Solving Facilities Repair

Solving Facilities Repair, Reno, New Build Knowledge Problems, Process Problems, Data Problems, and Management Problems

We are solving facilities repair, reno, new build Knowledge Problems, Process Problems, Data Problems, and Management Problems

People, Process, and Information Solve Problems

What You Can Do

People, Process, and Information Solve Problems, not technology.

Building competent internal and external teams and having them working toward common, mutually beneficial goals, via an established robust process is the ONLY pathway to consistent BEST VALUE outcomes.

If you are not willing to change Culture, Principles, and Outcomes, do not bother to read further.

It will take fundamental disruption beyond BIM to bring the construction industry forward.

If you believe BIM, CMMS, CAFM, IWMS, or any other technology will resolve you track record of over-budget, late, and poor-quality project, do not bother to read further.

The Path Forward

Significant opportunities and benefits are available to any real property owner willing to address the ever-present challenges associated with facilities life-cycle management and the myriad of ongoing repair, renovation, maintenance, and new builds.

The benefits of collaborative teams working within an integrated Planning, Procurement, and Project Delivery Environment are well documented. Instead of the common industry average high (80%-90%) project failure rates, owners and their services partners can consistently deliver quality projects on-time and on-budget.

All the tools and support services are readily available to drive added value for all project participants and stakeholders. The key is to set up a programmatic approach, within with all projects are planned, procured, and executed.

Once adopted, everyone involved, owners, designers, and builders have complete, detailed technical and cost visibility and transparency. This fact alone eliminated the #1 cause of project failure…. a poorly defined, poorly communicated Scope of Work.

Conventional planning, procurement, and project delivery methods are incapable of consistently delivering best value outcomes. In fact, any approach lacking the focus upon integrating teams, processes, and information for all parties approach without the integration of people, processes, and common information induces excessive costs and failure rates.

The 4BT OpenJOC and OpenBuild Environments embed proven processes that enable all projects and work orders to be consistently planned, procurement, and executed. When properly implemented, projects can be procured and executed in weeks versus months, project delivery times will be shorter, and cost savings of 20%-40% achieved. If you already have a JOC program, administrative costs can be reduced 3x to 10x!

Here is what we can do together….

  1. Jointly plan, prepare, and deploy a best value JOC Program in 60 days
  2. Base all tasks and costs on a locally researched, detailed unit price cost book, developed and maintained for your location.
  3. Training and support for your teams and all awarded contractors.
  4. Real-time, integrated project planning, procurement, and project delivery supported within a collaborative technology platform.
  5. Continuous improve as team members build and maintain knowledge.

Let us work together to remove the barriers and build a solid foundation for the future!

Solving Facilities Repair, Reno, New Build Knowledge Problems, Process Problems, Data Problems, and Management Problems to Drive Best Value

Job Order Contracting Doesn't Have to be Complex or Expensive to consistently drive quality, on-time, on-budget facilities projects

Job Order Contracting Doesn’t Have to be Complex or Expensive

Job Order Contracting doesn’t have to be complex or expensive. The numerous, ongoing facilities repair and construction project facing real property owners and facilities management professionals unfortunately have a high probability of failure. 80%-90% are late, over-budget, or basically a train wreck for one or more participants.

While there are many reasons why projects fail, it is the project delivery method and owner leadership and culture that ultimately is the primary cause.

The Design-Bid-Build (DBB) model has perpetuated an antagonistic inefficient environment for decades. Construction Management at Risk (CM at Risk) and other methods have done little to improve the situation.

If you want different outcomes, it’s time to try something different.  

Job Order Contacting (JOC) and Integrated Project Delivery (IPD) are the only project delivery methods that have proven to consistently delivery superior outcomes for all participants.

That said, not all JOC Programs are the same. Some favor the owner, while others charge a percentage of total construction value. Neither of these two types of JOC approaches delivers the full benefit of JOC to the owner or involved builders, designers, or engineers.

Collaborative, Open, and Best Value Job Order Contracting

JOC Programs like the 4BT OpenJOC Solution, maintain fundamental collaborative principles that assure early and ongoing collaboration between of all participants, as well as mutually beneficial outcomes.

Below are examples of best practices to be considered when structuring and executing a JOB ORDER CONTRACTING PROGRAM.

  1. Senior leadership commitment, and support
  2. Mandatory initial and ongoing education/training
  3. Full information sharing and transparency
  4. Integrated internal and external planning, procurement, and project delivery teams
  5. Common data environment inclusive of locally researched detailed line item construction cost data
  6. Key performance indicators (KPIs)
  7. Performance-based reward systems
  8. Shared risk/reward
  9. Long-term multi-party agreement incorporating an Operations Manual or Execution Guide
  10. Enabling technology that simplifies the JOC Process, making it more transparent, efficient, and widespread.

If you are tired of late, over budget, train wrecks, then stop supporting traditional processes that force everyone to be selfish and work against each other. Build effective teams that focus on results and problem solving. Support these teams with tools and services and promote continuous improvement.

Conclusion

Your JOC Program shouldn’t be complex or expensive. Collaborative, open, and best value job order contracting delivers provide superior benefits with lower administrative and cost burden.

I’d like to talk,.

job order contracting

www.4bt.us

Masterformat Construction Cost Data, MasterFormat Construction Cost Estimating

MasterFormat Construction Cost Estimating

MasterFormat Construction Cost Estimating involves using the CSI Masterformat data architecture for discrete construction line items/tasks.  When combined with locally researched cost data, Masterformat provides the most efficient method for developing reliable, verifiable repair, renovation, and new build costs.   A cost common data environment (CDE), using Masterformat and locally researched line-item construction cost data, inclusive of labor, material, equipment, and productivity information, is a requirement for efficient, best value, construction planning, procurement, and project delivery,

CSI Masterformat is a data architecture that can be readily expanded to cover virtually any repair, renovation, maintenance, or new construction task, including variants to account for quantities, means and methods, etc.  Cost databases, such as those provided by Four BT, LLC, have up to twenty characters. 

MasterFormat Construction Cost Estimating is critical to enabling cost visibility, transparency, and best value outcomes.

Locally researched cost data provided at this level of granularity provides superior cost visibility for specified projects when compared to Uniformat and/or assembly level categorizations of construction requirements, or parametric modeling.  Uniformat level and/or assembly level, or building level cost data is useful for budgeting purposes only, and should not be used for bidding, procurement, and execution actual projects with builders, construction managers, etc.

MasterFormat Construction Cost Estimating

It is critical that cost data is locally researched, current, and is composed of elements suitable for the specific purpose. National average cost data, with or with the uses of factors for localization, does not accurately reflect site specific variables for labor, material, and equipment. Such databases should be used exclusively for basic reference only.  Similarly using historical cost data to predict current or future costs is untenable and should not be employed.

masterformat construction cost estimating

Locally researched cost data, however, can be used to determine actual project requirements, bid, and procure projects, and to verify contractors and contractor quotes. The information can also be used to create projects to quantify and address deferred maintenance levels.

Additional Considerations

Using the term “accurate” or “accurate costs” in conjunction with construction cost estimating is a fool’s errand. The definition of the word estimate per the Oxford Dictionary is as follows….

“estimate” noun / an approximate calculation or judgment of the value, number, quantity, or extent of something. “

By definition, a construction cost estimate is an approximation. Then there is the definition of “accurate” to consider.

“accurate” adjective / (of information, measurements, statistics, etc.) correct in all details; exact.

Accuracy must be measured against a specific standard. For construction, the actual cost of a construction project is typically used. This, however, is clearly inappropriate as there are multiple variables impacting the final construction cost. Accuracy can only truly be applied against specific components, such as labor rates for the various trades, or material rates, both at a particular point in time.

“Verifiable”, “granular”, and “current” are terms better suited for describing construction cost data and associated cost estimates.

Does this mean that construction cost data and/or databases are a commodity and/or have limited value? Absolutely not! Just the opposite, they must be selected and used for an appropriate purpose. Further, it can easily be argued that if sourced and maintained properly, they should be required for ALL repair, renovation, maintenance, and new builds.

For example, a locally researched detailed unit price cost database can be used to plan and communicate the needs of projects to all participants and stakeholders more efficiently. The following questions, however, must be considered and correspondingly appropriate decisions made…

  1. What labor rates are being used? (Davis-Bacon, prevailing wage, open shop)
  2. Are labor rates researched locally, or factored to achieve some level of approximation?
  3. How do productivity and crew composition affect costs for specific tasks? Is productivity considered at all?
  4. Similarly, how are material and equipment costs researched?
  5. How frequently ia information updates and what is the process?

Learn more…

 

Key Steps in Creating a Construction Cost Estimate

  1. Define the purpose
  2. Define the scope of work – physical and functional requirements
  3. Establish ground rules and assumptions – data sources, work breakdown structure (WBS) methodologies, sensitivity and risk analysis, validation
  4. Documenting and communicating results

More information about CSI Masterformat

MasterFormat®

MasterFormat® is the specifications standard for the built environment. 
  • Lists of numbers and titles that organize and clearly communicate construction needs to project participants and stakeholders
  • Granular, individual construction tasks that provide critical cost and technical information  
  • A reliable method for developing and organizing construction contract documents throughout the project life cycle 
  • Design, engineering, and construction professionals rely on CSI standards like MasterFormat to produce buildings that are safe, up-to-code and long-lasting
  • Savvy owners rely upon locally researched construction cost data, organized using Masterformat, to validate contractor and subcontractor bids.
  • MasterFormat has changed the construction industry and influenced countless associated classifications, including the ASTM standard for sustainability assessment of building products, MasterSpec, SpecText, National Master Specifications (NMS), Building Systems Design (SpecLink), and SpecsIntact systems.
MasterFormat
MasterFormat Data Architecture

 

DIVISION 00 – PROCUREMENT AND CONTRACTING REQUIREMENTS
DIVISION 01 – GENERAL REQUIREMENTS
DIVISION 02 – EXISTING CONDITIONS
DIVISION 03 – CONCRETE
DIVISION 04 – MASONRY
DIVISION 05 – METALS
DIVISION 06 – WOOD, PLASTICS, COMPOSITES
DIVISION 07 – THERMAL AND MOISTURE PROTECTION
DIVISION 08 – OPENINGS
DIVISION 09 – FINISHES
DIVISION 10 – SPECIALTIES
DIVISION 11 – EQUIPMENT
DIVISION 12 – FURNISHINGS
DIVISION 13 – SPECIAL CONSTRUCTION
DIVISION 14 – CONVEYING EQUIPMENT
DIVISION 21 – FIRE SUPPRESSION
DIVISION 22 – PLUMBING
DIVISION 23 – HEATING, VENTILATING, AND AIR CONDITIONING (HVAC)
DIVISION 25 – INTEGRATED AUTOMATION
DIVISION 26 – ELECTRICAL
DIVISION 27 – COMMUNICATIONS
DIVISION 28 – ELECTRONIC SAFETY AND SECURITY
DIVISION 31 – EARTHWORK
DIVISION 32 – EXTERIOR IMPROVEMENTS
DIVISION 33 – UTILITIES
DIVISION 34 – TRANSPORTATION
DIVISION 35 – WATERWAY AND MARINE CONSTRUCTION
DIVISION 40 – PROCESS INTEGRATION
DIVISION 41 – MATERIAL PROCESSING AND HANDLING EQUIPMENT
DIVISION 42 – PROCESS HEATING, COOLING, AND DRYING EQUIPMENT
DIVISION 43 – PROCESS GAS AND LIQUID HANDLING, PURIFICATION AND STORAGE EQUIPMENT
DIVISION 44 – POLLUTION AND WASTE CONTROL EQUIPMENT
DIVISION 45 – INDUSTRY-SPECIFIC MANUFACTURING EQUIPMENT
DIVISION 46 – WATER AND WASTEWATER EQUIPMENT
DIVISION 48 – ELECTRICAL POWER GENERATION

Abbreviations
BCY BANK CUBIC YARD
BF BOARD FEET
C HUNDRED
CFL HUNDRED SQUARE FEET PER FLOOR
CCF HUNDRED CUBIC FEET
CF CUBIC FEET
CLF HUNDRED LINEAR FEET
CRT CATHODE RAY TUBE
CSF HUNDRED SQUARE FEET
CWT 100 POUNDS
CY CUBIC YARD
EA EACH
ECY EMBANKMENT CUBIC YARDS
FLR FLOOR
FXTR FIXTURE
GAL GALLON
HDR HEADER
HOR HORIZONTAL
HR HOUR
KIP 1000 POUNDS
KW KILOWATT
LB POUND
LCY LOOSE CUBIC YARD
LF LINEAR FEET
M THOUSAND
MBF THOUSAND BOARD FEET
MCFM THOUSAND CUBIC FEET PER MINUTE
MLF THOUSAND LINEAR FEET
MO MONTH
MSF THOUSAND SQUARE FEET
OPNG OPENING
OTLT OUTLETS
PNT POINT
PR PAIR
PRJC PROJECT
PRSN PERSON
QT QUART
RISR RISER
RSR RISER
SCTN SECTION
SF SQUARE FOOT
SFCA SQUARE FOOT CONTACT AREA
SGNL SIGNAL
SHLF SHELF
SPKR SPEAKER
SQ HUNDRED SQUARE FEET
STDN STUDENT
STG STAGING
STLL STALL
STTN STATION
SURF SURFACE
SY SQUARE YARD
SYST SYSTEM
TN/D TON/DAY
TONC TON AC
TOTL TOTAL
TRD TREAD
TRSS TRUSS
VLF VERTICAL LINEAR FOOT



























































































 

via Four BT, LLC – www.4bt.us – 4BT is the AEC industry’s innovative integrated project delivery, construction cost data, and SAAS technology provider. We help guide organizations to achieve accelerated improvement of their facilities repair, renovation, and construction outcomes through the development of a culture and client-specific program centered upon delivering customer value, and driven by proven LEAN processes, actionable data, enabling cloud technology, and ongoing training.

Biden's Infrastructure Plan

Biden’s Infrastructure Plan

Biden’s Infrastructure Plan (Source: https://www.nytimes.com/interactive/2021/03/31/upshot/whats-in-bidens-infrastructure-plan.html?campaign_id=9&emc=edit_nn_20210401&instance_id=28723&nl=the-morning&regi_id=115060493&segment_id=54658&te=1&user_id=855c843c332a90cacba8c5933a647bf7)

Integrating Construction Planning

TIRED OF THE SAME OLD PROJECT BS? ATTN: Facilities Owners, Builders AEs, and Designers

If your are a facilities Owner, Builder, AE, or Architect and are TIRED OF THE SAME OLD PROJECT BS, keep reading….

THE TECHNOLOGY MYTH – Technology will solve my construction issues. No! Technology alone won’t solve your stream of late, over-budget, and poorly completed repair, renovation, maintenance, or new build projects. BIM won’t do it, CMMS won’t do it, IWMS won’t do it, ERP won’t do it.

Culture, People, Process, and Information
FACT – Only Owners can improve the situation – To effect significant positive change requires moving away from things that have caused low productivity, waste, and dismal relationships with vendors and created dissatisfaction among building users.

While you’ve like heard about LEAN, IPD, JOC, etc. it’s time to learn about it… really learn about it. “Last Planner”, “Six Sigma”, “Kaizen”, et al are NOT LEAN construction delivery solutions, but rather LEAN concepts or philosophies. Nor do the directly target the core issues associate with construction delivery. IPD and JOC are both lean construction delivery methodologies, but again, they are not full solutions.

Solution

Beginning with the commitment of senior management, the next step is to develop a plan and your desired goals for integrating your Planning, Procurement, and Project Delivery activities. It will come as no surprise that integrating theses elements and all participants on an early and ongoing basis, within a transparent, common information sharing environment, has alone proven capable of consistent delivery of 80%-90% of ALL repair, renovation, maintenance, and new builds on-time, on-budget, and to everyone’s satisfaction. When compared to the industry average of 10%-20%, I’d say that is “significant improvement”… wouldn’t you?

A construction delivery method and associated contract, with appropriate tools and support services which integrate planning, procurement, and project delivery, is the ONLY proven method to consistently achieve BEST VALUE outcomes for ALL participants and stakeholders.

I’d like to learn the details!
  • A all stakeholders to determine the schedule, cost, schedule and outcome.
  • AN open, transparent, and integrated environment enables teams to leverage expertise, recognize, prioritize and solve problems.
Integrating Construction Planning, Procurement, and Project Delivery is the only proven path to consistently achieving best value outcomes.
Integrating Construction Planning, Procurement, and Project Delivery is the only proven path to consistently achieving best value outcomes.
Why LEAN Construction Matters

Tired of Late, Over-Budget, and Just Plain LOUSY Facilities Repair & Renovation Outcomes?

If you are Tired of Late, Over-Budget, and Just Plain LOUSY Facilities Repair & Renovation Outcomes, then do these 3 steps!

1. Reshape your teams and raise transparency. Too often, organization fail to build solid internal and external teams in concert with their mission goals. The root cause causes behind poor outcomes, even more so than technical factor, is lack of competent teams working collaboratively toward mutually beneficial goals. Ensure robust nontechnical risk management by developing long-term relationships with well defined roles, responsibilities, workflows, information requirements, and deliverables.

As real property owners, it’s your roles to encourage innovation and new approaches by prescribing means and methods of planning, procurement, and project delivery and requiring compliance.

2. Rewire the contractual framework. The interests of ALL participants and stakeholders must be aligned and resources marshalled towards well-defined outcomes. Individual projects WILL NOT consistently achieve bst value outcomes unless they are conducted within an overall programmatic environment! Disengage your organization from traditional and hostile, contracting environments, and move to robust collaborative and integrated planning, procurement, and project delivery environments.

All the tools and support services are readily available to enable best value, highly efficient outcomes. The move toward best practice, alternative contracting models such as integrated project delivery (IPD) and LEAN Job Order Contracting enables continuous outcome improvement for all parties.

Adopting a program mentality versus a traditional and narrow project focus, requires addressing culture, principles, and systems that change and improve behaviors, attitudes, and skills.

Real proper owners and the AECOO sector in general would be better served by moving away from purely transactional contracting to purely relational contracting.

3. Rethink procurement, planning and project delivery processes. There is a major opportunity to improve productivity by truly integrated planning, procurement, and project delivery teams. Most owners says they are doing this, but in reality this rarely occurs. For example procurement typically knows very little about fundamental facilities management practices and the same if true visa versa. Additionally, few, if any owners, required the use of a standardized, locally researched unit price book for cost estimating and improving scope of work definition. Achieving this level of common information sharing alone would greatly reduce miscommunications, error and omissions, and change orders!

I’d Like to Learn More.

IPD isn't new

IPD isn’t new… and BIM isn’t a solution.

#1 IPD isn’t new, it has around for decades. It is the lack of real property owner leadership and competency that has limited its use. As a result, facilities repair, renovation, maintenance, and new construction remains inefficient.

#2 LEAN Job Order Contracting is IPD for repair, renovation, and maintenance, and and minor new construction. It consistently delivers quality projection on-time and on-budget when implemented and managed properly.

#3 Lastly, BIM is simply a technology tool. It is integrated LEAN construction planning, procurement, and project delivery that drives significant improvement in outcomes.

Learn more @ https://www.4bt.us/simple-guide-to-lean-construction/

IPD isn't new
via www.4bt.us – Trusted information source for best value repair, renovation, maintenance, and new build solutions..
Best Value Facilities Repair, facilities work order delivery

Best Value Facilities Repair, Renovation Work Order Delivery

News Flash – Best value facilities repair, renovation work order delivery is now available to any real property owner.

An integrated planning, procurement, and project delivery solution that drives consistent on-time, on-budget, quality outcomes at a fair price.
  • Create a shared scope of work using a a detailed line item construction cost estimate using locally researched cost data.
  • Collaborative design for constructibility.
  • Continuously improve the process by sharing information on an early and ongoing basis. Define and discuss issues as a group, beginning with a joint site walk, and continuing through project completion.
  • Focus is placed upon people, and processes that support transparent information sharing from planning through project execution and beyond.
  • Building long-term relationships among multidisciplinary teams within the owner organization and with all service providers.
A common data environment supports collaboration

An industry standard set of terms and definitions, written in plain English, supported by a database of locally researched detailed line item cost information assures accurate technical and cost work scope definition.

All parties can visualize project and work order requirements at a granular level and drive efficient life-cycle management.

Needs and deliverables are fully visualized and issues address earlier in the process. Lean processes support real-time problem solving in concert with a common understanding of values and goals for all participants and stakeholders.

Benefits
Best value facilities repair, renovation, maintenance, and new build benefits.

Best value management of the total cost of ownership for facilities and other physical infrastructure is best accomplished with implementation of robust programmatic methods.

Within this approach, all projects and work orders are undertaken within a structured process which fully defines roles, responsibilities, tools, and required outcomes. The environment retains sufficient flexibility to enable local/on-site decision-making within global parameters.

A programmatic approach centered upon LEAN fundamentals assure common understanding among diverse internal and external teams. Implementation and continuous improvement is facilitated by initial and ongoing training targeting the varied associated groups, functions.

Relevant criteria is tracked and monitored via enabling real-time collaborative technology and key performance indicators.

Available Tools and Support Services

All the tools and support services required to focus teams upon delivering value are readily available. While the fundamental processes have existed for decades and have a proven track record, the adoption and use of new tools and services is early stage.

Furthermore, the silo-based mentality which is a hallmark of the architecture, engineering, construction, owner, operations, and facilities management domains has proven a formidable barrier to positive change.

Formal education and professional training has also faltered by retaining a focus upon technology and/or discrete knowledge domains, instead of addressing the fundamental holistic aspect of asset life-cycle total cost of ownership management and programmatic versus project principles and processes.

Reliable Construction Cost Estimating

RELIABLE Construction Cost Estimating

Reliable construction cost estimating is important to real property owners, facilities management professions, architects, and engineers.

If a job is estimated correctly all parties should have a detailed understanding of the scope of work, costs, time, labor, and materials required.

If the job is poorly estimated the lack of technical and cost visibility for all participants spells disaster…. as noted by the fact that 80% – 90% of repair, renovation, and new builds are over budget, late, or not completed satisfactorily.

Reliable construction cost estimating…

  1. Improves Decision Making: Reliable construction costs be compared to organizational process impacts.
  2. Streamlines Communications: Using detailed line time cost data that is locally researched and presents in common industry terms assures all participants have a shared view of requirements. 
  3. Ensures Quality and Accuracy: Program, project, and work order planning is enhanced as task level time, material, and equipment requirements are known at any planning, procurement, or execution phase.
  4. Enhances Data Accessibility: Shared, common processes, supported by enabling technology assure the current version of information is quickly and easily referenced. 
  5. Simplifies Collaboration:  Early and ongoing sharing of information in a common format, using reliable, proven processes, builds trust.

Whether planning, procuring, or delivering a repair, renovation, maintenance, new construction project, the following questions are important considerations.

  • Organizational Resources
  • Appropriate Project Delivery Method & Team
  • Common data environment (CDE) – Locally researched cost data organized by CSI Masterformat
  • Risk Assessment

Four BT, LLC, for trusted advice and services of the highest caliber. www.4bt.us

Why LEAN Construction Matters

Run your JOC Program at 10x Savings…..and get better outcomes.

  • Don’t Pay a % of Construction Volume
  • Collaborate, Really Collaborate
  • Tightly Couple Learning with Actions
  • Manage Projects as a Program
  • Increase Relatedness of All Parties

We are ready…. are you?

