Best Value FM

Best Value FM – Public sector real property owners and FMers must transform their operations relative to planning, procurement, project delivery, and oversight.

Best value FM will remain an elusive goal for public sector real property owners until a transformation of basic management practices takes place.

Best Value FM

The path to best value facilities requires competency in both life-cycle total-cost-of-ownership asset management and LEAN construction planning, procurement, and project delivery. Both require higher levels of leadership, commitment, and competency that previously available. Until transformation to best value FM occurs, however, rampant economic and environmental waster will remain the norm.

Core tenants of best value facilities management

  • Owner leadership, commitment, and competency
  • Best value procurement
  • LEAN construction planning, procurement, and project delivery
  • Long-term, mutually beneficial team relationships among owners and service providers
  • Team focus upon outcomes
  • Shared risk/reward
  • Locally researched detailed unit price line items descriptions and associated granular cost data
  • Enabling collaborative technologies

via Four BT, LLC, the AEC industry’s innovative integrated project delivery, construction cost data, and SAAS technology provider. providing powerful, proven solutions for efficient project planning, procurement, and execution.  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. www.4bt.us

job program development, JOC Program Development

JOC Program Development

JOC Program development involves a strategic analysis of current and planned capabilities and a clear definition of desired outcomes.

For most public sector real property managers, and facilities management teams, JOC Program goals include the consistent delivery of quality repair, renovation, and new construction projects on-time and on-budget, in full compliance with applicable regulations.

Achievement of these goals in a timely, consistent, and cost effective value manner involves becoming aware of LEAN best value construction planning, procurement, and project delivery processes and available tools.

JOC Program Development
JOC Program Development

The unit price book, UPB, is one of the most important tools beyond introductory and ongoing training. A properly developed UPB is central to improving and adequately communicating scope of work for projects, reducing the number of change orders, and assuring satisfactory outcomes for all participants and stakeholders.

Whether your JOC Program is about to expire, our you are implementing JOC for the first time, it is critical that procurement and facilities management teams thoroughly evaluate currently available JOC Program tools and services.

Innovative, lower cost, and higher productivity JOC solutions are now available. These tools enable transparent, compliant, and high performing JOC planning, procurement and project delivery environments.

via – Four BT, LLC, the AEC industry’s innovative integrated project delivery, construction cost data, and SAAS technology provider. providing powerful, proven solutions for efficient project planning, procurement, and execution. 

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. www.4bt.us

Improved Construction, Repair, Renovation, and Maintenance Outcomes

Delivering Improved Construction Repair Renovation and Maintenance Outcomes

Delivering improved construction repair, renovation, and maintenance outcomes isn’t rocket science.

All the tools and services are readily available to facilities management teams, once leadership provide the commitment to support stewardship of the the built environment.

Most organizations are mired in the ‘status quo’ of archaic and inefficient methods and personnel who refused to accept change. Without management leadership and support for efficient life-cycle asset management, rampant economic and environmental waster will remain the norm for most.

Nonetheless, a small, but growing number of real property owners and facilities management teams have embraced changing to integrated LEAN construction planning, procurement, and project delivery processes. While change is gradual, the benefits of consistent delivery of quality project outcomes on-time and on-budget have been proven.

LEAN construction planning, procurement, and project delivery (LCPPP) methods integrate PEOPLE, PROCESS, INFORMATION, and TECHNOLOGY, and provide a clear and consistent approach the achieving full cost visibility and well-defined, shared project goals.

Traditional methods for planning, cost estimating, procurement, and project delivery are incapable of driving mutually beneficial optimal outcomes. LCPPP provides a clear and consistent approach across program and project life-cycles, with well define roles, responsibilities, information environments, and workflows:

LCPPP – Planning – Procurement – Project Delivery Methodology

Planning – Owner conceptualizes need, budget, and appropriate project delivery method

Mutual Scope of Work Development-Owner and service provider schedule joint site visit and mutually develop a scope of work.

Builder supplies a detailed line item scope of work and proposal developed from an approved, locally researched unit price book

Owner reviews and approves work, or discusses required changes, or rejects proposal.

Project kick-off meeting

Mobilization and project Execution

Regular owner inspections

Builder provide notice of substantial completion

Owner conducts final inspection or creates a punch list.

Project close-out

Target, Communicate, Validate, Detail, Execute, Improve

At each stage we will:

Set Robust Baseline to Optimize Execution and Expenditures – Validate requirements and unit price detailed cost early in the process

Continuously Improve – Empower those doing the work to optimize design and daily work.

Trust But Measure – Select appropriate services resource(s) for the project and put appropriate and robust controls in place.

Communicate clearly, concisely, and continuously – Require collaboration among all participants and stakeholders, define a common data environment(CDE) and tool set, Track work stages are appropriate levels.

via Four BT, LLC – The AEC industry’s innovative integrated project delivery, construction cost data, and SAAS technology provider. providing powerful, proven solutions for optimize project planning, procurement, and execution.

