction planning, procurement, and project delivery solutions that drive consistent best value outcomes.

Construction Area Cost Factors

Area Cost Factors and Construction Cost Estimating

Should Areas Cost Factors be used for Construction Cost Estimating?

Time to ReTHINK, ReSHAPE, ReBUILD
 

There are multiple False Assumptions associated with Area Cost Factors. As a result, more than 40 years after the introduction of area cost factors (ACFs), the federal government and most other public sector facilities owners are no closer to its goals of having construction cost estimates match actual construction costs, or properly adjusting for regional (location based) variances.

Definition of Area Factor – A multiplicative value used to reflect relative geographical cost differentials. They are used in the development of construction cost budgets and project estimates.

The use of area cost factors (ACFs) for capital planning budgeting or estimates for construction repair, renovation, and new build projects remains a fundamentally flawed approach.  Examples of areas cost factors and economic factors include, RS Means City Cost Cost Index, ENR, GSA, and DoD Area Cost Factors.  It’s been over 40 years since ACFs and the computerized use of ACFs have been introduced, and their initial concept and their use remains a significant barrier to construction cost visibility and transparency.  ACFs have proven to be flawed, and not capable of reliable providing valid estimations of construction costs for specific locations.

There is overwhelming statistical significance and audit reporting that the cost estimates used to for physical infrastructure decision-making are highly and systematically misleading. The result is the misuse of billions of dollars.

ACFs, and other forms of location factors, cost indices have been evaluated by several independent sources and through actual practices and proven not to be capable of providing a workable budget and/or reasonable estimate for repair, renovation, or new build construction projects.

Area cost factors (ACFs) are typically used to adjust national average cost data, and/or historical costs to a particular location, or to use a previously developed cost estimate for a different location.   The use a single factor to adjust ­all costs in an estimate which discounts the different impacts that local and regional markets have on labor, material, equipment, and productivity. Errors in estimation caused using these adjustment factors result in a corresponding cumulative impact on the overall error of estimates. Area Cost Factor assumptions erroneously posit that productivity is constant for all locations. In fact, many data publishers make the disclaimer that “productivity is not considered” in their location factors.  Similarly, applying a cost index to labor is a poor practice as labor costs vary widely by trade. Currently available cost factors are simply incapable of accurately representing local market factors and costs.  Variances in labor, material, equipment, productivity, and means and methods cannot be accounted for by simply using a cost factor.  Indeed, using cost factors result in errors of -25+% to +40%” at best and 150% to 6x at worst depending upon their specific application.

The net effect of using ACFs is lack of confidence among both the user base, and those responsible for obtaining and approving sustainment and new construction funding. Significant government overpayments on both large capital projects and the numerous on-going repair, renovation, and maintenance projects remain the norm.

Real property owners would be far better served using verifiable and current locally researched detailed line-item construction cost data for all construction related planning, procurement, and project delivery activities. Furthermore, adoption of best value LEAN construction planning, procurement, and project delivery would not only provide higher cost visibility and transparency, but also assure the consistent delivery of quality of sustainment and new construction projects on-time and on-budget. T

DOD and congressional decision-makers may not have reliable estimates to inform their decisions regarding appropriations and the oversight of projects. – GAO

References

  • 1981, NBSIR 81-2250 Estimating Area Cost Factors for Military Construction Projects: A Computerized Approach
  • 1985, Cost overruns in public projects.
  • 1990, Military Planning and Design Funding Requirements, Report AROIRI
  • 2016, Investigation in Construction Cost Estimation Using Monte Carlo Simulation AFIT Scholar J.D Bucholtz
  • 2016, Indefinite Delivery/Indefinite Quantity project selection framework using stochastic techniques
  • 2018, Correlation between cost growth and procurement methods on USACE construction projects
  • 2018, Action Needed to Increase the Reliability of Construction Cost Estimates, Defense Infrastructure, GAO-18-101 The Chapter 5 paper presents a statistical analysis on the performance of twelve existing
LEAN Job Order Contracting

Acquisition Research: Creating Synergy for Informed Change – Federal Contracting Officers – The Need for Improved Expertise

“Contracting officers need improved expertise in both understanding and conducting price/cost analysis. The current gap in knowledge contributes to agencies missing cost saving opportunities as well as ventures to improve acquisition outcomes.
Exercising appropriate price analysis methods that come from adequate price analysis guidance and training would address this gap.”   – 14th Annual Acquisition Symposium

 

f

 

  • “A number of contract files that we reviewed did not demonstrate that prices paid were reasonable due to inadequate FAR price analysis methods.”
  • “…it appears that contracting personnel do not know how to appropriately perform and document price analysis.”
  • “In particular, two types of price analysis—references to market research and IGCEs—were performed and documented incorrectly more than 50% of the time.”
  • “Previous price documentations were unjustified 43% of the time and 40% of price competition was found to be inadequate.”
  • “Lack of justification in estimating the labor rates as follows:
     Statements that historical rates were used without reference to any contract or data in file to back it up.
     Escalation rates were applied to future years with no reference to the source of the escalation rate.
     One escalation factor used was simply based on a quote in the DoD COTR handbook that stated “escalation between 2 and 3% is generally considered reasonable.”
     IGCE creator used rates from a schedule with similar job titles, not similar services.
     Unusual quantitative method used to determine an acceptable range of labor rates. Estimator took 4 quotes, averaged them, and then created a range by adding 20% to the average price, and subtracting 20% from the average price. No details why estimator used a +/- 20%. Made the range too large and not useful.
     Only provided an estimated total dollar amount without a breakdown of labor mix, hours, or rates.”
  • “Though an IGCE was substantiated and could be used in justifying the reasonableness of the offered price, it had not been used. In the pricing memo, the IGCE is incorrectly stated as RS Means.”
  • “Examples of the incomplete comparison with IGCE or use of unreliable IGCEs found in the file reviews:
     Though a construction contract used RS Means to substantiate the IGCE, the winning price came in at $265k versus the IGCE estimate of $452K. The winning price only represents 58% of the IGCE. No documentation in the file justified why the IGCE was so high, despite plenty of offers alongside the winning price to justify the lower price.

Request full report….

 

 

 

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BENEFIT from Job Order Contracting

How to BENEFIT from Job Order Contracting

The first step in learning how to benefit from Job Order Contracting (JOC) is to understand the following facts:

#1 Not all JOC Programs, “JOC Consultants”, JOC vendors are the same.

#2 Paying a Percentage of JOC construction volume will always cost your organization more.

#3 A full time “JOC consultant” should never be used as there is no need for the cost, and the practice distances the owner from the design-builder. and does little to build internal knowledge and capabilities.  Third parties should only be used to provide software, unit price cost data, and appropriate services such as training and auditing.

#4 JOC should NEVER be used to simply speed the procurement of repair, renovation, maintenance, and new construction project.  Used to its full benefit, JOC is a LEAN integrate project delivery method.  JOC can integrate siloed planning, procurement, and project delivery teams and processes to maximize productivity and drive down total costs %20-30%.

#5 Always use locally researched detailed line-item construction cost data to support your JOC Program.  DO NOT use location factors or economic factors for developing or updating the unit price book (UPB).

BENEFIT from Job Order Contracting
BENEFIT from Job Order Contracting

 

Reach and contact us if it’s time to maximize the benefits from your JOC Program… or if you are just setting up JOC for the first time!

 

 

A high performing, best value JOC Program should….

• Reduce or eliminate traditional procurement inefficiencies including administrative burden, project delivery times, and total costs.

• Integrate planning, procurement, and project delivery for all internal and external participants in a collaborative, consistent manner.

• Create a fully transparent (full cost and technical visibility) and competitive environment throughout the planning through execution lifecycle

 

via Four BT, LLC – www.4bt.us – Integrated LEAN construction planning, procurement, and project delivery solutions that work!
BEST VALUE Job Order Contracting Program

BEST VALUE Job Order Contracting Program

Powerful, yet easy-to-use job order contracting services and tools that simplify the JOC process and support best value repair, renovation, and new construction outcomes.

JOC Construction Best Management Practices
• JOC Procurement Processes
• JOC Contracts and Compliance Considerations
• JOC Cost Estimating
• JOC Program Design, Implementation, Operations and Management

best value job order contract

PROCESS & DATA MINING

Public sector procurement and facilities management professionals are re-evaluating their Job Order Contracting and capital planning processes, and setting ambitious process improvement goals
It’s not just about cost savings but delivering the best value possible in concert with fiduciary requirements.

  • Increase productivity
  • Reduce costs
  • Improve satisfaction
  • Assure compliance

96% – Percent of Satisfactory Projects
87% – Percent of JOC Projects Completed on Time
91% – Percent of JOC Projects Completed on Budget 

www.4bt.us

If you think it would be beneficial to speak, book 15-minute introductory discussion.  Set up a 15-minute introductory call.

Underground utilities cost management

Underground Utilities- Inefficiencies and Damage – $100B Annually

America’s underground utilities, equally as important as buildings and other structures, are mismanaged and a major source of economic waste.  The net cost is approximately $100B+ annually.

The primary issues, which could be easily resolved with appropriate leadership and commitment, are …

  1. Lack of integrated LEAN planning, procurement, and project delivery process deployment.
  2. Failure to use locally researched detailed unit price repair, renovation, maintenance, and construction task data, inclusive of labor, material, equipment, and productivity.

Put more simply, the direct costs and indirect costs of sending crews to repair damaged pipes, cables, pumps, switchgear, etc. are not being managed properly.

Our health, safety, and security, as well as economy is depended upon underground utilities as well as buildings, airports, mass transit, ports, dams, and roadways.

 

www.4bt.us – Integrated LEAN planning, procurement, and project delivery solutions, including locally researched cost data.

 

Why LEAN Construction Matters

WHY LOCALLY RESEARCHED LINE-ITEM COST DATA IS CRITICAL TO PRODUCTIVITY

LOCALLY RESEARCHED LINE-ITEM COST DATA IS CRITICAL TO PRODUCTIVITY

• Reliable, shared source of truth of both cost and scope of work
• Financial visibility and transparency
• Lower risk

Dod Real Property Management

It’s really that simple.   Without a shared locally researched cost knowledgebase, and an associated robust, integrated planning, procurement, and project delivery process it’s virtually impossible to consistently deliver quality repair, renovation, maintenance, or new builds on-time and on-budget.

Learn more… www.4bt.us

Public Sector Construction Productivity, Unlock Public Sector Construction Productivity

Unlock Public Sector Construction Productivity – A White Paper

Unlock Public Sector Construction Productivity[1]  with Proven Strategies: A White Paper

Improving Public Sector Construction
First, a few things to consider.

  1. Software is never going to be able to deliver a solution for your organization without addressing fundamental issues first.  Take BIM for example.  It has done virtually nothing to measurably impact the repair, renovation, maintenance, and construction of the built environment.  It has neither reduced economic nor environmental waste.  Software is only useful if it is based upon a robust strategy, supported by robust processes and workflows that maximize leverage of internal and external resources via collaboration and common mutually beneficial goals.
  2. Your most value asset is your people and your partners.  Provide the leadership and tools needed to empower your staff and external partners to solve problems themselves and achieve best value outcomes.
  3. The risk of change is high, however, not pursuing fundamental change is potentially catastrophic.

Here’s opportunity to do something different.

Robust tools and processes have existing for decades that can assure quality repair, renovation, maintenance, and new builds are consistent delivered on-time and on-budget.   Two of these solutions are Integrated Project Delivery (IPD) and Job Order Contracting (JOC).  Many instances of their deployment, however have not achieved anticipated results.   Both IPD and JOC are not the issue, but rather the implementing organization and/or service provider have been the cause of “failure”.

Let’s focus on JOC.  Internal and independent audits have found that many Job Order Contracting deployments have unfortunately degraded into a simple means of speeding procurement and also carry excessive administration costs tied to a percentage of construction costs.  Some have suffered from the excessive use of consultants, while others have failure to abide by fundamental procedures and implement appropriate safeguards against waste and even fraud.

LEAN Job Order Contracting is now available.   As the name implied,  this programmatic uses LEAN principles as a foundation.  Furthermore, focus is placed upon empowering owners and their awarded JOC contractors to build and retain LEAN knowledge and capabilities and to be self sufficient.  There are no “JOC administrative fees” based upon total JOC construction value, but rather simple software subscriptions and training costs.

LEAN Job Order Contracting includes the following elements:
• Comprehensive, verifiable, locally researched unit price cost data (no use of location or economic factors) with line-item modifiers, separate demolition line items, and  and task descriptions written in plain English without the excessive use of acronyms or abbreviations.
• Local prevailing wage rates or Davis-Bacon as required
• Long-term Mutually Beneficial Relationships
• Powerful, Easy-to-Use, Collaborative Technology that simplifies the JOC Process
• World-class Training and Support for Owners, Design-Builders, Trades
• Fully Compliant
• KPIs Supporting Continuous Improvement
• Faster, Higher Quality, and Lower Cost Project Delivery
• Integrated Project Planning, Procurement, and Delivery
• Complete Workflow Management and Reporting, including Forms, Approvals, and Timing
• At a Glance Budget Visibility – Committed/In Process, Available, Expended
• Tracking of MBE/WBE/HUBZONE Goals
• Multi-level, Multi-format Training – On-site, Remote, and Self-paced Tutorials – Intro, Advanced, Refresher
• Common Source of Truth
• Full Document Management with check-in/check-out and version control), not simple file sharing/access
• Collaborative Proposal Reviews and Automated Estimate Comparison (fully auditable verification of all line items, pricing, and quantities)

If you can’t describe what you are doing as a process, you don’t know what you’re doing.
-W. Edwards Deming

Steps to consistent LEAN construction delivery success:

1. Assure your project planning, procurement, and delivery initiative will have a financial benefit.
2. Empower an internal champion to own the initiative.
3. Build a cross functional team with clear responsibilities to produce quality, efficient outcomes.
4. Align requirements to desired solution.
5. Provide adequate governance and continuously improve over time.

Most public sector organizations skip step #1 and rush to procurement and support their facilities management needs with software solutions  with qualitative evaluations provided by marketers such as… “This is really innovative” …. Or “This will reduce risk” … instead of stating and assuring a clear, quantitative financial benefit, and thus they miss a massive opportunity.

While the procurement and build phase gets the most attention form public sector owners, a project’s success is determined before actual procurement.   Preconstruction is where owners organizations can best identify opportunities to improve overall outcomes. Research has shown an average cost saving of 20% can be achieved by applying a consistent robust programmatic process throughout all phases, beginning with planning.

Clear, concise communication from the very beginning among participants, and building a strong foundation in the form of an initial and detailed scope of work (SOW), mitigates the potential for catastrophic project failures down the road. The time and energy invested in developing and deploying a strategic, organization-wide  program-centric LEAN process unlocks opens the door to increasing the overall efficiency avoids issues during the build phase.

Putting preconstruction planning into action
Here is a proven process to optimize your preconstruction process and set all future repair, renovation, and new build projects up for success.

1. Audit your current process
Audit your current preconstruction process and perform a gap analysis identify areas of weakness. Whether you assume to an effective process in place and perhaps not everyone is using it effectively, or you know you don’t have a defined consistent, and well communicated process, it’s important to start from a known baseline. A complete view of your current preconstruction process as it exists is needed to set the stage for optimization and/or complete change.

2. Find the right collaboration tools
The only proven method of setting up any type of construction project up for success is to get all project participants and stakeholders on the same page, early on in the process. Furthermore, the only tools available to consistently accomplish goal are support the integration of  planning, procurement, and project delivery teams.
A written Operations Manual and/or Execution Guide is also needed.  This document, as part of the Contract, details all phases, requirements, roles and responsibilities, and workflows from initial planning through procurement, project delivery, close-out, and the warranty period.
All integrated planning, procurement, and project delivery frameworks share several core components. One of these is common data environment (CDE) in which information is clearly communicated in a standardized, easily understood and accessible manner. A CDE supports the creation of a verifiable detailed work scope (SOW). A component of a CDE specific to cost visibility is a locally researched detailed line-item unit price book (UPB). A UPB provides a powerful tool for an owner to validate contractor and subcontractor quotes as well as assure a common understanding of the detailed SOW. Lump sum quotes from general contractors and/or subs provide relatively little value with respect to technical or cost visibility.

3. Procurement
Once a single source of truth is available to all participants and stakeholders via the above, the traditional problems and inefficiencies cause by siloed data sets are virtually eliminated and the process can proceed to the procurement phase.
Integrated planning, procurement, and project delivery methods also have the benefit of establishing long-term relationships between owners and service providers as well as expediting quality project delivery.  For LEAN JOC, a process can be procured and begun in weeks. The process simply requires the owner to set up a joint site visit to enable the owner and the contractor to share requirements and enable the creation of a detailed cost proposal.

4. Remove manual processes wherever possible
While “process is king”, technology does play a key role. The role of technology is to simplify processes and help to support consistent and lower cost deployment of processes. If the process is “right” and continuously monitored and improved upon, technology is simply an enabler, allowing internal and external teams to increase efficiency by automating tedious, manual processes. Furthermore, delays and errors caused by emails, spreadsheets, or file folders are minimized.

5. Build trust and strengthen relationships
Whether you’re an owner, general contractor, or subcontractor, positive long-term working relationships that are rooted in trust and communication are a necessary to increasing productivity.   LEAN processes can support development and growth of these relationships.
80-90% of projects fail by being late, over budget, or otherwise complete to the dissatisfaction of one or more team members. Robust LEAN programmatic processes and tools can get that down to 10% or lower!  With appropriate process deployment and management, loweing administration costs 75% and increased productivity 3X is a real possibility.

Contact us to discuss…

  • A process to assure alignment of your internal and external teams and maximized productivity.
  • How integrated platforms compare to traditional, siloed processes and the advantages you can expect to achieve.
  • How to better connect teams from planning, to procurement and throughout project delivery.
  • How an integrated platform exposes teams to critical information they can leverage for increased project success.

48% of rework is due to poor project data and miscommunication – 2018 Construction Disconnected, FMI)’

 

 

[1] We’ve had success with a wide range of federal, state, county and local government departments and agencies including universities, secondary schools, public works, joint bases, hospitals, and others.  Our clients have reduced administration costs by 75% and improved achieved 3X productivity gains.

 

via Four BT, LLC – Integrated LEAN planning, procurement, and project delivery solutions for the public sector.

 

 

 

 

Typical JOC Process

Typical JOC Process

The Typical JOC Process:

  • Confirm Project is Suitable for JOC
  • Request for Proposal / Site Visit
  • Scoping / Joint Site Visit
  • Contractor Proposal  Preparation and Submission
  • Owner/Client Proposal Review
  • Proposal Acceptance/Rejection
  • Owner/Client Notice to Proceed to Contractor
  • Preconstruction Kick-off Meeting
  • Construction Performed
  • Regular Updates and Inspections
  • Final Inspection
  • Close Out
  • Warranty Period

 

Scoping

  • Visit the jobsite and document conditions
  • Establish project goals
  • Determine if design services are required
  • Define building systems and quality of materials
  • Identify client’s responsibilities
  • Determine project schedule and major milestones
  • Identify safety, security and hazardous material issues

 

Proposal Preparation

  • Select construction task from approved UPB (unit price book) – Use a locally researched unit price book (DO NOT USE LOCATION FACTORS or ECONOMIC FACTORS)
  • Contractor
  • Contractor determines and submits line items and quantities for the project based on scope. (Owner may prepare an internal estimate (Internal Government Estimate (IGE), based upon regulations.)
  • For UPB pricing, the line items are totaled and the JOC coefficient/factor is applied
  • Contractor send proposal to owner/client for review

Typical JOC Process

 

Contact for more… www.4bt.us

Why LEAN Construction Matters

Job Order Contracting Services via a Cooperative

Ordering Job Order Contracting Services via a Cooperative requires adequate market research on the part of public sector organizations.  Many cooperatives are managed by private corporations and charge excessive fees to contractors and/or owners.

Best management practice would be to use JOC Cooperative Programs that charge 2% of less of construction value.  Furthermore, select a JOC Program that is fully managed by a government entity.

job order contracting services
Job Order Contracting COOPERATIVE

 

via Four BT, LLC – www.4bt.us – LEAN, integrated construction planning, procurement, and project delivery solutions.

Construction Cost Estimate Checklist, Construction Cost Estimates, How to Review Construction Cost Estimates

How to Review Construction Cost Estimates

Savvy owners and design builders know how review construction cost estimates.   The process is collaborative and involves cost estimators, facilities management, and procurement professionals.

Construction cost estimate review checklist:

[ ] The estimate assumptions and basis are appropriate.

[ ] The scope of work is sufficiently detailed to reflect the physical and functional requirements of the owner/client.

[ ] The estimate fully reflects the detailed scope of work (SOW) for the project on a line item basis using locally researched line item labor, material, and equipment costs and anticipated productivity.

[ ] Line items used and quantities are correct.