Continuously Execute Optimal Facilities Strategies for Repair, Renovation, Maintenance, and New Builds, Develop and Continuously Execute Optimal Facilities Repair, Renovation, Maintenance, and New Build Strategies

Continuously Execute Optimal Facilities Strategies for Repair, Renovation, Maintenance, and New Builds

As a facilities management professional… how do I Develop and Continuously Execute Optimal Facilities Repair, Renovation, Maintenance, and New Build Strategies?

Continuously Execute Optimal Facilities Strategies for Repair, Renovation, Maintenance, and New Builds

3 Key Steps

  1. Adopt a proven approach and integrate planning, procurement, and project delivery methodology that assures mutual benefit for real property owners, building users, architects, engineers, and builders. 
  2. Develop and consistently execute operations and maintenance strategies based upon robust LEAN processes.
  3. Make better decisions by leveraging current, actionable information, including locally researched detailed unit price construction cost data.

I’d like a free eBook to learn more.

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    via www.4bt.us

    Why LEAN Construction Matters

    Construction Project Management IS BETTER WHEN IT’S VISUAL

    Construction project management is better when it’s visual and includes a common data environment…. including shared, locally researched unit price cost data.

    Unit Price Estimating

    Construction Unit Price Estimating Just Got BETTER, FASTER, & CHEAPER!

    Unit Pricing Estimating within the CSI MasterFormat™ is the most reliable and efficient means of ascertaining construction costs based on
    materials, labor, and equipment content, and it just got better.

    Locally researched unit price cost data is now available from Four BT, LLC. This means there his no need for area cost factors (ACFs) or other construction cost indexes (CCIs).

    unit price estimating
    Unit Price Estimating

    Having a detailed scope of work and the entire project divided into small discrete unit price work items delivers full cost visibility and transparency while also mitigating errors and omissions.

    Each unit price is is multiplied by the required quantity to find the cost for each work item. All costs are summed to obtain the total estimated construction cost.

    The availability of verifiable locally researched unit price cost data is a powerful tool for owners, architects, engineers, and builders. Significantly improved cost estimates can be developed and also finalized faster.

    JOC Clients Save Money

    4BT OpenJOC(TM) Job Order Contracting Solution Saves Money!

    The 4BT OpenJOCTM Job Order Contracting Solution saves money by significantly improving facilities project planning, procurement, and project execution service delivery.

    • Reduced Procurement Time
    • Reduced Demand for Project Management
    • Improved Scope of Work Definition and Communication
    • Cost visibility and transparency via locally researched detailed line item unit price book
    • Shorter overall Project Delivery Time
    • No fee charged as percentage of JOC construction value
    4BT OpenJOCTM Job Order Contracting Solution Saves Money
    4BT OpenJOC(TM) Job Order Contracting Solution Saves Money

    www.4bt.us

    Successful Construction Project Delivery Requirements

    Construction is NOT complex…. People are. Successful Construction Project Delivery Requirements

    Successful Construction Project Delivery, whether repair, renovation, maintenance, or new builds, can only be consistently achieved with a primary focus upon People….then Process, Information, and enabling Technology.

    Understanding core requirements is critical for real property owners and facilities management professionals.

    Successful Construction Project Delivery Requirements

    A robust processes assures answers to the following questions are known.

    • Who plans and prioritizes project considerations? Who can offer change ideas (informally and formally)?
    • Who assesses the impact of the proposed changes?
    • Who reviews the proposed change and its impact for initial approval ?
    • How is the change implemented? 
    • What information is used in the process? What documentation, forms are required?

    The above represents the initial “concept” or “planning” stage, however, the steps must be repeated throughout the planning, procurement, and project delivery phases.

    In addition, collaborative teams, robust processes, and current actionable information are critical.

    Successful Construction Project Delivery Requirements
    Successful Construction Project Delivery Requirements

    Additional Information

     Principles, Culture, and Robust Workflows should be the primary focus of any facilities management professional.  Only improved early and ongoing collaboration and communication across all participants and stakeholders has proven to reduce errors and omissions, minimize the number of change orders, shorten overall project delivery times, improve quality, and reduce total project costs. The above is possible with the application of proven LEAN processes that can be easily tailored to the individual needs of an organization, and improved over time.

    IMPROVE Construction Cost Control Improve cost control by using common core information, including a locally researched detail unit price database.   Early and ongoing communication of scope of work requirements using detailed tasks within a collaborative environment optimized planning, procurement, and project delivery.   Having common, centralized access to detail repair, renovation, maintenance, and new build task significantly increases cost visibility transparency and overall construction project cost control.   Unit price detailed line time cost data, using locally researched information, provides the highest level of estimate reliability.      I’d like to learn more….. ACCURATELY Forecast Risk Centralizing Program Management, Contract Management, Proposal/Bid Management, Project Management, Work Order Management, Document Management, Team Management… provides an accurate view of overall performance, financial health and real-time insight into cost-related risks. RESOURCES eBOOK – An Introduction to LEAN Construction – Your ultimate guide to facilities repair, renovation, and new build cost management. Asset Total Cost of Ownership-Efficient Life-cycle Management Model Classification Criticality – Architecture, Engineering, Construction, & Life-cycle Facility Management – A Draft White Paper     Connect People, Process, Information, and Technology to reduce risk, maximize efficiency, and increase alignment of your facilities with your needs.   www.4bt,us Facilities Repair
    Real Property Owners and Facilities Management Professionals FOCUS on PROCESS

    Real Property Owners and Facilities Management Professionals FOCUS on PROCESS first… then Technology

    Real Property Owners and Facilities Management Professionals would better serve their organizations by focusing upon process improvement and alignment. The role off technology is solely to enable process. Far too many in the AECOO world view technology as a solution (AECOO – Architecture, Engineering, Construction, Operator, Owner).

    Real Property Owners and Facilities Management Professionals FOCUS on PROCESS

    www.4bt.us


    All aspects and stages of a repair, renovation, maintenance, new build activities, should be integrated…..planning, design, estimating, procurement, and project delivery.

    Robust, mutually beneficial, collaborative processes are capable of consistent delivering quality projects on-time an on-budget. (request white paper)

    Construction Cost Estimate Validation

    Construction Cost Estimate Validation

    Construction cost estimate validation is a process to determine the relative level of reliability. Note that the work “accuracy” is purposely not being used. Any use of the work accuracy with the word construction estimate is simply foolish. If, you would like to learn more on this particular topic…visit here.

    Construction cost estimate validation is basically an objective risk analysis and assessment of information reliability.

    In order for a construction cost estimate to be reliable, it must reflect the local labor, materials, and equipment cost at a granular level and a detailed scope of work (SOW). Granular in this case means detailed line item construction tasks that capture work requirements in terms of crews, productivity, and required materials and labor.

    Locally researched detailed unit price books are very useful in validating estimates provided by contractors and subcontractors/trades, ass well as preparing independent owner estimates, They significantly reduce time, while also reducing the number of errors and ommissions.

    National average cost books and/or the use of area cost factors, or construction cost indexs (CCIs) of any type do not provide sufficient reliability to aid in construction cost estimate validation.

    Real property owners would greatly benefit from assessing construction estimate results using appropriate metrics. The practice of comparing construction cost estimates to final construction costs as a metric, for example, is just plain silly.

    Construction Cost Estimate Validation

    Construction Cost Estimate Validation is critical to achieving best value outcomes for owners, architects, engineers, and builders.

    via Four BT, LLC

    JOB ORDER CONTRACT Legal Issue

    JOB ORDER CONTRACT Legal Issue – LOS ANGELES UNIFIED SCHOOL DISTRICT, v. TORRES CONSTRUCTION CORP. et al.,

    LAUSD JOC Program

    LOS ANGELES UNIFIED SCHOOL DISTRICT (LAUSD filed a complaint against
    an awarded JOC contractor for breach of contract concerning cafeteria renovations. LAUSD prevailed on its claims for breach of contract and was awarded $3,941,829 in damages. Download Case Filing

    A well designed and well managed Job Order Contracting Program (JOC Program) should accelerate planning, procurement, and project delivery off repair, renovation, maintenance, and minor construction projects, as well as associated cost savings, quality improvements, and elimination of legal disputes.

    While LAUSD prevailed in this dispute, it is arguable that the associated issues could have been detected at the proposal negotiation stages and other phases… prior to the JOC Program Audit that subsequently identified the issues.

    via Four BT, LLC

    www.4bt.us

    2021 Construction Cost Data

    2021 Construction Cost Data

    2021 Construction cost data that is verifiable, locally researched, and fully transparent, for when actionable information is important.

    ACTIONABLE CONSTRUCTION COST DATAA

    Four BT, LLC, OpenCostTM locally researched detailed unit price cost data. www.4bt.us

    Why LEAN Construction Matters

    JOC is NOT a PROJECT

    JOC is not a project, it is a program. Job order contracting is a program-based LEAN, integrated planning, procurement, and project delivery method.

    Focus of all participants and stakeholders is upon well defined and well communicated mutually beneficial outcomes. Roles, responsibilities, and all other aspects associated with final outcomes are fully defined. Financial and technical detailed are also shared within a common data environment (CDE), which included a locally researched unit price book.

    A JOC Program can handle a wide range of facilities and/or infrastructure repair, renovation, maintenance, sustainability, or new build requirements.

    JOC must, however, be employed within a collaborative environment, with appropriate owner leadership, and in concert with fundamental LEAN principles. JOC should NEVER be used solely as a means to speed procurement and/or bypass requisite procurement oversight. JOC should also be employed only with full collaboration and joint support and decision-making the owner procurement and technical (facilities management, DPW, CE, etc.) teams. JOC Programs should also be audited by independent third parties, and compliant with all applicable laws/regulation.


    Locally researched line item cost data

    Locally researched line item cost data is the foundation to best value construction outcomes

    Locally researched line item cost data is the foundation to best value construction outcomes. It exclusively assures financial visibility and transparency and a well defined and well communicated scope of work (SOW).

    Locally researched line item cost data
    The foundation to best value construction outcomes

    The CDE (Common Data Environment) provided by locally researched detailed cost data is organized using CSI Masterformat to provide ease of use and information reuse.

    When linked with integrated planning, procurement, and project delivery such as the OpenJOC FrameworkTM (OpenJOCTM) or integrated project delivery (IPD), participating teams can consistently deliver over 90% of repair, renovation, maintenance, and new build task on-time, on-budget, and to everyone’s satisfaction.

    All the requisite tools and support services are readily available to begin today.

    via Four BT, LLC – 4bt.us

    Sebbene il CDE sia al centro delle attenzioni continua a leggere…

    Better Manage Construction Costs, Better Manage Construction Costs, Schedules, and Quality, Manage Construction Costs

    Better Manage Construction Costs Schedules and Quality

    Over eighty percent (80%) of construction projects are over-budget, late, or not competed correctly. Sixty (60%) percent of all project fail to meet both cost and and schedule targets. Fortunately there are proven processes to better manage construction costs, schedules, and quality.

    Reasons for Poor Repair, Renovation, Maintenance, and New Build Outcomes

    The fundamental reason for poor outcomes is the failure to implement and properly manage robust and integrated LEAN planning, procurement, and project delivery processes.

    • 80% of cost overruns are due to poor scope of work definition, and associated inadequate and/or flawed construction cost estimates and otherwise poor planning, procurement, and project delivery management. The errors and poor processes result in change orders, project delays, and legal disputes.
    • 10% are due to equipment and/or materials delays, most off which could have been foreseen.
    • 10% are due to site related productivity issues, most of which could have been foreseen.

    All off the require tools and support services to create integrated environments, to address all of the above issues, and more, are readily available.

    Solution

    Real property owners can establish collaborative, multi-discipline teams, working toward mutually beneficial outcomes whereby 90%+ of all projects are on-time, on-budget, and completed to the satisfaction of all participants and stakeholders.

    The implementation of a long term programmatic approach versus continued use of traditional short-sighted project methods is critical. Integrated LEAN planning, procurement, and project delivery methods assure that each individual project is aligned with overall program and organizational goals as well as understood by and committed to by all service organizations (architects, engineers, builders…).

    Better Manage Construction Costs
    Better Manage Construction Costs

    Sufficient time & resources are allocated to defining the scope of the project with the involvement of all participants and stakeholders. Everyone works jointly within a shared, common data and operational environment to identify and meet individual project and work order goals and objectives, required functions, phases, and schedules, within fully identified constraints.

    A detailed scope of work is associated with a detailed line item cost estimate and builder’s proposal based upon a locally researched unit price book. It is defined within and Lean environment government by a long-term multi-party agreement and associated written Operations Manual / Execution Guide.

    Fundamental Principals and Components of a Lean Integrated Planning, Procurement and Project Delivery Environment

    1. Owner leadership and commitment
    2. Required collaboration
    3. Best value procurement with collaboration between owner procurement and technical/facilities management teams
    4. Initial and ongoing training for all participants
    5. Long-term multi-party agreement and associated operations manual / execution guide
    6. Early and ongoing communication
    7. Common data environment – defined terms and definitions, locally researched detailed unit price book
    8. Enabling technology (program management, contract management, proposal/estimate management, work order management, document management, team management, issue/task management, building/location management, MBE/WBE management, BIM information integration…)
    9. Detailed scope of work and associated detailed line item construction cost estimate using CSI Masterformat
    10. Mandatory joint site visit
    11. Mandatory kick-off meeting
    12. Mandatory regular owner site inspections
    • Note: The use of national average cost data, area cost factors, construction cost indices, parametric cost modeling, historical cost data is NOT recommended. In order to achieve cost visibility and transparency appropriate local unit costs for labor, labor productivity, materials, and equipment are required. Inaccurate granular costs for material unit costs, labor rates, major equipment costs, construction equipment will lead to gross errors in project costs and lead to unreliable schedules & increase overall risk of cost and schedule over runs. Locally researched detailed unit price books exclusively are capable of accounting for productivity “tight” work areas, or areas above normal working height, or variances in workers compensation and basic hourly working rates, as well as local material and equipment cost which can vary significantly. Field supervision, fringes / burdens, site establishment / temporary facilities, small tools, scaffolding, construction equipment, heavy lift cranes, clean up, field expenses, etc. are all defined. Labor productivity value for each craft /work area needs to be estimated at a detail level as it will significantly vary. Adequate time must be assigned both develop and an performed a detailed review of the final estimate to assure compliance with the overall program methodology and alignment of the estimated cost values with the detailed scope of work (SOW) description.

    VIA www.4bt.us

    Reliable Construction Cost Estimating

    Reliable Construction Cost Estimating

    Reliable construction cost estimating is critical to the success of any repair, renovation, maintenance, or new build project.

    RELIABLE – the quality of being able to be trusted to do what somebody wants or needs

    Oxford Dictionary
    Reliable Construction Cost Estimating

    A construction cost estimate must be trusted and what is needed by a real property owners, architects, engineers, builders, or oversight groups to plan, procure, and execute a repair, renovation, maintenance, or new build projects. In theory, all groups should share the same need; to determine the cost for a planned construction activity.

    While there may be several types of estimates in terms of granularity, this discussion is limited to detailed line item estimates. This is the most reliable form of estimate and a requirement before proceeding to the procurement and execution of a specific repair, renovation, maintenance, or new build activity.

    Components of Cost Information:   A detailed construction cost estimate is comprised of individual line items for granular tasks.

    Each task has a description and should be organized using the CSI MasterFormat data architecture. Each task should also have the following break downs and associated information (cost and descriptions as appropriate) for (1) labor, (2) material, (3) construction equipment. Construction supervision, and general office overhead, as well as any other costs should also be itemized separately. Considerations of crew composition, availability, and productivity, among others, also need to be addressed and fully defined. A locally researched unit price cost database can be of great value in this exercise both speed and validate the effort.

    Each detailed line item in a locally researched detailed unit price book defines a a specific relationship between the output of a task/process and the necessary inputs and resources in terms of a production function. It is expressed by the relationship between the volume of construction and the associated factors labor, material, equipment, and capital. A unit of measure is associated with each line item (for example, square foot, linear foot, each, etc.) to associate the line item to a specific production requirement.

    A unit cost is assigned to each repair, renovation, maintenance, or new construction task, and per designated quantities, as represented by the bill of quantities. The total cost is the summation of the products of the quantities multiplied by the corresponding unit costs. The unit cost method is straightforward and can be extremely labor intensive, unless supported by a locally researched unit price book. Each task has an associated time requirement, thus scheduling is also significantly enhanced. The final listing represents all tasks that must be completed for the associated project or work order.

    Learnings. 

    1. A detailed line item construction cost estimate is the only form of reliable information that should be used to proceed to the procurement and project execution phases of any repair, renovation, maintenance, or new build project.
    2. Area costs factors, location factors, and other construction cost indexes should not be used in association with preparing a reliable construction cost estimate. The numerous aspects involved in creating a single cost factor clearly demonstrate why reliability is problematic: special local conditions, specified size or capacity, adjustment for inflation index, adjust for local regulatory constraints…
    3. Predictive cost indexes or predictive costs, i.e. future forecasts of costs are uncertain. Actual expenses may be much lower or much higher than those forecasted. The high level of uncertainty involved with predictive costing makes their use limited. Reasons for cost uncertainty include technological changes, changes in relative prices, inaccurate forecasts of underlying socioeconomic conditions, analytical errors, and other factors.
    4. While the use of historical information can be of value, it should not be used to prepare a reliable construction cost estimate. Furthermore, historical cost data is only useful if it was captured and organized in a way that is compatible with future applications. If used for a current estimate for example, detailed information must be updated with respect to current costs in addition to present needs. The format of cost data, such as unit costs for various items, should be organized according to the current standard which is CSI MasterFormat. Examples of various historical data source include various catalogs of vendor data products such as… Sweets’ Catalog published by McGraw-Hill Information Systems Company,  ENR, the McGraw-Hill Construction Weekly, Cost Engineering, a journal of the American Society of Cost Engineers, commercial cost reference manuals such as the Building Construction Cost Data published annually by R.S. Means Company, Inc., or Dodge Manual for Building Construction, published by McGraw-Hill and The Dodge Digest of Building Costs and Specifications.
    5. Parametric modeling, building level, or system level costing should not be used to prepare a reliable construction cost estimate.
    6. Detailed construction cost information should be shared, at a granular task level, on an early and ongoing basis with all project participants and stakeholders. This practice will minimize errors and omissions in the scope of work, greatly reduce change orders, and improve overall project outcomes with respect to time, cost, and otherwise assist in meeting project goals.

    via 4bt.us

    Reliable Construction Cost Data

    Reliable Construction Cost Data – Public Sector Financial Stewardship

    To use public funds effectively, the government must employ effective
    management practices and processes, including the measurement of
    data.

    Reliable construction cost data is the foundation of any repair, renovation, maintenance, or new build requirement and associated planning, procurement, and project delivery activity.

    All public sector departments and agencies would greatly benefit, and meet their fiduciary responsibilities by implementing a consistent, robust methodology based on current best management practices.

    The use of locally researched detailed unit price book (UPB) cost data across the federal, state, county, and local government sectors for developing, managing, and evaluating program cost estimates is the current best practice for assuring cost visibility, transparency, and providing appropriate validation.

    Implementing a reliable, high-quality cost estimate and associated best
    practices associated with effective program level management should be a priority.

    The current practices of using parametric cost modeling, sole reliance upon contractor or subcontractor lump sum bids, national average cost database, area cost factors, city cost indexes or other location and/or economic “factors”, and “historical information”, should be abandoned

    Furthermore, construction cost estimating should be a component within an overall LEAN integrated planning, procurement, and project delivery environment. This would assure the early and ongoing used of information by all participants and stakeholders within a shared, common environment. All information would be verifiable, current, and traceable, as well as reflective of current local market condition.

    All the tools and support services are readily available to support implementation of the above. The result would be 30%-40%+ gains in productivity and cost savings.

    All that is needed is leadership.

    Learn more…

    Reliable Construction Cost Data
    Reliable Construction Cost Data – Public Sector Financial Stewardship
    independent government estimate, Preparing Independent Government Estimates

    Preparing Independent Government Estimates – IGEs , IGCEs

    Preparing Independent Government Estimates – IGEs is fundamental to achieving best value outcomes. Unfortunately, the process is largely done inappropriately and without cost transparency or visibility, and rarely is verifiable.

    Most Independent Government Cost Estimates are Not Well Documented

          

    The usefulness of an IGE to a contracting officer and other Government interest depends largely upon its supporting documentation. Most IGEs do not use appropriate data sources and this is particularly true for CONTRUCTION activities (repair, renovation, maintenance, new builds).

    The best source of information for “construction” IGEs is a locally researched detailed unit price book. Unfortunately, most Government agencies use “historical information”, “parametric modeling”, or national average cost data and associated construction cost indexes and/or area cost factors. In fact, the United States Army Corps of Engineers (USACE) has been using the later archaic and ineffective methods for decades, and continues to this day.

    The net result is that without verifiable, current, and local detailed cost data, contracting offices and facilities sustainment and/or management teams are at a significant disadvantage. This has lead to the vast major of construction cost estimates (80% or more) being inaccurate. The associated lack of detail has results in change orders and errors and omissions that cause 90% of a ALL construction projects to be late, over budget, or completed to the dissatisfaction of one or more participants or stakeholders.

    All of the tools and support services are readily available to resolve the above and virtually assure that 90% of all projects are well documented and completed on-time, on-budget, and in a quality manner.

    Learn more…

    The Federal Acquisition Regulation requires independent government estimates of construction costs for contracts exceeding the simplified acquisition threshold.

    FAR 36.203.


    Agencies may use simplified acquisition procedures to purchase goods and services where the aggregate amount does not exceed $150,000.

    FAR 2.101 and 13.000.

    Core Considerations for Preparing Independent Government Estimates
    Owner Leadership

    “An independent Government estimate of construction costs shall be prepared and furnished to the contracting officer at the earliest practicable time for each proposed contract and for each contract modification anticipated to exceed the simplified acquisition threshold. The contracting officer may require an estimate when the cost of required work is not anticipated to exceed the simplified acquisition threshold. The estimate shall be prepared in as much detail as though the Government were competing for award.”

    “Access to information concerning the Government estimate shall be limited to Government personnel whose official duties require knowledge of the estimate. An exception to this rule may be made during contract negotiations to allow the contracting officer to identify a specialized task and disclose the associated cost breakdown figures in the Government estimate, but only to the extent deemed necessary to arrive at a fair and reasonable price. The overall amount of the Government’s estimate shall not be disclosed except as permitted by agency regulations.”

    Preparing an Owner’s Estimate

    Real property owners must develop a detailed written scope of work. Estimating the right project cost is should not be a challenge if appropriate source information and tools are used.

    Any professional estimator should be able to read and interpret the owner’s scope of work in sufficient details to select appropriate material, equipment and labor and associated quantities.

     A joint site visit with critical to the above, with all potential participants and stakeholders. Costs should be based upon local market prices and associated regulatory requirements.

    GAO, Cost Estimating and Assessment Guide Best Practices for Developing and Managing Capital Program Costs, GAO-09-3SP (Washington, D.C.: Mar. 2009) and Standards for Internal Control in the Federal Government, GAO-14-704G (Washington, D.C.: Sept. 2014)

    The IGCE can be part of a broader cost estimating process for programs, which sums individual cost elements to establish future program costs. GAO-09-3SP

    Relational Construction Contracts

    Relational Construction Contracts Significantly Improve Outcomes

    Relational construction contracts specify norms and mutual expectations that govern relationships between real property owners and architects, engineers, and builders.