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.

Uncategorized

EO – Expediting Infrastructure Investments

EO – Expediting Infrastructure Investments

Integrated construction planning, procurement, and project delivery can not only expedite infrastructure repair, renovation, and construction, but do so cost effectively!

https://www.whitehouse.gov/presidential-actions/eo-accelerating-nations-economic-recovery-covid-19-emergency-expediting-infrastructure-investments-activities/

#construction #construction #facilitiesmanagement #leanconstruction #ipd #constructionprojects

BEST VALUE CONSTRUCTION DELIVERY

TEAMS and BEST VALUE CONSTRUCTION DELIVERY

Teams are critical to best value construction delivery.

  1. Real property owners are dependent upon internal and external teams to better optimize facilities repair, renovation, maintenance, and new construction
  2. Someone has to LEAD and continuously IMPROVE how these teams interact.
  3. Technology plays a role, however, robust integrated LEAN planning, procurement, and project delivery processes drive day-to-day activities and outcomes.

Integrating People, Process, Information, and Technology optimally is not complex. It does, however, require a change from traditional practices. Those involved work toward mutually beneficial outcomes within a fully transparent environment.

BEST VALUE CONSTRUCTION DELIVERY
BEST VALUE CONSTRUCTION DELIVERY

Robust tools and services are readily available to support the consistent delivery of quality repair, renovation, and new construction projects on-time and on-budget.

Is your organization ready to change?

Uncategorized

LEAN IDIQ = Public Sector Construction Productivity Gains

Traditionally, the primary if not sole benefit of IDIQ contracting and project delivery has been reducing the time from planning to construction. With the availability of LEAN integrated IDIQ procurement and project delivery solutions, benefits including the consistent completion of quality projects on-time and on-budget and in full compliance.

Indefinite Delivery/Indefinite Quantity (IDIQ) is a form of procurement. A type type of contract that enables the procurement of an indefinite quantity of supplies and/or services whose performance and delivery scheduling is determined by placing Work Orders. When associated with construction, one or more awarded construction contractors may be involved. Job Order Contracting (JOC) is one of several types of IDIQ contracting frameworks. Furthermore, JOC can be tailored to meet organizational and performance requirements, with LEAN JOC providing the most advantageous outcomes for all participants and stakeholders. Similarly there are alternative forms of LEAN IDIQ and LEAN integrated project delivery (IPD).

LEAN IDIQ and LEAN JOC can be used for repair, renovation, maintenance, and new construction. Used properly, both eliminate the need to complete a full traditional procurement cycle for each new project. That said, there are multiple phases and check and balances to assure best value, financially transparent and compliant outcomes.

The following characteristics and components are shared by LEAN IDIQ, LEAN JOC, and Integrated Project Delivery.

  • Focus upon best value outcomes for all participants and stakeholders
  • Mandatory early and ongoing collaboration
  • Best value procurement
  • Integrated planning, procurement, and project delivery environment
  • Common data environment, including a locally researched detailed unit price book (UPB)
  • Written operations manual or execution guide as part of the multi-party agreement defining roles, responsibilities, outcomes, work flows, etc.
  • Mutual trust/respect
  • Shared risk/reward
  • Performance-based reward system
  • Longer-term relationships
  • Life-cycle cost goal versus first cost consideration only
  • Enabling technology

Via Four BT, LLC (www.4bt.us) the AEC industry’s innovative integrated project delivery, construction cost data, and SAAS technology provider. providing powerful, proven solutions for efficient project planning, procurement, and execution. 

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.

Contact us to learn…

· What types of construction and maintenance projects are best suited for each of the different IDIQ award procedures?

· What are the time, cost, and risk implications associated with each of the IDIQ procedures?

· What are the advantages and disadvantages of each of the different IDIQ procedures?

Collaborative Construction and FM

Building in Cloud – Collaborative Construction and FM Planning, Procurement, and Project Delivery

Collaborative Construction and FM Technology
Designers, Planner, Facilities Management, Engineers, and Builders;

Building in Cloud is an innovative and powerful digital platform for AECOO collaboration, available as a free service, and via paid subscription (for advanced features and capabilities).

The platform many free features and can be used by teams of all sizes. Paid versions allow integration with professional tools. such as BIM, and offer advanced features such as the Common Data Environment and Facility Management, and Integrated Project Delivery (including LEAN Job Order Contracting).

Structured collaboration of the work group allows the administrator to give each team member access to information and functions related to the their roles and activities.

Document Management within Building in Cloud allows you to manage all the information connected to it (metadata), not just the document content, including version, status, upload date, etc.,

BIM Model Integration, also in a federated form, allows you to keep information connected to models, driving significant time savings and the reduction of the risk associated with the inability to access current actionable information.

Managing tasks and issues through a dashboard saves a lot of time and gains complete control over  requirements and schedules. 