[ ] Unit rates are correct, and applied markups are appropriate, compliant with applicable regulations, and reasonable.

Learn more…. Set up an 15-minute introductory discussion…

 

A professional review of Construction Cost Estimates assures actionable information, as well as, technical and cost visibility.

construction cost estimate accuracy

Creating a JOC Coefficient

Creating a JOC Coefficient?

Creating a JOC coefficient is an important part of any Job Order Contract.  Contractors must evaluate multiple factors in addition to the associated use of their own capabilities and resources.

Specific instructions as to what may be included in a JOC coefficient should also be listed in detail in the associated Request of Proposals (RFP) for Job Order Contracting construction services.

Below is an example of such items.

Items included in a JOC coefficient (also known as a “Bid Factor”).

1. Labor (Both during Normal Work Hours and Outside of Normal Work Hours)
2. Materials
3. Equipment
4. Subcontractor costs
5. Subcontractor mark-ups
6. General / Prime Contractor Overhead
7. General / Prime Contractor Profit and risk
8. Payment Bond premium(s) (please note that Payment Bonds are required for task order
projects valued over $35K;
9. Social security contributions
10. General insurances
11. Workmen’s compensations insurance
12. State unemployment insurance
13. Federal unemployment insurance
14. Mobilization and demobilization costs
15. Site cleanup
16. Supervision
17. Quality control
18. Transportation of contractor’s personnel to, from, and within the job site
19. Shipping of all materials to the jobsite
20. Lodging and per-diem
21. Adjustment factors to account for small jobs
22. Incidental tools and equipment
23. Submittals
24. Job Order preparation costs
25. All contingencies
26. General Requirements (Division 01 – CSM Masterformat)
27. All requirements of the Contract
(Note: Quality, locally researched unit price books will already include social security contributions, general insurances, workmen’s compensations insurance, state unemployment insurance, and federal unemployment insurance.

Creating a JOC coefficient

 

Four BT, LLC – Robust, integrated JOC Solutions – www.4bt.us

Creating a JOC coefficient

 

 

 

Job Order Contracting is a LEAN Process

Job Order Contracting is a LEAN Process

Job Order Contracting is a LEAN process and should never be used to simply speed procurement or bypass critical assurances against improper practices.

Many public sector organizations don’t have a complete view of their JOC processes.  FIVE issues associated with inefficient and ineffective JOC PROCESSES.

  1. Higher Costs
  2. Less Organizational Efficiency
  3. Productivity Loss 
  4. Lack of Compliance
  5. Risk of Fraud

Unfortunately, many organizations within the State, County, and Municiple sectors have used job order contracting (JOC) improperly.  Government procurement and facilities management teams and their design-builders have not been working directly together in a collaborative, full transparent manner, to achieve mutually beneficial best value outcomes.   Instead, many organizations have elected to hire full time “JOC consultants” and pay excessive JOC administration fees in attempt to simply speed procurement and virtually outsource their facilities repair, renovation, maintenance, and construction requirements.

Outsourcing has no role in facilities management if built structures are critical to an organization’s mission.  Owners must provide leadership and support and be directly involved with their service providers.

 

Below are figures from a JOC Audit by a City Comptroller. It clearly shows issues that can arise from not implementing JOC properly.

how not to run a joc program
How NOT to run a JOC Program?
Job Order Contracting is a LEAN Process
Too Many JOC Consultants

 

Learn more about how to implement LEAN JOC and assure best management practices….

 

Job Order Contracting is a LEAN Process
Job Order Contracting is a LEAN Process

 

With owner leadership and support it is not hard to find and fix process issues.  Most savvy State, County, and Local Governments are currently revaluating their JOC Programs.

Why LEAN Construction Matters

Trends in Job Order Contract Process Improvement and Cost Management

Current trends in Job Order Contracting Process Improvement are enabling improved cost management.

 

  1. Collaborative planning, procurement, and project delivery teams
  2. Improve owner leadership and support
  3. Less dependence upon third party consultants
  4. No excessive fees for JOC products and services based upon a percentage of construction volume
  5. Mutually beneficial outcomes for owners and design-builders

Facilities Management Training Needed

via Four BT, LLC – www.4bt.us – Locally researched detailed line item construction cost data and integrated LEAN construction delivery solutions.

Why LEAN Construction Matters

How NOT to run a JOC Program

Sometimes it can be beneficial to look at how not to run JOC Program!

how not to run a joc program
How NOT to run a JOC Program – 1

How not to run a JOC Program - 2

(Graphics Source:  JOC Audit, City of Long Beach, City Auditor)

via Four BT, LLC – www.4bt.us – Locally researched detailed construction cost data and LEAN JOC Program solutions.

Facilities Sustainment

Facilities Sustainment – Public Sector

Most public sector agencies do not have an efficient facilities sustainment capability.

All the tools and support services are readily available to enable…

• Clearer roles and responsibilities for all participants and stakeholders

• Financial visibility and transparency

• Reduced administrative burden and cost

• Incentivizing all participants to use appropriately competent people

• Integrate planning, procurement, and project delivery to reduce costs, change orders, and project timelines

• Leverage actionable information to make better informed decisions.

 

Facilities Sustainment Facilities SustainmentFacilities Sustainment

Facilities Sustainment

 

Learn more?

Contact Us
First
Last

 

Public Sector Job Order Contracting

Public Sector Job Order Contracting – Increased levels of competence

Public sector Job Order Contracting is poised to reach a significantly higher level of performance via increased levels of competence combined with an integral set of innovative LEAN tools and services.

Increased levels of competence are integral to implementing changes that will result in 30%-40% cost savings supported by greater cost visibility and transparency and improved collaboration with design-builders.

Robust outcome-based processes and solution sets are now capable of driving high quality work, faster, at a lower cost, and with lower administrative burden.  The benefits, however, can only be achieved with competent actors with leadership skills capable of program level oversight.   Owners must assure that appropriate knowledge and experience is leveraged throughout all phases of repair, renovation, maintenance, and new builds.

 

Public Sector Job Order Contracting Public Sector Job Order Contracting Public Sector Job Order Contracting  Public Sector Job Order Contracting Public Sector Job Order Contracting

Contact to learn more…

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First
Last

 

safety

Traditional construction procurement methods can endanger building safety

Traditional construction procurement methods can endanger building safety, while an integrated, less adversarial approach can consistently improve safety and quality, while significantly reducing cost and delivery time.

construction procurement methods

 

“The way in which procurement is often managed can reduce the likelihood that a building will be safe […] Issues at this stage, for example inadequate specification, focus on low cost or adversarial contracting, can make it difficult (and most likely, more expensive) to produce a safe building.”

-2017, Building a Safer Future, Independent Review of Building, Regulations and Fire Safety:
Interim Report

 

Traditional procurement methods are little more than a race to the bottom whereby the objectives of low price and fast delivery are the primary drivers.   Independent reviews have clearly stated that “The way in which procurement is often managed can reduce the likelihood that a building will be safe… Issues at this stage, for example inadequate specification, focus on low cost or adversarial contracting, can make it difficult (and most likely, more expensive) to produce a safe building.”

The public sector is wary of collaborative procurement, planning, and project delivery, as well as poorly informed on the topic.  The realization of the fact the owners, design-builders, and all other participants must share in risk and reward has been particularly difficult for public sector procurement professionals.

Robust, proven methods such as LEAN Job Order Contracting and Integrated Project Delivery can consistently deliver quality projects on time and on budget when appropriately implemented and management.  The integrated planning, procurement, and project delivery methods avoid these the pitfalls of traditional procurement by clearly defining roles, responsibilities, tools, and deliverables via written operations manuals/execution guides and associated long term contracts, early planning, and accurate information, inclusive of locally researched detailed line-item construction task data and costs, to reduce the potential for failures, errors, misunderstandings, and disputes.

construction procurement methods

Case studies have clearly demonstrated how collaborative procurement can lead to safer, better- quality outcomes, reducing risks and improving value on public sector and private sector construction projects.

construction procurement methods

The role of public sector procurement professionals must include working together with in-house facilities management and design-builder teams throughout the planning, procurement, and project delivery phases.

While technology should not be a driver, embedding these new LEAN methods into web technology can significantly reduce deployment costs, improve consistency, and aid in management, continuous improvement, and compliance.

All the tools and services are readily available to leverage, as soon as public sector leadership and procurement professionals are ready to mitigate the safety issues associated with traditional procurement methods, not to mention rampant economic and environmental waste.

Feel free to contact me for more information.

Remember…Traditional construction procurement methods can endanger building safety!

 

Fundamental change is now required across the public sector to put effective systems in place that ensure buildings and other forms of physical infrastructure are built and maintained so that they are safe for use initially and for decades after the original construction. The mindset
of doing things as cheaply as possible and passing responsibility for problems and shortcomings to the next people in the job must end.

We all must focus on doing the right things because it is our responsibility to be stewards of the structures and the environment.

 

• regulation • guidance • roles and responsibilities • competence; • process • compliance • quality 

 

  1. Are the means for assessing and ensuring appropriate levels of competence clear and adequate?
  2. Is clarity of roles and responsibilities sufficient?
  3. Are there adequate means of compliance assurance, and redress for non-compliance?

 

Understanding LEAN Job Order Contracting

Understanding LEAN Job Order Contracting

Why is understanding LEAN Job Order Contracting important to every public sector real property owner?

Effective management of owner/supplier relationships is the key to achieving and maintaining best value repair, renovation, maintenance, and new build outcomes.  LEAN Job Ordering is the only proven method of achievement.

Public sector procurement professionals need to demonstrate transparency in decision-making and equal treatment of potential suppliers if there is to be any improvement in built environment repair, renovation, maintenance, and new build outcomes.

The simple fact is that Job Order Contracting is poorly understood, and traditional deployments have been far from uniform and have not delivered anticipated outcomes.   In fact, many JOC Programs have led to less motivation on the part of design-builders to truly work toward mutually beneficial outcomes and “gaming the system” is not unheard of.

Learn more…

 

Why LEAN Construction Matters

DoD Real Property Management Failures

The lack of continuous competent leadership is the root cause of environmental and economic woes impacting the DoD’s real property portfolio and its mission.

https://www.militarytimes.com/news/2022/02/01/nearly-a-third-of-defense-department-structures-have-exceeded-their-lifespan/

The DoD has NEVER implemented a robust, system-wide process to monitor and manage planning, procurement, and project delivery for repair, renovation, maintenance, and new construction.  It short, there is a basic lack of management as well as very little financial visibility and transparency.

The DOD has at least a $137 billion deferred maintenance backlog.   The DOD fails to have accurate maintenance cost estimates and cannot efficiently allocate available funding to conduct adequate maintenance.   The DOD’s failure to implement a sustainment management system remains an unacceptable reality.

 

Tools and support services are readily available to support efficient facilities planning, procurement, and project delivery to enable asset life-cycle total cost of ownership management.  The missing link is the lack of leadership commitment to do so.

Dod Real Property Management
DoD Real Property Management Lacks Purpose and Leadership

 

Public Sector LEAN Job Order Contracting

Public Sector LEAN Job Order Contracting

Public Sector LEAN Job Order Contracting provides significant benefits over both traditional project delivery methods and commodity JOC solutions.

 

Public Sector LEAN Job Order Contracting

 

The only Knowledge-based JOC Program Information Management System

Four BT, LLC (4BT) is redefining how public sector organizations plan, procure, and execute facilities repair, renovation, maintenance, and new construction projects.

Discover how 4BT’s robust LEAN programmatic process, embedded in easy-to-use cloud solutions empower organizations to consistently complete quality projects on-time and on-budget, with full financial visibility and compliance.

4BT’s OpenJOC(TM) 4BT-PEP solution is a game changer and proven way to mitigate economic and environmental waste, while also reducing administrative burden and cost.

Public sector organizations that have migrated to LEAN Job Order Contracting have reduced JOC administration costs by 75% and increased productivity 3x!

Contact us to learn more about why 4BT’s clients and partners have successfully migrated to LEAN Job Order Contracting.

 

Why LEAN Construction Matters

Considering a Job Order Contract?

Here are a few items for review when organizations are considering a job order contract or hoping to improve one.

 

1. Assure JOC program processes and structure mutually benefit your organization and awarded JOC contractors and can be implemented without the need for paid on-site “JOC consultant”.

2. Prequalify potential JOC contractors. Prequalification should consider past performance working, experience, as well as being licensed and registered.

3. Contracts and individual Projects/Work Orders within JOC should have established dollar limits.

4. During the selection of JOC contractors through a RFQ (Request for Qualifications) process, establish an evaluation committee to evaluate qualifications based only on criteria specified in the RFQ and assign qualifications scores to each contractor.

5. Develop written policies and procedures to prevent conflicts of interest for evaluation committee members, as well as any JOC Program participants and stakeholders.

6. All prequalified contractors invited to bid should submit sealed bids based on one or more adjustment factors / coefficients to the unit prices listed in the approved JOC unit price book (UPB).

7. The approved JOC unit price book should be locally researched and organized using CSI Masterformat.  Factors should NOT be used for localization or annual updating of the unit price book (i.e. no use of economic cost factors).

8. Contract terms for prequalified contractors should not exceed 12 months, with the option of extending or renewing for two more 12-month periods, up to a maximum of five years.

8.  Require awarded JOC contractors to perform work themselves and allow subcontractors only on a preapproved/per project/work order basis.

9. Establish a process to prequalify all subcontractors, requiring them at a minimum to be licensed, insured, and have sufficient relevant experience. All subcontractors used by the primary contractor must be prequalified and approved.

10. Any JOC consulting firms hired should not be associated with approving construction projects/work orders if they can benefit from the activity, i.e. the consultant is being paid a percentage of total construction value.

11. Assure all the organizations JOC project managers work directly for the organization, and or are working solely in the interests of the ogranization.

12.  When JOC contractors bid on a JOC project, utilize a set of documents including a unit price catalog and pre-established unit prices, designated forms, and any other information necessary to describe the scope of work for the project/work order in detail.  Any architect, engineer or consultant retained by the organization to assist in these areas should not be eligible to participate in the bid, or as noted, in the approval process.

13. Obtain an independent estimate for each JOC project, of for each project over an established dollar value and compare that to the contractor’s to ensure proposed prices are not unreasonable or undesirable.   At the very least assure every project/work order is reviewed by an independent party for JOC Program compliance.

14. Before initiating a project through the JOC program, determine if it will result in savings over traditional/other procurement methods.

15. Non-catalog items should not exceed 10% of the total project cost estimate. Require the contractor to provide three written quotes for all non-catalog items.

16. Certify that each project/work order is completed to the organization’s expectations and track all related key performance indicators. Develop a formalized reporting process (project status, timeline, budgets, issues, etc.) that will provide JOC program management and with a critical status of program operations. This includes proper reporting controls to monitor spending authority. This will create a level of oversight and accountability at all levels of the program.

considering a job order contract

considering a job order contract

 

Improving facilities management outcomes

Building Trust & Connection are CRITICAL to improving Facilities Management Outcomes

Improving facilities management outcomes requires building trust & connection.

Real property owners and FMers must become trusted partners with service providers (architects, engineers, and builders) and their building user customers.

This requires solid leadership both internally and externally with a focus upon long-term, relationship and mutually beneficial outcomes.

While many, if not most organizations may claim these as current practices, their current processes, and workflows prove otherwise.

Repair, renovation, maintenance and new build planning, procurement, and project delivery professionals and associated processes operate independently. This is further complicated by the fact that service partners also generally operate in silos, each with its own goals and information environments.

An integrated approach, with all parties focusing upon shared best value outcomes, is a sustainable and advantageous environment for everyone.

All the tools and support services are readily available to enable LEAN facilities/built environment life-cycle management. The real barriers are lack of leadership and enablement.

Anyone ready to change…. Let’s talk.

 

www.4bt.us

Improving facilities management outcomes

16 Things Every Contractor Should Know When Bidding a Job Order Contract, ISO 55000, ISO 55001

GAO Report on Need for Federal Sector FM Standards and ISO 55000

Key Elements of the International Organization for Standardization (ISO) 55000 Standards

(Source-GAO Summary of Key Elements of the International Organization for Standardization (ISO) 55000 Standards-GAO-19-57)

ISO 55000 Section Key elements

Establishing context of the organization

• Align the organization’s asset management system to its organizational objectives given the
organization’s purpose, needs, and requirements
• Ensure that the organization’s asset management strategy and criteria for asset management decision making address external and internal stakeholder requirements and expectations
• Determine the scope of the asset management system, considering, among other things, the organization’s objectives, asset portfolio, and structure
• Establish, implement, maintain, and continually improve an asset management system, including a strategic asset management plan that documents how the system supports organizational objectives

Promoting leadership

• Demonstrate leadership commitment to the asset management system
• Establish an asset management policy to guide the organization’s management strategy, set
asset management objectives and govern asset management activities including a commitment to satisfy applicable requirements and continually improve the asset management system
• Ensure that the responsibilities and authorities for asset management are assigned and communicated within the organization

Developing support

• Identify and determine strategies for addressing risks and opportunities related to the
organization’s assets and the asset management system’s ability to achieve the organizational objectives
• Develop asset management objectives while considering organizational objectives and requirements the organization faces from stakeholders, laws and regulations, and financial constraints
• Integrate achieving asset management objectives into other organizational-planning activities including finances, human resources, and other support functions
• Develop a strategic asset management plan that documents how the organization plans to achieve its asset management objectives including its method and criteria for decision making and prioritization, and the processes to be employed to management assets

Operations

• Determine and provide for the resources needed to establish, implement, maintain, and continually improve the asset management system
• Identify the skills necessary for the different personnel roles in the asset management system and ensure that the persons used in those roles have the appropriate competencies, education, training, and experience
• Implement strategies and establish requirements to ensure and evaluate that employees are aware of the asset management policy and the contribution of their work activities to the asset management system’s success
• Determine the need for internal and external communication relevant to the asset management system in order to enable effective decision making and stakeholder engagement
• Determine information and data requirements needed to support effective asset management including quality, attribute, collection, analysis, and evaluation requirements
• Document and control information required to ensure the effectiveness of the asset management system and compliance with applicable laws, regulations and policies governing the organization and its asset management system
• Plan, implement and control the processes needed to implement its asset management system
• Monitor performance of the asset management system including anticipating changes in performance and mitigating adverse effects
• Manage risks associated with outsourcing activities related to the asset management system including determining, evaluating and establishing governance over outsourced activities

Performance evaluation

• Determine what aspects of the asset management system need to be monitored and measured, determine how this monitoring and measurement will take place, and report on the performance of the asset management system
• Establish an internal audit program to conduct audits at planned intervals to determine compliance of the asset management system with the organization’s own requirements and the ISO standard
• Establish management reviews, at planned intervals, of the organization’s asset management system to ensure its continuing suitability, adequacy and effectiveness

Improvement

• Establish processes to identify non-conformities within the asset management system, identify root-causes, and implement remedies or corrective actions based on evaluation of these non- conformities
• Establish processes using results of internal audits and management reviews to proactively identify failures in the asset management system and evaluate the need for preventative action
• Continually improve the suitability, adequacy and effectiveness of the organization’s assets, asset management strategy, and asset management system

 

Note: The ISO 55000 standards are made up of three documents collectively referred to as “ISO 55000.”  The table summarized the requirements against which organizations are measured when pursuing certification, which are contained within the document officially known as ISO 55001.

 

Via Four BT, LLC – www.4bt.us

Improving Public Sector Contruction Productivity

GAO Report on Federal Facilities Management

Federal REAL PROPERTY OWNERS Could Benefit from Additional Information on Leading Practices

The GAO has been issuing reports for decades concerning the next for ALL federal agencies to improve their facilities management practices.  While the same can be said for ALL State, County, and Local Government and other public sector organizations, the GAO’s focus is federal.

 

The GAO reviewed the asset management practices of six federal agencies:

  1. the U.S. Coast Guard (Coast Guard);
  2. U.S. Army Corps of Engineers (Corps);
  3. General Services Administration (GSA);
  4. National Park Service (Park Service);
  5. National Aeronautics and Space Administration (NASA); and
  6. U.S. Forest Service (Forest Service).

While each of the six federal-agency frameworks GAO reviewed included some of the key characteristics associated with known best management practices (see below), none had all, and none had a robust, organization-wide deployment or management ability.

A

 

Federal departments and agencies should be required to have a comprehensive approach to asset management that incorporates strategic planning, capital planning, and operations, or maintaining leadership support, promoting a collaborative organizational culture, and evaluating and improving asset management practices.

Without a more comprehensive approach, as described above, federal agencies do not have the knowledge needed to maximize the
value of their limited resources.   The reality is that financial visibility is limited at best and transparency simply not there.

 

Contact me for the full report.

via www.4bt.us

Improving Public Sector Contruction Productivity

 

Uncategorized

LEAN Facilities Management Processes

 

“Some changes are so slow that you don’t notice, others are so fast that they don’t notice you”.