    Relational contracting supports mutually beneficial outcomes for all participants, and do not favor the unilateral use of power.

    Flexibility in the face of changing circumstances, especially empowering those actually doing the work with decision-making authority, is a hallmark of relational construction processes.

    Integrated project delivery and LEAN job order contracting are robust, proven examples of relationship construction contracts. Tools and services are readily available to support relational construction contracts and associated integrated planning, procurement, and project delivery environments.

    Relational Construction Contracts

    Driving collaboration and mitigating conflicts among project participants and stakeholders, require leadership and commitment of real property owners.
    Integrated Project Delivery (IPD) and Open Job Order Contacting align the interests of the real property owner organization with its physical infrastructure, and teams of architects, engineers, and builders. Each party remains engaged throughout the project and commits the necessary resources to allow integrated teams to achieved mutual beneficial outcomes.

    All projects are actually aligned under an IPD/JOC Program, under which a Program and Project Managers are appointed to assure consistent implementation of all projects and work orders.

    The Program Manager (PM) provides relationship and management-level guidance for planning, design, and project delivery to consistently meet defined objectives. The PM also monitors benchmarks, metrics, and standards to enable continuous improvement through all fundamental LEAN phases. These LEAN phases include VALIDATION, FINAL DESIGN and PROCUREMENT, EXECUTION/CONSTRUCTION, and WARRANTY.


    30%-50% OFF Facilities Repair, Why LEAN Construction Matters

    30%-50% OFF Facilities Repair, Renovation, and Maintenance Costs

    30%-50% OFF Facilities Repair, Renovation, and Maintenance Costs on an ongoing basis is possible for real property owners who elect to support integrated construction planning, procurement, and project delivery. This can be achieved by implementing LEAN principles with readily available tools and services.

    Owners can create an environment in which lead times and overall project delivery time are shorter, productivity is increase, and changed orders are virtually eliminated.

    Reducing project time and cost by 30% to 50% is not a pipe dream, especially that current reports indicate that all projects average project average project overages in the 30 to 45 percent range.

    Relational norms are governance mechanisms in economic exchanges.

    Technology is not the solution. What is required are fundamental changes in Principles, Processes, and Systems. These basic changes would drive consideration of both short-term cost management and long-term, outcomes; improve early and ongoing communication between participants and stakeholders within a common data environment, and create environments that consistently follow established workflows capable of both adapting to changing issues and leveraging local decision-making and expertise of those actually doing the work.

    Within LEAN integrated planning, procurement, and project delivery environments, projects and/or work orders can be procured and begun within weeks versus months or years. Both costs and technical aspects are fully transparent and defined in a granular, line item basis using detailed task descriptions, labor costs and crew definition, productivity, material costs, and associated equipment costs are required, as well as the overall total costs for the task associated with an appropriate unit of measure.

    via 4bt.us

    Collaborative Construction Procurement Planning

    Collaborative Construction Procurement Planning and Project Delivery = Best Value Outcomes

    Collaborative Construction Procurement Planning and Project Delivery is a robust process for consistently achieving long-term best value for all participants and stakeholders.

    Early and ongoing collaboration between contractors, designers and owners…procurement, facilities management, building users…. drives consistent attainment of on-time, on-budget, and satisfactory outcomes for all….But…. it requires a change in CULTURE, and the adoption of LEAN SYSTEMS AND PROCESSES.

    There are existing best management practices, tools, and support services for real property owners with appropriate leadership and competencies to support positive change.

    Following these best practices leads to major gains in productivity and significant improvement in resource utilization. Change orders, errors, and omissions can be virtually eliminated.

    1. Lean Acquisition Planning: Collaborate to assure all parties are involved in determining physical, functional, and financial requirements.
    2. Common Data Environment: Common terms and definitions must be shared by all parties. A locally researched detail Unit Price Book must serve as the foundation for developing and sharing the scope of work, and associated repair, renovation, maintenance, or new construction costs. Parametric cost modeling, area cost factors, location factors, etc., are not suitable for work scope developing or costing.
    3. Enabling Technology: While technology should not be a “driver”, it role is to embed and support robust policies and processes. Thus technology must, at a minimum, support the following: Program Management, Contract Management, Work Flow Management, Proposal/Bid Management, Estimate Management, Work Order Management, Document Management (full version and access control, not simple file storage), Team Management, Building Management, BIM Information Integration
    4. Process and Workflow Definition: All repair, renovation, maintenance, and new build activities should be program-driven, not project-driven. This approach assures that each activity is in concert with organizational needs, requirements, and processes designed to consistent achieve mutually beneficial best value outcomes for all participants. A written Operations Manual or Execution guide is shared and part of the associated multi-party, long-term agreement. LEAN principles establish a collaborative culture.
    5. Comprehensive Training: Initial and ongoing training and outreach are mandatory for all participants. At a minimum training is held on an annual basis and supports multiple levels and formats (introductory, advanced, technical, financial, on-site, regional, virtual)
    6. Team Requirements: Establishing and maintaining diverse and capable internal and external teams is the responsibility of the real property owner. Evaluation of ALL team members should be solely based upon performance.
    7. Best Value Source Selection: Procurement activities should be based upon best value, with the goal of establishing long-term mutually beneficial relationships for all program participants.
    8. Owner Leadership: Owners must provide technical and management leadership. While the short term involvement of consultants can be beneficial during the early learning curve, long term business relationships with consultants should not be established. Tools and services should be procured to support owner requirements. In no manner should consultants be engaged and paid a percentage of construction, repair, renovation, or maintenance costs. The latter sets the stage for conflicts of interests as well as excessive programs administration costs.
    9. Monitor Performance, Leverage Key Performance Indicators (KPIs), and Continuously Improve : Every organization should develop and use KPIs to monitor program performance including the overall program, individual contracts, projects, work orders, and participant, to assure compliance, alignment with organizational strategy, objectvies, and goals, and to drive continuous improvement. c
    10. Culture, Systems, People, Information Process, Results: Transformation from archaic, antagonistic, and failure prone cultures and processes is a choice and a requirement for those in the public sector.
    Owner Leadership – A Fundamental Requirement for Collaborative Construction Procurement Planning
    Collaborative Construction Procurement Planning Drives Best Value Outcomes
    LEAN Asset Management, v

    Lean Asset Management

    Lean Asset Management significantly improves the availability, dependability, usefulness, and safety of facilities and other physical assets, while also lowering life-cycle costs.

    Lean Asset Management differs from traditional approaches in several ways. First and foremost is the application of Principles and Systems within a Culture that drives internal and external participants to focus upon clearly defined, mutually beneficial results. Common sense right? Of course, but rarely practiced by real property owners.

    Integrating People, Process, Information, and Technology is another aspect of LEAN Asset Management. Robust workflows integrate planning, procurement, and project delivery methods. Well defined environments enable decision-making by those actually doing the work.

    JOB ORDER CONTRACTING

    People skills and developing and maintaining an appropriate culture are fundamental elements. Create the right culture. Sharing information must become a desire, rather than an obligation. This requires developing and supporting a transparent and innovative environment, allowing internal and external individuals and teams to feel safe. A knowledge-sharing mindset is encouraged. The value of participants is recognized as crucial to overall outcomes. Everyone continuously learns and improves through the process of knowledge sharing.

    A shared common data environment (CDE) is also required in order to provide current, actionable information. Granular data is a requisite component for  integrated lean planning, procurement, and project delivery,  principles and processes as well as life-cycle total-cost-of-ownership management. Common industry standard terms and definitions and locally researched detailed line item cost data serve to enable financial and technical visibility and transparency.

    Supporting technology lowers process deployment costs, provides team-based collaboration, maintains version control, and provides real-time monitoring and reporting. The following is a partial listing of functionality that can be supported by technology:

    • Building, system, and asset location, condition, and general information
    • Program Management
    • Contract Management
    • Bid/Proposal/Estimate Management
    • Work Order Management
    • Work Flow Management
    • Document Management
    • Issues/Tasks Management
    • Space Management
    • Team Management – Internal (Procurement, Facilities Management), Contractors, Subcontractors, MBE/WBE

    www.4bt.us

    Construction Cost Knowledge Management, Why LEAN Construction Matters

    Construction Cost Knowledge Management

    Construction Cost Knowledge Management

    Construction cost knowledge management is a component of integrated LEAN construction planning, procurement, and project delivery. It is required in order to consistently achieve best value repair, renovation, maintenance, and new build outcomes.

    Despite the fact that construction cost knowledge management is a required component for assuring consistent on-time and on-budget project delivery, fewer than 5 per cent of five percent of owners are qualified to address it.

    The transfer of cost knowledge is essential at a granular, task level. The ability to clearly define detailed line item tasks defining the desired scope of work is critical to mitigating errors and omissions, reducing the number of change orders, as well as achieving defensible cost visibility and transparency. Information must be presented in plain English, using industry standard terms and definitions, and organized in a standard data format (CSI Masterformat). In order to truly reflect actual conditions, it also must be locally researched and customized to owner needs. The use of national average cost databases and/or location factors, or parametric cost models are insufficient.

    Most real property owners have not yet recognized the importance of construction cost knowledge management and thus have not developed the capabilities needed to support it. They have a false sense of security, believing that contractor or subcontractor quotes, or historical information, or square foot level cost models provide defensible cost visibility.

    Platforms, tools, and training are readily available to help owners and dispersed teams of architects, engineers, and builders to build and collaborate within a construction cost knowledge environment. Technology alone, however, is not enough to harvest the value of cost knowledge management. It must be combined with LEAN principles, processes, and workflows in order to fully leverage available resources.

    Whether the AECOO and facilities management sectors evolve from the legacy of dismal performance will depend largely upon improvement of real proper owner leadership. Organizations need to shift their focus from knowledge capture to knowledge creation and transfer, adopt LEAN principles and processes, and truly champion a collaborative, mutually beneficial culture and environments. It is not surprising that exclusive emphasis upon technologies as a solution (BIM, IWMS, CMMS,ERP, etc.) has proven relatively fruitless. Creating cultures that connect and support those actually doing the work via of LEAN, robust collaborative integrated planning, procurement, and project delivery structures and associated shared common data environments (CDEs), is the path forward.

    While technological infrastructure of tools and platforms help manage knowledge, a knowledge-transfer culture must be developed and sustained with individuals on internal and external teams as part of the equation. Most organizations underestimate or simply don’t have the leadership skills and either underestimate or don’t truly appreciate the human factor.

    The driver of knowledge sharing is simple, individuals and supporting teams must have a feeling of contributing to overall success.

    A deeper understanding of the context and value of knowledge needs to be spread across all skills, enabling individuals and teams to embed knowledge into all aspects of their working life. It is all important that individuals and teams are able to differentiate valuable knowledge from general information.

    Owners must provide leadership….

    1. Create the right culture. Sharing information must become a desire, rather than an obligation, and the norm. This requires developing and supporting a transparent and innovative environment, enabling internal and external individuals and team to feel safe and develop a knowledge-sharing mindset in which they recognize the value in their own expertise, and its benefit to overall outcomes, and are able to learn continuously through the process of knowledge sharing.
    2. Embrace available tools and methods.  Traditional construction planning, procurement, and project delivery methods have failed. Robust approaches such as integrated project delivery, IPD, and LEAN job order contracting, focus upon creating additional value. Sharing, transferring and adding knowledge is not only central to these methods, but required of all participants and stakeholders.

    via www.4bt.us

    2021 Facilities Repair Renovation and New Construction Cost Management
    JOC Contractor

    JOC Contractor

    What defines a great JOC Contractor?
    ▪ Experienced professional
    ▪ Ability to manage multiple projects at multiple locations simultaneously
    ▪ Consistent delivery of high quality on-time and on-budget
    ▪ Capable of managing a number of subcontractors
    ▪ Responsive with a “can do” attitude
    ▪ Support of for MBE/WBE initiatives
    ▪ Sponsors development of subcontractors through mentorship and training
    ▪ Routine open communications with the owner’s team
    ▪ Non-adversarial approach to project scoping and negotiations
    ▪ Cooperative…. seeking to find the best solution for everyone
    ▪ Team approach to building a successful JOC program
    ▪ Clear documentation of project scope of work / requirements
    ▪ Cost proposals using locally researched unit price cost data and collaborative technology
    ▪ Legitimate proposals based on approved scope related items only and correct correct adjustment factors / approved coefficients

    • JOB ORDER CONTRACTING

    via www.4bt.us

    4BT JOC Solution

    4BT JOC Solution – Best Value JOB ORDER CONTRACTING

    If your organization would like to better reflect and respect the concerns and values of your stakeholders and not just push paper around, read on. Agility, adaptability, and customer centricity are fully supported by the 4BT JOC Solution.

    The 4BT JOC Solution was developed to address the many unforeseen risks and unanticipated costs associated with traditional JOC offerings.

    Emphasis on greater efficiency, productivity, cost visibility, and compliance has culminated in a suite of tools and service that fully support collaborative, outcome-focused environments.

    Past independent JOC Program Audits have clearly highlighted what can happen if LEAN principles and best management practices are not applied and implemented with robust tools.

    www.4bt.us

    Construction Critical Success Factors

    Construction Critical Success Factors – Upskilling Owners

    Construction critical success factors span principles, systems, culture, and teams. Whether projects involve repair, renovation, maintenance, or new builds, the integration of planning, procurement, and project delivery is needed across all participants and stakeholders on an early and ongoing basis. Continuous and competent real property owner leadership is a critical success factor.

    Productivity and technology adoption have been poor in the construction sector.

    The role of facilities management (FM) is to cost effectively provide the appropriate physical environment for organizations to support core activities. Their relative level of success impacts society, the economy
    productivity, and sustainability.

    Real property owner senior leadership and FM professionals are ultimately responsible for stewardship of the build environment. Critical success factors are dependent upon the following:

    1. Establishment of COLLABORATIVE, Principles, Processes, and Culture focus upon attainment of mutually beneficial best value outcomes.
    2. Well-structured, common data environment (i.e. locally researched detailed unit price cost data)
    3. Long-term contracts, complete with Operations Manuals and Execution Guide.
    4. Integrated LEAN planning, procurement, and project delivery
    5. Required initial and ongoing training for all participants.
    6. Key performance indicators (KPIs)
    7. Enabling technology (program management, contract management, proposal/bid management, project management, work order management, task/issues management, workflow management, document management, team management, contractor/subcontractor management, building management, BIM information integration…)

    Upskilling real property owners is key.

    www.4bt.us – Standards of behavior and a positive vision for the future.

    Why LEAN Construction Matters

    What is a Successful Construction Project?

    What is a successful project? Whether its a repair, renovation, maintenance, or new build, understanding what constitutes success is a fundamental starting point.

    Below is the start of a checklist for a successful construction project… your adds to the list?

    • End user / customer satisfaction
    • Delivery of the project on time
    • Delivery of project within budget
    • Delivery of the project at a fair price
    • Delivery of the project with zero, or minimal change orders and/or small punch list
    • Safe project record
    • No complaints
    • Minimal or no service disruption.
    • No or minimize environmental impacts
    • Full regulatory compliance
    • Full financial visibility and transparency

    Today, there are integrated construction planning, procurement, and construction delivery methods that assure consistent positive outcomes as well as supporting tools and services. procurement methods are available in the construction industry.

    Selecting the proper construction delivery method is the single most important decision any real property owner or facilities management professional can make.

    Inappropriate selection can increase project risk and negatively impact value cost, quality & timing.

    Project delivery method selection is critical for the successful delivery of repair, renovation, maintenance, and major capital projects.

    Choose wisely.

    Why LEAN Construction Matters

    Relationship-based FM

    Relationship-based FM (facilities management) is a knowledge domain that is critical to improving associated environmental and economic outcomes.

    Culture must be the primary focus of leadership. Without full support in this regard any LEAN repair, renovation, or new construction initiative will fail.

    Relationship-based FM

    While it clearly difficult to grasp the perceived value of something that can’t be “touched”, successful facilities management requires a laser focus upon mutually beneficial outcomes for all participants and stakeholders, and associated Culture, Systems, and Processes that support associated efforts.

    Unrealistic expectations, incompetence, poor/improper relationships generally result from the lack of leadership and robust processes. Clear leadership and robust systems create a culture of is teams and teamwork…. the most powerful mechanism for supporting efficient of building ownership practices.

    Real proper owners and FMers bear the responsibility for professionally managing processes and creating sustainable value via relationship management.

    High perceived relationship quality facilitates interactions in support of best value. Traditional methods are antagonistic in this regard.

    Relationship-based FM

    Robust LEAN implementations build long-term relationships wherein owners, service providers, and building users know and appreciate the value of each other… through processes that support open, construction, and ongoing interactions.

    A fundamental challenge remains. Most senior leadership members view FM as being a mainly technical/engineering and cost-driven discipline that deals with the built environment. Alignment between the built environment and organizational mission therefore remains a continuous challenge.

    Until greater understanding is attained relative to the specific needs and requirements along the intertwined relationship and physical life-cycles across the AEC sector, the dimensions and drivers of perceived value in FM will continue to suffer.

    Four BT, LLC

    References:

    Alexander, K. (2012), “Co-creation of value in FM”, in Alexander, K. and Price, I. (Eds), Managing Organizational Ecologies: Space, Management and Organizations, Routledge, New York, NY

    Coenen, C. (2002), “Prosocial service behaviors and their role in influencing perceived service quality”, in American Marketing Association (AMA) (Ed), Conference Proceedings of 11th Annual AMA Frontiers in Service Conference, Maastricht (NL)

    Coenen, C., von Felten, D. and Schmid, M. (2011), “Managing effectiveness and efficiency through FM blueprinting”, Facilities, Vol. 29

    Coenen, C., von Felten, D. and Waldburger, D. (2012), “Beyond financial performance: capturing relationship value in FM”, in Jensen, P., van der Voordt, T. and Coenen, C. (Eds), The Added Value of Facilities Management: Concepts, Findings and Perspectives, Polyteknisk Forlag, Lyngby

    European Committee for Standardization (CEN) (2006), EN 15221-1: European Standard in Facility Management-Part 1: Terms and Definitions, CEN, Brussels

    Roper, K. (2012), “Educational implications of FM social constructionist view”, in Alexander, K. and Price, I. (Eds), Managing Organizational Ecologies: Space, Management and Organizations, Routledge, New York, NY

    Ware, J. and Carder, P. (2012), “Raising the bar: enhancing the strategic role of facilities management”, RICS Research Report, London, November 2012

    Construction Cost Management Policies and Practices

    Proven Construction Cost Management Policies and Practices

    Proven Construction Cost Management Policies and Practices are readily available to owners and service providers hoping to consistently achieve best value outcomes.

    Construction Cost Management Policies and Practices
    Construction Cost Management Policies and Practices

    Policies and Procedures for implementing cost, schedule, and quality control throughout an organization, and its real property portfolio, have been available for decades. Today, these have been implemented into complete systems, complete with all required tools and support services.

    Construction Cost Management Policies and Practices
    System-based Construction Cost Management Policies and Practices

    Robust Cost, Schedule and Value Management Programs focus upon fundamental principles that support long-term, mutually beneficial relationships and outcome-focus teams.

    Technical and cost information is shared on an early and ongoing basis via a common data environment, inclusive of locally researched granular unit price data.

    Defined goals, responsibilities, and outcomes are provided within operations manuals / execution guides, and supported by dedicated workflows and enabling, collaborative technology.

    Construction Cost Management Policies and Practices
    Construction Cost Management Policies and Practices Integrate People, Process, Information, and Technology

    Via Four BT, LLC

    Construction Equation

    Construction Equation: Knowledge Problems + Data Problems + Management Problems = Outcome Problems

    Fundamental math for every real property owner… Knowledge Problems + Data Problems + Management Problems = Outcome Problems

    Facilities and infrastructure project investments
    have long-term consequences.

    Knowledge Problems

    • Lack of recognition by senior management of the linkage between between the built environment and organizational mission
    • Low level of understanding of both life-cycle total-cost-of-ownership management and integrated lean planning, procurement, and project delivery principles and processes

    Data Problems

    • Failure to require common terms, definitions, and data environments
    • Failure to leverage locally researched detailed line item cost data
    • ‘Ad-hoc’ data management resulting in duplication of effort, errors, and omissions

    Management Problems

    • Lack of continuous competent leadership
    • Focus upon command and control versus enabling local expertise and decision-making

    Knowledge Problems + Data Problems + Management Problems = Outcome Problems

    Construction Equation: Knowledge Problems, Data Problems, Management Problems = Outcome Problems
    Knowledge Problems + Data Problems + Management Problems = Outcome Problems

    Why should we care… Construction projects and physical infrastructure contribute to 40 % of carbon emission, consume 40 % of global energy & also consume 32 % of the world’s resources….. yet, 75-95% of cost of operation, maintenance & replacement costs can be determined during the procurement stage… so….

    www.4bt.us

    References

    Cartlidge, D. P. (2004). Procurement of built assets. Elsevier Butterworth-Heinemann, 2004.

    Eric Korpi, & Timo Ala‐Risku. (2008). Life cycle costing: a review of published case studies.

    Heralova, R. S. (2017). Life Cycle Costing as an Important Contribution to Feasibility Study Construction Projects. Procedia Engineering

    Janz, D., & Westkämper, E. (2007). Design to Life Cycle by Value-Oriented Life Cycle Costing. In Advances in Life Cycle Engineering for Sustainable Manufacturing Businesses

    Kirkham, R. J. (2005). Re‐engineering the whole life cycle costing process. Construction Management and Economics

    Luu Duc Thanh, Ng S. Thomas, & Chen Swee Eng. (2005). Formulating Procurement Selection Criteria through Case-Based Reasoning Approach. Journal of Computing in Civil Engineering

    Mostavi, E., Asadi, S., & Boussaa, D. (2017). Development of a new methodology to optimize building life cycle cost, environmental impacts, and occupant satisfaction.

    Woodward, D. G. (1997). Life cycle costing—theory, information acquisition and application. International Journal of Project Management

    Goh, B. H., & Sun, Y. (2016). The development of life-cycle costing for buildings. Building Research & Information

    John W.Bull. (2015). Life Cycle Costing: For the Analysis,Management & Maintenance of Civil Engineering Infrastructure

    PD 156865:2008 Standardized method of life cycle costing for construction procurement. A supplement to BS ISO 15686-5. Buildings and constructed assets. Service life planning. Life cycle costing. (2008). BSI Standards Limited.

    Asset Total Cost of Ownership Management, Life-cycle FM

    Life-cycle FM – Asset Total Cost of Ownership Management

    Life-cycle FM – Asset Total Cost of Ownership Management considers the cost off facilities planning, design, acquisition, operation, maintenance and disposal costs. It can be used, in addition to LEAN repair, renovation, and construction delivery methods (Integrated Project Delivery and LEAN job order contracting) to optimize resource utilization.

    Life-cycle FM

    When considered during the planning and procurement phases, Life-cycle FM – Asset Total Cost of Ownership Management can greatly improve the likelihood of best value outcome attainment for all participants and stakeholders.

    Increasing added value per dollars expended has been problematic for most real property portfolio owners, but especially so within the public sector.