Building in Cloud Free Version
-Building, Team and Document Management
-BIM & DWG viewer
-Manage and assign issues and activities
-Reporting tools
-Space & Asset Management
Encrypted with SSL protocol
-2 GB storage space
-2 Building / Projects
-5 Users

Project Management
Measurably improve your organization’s construction project management activities with Building in Cloud’s powerful tools.

Manage project teams
Internal and external team members gain instant authorized access to current information to share and manage tasks and solve problems.
Administrators can easily add new team members and define information access rights at the project or building level.
Building in Cloud allows authorized team members to access and share documents, manage tasks, or troubleshoot.
Administrators can easily add new members to the team, define access privileges by differentiating them for each project or building.

Activity & Issue management
 Create and assign tasks to any member of a team. Request an specific action such as uploading a file or photo, for the task be closed. Tasks can be connected to any entity within Building in Cloud, from a document to a component in the ventilation system.
You can create and assign tasks to any member of a team. Require action to be taken such as uploading a file or photo so that it can be closed. Activities can be linked to any entity within Building in Cloud, from a document to a ventilation plant component.


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

Document Management
The Document Management module lets you manage and share files, while keeping a record of all reviews and uploaded documentation throughout the entire life-cycle of the building.
Upload and share documents and make them available to your whole team – including PDF, Word and Excel files, images and videos.
View and analyse data from BIM models (RVT and IFC formats) directly from your browser without the need to purchase expensive software.
Instant access to drawings using Building in Cloud built-in DWG viewer.

Asset Information Model
Building in Cloud lets you keep track of multiple asset classes: office equipment, furniture, laboratory equipment, facilities, etc..
Assets and components are easily imported into your building from BIM models, from excel files or manually.
This makes it easy to manage assets and components throughout their full life-cycle.
Add notes, technical specifications, pictures, documents or assign a task, or issue notifications.

Reports
Building in Cloud enables you to create a wide range of reports, allowing you to have greater visibility into the status of your projects, properties and their components.
Reports are available as downloadable PDFs or as spreadsheets.

Dashboards
Building in Cloud has built-in personalized dashboards that allows you to monitor the status of your activities/issues and of those assigned to internal and external team members.

Learn more…
Public Sector Facilities Management, Public Sector Lacks efficient Facilities planning, design, procurement, and project delivery capability

Federal Public Sector Lacks efficient Facilities Planning, Design, Procurement, and Project Delivery capability

Early planning, design, and procurement stages influence cost, timing, quality, and overall repair, renovation, maintenance and new builds, and are critical to achieving optimal outcomes.

Federal public sector continues its legacy of economic and environmental waste ,

Nonetheless the vast majority of public (and private) facilities management professionals continue to rely upon archaic and inefficient methods.

As a result, the public sector continues its legacy of economic and environmental waste.

For example, not a single Federal sector department or agency, from the GSA to the USACE has, let alone requires, an optimal, organization-wide policy of using proven LEAN construction planning, procurement, and project delivery methods or even current verifiable, locally researched cost data bases. The latter are fundamental to verifying contractor quotes and creating internal government estimates (IGEs).

Thus, not a single Federal department or agency has a fully transparent view of financial needs, The ability to optimize associated repair, renovation, and new construction programs and projects, critical to efficient facilities life-cycle management, will remain an unmet Government mandate.

Learn about LEAN construction planning, procurement, and project delivery.

Best Value Facilities Operations and Maintenance

Best Value Facilities Operations and Maintenance Management Practices

Lean construction planning, procurement, and project delivery is critical in attainment of best value facilities operations and maintenance management.

Innovative, yet proven tools and services are readily available to help any real property owner…

  • Better quantify an satisfy needs with increased speed and accuracy
  • Lower procurement costs while assuring on-time, on-budge, quality service delivery
  • Continuous monitor and improve procurement activities
  • Improved short and long term decision making
  • Apply available funds on earned value projects versus administrative costs and/or change orders
  • Cross-functional collaboration with internal and external teams
Best Value Facilities Operations and Maintenance

Via Four BT, LLC – www.4bt.us –

Four BT, LLC (4BT) is the AEC industry’s innovative integrated project delivery, construction cost data, and SAAS technology provider. providing powerful, proven solutions for efficient project planning, procurement, and execution. 

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.

LEAN Life-cycle Management of the Built Environment

LEAN Life-cycle Management of the Built Environment

LEAN Life-cycle Management of the Built Environment is a robust, collaborative approach integrating planning, design, acquisition, operation, maintenance & disposal. Planning, procurement, and project delivery of all related repair, renovation, maintenance, new construction, and disposal requirements can be measurably improved via the implementation of proven, and readily available solutions.

The key to improving life-cycle management of the built environment is improvement in owner leadership and competency and change from current archaic and inefficient processes.

Coming together is a beginning, staying together is progress, and working together is success.