Ashleigh Brilliant

 

 
 

LEAN Construction Delivery and supporting cloud-based technology is gradually transforming how we do business on a day-to-day basis.

  1. Change your relationships
  2. Change how you create, share, & reuse information
  3. Change your outcomes

Those who seize the opportunity of change taking place will survive, evolve, thrive.

LEAN collaborative construction delivery, a common data environment, and supporting cloud-based technology profoundly change:

  1. the teams work, and relationships between clients, vendors, and stakeholders,
  2. how people and organizations are measured and compensated,
  3. the tools that are used,
  4. our work lives.

The role of LEAN Construction Delivery (through its key players: architects, engineers, surveyors, builders, managers, owners) is to support communication and cooperation, and drive optimal project outcomes on a consistent based using a robust, core programmatic process.

Technology should NEVER be the driver for decision-making.  Focus upon technology is a costly distraction.  Every organization must first assure a sound programmatic process that is alignment with its overall mission.

Take BIM for example, or more specifically the “M”.   For the most part the “M for Modeling” and 3D visualization has been the sole focus and driver as opposed to the   “M” for management.  The latter has been neglected.   Process should ALWAYS be the primary focus, and that’s exactly where LEAN comes into play.

Technology itself should be neutral but can, if effectively used to enable people accomplish their objectives more efficiently, support lower cost, consistent deployment of robust organizational processes, activities, and goals.

LEAN processes and principles t create a requisite environment of trust, transparency and accountability among all participants and stakeholders to achieve common. mutually beneficial goals.

The 4BT OpenJOCTM and OpenCostTM platforms support just that.

For example, open job order contacting, supported within the OpenJOC platform, can consistently delivery 90% or more of all repairs, renovation, maintenance, sustainability, and minor new construction projects on-time, on-budget, and to everyone’s satisfaction.  This is unheard of, and certainly not the case for the vast majority of AECOO community practitioners (architects, engineers, contractors, owners, operators/operations).

The 4BT-CE Building in Cloud system supports and embeds LEAN processes and shares and manages actionable information to drive better decision-making, compliance, and best value outcomes.

4BT-CE Building in the Cloud is accessible using a PC, or Tablet.

 

Why LEAN Construction Matters

How LEAN Job Order Contacting could improve facilities repair, renovation, and maintenance efficiencies

LEAN Job Order Contacting provides tangible benefits over both traditional JOC implementation and repair, renovation, and maintenance practices.

Public sector facilities management and procurement professionals face significant challenges as the pressure to “do more with less” continues to mount.

Solutions must be simple to use, compliant, and provide measurable gains in productivity.

Unfortunately, most current JOC Programs fail to embed LEAN processes and come with excessive costs for implementation and use.  In many cases, they even require an on-site “JOC consultant” for ongoing operations.

Contact us for an introductory discussion to learn more.  www.4bt.us

Improving Public Sector Contruction Productivity
LEAN Drive Consistent High Performance
Efficient Facility Systems Service Life Management, Facility Systems Service Life

Facility Systems Service Life

A thorough understanding of facilities system service life is critical to efficient life-cycle asset management of any real property portfolio.  Request the full list here.

acility Systems Service Life

Design and build costs represent only a fraction of the total cost of a building.  Efficient management of routine and preventive maintenance, as well as repairs, renovations, and adaptations is critical to any organization.  Life-safety, financial stability, environmental impact, and the ability to support the organizational mission are all dependent upon efficient life-cycle management of the built environment.

Facility Systems Service Life

Facility Systems Service Life

 

Harness the POWER of Locally Researched Granular Cost Data

Harness the POWER of Locally Researched Granular Cost Data

Owners, designers, engineers, builders, and facilities managers can harness the POWER of Locally Researched Granular Construction Cost Data

Harness the power of verifiable local construction cost data

“Data-driven” repair, renovation, maintenance, and new build planning, procurement, and project delivery drive huge benefits. In short, the results are consistent delivery of quality projects on time and on budget, when linked with robust LEAN processes.

Call for a quick 15-minute introductory discussion on how to leverage locally researched unit price cost data to make faster, smarter, and more efficient decisions.

Beware, you will have to reimagine your traditional relationships and workflows in a way that leverages data and programmatic LEAN methods to yield 3X productivity gains and significant cost savings.

Public Sector Construction and FM Grade F, Why LEAN Construction Matters

Public Sector Construction and FM Grade F for Cost Management – A Bizarre and Unaccountable Lack of Accurate Information

The reason Public Sector Construction and FM Grade F for Cost Management is simple… the lack of owner leadership and competency.  The net result has been a continuing decades old legacy of environmental and economic waste.  The public sector could easily save 30%-40% of its budgets in this area with the basic implementation of robust, integrate planning, procurement, and project delivery methods.

Multiple studies by industry and the GAO note that over 80% of the failures in public sector facilities repair, renovation, and new builds are due to owner lack of effective leadership.  Studies in the area date back to 1969, and yet there has been virtually no improvement.

More than half the time wasted during construction, the study teams have found, is attributable to poor management practices.

By common consensus and every available measure, the United States no longer gets its money’s worth in construction, the nation’s largest industry. Since the closing years of the Sixties, productivity in construction has been declining at a rate many industry leaders find appalling. 

SUMMARY REPORT OF THE CONSTRUCTION INDUSTRYCOST EFFECTIVENESS PROJECT, 1983

Until owner leadership mandates strategic cooperation and associated core LEAN processes, including the use of locally researched detailed unit price cost data, public sector facilities management will remain in the dark ages.

For example, in 1969 many became concerned about the escalating costs of construction.  By 1972, a Business Roundtable was created, and the Roundtable’s Construction Committee carries on the work which began in 1969.

The resulting Construction Industry Cost Effectiveness Project outlined the need for quality, efficiency, productivity, and cost-effectiveness in the industry, and steps for achievement.  While the depth, breadth, and intensity which produced this report was noteworthy, forward progress remains unattainable and so, the abysmal record of public sector FM continues to this day,

Efficient management of buildings and other forms of physical infrastructure is critical to the economy and the environment as a whole and therefore to everybody.  The build environment impacts costs, prices, international competitiveness, and our safety.  Yet these vital resources remain poorly managed and repair, renovation, maintenance, and new build dollars are not being used effectively.

To claim that inefficiency is not due to owners, but the result of all participants such as architects, engineers, and builders, fails to recognize a simple truth…. owners are responsible for their buildings/physical infrastructure and pay the bills.

      Shortcomings of Management 1The Heavy Costs Of Poor Safety Performance 2 The Perverse Effect Of Scheduled Overtime 3 Under trained Foremen And Demotivated Workers 4 Pinching Pennies On Training And Education 5 Cold Shoulder For Improved Technology 6 Modern Management Systems: A Little-Used Tool

SUMMARY REPORT OF THE CONSTRUCTION INDUSTRYCOST EFFECTIVENESS PROJECT, 1983

 

Improving Public Sector Contruction Productivity

 

Path to Improvement

  1. Measure productivity
  2. Adopt and implement robust LEAN, integrated planning, procurement, and project delivery processes
  3. Assure cost visibility and transparency – Require locally researched detailed unit price cost data
  4. Mandatory initial and ongoing training for ALL participants on LEAN processes
  5. Embed processes into collaborative technology

 

 

Learn more?  Request an introductory call.

Why LEAN Construction Matters

Facilities Preventive Maintenance

Facilities Preventive Maintenance requires the following information to minimize downtime and unscheduled maintenance and repairs.

  • Installed model and features of each system.
  • Manufacturer’s schedule for routine preventive maintenance, inspections, condition monitoring (predictive tests) and adjustments required to ensure proper and economical operation and to minimize repairs. Provide instructions stating when the systems should be retested. Provide manufacturer’s projection of preventive maintenance workhours on a daily, weekly, monthly, and annual basis including craft requirements by type of craft. For periodic calibrations, provide manufacturer’s specified frequency and procedures for each separate operation.  Define the anticipated time required to perform each of each test (workhours), test apparatus, number of personnel identified by responsibility, and a testing validation procedure permitting the record operation capability requirements within the schedule. Provide a remarks column for the testing validation procedure referencing operating limits of time, pressure, temperature, volume, voltage, current, acceleration, velocity, alignment, calibration, adjustments, cleaning, or special system notes. Delineate procedures for preventive maintenance, inspection, adjustment, lubrication and cleaning necessary to minimize repairs. Repair requirements must inform operators how to check out, troubleshoot, repair, and replace components of the system. Include electrical and mechanical schematics and diagrams and diagnostic techniques necessary to enable operation and troubleshooting of the system after acceptance.
  • Include potential environmental and indoor air quality impacts of recommended maintenance procedures and materials
  • Lubrication Data-Include the following preventive maintenance lubrication data, in addition to instructions for lubrication required, including a table showing recommended lubricants for specific temperature ranges and applications, charts with a schematic diagram of the equipment showing lubrication points, recommended types and grades of lubricants, and capacities, lubrication Schedule showing service interval frequency.
  • Cleaning Recommendations-Provide environmentally preferable cleaning recommendations. Provide the manufacturer’s recommended procedures and instructions for correcting problems and making repairs for the installed model and features of each system. Include potential environmental and indoor air quality impacts of recommended maintenance procedures and materials
  • Troubleshooting Guides and Diagnostic Techniques-Provide step-by-step procedures to promptly isolate the cause of typical malfunctions. Describe clearly why the checkout is performed and what conditions are to be sought. Identify tests or inspections and test equipment required to determine whether parts and equipment may be reused or require replacement
  • Wiring Diagrams and Control Diagrams-Provide point-to-point drawings of wiring and control circuits including factory-field interfaces. Provide a complete and accurate depiction of the actual job specific wiring and control work. On diagrams, number electrical and electronic wiring and pneumatic control tubing and the terminals for each type, identical to actual installation configuration and numbering.
  • Repair Procedures-Provide instructions and a list of tools required to repair or restore the product or equipment to proper condition or operating standards.
  • Removal and Replacement Instructions-Provide step-by-step procedures and a list of required tools and supplies for removal, replacement, disassembly, and assembly of components, assemblies, subassemblies, accessories, and attachments. Provide tolerances, dimensions, settings, and adjustments required. Use a combination of text and illustrations.
  • Spare Parts and Supply Lists-Provide lists of spare parts and supplies required for repair to ensure continued service or operation without unreasonable delays. Special consideration is required for facilities at remote locations. List spare parts and supplies that have a long lead-time to obtain.
  • Repair Work-Hours-Provide manufacturer’s projection of repair workhours including requirements by type of craft. Identify, and tabulate separately, repair that requires the equipment manufacturer to complete or to participate
  • Real Property Equipment-Provide a list of installed equipment -information usually listed on manufacturer’s name plate, include, as applicable, the following for each piece of equipment installed: description of item, location (by room number), model number, serial number, capacity, name and address of manufacturer, name and address of equipment supplier, condition, spare parts list, manufacturer’s catalog, and warranty.
  • Warranty Information-List and explain the various warranties and clearly identify the servicing and technical precautions prescribed by the manufacturers or contract documents to keep warranties in force. Include warranty information for primary components of the system. Provide copies of warranties.
  • Extended Warranty Information-List all warranties for products, equipment, components, and sub-components whose duration exceeds one year. For each warranty listed, indicate the applicable specification section, duration, start date, end date, and the point of contact for warranty fulfillment. Also, list or reference the specific operation and maintenance procedures that must be performed to keep the warranty valid. Provide copies of warranties.
  • Personnel Training Requirements-Provide information available from the manufacturers that is needed for use in training designated personnel to properly operate and maintain the equipment and systems.
  • Testing Equipment and Special Tool Information-Include information on test equipment required to perform specified tests and on special tools needed for the operation, maintenance, and repair of components. Provide final set points.
  • Testing and Performance Data-Include completed prefunctional checklists, functional performance test forms, and monitoring reports. Include recommended schedule for retesting and blank test forms. Provide final set points.
  • Field Test Reports and Manufacturer’s Field Reports-Provide a copy of Field Test Reports and Manufacturer’s Field Reports submittals documented with the required approval.
  • Contractor Information-Provide a list that includes the name, address, and telephone number of the General Contractor and each Subcontractor who installed the product or equipment, or system. For each item, also provide the name address and telephone number of the manufacturer’s representative and service organization that can provide replacements most convenient to the project site. Provide the name, address, and telephone number of the product, equipment, and system manufacturers
  • SCHEDULE OF OPERATION AND MAINTENANCE DATA PACKAGES- The type of O&M data needed for any product, system, or piece of equipment depends upon the complexity of that item. If not, specify the appropriate Data Package number in the technical section using the Data Package Number from the choices 1 through 5 as follows: below. Data Package 1 is typically used for architectural items requiring simple but specific maintenance and replacement; for example, acoustical ceiling, floor tile or carpeting system. Data Package 2 is used for an item that is less simple; for example, an item having a motor and some sequence of operation such as a refrigerated drinking fountain. Data Package 3 is used for a complex piece of equipment, having a specific troubleshooting sequence, but one which does not require an operator on watch, for example, HVAC temperature controls. Data Package 4 is used for an extremely complex piece of equipment, having an extensive sequence of operation, a complex troubleshooting sequence and one requiring frequent operator attention; at least for start-up and shutdown. Examples of this case would be small boilers and small diesel generator sets. Data Package 5 is used for electrical equipment, components or systems on which wiring, and control diagrams are needed for operation, maintenance or repair. Examples of this case are 400 Hz frequency converters, annunciator panels and cathodic protection systems.
  • Provide the O&M data packages specified in individual technical sections. The information required in each type of data package follows:
    • Data Package 1 a. Safety precautions and hazards b. cleaning recommendations c. Maintenance and repair procedures d. Warranty information e. Extended warranty information f. Contractor information g. Spare parts and supply list
    • Data Package 2 a. Safety precautions and hazards b. Normal operations c. Environmental conditions Lubrication data e. Preventive maintenance plan, schedule, and procedures cleaning recommendations g. Maintenance and repair procedures h. Removal and replacement instructions i. Spare parts and supply list j. Parts identification k. Warranty information l. Extended warranty information m. Contractor information
    • Data Package 3 a. Safety precautions and hazards b. Operator prestart c. Startup, shutdown, and post-shutdown procedures d. Normal operations e. Emergency operations f. Environmental conditions g. Operating log h. Lubrication data i. Preventive maintenance plan, schedule, and procedures j. cleaning recommendations k. Troubleshooting guides and diagnostic techniques l. Wiring diagrams and control diagrams m. Maintenance and repair procedures n. Removal and replacement instructions o. Spare parts and supply list p. Product submittal data q. O&M submittal data r. Parts identifications. Warranty information t. Extended warranty information u. Testing equipment and special tool information v. Testing and performance data w. Contractor information x. Field test reports
    • Data Package 4 a. Safety precautions and hazards b. Operator prestart c. Startup, shutdown, and post-shutdown procedures d. Normal operations e. Emergency operations f. Operator service requirements g. Environmental conditions h. Operating log i. Lubrication data j. Preventive maintenance plan, schedule, and procedures k. Cleaning recommendations l. Troubleshooting guides and diagnostic techniques m. Wiring diagrams and control diagrams n. Repair procedures o. Removal and replacement instructions p. Spare parts and supply list>q. Repair work-hours r. Product submittal data s. O&M submittal data t. Parts identification u. Warranty information v. Extended warranty information w. Personnel training requirements x. Testing equipment and special tool information y. Testing and performance data z. Contractor information . Field test reports
    • Data Package 5 a. Safety precautions and hazards b. Operator prestart c. Start-up, shutdown, and post-shutdown procedures d. Normal operations e. Environmental conditions f. Preventive maintenance plan, schedule, and procedures g. Troubleshooting guides and diagnostic techniques h. Wiring and control diagrams i. Maintenance and repair procedures j. Removal and replacement instructions k. Spare parts and supply list l. Product submittal data m. Manufacturer’s instructions n. O&M submittal data o. Parts identification<p. Testing equipment and special tool information q. Warranty information r. Extended warranty information s. Testing and performance data t. Contractor information u. Field test reports v. Additional requirements for HVAC control systems
Facilities Operations and Maintenance Data Package

Facilities Operations and Maintenance Data Package

What should be in a Facilities Operations and Maintenance Data Package?Operations and Maintenance Plan

  • Safety precautions and hazards
  • Cleaning recommendations
  • Maintenance and repair procedures
  • Warranty information
  • Extended warranty information
  • Contractor information
  • Spare parts and supply list
  • Environmental conditions
  • Lubrication data
  • Preventive maintenance plan, schedule, and procedures
  • Removal and replacement instructions
  • Parts identification
  • Operator prestart
  • Startup, shutdown, and post-shutdown procedures
  • Normal operations
  • Emergency operations
  • Operating log
  • Troubleshooting guides and diagnostic techniques
  • Wiring diagrams and control diagrams
  • Testing equipment and special tool information
  • Testing and performance data
  • Field test reports
  • Operator service requirements
  • Repair workhours
Efficient FM Ecosystem

Creating an Efficient FM Ecosystem – Key to Owner/Design-builder Alignment

Creating an efficient FM ecosystem is critical to fostering owner and design/builder alignment.

Make critical physical infrastructure improvements that
benefit generations to come.

Efficient FM Ecosystem

 

  1. Adopt a robust enterprise strategy
    • Don’t “reinvent the wheel”, take advantage of current available LEAN integrated planning, procurement, and project delivery tools for all repair, renovation, maintenance, and new build requirements (examples: Integrated project delivery and LEAN job order contracting)
  2. Continuously build and retain knowledge
    • Lasting progressive change comes from people within the organization who buy into and carry out needed reforms.  Training and education must be continuous, and empower participants to innovate and scale up ideas
  3. Common Data Environment
    • Define glossary of terms and definitions
    • Locally researched detailed unit price book organized using CSI Masterformat
  4. Leverage collaborative technology
    • Embed adopted processes into technology
    • End reliance upon spreadsheets, paper files, and emails
  5. Focus best value outcomes from functional, environmental, and economic perspectives

 

Learn more?  Set up a quick 15-minute exploratory call.

 

lean job order contracting

via 4BT.us

Construction Spending for Public and Private Sectors

Construction Spending for Public and Private Sectors

Construction Spending for Public and Private Sectors

via Four BT, LLC – Proven LEAN construction delivery solutions including locally researched granular unit price line-item databases, integrated planning, procurement, and project delivery, support services, and collaborative technology.  www.4bt.us

Construction Spending for Public and Private Sectors

Construction Change Orders Are Due to Poor Information

Eighty percent of Construction Change Orders Are Due to Poor Information

It’s not surprising that eighty percent of construction change orders are due to poor information early in the process.

LEAN construction planning, procurement, and project delivery is the only way to consistently minimize the number and impact of change orders.

With processes such as integrated project delivery, IPD, and LEAN job order contracting owners and design-builders receive the following benefits:

  • Early and ongoing information sharing
  • Cost visibility and transparency (via locally researched detailed line-item construction cost data)
  • Defining roles and responsibility leading to mutually beneficial outcomes
  • Full compliance and traceability

Learn more?

facilities preventive maintenance, Public Sector Facilities Preventive Maintenance

Public Sector Facilities Preventive Maintenance – Financial and Technical/Financial Visibility Criticality

Public sector facilities preventive maintenance is critical to efficient facilities management, however, rarely performed with financial and technical visibility and transparency.

 

What is it?

Preventive maintenance (PM): The systematic and cyclic check, inspection, and correction of minor deficiencies, as well as reporting of deficiencies beyond the scope of preventive maintenance.  PM may include the minor accomplishment of maintenance and repair.

How is it typically done?

Most, if not all, public sector real property owners have extraordinarily little visibility into facilities preventive maintenance costs or granular associated task line times.

For example, owners may require a preventive maintenance activity and an associate cost from a contractor.  This cost is general provided as a lump sum, for example “XX day inspection and maintenance of 60 ton chiller- $XXXXX.XX dollars”.   The only source of cost information is from the service provider.    Then net result is that owners are paying 30%-40% more than needed.

What if?

What if each building system component where not only identified and associated with the following information, but also linked to an associated detailed and locally researched unit price book with associated labor, material, equipment costs and productivity information?