    In order to effect measurable positive advancement it is important to understand the full costs of repair, renovation, maintenance, and new build projects and opportunities to optimize the supply chain.

    Conventional procurement approaches lack the robust, collaborative processes that are required to provide requisite levels of either 1.) financial and technical visibility and transparency, or 2.) principles, systems, and workflow to support integrated planning, procurement, and project delivery.

    The significance of adopting readily available tools and services to support efficient Life-cycle FM – Asset Total Cost of Ownership Management is far from trivial. Projected cost savings could easily reach 30%-40%, while consistent delivery of quality repair, renovation, or new construction projects on-time and on-budget is virtually guaranteed.

    Life-cycle FM - Asset Total Cost of Ownership Management

    www.4bt.us

    Best Value FM policies, FM policies and procedures

    Best Value FM policies and procedures – Cohesive, seamless, and proven

    Cohesive, seamless, and proven FM policies and procedures support efficient alignment between facilities and organizational mission requirements.

    Integrated planning, procurement, and project delivery is the only proven method for consistent delivery of best value facilities repair, renovation, maintenance, and new construction projects. Despite this fact, less than 5% of real property owners engage at this level of deployment, and not a single federal sector owner does so on a organization-wide basis.

    Collaborative, integrated construction planning, procurement, and project delivery, as well as asset life-cycle total cost of ownership management, has been proven, and available for decades. It can consistent assure that 90% of all projects are completed satisfactorily, on-time, and on-budget…. with full financial and technical visibility. The current industry norm is that less than 10% of projects meet this level.

    Cost and productivity management issues have plagued the AECOO sector for decades (AAECOO – architecture, engineering, construction, owner, operator).

    Best Value FM policies
    CONSTRUCTION PRODUCTIVITY

    Nowhere is the issue of poor facilities management more pronounced than in the federal sector. The basic lack of continuity of competent leadership and associated zero accountability has perpetuated an environment within which there is little financial visibility or transparency.

    Despite the fact that all the requisite tools and services are available to assure best value facilities management, the federal sector remains mired in archaic, antagonist, and wasteful policies, procedures, and systems.

    Fundamental change is desperately needed, but is not visible on the horizon.

    If only federal FM leadership would consider positive change….

    Best Value FM policies
    Proven Best Value FM – Core Consideration

    Managing Best Value Construction

    Managing Best Value Construction

    Clear definition of information requirements, aligned with robust Lean
    processes, and collaborative delivery teams is a proven pathway to best value construction.

    Primary barriers:

    1. Improper cost focus
    2. Lack of leadership and innovation
    3. Resistance to collaboration and change
    4. Lack of information standards
    5. Poor planning, procurement, and project delivery integration

    Solutions:

    1. Focus upon owner building improved and continuous owner leadership
    2. FM and organizational mission alignment
    3. Widespread adoption of robust asset total-cost-of-ownership management and LEAN integrated planning, procurement, and project delivery processes.

    Learn more…

    2021 Facilities Repair Renovation and New Construction Cost Management

    2021 Facilities Repair Renovation and New Construction Cost Management

    Introduction – 2021 Facilities Repair Renovation and New Construction Cost Management spans multiple principles, practices, domains, and more.

    2021 Facilities Repair Renovation and New Construction Cost Management

    The consistent achievement of best value quality, cost, and schedule outcomes requires the strategic and tactical integration of planning, procurement, and project delivery in concert with the core organizational mission.

    With appropriate levels of owner leadership and competency and currently available tools and support services efficient facilities repair, renovation, maintenance, and new construction (life-cycle management) can be achieved.

    Integrating in-house and contracted resources to achieve optimal outcomes requires a full understanding of expected deliverables and associated strategies and workflows, in addition to a fully skilled and dedicated team.


    Integrated cost and quality management – An integrated cost management process can be established and consistently followed throughout the project planning, planning, and execution when fundamental principles, systems, behaviors, and expectations are defined and supported by a multi-party, long-term, mutually beneficial agreement, associated operations manual/execution guide, and enabling technology.

    All of the above are available within integrated project delivery (IPD) and LEAN job order contracting (LEAN JOC) frameworks and enabling solution sets. These environments, when properly deployed and managed, drive unparalleled levels of efficiency quality. Studies have noted that ninety percent of associated projects can be deployed on-time, on-budget, and to the satisfaction of all participants and stakeholders. This is a clear improvement over the decades long running average level of only 10%-20% of all projects being deployed on-time or on-budget.

    A cohesive, efficient, and fully transparent set of principles, policies, procedures, workflows, and a corresponding common data environment (CDE) area foundational elements of both IPD and LEAN JOC. An outline of these and additional components of these proven frameworks is provided below.

    1. Early and ongoing collaboration of all participants and stakeholders.
    2. Real property owner leadership, commitment, and competency
    3. Long-term mutually beneficial, performance-based, multi-party contracts
    4. Written operations manuals or execution guide as a component of the associated contract
    5. Common data environment – shared terms and definitions as well as detailed line item, locally-researched unit price cost data
    6. Program-centric focus in lieu of project-focus
    7. Best value selection in lieu of low bid or first cost dominance
    8. Defined workflows and decision-support processes
    9. Global oversight with empowerment of local, on-site decision-making
    10. Enabling technology integrating planning, procurement, and project delivery (Program Management, Contract Management, Project Management, Proposal/Bid Management, Estimate Management, Document Management-inclusive of version control, Workflow Management, Work Order Management.
    Sample Workflow
    Project Procurement and Delivery Environment Comparison

    via 4bt.us

    Accuracy of Construction Cost Data

    Currency and Accuracy of Construction Cost Data used for IGEs

    ISSUE-The required standards for the currency and accuracy of construction cost data used for IGEs have not been met for years, and there is appears to be no plan to address this major failing.

     An independent Government estimate of construction costs shall be prepared and furnished to the contracting officer at the earliest practicable time for each proposed contract and for each contract modification anticipated to exceed the simplified acquisition threshold. The contracting officer may require an estimate when the cost of required work is not anticipated to exceed the simplified acquisition threshold. The estimate shall be prepared in as much detail as though the Government were competing for award.

    FAR 36.203 Government estimate of construction costs.

    Construction cost-estimating processes should establish verifiable, current, and actionable detailed project costs. This is a fundamental requirement to providing cost visibility and transparency and associated efficient use of financial resources.

    Currently, many organizations use a one or more of the following, all of which are generally incapable of meeting current regulatory requirements;

    1. Historical construction costs
    2. Third-party cost databases based upon “national averages”
    3. Area cost factors or location factors or economic indices
    4. Parametric cost modeling

    Historical construction costs simply reflect the results of past practices, good or bad. As the AECOO sector has well documented history of rampant economic and environment waste due, further dependencies upon past outcomes clearly represents a problematic practice at best (AECOO – architecture, engineering, construction, owner, operator)

    “National average” cost databases, many of which provide granular detail with respect to labor, material, and equipment costs, by there very design do not adequately consider local market variances. The later are significant due to multiple issues, including but not limited to… highly variable workers compensations rates at the trades level, site access, material availability, etc.

    Areas cost factors of various types and/or economic indices represent an attempt to localize cost data at a granular or higher level (i.e. building type), and/or temporize cost data. The fundamental math issues of attempting to adjust the numerous tasks, labor needs, equipment and material requirements, etc., to derive an verifiable and representative cost for a repair, renovation, or new build projects at a particular location and current time period are readily apparent. The proof lies in the fact that actually construction costs rarely meeting budgeted costs for ANY government construction project.

    Parametric cost modeling, the process of estimating construction costs via mathematical applications to building systems or structures, provide little in the way of verifiable or actionable information.

    FUTURE-Processes, information sources, support services, and tools are readily available to provide government department and agencies with current, verifiable, and actionable cost data. Locally researched detailed unit price cost data provides the granularity to drive defensible and transparent cost estimates at any level. Furthermore these tools and processes significantly improve the detail and accuracy of the initial project scope scope of work… a primary cause of failed repair, renovation, and new construction projects.

    Accuracy of Construction Cost Data

    The barrier to measurable improvement is not the availability of solutions, but the lack of continuity of competent leadership with respect to facilities capital planning and management, and the component of cost construction cost estimating. This problem was recognized decades ago, and is document in books, research studies, and GAO reports, yet there is no current corrective plan.

    Accuracy of Construction Cost Data

    Additional Reading/Reference Information –

    2019, Substantial Efforts Needed to Achieve Greater Progress on High-Risk Areas, GAO-19-157SP

    2016, Indefinite Delivery/Indefinite Quantity project selection framework using stochastic techniques, Jorge Andres Rueda Benavides

    2008, Military Construction Pricing Inequities

    2000, Letter, Federal Facilities Council’s Report on the Role of Facility Design Reviews in Facilities Construction

    “After GSA rebaselines a project, costs may differ from the project estimates approved by Congress…. Congress lacks information about GSA’s performance: such as whether final costs are consistently above, below or meeting estimated costs. Reporting such information could benefit Congress’ ability to carry out its oversight role and improve transparency about the full costs of major federal construction projects.” – According to the report, GSA rebaselined 25 of the 36 projects GAO reviewed from fiscal years 2014 to 2018, to account for things like safety concerns or new tenant needs.

    Adopting a Program versus a Project Approach Improves Facilities Management

    Adopting a Program versus a Project Approach Improves Facilities Management and Construction Outcomes.

    Adopting a Program versus a Project Approach Improves Facilities Management and Construction Outcomes by… 1. Eliminating redundant costs and activities and 2. Aligning strategies and objectives with processes and workflows.

    Volumes have been written about the fragmentation of the AECOO (architecture, engineering, construction, operator, owner) and Facilities Management sectors and their relative high levels of economic and environmental waste.

    Traditionally, architects and engineers, prime contractors, specialty subcontractors, and material suppliers come together one time to execute a single project for a specific owner. Clearly, this process “reinvents the wheel” each time, and as a result rarely captures learnings, and in the end is typically characterized with adversarial short-term relationships driven by first-cost driven competitive bidding process. The process is further negatively impacted it the owner is required to select the low bidder, and owner’s “shop” prices before awarding bids. This particular process can be further deteriorated when subcontractors low bid primes to gain awards. The overall is the current “state of the union” in which 95% of participants don’t engage in integrated, collaborative, and efficient planning, procurement, and project delivery practices, and even fewer maximize the associated potential benefits.

    What is the most critical factor in facilities management and sector? Time. Every other factor… collaboration, information environment, team members, quality, project delivery method, materials, equipment, environment…. impacts time. Every real property owner has an almost exclusive focus upon time, yet as noted, 95% of them don’t even understand that robust program-based solutions exist to provide higher visibility and control of time and all the other areas combined.

    Greater alignment of a program-centric approach with organizational goals integrates all core aspects of FM and associated facilities repair, renovation, maintenance, and new build planning, procurement, and project delivery. This enable over 90% of all projects and work orders to be consistently delivered on-time and on-budget, and to the appropriate specifications. Clearly this level of performance has previously been elusive across the AECOO sector.

    All the tools, information, and support service resources are readily available for any owner to deploy robust, integrated planning, procurement, and project delivery via a programmatic environment. The later also provides complete financial visibility and transparency via a locally researched detailed unit price database, versus lump sum, or national price average, or other unverifiable cost source.

    Program and outcome based coordination and collaboration between owners, design professionals, prime contractors, subcontractors, and suppliers involved during the life-cycle aspects of the project is accomplished via ongoing training, client specific workflows, and supporting Information environments accessible to all. The traditional situation of information generated by various sources in an environment of chaos, without any viable controls of formats, revisions, level of detail or abstraction… is not tolerated. Early and ongoing sharing of actionable information, a situation required within a program-based environment, resolves issues such as low productivity, cost and time overruns,
    change orders, inadequate design specifications, liability claims,
    conflicts and disput.


    A program-based systematic step-by-step approach to operating a value-driven FM and AECOO sector is the only proven path to significant improvement.


    Adopting a Program versus a Project Approach Improves Facilities Management
    Owner Responsibility for Construction Waste

    Owner Responsibility for Construction Waste Across AECOO Sector

    Owner responsibility for construction waste is clearly documented.

    Early and ongoing collaboration between teams working towards mutually defined and beneficial goals is a prerequisite for consistent achievement of maximum integration and utilization of available resources.

    A comprehensive, step-by-step execution guide detailing roles, responsibilities, workflows and information environments, among real propter owners, design engineers, architects, prime contractors, and subcontractors and an associated multi-party long-term mutually beneficial contract is also a fundamental requirement

    It is the owner’s responsibility to provide leadership and oversight with respect to an established strategic framework to meet the budgetary, scheduling, and quality/technical goals of any associated project.

    Owner Responsibility for Construction Waste
    Proven Pathway to Measurable Productivity Gain

    While all of the above is far from common across the architectural, engineering, construction, operations, owner sector (AECOO), both the fundamentals and associated implementation tools and services are readily available. The proven principles, systems, workflows, etc. are far from complex and are documented and executed in a logical, simple, and concise manner. The only steep “learning curve” facing most organizations the needed to change from archaic and antagonistic traditional process, to significantly higher performance means and methods.

    Owner Responsibility for Construction Waste
    Focus upon Integrated Process and Strategic Alignment

    Integrated construction(repair, renovation, maintenance, sustainment, or new build) planning, procurement, and project delivery is a “no brainer”, but rarely practiced. The efficiencies of early and ongoing financial and technical communications among all project participants and stakeholders are well known. While robust processes have existed for decades to support these major improvements, owner leadership and commitment simply been present to drive widespread adoption.

    As are result, rather than leveraging proven systematic approaches embedded with LEAN principles and processes, the AECOO continues to treat each projects as a separate “beast”. The result, of course, is failure to leverage past learnings and inordinate levels of waste. Adversarial short-term relationships driving by sector-wide focus upon “first-costs” continues to be the status quo across all public and private sectors.

    Learn more….

    Alignment creates construction value

    ALIGNMENT CREATES CONTRUCTION VALUE

    Alignment creates construction value and is the primary responsibility of real proper owners.

    Continuous optimization of facilities repair, renovation, maintenance, and new build outcomes is only possible through owner leadership with respect to core principles, systems, culture, and results.

    ALIGNMENT CREATES CONTRUCTION VALUE

    While clearly each project is different, it is important that each is in overall alignment with a robust program (a defined and integrated construction planning, procurement, and project delivery programmatic process).

    Integrated LEAN construction planning, procurement, and project delivery methods are solely capable of defining and managing a multi-party and multi-objective environment. While tailored to the needs of each real property owner and their established teams, and continuously improved upon, fundamental elements are constant throughout all deployments. These core elements include…

    • Multi-party, mutually beneficial long-term contracts and relationships
    • Overall focus upon well defined and well communicated outcomes
    • Program versus project focus
    • Owner leadership and oversight with service partner decision-making
    • Common data environment (CDE), a critical aspect of which is current, actionable, and locally researched detailed unit price cost data (organized via CSI MasterFormat), and common terms and definitions
    • Integral Operations Manual and/or Execution Guide
    • Required initial and ongoing training for all participants and stakeholders
    • Key performance indicators
    ALIGNMENT CREATES CONTRUCTION VALUE

    All the tools and services are ready to create and maintain alignment for any repair, renovation, maintenance, or new construction task.

    Construction Cost Transparency

    Construction Cost Transparency Assures Client Value – Surviving 2021

    Construction cost transparency assures Client Value, and make no mistake, 2021 will be a difficult year.

    Contractors that are more transparent can convince building owners that procuring through them will yield good value; and be much more likely to win business and develop long-term, mutually beneficial relationship.

    The construction planning, procurement, and deliver method and the associated use of locally researched detailed unit price cost data can play an significant role in achieving both construction cost transparency and maintaining/developing a robust, satisfied client base.

    job order contracting
    JOB ORDER CONTRACTING

    Learn more…

    Facilities Operations and Maintenance Planning

    Facilities Operations and Maintenance Planning – Principles, Systems, Culture, & Results

    Efficient Facilities Operations and Maintenance Planning involves integrated planning, procurement, and project delivery support mechanisms. These are fundamental to achieving best value repair, renovation, and maintenance outcomes.

    1. Develop, link, de-conflict, and prioritize realistic and achievable project work scopes.
    2. Provide auditable, accurate, credible, dynamic, disciplined, standardized, cost requirements.
    3. Articulate valid requirements in a consistent and standardized fashion.
    4. Match requirements with contractor capabilities.
    5. Measure and analyze results relative to resources used against planned objectives
    6. Iteratively improve efficiency to achieve planned objectives.
    7. Standardize workflows,
    8. Reduce costs and develop spend analytics, making it easier to identify ‘cost reduction opportunities’,
    9. Improved risk management
    10. Track contract compliance,
    11. Implement vendor scorecards,
    12. Improve satisfaction for all participants and stakeholders

    Adaptable and flexible methods while maintaining the LEAN BEST VALUE principles, objectives, and practices help drive more efficient Facilities Operations and Maintenance Planning.

    Facilities Operations and Maintenance Planning
    Facilities Operations and Maintenance Planning
    RELATIONSHIPS drive Construction QUALITY

    RELATIONSHIPS drive Construction QUALITY improvement and COST REDUCTION

    A critical learning for any facilities management professional and real property owner is that RELATIONSHIPS drive Construction QUALITY improvement and COST REDUCTION.

    Volumes have been written about the excessive waste and low productivity of the architecture, engineering, and construction sector. Unfortunately, most of the writings have not provided a solution.

    Continuous and competent OWNER LEADERSHIP has been, and remains the barrier to measurable improvement of economic and environmental outcomes concerning facilities repair, renovation, maintenance and new construction.

    Construction relationships drive quality improvement and reduction of underlying costs by taking out wastes and inefficiencies. It is the responsibility of real property owners to adopt and deploy proven Principles and Systems, that support a Culture of mutually beneficial, long-term partnering, both internal and external to the organization. Continuous and competent OWNER LEADERSHIP has been, and remains the barrier to measurable improvement of economic and environmental outcomes concerning facilities repair, renovation, maintenance and new construction.

    Customer focus, system thinking, culture and people development, work flow management and performance measurement principles have proven to significantly improve outcomes.

    Strategic and tactical alignment of planning, procurement, and project delivery can only be addressed via partnership-based relationships, systems, and contracts that focus upon continuous improvement and mutual benefit.

    All the requisite tools, information environments, and support services are readily available for those owners ready to address positive, measurable improvement.

    RELATIONSHIPS drive Construction QUALITY
    RELATIONSHIPS drive Construction QUALITY

    Best Value FM

    BEST VALUE FM

    Best value FM (facilities management) involves change management. While many organizations are demanding more, despite the availability of fewer resources, few facilities management professionals can meet the challenge.

    Achievement of basic goals, such as those listed below, is attainable only through changing the ‘status quo’.

    • Reduce operating costs
    • Improve overall satisfaction
    • Extend asset life

    Fortunately all the tools and support services are readily available to any facilities management professional that has the leadership skills to promote positive change.

    BEST VALUE FM

    LEAN FM FUNDAMENTALS

    • Collaborative focus upon outcomes
    • Common data environment with full financial and technical transparency (example – locally researched detailed line item unit price book organized using CSI Masterformat)
    • Owner leadership and competency
    • Long-term multi-party, mutually beneficial, performance-based agreements
    • Enabling technologies that embed robust, proven processes, workflows, and information
    BEST VALUE FM

    Learn more….

    2021 Commercial Construction Outlook

    2021 Commercial Construction Outlook Bleak?

    “This is clearly going to be a difficult year for the construction

    industry. Demand looks likely to continue shrinking, projects are

    getting delayed or canceled, productivity is declining, and few firms

    plan to expand their headcount.”

    -Stephen E. Sandherr, CEO, AGC, January 7, 2021

    General contractors expects the 2021 commercial construction outlook to be far from robust.

    Following a year in which 44% of firms reported they had projects canceled many construction companies will need to focus upon survival.

    2021 projects have already begun to be delayed or cancelled.

    2021 Construction Outlook – Contractor’s Perspective
    Lean methodology is ignored by the construction sector

    Lean methodology is ignored by the construction sector

    Is it a a fact that Lean methodology is ignored by the construction sector. While there has been a fair amount written about Lean principles, actual application in the form of an integrated construction planning, procurement, and project delivery methodology has been limited to 5% or less actual work. Furthermore, of this 5%, most of the applications have not leveraged, or even been designed to leverage the full valued of Lean.

    Research has readily noted the causal factors for the relative lack of adoption of Lean across the construction and facilities management sectors. These factors include….poor formal and professional education in the domain, low investment in research and development, deep
    rooted project culture, perceived long life-cycle of associated return on investment, resistance from construction projects’ participants and stakeholders, and lack of real property owner leadership and competency. (Bayfield & Roberts, 2005, Hook & Stehn, 2008, Howell, 1999, McGrath-Champ & Rosewarne, 2009)

    Lean construction is not simply a matter of applying Lean manufacturing concepts. Little benefit would be achieved by attempting to directly apply the Toyota Production System (TPS), or similar approaches to the AEC sector, exclusive of as a general background learning exercise.

    That said, all the tools and services to implement integrated LEAN construction planning, procurement, and project delivery are readily available to any real property owner to deploy and subsequently achieve significant benefit.

    Collaborative Construction Cost Estimating

    References:

    Abdelhamid, T. (2007). Lean Construction Reading Primer. Retrieved July 12, 2010, from
    https://www.msu.edu/user/tariq/Learn_Lean.html
    Alinaitwe, H. M. (2008). An assessment of clients’ performance in having efficient building
    process in Uganda. Journal of Civil Engineering and Management, 14(2), 73–78.
    Arndt, R. H. (2000). Is Build-Own-Operate-Transfer a Solution to Local Governments
    Infrastructure Funding Problems? (1440-7027). Victoria, Australia: The University of
    Melbourne.
    Australian Constructors Association. (1999). Relationship contracting- optimising project
    outcomes. North Sydney: Australian Constructors Association.
    Ballard, G., & Howell, G. (1997). Implementing lean construction: Reducing inflow variation.
    In L. Alarcon (Ed.), Lean Construction (pp. 110-117). Rotterdam, Netherlands:
    Balkema publishers.
    Barrett, P. (2005). Revaluing Construction -A global CIB agenda. CIB report. International
    Council for Research and Innovation in Building and Construction.
    Bayfield, R., & Roberts, P. (2005). Contract or co-operation? Insights from beyond
    construction: collaboration. Lean Construction Journal 2(2), 22-50.
    Bramble, B. B. (2003). Design-Build Contracting Claims: Cumulative Supplement. NY:
    Aspen Publishers.
    Cain, C. T. (2004). Profitable partnering for LC. Oxford, UK: Blackwell Publishing.
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    innovative and integrated project delivery method

    OpenJOC(TM) Job Order Contracting

    OpenJOC(TM) Job Order Contracting is an innovative and integrated project delivery method that provides more responsive facility maintenance and repair and minor construction.

    innovative and integrated project delivery method
    innovative and integrated project delivery method
    innovative and integrated project delivery method

    The OpenJOC Job Order Contracting Solution reduces design/engineering and procurement lead times dramatically by awarding a competitively bid, firm-fixed-price, indefinite quantity, multi-task contract to a previously approved contractor. OpenJOC JOC Programs exclusively use locally researched detailed unit price cost data and do not rely upon national average cost databases, location factors, and/or economic indexes. Cost visibility and transparency is therefore unparalleled.