Henry Ford
LEAN Life-cycle Management of the Built Environment
Request a Free eBook – Guide to Lean Construction
Best Value Facilities Management

Best Value Facilities Management – LEAN Renovation, Repair, and Construction Planning, Procurement, and Project Delivery

Whether you are a real property owner, facilities management professional, architect, engineer, or builder, it is important to understand your organization.s progress towards best value facilities management and its location on the journey toward LEAN construction planning, procurement, and project delivery.

Best Value Facilities Management

Do you know how to move forward and at what pace? What tools and services can best support your organization?

Whether you are new to LEAN processes such as integrated project delivery and job order contracting, or are a current practitioner looking to reach the next level, a third-party assessment is a valuable tool. It can help you achieve valuable insight into the next phase of your journey.

We can evaluate the current state of your LEAN process adoption initiative to see if your objectives are being met, and help you plan for the future. Let us help you to determine if you are following best management practices that will enable your organization to reach its desired destination.

Contact Us
Best Value Facilities Management

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Why LEAN Construction Matters

Why LEAN Construction Matters

The answer to why lean construction matter includes…

 

  • Owner experience, qualifications, and capability
  • Magnitude, form, function and complexity of facilities/built environment repair, renovation, maintenance, and new construction
  • Establishing the project timelines
  • Fast-tracking priority requirements
  • True financial visibility and transparency
  • Measurably improving financial, environmental, and quality outcomes as well as overall satisfaction for participants and stakeholders

Robust tools and services are readily available to support LEAN construction planning, procurement and project delivery.

For example, the OpenBUILD Solution (TM) supports LEAN procedures and components associated with conceptualizing, designing, budgeting, and building. An environment in which projects are organized and put together in a way that results in more on-time, on-budget outcomes. It is a collaborative approach with owner leadership organizing not just a project team, but a PROGRAM team. Relationships based upon value, performance, mutual trust/respect, and shared risk/reward.

 

Best Value Pre-Construction Tools and Services

Best Value Pre-Construction Tools and Services… and more

Using the right pre-construction tools and services is important to early and ongoing information sharing and obtaining mutually beneficial best value outcomes.

Robust LEAN construction planning, procurement, and project delivery processes provide a proven way to improve pre-construction stages as well as the full life-cycle from concept through completion and beyond.

LEAN pre-construction services define the following stages of a repair, renovation, or new construction project life-cycle:

  • Project Conception
  • Project Delivery
  • Design
  • Construction Documents
  • Bidding/Negotiating/Procurement
LEAN Construction Planning, Procurement, and Project Delivery
Improve Productivity 20%-50%

via Four BT, LLC – www.4bt.us – Four BT, LLC (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.

Efficient Life-cycle Management of the Built Environment, Public Sector Efficient Life-cycle Management of the Built Environment

Efficient Life-cycle Management of the Built Environment – An Elusive Goal in the Public Sector

“Coming together is a beginning, staying together is progress, and working together is success.”

Henry ford

Efficient life-cycle management of the built environment in the public sector has remained an elusive goal. It is also a regularly mandate that has simply not been met by most Federal, County, State, and Local Governments.

The process is well defined and requires a process focused environment and associated robust information management and decision-support capabilities.

While technology vendors (BIM, CMMS, CAFM, IWMS…) often claim to have solutions, Technology isn’t the solution. The reality is that fundamental process change is the only path to significant improvement with respect to physical asset life-cycle management.. The barrier is a simple one. Organizations are being limited by internal managers and “experts” that are mired in the past. Individuals that seek to perpetuate their own “success” by “kicking the can down the road”. These are no ignorant professionals, They are, however, self-serving, and have no qualms about putting their career goals ahead of those of their organizations, or most importantly, ignoring their responsibilities to taxpayers.

Robust collaborative, LEAN planning, procurement, and project delivery methods have existed for decades that can drive productivity gains ranging from 20% to 50%+. They are now available with fulls suites of tools and services. Implementation of these capabilities has been limited to less than five percent (5%) of public sector real property owners, with and even smaller group doing so “properly” and/or on a consistent organization-wide basis.

Failure to adopt these proven processes in support of efficient stewardship of the built environment should surprise anyone. The GAO has issues multiple reports on the topic over the past forty (40) years. The significant negative economic and environmental impacts has been well documented.

The timing as to when public stewardship of the built environment will occur remains an unknown. Until then, collaborative, efficient planning, procurement, and project delivery solutions will remain largely unused. Integration of people, processes, information, and enabling technology will remain a dream as will financial transparency and sound financial management.

via Four BT, LLC – www.4bt.us – Four BT, LLC (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.

References::


Best Construction Cost Estimating Solution

Best Construction Cost Estimating Solution

Here is a recommended list of considerations if you are seeking the best construction cost estimating solution for your organization.