  • Building component system or type of building equipment group, i.e. Electrical (ELEC), Heating Ventilation, Air Conditioning (HVAC)
  • Type of equipment, i.e. Chiller, Transformer…
  • Further definition of equipment by number
  • Frequency and the specific list of detailed maintenance tasks to be performed
  • Line items detailing each associated individual task and cost component

Example – 80 Ton Centrifugal Chiller – Preventive Maintenance

1. Lubricate drive couplings.
2. Check and correct alignment of drive couplings.
3. Lubricate motor bearings (non-hermetic)
4. Lightly lubricate vane control linkage bearings, ball joints and pivot points. DO
NOT LUBRICATE the shaft of the vane operator.
5. Remove refrigerant in accordance with manufacturer’s instructions. Sample
test the refrigerant and oil to verify compliance with the Air Conditioning and
Refrigeration Institute standards.
6. Perform spectro-chemical analysis of compressor oil annually to determine
bearing conditions and replacing them, as necessary.
7. As oil testing indicates drain and replace oil in compressor oil reservoir
including filters, strainers, and traps. Manufacturers typically recommended that oil should be changed after the first year of operation and every five years thereafter.
8. Review the Material Data Safety Sheets (MSDS) for proper disposal of used oil. If appropriate, recycle oil at an authorized station.
9. Change the oil filter, clean strainer.
10. Drain and replace oil in purge compressor.
11. Drain and replace oil in purge gearbox.
12. Change refrigerant filter/drier on cooling line to motor (hermetic). Check moisture indicator sight glass and if moisture present find source of water leak.
13. Clean all water strainers in the system.
14. Inspect relief valves and piping. Check for valve for corrosion or foreign material and replace valves. Valves are safety devices for equipment and personnel, DO NOT attempt to repair or recondition. Increase valve inspection frequency if equipment is installed in a corrosive environment.
15. Check pressure and temperature transducers against gage on both the oil, refrigerant and water side systems.
16. Inspect evaporator and condenser tubes.
a. Evaporator tubes should be inspected and cleaned of scale. Inspect
and clean temperature sensors and flow switches.
b. Condenser tubes should be inspected and cleaned. Condenser
tubes from open tower systems may have contamination or hard
scale.
c. Excessive corrosion, scaling, erosion and algae typically indicate
improper or lack of an adequate water treatment program. Consult
water treatment standard for proper procedures.
17. Test for leaks per manufacturer’s instructions. Refrigerant leak detection can be conducted with an electronic halide leak detector, ultrasonic leak detectors or a soap bubble solution will be used along with dry nitrogen to pressurize chiller. If leaks are not able to be stopped or corrected, report leak status to supervisor.
18. Pull vacuum on refrigeration machine in accordance with manufacturer’s instructions. Add refrigerant as required per specifications.
19. Megger compressor and oil pump motors and record readings.
20. Check dash pot oil in main starter.
21. Tighten all starter, control panel, motor terminals, overloads, and oil heater eads, etc. Loose connections can cause voltage spikes and overheating leading to malfunctions and failures.
22. Check all contacts for wear, pitting, etc.
23. Check and calibrate overloads, record trip amps and trip times.
24. Check and calibrate safety controls.
25. Clean up the work area. Properly recycle or dispose of materials in accordance with environmental regulations.

 

Set up a 15-min introductory call…

Get in touch…

 

job order contracting lessons

Improve Job Order Contracting with 4BT

Improve Job Order Contracting with 4BT

If you are a public organization using JOC, it may be time to rethink, rebuild, and improve Job Order Contracting Program with 4BT.

 

LEAN Job Order Contracting, exclusively provided by 4BT, delivers best value via locally researched unit price cost data, LEAN process integration, enabling collaborative technology, and support services with the LOWEST IMPLEMENTATION and JOC ADMINISTATION COSTS.

In addition to being the lowest cost solution, so more of your dollars go to actual construction, you get unique capabilities to assure efficient JOC Program setup and management, as well as build and retain internal knowledge and capabilities.

Please contact me at your earliest convenience to learn how you save up to 10x on your JOC Program costs, while assuring complete financial visibility, transparency, and compliance.   Our clients have also increased productivity 3x!

  • Foster greater transparency
  • Enable better informed decision-making
  • Cost savings opportunities
  • Current, locally researched, verifiable, granular repair, renovation, and new build cost data
  • Mitigate waste, abuse, and fraud
  • Simplify JOC
  • Do more work with less!

Set up a 15-minute introductory call.

 

 

Improve Job Order Contracting with 4BT
Improve Job Order Contracting with 4BT

4BT OpenJOC(TM} Knowledge-based JOC Information Management Solution

Program Management and Work Visibility
• Central Workforce Database
• Program Management
• Contract Management
• Proposal Management
• Project Management
• Work Order Management
• Coefficient Management
• Team Management
• Contractor/Trades Management
• MBE/WBE Participation Tracking
• Real-time Proposal Review
• System Messaging
• Dashboard
• Full Data Export
• Access Control
• Real-time Alerts for unauthorized access or key person on-site
• Mass Text Messaging…. And much more.

LEAN Job Order Contracting - What Public Sector Facilities Professionals Need to Know

LEAN Job Order Contracting – What Public Sector Facilities Professionals Need to Know

It’s critical to take the time to monitor and improve your Job Order Contracting processes as they are not as you think they might be.

 

Job Order Contracting (JOC) has been distorted into a way to simply speed the procurement of repair, renovation, and new build construction, bypassing procurement rigors and doing little to assure mutually beneficial benefit to owners and design-builder or overall efficiency.   Costs of JOC administration have also skyrocketed to 3% to 10%+ of construction value.

What LEAN Job Order Contracting?

LEAN Job Order Contracting is a series of actions repeated in a progression from a defined or recognized ‘start’ to a defined or recognized ‘finish’, to establish and maintain a commonly understood flow that allows all type of construction tasks to be completed as efficiently and consistently as possible.

All the tools and support services to implement and manage LEAN Job Order Contracting for any public sector organization are now available within the 4BT-PEP JOC Knowledge-based Information Management System.   Each step of a robust process assures consistent on-time, on-budget, quality construction delivery and is maintained with a digital footprint.

Benefits of LEAN Job Order Contracting include…

  1. Objective fact-based insights and decision-support
  2. Faster, cheaper, and more verifiable other approaches
  3. Enhanced owner and design-builder capabilities
  4. Full financial and technical visibility and transparency
  5. 100% real-time view of all you JOC Programs, Contracts, Projects, Proposals, Estimates
  6. Quantification of impacts
  7. Alignment of planning, procurement, and project delivery and teams
  8. Outcomes your organization cares about.
Learn more?   Schedule a 15-minute introductory call, or visit www.4bt.us

job order contracting solutions

Job Order Contracting Program Checklist

  1. Do you have a written JOC Operations Manual or JOC Execution Guide?
  2. Have you selected JOC contractors based upon BEST VALUE?
  3. Do you manage your JOC Program directly versus outsource management to a JOC Consultant?
  4. Is your JOC Program audited regularly by an independent third party?
  5. Does your technical team (engineering/facilities management) and procurement team review detailed line-item estimate prepared by your JOC contractor(s)?
  6. Can you automatically compare two estimates (government and contractor) and show differences in seconds?
  7. Do you prepare a detailed line item estimate in-house for JOC projects over a set dollar threshold?
  8. Are you using a locally researched Open Unit Price Book, complete with labor, equipment, and material details, and provided from a source INDEPENDENT of anyone involved in managing your JOC, AND not using a national average price book and location factors?
  9. Are you using a cloud-based system, specifically designed for JOC?
  10. Does your JOC software calculate non-pre-priced items in dollars and percentage for each JOC project?
  11. Can all participants view CURRENT information in real-time?
  12. Cam your JOC software view and access Revit drawings, images, documents, etc.?
  13. Is your JOC Program based upon LEAN collaborative construction delivery principles?
  14. Does your JOC Program equally support owners AND contractors to deliver win-win results?

If you answered “NO” to any of the above…. it’s time to talk!

Why LEAN Construction Matters

JOC Procedures

JOC PROCEDURES FOR ORDERING WORK  lean job order contracting

 

Initiation of a Job Order

  1. Contract Administrator notifies the Contractor of a Project, schedules a Joint Scope Meeting, and issues a Notice of Joint Scope Meeting. Contractor attends the Joint Scope Meeting with owner JOC Project Manager and discusses, at a minimum:
    1. general Scope of the Work (SOW) to be performed,
    2. alternatives for performing the work and value engineering,
    3. access to the site and protocols,
    4. hours of operation,
    5. staging area and areas that are off-limits,
    6. requirements for documentation – technical data, samples, BIM models, drawings,
    7. requirements for professional services, sketches, drawings, and specifications,
    8. construction duration, due date for Detailed Scope of Work and contractor’s line-item proposal,
    9. presence of hazardous materials,
    10. applicable Federal, County, State, and/or local regulations, requirements.

Request for Proposal

  1. Contract Administrator issues a Request for Proposal (RFP) to JOC contractor (alternately process can require contractor to submit a draft detailed SOW for owner review prior to issuance of RFP).  Proposal form contractor is due within established timeline.
  2. Contractor prepares/updates Detailed Scope of Work referencing any sketches, drawings, photographs, and specifications required to document accurately the work to be accomplished and prepares a detailed line-item proposal of the planned work activity using the current unit price book (UPB).  It is the Contractor’s responsibility to include the necessary line-items and quantities in the Proposal and apply the appropriate Adjustment Factor(s) prior to delivering it to the Owner. Both Owner and Contractor review proposal based upon the detailed SOW.  If the Contractor requires additional information to clarify the Detailed Scope of Work before preparing the Job Order Proposal, the Contractor will make such request so that the Job Order Proposal can be submitted on time.  Contractor proposal is prepared and submitted with the JOC System and includes:
    1. Line-items for all require construction task as selected from the UPB, and associated quantities
    2. Any required documentation and/or forms
    3. Any associated subcontractor information
    4. Schedule
    5. Justification for any non-pre-priced line items
    6. Totals, without and with associated adjustment factor/JOC coefficient, and totals of priced and non-pre-priced line-items
  3. Owner reviews and approves/rejects Contractor’s proposal.  The Owner evaluates the entire Contractor’s Proposal and compare these with the Detailed Scope of Work and the Owner’s estimate if completed and/or otherwise determines the reasonableness of approach, including the appropriateness of the line-items and quantities proposed.  The Owner’s review includes the pre-priced Tasks, quantities, adjustment factors/co-efficients, and non-pre-priced tasks. If rejected, the owner can discuss modifications required for a new proposal with the Contractor.

Execution

  1. Owner issues a Notice to Proceed
  2. Contractor set up a kick-off meeting and mobilizes
  3. Owner regularly inspects the site
  4. Contractor issues a notification of substantial completion and submits appropriate documentation for project close-out
  5. Owner conducts final inspection and issues final notice of substantial completion (or owner creates a checklist of items required for completion)

Note:  Change orders should be mitigated via the job order process, however, an owner-defined process within the contractor outlines how changes in the Detailed Scope of Work are to be handled, such as by adding to, changing, or deleting from the Detailed Scope of Work, by issuing a Supplemental Job Order or a Change Order.  All Supplemental Job Orders follow the same workflow and procedures as the original work order.

JOC PROCEDURES
JOC PROCEDURES FOR ORDERING WORK

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Glossary

Adjustment Factor:  Approved factor/JOC co-efficient for the associated work order/project and contract.

Change Order (CO): Any subsequent change in the work to the initial construction job order/workorder proposal as accepted which has been subsequently authorized by the Owner and issued to the Contractor.

JOC Administrator / Procurement Officer: Procurement professional of record for the government entity, responsible for Job Order Contract administration.

Non-Prepriced Line-item (NPP): A line-time cost/task not found in the current unit price book, but within a JOC proposal.  A limit of 10% of the total cost of a proposal is imposed within Job Order Contracts and contracts must supply associated required support information, such as independent quotes for the item(s).

Pre-priced Line-item/Task: A line-time found within the current and approve unit price book for the associated work-order/project

Task Order, Job Order: Individual projects/work orders performed under the umbrella procurement.

Unit Price Book (UPB):  A web or server-based compilation of detailed construction task listings with pre-set prices individual line-items for each unit of work (unit price) establishing the basis of each job order/work order/project assignment.

 

“Culture change requires company leaders who lead by example. It is impossible to push cultural change if toxicity, noncompliance, and distrust remain at the top. Additionally, leaders need strong personal values, such as humility and accountability, to support the values of their organization and drive change.

Lastly, change involves processes and measurement. Without measuring change, how does one know if the team is moving forward? Agree on what a ‘good’ culture looks and feels like, then determine the KPIs by which it will be measured.” 

  • Nathan C. Wood

 

www.4bt.us

 

Innovative construction capital delivery

Innovative Construction Capital Delivery for Public Sector Owners

Innovative construction capital delivery for public sector owners can consistently enable quality, on-time, on-budget and fully compliant repair, renovation, maintenance, sustainability, and new build outcomes.

Enhancements to locally researched construction cost data and the integration with robust, proven LEAN planning, procurement, and project delivery processes, supported by collaborative cloud technology can enable any public sector owner to deploy efficient, streamlined capabilities and measurably improved outcomes with complete cost visibility and transparency.

85% of all construction projects are over-budget, late, and/or poorly completed.  This results in a waste of public funds of 30%-40%+, or billions annually.   

Minimizing risk through cost certainty and a fully communicated and detailed work scope are critical to every repair, renovation, and new build.  Consistent achievement of both on organization-wide basis requires; 1.) integrating People, Process, Information, and Technology using a common data environment (locally researched detailed unit line-item cost data, organized by CSI Masterformat), 2.)  owner leadership and support, and 3.) leverage of core LEAN principles.

Public sector owner and design-builders working collaborative toward well-defined, mutually beneficial goals…. what a concept!

  • Deliver 90%+ of ALL projects on-time, on-budget, and in a quality manner
  • Full technical and financial visibility and transparency
  • Continuous improvement

For more information, just ask.

 

Innovative construction capital delivery
Innovative Construction Capital Delivery Solution

Construction rework costs $625 Billion annually.

 

Just 31% of all projects came within 10% of budget within the past three years.

Primary Causes of Construction Failures

  1. Lack of competent, consistent, owner leadership
  2. Failure to implement integrated robust LEAN construction planning, procurement, and project delivery methods

These failure points result in…

  1. Poorly developed and poorly communicated Scope of Work
  2. Inadequate and unsupportable construction cost estimates
  3. Serious project planning, procurement, and project management errors and associated requirements for change orders
  4. Inappropriate project delivery team composition
Innovative Construction Capital Delivery
Where is YOUR organization?

References:

  1. International Journal of Innovation, Management, and Technology
  2. Dodge Data & Analytics
  3. McKinsey & Company “Imagining Construction’s Digital Future”
  4. Carnegie Mellon Research
  5. KPMG Global Construction Survey
Why LEAN Construction Matters

How to Use Job Order Contracting – 4 Steps

How to use job order contracting is an important lesson for all public sector facilities operations and management professionals.

#1 Job Order Contracting (JOC) is suitable for a wide range of facilities and horizonal physical infrastructure  construction projects, including repairs, renovations, maintenance, sustainment, and new construction.  (Note: New construction is best limited to “minor” new construction requiring minimal design.)

#2 Maximum benefit for JOC can attained when it is used a a method to integrate “construction” planning, procurement, and project delivery incorporating robust LEAN practices to reach best value outcomes for all participants and stakeholders.

#3 Direct collaboration between owner and design-builder teams is a principle of JOC.  Using an intermediary, such as a “JOC consultant” is a good method for some owners “stand up” a JOC project is they lack internal skills/capabilities, however, the long term impact is excessive JOC administration cost and loss of critical knowledge and inability to achieve maximum JOC benefit.

#4 Independent third-party JOC program audits and monitoring of key performance indicators (KPIs) are needed to further assure JOC program efficiency, compliance, and continuous improvement.

In summary, JOC can consistently drive quality, on-time, on-budget outcomes with maximum efficiency if implemented and managed properly.  Never use JOC to simply “speed procurement” or approve projects that otherwise would not be approved via traditional procurement oversight.  And never pay a percentage of construction value for JOC services or a “JOC consultant”.

via www.4bt.us

job order contracting lessons

job order contracting solutions

LEAN Construction for Dummies

LEAN Construction for Dummies

A LEAN construction solution integrates People, Process, Information, and Technology throughout planning, procurement, and project delivery, to consistently enable best value outcomes for all participants and stakeholders in terms of quality, time, and cost.

The vast majority of organizations fail to adopt LEAN planning, procurement, and project delivery for facilities management and associated repair, renovation, maintenance, sustainability, and new build requirements despite the fact that is the only proven method to drive significant reductions in economic and environmental waste.

LEAN construction isn’t simply about eliminating waste, but rather enabling teams to contribute to the process and drive continuous improvement.

The following are not LEAN construction solutions – last planner, JIT, value stream mapping,  PDCA, six sigma, jidoka, takt time, poka-yoke, heijunka, 5s, kaizen.  They are philosophies, techniques, and can be components of a broader solution.  A LEAN construction solution integrates People, Process, Information, and Technology throughout planning, procurement, and project delivery, to consistent enable best value outcomes for all participants and stakeholders in terms of quality, time, and cost.

Request the LEAN construction eBook

Schedule a 15-minute introductory call

LEAN Construction for Dummies LEAN Construction for Dummies

An integrated LEAN facilities management approach improves overall efficiency and productivity through open and ongoing communication, regular performance and progress updates and active problem-solving to mitigate issues when they arise. It’s the framework for strengthening your internal and external teams.

and new build requirements.

The Pillars of Sustainable Facilities Management

Do you agree that the following are pillars of sustainable facilities management?

 

  1. Planning, procurement, and project delivery are integrated.
  2. Locally researched, granular line item cost data used as a baseline to provide verifiable cost visibility and transparency, as well as clear communicate required scope of work to all participants.
  3. Robust LEAN programmatic processes are used to efficiently manage all repair, renovation, and new build requirements.
  4. Collaborative LEAN process management are understood and supported organization-wide by leadership.
  5. 80%-90% of all projects are completed on-time, on-budget, and in a quality manner.
  6. Historical cost data and/or contractor quotes, and/or other national average cost databases are not used exclusively to determine costs for new projects.
  7. Owners are knowledgeable of cost management and implications as are design-builders, inclusive of assessing risk related to any changes or issues.
  8. Change orders are managed and virtually eliminated.
  9. Documentation, approvals, and compliance are defined in workflows and traceable.
  10. Training and collaboration are mandatory for all participants and stakeholders.

Visualize, understand, and optimize your facilities management repair, renovation, and new build requirements.

Visualize, understand, and optimize your facilities management repair, renovation, and new build requirements.
Visualize, understand, and optimize your facilities management repair, renovation, and new build requirements.
Visualize, understand, and optimize your facilities management repair, renovation, and new build requirements.
Visualize, understand, and optimize your facilities management repair, renovation, and new build requirements.

 

Request information or set up a 15-minute introductory call.

Why LEAN Construction Matters

Selecting a Job Order Contracting Solution

  • Experience working with Contractors of all sizes – Four BT, LLC (4BT) is a certified veteran-owned small business (Veterans Administration), and fully understands the needs of smaller contractors when working with government organizations for the first time and on an ongoing basis. As a small business ourselves, we know what smaller contractors face and have experience meeting their needs and have experience building their capabilities. We also have experience with national JOC contractors with decades of JOC expertise.
  • Experience with currently available JOC Solutions – We have migrated contractors (and owners) who have previously worked with products and services provided by our competitors to 4BT OpenJOC (TM) Building in Cloud Solutions. Examples include JOC program set up, marketing to contractors, and support of JOC Programs with over 20 contractors. I
  • Best-in-class training and support – 4BT has the ability to market to, train, and support JOC contractors at all levels of Job Order Contracting capability ranging from those with limited line item and/or JOC estimating experience with unit price books, to builders with national JOC expertise.  We also train owner all owner staff including project managers, procurement teams…
  • JOC program marketing –  Marketing and building awareness for a JOC Program is critical to success.  Marketing to prospective JOC contractors and growing internal awareness are important program aspedts.
  • Current, easy-to-use, powerful technology – Powerful technology should be easy to use and also not derived from older legacy platforms.  4BT exclusive integrates Program Management, Contract Management,  Proposal Management, Automated and Collaborative Real-time Prposal Reviews, Estimate Management, Workflow Management with integrated forms and approvals, Progress Tracking, Full Document Management (versioning, check-in, check-out, not a simply on-line filing system), Contractor and MBE/WBE Management and Tracking, Team Management, Building Management, Asset Management, BIM information viewing, and more.
  • Locally researched detailed line item cost data – No use of location factors or economic factors that simply don’t provide reliable cost visibility.
  • Compliance reviews for all contractor proposals – JOC Program compliance is critical. 4BT exclusively provides Informal Compliance Reviews (ICRs) (TM), and Formal Compliance Reviews (FCRs).
  • Mutual benefit to Owners and Design Builders – 4BT equally support the needs of owner and design-builders.

Four BT, LLC – Robust, integrated, efficient construction planning, procurement, and project delivery solutions.

Selecting a Job Order Contracting Solution
Selecting a Job Order Contracting Solution

Construction Program Portfolio Management

Construction Program Portfolio Management

Construction Program Portfolio Management provides significant advantages to project management.

What’s the difference? Program management applies a robust process to each project and/or work order. This programmatic approach mitigates miscommunication, waste, and change orders. The net result is 90%+ of repair, renovation, sustainability, and new builds are completed in a quality manner, on-time, and on-budget.

Learn more about Construction Program Portfolio Management?