    Furthermore, the integration of robust LEAN processes drive continuous improvement and best value.

    Collaborative Construction Cost Estimating
    JOC PROGRAM PLANNING

    JOC PROGRAM PLANNING

    The below items highlight serval consideration for facilities management and procurement professionals involved in JOC PROGRAM PLANNING.

    JOC PROGRAM PLANNING Considerations

    1.0 Goals, Objectives, and associated Strategy

    2.0 Roles and Responsibilities

    3.0 Implementation Processes

    4.0 Common Data Environment

    5.0 Enabling Technology

    6.0 Regulatory Compliance

    7.0 Training

    8.0 Continuous Improvement

    9.0 Recordkeeping

    JOC PROGRAM PLANNING

    Maintain a safe, healthy, and comfortable environment for occupants

    Maintain, or restore the facility and all related elements (i.e. finishes, structure, landscape, equipment and systems) to ensure they serve their intended purpose

    Provide a timely and effective response to job order/work requests

    Maximize the productive lifespan of the building and equipment ·

    Maximize building efficiency 

    Lower overall operating costs

    Protect the organization’s capital investments

    Promote Environmental Sustainability

    Cooperative JOB ORDER CONTRACT - 2021

    Cooperative JOB ORDER CONTRACT – 2021 Best Value Implementation

    DRIVE PRODUCTIVITY, QUALITY, AND ASSURE COMPLIANCE with the Allied States Cooperative (ASC) JOC Program, which exclusively integrates LEAN Construction planning, procurement, and project delivery, with locally researched cost data and mandatory audits, to drive optimal outcomes for your repair, renovation, and minor new construction projects. 

    The selected construction delivery method impacts the success or failure of facilities repair, renovation, and construction programs more than any other single element.  It establishes roles, responsibilities, levels of shared risk/reward, scheduling, defines information and reporting requirements and key performance metrics (KPIs) and sets the overall tone project start to completion and beyond. JOC is proven to provide superior outcomes, however, all JOC programs and cooperatives are not the same.

    Fewer than 5% of public sector real property owners use Job Order Contracting, with even fewer leveraging its full benefits cost effectively. This is especially troublesome when combined with the fact that 80% of all construction projects are over budget or late, and deferred maintenance levels continue to grow.

    Supplement your in-house staff and traditional contracts and consistently deliver projects on-time, on-budget, and to everyone’s satisfaction with the ASC JOC Program.

    Supporting JOC technology, locally researched line item cost data, and training are provided by Four BT, LLC.

    RELATIONSHIP-BASED CONSTRUCTION

    Relationship-based Construction – Integrating Planning, Procurement, & Project Delivery

    Build and manage a framework within which construction is planned, acquired, and executed in a manner that consistently drives best value outcomes. All the tools and services required to create and support a collaborative, relationship-based environment are readily available. All that’s needed is owner leadership and commitment.

    Collaboration, not competition, delivers best value and benefits.


    Teams must be motivated to generate good ideas rather than extracting material gain .

    A clear and primary focus on building a relationship-based construction planning, procurement, and project delivery system has proven to consistently enable quality repair, renovation, and new builds to be delivered on-time on on-budget.

    Attitudes & Behaviors

    Relationship-based Construction

    Common Data Environment

    Clearly Defined Roles, Responsibilities, and Workflows

    Early and Ongoing Transparent Information Sharing Among ALL Participants and Stakeholders

    Traditional approaches to construction project planning, procurement, and project delivery create environments of mistrust and waste, not trust and commitment.

    Enabling Technology

    Global Oversight with Local Decision-making

    Long-term Relationships

    Mutually Beneficial, Performance-based Outcomes

    Shared Risk/Reward

    Connect internal and external teams with customers and work together!

    RELATIONSHIP-BASED CONSTRUCTION

    RELATIONSHIP-BASED CONSTRUCTION PLANNING, PROCUREMENT, AND PROJECT DELIVERY

    RELATIONSHIP-BASED CONSTRUCTION PLANNING, PROCUREMENT, AND PROJECT DELIVERY is the only proven method to consistently drive best value outcomes.

    RELATIONSHIP-BASED CONSTRUCTION

    All of the tools and support services required are readily available to allow any owner with appropriate leadership skills and motivation to efficiently integrate disparate teams of people, process, information, and technology.

    RELATIONSHIP-BASED CONSTRUCTION

    Building long-term relationships, sometimes referred to as “alliance partnering” is a robust method of limiting variation in outcomes and associated risk. Appropriate partner selection creates significant added value for real property owners. Over time, resources are developed for on-demand repair, renovation, maintenance, and new build requirements with organizations that both are familiar with the owner’s physical assets and culture, and trustworthy.

    Internal and external attitudes and behaviors continuously improve over time as do all underlying practices and workflows. A critical aspects is that all roles, roles, expectations, and desired outcomes are well communicated and known to everyone.

    Developing inter-organization and cross-team relationships and developing an innovative and quality, outcome-focused culture is a proven roadmap for significant improvement.

    RELATIONSHIP-BASED CONSTRUCTION
    Uncategorized

    Why Projects Fail

    A great deal of research has been done one why projects fail. The primary causal factors are poor leadership and low organizational maturity.

    94 percent of variations observed in workers’ performance levels have nothing to do with the workers. Instead, most of the performance variations are caused by the system, of which those people are but a part. People can’t perform better than the system allows

    W. Edwards Deming – The System of Profound Knowledge

    First and foremost is important to understand that all projects are exercises in managing change. The fact that variation is going to occur (relative to planned activities and outcomes) during the project is a given. The key to consistent delivery of successful projects therefore lies in the ability to account for and/or manage variations as they occur.

    The ability to successfully account for and manage change during a project lies in an organization’s leadership and level of maturity relative to its strategies, processes, goals, and resources.

    • 40-50% work is either rework or not “value-added work.”
    • 85%+of all projects are over budget (just 31% of all projects came within 10% of the budget in the past 3 years – KPMG)
    • 52% of rework is caused by poor project data and miscommunication (2018 Industry Report – Construction Disconnected, FMI)

     

    Mature organization don’t react to change, they address change according to their programmatic process. Organizations that do not implement and continuously import upon a program-based approach, under which all projects a planned, procured, and executed, suffer from unclear objectives, shifting requirements, unrealistic schedules, and reactive planning,

    Poor planning and poor change management impede individual project successes.

    Real property owners, architects, engineers, and builders all would profit greatly from just applying “Change Management 101” effectively as a priority.

    Traditional construction project delivery is antiquated, outdated, antagonistic, and prone to failure. Fortunately, tools and services are available to improve organizational maturity with respect to construction planning, procurement, and project delivery. These tools integrate these core functions as well as the associated people, processes, information, and technologies involved.

    The path to organization maturity with respect to the ability to fully leverage proven, LEAN and integrated planning, procurement, and project delivery programmatic methods involves stepping form one level to the next. Throughout the ongoing process, however, all of the following are address and/or improved upon:

    • Who can offer change ideas (informally and formally)
    • Who assesses the impact of the proposed change
    • Who reviews the proposed change and its impact for approval
    • How is the change implemented 
    • Documentation of the outcome

    As people naturally resist change, it is up to leadership to embrace and support change management. This is why, at the end of the day, leadership and organizational leadership are the primary cause of endemic project failure. Leadership is needed to fully explain the impacts of programmatic changes upon individual project’s scope, budget, schedule for all participants and stakeholders. The latter includes all internal personnel and departments as well as all external services providers (architects, engineers, contractors, consultants, etc.).

     

    Senior  management  failure is the #1 cause of poor project outcomes. 94 percent of variations observed in workers’ performance levels have nothing to do with the workers. Instead, most of the performance variations are caused by the system, of which those people are but a part. People can’t perform better than the system allows,

    W. Edwards Demming

    The role of senior  management is to  prioritize and clearly communicate requirements, provide resources to efficiently accomplish those requirements,  and  make decisions in support of continuous improvement.

    Mature organizations management recognize change management is essential to project success and the overall attainment of best value outcomes. 

    POOR PROJECT OUTCOMES – CAUSAL FACTORS – KPMG 2012

    ORGANIZATIONAL MATURITY

    Research has readily demonstrated the correlation between the maturity level of an organization and project failure, i.e. excessive time spent upon change orders/rework, budget overruns, and overall client and/or participant dissatisfaction with outcomes. (2006, Gibson, et al, 1994, Haley).

    There are several maturity models that describe the degree of maturity of an organization and/or associated projects. These are helpful in determining current and future levels of progress. The Berkeley PM Process, is one of these. It and others like it, strive to define and organization’s maturity and assist in improvement via a systematic and incremental approach. The various capability maturity models (CMM) can be applied to virtually any industry or market segment.

    Benefit of Improving the Organizational Maturity Level

    +

    CHANGE MANAGEMENT

    Getting an organization to do new things, to collaborate effectively internal and with other organizations, and to improve overall effectiveness is a the up to individual in leadership roles. The “people side” of the equation is the element upon which any organization succeeds for fails. Achieving buy-in form all participants and stakeholders is an ongoing process, but required in order to promote long lasting behavior change. Project rarely fail due to technical issues. It’s the non-technical items that are the root cause of most failures. Oddly, most organizations fail to address people issues and process first. Instead that focus on address problems on an ad-hoc basis, and/or attempt to throw technology at problems.

    COMMON MANAGEMENT FAILURES

    • Short term priorities take precedence over total cost of ownership and best value
    • Failure to implement LEAN processes that require collaborative participation across multiple disciplines and groups
    • Lack of continuous improvement strategy, true cost visibility and transparency
    • No common data environment, including lack of locally researched detailed unit price cost data
    • Poor measurement capability, improper or weak metrics

    PROBLEMS CAUSED BY MANAGMENT FAILURE AND LOW ORGANIZATIONAL MATURITY

    • Ill-defined roles and responsibilities
    • Poor resource utilization
    • Scope creep
    • Poor decision-making
    • Inaccurate, outdated, unverifiable information
    • Poor definition of roles, responsibilities, desired outcomes
    • Lost learnings/knowledge
    • Poor communication

    Project Management Constraints

    • Time: Deadline for delivering the output
    • Scope: Detailed description of required outcome
    • Cost: Funds available to achieve the outcome
    • Talent: People available to lead and work on the task
    • Process: Associated planning, procurement, and project delivery method
    • Environment: Location, climate, social….
    PM TEAM ROLES/RESPONSIBIITIES

    Project Workflow

    •Problem (Need) identification 

    •Problem submission

    •Verification of problem submission 

    •Analysis of problem possible solution 

    •Proposed solution approval

    •Solution development 

    •Problem resolution delivery 

    •Approval 

    •Request submission by client

    •Request analysis and verification 

    •Request for contractor proposal 

    •Proposal review – acceptance/rejection

    •Work order notice to proceed

    •Execution and monitoring

    •Work order closure  

    Project Failure – A project becomes a failure when it does not deliver what was required within the agreed-upon budget and time, to the dissatisfaction of one or more participants.No matter how well-planned your project is, lack of visibility can lead quickly to failure. It’s essential to create a process and system that provides visibility, not just for the project manager but for all team members. Visibility includes full transparency of tasks and costs, status, clear communication, and full document management. When everyone knows the full scope and status of each project task, they can assist or adjust accordingly. It encourages proactive work and problem-solving. Document management must include version control in addition to authorized change management. Simple file sharing and email is ineffective. A centralized, digital storage place for all project documents, forms, status tracking, and authorizations, etc. enables full visibility. Systems supporting real-time notes, notifications, and “chats” support the highest level of information access, sharing, and notifications.

    Project Management Statistics

    Why Projects Fail
    • Only 58% of organizations fully understand the value of project management, yet 93% of organizations report using standardized project management practices. (PMI)
    • 68% – more than 2/3rd – of organizations outsourced or contract project managers in 2018. (PMI)
    • 62% – general contractors who believe lack of coordination and communication between team members is the cause of low construction productivity
    • Only 23% of organizations use standardized project management practices across the entire organization. (PMI)
    • 35% of a construction professional’s time is spent on non-productive activities, including looking for project information, conflict resolution, and dealing with mistakes and rework.
    • 56% of trade contractors cite poor coordination and communication as negative impact on productivity
    • 68% of trade contractors claim that poor schedule management is the top contributor to low productivity
    • Only 22% of organizations use a PM software. (Wellingtone)
    • Only 55% of organizations don’t have access to real-time KPIs. (Wellingtone)
    • 50% of organizations and people spend one or more days attempting to manually collate project information and reports. (Wellingtone)
    • 70% (average) of organizations primarily use spreadsheets to manage projects. (VersionOne)
    • 77% of high-performing projects use project management software.
    • 66% of project managers say that they would use PM software more extensively if they had adequate support from their organization. (Hive)
    • 56% of organizations that have used project management systems have only used one. (Capterra)
    • 54% of of PM software being used is not cloud-based (Capterra)
    • 41% of organizations with an enterprise-wide project management office report that it is highly aligned to the organization’s strategy. (PMI)
    • Implementing PM solutions yields 33% improvement in projects delivered under budget, 27% improvement in customer satisfaction, 25% increase in productivity, and 25% reduction in failed projects. (PMSolutions)
    • 42% of organizations noted resistant to change adopting new PM methodologies.
    • Only 32% of organizations say that they’re satisfied with their current project management maturity level. (Wellingtone)
    • 62% of successfully completed projects had sponsors who were actively supportive. (PMI, University of Ottawa)
    • 33% of projects fail because of a lack of involvement from senior management. (PMI, University of Ottawa)
    • 44% of project managers use no software, even though using commercially available PM software has been known to improve performance and project satisfaction. (PwC)
    • 52% of organizations Businesses say that the biggest impact of project management was on team communication . 44% also said that it improved the quality of the final product, while 38% said that it improved customer satisfaction. (Capterra)
    • Reported reasons for project failure – changes in priorities – 76% (39%, objectives 37%)
    • Poor scope of work / inadequate vision – 64%
    • Poor communication – 29%
    • 2.5% of companies completed 100% of projects successfully (met original goals, budget or deadlines. (PWC)
    • 80% of respondentssaid that they spend half their time on rework. (Geneca)
    • 55% of people involved in projects – team leaders and project managers – feel that the project’s business objectives are clear to them. (Geneca)
    • 80% also feel that the requirements process doesn’t articulate the needs of the business. (Geneca)
    • 76% of users say they are either “very satisfied” or “satisfied” with their decision to use project management software. (Capterra)
    • 64% and 67% of projects with high maturity of PM processes are delivered on time and within budget, respectively. The equivalent figures for low-maturity organizations are just 36% and 43%. (PMI)
    • 83% of high-performance organizations made an ongoing investment in project manager training. 77% of such organizations have formal processes to develop PM competency. (PMI)

    It is possible to discriminate between healthy and failing projects prior to failure before the project execution phase in the capital facility delivery process.

    Chen et al

     Symptoms of Poor Leadership and Process Failure

    • Project leader/manager inexperience
    • Poor communication
    • Poor project oversight
    • Vendor/service provider relationship issues
    • Poor quality
    • Lack of financial visibility/transparency
    • Poor resource allocation
    • Inaccurate budgeting and/or project estimates
    • Design or scope of work issues
    • Excessive change orders/rework
    • Poor site management
    • Wrong team members

    Project Failure – Discrete Causal Factors

     

    Project Delay Causal Factors KPMG 2012

    Causes related to human resource capability

    1. Excessive overtime
    2. An insufficient manpower skill level
    3. Inadequate coordination &integration
    4. Insufficient training and skill development
    5. Disturbances in personnel planning
    6. Lack of employee motivation and rewords
    7. The absence of job security Added (pilot study)
    8. Unclear line of authority and responsibility Added (pilot study)
    9. Personnel attitude (personnel issues) Added (pilot study)
    10. Conflict of interest Added (pilot study)
    11. Lack of safety and welfare commitment
    12. Poor communication system
    13. Ineffective management and decision-making
    14. Failure to implement Quality management
      practices
    15. Causes related to construction process
    16. Lack of Audit and control
    17. Schedule pressures
    18. Late designer input
    19. Constructability problems
    20. Inadequate pre-project planning
    21. Non-compliance with specification
    22. Unclear work specification
    23. Inadequate supervision
    24. Poor project document
    25. Rigidity to improvement Added (pilot study)
    26. Absence of clear uniform standard to accept
      work Added (pilot study)
      Causes related to materials and equipment supply
    27. Untimely deliveries
    28. Non-compliance with specification
    29. Materials not in right place when needed
    30. Pre-Fabrication not to project requirement
    31. Emergency conditions (siege and closures) Added (pilot study)
    32. Adulterated materials Added (pilot study)
    33. Invalidity of needed tests Added (pilot study)
      Client-related causes
    34. Lack of knowledge of construction process
    35. Inadequate briefing
    36. Lack of funding allocated for consultation Added (pilot study)
    37. Changes because of change in officials Added (pilot study)
      Design-related causes
    38. Lack of professionalism
    39. Inadequate procurement methods
    40. Poor project document
    41. Design errors and omission
    42. Competitive/ low design fees
    43. Incomplete information for design
    44. Incomplete design Added (pilot study)
      Contractor-related causes
    45. Poor quality system
    46. Misreading of drawings and specifications
    47. Competitive pressure / low contract value
    48. Attempts to fraud Added (pilot study)
    49. Unqualified technically Added (pilot study)
    50. Financial weakness (Phantom cash flow) Added (pilot study)
      External environment related causes
    51. Government (Regulations, taxes. Interest rates)
    52. Economy (Inflation, exchange rates, market
      Social (Changing social environment,
      resistances
    53. Technological (techniques, facilities,
      machines)
    54. Inadequate local education
      (Collectors – craftsman – technical)
    55. Physical conditions (Infrastructure,
      transportation, etc)
    56. Acts of God/Force Major (Weather, disaster)
    57. Political situation (Siege- conflicts) Added (pilot study)

     

    SOLUTION

    1. Recognize that the organization has many internal and external interrelated connections and interactions instead of looking at each department as an isolated silo.
    2. Follow the chain back to the source of the problem when running into a reoccurring issue. Do tests along the way to confirm.
    3. Focus on driving long-term results instead of fixating on isolated events.
    4. Implement a programmatic, process-centric approach in lieu of an ad-hoc project-based approach.
    Integrated Construction Planning Procurement and Project Delivery

    Real property owners should demand high quality project management and procedurally-mature organizations as they choose their service providers. In doing so, owners will be displaying appropriate leadership as well as stewardship of the built environment.

    Project management is changing, and it’s changing fast. New tools, techniques, processes, and frameworks are disrupting entrenched players and undoing long-held beliefs.

    Recommendation for Improving Project Outcomes – KPMG 2012

    Definitions

    I) Project Mission-Initial clearly defined goals and general directions.
    2) Top Management Support-Willingness of top management to
    provide the necessary resources and authority /power for project success.
    3) Project Schedule/Plan-A detailed specification of the individual
    action steps for project implementation.
    4) Client Consultation-Communication, consultation, and active
    listening to all impacted parties.
    Personnel-Recruitment, selection, and training of the necessary
    personnel for the project team.
    6) Technical Tasks- Availability of the required technology and
    expertise to accomplish the specific technical action steps.
    7) Client Acceptance-The act of “selling” the final project to its
    ultimate intended users.
    8) Monitoring and Feedback-Timely provision of comprehensive
    control information at each stage in the implementation process.
    9) Communication-The provision of an appropriate network and
    necessary data to all key actors in the project implementation.
    Trouble-shooting-Ability to handle unexpected crises and deviations from plan.

    References

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    Improved Construction Outcomes, programmatic construction approach

    Process and a Programmatic Approach Drive Improved Construction Outcomes

    Subject – Process and a Programmatic Approach Drive Improved Construction Outcomes

    The vast majority of scope changes and/or additional work/rework stem from

    1.) uncertainties, faults, and discrepancies in the original detailed scope of work and/or

    2. ) the associated project planning, procurement, and project delivery process.

    Change orders and poor construction outcomes can be significantly reduced by planning, procuring, and executing ALL PROJECTS using a STANDARDIZED, ROBUST, PRGRAMMATIC APPROACH.

    1. Improve scope of work creation and communication.

    2. Assure early, ongoing, clear, continuous, and transparent communication throughout the project among all participants and stakeholders.

    3. Leverage a common data environment, inclusive of locally researched detailed unit price cost data.

    All the tools and services are readily available to reduce waste and improve outcomes… are you? 

     

    Improved Construction Outcomes
    Improved Construction Outcomes – Process Change

    #leanconstruction #facilitesmanagement #constructionmanagement #ipd #costestimating #projectmanagement #projectmanagement #operationsandmaintenance #operationsandmaintenance #constructionproductivity #jobordercontracting #constructionindustry #joc #contractor #lean #projectmanager #operationsmanagement

    collaborative construction cost estimating

    Collaborative Construction Cost Estimating 2021

    Collaborative Construction Cost Estimating

    Collaborative construction cost estimating provides guidance to organizations seeking improved cost visibility and transparency for repair, renovation, maintains and new build projects as well as overall facilities and physical infrastructure management.

    In order to provide current, actionable information and best support associated decision-making, construction cost estimating and cost analysis must be a collaborative process using a common data environment. Integration with planning, procurement, and project delivery professionals and domains is equally critical.

    Project Definition – Understanding a customer request in sufficient detail in order to create a detailed line item construction cost estimate is step one. All program participants and stakeholders should be involved in the definition and approval of these requirements as defined in a detailed scope of work (SOW).


    Common Data Environment – Using industry standard common terms and definitions, presented in plain English, without the use of confusing acronyms or abbreviations, a standard data architecture (example: Construction Specifications Institute MasterFormat), and locally researched detailed construction cost data maximize the communication, transparency, and potential reuse of cost information. A locally researched cost database, also referred to as a unit price book (UPB), describes the technical aspects of construction tasks (required labor, crew composition, productivity, material, and equipment) as well as associated granular cost data.

    Program Approach – Collaborative construction cost estimating, like all related phases such as planning, procurement, and delivery, is best leveraged via a program approach versus a project mentality. In other words, robust, LEAN process takes precedence for all associated projects. This assures robust fundamental rules and workflows are always applied, while recognition that each individual project has its own unique aspects still applies. Both integrated project delivery (IPD) and LEAN job order contracting support collaboration across planning, procurement, and project delivery phases. Workflows, forms, sign offs, etc. are all defined and supported within these collaborative environments with written operations manuals and/or execution guides, as part of multi-party, long-term contracts, and enabling technology.

    Collaborative Construction Cost Estimating
    v

    Enabling Technology – While technology should not be considered a “driver” with respect to either collaborative construction cost estimating or construction program management, is an enabler. The role of technology is to embed robust processes, lower the cost deployment, aid in the consistency of task and project execution, and provide collaborative access to actionable information for all parties. Technology should be capable of the following in order to support construction cost estimating with LEAN collaborative programmatic environments: – Program Management – Contract Management – Project Management – Proposal and Estimate Management – Work Order Management – Workflow Management – Forms and Document Management – Issues/Task Management – BIM Information Viewing and Access.

    Collaborative construction cost estimating drives major benefits for all repair, renovation, maintenance, and new build participants and stakeholders.

    Collaborative Construction Cost Estimating

    via www.4bt.us

    construction planning, procurement, and project delivery

    CONNECT Construction with Best Value

    The consistent execution of quality repair, renovation, maintenance, and new construction activities on-time, and on-budget, remains elusive to most, yet is readily available to all.