  • Collaborative environment – Even if there is only one estimator, it is critical to share current, actionable information with multiple internal and external parties.
  • Integral locally researched detailed line item construction cost database – Having a current, open, locally researched detail unit price cost database is critical. National average cost databases (with or without cost factors), and/or historical costs simply are insufficient.
  • Document Management – Version control, inclusive of document check-in/check-out is a must for assuring everyone is working the right information at the right time.
  • Workflow Management – Process is “king”. Having a LEAN workflow associated with estimates throughout a project life-cycle brings consistency and quality to the process.

All of the above and more are exclusively available within the 4BT OpenBUILD (TM) suite of solutions. Change how you do business, starting today!

  • Instant access anywhere, anytime – Programs, Contracts, Bid/Proposals/Estimates, Status, Workflows, Projects, Documents, Issues/Tasks, Buildings, Components, Spaces, Reports, Approvals, Forms, Teams, Internal Messaging (no emails!), and Detailed BIM Information.
  • Logical, easy-to-use, yet powerful
  • Word and tree search
  • Create more competitive bids
  • CSI Masterformat licensed
  • Locally researched cost database – labor, material, equipment crew, productivity information – all editable.
  • Process driven – no reliance upon ad-hoc processes and spreadsheets
  • Automated estimate comparisons
  • Owner and contractor notes/comments
  • Ability to create WBS
  • Paperless estimating
  • Copy/paste projects and estimates
  • Manage multiple cost databases
  • Produce audit-worthy estimates in a fraction of the time
  • Export to PDF, Excel, and SQL data access
  • Create, monitor, manage and leverage actionable, verifiable construction cost estimates more efficiently
Learn more…

via Four BT, LLC – www.4bt.us – Four BT, LLC (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.

Federal Facilities Mismanagement

Public Sector Facilities Stewardship

Since 1986 the GAO has tried to improve public sector facilities stewardship and fundamental management practices. To date, a critical lack of leadership and capability remains a fundamental problem.

Public sector facilities stewardship, optimizing the capital reinvestment and best value outcomes associated with the planning, procurement, and project delivery of repair, renewal, or new construction of physical structures, has proven problematic for public sector real property owners.

For decades, federal and other public sector real property owners had little actionable information as to the inventory and condition of their real property assets. While far from compete, most public departments and agencies now have some idea as to their deferred maintenance levels and some capability to prioritize those needs on a project basis.

Nonetheless, not a single federal department or agency has a formal and consistently deployed integrated LEAN process to enable the on-time, and on-budget, best value delivery of quality repair, renovation, maintenance, and new construction projects, Key missing elements, as partially outlined below, make it impossible for a single federal public sector owner to provide requisite levels of financial visibility and assure available funds are spent efficiently.

GSA routinely…. does not report the projects’ final costs or how much project costs and schedules were revised

GAO Report – 2019

CRITICAL ISSUES WITH FEDERAL FACILITIES MANAGEMENT AND STEWARDSHIP

  • Failure to provide leadership to drive requisite change management
  • Failure to use locally researched detailed unit price cost data to provide true cost visibility
  • Failure to consistently require and implement LEAN best value construction services planning, procurement, and project delivery
  • Failure to educate, train, and continuously government facilities management teams and oversight groups …

The GAO has issued multiple reports on this topic over the past thirty (30) years, yet resolution of these issue remains elusive at the economic and environmental expense of us all.

Tools, support services ,and technology are now readily available to resolve many of these issues. ALl that is required is capable leadership. The public sector must stop viewing the built environment as a commodity and simply a cost. We can no no longer afford to have public sector facilities professionals act in reactive rather than proactive ways. .

Collect, share, study, evaluate, and deploy innovative, yet proven, best management practices to maximize the efficiency of facilities renewal, maintenance, or new construction activities.

REFERENCES:

GAO Report – Automated Operations, Maintenance and Facility Management]
Published: Nov 13, 1986. Publicly Released: Nov 13, 1986

GAO Report – Facilities Management Reorganization Is Progressing, but Funding Remains a Challenge
GAO-05-369: Published: Apr 25, 2005. Publicly Released: May 25, 2005

GAO Report – Actions Needed to Improve Poor Conditions of Facilities and Equipment That Affect Maintenance Timeliness and Efficiency
GAO-19-242: Published: Apr 29, 2019. Publicly Released: Apr 29, 2019

GAO Report – More Consideration of Operations and Maintenance Costs Could Better Inform the Design Excellence Program
GAO-18-420: Published: May 22, 2018. Publicly Released: May 22, 2018

GAO Report – GSA Can Improve Its Communication about and Assessment of Major Construction Projects
GAO-20-144: Published: Dec 12, 2019. Publicly Released: Dec 12, 2019

GAO Report – Substantial Efforts Needed to Achieve Greater Progress on High-Risk Areas
GAO-19-157SP: Published: Mar 6, 2019. Publicly Released: Mar 6, 2019