Construction Program Portfolio Management

Why LEAN Construction Matters

Job Order Contracting Has Never Been Easier…. Or Lower In Administration Costs

Job Order Contracting has never been easier.

91% of FM managers say there’s a gap between the knowledge and skills their team has and what they need to excel. – 2021 PMI Survey

  1. Improvement is never easy and is especially difficult in the public sector where the same methods have been in place for decades.
  2. Savvy public facility management professionals are diligently working to significantly alter the ‘status quo’ and achieve significant performance gains.
  3. Proven successes can be found where public sector FMers have, through their leadership, competence, and commitment, begun to implement lean integrated planning, procurement, and project delivery processes for their real property portfolio’s ongoing repair, renovation, maintenance, sustainability, and new build requirements. Examples include integrated project delivery, IPD, for major new construction, and lean job order contracting for repair, renovation, and “minor” new construction.
  4. With respect to these new processes, technology is an enabler,  but never be the driver. Technology’s role is to simply help to accomplish objectives more efficiently.   Robust processes are embedded within tech to provide a solid platform within which professionals can perform meaningful work. All FM and procurement teams need is the training and tools to help them do their work. Generic “Program Management”, “IWMS”, “ERP”, and other “general purpose” systems don’t cut it. They don’t improve efficiency, but rather simply add another layer of administrative burden.

In short, a focus upon robust processes across all core FM related activities… planning, procurement, and project delivery… and subsequent selection and implementation of domain-specific technology, is the most direct path to best value outcomes.

Job Order Contracting Has Never Been Easier Job Order Contracting Has Never Been Easier

Set up a quick 15-minute introductory call to learn more?

Also, feel free to send this email to any of your colleagues who might be interested.

All the best,
Peter Cholakis
Senior Vice President

Underperforming Public Sector Facilities

Underperforming Public Sector Facilities Renovation Repair and New Builds – Time for Change

Underperforming Public Sector Facilities Renovation Repair and New Builds – Time for Change

Underperforming Public Sector Facilities

Introduction

Whether a Federal, State, County, or Local Government, most public sector organizations underperform when it comes to planning, procuring, and executing facilities repair, renovation, or new builds.

Waste is rampant to the extent that 80% or more of all projects are late, over-budget, and/or poorly completed to the dissatisfaction of participants and stakeholders. The economic and environmental impacts are simply not sustainable.

What makes the problem so frustrating is that the solution is simple. Supporting robust processes, tools, and training are readily available to assure on-time, on-budget, and quality outcomes 90%+ of the time.

The only obstacle, which apparently has been insurmountable for decades, is public sector real property owner leadership, accountability, and commitment for improvement.

 

Solution

The following solutions are fully compatible and compliant with public sector regulations and  budget cycles.

Most of the repair, renovation, sustainability, and new build construction projects end up over budget, and otherwise fail due the use traditional inefficient, archaic, and antagonistic processes.

The combination of robust, proven, and integrated LEAN construction planning, procurement, and project delivery processes and locally researched detailed unit price construction cost data results in full financial and technical visibility. The scope of work is fully understood by all parties, owner and service providers, and their associated leadership, procurement, facilities management, and project teams on an early and ongoing basis.   The net results include reduction in change orders, improved job scheduling, and projects delivery on-time, on-budget, per owner requirements.

The follow eight (8) items shed additional light on a programmatic approach to all projects that provides the ability to achieve significantly improved outcomes.

The process is not complex if the following key aspects are followed, and detailed processes, procedures, right to workflow and approval forms, are readily available.

#1. Owners and facilities management professionals provide leadership and support.
Organizations of all sizes experience delays, low-quality services, and contract terminations.  Minimizing these issues can only be accomplished with owner commitment to change from current ineffective and antagonistic practices.

#2. Integrate planning, procurement, and project delivery. Processes and participants from these phases must be aligned from the start with a robust programmatic, process-centric environment. LEAN integrated project delivery and LEAN job order contracting integrate planning, procurement, and project delivery processes and teams.

#3. Develop and maintain a common data environment. Detailed, locally researched unit price cost data is a core requirement. Scope of work, material, labor, equipment, and time requirements, and cost visibility can all be clearly communicated to all participants.

#4. Include an Operations Manual/Execution Guide as part of all multiparty contracts. Define all roles, responsibilities, workflows, and deliverables that clearly define mutually beneficial outcomes for all participants and stakeholders.

#5. Consistently execute all projects via the same core process. A proven programmatic process, properly and consistently executed, is the only way to mitigate variation. Contrary to common belief, poor process and poor management are responsible for most failures, not employees or services providers.

#6. Encourage collaboration, teamwork, and problem solving. Do not pit on person or team against one another, do not “bid shop”. Focus upon building long-term, mutually beneficial relationships and share risk as well as rewards.

#7. Leverage technology. Technology is best used as a tool to embed robust processes to enable their consistent and efficient deployment and associated management.

#8. Continuously build internal and external knowledge and capabilities. Lack of domain expertise is a core failure point. Mandate initial and ongoing training for all participants. Training should be available in a diverse range of formats, areas, and levels. Also avoid exclusive reliance on external “consultants” and/or “outsourcing” for program management or other mission critical areas. collaboration and communication among team members of the project.

The Future

Collaboration and communication among team members can and must be mandated.  Accountability, which has been lacking for decades, must be returned to public sector facilities stewardship. Furthermore, all projects must follow a fundamental core process and we must stop treating construction as unmanageable unique beasts. Public sector leadership must leverage the expertise of its service providers and act to support mutually beneficial outcomes. In this manner, problems are solved more rapidly and efficiently.

The above reduces complexity and risk significantly.

 

Learn more?

8 Keys to Successful Construction Delivery

8 Keys to Successful Construction Delivery – Or Everything a Public Sector Facilities Management Professional Should Know

8 Keys to Successful Construction Delivery – -Or Everything a Public Sector Facilities Management Professional Should Know

Repair, renovation, sustainability, and new build projects can be consistently delivered on-time, on-budget, with high quality, and to the satisfaction of all participants and stakeholders.

The process is not complex if the following key aspects are followed…

#1. Owners and facilities management professionals provide leadership and support.
Organizations of all sizes experience delays, low-quality services, and contract terminations. Minimizing these issues can only be accomplished with owner commitment to change from current ineffective and antagonistic practices.

#2. Integrate planning, procurement, and project delivery. Processes and participants from these
phases must be aligned from the start with a robust programmatic, process-centric
environment. LEAN integrated project delivery and LEAN job order contracting integrate
planning, procurement, and project delivery processes and teams.

#3. Develop and maintain a common data environment. Detailed, locally researched unit price cost
data is a core requirement. Scope of work, material, labor, equipment, and time requirements,
and cost visibility can all be clearly communicated to all participants.

#4. Include an Operations Manual/Execution Guide as part of all multiparty contracts. Define all
roles, responsibilities, workflows, and deliverables that clearly define mutually beneficial
outcomes for all participants and stakeholders.

#5. Consistently execute all projects via the same core process. A proven programmatic process,
properly and consistently executed, is the only way to mitigate variation. Contrary to common
belief, poor process and poor management are responsible for most failures, not employees or
services providers.

#6. Encourage collaboration, teamwork, and problem solving. Do not pit on person or team against
one another, do not “bid shop”. Focus upon building long-term, mutually beneficial relationships
and share risk as well as rewards.

#7. Leverage technology. Technology is best used as a tool to embed robust processes to enable
their consistent and efficient deployment and associated management.

#8. Continuously build internal and external knowledge and capabilities. Lack of domain expertise
is a core failure point. Mandate initial and ongoing training for all participants. Training should
be available in a diverse range of formats, areas, and levels. Also avoid exclusive reliance on
external “consultants” and/or “outsourcing” for program management or other mission critical
areas.

Four BT, LLC
Innovative LEAN Construction Delivery Solutions that Work!

www.4bt.us

Get the white paper… or set up a 15-min exploratory call….

8 Keys to Successful Construction Delivery8 Keys to Successful Construction Delivery

Why LEAN Construction Matters

West Bank – Construction Costs Increase

West Bank – Construction Costs Increase

Construction Cost Index (CCI), Road Cost Index (RCI), Water Networks Cost Index (WNCI) and Sewage Networks Cost Index (SNCI) in the West Bank* during September, 09/2021

Increase in the Construction Cost Index (CCI) for Residential Buildings

The Construction Cost Index (CCI) for residential buildings in the West Bank* reached 114.21 with an increase of 0.61% during September 2021 compared with August 2021 (base year 2013=100).

At the level of major groups, the price of labor costs and wages increased by 0.71%, and the price of raw material by 0.29%. While the price of rental of equipment slightly decreased by 0.05% during September 2021 compared with the previous month.

Increase in the Construction Cost Index (CCI) for Non-residential Buildings

The Construction Cost Index (CCI) for non- residential buildings in the West Bank* reached 113.66 with an increase of 0.58% during September 2021 compared with August 2021 (Base year 2013=100).

At the level of major groups, the price of labor costs and wages increased by 0.71%, and the price of raw material by 0.23%. While the price of rental of equipment slightly decreased by 0.02% during September 2021 compared with the previous month.

Increase in the Road Cost Index (RCI)

The overall Road Cost Index (RCI) in the West Bank reached 109.16 with an increase of 0.19% during September 2021 compared with August 2021 (Base month December 2008=100).

At the level of major groups, the price of labor costs and wages increased by 0.92%, and the price of raw material by 0.24%. While the price of rental of equipment decreased by 0.23%, and the price of operating cost of equipment and maintenance slightly decreased by 0.08%.

Increase in the Water Networks Cost Index (WNCI)

The overall Water Networks Cost Index (WNCI) reached 123.67 with an increase of 0.66% in the West Bank* during September 2021 compared with August 2021 (Base month January 2010=100).

Water networks Cost Index reached 126.97 with an increase of 0.97%. While water reservoirs Cost reached 116.42 with a slight decrease of 0.09% during September 2021 compared with August 2021(Base year 2013=100).

Increase in the Sewage Networks Cost Index (SNCI)

The overall Sewage Networks Cost Index (SNCI) in the West Bank* reached 110.61 with an increase of 0.56% during September 2021 compared with August 2021 (Base month January 2010=100).

 

Source – Palestinian Central Bureau

Published on: 25/10/2021

of Statistics

 

 

Why LEAN Construction Matters

Innovative Solution Integrates Planning, Procurement, and Project Delivery to Improve Construction Productivity

The innovative 4BT OpenBuild/OpenJOC(TM) Framework integrates planning, procurement, and project delivery to improve construction productivity.

Leverage robust lean processes, locally researched detailed line item construction cost data, support services, and enabling technology to consistently delivery quality repair, renovation, sustainability, and new build projects on-time and on-budget at the lowest possible cost and with full financial visibility and transparency.

  • All projects follow a core programmatic process
  • Owners and design-builders define and work toward mutually beneficial outcomes
  • Management of… Programs, Contracts, Projects, Proposals/Bids, Estimates, Work Orders, Approvals/Forms, Documents, BIM data, Issues/Tasks, Teams, Buildings, MBE/WBE participation, project and financial status…

Join our current clients in reducing administrative costs up to 75%, improving productivity up to 3x, and mitigating costly change orders!

www.4bt.us

 

 

 

 

Non-Residential Construction

Non-Residential Construction Market Still Faltering

Nonresidential construction has dropped  25% since 2020, while residential construction has boomed.

2021 Construction Market

Nonresidential construction startsOverall, however, the construction industry in in recovery.

 

Average commercial construction costs have increased 4.5 percent (4.5%), and total cost growth by year-end is project to average 6 (6%) percent.

Despite signs of recovery, the labor shortage is a persistent, and unresolved problem that appear to have no solution.  Material prices will sort themselves out, however, lack of skilled labor is endemic.

Construction employment
• Unemployment rate:
August 2021: 4.6%
August 2020: 7.6%
• Total employment:
August 2021: 7.4M
August 2020: 7.2M
Construction costs
• Labor wages: +4.46% (Aug. 2020 to Aug. 2021)
• Material costs: +23.1% (Aug. 2020 to Aug. 2021)
• Total costs: +4.51% (Aug. 2020 to Aug. 2021)
Construction spending
• Nonresidential: -9.5% (July 2020 to July 2021

Construction Material CostsConstruction Delays

via Four BT, LLC – Efficient Construction Planning, Procurement, and Project Delivery Solution www.4bt.us

Pavement preservation

2021 – Highway Maintenance Practices – Maintenance and Surface Preparation Activities Prior to Pavement Preservation Treatments

Highway Maintenance Practices

Pavement Preservation Practices – Pavement preservation is broadly acknowledged to provide network-wide benefits such as extending pavement life, enhancing system performance, reducing operation and maintenance costs, and improving safety. However, the performance of each pavement preservation project hinges on many factors.

The TRB National Cooperative Highway Research Program’s NCHRP Synthesis 565: Maintenance and Surface Preparation Activities Prior to Pavement Preservation Treatments documents the types of maintenance and surface preparation activities performed by departments of transportation before pavement preservation treatments are applied.

Strategic facilities portfolio management technology

Strategic facilities portfolio management technology

Strategic facilities portfolio management technology, when combined with enabling robust integrated LEAN planning, procurement, and project delivery processes, helps public sector leaders, facilities management and procurement professionals, and their design-builders to execute an efficient enterprise-wide strategy-to-execution alignment and adaptation.  This requires strong strategy-to-execution alignment and management from both “top-down” and “bottom-up” perspectives .

  1. Consistently deliver quality repair, renovation, and new builds on-time and on-budget
  2. Assure full compliance
  3. Build and maintain internal knowledge
  4. Gain full financial visibility and transparency
  5. Virtually eliminate change orders and legal disputes
  6. Build and maintain long-term mutually beneficial relationships with design-builders
  • Business and operating models need to change to meet economic and environmental imperatives
  • “Customer” focus and organization mission focus
  • Process change management is a primary need
  • Technology must support process

Strategic facilities portfolio management technology

Strategic facilities portfolio management technology

Strategic facilities portfolio management technology

Public Procurement Professionals

Public Procurement Professionals

Enhancing Integrity in Public Procurement, requires public sector procurement professionals to improve their performance in achieving efficiency and advancing public policy objectives. Well-governed public procurement contributes directly to greater public trust, enhanced well-being and more prosperous and inclusive communities.

The above is particularly true for physical infrastructure repair, renovation, sustainability, and new build projects. Unfortunately, the fact is that capital projects have been perennially beset with problems, and often tend to start late, balloon in cost, and finish well past their timelines, sometimes by years.

That said, integrated LEAN construction services planning, procurement, and project delivery methods are available to significantly improve outcomes. Job Order Contracting is one of these solutions. However, Some public sector agencies think JOC “pay as you go services” are appropriate and cost effective.

In point of fact, paying a percentage fee to a “JOC consultant” for tools and services is up to 10x more expensive than simply paying for annual software and cost data subscriptions, and any required training.

Thus, public sector procurement and facilities management professionals should take a hard look cost and associated benefits of their current and planned JOC Programs. Paying 10x more for
a JOC Program is contrary to the fiduciary responsibilities of public sector professionals.

While it may be “easier” to get approval from “operating funds” versus capital expenditures, easier is rarely better.

Reply is your are interested in case studies of how some public sector procurement agencies are on a path towards improved governance.

Best,
Peter

Public Procurement Professionals
Public Procurement Professionals Public Procurement Professionals must improve their performance in achieving efficiency and advancing public policy objectives.

JOC Pay as you go service, JOC Pay as you go services, Why LEAN Construction Matters

JOC Pay as you go service – More expensive

Some public sector agencies think JOC pay as you go services are appropriate and cost effective.

In point of fact, paying a percentage fee to a “JOC consultant” for tools and services is up to 10x more expensive than simply paying for annual software and cost data subscriptions, and any required training.

Thus, public sector procurement and facilities management professionals should take a hard look cost and associated benefits of their current and planned JOC Programs.   Paying 10x more for a JOC Program is contrary to the fiduciary responsibilities of public sector professionals.

While it may be “easier” to get approval from “operating funds” versus capital expenditures, easier is rarely better.

Best value JOC Program tools and services are readily available for any type or size JOC Program.

JOC pay as you go service
Don’t pay more for a JOC pay as you go service
JOC Pay as you go services
LEAN Job Order Contracting

 

Public Sector Facilities Management Professionals

Public Sector Facilities Management Professionals – NOW IS THE TIME FOR CHANGE

Public Sector Facilities Management Professionals – NOW IS THE TIME FOR CHANGE.

The historically high levels of economic and environment waste associated with public sectors buildings and other forms of physical infrastructure are simply not sustainable.

Now is the time for public sector facilities management professional to reassert themselves as strategic partners with senior leadership and enablers of change management.

Solutions are now readily available to assure the efficient delivery of quality repair, renovation, and new builds.  These solutions require mastering change and associated leadership skills.

Public Sector Facilities Management Professionals need to focus upon change management to successfully address critical environmental and economic issues.

The evolving role of public sector facilities management professionals

While the role of public sector facilities management professionals is ever evolving, the rate of change must rapidly accelerate to avoid the looming economic and environmental cliff that we all know is in front of each and everyone of us.

While many inexplicably continue to see technology as a savior, it can not to address the basic cause of waste….sector-wide failure to adopt robust lean processes and the associated lack of core information to enable better decision-making.  Simply throwing billions of dollars at construction or technology is equally foolhardy.

All the tools and support services are readily available to show people and organizations how to address facilities and physical infrastructure stewardship efficiently.   Senior leadership must  support requisite change, and garnering that support and commitment is the role of public sector facilities professionals.

Public sector FMers  must adapt robust LEAN process and tools to their organizations.  The typical crisis management and reactive nature of facilities management must be shifted toward long-term goals and responsibilities, and true strategic leadership.

The first steps

The first step, after determining what is required to align physical structures with the organizational mission, is the integration of planning, procurement, and project delivery activities.

This aspect is accomplished by the appropriate implementation of integrated project delivery (IPD) for large projects and LEAN job order contracting (for example the 4BT OpenJOC(TM) Framework), for repair, renovation, maintenance, sustainability, and minor new construction.

Again, senior leadership must take advantage of the previously missed opportunities to leverage the expertise of public sector facilities professions and private sector solutions providers.  Similarly, public sector FMers must engage in long-term, mutually beneficial relationships with their vendors/service providers.

In recent years, responsibilities and accountability of public sector facilities management professionals have come to the forefront and include:

  1. Financial visibility and transparency (only possible with the use of locally researched detailed construction cost data and LEAN processes)
  2. Compliance with federal, state, county, and local statutes
  3. Improving the efficiency of dollars spent .  More dollars spent on actual construction versus rework/change order, or administrative fees.

Public Sector Facilities Management Professionals

Public Sector Facilities Management Professionals

Learn more….

and New Construction can be COMPLICATED

Repair, Renovation, and New Construction can be COMPLICATED but NEVER COMPLEX or CHAOTIC

Construction Projects

Repair, Renovation, and New Construction can be COMPLICATED, but should NOT be COMPLEX or CHAOTIC.

91% of FM managers say there’s a gap between the knowledge and skills their team has and what they need to excel. – 2021 PMI Survey

1. Improvement is never easy and is especially difficult where the same methods have been in place for decades.

2. Nonetheless savvy facility management, design, engineering, and construction professionals are diligently working to significantly alter the ‘status quo’ and achieve significant performance gains.

3. Proven successes can be found where owners and other AEC professionals, through their leadership, competence, and commitment, have begun to implement lean integrated planning, procurement, and project delivery processes for their real property portfolio’s ongoing repair, renovation, maintenance, sustainability, and new build requirements. Examples include integrated project delivery, IPD, for major new construction, and lean job order contracting for repair, renovation, and “minor” new construction.

Learn more….

 

via Four BT, LLC – Integrated LEAN construction/FM planning, procurement, and project delivery solutions.

and new construction

Efficient facilities repair, renovation, and new construction require significant rethinking of many core processes

LEAN public sector facilities management and efficient facilities repair, renovation, and news construction require significant rethinking of many core processes.

Efficient facilities repairEfficient facilities repair

lean-job-order-contracting

LEAN Job Order Contracting

LEAN Job Order Contracting

Advantages of LEAN Job Order Contracting over the traditional design-bid-build method, design-build, or even other JOC programs are significant.

lean job order contracting

The most significant benefits of LEAN Job Contracting are the accomplishment of numerous, ongoing, repair and renovation jobs, without high “JOC consultant” administration fees tied to construction volume, and avoidance of high procurement costs and the relative poor performance prevalent with traditional design-bid build.

Advantages for larger new construction projects are also available.

In addition to lower administrative burden, advantages of LEAN JOC include faster response time, building and retention of organizational knowledge, lower design costs, value engineering and constructability, teamwork, high quality, and the reduction in change orders.

lean job order contracting

www.4bt.us

#construction #building #engineering #procurement #lean #projects #administration

Why LEAN Construction Matters

Construction Productivity

Construction productivity is driven by process.