    The key to obtaining best value construction outcomes for all participants and stakeholders is the adoption of a program approach vs. a project approach involving robust LEAN integrated construction planning, procurement, and project delivery.

    construction planning, procurement, and project delivery
    Integrated Construction Planning, Procurement, and Project Delivery

    Five key items are critical to effecting significant, long-term improvement in construction (repair, renovation, maintenance, new builds) outcomes.

    1. Leadership
    2. A strategic plan
    3. Focus on process
    4. Knowledge management
    5. Enabling technology
    LEADERSHIP

    Far too often AEC and real property owner organizations focus upon managing people. This a “root cause” of multiple problems that eventually result in failure. People are hired to do a job, provide a service, etc. If properly hired, they simple need LEADERSHIP, not command and control. This isn’t simply an issue of semantics. It is a fundamental change in how organizations function internally and with each other. Leaders support and actively participate in planning, procurement, and implementation, allocate the necessary resources, and monitor and support continuously. Leadership is the act of guiding a team or individual to achieve a certain goal through direction and motivation. Leaders encourage others to take the actions they need to succeed. To be a great leader, it is necessary to learn and cultivate the skills it takes to be effective

    Historically, real property owners have failed miserably at leadership.

    Robust processes have existed for decades that are capable of delivering quality projects on-time and on-budget 90% of time or more, versus the industry standard of 10%-20%. These include LEAN integrated project delivery and LEAN job order contracting, among others. Their failure to gain widespread adoption lies solely with an endemic lack of real property leadership and competency at the highest levels. Much has been written as to the associated causal factors. These factors include the lack of visibility as to the importance of facilities/physical structures at the “boardroom” / highest leaderships levels, to the relative lifespan of physical structures versus the responsible parties.

    Change will only occur when senior leadership, responsible for overall stewardship of the built environment, supports the implementation LEAN and integrated construction planning, procurement, and project delivery at the strategic, tactical and operational levels, throughout the organization.

    The necessary competencies and capacities that each role must have must be developed and clearly defined, as well as associated written Operations Manuals / Execution Guides.

    STRATEGIC PLAN

    As the saying goes “it’s impossible to manage what you don’t measure”. Herein lies the need for a strategic plan and associated tactical and operational elements, complete with quantitative key performance indicators (KPIs).

    Real property owners simply don’t have the right tools, processes, and information in place to efficiently manage their built physical assets. For example, fundamental baseline tools and information include…. 1. location, physical and functional condition, and usage level of ALL physical structures, 2. locally researched detailed line item cost data to enable cost visibility and transparency associated with liabilities, budgets, plans, etc. Without these two (2) baseline elements, ANY associated facilities management activity will be grossly inefficient.

    A strategic plan is required in order to establish a roadmap that guides an organization over time to varies stages of improvement. During the process is important to define baselines, and the associated history of improvement. The strategic, tactical, an operational plans must be deliver, a concise and motivating vision as well as detailed workflows that define and support goals and objectives.

    FOCUS ON PROCESS

    Robust integrated project delivery solution are program, process, and workflow oriented. While each project and/or work order may be different all follow the same fundamental collaborative and transparent processes.

    If you are new to LEAN and a program orientation versus a project mentality, you can likely benefit by beginning with pilot program and phasing your LEAN program into place. In this way, you can better document and communicate your lessons learned and grow your program appropriately for your organization. You can then clearly demonstrate your learning and justify continued and increased investment of resources.

    A program structure relies on multiple tools and methodologies to put its principles and philosophy into practice. Proven implementation tools and services are readily available. They should not be confused however with LEAN philosophies or siloed LEAN elements. Examples of the latter include, include, Value Stream Mapping, 5S Methodology, Takt Time Planning, Last Planner System, Visual Management, among others (all trademarks and rights remain with their respective owners). Learning about these philosophies and siloed elements provides basic knowledge in certain areas, but they do not provide robust implementation platforms for integrating construction planning, procurement, and project delivery.

    KNOWLEDGE MANAGEMENT AND TECHNOLOGY

    Current, accessible, an actionable information clearly is need to connect construction to best value. The AEC industry and the real property owners it rarely establish a common data environment. The net result has been poorly developed work scopes, rampant errors, omissions, and change orders as well as the lack of any verifiable financial visibility or transparency. One of the most important common data elements is a locally research unit price book UPB). The use off a locally researched UPB is critical for developing accurate work scopes and validating proposals from contractors and subcontractors as well as creating sound budgets.

    construction planning, procurement, and project delivery
    construction planning, procurement, and project delivery

    via www.4bt.us

    Alternative LEAN Project Delivery

    Alternative and Iterative LEAN Project Delivery

    Alternative LEAN Project Delivery consistently drives mutually beneficial best value outcomes for the owner, designer, builder, and facility user.

    All of the tools and services required to implement Alterative LEAN Project Delivery are proven and readily available. All that is needed is appropriate owner leadership and commitment.

    Alternative LEAN Project Delivery

    Alterative LEAN Project Delivery integrates the previous silos of construction planning, procurement, and project delivery and all previously disparate team into a cohesive, collaborative, and program-driven environment.

    A collaborative long-term multi-party contract and integral Operations Manual / Execution Guide are key elements as is a common data environment inclusive of a locally researched, detailed unit price book.

    The interrelationships between all participants and stakeholders are well defined. The owner provides leadership and global oversight, where as local expertise and decision-making is fully enabled and supported.

    Team focus is directed towards mutually beneficial, well-communicated outcomes.

    Owner are required to provide a scope of work in sufficient detail to enable requisite design as well as an associated detailed line item construction cost estimate by the associated service partners. This process and workflow, combined with a common data environment that assures technical and financial visibility and transparency, significantly reduces errors, omissions, change orders, and legal disputes.

    Alternative LEAN Project Delivery
    Alternative LEAN Project Delivery
    Alternative LEAN Project Delivery
    Alternative LEAN Project Delivery

    Alterative LEAN Project Delivery is a proven method of programmatic management approach and execution framework that integrates people, process, information, and technology.

    The owner is fully responsible establishing, communicating, managing, and continually improving….

    • Philosophy : The foundational required behaviors for being a participant and the associated achievement of desired outcomes.
    • Methodology: Processes and workflows of how to plan, procure, deliver, manage and continuously improve as well as defining of the required tools and processes.
    • Contract: The multi-party, long term document, inclusive of a written Operations Manual / Execution Guide, that clearly establishes roles, relationships, expectations, performance metrics, etc.

    Change is fundamental for all parties. Is only works if it is coincident with the creation of common interests within an environment with which everyone works, jointly and collaboratively.

    Alterative LEAN Project Delivery has direct impacts upon costs, supporting and improving team participation.

    Variations in processes that traditionally increase costs are minimized as communication among all team members is early and ongoing.

    Program versus Project View

    Alterative LEAN Project Delivery is a way of doing things based upon behaviors, process, workflows, and tools that combine into a Program. All project therefore benefit from a collaborative program-centric approach. While each project is indeed different, the how and why people work together, and the benefits anticipated are full understood and in alignment. This is virtually to achieve with traditional design-bid-build, design-build or other less collaborative processes.

    Projects are conceived, procured, and executed collaboratively within an Alterative LEAN Project Delivery Program. Adversarial relationship and the lack of communication and information sharing, so common with most construction project-centric approached, are eliminated.

    Training is King

    Knowledge and training on Lean and Integrated Construction Planning, Procurement, and Project Delivery is mandatory on an introductory and ongoing basis. Owner and service provider teams work hand in hand service team members to maximize internal and external capabilities and capacities to mutually achieve a best value outcome. This level of communication and collaboration is foreign to most organizations and must be learned and improved in phases.

    Measuring Gaps and Performance

    As progressing towards fully integrated construction planning, procurement, and project delivery is a phased process and one that involves continuous learning and improvement, monitoring performance is equally dynamic. Key performance metrics (KPIs) should be used to measure progress of both strategic and tactical initiatives. Metrics and information gathering methods are also readily available.

    alternative lean project delivery
    Alternative LEAN Project Delivery

    Facilities Total Cost of Ownership Management and Best Value Stewardship

    Facilities Total Cost of Ownership Management and Best Value Stewardship 2021

    Facilities Total Cost of Ownership Management and Best Value Stewardship 2021 provides an introduction to readily available holistic solutions for any organization.

    The primary reason to implement Facilities Total Cost of Ownership Management and Best Value Stewardship to mitigate traditionally extreme levels of environmental and economic waste. This can be accomplished with a transition to a proven LEAN collaborative programmatic approach that provides complete financial and technical visibility and transparency.

    Appropriately implemented and supported change management and associated continuous improvement integrates previously disparate and inefficient planning, procurement, and project delivery processes and teams.

    A fundamental aspect is the focus upon best value delivery of client requirements in a manner that is mutually beneficial to all participants and stakeholders.

    Support services, locally researched detailed cost data, and enabling technology enables superior leverage of client resources.  Best management practices, program, contract, proposal, project, work order, and document management are all components within collaborative technology. The latter delivering current, actionable information to vastly improve decision-making, All processes, workflows, and tools are embedded within and supported by collaborative cloud based technology providing a single source actionable information and traceability.  

    Facilities Total Cost of Ownership Management and Best Value Stewardship 2021

    Learn more….

    job order contracting 2021

    Job Order Contracting 2021 and Beyond


    Job Order Contracting 2021 is a competitively bid, firm, fixed-price, indefinite quantity contract, and integrated planning, procurement, and project delivery program for as-needed construction services.

    It functions like an “as-needed”, “on-demand” repair, renovation, maintenance, and new construction program, and is based upon proven LEAN principles.

    JOC 2020 Cost Reduction

    Rather than bidding out projects separately, as typically done for public sector construction projects, a Job Order Contracting 2021 allows a public sector organizations to construct a series of projects over time, using a competitively bid contract awarded before the projects are identified.

    Job Order Contracting 2021 contract use a locally researched detailed unit price book (UPB) based upon associated commercial construction specifications. The UPB is organized using the CSI MasterFormat data architecture and includes separate line items for demolition as well as line item modifiers (the latter are cost adds or deducts to account for project size or other variables). Labor for each construction task described in a line item is based upon local prevailing wages (or Davis-Bacon Wage Rates as determined by the contract/client), materials, and equipment rates, associated crews, and productivity.
    The UPB reflects Contractors bid an adjustment factor (coefficient) that is applied to all construction tasks listed in the UPB. If a UPB is properly created it consists of “bare costs” only (no contractor overhead or profit). Thus, coefficient typically range from 1.10 to 1.20 for normal work hours. Factors for non-normal work hours or other conditions (high security areas, etc.) may also be required. Job Order Contracts should ALWAYS be awarded upon best value, however, and not lowest costs.

    Typically, contract terms range from one to five years depending on the client and/or applicable statutes. Individual JOC project may range up to $1M+ and annual contract volume can range into the tens or even hundreds of millions of dollars.

    The award of a master Job Order Contact to contractors eliminates the need to go through long traditional procurement processes for each individual projects. RFPs issued by the owner can be responded to within a couple of weeks or less. RFPs are issued by the owner on an as needed basis.
    The owner provides a detailed scope of work, enabling the contractor to create a detailed line item proposal. A joint site visit it typically mandatory part of a dedicated JOC workflow.
    Post award of individual projects, one or more work orders or tasks orders are issues to execute, manage, and complete the project.

    When properly designed, procured, implemented, and managed, JOC is superior to “design-bid-build”, design-build”, and other less collaborative processes. That said, all implementations of JOC are not the same, nor do they all offer optimal benefits. It is important the owners conduct appropriate due diligence. For example, procuring JOC services as a percentage of construction costs is less efficient and opens the door to potential conflicts of interest and even at risk to the “fraud triangle”. Similarly, implementing JOC to simply speed procurement and/or proceed with projects that otherwise may not have been approved is equally problematic and costly.

    LEAN Job Order Contracting

    Therefore, owner should investigate the differences between “traditional JOC” and LEAN JOC. Job Order Contracting leverages lean principles, systems, and process provide the following benefits, where as “traditional JOC” may not. Tools and services are readily available to support LEAN Job Order Contracting.

    • Reduce time to construction by shortening the duration for design, bid and award as compared to design-bid-build and most other methods
    • Reduce costs by lowering administrative and design costs as well as errors, omissions, change orders, and unverifiable cost estimating
    • Significantly increased cost visibility and transparency
    • Increases transparency and certainty in pricing
    • Higher productivity due to partnership, collaboration, and leverage of local experience and decision-making
    • Higher quality and satisfaction levels achieved through performance-based contracting
    • Greater opportunities to use local, smaller, and disadvantages contractors
    • Faster response times and greater flexibility • More efficient reduction of deferred maintenance


    LEAN Principles, Tools, and Support Services
    Uncategorized

    Optimizing Job Order Contacting

    The majority of organizations using job order contracting (JOC) do not have an understanding its full potential.

    The resulting inability to successfully apply lean principles, process, and tools negatively impacts earned value.

    Innovative solutions are available to overcome these barriers and enable best value, integrated construction planning, procurement, and project delivery for all participants and stakeholders.

    Optimizing Job Order Contracting
    Uncategorized

    What is LEAN Job Order Contracting

    LEAN Job Order Contracting (JOC) is a choice.

    It’s a proactive decision to implement and continuously improve upon integrated construction planning, procurement, and project delivery, with a focus upon best value for all participants and stockholders.

    LEAN JOC is proven to support the consistent delivery of quality repair, renovation, maintenance, and new construction projects on-time and on-budget.

    Definition of LEAN Job Order Contracting

    Definition of LEAN Job Order Contracting

    Definition of LEAN Job Order Contracting – LEAN Job Order Contracting (JOC) differs from “traditional” JOC program deployments is several key area.

    Lean Job order contracting is different from other JOC program deployments as it contains a clear set of objectives that enable a public sector order to develop, build, and maintain leadership, knowledge, and capabilities.  

    Any definition of LEAN Job Order Contracting involves…

    1. Direct owner leadership 
    2. Core LEAN processes
    3. Adaptation of process to organizational requirements
    4. No payments  fees based upon a % construction value
    5. Locally researched, fully transparent and verifiable construction cost data
    6. Full compliance and auditability
    7. A focus upon programmatic processes applied to all associated projects and work orders.
    8. Collaborative and scalable cloud technology
    9. Proactive integration of construction planning, procurement, and project delivery
    10. Best value outcomes for all participants and stakeholders

     

    LEAN JOC Programs are proven to support the consistent delivery of quality repair, renovation, maintenance, and new construction projects on-time and on-budget.

    Begin your LEAN JOC journey of learning and continuous improvement.

    Sign up for a free educational session.

     

    Lean Job Order Contracting

    Uncategorized

    JOC Program Procurement

    It’s important to consider the business and risk implications when deciding how to procure JOC Programs, regardless of the vendor.

    JOC Program Procurement requires business and risk management considerations for current and new implementations.

    Job Order Contacting Overview, Job Order Contracting Overview

    Job Order Contracting Overview

    This Job Order Contacting Overview provides the basics for establishing a best value and fully compliant JOC Program.

    Unfortunately, most JOC Programs are not optimized to achieve best value.

    While traditional construction delivery methods are fraught with problems, Job Order Contracting can consistently deliver quality repair, renovation, maintenance, and new construction projects on-time and on-budget.

    Here are a few JOC Program Do’s and Don’ts

    DO – Use locally researched detailed construction cost data that is regularly updated for your JOC unit price book (UPB).

    DON’T – Do not UPB using an economic factor from year to year or quarter to quarter.

    DON’T – Do not use a national average cost book and attempt to create a UPB, with or without factors or construction cost indices (CCIs)

    DON’T – Do not pay for JOC Program tools and services by paying a percentage of JOC construction volume. While it may seem “easier” to pay for these tools/services from project or operational funds, it is generally 3x to 10x more expensive, and per establish financial audit criteria, the practice may set the stage for potential fraud (see references below and associated link).

    DO – Approach JOC as a journey. Implement JOC in phases and grow the program over time.

    DON’T – Do not select JOC if you sole motivation is to speed project delivery times. While faster delivery time is a significant JOC benefit, collaboration toward mutually beneficial outcomes for all participants and stakeholders is equally important. Furthermore, simply speeding up inefficient and ineffective processes should never be a goal. JOC requires a focus upon change management. Day to day decision-making and workflows significantly vary from traditional construction planning, procurement, and project delivery.

    DO – Consider JOC and an integrated construction planning, procurement, and project delivery environment within which early and ongoing communication and collaboration the norm.

    Efficiently maintaining and repairing tens to thousands of buildings isn’t rocket science. All that is needed is a bit of owner leadership, competency, and commitment. Commitment to a collaborative and fully transparent environment inclusive of an agreed-upon database of local construction. The latter used for estimating, negotiating, project control and closeout.

    Job Order Contracting Overview
    Job Order Contracting Overview

    Referenced Information:

    “Restructure Payment Terms in JOG Consultant Services Contracts – (JOC Consultants) fees are currently based on a percentage of total project costs. Therefore, (JOC Consultant) directly benefits when proposal costs are higher (or inflated), including instances when contractors use products outside the catalog which can also result in higher project costs. To reduce the appearance of a conflict of interest and to ensure contractor proposal costs are appropriate, the Countywide work group, in conjunction with County Counsel and the JOC consultant, should consider restructuring payment terms for JOC consultant services to ensure the County’s interests are protected. The Departments’ attached responses índicate that they will participate in the work group to consider restructuring the JOC consultant’s payment terms.” – Excerpt from, COUNTY OF LOS ANGELES
    DEPARTMENT OF AUDITOR.CONTROLLER, COUNTY DEPARTMENTS’ USE OF JOB ORDER CONTRACTS REVIEW (June 14,2016, Board Agenda ltem 2)     . Note the term “JOC Consultant” has been substituted for the actual provider.

    LEAN Construction, LEAN Construction Delivery

    Innovative Job Order Contracting – The LEAN Approach to BEST VALUE

    Continuous Improvement is a fundamental element of LEAN construction and the 4BT OpenJOC(TM) Solution.

    Kaizen:  (ky’zen) – Change for the good, change for the better.

    Kai  – change

    Zen – good

    OPENJOC LEAN Job Order Contacting Solution

    Learn More…

    JOC Program Durations

    JOC Program Durations, Sequence, Resource Planning, Material Planning, Contractor Input

    The success of a JOC Program is dependent upon developing and maintaining effective implementation and management strategies.

    This includes consideration of JOC Program Durations, Sequence, Resource Planning, Material Planning, Contractor Input, and more….

    JOB ORDER CONTRACTING Software and Cost Data

    Benefits of 4BT JOB ORDER CONTRACTING Software and Cost Data

    Here are just a few of the many benefits of 4BT JOB ORDER CONTRACTING Software and Cost Data that drive best value JOC Programs for public sector real property owners and their service partners.

    Assure that your organization achieves best value for your JOC Program, delivers and receives high quality services, and doesn’t pay excessive fees for unnecessary items.

    Choosing the right supplier for your JOC Program can make the difference between a compliant, efficient platform for your numerous repair, renovation, and minor new construction program, or a failed JOC Program (see JOC Program Audits).

    4BT was founded to specifically serve a need for low cost, compliant, high performing JOC tools and services. Why pay a percentage fee of construction value? Why pay for a third party “JOC project manager” when you don’t need one?

    With JOC technology and services created specifically for the needs of public sector owners and their awarded JOC contractors, the 4BT OpenJOC(TM) Solution sets the new standard for value, collaboration, compliance, and overall JOC Program success.

    Attain a level of financial visibility, transparency, performance and overall value that current solutions simply can’t match. In addition to world class JOC technology and services, 4BT exclusively provides its locally researched detailed unit price cost dataset. A dataset that never relies upon location factors, construction cost indexes (CCIs), or other methods that can’t provide the cost information your organization needs.

    Learn more….

    Construction Procurement and Project Delivery Construction Procurement and Project Delivery

    Improving Construction Procurement and Project Delivery – It’s all about the Gaps!

    Construction procurement and project delivery remains problematic for most organizations. Whether it’s repair, renovation, maintenance, or a new build, every construction project involves a relatively large and diverse number of people, from architects to engineers and builders, to facilities management professionals, building users, and other participants and stakeholders.

    Furthermore, for each team member involved in each stage of the process, whether planning, procurement, project delivery, or post-completion, there is a required level of shared information, mutual reliance, and minimum performance level. Any gaps in communication or collaboration therefore directly impact project outcomes.

    And there you have it. The problem and solution to the AECOO sectors rampant economic and environmental waste, simply defined (AECOO = Architecture, Engineering, Construction Operations, Owners).

    World-wide 63% of projects don’t have a “very high” of collaboration, and less than 5% even make an attempt to regularly employ robust LEAN and integrated planning, procurement, and project delivery processes, with even fewer doing so consistently and/or properly.

    Efficient Construction Procurement and Project Delivery

    If owners displays requisite levels of leadership and competency, virtually all (90%+) of all repair, renovation, maintenance, and new construction projects would be planned, procured, and executed in a quality manner, per user requirements on-time, and on-budget. All the tools and services are readily available.

    Construction Procurement and Project Delivery
    Uncategorized

    Job Order Contract Management Resources, Tools and Technology.

    Efficient construction contract management is actually quite simple.

    All that is required is effective leadership capable of deploying proven program-based approaches that focus upon mutually beneficial outcomes.

    Integrated LEAN construction planning, procurement, and project delivery can consistently assure quality repair, renovation, repair, maintenance and new construction outcomes on-time and on-budget. All the support tools and services are readily available(see example). Nonetheless, less than 5% of real property owners implement these proven solutions, and even fewer do so fully and/or properly. The primary barrier is lack of owner leadership with respect to stewardship of the built environment. It’s the elephant in the room that few people have the courage to note. The rampant waste associated with managing the built environment in the public sector is even more pronounced due the the virtual lack of accountability. For example, to this day, there is not a single federal department or agency that deploys a effective facilities repair, renovation, or new build program on an organization-wide basis that provide verifiable financial visibility and transparency. This truth exists despite decades of independent audits and research bring the issue to light.

    The path to efficient life-cycle management of the built environment and the associated planning, procurement, and project delivery of the associate numerous ongoing needs involves…

    1. Owner leadership and competency in both asset life-cycle total costs of ownership management and integrated LEAN planning, procurement, and project delivery.
    2. Written multi-party collaborative contracts and operations manuals/execution guides that establish common, mutually beneficial best value outcomes, and clear communications, inclusive of a common data environment (i.e. locally researched detailed unit price construction cost data in lieu of lump sum quotations, national average cost data, construction cost indexes, historical information, or area cost factors).
    3. A culture of empowerment involving global oversight with empowerment of local decision-making by those experienced professionals doing the work.
    4. Enabling and supporting technology. Technologies sole purpose is to enable consistent and lower cost deployment processes as well as improve efficiency and provide a means of monitoring.

    While each repair, renovation, maintenance, and new build project has its own requirements and characteristics, as does each associated organization, building these characteristics into normal operations allows teams to better deal with the myriad of ever present issues and variances.

    Unit Price Book Selection

    Unit Price Book Selection

    A locally researched, detailed line item Unit Price Book is an important consideration for any JOC Program, and any repair, renovation, repair, maintenance, or new construction project.  It provides a highly detailed scope of work that is easily communicated to all participants and stakeholders, as well as full financial visibility and transparency.