GAO Report – Billions Are Needed for Repairs and Alterations
GGD-00-98: Published: Mar 30, 2000. Publicly Released: Apr 11, 2000

GAO Report – GSA Should Establish Goals and Performance Measures to Manage the Smart Buildings Program
GAO-18-200: Published: Jan 30, 2018. Publicly Released: Jan 30, 2018

GAO Report -Improved Transparency and Long-term Plan Needed to Clarify Capital Funding Priorities
GAO-12-646: Published: Jul 12, 2012. Publicly Released: Aug 2, 2012.
HIGHLIGHTSRECOMMENDATIONSVIEW REPORT (PDF, 48 PAGES)

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Uncategorized

Lack of Trust has Doomed the Construction Sector

LEAN Construction Planning, Procurement, and Project Delivery

One thing is for certain, no one can solve a problem without asking the right questions.

The rampant economic and environment waste, common within the AECOO sector (architects, engineers, builders, operators, and real property owners and facilities managers…) can not be resolved with technology.

Significant improvement throughout the AECOO sector first requires an understanding of the fundamental causal factors. Only then will organizations be able to develop and deploy solutions.

The Problem

There is a is a lack of leadership, professionalism, and trust across all AECOO participants and stakeholders. The problem, both in the AECOO sector and unfortunately growing in society as a whole, is that people are finding in more and more difficult to rely upon “professional judgement” .

This is due to the fact that society tends to now rely upon testing, prescriptive rules, and other onerous “objective” measures in lieu of experience-based knowledge. and proven concepts This issue is far more pronounced throughout the AECOO sector due to three factors, 1.) the growing shortage of experienced workers, 2.) prejudice towards supporting the ‘status quo’, and 3.) a focus upon “command and control” versus leadership.

… the aspect of productivity that needs serious attention is not the mechanical output of a production facility; it is, rather, the capacity of the organisation to satisfy customer needs most fully with whatever resources it has at its disposal … But mechanical notions of productivity lead often to product that meet ever more refined minimum standards, frequently resulting in a decline in customer satisfaction with them. The former thrust calls out for innovation—indeed, for innovative thinking on every level of the organisation’s affairs—while the latter confines innovation to a marginal and unexciting role.

– Kanter, R.M. (1983) The change masters. New York: Simon & Schuster.

Excessive command and control is a root cause of failure, and contrary to the foundational principals of leadership. Most of us have elected to become “managers”, that is, telling people what to do. The trend has been nothing short of corrosive to the goal of obtaining best value outcomes. Leaders, on the other hand, provides people with tools and resources to those actually doing the work, and empower them to leverage their expertise. Integrating the multi-discipline experience and capabilities of those actually doing the work is the path to best value construction planning, procurement, and project delivery. Anything short of this could be viewed as a fools errand.

LEAN construction planning, procurement, and project delivery philosophy, tools, and services support empowering the judgement skills of professionals actually doing the work. Unlike design-bid-build and all other “traditional methods”, including design-build, LEAN methods such as integrated project delivery and LEAN job order contracting focus is upon achieving mutually beneficial outcomes for all participants and stakeholders.

via Four BT, LLC – www.4bt.us – Four BT, LLC (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 centered upon delivering customer value, supported by proven LEAN processes, actionable data, enabling cloud technology, and ongoing training.

Uncategorized

The Value of Locally Researched Line Time Construction Cost Data

Despite the value of actionable locally researched line item construction cost data, few real property owners in the public or private sector consider the need for improvement.

Far too many owners and facilities oversight groups rely upon historical costs and/or national average cost data. Historical cost data must be used cautiously for two reasons. First, relative prices for construction can change dramatically over time and have substantial impacts.. Secondly, there is the invalid assumption that historical costs reflect local market conditions and/or best value outcomes. National average cost days similarly doesn’t take into account local variations in labor, material, and equipment. The attempt to remedy this significant issue with location factors or indices is problematic and introduces gross errors.

Actionable cost data is critical for successful …

  • Forecasting cost of future projects
  • Comparison of cost of different projects
  • Establishing unit rates for tasks / work orders
  • Monitoring and controlling of construction cost
  • Design cost planning

Detailed line item unit price cost data is critical to both accurate costing and scope of work definition. Until now, locally researched detailed unit price cost data that provides full and open access to material, labor, equipment, crew, and productivity information has been unavailable.

The advent of locally researched detailed unit price cost data also enables the implementation of LEAN, best value construction planning, procurement, and project delivery processes that have proved to consistently enable quality project completion, on-time, and on-budget, and to the satisfaction of all participants and stakeholders.