Process Is a Primary Productivity Driver

The selected construction delivery method impacts the success or failure of facilities repair, renovation, and construction programs more than any other single element.
The integration of construction planning, procurement, and project delivery with robust LEAN processes and workflows exclusively enables consistent attainment of best value outcomes.

 

construction productivity

Assess-Plan-Execute-Improve

  1. Assign a LEADER
  2. Build a TEAM
  3. Allocate RESOURCES
  4. Establish OBJECTIVES
  5. Define and Review Quantitative – METRICS
  6. Discuss and resolve GAPS

construction productivity

Construction Cost Management

Construction Cost Management is now Possible

Construction Cost Management is now possible with the adoption of a robust programmatic process that integrates associated planning, procurement, and project delivery activities and people, information, and enabling technologies.

 

Let’s face facts, the  baseline for current public sector cost management practices and experiences for facilities and other forms of physical infrastructure is quite poor. 

  1. Planning, procurement, and project delivery are not integrated.
  2. Locally researched, granular line item cost data is not used as a baseline to provide verifiable cost visibility and transparency.
  3. Robust LEAN programmatic processes are not used to efficiently manage all associated repair, renovation, and new build requirements.
  4. Collaborative LEAN process management is not understood and not practiced organization-wide by any federal sector agency or department.
  5. 80%-90% of all projects are late, over-budget, or completed unsatisfactorily.
  6. Most organizations rely upon historical cost data and/or contractor quotes, and/or other national average cost database with cost and/or other economic factors.
  7. Owners are far less knowledgeable of cost management and implications than builders, inclusive of assessing risk related to any changes or performance issues.
  8. Tracking constructions task  job requirements in association with verifiable project costs is not a current capability for most owners.
  9. Change order management is beyond the capability of many owners.
  10. Managing documentation, approvals, and compliance remain problematic.

Tools and services are readily available to any public sector owner to engage in a phased approach to adopt efficient repair, renovation, and new build practices and resulting best value outcomes.

construction cost estimate accuracy

Lean Job Order Contracting 2021

 

Construction Cost Estimate ACCURACY

The Construction Cost Estimate ACCURACY Myth

Efficient and best management practice construction cost estimating, and ongoing construction project/program management involve early and ongoing planning, and the collaborative and competent involvement of all construction project participants and stakeholders.

Within this structure the Real Property Owner must demonstrate appropriate leadership skills and manage the selected internal and external service delivery teams. Continuous monitoring, process improvement, and resource development with the objective of common best value outcomes are primary responsibilities.

construction cost estimate accuracy

In general terms a construction cost estimate must be reliable and verifiable in order to be actionable.  Use of the term “accuracy”, though widely used, is inappropriate.

A reliable estimate is one that reflects the approximate project cost developed using locally researched detailed construction line unit price tasks/activities.  Many owners, architects, engineering, and builders inappropriately refer to the “accuracy” of construction cost estimates. This is simply unfortunate as estimates are, by their very nature, approximations. The ability to determine accuracy requires a known data point, a datum. Many assume that the final “as-built cost” is the datum. That assumption is faulty due to the numerous aspects that typically affect the final cost outcome (planning, procurement and project delivery method…).

A reliable, verifiable, and actionable construction cost estimate, however, is not only possible, but should be used exclusively prior to procurement and project delivery.

As noted, the most reliable form of construction cost estimate is one developed using granular local labor, material, and equipment costs that have be researched to reflect specific construction tasks.  Each task should be totaled and presented in a cost per unit of measure (square foot, cubic foot, each, etc.), along with quantities. Using this approach, a reliable total cost and complete schedule of detailed construction line-item tasks/activities can be prepared after consideration of all physical and functional requirements and potential cost variations.

Overall, the process of generating a reliable construction cost estimate can be defined as a quantitative assessment process that generates a detailed line-item construction cost estimate based upon locally researched information.

Request information about locally researched, detailed unit price construction cost data:

 

 

 

https://www.linkedin.com/pulse/reliable-construction-cost-estimating-why-accuracy-myth-cholakis

FM - Informed Decision-making, Why LEAN Construction Matters

Public Sector FM – Informed Decision-making

Lean Job Order Contracting 2021
FM – Informed Decision-making

Informed decision-making is critical to public sector facilities management.

It is made possible through the integration of planning, procurement, and project delivery team, however, can only be truly enable via the support of leadership.

The LEAN Core

The lean core framework requires all participants, including all external providers and internal actors (finance, real property, design, engineering, operations and maintenance, personnel, purchasing/procurement and building users) to collaborate, and puts the focus on the customer, better education, early and ongoing communication, and continuous improvement.

A locally researched detailed unit price cost database is a required component to provide cost visibility, transparency, and management.

Learn more… info@4bt.us

Public Sector Facilities Management

facilities managment, LEAN core

The LEAN Core – Top/Down & Bottow/Up

The ability to significantly improve how facilities are constructed, managed and operated depends largely on whether owners provide high levels of leadership and support.

Lean Job Order Contracting 2021
Success is dependent upon whether owners provide high levels of leadership and support. 

While tools and support services are readily available to support lasting, measurable improvement in repair, renovation, and new build outcomes, associated changes in management techniques is also required.

Learn more…

Proactive Construction Project Management

The Proactive Construction Project Management Solution

Public sector facilities management professionals now have a proactive construction project management solution to assure quality, on-time, and on-budget repair, renovation, and new builds.

Public Sector Job Order Contracting

Why LEAN Construction Matters

Innovative Job Order Contracting Information Management Solution

The 4BT-PEP is a new, innovative Job Order Contracting Information Management Solution (JOCIMS).

The 4BT JOCIMS enables owners, designers, engineers, contractors, and trades to  collaborate  and  share project information within a common data environment (CDE), and in real-time,  significantly  improving outcomes.

Public Sector Job Order Contracting

All projects and work orders are performed using the the same robust LEAN programmatic process to virtually eliminate miscommunication of scope of work, change orders, delays, and excessive costs.

Learn more…

 

FM Mismanagement

The FM Mismanagement Problem Defined

The FM mismanagement problem defined simply is the lack of leadership among real property owners and the associated lack of robust, programmatic processes across the AECOO sector (AECOO-Architecture, Engineering, Construction, Owner, Operator).

Unless the fundamental root causes are addressed, there is little hope of for ending the endemic economic and environment waste associated with building and other forms of physical infrastructure.   The latest stimulus package, like those before them, will not even address the issue.

#1. Public and private sector real property owners pay the bills, thus are ultimately responsible.

#2. There is not a single public sector organization that has a robust, proven programmatic planning, procurement, and project delivery method that provides financial visibility and transparency, and the ability to support decision-making to assure the consistent quality, on-time, and on-budget outcomes, system-wide. (A fact support and noted for decades by several GAO Studies.)

#3.  Levels of waste currently average 20%-50%+.

#4.  All of the above are present despite the availability of proven solutions.

 

FM Mismanagement Defined

 

FM mismanagement defined

What to discuss the issue?

Care to learn more about solutions?

Contact Us
First
Last

 

Bad data is leading to poor decision-making and outcomes. Thirty percent of respondents indicated that more than half of their project data is “bad” and results in poor decision making more than 50 percent of the time. Decisions made using “bad data” are estimated to have cost the industry $88.69 million in rework alone, accounting for 14 percent of all rework performed in 2020.

Facilities Mismanagement

References:

Watanabe-Crockett, Lee. “The Daily Data Diet: Information Creation in Numbers.”
Global Citizen. 2016.
Famous, Gabriele. “Three Technology Trends Shaping the Future of Design and
Construction in 2018.” Aconex Group. 2018.
Hill, Brian L. “Digging for the Big Data Gold in Today’s Construction Projects.” Xpera Group. 2017.
“2017 Construction Technology Report.” JB Knowledge. 2017.
Marr, Bernard. “How big data and analytics are transforming the construction industry.” Forbes. 2016.
Wood, Chris. “Betting on Big Data: How Construction Firms are Leveraging Digitized Job Sites.” Construction Dive. 2016.
“How to Break Down Data Silos: Problems and Solutions.” Status. 2018.
“Construction Disconnected. 2018 Industry Report.” PlanGrid and FMI. 2018.
The 5 Essential Components of a Data Strategy.” SAS. 2018

PS:

Strategies in place to collect, manage, and analyze usable data drive benefits such as fewer project delays and budget overruns, less rework, fewer change orders and reduced safety incidents.

In the construction sector, gross margin has averaged 17.08-23.53% over 2020. However, margins can be as high as 42% for remodeling, and 34% for specialty work.

Type of construction Industry margin
New construction 20-25%
Remodeling/repair/rehabilitation 34-42%
Specialty work 26-34%

 

Why LEAN Construction Matters

Public Sector Facilities Management – The Elephant in the Room

The elephant in the facilities management room is ever-present.

The reality is that planning, procurement, and project delivery teams are misaligned… or simply not aligned at all.

This causal factor for the relatively dismal performance associated with facilities repair, renovation, and new builds is the lack of leadership, support, and commitment of senior management.

All of the processes, workflows, tools and services are readily available to mitigate the rampant economic and environmental waste.

While facilities, procurement, design, and construction professionals certainly want to improve and can improve, they are constrained by lack of leadership capability and support.

“Digital transformation”, “BIM”, and other technologies are not capable of solving the fundamental issue.   Public sector real property owners must fundamentally change how they manage on a strategic and day-to-day basis.  People, Process, Information, and Technology must be integrated, along with Planning, Procurement, and Project Delivery.

Public Sector Facilities Management and the need for fundamental change.

 

 

Pros and Cons of Job Order Contracting

Pros and Cons of Job Order Contracting

Here’s what can happen if systemic problems exist in a JOC Program.  The potential for fraud is real.   In this case the owner paid at least $1.9M more than they should have.  These funds should have been used for construction and not wasted.

See the video…. Laura Dowd, Independent Auditor.

Job Order Contracting should be deployed as a integrated LEAN planning, procurement, and project delivery system, complete with independent third party oversight.

Learn more about JOC Program best management practices.

  • Cost reductions
  • Improved schedule performance, milestones achieved, time saved
  • Improved Client Satisfaction
  • Reduced rework
  • Improved use of available funds
  • Better quality of life for participants
Why LEAN Construction Matters

Program Transparency Drives Best Value Facilities Project Outcomes

Program transparency drives Best Value facilities project outcomes by empowering owners and design-builders alike. Internal and external planning, procurement, and project delivery teams follow the same robust lean programmatic process for all projects.

All have easy access to project information, in one platform, and using a common data environment, inclusive of locally researched detailed cost information, organized using CSI MasterFormat.

Team member can improve and accelerate important decisions,  measuring, validating and continuously improving the building process in real time.

The 4BT OpenJOC(TM) and 4BT OpenBUILD(TM) frameworks provide all the tools and support services to enable teams to consistently deliver quality repair, renovation, and new builds on-time and on-budget.

What are you waiting for?

Set up a quick 15-minute exploratory call right now.

Best Value Facilities Project Outcomes

 

Improving Facilities Repair & Renovation Outcomes

Public Sector Facilities Professionals – Improving Facilities Repair & Renovation Outcomes

If you want a proven solution that enables you to consistently deliver quality repair, renovation, and “minor” new builds on-time and on-budget,  keep reading.

Public Sector Facilities Management
Improving Facilities Repair & Renovation Outcomes

 

Integrating People, Process, Information, and Technology isn’t a simple task, but one that is required in order to drive  efficient facilities management outcomes.

If you are ready to stop spending money on costly on-site “consultants” or the latest great “technology”, then let’s talk about a robust solution based upon a proven programmatic approach.

The solution is relatively simple….

  1. Treat ALL projects the same in terms of process, workflows, common data sets, etc:  Adopt a programmatic approach versus a project approach.
  2. Integrate planning, procurement, and project delivery teams and processes.
  3. Leverage information from participants and stakeholders on an early and ongoing basis.
  4. Maintain a common data environment (CDE), including current, locally researched detailed unit price construction cost data.
  5. Long-term mutually beneficial contracts and associated Operations Manuals/Execution Guides

You can save 20%-40% of the costs of projects while assuring complete financial visibility and transparency, as well as compliance.   Change orders will be virtually eliminated and costly procurement delays avoided.

Sure, all the above is embedded in an enterprise collaborative cloud environment, however, in our case, technology is just a means to an end… not the driver.

Schedule a quick 15-minute introductory call.

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Four BT, LLC    303 Riverwood Lane  Dunsmuir, CA 96025

 

Why LEAN Construction Matters

Remove Construction Barriers to Efficient Planning, Procurement, and Project Delivery

It’s now easier that ever to Remove Construction Barriers to Efficient Planning, Procurement, and Project Delivery… that, in the past, have resulted in rampant waste and poor satisfaction for everyone involved.

Facilities repair, renovation, and new builds are NOT complex, unmanageable beasts.  On the contrary, if a programmatic approach is applied for all projects and work orders, any organization can assure quality, on-time, and on-budget outcomes.

Time to learn how?

 

Why LEAN Construction Matters

Best Value Construction Delivery

Best value construction delivery requires a focus upon assessing a project’s cost over the whole life of the investment; planning, procurement, project delivery, and operations/maintenance.

An improved, programmatic approach to integrating planning, procurement, and project delivery is readily available, inclusive of all needed tools and support services.

Value management is now possible that enables real property owners to consistently plan and execute quality project on-time and on-budget.   The following elements are common in robust collaborative repair, renovation, and new build delivery systems.

  • Consistent programmatic approach applied to all projects and work orders.
  • Early and ongoing collaboration among all participants and stakeholders
  • Mutual trust and respect
  • Long-term, multi-party contract with associated Operations Manual / Execution Guide
  • Mandatory initial and ongoing training (multi-level / multi-format, minimum annually)
  • Financial visibility and transparency – locally researched unit price books
  • Quantitative key performance indicators
  • Enabling collaborative technologies

Request a quick 15-minute introductory call, or the Collaborative Construction Project Delivery Solution white paper.

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Best Value Construction Delivery

Collaborative Construction Solution

Collaborative Construction Solution – Public Sector

A collaborative construction solution, capable of consistently delivering quality repair, renovation, and new builds, on-time and on-budget, is available to any Public Sector real property owner.   All that is needed is owner leadership and commitment.

Lean Job Order Contracting 2021

The Public Sector facilities management sector has long suffered from poor productivity growth and high levels economic and environmental waste.  The root cause can be traced to poor owner leadership and commitment and the associated misalignment of owners and other project participants caused by traditional project delivery methods.

 

Traditional contracting methods typically involve the non-owner participants tendering a lump-sum price based on the owner’s proposed allocation of responsibilities and risks. Each non-owner participant has strong incentives to perform the contract package allocated to it well, but is far less invested in how other participants perform their contract packages. The project becomes a collection of disparate sub-projects, with each non-owner participant rewarded by performance of its sub-project, rather than the performance of the entire project.

Poor performance of one participant will often excuse other participants from the need to strictly fulfil their obligations, or entitle them to claim additional money from the owner. When things inevitably go wrong,  the participant’s financial interests are often served by blaming others and defending contractual positions, rather than working collaboratively to overcome the problem.

The over-riding goal of most contractor becomes minimizing the cost of performing the agreed scope or activity and maximizing profit. This is so even if doing more would reduce the owner’s total costs or otherwise result in better outcomes for the owner.  If the owner wants a participant to do more than the bare minimum required, to overcome a problem or achieve a better outcome, or to coordinate and integrate its work with those being delivered by other non-owner participants, the owner will typically have to compensate that participant for its additional costs, to restore its profit margin. Traditional construction project delivery simply doesn’t provide any incentive for non-owner participants to deliver outstanding performance in areas that deliver value to the project owner.   Just the opposite, traditional contractual incentives, such as liquidated damages and performance security, provide only negative incentives to ensure compliance with minimum requirements.

Finally, the workflow of traditional construction planning, procurement, and project delivery is just plain wrong!   Scoping and design of conventionally procured projects is generally completed, or well progressed, before the owner calls for proposals from constructors. Engaging a constructor to provide input during the scoping and design process to try to make the project easier and less costly to build, or to fast track the project by overlapping the scoping, design, procurement, and construction phases, simply isn’t even considered, let alone done.  This  adversely affects the owner’s ability to run a highly competitive, efficient process for the renovation, repair, or new construction work, and 90% of the time results in the owner paying a higher construction prices and late projects. 

It was out of these realities that the concept of integrate LEAN construction planning, procurement, and project delivery was born, and enabled.  An example is the 4BT PEP Solution, which embraces a wide and flexible range of approaches to overcome the misalignment of interests associated with traditional contracting, including

  1. Multi-party contractual commitments to collaborate, cooperate, and act in good faith;
  2. Continuous monitoring to enable early warning mechanisms designed to alert  participants to emerging issues so that solutions can be developed and agreed before the issue worsens;
  3. Early and ongoing involvement of the design/builder  and key specialist subcontractors in the scoping and design process;
  4. Robust workflows that address the key risks of cost, time, quality and liability;
  5. Governance that facilitate collective problem-solving and decision-making;
  6. And so much more….

Thus, LEAN, integrated construction planning, procurement, and project delivery fully addresses relationships of all parties to cost, time, quality, liability, decision-making.

 

 

Public Sector Facilities Professionals

Public Sector Facilities Professionals – The Elephant in the ROOM

Many public sector facilities professionals are well aware that actionable project (repair, renovation, new build) estimates should use current, locally researched unit price cost data, complete with labor, material, equipment, and productivity/crew information, in order to achieve reliable cost visibility and transparency.

Unfortunately most can’t achieve this due to lack of knowledge, awareness, and or support from their “leadership”.    Senior organizational leadership rarely, if ever, supports the “cost” to develop requisite decision-support tools and fully trained in-house facilities teams.

The next result is 20%-40%+ waste, excessive change orders, and late delivery, for 80%+ of ALL projects.

That’s the “hidden elephant” in the room.

Unless an owner has a good starting point, he/she, for all intents and purposes, is just monitoring and comparing their relative “guesstimate” (or those of their contractor and/or subs… not what the project should cost.   Secondly, unless robust processes are required and continuously improved (for example LEAN job order contracting and integrated project delivery), achieving targeted goals is unlikely.

Public Sector Facilities Professionals

www.4bt.us – Proven construction project delivery solutions

disadvantages of having a construction acquisition/procurement plan lacking granularity, disadvantages of having an acquisition/procurement plan which lacks granularity

The disadvantages of having a construction acquisition/procurement plan lacking granularity

There are major disadvantages of having a construction acquisition/procurement plan lacking granularity.

With respect to construction, renovation, maintenance, sustainability or repair procurements, lacking granularity results in a lack of cost visibility and transparency and financial management inefficiencies. A detailed unit price cost proposal should be required for all such projects. The information provided should be in a standardized data architecture, such as CSI Masterformat. Locally researched detailed unit price cost books provided the highest ability to represent actual costs and should be used by owners and service providers, in addition to other reliable tools and techniques.What are the disadvantages of having an acquisition/procurement plan which lacks granularity?

via www.4bt.us –

Facilities Professionals Need Training

Most Public Sector Facilities Professionals Need Training

91% of FM managers say there’s a gap between the knowledge and skills their team has and what they need to excel.

– 2021 PMI Survey

Facilities Professionals Need Training

  1. Improvement is never easy, and is especially difficult in the public sector where the same methods have been in place for decades.
  2. Nonetheless savvy public facility management professionals are diligently working to significantly alter the ‘status quo’ and achieve significant performance gains.
  3. Proven successes can be found where public sector FMers have, through their leadership, competence, and commitment, begun to implement integrated LEAN planning, procurement, and project delivery processes for their real property portfolio’s ongoing repair, renovation, maintenance, sustainability, and new build requirements. Examples of these processes are integrated project delivery, IPD, for major new construction, and LEAN job order contracting for repair, renovation, and “minor” new construction.
  4. With respect to these new processes, technology is an enabler, and should never be a driver.   Technology’s role is to simply help to accomplish objectives more efficiently.   This typically involves embedding proven, robust processes within tech to provide a solid platform within which employees can perform meaningful work.   FM and procurement teams need tools to help their work. Generic “Program Management”, “IWMS”, “ERP”, and other “general purpose” systems rarely improve work efficiency, but rather simply add another layer of administrative burden.

In short, a focus upon robust LEAN processes across all core FM related activities… planning, procurement, and project delivery… and subsequent selection and implementation of domain-specific technology, is a most direct path to best value outcomes.

Set up a quick 15-minute introductory call to learn more?

Learn more?

Why LEAN Construction Matters

Programmatic LEAN Job Order Contracting

LEAN Job Order Contracting, as represented by the 4BT OpenJOC(TM) Framework, is a programmatic methodology applied to all construction projects and work orders.

Typically all individual  construction projects have been considered to be unique, with each requiring its own approach, means, and methods.  This is a fundamentally flawed perspective that has significantly contributed to rampant historical economic and environmental waste across the AECOO sector (AECOO – Architecture, Engineering, Construction, Owner, Operator).