    More specifically, a locally researched UPB, developed by 4BT’s propriety methods and unique capabilities, provides multi-dimensional insight into a multiplicity of cost objects such functions, processes, activities, multi-discipline labor and crews, thousands of material and all required equipment, as well associated productivity an economies of scales.   The approach enable owner lead teams to focus more upon  cost planning and control, and better support every key decision-making including planning, sourcing, pricing, investment justification, procurement,  and execution efficiency and productivity .    Resource costs (labor, material, equipment
    quantities, productivity) are assigned to specific granular activities. The fundamental objects become assigned cost drivers for the specific task.

    Usage of a locally researched 4BT UPB mitigates roots problems and the negative consequences resulting from traditional methods.

    White Paper: How-to-Select-a-JOC- Unit Price Book – – A JOC  Unit Price Book, UPB is very important to the  quality, integrity, productivity,  and transparency of any Job Order Contract. A current, actionable UPB is central success of a JOC Program for all participants and stakeholders.

    Dynamic Construction Cost Control

    Dynamic Construction Cost Control

    Cost and quality management systems in facilities management with respect to the numerous repair, renovation, maintenance, and new construction projects faced by real property owners must be dynamic, proactive and able to support on-demand decision-making processes.

    Driving best value outcomes requires full financial and technical visibility and transparency among all participants and stakeholders, and the associated mitigation of the effects of uncertainty.

    Dynamic Construction Cost Control

    Unfortunately traditional construction planning, procurement, and project delivery methods from design-bid-build, to design-build are not structured to deliver best value outcomes as they are not full collaborative, nor do they use a common data environment and a clear workflows and other tools and processes to enable the achievement of mutually beneficial outcomes for all parties…. owners, designers, engineers, builders, building users, and oversight groups.

    With applied leadership and readily available integrated LEAN construction planning, procurement, and project delivery tools and support services are readily available best value on-time and on-budget outcomes can be the norm.

    Dynamic Construction Cost Control
    LEAN Construction Cost Control

    LEAN Construction Cost Control

    LEAN Construction Cost Control

    Traditional cost estimating methods do not offer any reliable guidance for assessing impacts upon over project costs. Cost management systems should involve a set of robust processes required to ensure that a construction project is completed within the approved budget, on-time, and per specification, including cost estimating, cost control and cost projection. Due consideration of the interaction between cost and time in construction projects depends on the integration of planning, procurement, and project delivery and the used of dynamic cost data.

    National average construction cost data and the use of locations factors, area cost factors, or construction cost indexes are static by nature and do not reflect local costs.

    Tools and services are readily available to support Lean construction cost control.

    Learn more… https://www.4bt.us/integrated-project-delivery-solution/

    References: (Kaka and Price 1991; Turner 1993; Navon 1995). (Kim 2002)

    #leanconstruction #constructionestimating #ipd #integratedprojectdelivery #costestimating #facilitesmanagement #capex #constructionmanagement #operationsandmaintenance #jobordercontracting #lean #scrum #scrummaster #projectmanagement

    LEAN Job Order Contracting

    LEAN Job Order Contracting

    LEAN Job Order Contracting (JOC) differs from traditional JOC solutions provided to simply speed the procurement of construction services.

    LEAN JOC is an integration of planning, procurement, and project delivery that drives best value outcomes for all participants and stakeholders. It is formalized robust process that enables the consistent delivery of quality renovation, repair, maintenance, and new construction project on-time and on-budget. LEAN JOC isn’t JOC Consultants, staff, or contractors, it’s everyone! Everyone has a role to play. LEAN JOC is a journey. It’s an ongoing process that leads sustainable services delivered in a predictable, cost-effective manner. It takes time and effort. It doesn’t instantly allow for recognition of all benefits, but it’s a starting point, a process, a way of doing work.

    LEAN JOC is program-based for all projects and work orders. Robust processes drive a focus upon outcomes for all team members. These process are supported by locally researched, fully transparent detailed unit price cost data and enabling collaborative technology.

    The robust and formalized integration of planning, procurement, and project delivery based upon LEAN, supports best value outcomes.

    Our building needs and costs have change dramatically, yet how we support these needs has not. If you are looking for a way to raise awareness about the need for formalized robust processes to optimized the management of physical assets with respect to repair, renovation, maintenance, and new construction, please contact us.

    LEAN Job Order Contracting is a proven process used to mitigate risk and utilize resource more efficiently, while considering the service needs of all participants and stakeholders

    • Budget smartly

    • Maintain efficient delivery of services

    • Plan for the future

    • Manage risk

    Value is determined by Performance + Risk + Cost, all of which are managed through the best possible integration of People(Teams), Process(LEAN), Information(Shared, Common, Actionable), and Technology(Collaborative with embedded process).

    Improving Construction Procurement

    Improving Construction Procurement Methods

    Improving Construction Procurement

    Improving construction procurement requires the ability to consistently generate value for stakeholders involved in facilities repair, renovation, maintenance, and new builds. It can not be accomplished by a sole focus upon short-term capital cost reduction and traditional win-lose procurement methods.

    Negative conflict-ridden and relatively inefficient construction procurement and delivery methods such as design-bid-build, design-build, construction manager at risk, etc., rarely generate the most efficient outcomes.

    Improving construction procurement involves the integration of people, process, information, and technology and the associated early and ongoing integration of construction planning, procurement, and project delivery.

    Fortunately, all the tools and services are available to support best value integrated construction planning, procurement, and project delivery. These frameworks consistently drive quality, on-time, and on-budget best value outcomes for all participants and stakeholders. They are program-based and all projects and work orders, and associated teams and workflows are follow fundamental rules which include mandatory collaboration, global oversight with empowerment of local decision-making, full financial visibility and transparency, all of which are based upon mutually beneficial long-term relationships.

    Improving Construction Procurement
    LEAN construction quiz, LEAN Construction SWOT Analysis

    LEAN Construction SWOT Analysis

    LEAN Construction SWOT Analysis

    A lot of organizations claim to deploy LEAN construction, however, few actually do. LEAN construction requires integrations of construction planning, procurement, and project delivery, and associated people, process, information, and technology.

    If you want to take the LEAN construction quiz…. request it.

    via Four BT, LLC –

    – Four BT, LLC provides innovative integrated project delivery solutions inclusive of detailed locally researched construction cost data, and enabling SAAS technology. We  help guide organizations to achieve accelerated improvement of their facilities repair, renovation, and construction outcomes, via client-specific programs centered upon achieving best value outcomes. 

    Proven LEAN construction planning, procurement and project delivery  processes, actionable data, enabling cloud technology and ongoing training, are the proven path to significant gains in efficiency and satisfaction. www.4bt.us

    4 PHASES of LEAN CONSTRUCTION

    4 PHASES of LEAN CONSTRUCTION

    Here’s an introduction to the 4 phases of LEAN construction and the consistent attainment of quality repair, renovation, maintenance, and new build projects on-time and on-budget.

    It’s not “rocket science” but is does require new learnings as well as real property owner commitment, leadership, and competency.

    Continuous Improvement is a core element of LEAN construction planning, procurement, project delivery, and beyond!

    Phases of Integration

    1.Adoption

    2.Planning

    3.Implementation

    4.Data Validation & Analysis

    4 PHASES of LEAN CONSTRUCTION

    All the tools and support services are readily available if you are ready.

    Learn more…

    4 PHASES of LEAN CONSTRUCTION
    4 PHASES of LEAN CONSTRUCTION
    Construction Project Metrics

    Construction Project Metrics

    Here’s the beginning of a list of Construction Project Metrics. Please submit yours….

    • # of Projects Completed, Value of Projects Completed
    • % of # of Projects Completed (number) versus # of Projects Planned (same for Value)
    • % of # of Projects Completed (number) versus # of Projects Budgeted (same for Value)
    • % of # of Projects Completed (number) Completed On-Budget (same for Value)
    • % of # of Projects Completed (number) Completed On-Time (same for Value)
    • Average number of Change Orders Per Project
    • Average Value of a Change Order
    • % of Dollars Spent on Procurement vs. Actual Construction
    • Average Project Dollar Value
    • ……
    Construction Project Metrics
    Robust Framework for Improving Construction Productivity

    A Robust Framework for Improving Construction Productivity

    Any organization can consistently assure best value outcomes for facilities repair, renovation, maintenance, and new builds. All the tools and support services are readily available. Robust processes have been proven and available for decades and have now evolved into full solution frameworks for improving construction productivity

    Framework for Improving Construction Productivity

    Integrating People, Process, Information, and Technology with a framework that combines and standardizes Planning, Procurement, and Project Delivery maximizes early and ongoing communication and enables consistent best value outcomes for ALL participants and stakeholders.

    Robust Framework for Improving Construction Productivity

    The core components of Integrated Project Delivery (IPD), for major construction, and LEAN Job Order Contracting (JOC), for repair, renovation, maintenance, and minor new builds, are now available within frameworks that include support services, information environments, and enabling collaborative technologies.

    Collaboration is critical in achieving best value construction outcomes. The success of any repair, renovation, maintenance, or new build project is dependent upon early and ongoing collaboration among key parties. Developing and maintaining a collaborative environment is relatively simple with appropriate levels of owner leadership and competency.

    Framework for Improving Construction Productivity
    Collaborative Construction Environment

    Integrated planning, procurement, and project delivery frameworks enable multidisciplinary individuals to work together efficiently in support of multifunctional tasks. Coordinating collaboration among individuals and teams with diverse background is accomplished by not only assuring early and ongoing communication, but REQUIRING initial and ongoing training and a common data environment (CDE). Training includes processes and workflows for how teams work together. A requisite component of the common data environment is a locally researched unit price book (UPB). A UPB is detailed listing of construction tasks that specific labor, material, and equipment requirements at a granular level. As information is presented in plain English, using industry standard terms, and in a standardized format (CSI MasterFormat), all key participants have full financial and technical visibility into the full scope of work at any point in time.

    LEAN process and workflows provide the primary solution, however, enabling technology plays a role in lowering deployment costs, assuring consistency, providing current information for all participants (a single source of truth), and continuously monitoring key performance indicators (KPIs).

    Framework for Improving Construction Productivity
    Framework for Improving Construction Productivity
    Framework for Improving Construction Productivity
    Framework for Improving Construction Productivity
    Framework for Improving Construction Productivity
    Framework for Improving Construction Productivity
    Framework for Improving Construction Productivity
    Framework for Improving Construction Productivity

    via Four BT, LLC –

    Four BT, LLC provides innovative integrated project delivery solutions inclusive of detailed locally researched construction cost data, and enabling SAAS technology. We  help guide organizations to achieve accelerated improvement of their facilities repair, renovation, and construction outcomes, via client-specific programs centered upon achieving best value outcomes. 

    Proven LEAN construction planning, procurement and project delivery  processes, actionable data, enabling cloud technology and ongoing training, are the proven path to significant gains in efficiency and satisfaction. www.4bt.us

    REFERENCES

    AIA. (2008). AIA Document C195 – 2008, Standard Form Single Purpose Entity Agreement for Integrated Project Delivery, Exhibit D (Work Plan). US: AIA.
    AIA California Council. (2007). Integrated Project Delivery: A Working Definition (2nd ed.). US.
    AIA National, & AIA California Council. (2007). Integrated Project Delivery: A Guide (1st ed.). U.S.: AIA.
    Ashcraft, H. W. (2011). IPD Teams: Creation, Organization and Management. San Francisco: Hanson Bridgett LLP.
    Association for Project Management. (2000). APM Body of Knowledge. In M. Dixon (Ed.). UK: APM.
    Baiden, B. K., & Price, A. D. F. (2011). The effect of integration on project delivery team effectiveness. International Journal of Project Management, 29(2), 129-136. doi: http://dx.doi.org/10.1016/j.ijproman.2010.01.016
    Barlish, K. (2011). How To Measure the Benefits of BIM: A Case Study Approach. (Master of Science), Arizona State University, Arizona, US.
    Barrett, R. (2013). Liberating the Corporate Soul: Taylor & Francis.
    Brennan, M. D. (2011). Integrated Project Delivery: A Normative Model For Value Creation In Complex Military Medical Projects. University of Illinois at Urbana-Champaign, IL, US.
    Brewer, W., & Mendelson, M. I. (2003). Methodology and Metrics for Assessing Team Effectiveness. The International Journal of Engineering Education, 19, 777-787.
    Chelson, D. E. (2010). The Effects of Building Information Modeling on Construction Site Productivity. University of Maryland, College Park, US
    Cleves, J. A., & Dal Gallo, L. (2012). Integrated Project Delivery: The Game Changer. Paper presented at the American Bar Association Meeting: Advanced Project Delivery: Improving the Odds of Success.
    Coates, P., Arayici, Y., Koskela, L., Kagioglou, M., Usher, C., & O’Reilly, K. (2010). The key performance indicators of the BIM implementation process. Paper presented at the The International Conference on Computing in Civil and Building Engineering, Nothingham, UK.
    ConsensusDOCS. (2007). ConsensusDOCS 300: Standard Tri-Party Agreement for Integrated Project Delivery (IPD). US.
    Constructing Excellence. (2006). UK Construction Industry: Key Performance Indicators. UK.
    Cooper, D., Jones, M., & Spencer, L. (2009). Delivery of Sydney Water’s Energy Partnering Relationship Agreement: Transfield Worley Services.
    Cox, R., Issa, R., & Ahrens, D. (2003). Management’s Perception of Key Performance Indicators for Construction. Journal of Construction Engineering and Management, 129(2), 142-151. doi: 10.1061/(ASCE)0733-9364(2003)129:2(142)
    Department of Treasury and Finance. (2006). Project Alliancing: Practitioner’s Guide. Australia: Department of Treasury and Finance.
    El Asmar, M. (2012). Modeling and Benchmarking Performance for the Integrated Project Delivery (IPD) System. (Doctor of Philosophy), University of Wisconsin – Madison, US.
    El Asmar, M., Hanna, A., & Loh, W. (2013). Quantifying Performance for the Integrated Project Delivery System as Compared to Established Delivery Systems. Journal of Construction Engineering and Management, 04013012. doi: 10.1061/(ASCE)CO.1943-7862.0000744
    Ertel, D., Weiss, J., & Visioni, L. J. (2001). Managing Alliance Relationships: A Cross Industry Study of How to Build and Manage Successful Alliances. Massachusetts, US: Vantage Partners.
    Franz, B., & Leicht, R. (2012). Initiating IPD Concepts on Campus Facilities with a “Collaboration Addendum” Construction Research Congress 2012 (pp. 61-70): American Society of Civil Engineers.
    Freeman, J., Weil, S. A., & Hess, K. P. (2006). Measuring, Monitoring, and Managing Knowledge in Command and Control Organizations, NY.
    Galloway, P. D. (2013). Managing

    Improving facilities and maintenance outcomes, Improving Facilities Operations & Maintenance Outcomes

    2020 – Improving Facilities Operations & Maintenance Outcomes

    Improving facilities and maintenance outcomes begins with a strategic review of objectives and alignment with integrated planning, procurement, and project delivery processes.

    Build preeminent performance improvement capabilities driven by information and shared knowledge

    Clear, well-communicated goals and objectives are critical. They, when combined with integrated planning, procurement, and project delivery processes are the proven pathway to best value outcomes.

    Unfortunately facilities/physical infrastructure goals and objectives are rarely well defined and documented in quantitative form. It is therefore virtually impossible to measure and achieve success. Quantitative key performance indicators (KPIs) must be formulated that are in concert with facilities related organizational current and planned needs. Once they KPIs are developed, based upon currant and planned organizational resources, and integrated planning, procurement, and project delivery framework is needed to assure the efficient delivery of best value outcomes.

    With appropriate leadership and competencies, any organization can initiate and maintenance facilities related performance improvement.

    Reliably Deliver Innovation and Improvement

    Step 1 – Review current goals and objectives in concert with resources and processes.

    Step 2 – Realign processes to embed proven LEAN best value methods and solution sets.

    Step 3 – Execute best value approach with continuous monitoring and phased improvement.

    Significant Performance Improvements

    • QUALITY
    • COST
    • TIME
    • CLIENT SATISFACTION
    • COMPLIANCE
    INTEGRATED PLANNING, PROCUREMENT, AND PROJECT DELIVERY SOLUTION
    • Robust Analytics
    • Full Cost Visibility and Transparency
    • Risk Mitigation
    • Facilitated Collaboration
    • Program versus Project Approach
    • Demonstrated model for driving continuous improvement through a organization-wide change management

    Via Four BT, LLC – Learn more?

    Construction Cost Estimating 2020

    Construction Cost Estimating 2020 and Beyond – Must Reading for Owners

    Construction cost estimating is critical to the success of any repair, renovation, maintenance, or new build, and the consistent achievement of best value outcomes.

    Levels of Construction Cost Estimates

    The are many levels of construction cost estimates based upon a “project” life-cycle. A project could involve repair, renovation, maintenance, or a new build. The “level of estimate” refers primarily to the granularity and therefore also its associated transparency and cost visibility. Which level of estimate is appropriate for use depend largely upon organizational processes and levels of competency, as well as “stage” of the project. Stage in this case refers to whether a project is being defined simply for long-term budgetary purposes, or being planned for execution.

    Conceptual or preliminary estimates are developed prior to any design or engineering analysis other than basic requirements definition and or physical and/or functional condition assessment. Cost data obtained at this level is generally used to identify and rank deferred maintenance needs and/or aid in decision support relative to new construction. The types of estimating used at these stages provide gross levels of funding need only, and include the following “parametric estimating” types: building type/building level estimates, square foot level estimating, and systems-level estimating. All of these depend upon historical information for cost sourcing and/or national average cost databases. The value of these types of estimates continues to be debatable.

    Construction Cost Estimating 2020
    Integrated Construction Planning, Procurement, and Project Delivery

    Detailed estimates on the other hand, provide high levels of cost visibility, transparency, and can be validated. This level of estimating requires a specific set of requirements information provided by the owner/owner’s representative. An experience senior construction cost estimator and/or estimating teams then develops a detailed unit priced cost estimate. A key tool in this regard is a locally researched detailed unit price cost database organized using CSI Masterformat. This tool validates the estimate for the local area, shorten estimate creation time, provide a common method for communicating construction project requirements among disparate project participants and stakeholders, and allows estimates to easily be updated and/or reused.

    Summary

    Only detailed line item construction cost estimates should be accepted for review and approval by owners from contractors or other service providers for a planned project to be executed. Additionally, an integrated construction planning, procurement, and project delivery process is equally important to assuring consistent best value outcomes.

    via Four BT, LLC – Four BT, LLC provides innovative integrated project delivery solutions inclusive of detailed locally researched construction cost data, and enabling SAAS technology. We  help guide organizations to achieve accelerated improvement of their facilities repair, renovation, and construction outcomes, via client-specific programs centered upon achieving best value outcomes.  Proven LEAN construction planning, procurement and project delivery  processes, actionable data, enabling cloud technology and ongoing training, are the proven path to significant gains in efficiency and satisfaction. www.4bt.us

    integrate construction workflows

    Collaborate, share data, integrate construction workflows across diverse disciplinary boundaries.

    Collaborate, share data, integrate construction workflows across diverse disciplinary boundaries with the innovative OpenBUILD(TM) LEAN Solution.

    integrate construction workflows

    www.4bt.us

    Construction Procurement

    Construction Procurement – Accelerate Change, or Fail

    Construction procurement planning is critical to the success of facilities management and all related repair, renovation, maintenance, and new build activities.

    Focus upon best value based processes, long-term service provider partnerships, LEAN construction delivery methods, and enabling collaborative technologies can lead to measurable and significantly improved outcomes.

    Proactively making these changes requires leadership and competency in order to link previously disparate domains. Leaders must reimagine procurement and fundamentally change how internal and external teams are built and work together.

    Implement Best Value Construction Procurement

    Fortunately all the support tools and services are readily available to enable procurement teams to play are leadership role in efficient construction planning, procurement, and project delivery.

    Construction Procurement
    Construction Procurement
    Construction Procurement
    Construction Procurement
    Planning Major and Minor Facilities / Asset Repair

    Planning Major and Minor Facilities / Asset Repair, Refurbishment, Maintenance, Renovation, and Construction

    How real property owners and facilities management professionals traditionally plan, procure, and deliver projects is the most significant barrier to improving capital reinvestment performance outcomes.


    Without effective management processes it is impossible to consistently achieve best value outcomes, such as the consistent delivery of quality repair, renovation, or new construction projects on-time and on-time. In fact, less than 20% of all projects are delivered on-time and on-budget, or per stakeholder requirements.

    In the public sector, whether Federal, State, County, or Local Government there are few if any departments or agencies that deploy an organization-wide best value planning, procurement, and project delivery process. From the GSA PBS to your local school system, millions of dollars of waste are the norm and both true financial visibility and transparency is lacking. The results are….

    Excessive maintenance costs

    • Unplanned downtime
    • Poor Quality
    • Inefficient communication and collaboration among internal and external teams
    • Inability to accurately measure performance or track improvement
    • Wasteful / Inappropriate capital spending

    Robust processes, tools, and services are readily available for any organization to significantly improve physical asset governance and maximize the use of available resources.

    Planning Major and Minor Facilities Asset Repair

    Integrated LEAN planning, procurement, and project delivery solutions…

    • Improve performance
    • Mitigate risk
    • Reduce cost
    • Increase productivity
    • Reduce reactive maintenance
    • Lowered deferred maintenance
    • Achieve continuous improvement

    Learn more about…

    Lean Construction

    Available Tools and Services

    Other

    Additional Reading…

    Best value construction metrics involve continuous assessment of team performance and improvement. Key areas monitored include the level of collaboration, timeline, costs and cost comparisons, specifications, satisfaction, and quality.

    Best value construction requires the integration of planning, procurement, and project delivery people, processes, information, and technology. As such its important to monitor and continuous improve across all of these previously disparate domains. Integrated project delivery, IPD, for major new construction, and LEAN job order contracting, OpenJOC(TM), for repair, renovation, maintenance, and minor new construction are robust environments that support best value construction. Both of these enable organizations to transition from lack of productivity and positive outcomes due to issues with multidisciplinary teams and multi-functional task requirements to highly collaborative and coordinated outcome-focused systems. IPD and JOC promote the ability for people with diverse capabilities and backgrounds to collaborate and enhance overall performance and maximize goals attainment.

    Best Value Construction delivery is dependent on collaboration and teamwork among all project participants. Poor collaboration is the most primary cause of construction project failure.

    While all the requisite tools and services are readily available to support IPD, LEAN JOC, and best value construction delivery, the participants’ ability to collaborate, and a real property owner’s ability to lead and implement collaborative environments varies significantly. Currently less than five percent (5%) of owner’s implement these proven tools, and fewer maximize their capabilities.

    A collaborative team requires performance assessment and continuous improvement to remain effective. This includes regular independent third-party audits and well as initial and ongoing training, as well as real-time monitoring of key performance indicators (KPIs). A common data environment (CDE), inclusive of a locally researched detailed unit price book and supporting technology to assure full document management, inclusive of version control and change monitoring are also key components.

    Tracking communication activities as well as workflows and associated phases is a central focus of best value construction performance monitoring. Collaborative construction planning, procurement, and project delivery environments include a multi-party contract and an Operations Manual/Execution Guide. All of the roles, responsibilities, documents, workflows, information architectures, and deliverables are clearly written. Performance metrics, therefore, are derived from these documents.