 

via Four BT, LLC – Four BT, LLC (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 centered upon delivering customer value, supported by proven LEAN processes, actionable data, enabling cloud technology, and ongoing training. www.4bt.us

Uncategorized

Improving Construction Planning, Procurement, and Project Delivery

INTRODUCTION

Significant improvement across the AECOO sector (architecture, engineering, construction, operation, owner) requires an understanding of the critical parameters. Improving construction planning, procurement, and project delivery involves consideration of core “competencies”, “process”, “efficiency”, and “technology”. Or, put another way, People, Process, Information, and Technology.

Construction Planning

Competencies

Competencies, skills, education, operational expertise, process awareness, and outcome focus are key focus areas. Training and organization-wide communications in support of LEAN construction planning, procurement, and project delivery are mandatory in order to achieve continuous improvement.

Process

Strategic  alignment  (links  between  operational  performance  and strategic factors), and profitability/cost control and/or resource maximization are initial area of focus and should be regularly monitored. Clearly defined, roles, responsibilities and outcomes in written format (operating manuals and/or execution guides) and associated long-term multi-party agreements help to assure initial and ongoing consistent application of processes and associated workflows.

Efficiency

Operational  input/output  measurements  such  as  productivity,  volume, lead-time, flexibility, amount of work-in process, and quality. Key performance indicators (KPIs) and regular independent third-party audit are important tools. That said, the use of “benchmarking”, i.e. comparison to peers, is problematic and at best should relative performance, versus target levels.

Technology

Appropriate technologies  and  tools to support support established processes and workflows and are not a “driver”. Far too often, technology is viewed as a solution. The most glaring example is BIM. BIM is not a solution, but a tool. With respect to collaborative lean construction planning, procurement, and project delivery, the following list of capabilities/tools are generally considered important:

  • Program Management
  • Contract Management
  • Project Management
  • Proposal/Bid/Estimate Management
  • Workflow Management
  • Document Management
  • Issues/Task Management
  • Building Management
  • Team Management (Internal and External)
  • Space Management
  • Component Management
  • BIM Information Integration
  • Locally researched detailed unit price cost data

via Four BT, LLC – Four BT, LLC (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 centered upon delivering customer value, supported by proven LEAN processes, actionable data, enabling cloud technology, and ongoing training.

“Coming together is a beginning, staying together is progress, and working together is success.”

Henry Ford

Line item construction cost estimating

Line Item Construction Cost Estimating – 2020 and Beyond!

Detailed line item construction cost estimating is a prerequisite to obtaining best value outcomes for facilities / built infrastructure repair, renovation maintenance, sustainability, and new construction projects. While there is certainly value in parametric, building level, and/or square foot estimating for budgetary considerations, they are not appropriate for LEAN construction services procurement and project delivery. (see LEAN construction guide)

Best value, LEAN construction planning, procurement, and project delivery requires the ability to create and adequately communicate a detailed scope of work to all participants and stakeholders on an early and ongoing basis, throughout the project life-cycle. A locally researched detailed line item construction cost estimating database plays a key role in this regards. Each task is described in plain English and organized using CSI Masterformat. Each line item is associated with a unit of measure and includes labor, material, equipment, and crew information. With quarterly labor updates and annual general updates, a locally researched detailed line item unit price book is basically a mandatory component in an LEAN planning, procurement, and project delivery environment, and the foundation for best value outcomes for all participants and stakeholders.

LEAN Construction Planning, Procurement, and Project Delivery & Detailed, Locally Researched Line Item Construction Cost Data

  • Lean construction planning, procurement, & project delivery is a Philosophy, Program, and a Way of Life…. not a one time project.
  • View each project as an integration of People, Process, Information, and Technology, with a primary focus upon mutually beneficial, client-driven, best value outcomes.
  • Transparently share information on an early and ongoing basis among all participants and stakeholders within a common data environment – goals, detailed requirements and costs, schedules.
  • Leverage technology for document management (assure everyone is working on, and has immediate access to the right information and the current version), as well as managing Programs, Contracts, Bid/Proposal/Estimates, Projects, Work Orders, Reporting, Schedules, Approvals, Tasks/Issues, Buildings, Components, and BIM information.
  • Detailed quantities
  • ……
Line Item Construction Cost Estimating

via Four BT, LLC – and construction outcomes through the development of  a culture centered upon delivering customer value, supported by proven LEAN processes, actionable data, enabling cloud technology, and ongoing training.

Uncategorized

Building Life-cycle Costs and Physical Asset Total Cost of Ownership Management (TCO)

Creating and monitoring building life-cycle costs is a key component of physical asset total cost of ownership management

  • Initial Costs—Purchase, Acquisition, Construction Costs
  • Operation, Maintenance, and Repair Costs
  • Replacement, Renovation, Adaptation Costs
  • Disposal / Recycling Costs
  • Cost of Capital

Initial design, procurement, and construction costs of a facility account for only 10%-20% of total capital expenditures throughout its useful life. The efficient management of both initial and ongoing repair, renovation, maintenance, replacement, and operational costs requires the integration of people, processes, information, and technology across multiple “business domains”, skills, and activities.