For example, the Project Management Institute (PMI) defines a project as follows; “a project is a temporary endeavor. undertaken to create a unique product or service”.   Certainly each construction project has a beginning and an end, however, unless they are all addressed in standardized, professional, and robust manner and associated workflows and a common data environment.  While there are certain unique elements to each construction projects, the granular tasks for virtually any construction project can be defined in advance and stored in a database.   This database, also referred to a detailed unit price book (UPB), or a construction task catalogue, includes the following information for each task:

  1. A description of the construction/repair/renovation/demolition task in plain English.
  2. A unit of measure for the task (each, square foot, cubic yard, etc.)
  3. Associated detailed costs for required labor, material, and equipment to complete the task per the unit of measure, and a total cost for the same.

Using a UPB enables any construction project to be represented in standardized terms which all involved parties can understand.  A UPB solves several major issues that have traditionally faced real property owners, architects, and builders.  First, a robust, detailed scope of work can be easily created and communicated and understood by all parties.  A poorly defined and/or poorly communicated scope of work is responsible for the majority of change orders and cost overruns encountered.   Secondly, a locally researched UPB provides the highest possible certainty with respect to costs.  Furthermore, the discrete elements of a UPB can be then organized into an appropriate work schedule.

A locally researched UPB is one of several key elements of Programmatic LEAN Job Order Contracting.  (Note: a “national average” cost database with/without location factors and “historical costs”, as well as lump sum cost from contractors or subcontractors do no provide requisite cost visibility, transparency, or cost management.)

Holistically, Programmatic LEAN Job Order Contracting is a performance improvement environment, consisting of proven processes, tools, data sources, and techniques. It is a structured  method  of eliminating  waste from throughout the
“project” life-cycle, from conceptualization, through integrated planning, procurement, and execution. Value management for all participants and stakeholders is a key focus that is achieved through everyone having a clear understanding of requirements on an early and ongoing basis and enhanced team dynamics.

Furthermore Programmatic LEAN Job Order Contracting doesn’t require pubic sectors to pay a percentage of JOC total annual construction for access to world class JOC tools, cost data, and support services, saving owners up to 10x+ in JOC administration fees.

Programmatic LEAN Job Order Contracting

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Variability is an inherent characteristic of construction.   The lack of a robust programmatic process-centric approach causes instability in performance of construction processes causing negative fluctuations of work and poor information flow.

Phases: Conceptualization-Planning-Procurement-Execution-Closeout

Primary Failure Causes:

  1. Lack of management’s leadership, commitment/ involvement/support
  2. Poor allocation of scarce resources
  3. Communications among various participants and stakeholders
  4. Team configuration and structure
  5. Social cohesion in the team  and organizational culture

Programmatic Lean Job Order Contracting

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Corporation, Revised and Updated”. New York, USA, Free Press.

Facilities Management Training Needed

Facilities Management Training Needed

91% of FM managers say there’s a gap between the knowledge and skills their team has and what they need to excel.

 

#1 FM managers identify capital planning and compliance & standards as their top training priorities for themselves.


#2 FM managers say their teams’ top training needs are leadership skills, strategic planning, emergency management, and communication.


#3 FM staff say their top training needs are capital planning, financial management, strategic planning, and compliance & standards.

Request the full report.

Where FM Teams Need Training (According to Managers)
• Leadership skills
• Strategic planning
• Emergency management
• Communication
• Capital planning
• Environmental health & safety
• Compliance & standards
• Innovation
• Project management
• Sustainability

Where FM Staff Need Training
(Self-Identified)
• Capital planning
• Financial management
• Strategic planning
• Compliance & standards
• Project management
• Contract management
• Sustainability
• Construction
• Emergency management
• Innovation

Where FM Managers Need Training
(Self-Identified)
• Capital planning
• Compliance & standards
• Strategic planning
• Leadership skills
• Emergency management
• Environmental health & safety
• Contract management
• Space management
• Financial management
• Project management

Request the full report.

Facilities Management Training Needed
Current Conditions of America's Schools, Job Order Contracting, LEAN Job Order Contracting

Current Conditions of America’s Schools

The current conditions of America’s schools are far from acceptable.

“In the last year, several school districts across the country have temporarily closed schools due to hazardous conditions of the school buildings that can pose health and safety risks to students, teachers, and
staff. For example, water damage caused by a leaking roof or heating, ventilation, and air conditioning (HVAC) system can lead to problems with indoor air quality and exposure to substances such as mold or asbestos.

Current Conditions of America's Schools
Current Conditions of America’s Schools

To address these and other concerns, public school districts collectively spend tens of billions of dollars each year on facilities construction needs at the nearly 100,000 K-12 public schools across the nation, according to
Department of Education data.

School districts’ highest priorities for their school facilities were improving security (an estimated 92 percent), expanding student access to technology (87 percent), and monitoring health hazards (78 percent), according to GAO’s school district survey. In school districts GAO visited, officials said they first address health hazards and safety issues. In nearly all districts GAO visited, security also had become a top priority, with some districts prioritizing security updates over replacing building systems, such as HVAC.” (Source: 2020, GAO Report – K-12 EDUCATION
School Districts Frequently Identified Multiple Building Systems Needing Updates or Replacement GAO-20-494)

These types of schools projects can be expedited with the use of LEAN Job Order Contracting. Full cost visibility and transparency are provided and the majority of projects are completed on-time and on-budget. Unfortunately most school districts don’t leverage LEAN Job Order Contracting due to lack of aware or leadership.

job order contracting
LEAN Job Order Contracting

Request LEAN Job Order Contracting white paper…

Why LEAN Construction Matters

Lean Construction – Overcoming decades of mistrust, lack of communication, and opposition between facilities owners, designers, engineers, and builders.

Lean Construction – Overcoming decades of mistrust, lack of communication, and opposition between facilities owners, designers, engineers, and builders… possible?

Only two of the following construction delivery methods are LEAN. Do you know which they are?

Construction Project Delivery Overview & Comparison
Construction Project Delivery Comparison

Construction Project Delivery Overview & Comparison

Design-Bid-Build

Traditional design-bid-build (DBB) delivery process with design, bidding, and construction in separate, sequential steps. Construction contract is generally awarded to the lowest bidder and/or lowest qualified builder, who then utilizes the subcontractors included in his or her bid.

Advantages
  • Process most familiar to public sector design and construction community.
  • Owner controls the design, which is completed under direct owner-A/E contract prior to construction.
  • Direct way to provide competitive pricing for entire construction contract.
Disadvantages
  • Adversarial, change-order-oriented environment is common between owner, A/E, and contractor.
  • Planning, procurement, and project delivery is inefficient and disparate.
  • Time-consuming redesign and rebid, and over-budget, unsatisfactory outcomes are common.
  • Project cannot be expedited with a collaborative fast-track process; drawings and specs must be 100% complete to bid (though latter rarely occurs).
  • Construction contract may be awarded to low bidder, without consideration to qualifications.
  • No contractor and limited A/E assistance with detailed estimating, plan checking, and constructability reviews during design phase.
  • General lack of technical and cost visibility and transparency. Bid shopping can occur and actual overhead and profit amounts are unknown.
  • Construction price is not fixed until after design and bid phases are completed, and original “lump sum” target cost is rarely met.

Design-Build

Design and build (DB) construction are provided under a single design-build contract initiated at the beginning of the project. A DB contract is awarded on the basis of price and/or qualifications.

Advantages
  • Single point of responsibility for both design and construction of the project.
  • A/E and contractor work together through all phases of the project.
  • Guaranteed maximum price (GMP) is fixed early in design phase of the project.
  • Construction contract is awarded on basis of design-build team qualifications and/or price.
  • Project can be expedited with fast-track construction, which can also reduce costs.
  • Generally less adversarial relationship between owner, A/E, and contractor.
  • Change orders may be reduced versus DBB due to A/E-contractor collaboration and contractual relationship.
  • Designer and builder have a greater motivation than DBB to ensure owner satisfaction when selections are based on qualifications and performance.
Disadvantages
  • High initial set up costs make DB suitable only for major new construction
  • Not a fully collaborative multiparty agreement. Owner can still be at odds with designers and builders.
  • While high set up costs required larger projects, project types must be relatively straightforward, where requirements can be fully documented at request for proposals (RFP) stage.
  • Major pre-planning effort is needed to prepare sufficient material for the request for quotations (RFQ)/RFP process.
  • Owner has less control (vs. IPD or LEAN Job Order Contracting) of design process, with the A/E typically working for the contractor.
  • Design changes can result in costly impacts to drawings or construction work in progress.
  • Disagreements related to intended quality of work are not uncommon.
  • Will generally not work any better than DBB if mutual trust relationships are not built.
  • May not be allowed some states.

Construction Manager at Risk

Construction manager at risk ( CM@R) includes a construction manager who works with the owner and A/E through design and proposals and manages subcontracts to complete the work. The CM@R is required to complete the project within the agreed-upon amount, or else is at risk to cover the additional costs.

Advantages
  • Project can be expedited with fast-track construction.
  • Construction contract is awarded on basis of CM@R qualifications and past performance.
  • Construction work is competitively priced through low bids of prequalified subcontractors.
  • Change orders are may be reduced due to A/E and contractor coordination through the design phase.
  • Owner controls the design, which is completed under direct owner-A/E contract.
  • Suitable for complex building types.
Disadvantages
  • Not fully collaborative.
  • Contingency costs are generally higher due to high risk of construction manager.
  • Fast-track construction presents risks related to incomplete construction documents.
  • Design changes during construction are extremely costly.
  • No process to assure mutual trust relationships built for all parties.
  • Is allowed in some states.

Construction Management with Bid of Fees and General Conditions

Construction is performed through a CM, who is selected on the basis of the lowest bid of fees and general conditions.

Advantages
  • A/E, owner, and contractor (CM)may work together through all phases of the project.
  • GMP may be fixed early, during the design phase of the project.
  • Project can be expedited with fast-track construction.
  • Owner can control the design.
  • Provides design-change flexibility for complex building types.
  • CM fee and/or general conditions amounts set through bid process.
Disadvantages
  • Lowest bid of fees and/or general conditions is not an indicator of CM capabilities or potential outcomes.
  • No sure path to cost savings. Fee and/or general conditions savings are generally much less than the cost of CM process inefficiencies.
  • Fast-track construction presents risks related to incomplete construction documents.
  • May not be allowed in some states.

Agency Construction Management with Design-Bid-Build

Agency construction manager is hired as a consultant to help represent the owner’s interests during the construction phase of a DBB project.

Advantages
  • Same pros as noted for DBB process.
  • Agency CM can provide industry experience and estimating, scheduling, and project management expertise for the owner’s benefit.
Disadvantages
  • Same cons as noted for DBB process.
  • Agency CM has no direct accountability for the success of the construction process.
  • Owner must pay the fees of an agency CM in addition to the contractor’s fees for the construction work.
  • Agency CM must be committed to representing the owner first… as a result, same potential antagonistic environment as DBB.

Multiple Prime Contracts

Multiple direct owner-contractor prime construction contracts that are bid for various trades, or groupings of trades, as needed to complete the entire scope of construction.

Advantages
  • Construction method required by the procurement law in certain states.
  • Can reduce markups of general contractors.
  • Can be preferred by some established subcontractors who have prime contracts with the owner.
  • Project can be expedited with fast-track construction.
Disadvantages
  • Construction is awarded to multiple low bidders, without consideration of their qualifications.
  • No single point of responsibility for the construction of the various trades related to the project.
  • The owner is responsible for conflicts and inefficiencies between the multiple prime contractors.
  • No contractor assistance with estimating, plan checking, and constructability reviews during design.
  • Bid shopping can occur and actual overhead and profit amounts are unknown.
  • Adversarial, change-order-oriented environment common, similar to DBB.
  • Construction price is not fixed until after the design and all bid processes are completed.
  • Time-consuming redesign and rebid is common, as is late, over-budget outcomes.
  • Is not legal in some states.

Job Order Contracting

Job Order Contracting is a fully collaborative indefinite delivery, , indefinite quantity, long-term (one year, with up to four option years) construction method with general contractors and/or trades/subcontractors who are selected through a fee markup (co-efficient/factor) bidding process using an selected detailed unit price book (UPB), and who perform multiple projects through work orders. Based upon location, projects may include repair, renovation, and new construction.

Advantages
  • Expedites projects by eliminating project-specific bid phases and reducing design documentation requirements.
  • Properly employed, JOC is a highly collaborative environment that can consistently deliver quality, on-time, and on-budget outcomes.
  • Allows for construction price “negotiation” based on an established construction cost unit-price book. (Note: prices are non-negotiable, however, quantities and selection of line items can be revised prior to acceptance of contractor proposal).
  • Fully collaborative relationship between owner and awarded design/builder.
  • Can be utilized with single or multiple job order contracting (JOC) contractors.
  • Bid shopping is not allowed.
  • Performance-based reward system.
  • Fully cost and technical transparency.
  • Robust, proven, auditable, and compliant process.
  • Support, training, and technology for implementation and management is readily available.
Disadvantages
  • Owner must possess requisite leadership skills and technical competencies.
  • Organization must be committed to collaborative process that mutually benefits all parties.
  • Not suitable for major new construction. Works best on the typical numerous and ongoing repair, renovation, sustainability, and minor new build projects.
  • Allowable JOC total annual JOC Program size and individual JOC project size may be limited by jurisdiction procurement codes.
  • May not be allowed, or be limited in some states.
  • JOC vendors basing their services upon a percentage fee of total annual JOC construction volume can provide highly costly.
  • JOC can be inappropriately simply speed project procurements and/or approve projects that otherwise would not have been approve via traditional methods.
Disadvantages
  • Owner must possess requisite leadership skills and technical competencies.
  • Organization must be committed to collaborative process that mutually benefits all parties.
  • Not suitable for major new construction. Works best on the typical numerous and ongoing repair, renovation, sustainability, and minor new build projects.
  • Allowable JOC total annual JOC Program size and individual JOC project size may be limited by jurisdiction procurement codes.
  • May not be allowed, or be limited in some states.
  • JOC vendors basing their services upon a percentage fee of total annual JOC construction volume can provide highly costly.
  • JOC can be inappropriately simply speed project procurements and/or approve projects that otherwise would not have been approve via traditional methods.

Integrated Project Delivery

Integrated project delivery (IPD) is a fully collaborative, environment supported by multi-party agreement. The owner, the design team, and the primary contractor and subcontractors collaborate for the design and construction of a project on an early and ongoing basis. The goal of the collaboration is to minimize conflict among participants and steer the project to a favorable outcome for all participants. A sharing of project risk/reward is a key feature of IPD.

Advantages
  • Expedites projects by assuring early and ongoing information sharing among all participants and stakeholders.
  • Can significantly reduce project costs and improve other outcomes for all participants.
  • Fully collaborative relationship between all parties throughout all phases.
  • Focus upon process improvement.
  • Overall cost savings.
Disadvantages
  • Owner must possess requisite leadership skills and technical competencies.
  • Organization must be committed to collaborative process that mutually benefits all parties.
  • High initial set up costs make IPD suitable only for major new construction projects.
  • Additional work required from all parties.
  • May not be allowed in certain jurisdictions.
Construction Project Delivery Overview & Comparison
Construction Project Delivery Overview & Comparison

A thorough understanding of this Construction Project Delivery Overview & Comparison is a first step towards consistent achievement of best value outcomes for all participants and stakeholders.

Why LEAN Construction Matters

Test the Bounds of Job Order Contracting?

California Contractor Tests the Bounds of Job Order Contracting

By Garret Murai, February 15, 2021 (source: https://calconstructionlawblog.com/2021/02/15/california-contractor-tests-the-bounds-of-job-order-contracting/)

Most contractors have heard of design-bid-build, design-build, construction manager at risk, and even public private partnerships, various project delivery methods, which, at their heart, focus on balancing the interests of the various parties involved in a construction project, from owners, to design professionals, to contractors. There’s one project delivery method you may not be as familiar with though: Job Order Contracting, also known by its acronym JOC.

JOC contracting is a project delivery method used on public works projects and has been authorized to be used by California K-12 school districts, community colleges, CalState universities, and the Judicial Council of California, which, among other things, is responsible for the construction of California state courts. It is intended to be used on smaller, independent, long-horizon project typically involving maintenance, repair and refurbishment. Think periodic maintenance of facilities.

JOC contracts are administered by public entities issuing a request for proposals. The public entity then awards a JOC contract to the lowest responsible bidder. The lowest responsible bidder then enters into a JOC contract with the public entity. JOC contracts typically have a duration of one (1) year and are limited to a total construction value of $4.9 million increased annually based on the Consumer Price Index. When entering into a JOC contract, a JOC contractor agrees to perform work at prices set forth in a Construction Task Catalog also known as a unit price book which includes current local labor, material and equipment costs. Unit prices are then adjusted by a “bid adjustment factor” based on the JOC contractor’s bid. When work is needed, the public entity will then issue a job order to the JOC contractor.

The next case, Los Angeles Unified School District v. Torres Construction Corp., Case No. B291940 (October 26, 2020), 2nd District Court of Appeal, involved a JOC contract, a JOC contractor who charged rates higher than those specified in the unit price book, and the JOC contractor’s defenses against claims by the public entity that it had overcharged for its work.

The Torres Case

Torres Construction Corp. was awarded a JOC contract by the Los Angeles Unified School District. The JOC contract included a Construction Task Catalog with unit prices as well as general conditions. Under the general conditions, after a job order is issued by LAUSD, Torres and LAUSD were to participate in a “joint scope meeting” from which the parties would develop a detailed scope of work. LAUSD would then issue a request for proposals to Torres who would prepare a “job order proposal” setting forth the cost of performing the work in accordance with the unit prices set forth in the Construction Task Catalog. Once approved, the job order proposal becomes a part of the JOC contract.

Between 2005 and 2008, Torres performed work on five projects under the JOC contract involving the installation of kitchen equipment and electrical upgrades. In 2011, LAUSD audited Torres’ project files as it was permitted to do under the JOC contract. Under the JOC contract, LAUSD was permitted to conduct an audit for period of up to four (4) years from the date a notice of completion was recorded. If the audit revealed overpricing or overcharges in excess of one percent (1%) of the total contract amount, then, an adjustment would be made equal to the overpricing or overcharging and LAUSD would be entitled to be reimbursed for the cost of the audit. The audit performed by LAUSD revealed substantial irregularities in the amounts charged by Torres, specifically, Torres did not supply equipment specified in its job order proposals, did not use pricing in line with unit bid pricing in the Construction Task Catalog, and did not provide the services specified in its job order proposals.

In 2012, LAUSD filed suit against Torres and its performance bond surety Western Surety Company. While the case was pending, LAUSD filed a motion for summary judgment on certain of the job order proposals which it prevailed on. As to other job order proposals, the trial court granted LAUSD’s motion for directed verdict following trial at the close of evidence. And, finally, as to the final job order proposals, the jury found in favor of LAUSD, and the trial court later awarded LAUSD prejudgment interest and attorney’s fees.

Torres appealed.

The Appeal

On appeal to the 2nd District Court of Appeal, Torres made a number of arguments challenging the trial court’s granting of LAUSD’s motion for summary adjudication, LAUSD’s directed verdict, and the jury verdict. Among other things, Torres argued:

  1. The JOC contract, because it required that job order proposals be submitted after-the-fact, was not an enforceable contract but merely an agreement to negotiate.
  2. The JOC statute required that LAUSD obtain an estimate so that it could compare Torres’ job order proposal with the estimate, and because LAUSD failed to obtain an estimate, no contract was formed because LAUSD failed to satisfy a condition precedent to entering into a contract.
  3. By accepting Torres’ job order proposals, LAUSD waived its right to claim that Torres breached the pricing provisions of the JOC contract.

A. JOC Contract: Enforceable Contract or Mere Agreement to Negotiate

As to the first issue, whether the JOC contract was an enforceable contract or merely an agreement to negotiate, the Court of Appeal held that the JOC contract was an enforceable contract not merely an agreement to negotiate, because it contained “every key term of future job orders except one: the Scope of Work for any projects which LAUSD would assign to Torres.”

Further, held the Court of Appeal, as to the one key term not negotiated, the scope of work, a scope of work was ultimately agreed to by the parties after Torres submitted and LAUSD approved Torres’ job order proposals:

LAUSD is not suing on a Scope of Work that never materialized. There is no claim that the required Scope of Work for each job order was not established as required by the General Conditions of the JOCs. Under the General Conditions, once the Scope of Work is properly established, LAUSD issues its RFP, and the contractor is required to respond with a proposal which prices the work using the applicable formulas in the General Conditions. This is arithmetic, not negotiations.

B. LAUSD’s Failure to Obtain an Estimate: Failure to Satisfy a Condition Precedent or Not

Under the JOC statute, “[I]n order to prevent fraud, waste, and abuse,” a K-12 school district using a JOC project delivery method is required to “[p]repare for individual job order developed under a job order contract an independent unified school district estimate.” The estimate it to be “prepared prior to the receipt of the contractor’s offer to perform work” and is supposed to be “compared to the contractor’s proposed price to determine the reasonableness of that price before issuance of any job order.”