    Learn more…

    References:

     El Asmar, Hanna, and Loh, 2013

    Baiden and Price, 2011

    Thomsen, 2009

    AIA California Council, 2007

     Gerschman and Schauder, 2006

    What is Job Order Contractin

    What is Job Order Contracting?

    What is Job Order Contracting…. A Job Order Contacting (JOC) Program optimizes small to medium, repetitive, and easily defined maintenance, repair, renovation, and minor new construction projects of which the scope aligns transparently with a pre-priced locally researched detailed unit price book (UPB). JOC is a form of indefinite delivery indefinite quantity (IQIQ) LEAN construction integrated planning, procurement, and project delivery method.
    JOC master contracts to prequalified contractors through a competitive bid process whereby contractors bid a factor (JOC coefficient) per the pre-priced JOC UPB. The pre-priced catalog is generally adjusted annually, or more frequently. The contractor’s adjustment factor remains fixed for identified terms of the contract.
    Values for the minimum and maximum dollars value for the annual contract and for each project are stipulated, as well as the type of projects.
    An independent review of each project, by a knowledgeable person that is not the JOC Program Manager, is best practice.

    Redefining Construction Relationships

    Redefining Construction Relationships – The Proven Path to Higher Productivity

    Redefining construction relationships is the only proven path the higher productivity.

    Redefining Construction Relationships
    Redefining Construction Relationships

    All the tools and support services are readily available to enable real property owners and their selected services partners to consistently complete quality repair, renovation, sustainment, maintenance, and new construction projects on-time and on-budget.

    Building awareness mutually beneficial LEAN integrated project delivery processes and subsequent deployment and refinement would resolve the issue of rampant economic and environmental waste endemic to the AECCO sector (AECOO-Architecture, Engineering, Construction, Operations, Owner).

    Learn more….

    Articles
    JOC Contractors
    Links
    Research
    Presentations
    Standards
    Statutes, Regulations
    Webcasts
    White Papers
    Videos

    Construction Cost Indexes, Issues with Construction Cost Indexes, Location Factors

    Issues with Construction Cost Indexes, Location Factors, and Cost Estimating for IDIQ and JOC

    Issues with Construction Cost Indexes, Location Factors, and Cost Estimating for IDIQ and JOC impact cost visibility and transparency. Indefinite Delivery and Indefinite Quantity (IDIQ) and Job Order Contracts (JOC), as well as other multi-year construction contracts require a way for contractors do account for cost impacts associated with various contingencies. In this case the discussion is centered upon addressing costs for the local market as well as annual (or quarterly) economic impacts to costs.

    Independent research and professional experience has clearly demonstrated that the use of location factors/indices and economic indexes are do not enable reliable cost information capable of being used for construction planning, procurement, and associated project delivery.

    Locally researched detailed unit price cost data is best suited for providing verifiable cost visibility and transparency at a site, or other appropriate geolocation basis. Similarly, updating the locally researched cost data annually or quarterly provided far more useful information than the simple multiplication of a cost factor. In this manner, labor, material, and equipment can all be updated at a granular level to best reflect actual costs of construction tasks.

    History of Cost Factors

    Initially, index numbers were used to factor in the cost of money.the value of the money using simple non-weighted values. The were used primarily in the financial sector. Indexes were not used in the construction industry until the 1920’s. Today there are multiple indexes available targeting time-based economic costs at both a high level on an annual, quarterly, monthly basis, etc., as well as factors addressing specific classes such as materials, equipment, or labor. Location factors are also now readily available.

    Issues with Construction Cost Factors

    Although using construction cost factors to localize cost data is faulty concept it remains common practice. The common practice of using construction cost indexes to localize cost information or account for changes over time should be reconsidered by all real property owners.

    References

    • 2016 – Indefinite Delivery/Indefinite Quantity project
      selection framework using stochastic techniques
    • 2011 – Price Indexing in Transportation Construction Contracts
    • 1975 – Index numbers in theory and practice

    LEAN Construction Planning Procurement Project Delivery Solution, LEAN Construction Planning Procurement Project Delivery Solution Solution

    Announcing an Innovative LEAN Construction Planning Procurement Project Delivery Solution

    Announcing the industry’s only LEAN Construction Planning Procurement Project Delivery Solution with Program Management, Project Management, Proposal Management, Estimate Management, Work Order Management, Document Management, Issues/Task Management, Contractor and Subcontractor Management, WBE/MBE Management, Budget/Actual Management, BIM Information Access and Integration… and more.

    The 4BT OpenBuild (TM) 4BT-PE enables a whole new way for real property portfolio owners and their service providers to interact on a full transparent and collaborative basis to achieve mutually beneficial best value outcomes.

    Remove the traditional silos and no longer depend upon inefficient and antagonistic construction delivery methods.

    Learn more?

    LEAN Construction Planning Procurement Project Delivery Solution Solution
    Collaborative LEAN Construction Planning Procurement Project Delivery Solution

    Effectively plan, procure, and manage repair, renovation, maintenance, and new construction projects on a consistent basis.

    1. Avoid costly project delays and shorten project delivery timelines
    2. Put an end to inaccurate scopes of work
    3. Assure cost visibility and full cost transparency
    4. Drive BEST VALUE outcomes
    5. Assure all documents are current and available
    6. Improve quality
    7. Reduce costs

    Process comes first and technology is just an enablers. That said, paper-based communications cause excessive errors and omissions, which lead to needless costs and delays.

    Construction Material Prices

    Construction Material Prices Rise

    2020 Construction Materials Prices are up 1.1% versus 2019, basically in concert with with a 1.0% year over year increase in the Consumer Price Index (CPI).

    Price changes for individual commodity categories over the past twelve months have varied widely. For example…

    +12% Plywood products

    +26% Lumber/softwood

    -2% Copper wire

    +2% Plumbing fixtures

    -8% Hot rolled steel

    via Four BT, LLC – www.4bt.us

    Construction Material Prices
    Uncategorized

    UK Construction Employment Decline Worst Since 2010

    83,000 lost jobs in 2nd quarter 2020 (Office of National Statistics)

    via Four BT, LLC –

    Four BT, LLC provides innovative integrated project delivery solutions inclusive of detailed locally researched construction cost data, and enabling SAAS technology. We  help guide organizations to achieve accelerated improvement of their facilities repair, renovation, and construction outcomes, via client-specific programs centered upon achieving best value outcomes. 

    Proven LEAN construction planning, procurement and project delivery  processes, actionable data, enabling cloud technology and ongoing training, are the proven path to significant gains in efficiency and satisfaction. www.4bt.us

    Job Order Contract Best Management Practices

    Job Order Contract Best Management Practices

    Job Order Contract Best Management Practices involve a focus upon LEAN collaborative construction planning, procurement, and project delivery processes and the associated integration of people, process, information, and people.

    Not all Job Order Contracts (JOC) and JOC Programs are the same. In fact, many JOC Programs have failed to employ LEAN principles. Instead, JOC is used simply to speed procurement, and in some cases, even bypass traditional procurement safe guards (see JOC Program Audits).

    When properly developed and managed, JOC Programs can measurably improve quality, cost visibility and transparency, shorten overall project delivery timelines, and elevate levels of satisfaction for all participants and stakeholders.

    Job Order Contract Best Management

    While each Job Order Contract and JOC Program is tailored to the real property owner’s specific requirements, the following characteristics are common to ALL JOCs observing best management practices.

    1. Early and ongoing collaboration among all participants and stakeholders
    2. Focus upon mutually beneficial outcomes
    3. Mutual trust and respect
    4. Shared risk/reward, with reward based upon performance
    5. Long-term relationships
    6. Owner leadership and competency
    7. Continuous improvement
    8. Common data environment, including transparent and verifiable locally researched detailed unit price cost data (National average cost data with/without location factors is not recommended.)
    9. Enabling technology – Program Management, Project Management, Proposal Management, Estimate Management, Work Order Management, Workflow Management, Cost Data Management, Document Management, Issues/Task Management, Contractor/Subcontractor Management, WBE/MBE Management, BIM information integration
    10. Global oversight with local decision-making
    Job Order Contract Best Management Practices
    JOC Program Best Management Practices

    via Four BT, LLC –

    Four BT, LLC provides innovative integrated project delivery solutions inclusive of detailed locally researched construction cost data, and enabling SAAS technology. We  help guide organizations to achieve accelerated improvement of their facilities repair, renovation, and construction outcomes, via client-specific programs centered upon achieving best value outcomes. 

    Proven LEAN construction planning, procurement and project delivery  processes, actionable data, enabling cloud technology and ongoing training, are the proven path to significant gains in efficiency and satisfaction.

    national average cost data, Using Location Factors

    The Issues Associated with Using Location Factors and “national average” cost databases

    Their are multiple issues with using national average cost data bases, with or without associated location factors. These are described below. Properly developed locally researched detailed unit price cost data provides unparalleled cost visibility and transparency.

    Here are a series quotations from independently published research papers or professional articles noting the issues associated with the use of location factors.

    “Location factors are used during preliminary project evaluations. They are not intended to be used when preparing appropriation-quality estimates. They often are applied to conceptual estimates for identifying “go/no-go” projects at an early stage.” (Peitlock, B.A., ccc, Developing Location Factors Using a Factoring Method, International Cost Engineering Council, ICEC International Cost   Management Journal (ICMJ), 1998.)

    Location factors are primarily used in class 4 and 5 estimates and are not intended to be used for higher quality estimates, such as class 3, 2, or 1. The RSMeans city cost index (CCI) and the Department of Defense area cost factor (ACF) index are two primary examples of location factor publications. (Martinez, A., Validation of methods for adjusting construction cost estimates by project location , University of New Mexico UNM   Digital Repository, 2010)

    “Despite its potential weaknesses, estimation by adjustment factors is a very common approach for all types of construction. A very common approach for performing quick-order-of-magnitude estimates is based on using Location Cost Adjustment Factors (LCAFs). The accuracy of cost estimates in the early phases varies within an expected range that spans from -100% to +200% ” “Using the results of this study, various commercial entities (e.g., RS Means) could enhance their online tools by uploading publicly available socio-economic variables and allowing users to perform geostatistical analysis. As a result, a cost engineer could input the location of a project and obtain the most accurate location adjustment factor through a mix of interpolation and geostatistical prediction techniques.” (Migliaccio, G., Empirical Assessment of Spatial Prediction Methods for Location Cost Adjustment Factors, J Constr Eng Manag. 2013)

    “Problems within the methodology, unfortunately, will continue to arise as standardized estimation tools (CCI) simply cannot account for the unique characteristics of individual states.  Unfortunately, the accuracy of program-wide CCIs occasionally led to swings of ±20 percent after projects had gone through the bidding process. Additionally, no direct application of market or economic conditions existed in this conventional CCI process, which was theorized by FHWA to potentially be a significant influence on resulting project estimate accuracy. ”    (University of Colorado Denver College of Engineering and Applied Science Department of Civil Engineering, Validation of Project-level   Construction Cost Index Estimation Methodology, 2017

    via Four BT, LLC – Four BT, LLC provides innovative integrated project delivery solutions inclusive of detailed locally researched construction cost data, and enabling SAAS technology. We  help guide organizations to achieve accelerated improvement of their facilities repair, renovation, and construction outcomes, via client-specific programs centered upon achieving best value outcomes. 

    Proven LEAN construction planning, procurement and project delivery  processes, actionable data, enabling cloud technology and ongoing training, are the proven path to significant gains in efficiency and satisfaction. www.4bt.us

    national average cost data
    Construction Cost Model

    Construction Cost Model

    INTRODUCTION

    Oddly, few real property owners create a detailed construction cost model for their renovation, repair, maintenance, or new build projects. This is a primary factor causing the high level of waste and dissatisfaction associated with life-cycle management of the built environment.

    WHAT IS A MODEL? WHAT IS A CONSTRUCTION COST MODEL?

    Let’s start with the basics… what is a model? ” A model a three-dimensional representation of a person or thing or of a proposed structure, typically on a smaller scale than the original.” or “a system or thing used as an example to follow or imitate.” While a model can be defined in multiple ways, for the most part it is a way of sharing information and/or a level of understanding, or “a means for conceptualization and communication of ideas in a precise and unambiguous form” (Matipa, 2008). A construction cost model is a verifiable means for conceptualization and communication of detailed repair, renovation, maintenance, or new construction project’s physical and financial requirements is a precise, unambiguous, and standardized format.

    COMMON DATA ENVIRONMENT

    A common data environment (CDE) is a requisite component of an efficient construction planning, procurement, and project delivery environment. A locally researched detailed unit price book, written in plain English, with complete titles and definitions, and breakdowns for associate labor, material, and equipment, organized using a standard data architecture (i.e. CSI Masterformat)…. is perhaps the single most important common data source.

    Construction Cost Model

    Learn more? Please contact us.

    .

    Proven Job Order Contracting Practices

    Proven Job Order Contracting Practices that Drive Improved Construction Outcomes

    INTRODUCTION

    Proven Job Order Contracting Practices have evolved to enable the consistent delivery of quality repair, renovation, maintenance, and new construction project on-time and on-budget. Solutions such as the OpenJOC(TM) Framework, optimize the integration off people, process, information, and enabling technology to drive best value outcomes for both real property owners and construction services providers. Tools and services are readily available to support collaborative construction planning, procurement, and project delivery .

    PROCESS VERSUS TECHNOLOGY

    While the issues of low productivity and associated economic and environmental waste associated with constructing and sustaining built structures has been well documented, education and training relative to existing solutions has been insufficient.

    While BIM has highlighte the need for integrating people, processes, and information, it does little to address the need to clearly establish workflows, information data sets, and requirements that drive outcomes that are truly beneficial for all participants and stakeholders.

    Undue focus has been placed upon technology, in the form of BIM for example, as a potential solutions. Despite the fact that history has proven that technology is a enabler and not a solution unto itself, most organizations have focused there, rather than addressing the issue of sorely needed change and change management throughout the Architecture, Engineering, Construction, Operations, and Owner domains. While BIM
    has highlighted the need for integrating people, processes, and information, it does little to address the need to clearly establish workflows, information data sets, and requirements that drive outcomes that are truly beneficial for all participants and stakeholders. The proven path to the the former is an integrated planning, procurement, and project delivery environment.

    INTEGRATED PLANNING, PROCUREMENT, AND PROJECT DELIVERY

    Integrated planning, procurement, and project delivery is readily available, and ranges from LEAN job order contracting, to integrated project delivery and other forms of “alternative project delivery”. While each of these have their unique qualities and can be further tailored to specific organizational needs, they all have the following requirements…

    • locally researched detailed unit price cost data, organized using a standard date architecture.
    • mandatory collaboration.
    • early and ongoing communication among all participants and stakeholders.
    • multi-party agreement, complete with an Operations Manuals / Execution Guide.
    • shared risk/reward, based upon performance
    • global oversight, inclusive of KPIs, with localized decision-making (those actually doing the work)
    • long-term relationships built upon trust and respect
    • regular independent third-party reviews/audits
    • supporting technology (program management, proposal/bid management, estimate management, project management, work order management, document management, building management, team management, issues/task management, forms management, contract management, constractor/subconstractor management, BIM information integration, internal system communication (no reliance upon emails and/or spreadsheets), and,
    • required and ongoing training for all participants and stakeholders.

    Collaboration between project parties, starting from the early planning phases throughout project close-out and beyond is difficult, if not impossible to achieve on a regular basis by using traditional
    procurement methods, such as the Design-Bid-Build (DBB) method, or even design-build (DB).

    If participants an stakeholder act as as autonomous units
    focusing on their own interests and incentives, it should come as no surprise that poor performance, low levels of satisfaction, conflict and disputes, are the norm.

    4BT Efficient Construction Project Delivery and Job Order Contracting 
    Proven Job Order Contracting Practices drive improved construction outcomes

    via Four BT, LLC – Four BT, LLC provides innovative integrated project delivery solutions inclusive of detailed locally researched construction cost data, and enabling SAAS technology. We  help guide organizations to achieve accelerated improvement of their facilities repair, renovation, and construction outcomes, via client-specific programs centered upon achieving best value outcomes. 

    Proven LEAN construction planning, procurement and project delivery  processes, actionable data, enabling cloud technology and ongoing training, are the proven path to significant gains in efficiency and satisfaction.

    Uncategorized

    Adaptive Construction Planning, Procurement, and Project Delivery

    Adaptive Lean Construction Planning, Procurement, and Project Delivery tools and services are readily available to assure the consistent delivery of quality repair, renovation, maintenance, and new construction projects on-time and on-budget.

    The fundamental issues associated with design-bid-build and even design-bid, are well known to experienced AECOO professionals (architecture, engineering, construction, operations, owner). Rampant waste and high levels of dissatisfaction of all participants and stakeholders are the norm.

    With a bit of leadership and commitment on the part of real property owners, and a program of initial and ongoing training, over 90% of all repair, renovation, and construction projects can be delivered on-time and on-budget, as well as to the mutual satisfaction of everyone involved.

    Adaptive Construction Delivery

    Adaptive LEAN Construction Basics – Collaborative management and governance with early and ongoing communication of all participants rests at the core of adaptive LEAN construction. Integrated planning, procurement, and project delivery, with a focus upon transparency and mutually beneficial outcomes is equally important. A common data environment, including a detailed unit price line item cost data resource are mandatory componets to assure full communication of scope of work and associate work requirements, costs, and schedules.

    Technology, while secondary to outcome-focused processes, supports lower cost deployment, access to current actionable information, consistency of developed workflows, and enables real-time monitoring.

    Roles and responsibilities, deliverables, tools, workflows, etc., are all specified with a collaborative contract and an operations manual/execution guide. Global oversight is integrated with localized decision-making. Recognition and leverage of the expertise of those actually doing the work is the norm.

    Adaptive LEAN construction serves to integrate People, Process, Information, and Technology throughout all phases of Planning, Procurement, and Project Delivery.

    Financial visibility and predictability is available for all projects through a PROGRAM focus. This Program focus is shared among all participants and stakeholders and maintained and continuously improved via long-term mutually beneficial relationships. Reward is performance based.

    Summary – In order to achieve the benefits of adaptive LEAN construction planning, procurement, and project delivery, real property and owners and their service partners need to adapt and abide by its collaborative principles and characteristics.

    Hopefully there will come a time when more owners will explore and adapt efficient and integrated construction planning, procurement, an project delivery methods.

    Adaptive Lean Construction

    Via Four BT, LLC, the AEC industry’s innovative integrated project delivery, detailed locally researched construction cost data, and SAAS technology solutions provider integrating powerful, proven adaptive LEAN project planning, procurement, and execution methods.

    We help guide organizations to achieve accelerated improvement of their facilities repair, renovation, and construction outcomes through the development of a culture and client-specific programs centered upon delivering customer value, driven by, proven LEAN processes, actionable data, enabling cloud technology, and ongoing training.

    • Program Management
    • Contract Management
    • Project Management
    • Work Order Management
    • Full Document Management (version control, inclusive of document “check-in/check-out”)
    • Building Management
    • Geolocation
    • Space Management
    • Component Management
    • Issues/Task Management
    • Team Management
    • Contractor/Subcontractor Management
    • MBE/WBE/HUBZONE… Management
    • BIM Viewing and Information Access/Integration
    • Internal System Messaging
    • ISO Security Compliance
    • Workflow Management
    •  Forms Management
    • Work Phase Tracking
    • SQL/Excel/PDF Export
    • Reporting
    • Co-efficient Tracking / Multiple
    •  Financial Tracking – Budget vs. Final
    •  Change Order Tracking 
    • Non-prepriced line item Tracking
    • Copy/paste Projects
    • Copy/paste Estimates
    • Automatic Estimate Comparison
    • Five (5) Security Levels
    • Support for multiple UPBs
    • Locks UPB to Contract
    • Search Capabilities (Tree, Masterformat, Full Text)
    • Tag and Input Multiple Line Items
    • Multi-Format Viewer (DWG, Revit, PDF…)
    • Associate and Manage Multiple Coefficients
    • User Dashboard
    • Summary and Detailed Estimate/Bid/Proposals Reports
    2020 Guide to Construction Cost Estimating

    2020 Guide to Construction Cost Estimating

    2020 Guide to Construction Cost Estimating provides a road map for applying best management practices necessary to drive financial visibility and transparency.

    Introduction

    Locally researched detailed line item unit price construction data provided the highest level of verifiable and transparent information.  Since other levels or types of cost estimating can’t meet this level, care should be given as to what form of cost data is being use.   Other, less stringent forms of cost estimating include the following: national average line item cost data (with or without adjustment or localization factors), system or assembly level cost data, or building level and/or other forms of parametric cost data. liability insurance and allowance for small tools and consumables. Material costs are either

    Labor

    Based upon contract requirements, local labor costs may be sourced from published Davis Bacon Wage Rates, or published or researched local prevailing wage rates with appropriate inclusion markups for worker compensation, unemployment, liability insurance and allowance for small tools and consumables.  In the public sector contracts may require Davis Bacon Wage Rates or prevailing wage rates, or both, with the usage of the higher of the two.   Markups include worker compensation and unemployment per state in which work is performed. Liability insurance based upon local contractor rates is also added as a percentage. Finally, a percentage of labor is added for small tools and consumables based upon the labor category. The base rate does not include overhead and profit, however, can be added if needed. 

    In addition, highly specialized subcontract items may require travel and per-diem expenses for mechanics.

    The labor-hours expressed in this database are average Installation time, using an efficiency level that is consistent with the particular trade.

    Material Costs

    Material costs are local for commodities such as concrete, asphalt and aggregate. Other material costs are based upon either local costs, national or regional costs. Many items that are researched do not vary nationally due to the national pricing by many vendors and manufacturers. Some costs are regional and are priced for large areas of the country such as western, central and eastern states. Depending upon each contract, the best pricing is provided for the needs of the customer. If regional or national prices are used, these are checked against local pricing to assure that the local costs do not significantly vary. Material costs are either local, regional or national depending upon the location. Sales tax is generally not added unless requested.   Material prices must consider local areas as remote areas or congested inner-city regions can cause significant variance.   

    Equipment Costs 

    Equipment costs are either local rates or a national rate for each piece of equipment used in crews performing the task based upon daily usage. Overhead and profit markups are not included in the pricing, but can be added electronically to the database as needed.
      

    General Conditions

    General overhead and profit can be added by percentage if desired. The rate added is up to the client. This can be done electronically. In addition, some general provision items are included in Division 1 that can be added to the estimate such as construction trailers, cleanup and temporary power.
     

    Costs can vary depending upon a number of variables. Here’s how we have handled the main factors affecting costs.
     

    Quality / Quantity

    The prices for materials and the workmanship are based upon normal construction standards. Many material prices can also be adjusted for quantity as an adjustment factor in the database.   The are provided in the form of line item modifiers.  Modifiers are add or deduct cost from the parent line item.

    via Four BT, LLC, the AEC industry’s innovative integrated project delivery, detailed locally researched construction cost data, and SAAS technology solutions provider. Integrating powerful, proven project planning, procurement, and execution methods to help guide organizations to achieve accelerated improvement of their facilities repair, renovation, and construction outcomes. We focus upon supporting a collaborative culture and client-specific programs centered upon delivering customer value, driven by, proven LEAN processes, actionable data, enabling cloud technology, ongoing training, and continuous improvement.