According to Torres, the statutory requirement that LAUSD obtain an estimate “prior to” receipt of Torres’ job order proposal was a condition precedent to entering into an enforceable contract, and because LAUSD failed to obtain an estimate “prior to” receipt of Torres job order proposal, the JOC contract was unenforceable.

The Court of Appeal disagreed finding that “[t]here is no language in the statute expressly conditioning a contractor’s duty to prepare a correctly priced proposal on LAUSD obtaining an independent estimate.”

Note: While I don’t necessary disagree with the Court’s conclusion that obtaining an estimate is not a condition precedent, I’m also not quite sure that I see the Court’s logic here, since the condition precedent argued by Torres’ is not its duty to prepare a correctly priced proposal, but rather LAUSD’s duty to obtain an estimate before receipt of Torres’ job order proposal as stated in the JOC statute (i.e., “prior to”).

C. Acceptance of Torres’ Job Order Proposals: Waiver by LAUSD of the Pricing Provisions of the JOC Contract or Not

Finally, Torres argued that by accepting Torres’ job order proposals, LAUSD waived the pricing provisions of the JOC contract even if the pricing contained in the job order proposals were at variance with the pricing provisions of the JOC contract. Again, the Court of Appeal disagreed.

First, the Court of Appeal pointed out, the JOC contract includes an anti-waiver provision which provided that:

No action or failure to act by [LAUSD] shall constitute a waiver of a right, remedy, or duty afforded to [LAUSD] under the Contract Documents, nor shall such action or failure to act constitute approval of or acquiescence in a breach thereunder, except as may be specifically agreed to in writing.

Second, the Court of Appeal pointed out, for there to have been a waiver, LAUSD would have had to have waived two rights, the right to have a proposal prepared by Torres in accordance with the JOC contract, and the right to audit Torres’ project files and recover overcharges:

Further, in order for appellants to prevail, LAUSD would have to have waived two rights: 1) the right to have a proposal prepared in accordance with the pricing formulas; and 2) the right to later audit the job order and recover overcharges. Appellants have not pointed to any admissible evidence showing that LAUSD personnel were aware that Torres’s proposals violated the General Conditions pricing formulas or that LAUSD expressly relinquished the right to require those formulas. Appellants point to the conduct of LAUSD personnel in approving and signing the job orders. Even assuming for the sake of argument that signing a job order without checking for pricing conformity could be viewed as conduct inconsistent with an intent to enforce the General Conditions pricing formula and that such waiver was not prohibited by the express terms of the anti-waiver provision, this conduct would only be inconsistent with an intent to enforce the pricing formulas through the job order issuance process. The conduct is not inconsistent with a belief that a subsequent audit could and would make a compliance determination and that any overcharges could be recovered. Thus, for waiver purposes, LAUSD’s conduct is not inconsistent with an intent to enforce the pricing formulas.

Finally, the Court of Appeal held that permitting a waiver would be inconsistent with the JOC process “by removing the requirement that a contractor follow the pricing formulas in the General Conditions in preparing its proposal.”

Conclusion

So, there you have it. A broad overview of the JOC project delivery method, which, unlike other kinds of project delivery methods, essentially includes two different proposal mechanisms, one when a contractor bids on a request for proposals, and another when a JOC contractor bids on a specific project, and one Appellate Court’s view of the application of contractual principals to that project delivery method.

JOC Program Best Practices

Auditor Recommended JOC Program Best Practices

The following are auditor recommended JOC Program best practices.  (Partial Listing)

 

A JOC program should never be used to bypass the lengthy traditional procurement process so that projects can be pushed along quickly, regardless of size or type, and without considering if JOC is the best option.

▪ Negotiating individual projects is critical to ensuring quality work at fair and reasonable prices.

▪ You should establish guidelines for evaluating and negotiating Job Order Contract proposals.

▪ Place limits (caps) on the use of non-catalog items.

▪ Proposals should be reviewed and priced by a fully independent source aside from the project manager and contractor creating a mechanism to gauge whether the contractor’s proposals are reasonable

▪ CONFLICTS OF INTEREST-Projects where the consultant, acting as project manager, reported directly to another consultant instead of reporting directly to the JOC program manager.  Excessive use of consultants. No JOC program controls to monitor or prevent multiple consultants from one consulting firm working in different capacities on the same project.

▪ Develop specific training academies or programs that provide skills needed specifically for managing JOC projects and your entity’s policies and procedures.

▪ Provide a detailed scope of work (SOW), which should serve as the roadmap for the JOC contractor to build an accurate and thorough cost proposal that meets the needs of your entity.

▪ Ensure procurement internal control processes are well designed, rigorous and consistent (there should be no conflicting T&Cs).

▪ Use a standard sign-off and checklists to capture requirements.

▪ If low bid is not selected, have a document separate from the scoring sheets with a thorough explanation.

▪ Have a succession plan for turnover (loss of an experienced player in middle of the process may have a serious impact on the project).

▪ Rotate duties occasionally (to help avoid the above).

▪ Provide more staff training as the need is identified.

LEAN Facilities Repair and Renovation

LEAN Facilities Repair and Renovation

LEAN Facilities Repair and Renovation

A LEAN Facilities Repair and Renovation approach drives optimal capital reinvestment outcomes via a collaborative environment and transparent costing.

LEAN Facilities Repair and Renovation is a programmatic systems approach that integrates the planning, procurement, and project delivery process for public sector facilities owners and their design/builders.   Unlike traditional methods, LEAN job order contracting assures a detailed scope of work and reliable costs via a locally researched unit price book.  Furthermore, work flows, documents, and required approvals are clearly defined for all participants and stakeholders.

While each of the numerous repair, renovation, and new builds may be unique, all are optimally execute within a common process and common data environment.  This fact has been proven via numerous research projects and case studies.

With appropriate leadership and support, any public sector organization can implement a LEAN facilities repair and renovation framework and significantly improve life-cycle outcomes.   Furthermore, the programmatic approach virtually assures compliance and financial visibility and transparency.

The single biggest barrier is cultural resistance to change.

Let’s schedule a quick 15-minute chat to see if you organization is ready for the challenge.

  • Optimize facilities capital reinvestment outcomes
  • Collaborative and compliant environment
  • Full financial visibility and transparency
  • Proven

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Up to 57% of productivity is lost during the construction process. – 2014, Lean Construction Institute

 

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Why LEAN Construction Matters

Actionable Construction Cost Data

Actionable construction cost data is required to assure financial visibility and transparency and to create a detailed, well-communicated scope of work.

The use of “national average” cost databases and “location factors” or “cost indexes” does not provide sufficient information to create reliable construction cost estimates.

Locally researched detailed unit price books, when used by an experienced construction cost estimator, are the only tool available to create reliable construction cost estimates for owners and their design/builders.

Actionable cost data is critical for successful …

  • Forecasting cost of future projects
  • Cost comparisons
  • Establishing unit rates for tasks / work orders
  • Monitoring and controlling of construction cost
  • Design cost planning
  • Compliance and Risk Mitigation

 

via www.4bt.us – Unlike other cost databases available, 4BT construction cost data includes locally researched labor, material, and equipment costs not national averages.  4BT construction cost data is created and maintained by an professional team with decades of cost engineering, project management, and capital planning experience, including working for organizations such as the R.S. Means Company, LLC,  and VFA, Inc.  A team that saw the need for more representative detailed line unit price construction cost data.

4BT OpenCOST Cost Data is available via the Cloud and comes with the 4BT-CE Cloud Cost Estimating Module.

Actionable Construction Cost Data

Kuwait Job Order Contracting

Kuwait Job Order Contracting and Facilities Management Market

Kuwait Job Order Contracting market size and facilities management market size for repair, renovation, and new construction.

The Kuwait facilities management sector is estimated at over $1.2B with a anticipated 10% annual growth through 2025.

Job order contracting and similar IDIQ projects are being performed at Camp Arifjan, Ali Al Salem Air Base, Camp Buehring, Al Jaber Air Base, Camp Patriot, Udari Range, and Kuwait Naval Base.

 

via Four BT, LLC – Best value job order contracting and lean construction planning, procurement, and project delivery solutions.

Why LEAN Construction Matters

JOC Unit Price Book Updates

JOC unit price book updates should be done annually, at a minimum.

The updates should include research and associated appropriate granular changes for all labor items (trades), as well as material and equipment updates for the specific local market.

Using a economic index, or an “adjustment factor” applied to the UPB at the end of each year is NOT RECOMMENDED. The use of factors as a means to update a UPB does provide sufficient cost visibility.

JOC Unit Price Book Updates

#constructioncostdata #adjustmentfactor #UPB #jobordercontract #jobordercontracting #unitpricebook #constructioncostmethodology #constructioncostresearch

Job Order Contract Performance Measurement Required

Job Order Contract Performance Measurement Required

Job Order Contract Performance Measurement is  required in order to achieve best value and in order for public sector administrators to meet their fiduciary responsibilities.  Unfortunately, JOC Program performance measurement is severely lacking.  Instead, JOC is being treated as a commodity and used primarily to speed procurement.

In order for a JOC Program to provide its full potential, provide significant benefits,  and also be in compliance with applicable statutes, independent third-party audits and continuous performance measurement are needed.

Public sector owner Leadership, Policies and Strategies, People, Process, Information, and Technology are core considerations when developing key performance indicators (KPIs).   KPIs should monitor financial perspectives, internal process perspectives, and client/end-user perspectives.

Request a list of JOC KPIs…..

Learn more about JOC, and how to stop all those underperforming repair, renovation, and new builds…

Job Order Contract Performance Measurement
Job Order Contract Performance Measurement Required

 

LEAN JOC Program

LEAN JOC Program

A LEAN JOC Program enables any public sector facilities management team to integrate construction planning, procurement, and project delivery… and consistently deliver quality repair, renovation, on-time and on-budget with full compliance and cost visibility, and with the lowest administrative cost.

How a LEAN Job Order Contracting differs from “traditional” Job Order Contracting….

  • Value consideration in not limited to a “project”
  • Program life-cycle perspective
  • Tools and methods to establish “success” for all parties
  • Client, design-builder, and environmental considerations
  • Value consideration includes functional and broader community issues
  • Best value procurement
  • Stakeholder engagement and early involvement of all participants
  • Contract, inclusive of execution guides, that mandate collaboration and information sharing
  • Program and process centric decision-making
  • No excessive “percentage fee” based upon construction value
  • You retain and build knowledge for your internal teams

LEAN Job Order Contracting
LEAN JOC Program

LEAN JOC Program

 

jobordercontracting.org

4BT provides methods and tools for optimizing repair, renovation, and new build deliver via the implementation of a proven process-based approach.  Many public sector owners overlook the core means and management of facilities construction planning, procurement, and project delivery.  As a result, each project is dealt with as a totally “new” exercise.  This results in excessive, redundant, and inefficient activities and poor outcomes.

Overlooking the significance of the construction delivery method and the need for a consistent programmatic approach is the primary cause of construction project failure.  Without a efficient core process applied to every project, waste in all formats is the most likely outcome.  The result is incompatible with a public sector professional’s role of financial stewardship.

Improving Construction Outcomes

Improving Construction Outcomes is an Owner’s Responsibility

Improving construction outcomes is an owner’s responsibility.  Owner leadership and commitment remain the only solution to rampant facilities repair, renovation, and new build waste.   It is up to an owner to define, implement, and manage a robust, repeatable, and efficient process to assure best value project planning, procurement, and project delivery, including building strong, outcome-focused internal and external teams.

“People never want to be part of the process, but they want to be part of the outcome. The process is where you figure out who’s worth being part of the outcome.”

A robust process, that embeds a LEAN programmatic approach for all projects, can assure the consistent delivery of quality, on-time, and on-budget repair, renovation, sustainability, maintenance, and new build requirements.   All of the tools and services required are readily available. If you are a public sector facilities management professional, it’s your choice whether to implement significant improvement, or continue to make the mistakes of the many.

Rethink, rebuild, and improve your repair, renovation, and new build activities and reduce costs 20% – 30%+ by implementing robust, integrated LEAN construction planning, procurement, and project delivery. If you already have a Job Order Contracting Program to manage you repair, renovation, and minor new builds, you can reduce your administration costs up to 10x, and while improve service levels. We are excited to introduce a super-efficient Job Order Contracting Solution that simplifies the JOC process, adds transparency, and assures compliance.

You can now easily deploy robust LEAN JOC methods and consistently deliver quality repair, renovation, and new build project success with the lowest possible administrative burden.

The Value of Process, Shared Purpose, and a Common Information Environment

“Consistently Deliver Quality, On-Time, and On-Budget Repair, Renovation, and New Builds”

You already know that 80%-90% of ALL construction projects are late, over-budget, or poorly completed.

The PROCESS of planning, procurement, and project delivery via owner leadership and commitment, and robust LEAN Job Order Contracting, remains the only proven method to consistently achieve quality outcomes on-time & on-budget.

Cost effectively managing your facilities to support your organization’s mission requires the ability to

1.) define scope and cost reliably and in a detailed manner,

2.) procure services cost effectively, and then

3.) execute projects efficiently.

Fully defining, implementing, and managing best value repair, renovation, or new construction processes is a fundamental requirement for achieving any level of measurable improve in outcomes.   Studies have clearly demonstrated that a poorly prepared, poorly communicated scope of work is the primary cause of  construction project failures. These same studies have shown that the construction delivery method, the PROCESS, impacts all aspects of a project more than any single element in this regard.

Improving Construction Outcomes is a public sector owner's responsibility and requires both leadership and commitment.
Improving Construction Outcomes is a public sector owner’s responsibility and requires both leadership and commitment.

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  • Long-term, holistic implementation
  • Focus upon people, relationships, and outcomes
  • Common data environment and early/ongoing information sharing among all participants/stakeholders
  • Integrated planning, procurement, and project delivery
  • Waste reduction/value maximization
  • Collaboration internally and throughout supply chain
  • Metrics/key performance indicators
  • Written operations manual/execution guide as part of long-term multi-party agreement
  • Performance-based reward system
  • Shared risk/reward
  • Continuous Improvement

 

The term “sustainable development’ was first used in 1987 by the Brundtland Commission, a United Nations initiative to improve the global environmental, economic and social conditions (WCED, 1987).   Similarly “sustainable construction” was a term used in 1998, and perhaps best defined as “the creation and operation of a healthy built environment based on resource-efficiency and ecological principles”(Huovila and Koskela, 1998) (Kibert (2005).   Robust processes, methods, and tools have existed for decades, and have subsequently been refined to help organizations implement these approaches.   Owner leadership and commitment remains the only significant barrier to widespread adoption.

References:

Huovila, P. and Koskela, L. (1998). “Contribution of the Principles of Lean Construction to
Meet the Challenges of Sustainable Development.” IGLC-6, Guarujá, Brazil.

Kibert, C. J. (2005). “Resource Conscious Building Design Methods.” Sustainable Built
Environment, 1, 1–11.

WCED (1987). “Our Common Future: The Brundtland Report.” World Commission on
Environment and Development, (ed.), Oxford University Press, Oxford, UK.

and improve satisfaction, eliminate change orders, eliminate construction change orders.

Virtually eliminate Change Orders

Any facilities owner or management professional can virtually eliminate change order for repair, renovation, and new builds.

Change orders, or modifications to the parties’ construction contract, can be owner generated, but typically are the result of a poorly defined and or poorly communicated scope of work.    Change orders easily add 20%-30% or more to the total cost of a project, create delays, and generally frustrate the parties involved.

Project delivery methods have evolved over the past few decades that significantly mitigate change orders.    Integrated project delivery (IPD) and LEAN job order contracting (JOC) are the most widely known and robust of these collaborative and integrated construction planning, procurement, and delivery methods.

Early and ongoing communication, a common data environment,  a collaborative mindset and an operating environment that facilitates best value outcomes for all participants, limits both risk and change orders.

Eliminate change orders for repair, renovation, & new construction and reduce costs 20%-30%, shorten delivery times, and improve satisfaction

Eliminate change orders for repair, renovation, & new construction and reduce costs 20%-30%, shorten delivery times, and improve satisfaction

improve the likelihood of success of construction project outcomes

Significantly improve the likelihood of success of construction project outcomes

 

improve the likelihood of success of construction project outcomes
Improve the likelihood of success of construction project outcomes

Any real property owner can significantly improve likelihood of success of construction project outcomes.  It simply requires owner leadership, commitment, and support to implement and maintain a robust programmatic approach for all facilities repair, renovation, maintenance, sustainability, and new build projects.

Here’s the truth…

While all the tools and services are readily available to assure consistent delivery of virtually all facilities projects in a quality manner, on-time, and on-budget, there are multiple barriers to implementation and continuous improvement.  The barriers are largely cultural and involve the ability of an owner to shift from traditional ad hoc inefficient methods.

Barriers to Efficient Facilities Repair, Renovation, and New Builds

Quite simply, an owner can elect to continue to make the mistakes of the many, or implement a robust program to support best value project planning, procurement, and project delivery.

Let us help?

Improve the likelihood of success of construction project outcomes

“Traditional construction project delivery practices fail to provide a solid basis for improvement and are inadequate.”

Team with us to….

1. Deliver the best possible tools and services to support LEAN Job Order Contracts and other forms of integrated project delivery for public sector facilities repair, renovation, maintenance, sustainability, and new builds.

2. Promote a better understanding of how the built environment influences human behavior, health and organizational productivity,

3. Build awareness of the strategic and operational value of LEAN, collaborative facilities management practices with respect to meeting emerging environmental and economic challenges,

4. 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,

5. Disseminate information about proven business process, tools, and research specific to best management practices (BMPs),

 

We support Relationship-based and Knowledge-driven Construction Planning, Procurement, and Project Delivery. This is a programmatic process-based approach that integrates disparate teams throughout the planning, procurement, and project delivery phases on an early and ongoing basis.  With appropriate owner leadership and support, lean construction better meets customer needs while using fewer resources. 

Barriers to efficient facilities repair
2012, Dehdasht/Zin – BARRIERS OF SUSTAINABLE LEAN CONSTRUCTION IMPLEMENTATION: HIERARCHICAL MODEL.

Job Order Contract Performance Measurement

Job Order Contract Performance Measurement

Job Order Contract Performance Measurement is critical, but often overlooked. JOC Programs can provide significant benefit when designed and managed properly. Unfortunately, they can easily just become an abused process of simply speeding repair, renovation, and new build projects through without proper oversight and at excessive cost.

JOC, when properly used, is an integrated LEAN construction planning, procurement, and project delivery method in which the owner provides leadership and oversight within a collaborative, mutually beneficial relationship with design/builders. JOC can consistently delivery quality projects, on-time, and on-budget.

First and foremost, using consultants as project managers is problematic, as is paying a % of construction volume for “JOC consulting services”. This approach, as highlighted in independent JOC audits sets a stage for mismanagement, waste, and potential fraud.

Schedule a call to learn more…

Schedule a call to discuss the above, and how to monitor JOC Program performance.

via www.4bt.us – making JOC simple

Achieve 25%-30%+ average construction Savings

How to Achieve 25%-30%+ average construction Savings

If you are wondering how to How to Achieve 25%-30%+ average construction savings, it’s really simple. Just stop doing the same old things that will never work.

Get a Price

An average savings on the order of 25 to 30 percent can be achieved when facilities repair, renovation, maintenance, and new build processes are standardized at a program level. Integrated planning, procurement, and project delivery is conceived and executed with the same supply chain approach over the life of a program in which the owner teams (procurement, facilities management, leadership) and suppliers (architects, engineers, builders, subcontractors) remain unchanged. The integration of People, Process, Information, and Technology within a standardized framework has consistently proven to yield significant cost savings (see references below).

Get a price

References:

Ballard, G., Howell, G., A. 2003. Competing Construction
Management Paradigms. Proceedings of the 2003 ASCE
Construction Research Congress, Honolulu, Hawaii.

Ballard, G., Howell, G., A. 2004. Competing Construction
Management Paradigms. Lean Construction Journal, 1(1),

Koskela, L., Application of the New Production Philosophy to Construction, technical report No. 72, Center for Integrated Facility Engineering, Department of Civil Engineering, Stanford University, CA, 1992.

Merrow, E. and Walker, J. , The Efficacy of Unusual Contracting Approaches, UIBC 2018, IPA, November 2018.

Oswald, T. H. and Burati, J. L., “Guidelines for implementing total quality management in the engineering and construction industry”, CII Source Document 74, report to the Construction Industry Institute, Austin, TX, 1992.

Walker, D.H.T., “An investigation into factors that determine building construction time performance”, PhD thesis, Department of Building and Construction Economics, Royal Melbourne Institute of Technology, Melbourne, Australia, 1994.

via 4bt.us – making construction simpler