Life-Cycle Cost Calculation

Calculating the life-cycle costs for a facility involves identifying all relevant costs, such as initial/investment costs, operational, maintenance, and repair costs, replacement, renovation, adaptation costs, and disposal costs, in there appropriate years and running an associated net present value (NPV) calculation.

Life-cycle Cost =  I + PV RECURRING COSTS (operations, maintenance, energy, repair, renovation, etc.) + PV DISPOSAL COST – PV Residual Value

In most cases it helpful to separate the building/structure into major systems and run life-cycle costs individually bases upon materials and equipment used. Uniformat category and or major assembly information is likely available if a detailed condition assessment has recently been done for an existing building, otherwise information is created for new structures.

Uniformat II Classification for Building Elements / Systems:

Substructure – Foundations / Basements

Shell – Superstructure / Exterior Enclosure / Roofing

Services – Conveying / Plumbing / HVAC / FIre Protection / Electrical

Demolition

Value

Life-cycle cost is critical to sound financial planning and associated physical asset decision-making. For example, how can a building a real property portfolio owner make capital reinvestment decisions for a particular facility, such as extending its useful life or replacing it with a new facility, without knowing is current liabilities and estimated life-cycle costs?

Tables of Average Service Life / Years

Air Conditioners

Window Unit 10

Split Package 15

Commercial 10

Water-Cooled Package 20

Computer Room Unit 15

Air Handling Units

Built-Up Heavy Duty 30

Packaged Medium-Duty 25

Severe Duty or 100% Outside Air 20 3

Heat Pumps

Residential Air-to-Air 12 b

Commercial Air-to-Air 15 c

Commercial Water-to-Air 18

Roof-Top Air Conditioners a

Single Zone 18 b

Multizone 18

VAV 20

Boilers, Hot Water

Steel Water-Tube 30

Steel Fire-Tube 30

Cast Iron 30

Electric 25

Condensing 15 6

Boilers, Steam

Steel Water-Tube 28

Steel Fire-Tube 25

Cast Iron 30

Furnaces

Gas Fired 18

Oil Fired 18

Condensing 15

Unit Heaters

Gas 13

Electric 15

Hot Water 20

Steam 20

Heaters

Electric Radiant or Convector 10

Radiant Hot Water 25

Radiant Gas 18

Steam or Hot Water Convector, Cast Iron 50

Steam or Hot Water Fin Tube 15

via Four BT, LLC – Four BT, LLC (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 centered upon delivering customer value, supported by proven LEAN processes, actionable data, enabling cloud technology, and ongoing training.



Construction Transformation

Construction Transformation

The proven path to efficient construction delivery.

Construction Transformation to LEAN Planning, Procurement, and Project Delivery offers the promise of significant productivity gains.

The benefits of early and ongoing collaboration and LEAN associated planning, procurement, and project delivery have been proven for decades, and the benefits are widely accepted. That said, true awareness of associated competencies, practices, tools, and services required for implementation remains limited.

THE CRITICALITY OF SCOPE OF WORK

LEAN construction planning, procurement, and project delivery is simple in concept, yet differs widely from traditional methods such as design-bid-build or design-build.

The adequate planning, development, refinement, and communication of a scope of work (SOW) is critical to the success of any repair, renovation, or new construction project. Participants and stakeholders must be involved in an early and ongoing process. Yet, many if not most SOWs are inappropriately prepared and inadequately communicated.

SOWs are just one component defined within a LEAN environment.

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LEAN Job Order Contracting, LEAN Job Order Contracting, LEAN JOC

LEAN JOC – Job Order Contracting

INTRODUCTION

LEAN JOC (Job Order Contracting) is a robust integrated project delivery process for repair, renovation, maintenance, sustainability, and “minor” new construction. A LEAN JOC implementation integrates People, Process, Information, and collaborative Technology to consistently yield quality projects on-time and on-budget. Planning, procurement, and project delivery are all included with the LEAN JOC framework.

Public and private sector real property owners and facilities management professionals can leverage LEAN JOC to achieve more efficient use of existing capital resources in a fully transparent and compliant planning and operating environment.

Unlike technology offerings such as IWMS and EAM the LEAN JOC framework provides robust processes and workflows as well as a common data environment (CDE) inclusive of objective, actionable, and granular construction cost information. LEAN JOC provides all the tools and support services to support the associated level of change management to move organizations away from traditional inefficient, antagonistic, and basically ‘ad hoc’ methods.

A PROGRAM STRATEGY

Built environment repair, renovation, maintenance, and new construction has traditional been viewed with a “project mentality”, with an undue emphasis upon ‘first costs”. Effective life-cycle total-cost-of-ownership asset management calls for a ‘program strategy’. The difference between the two is both amazingly simple, yet incredibly difficult to grasp for many. A well-programmed project is path to best value, meeting the needs of owner and all participants and stakeholders from both environmental and economic perspectives.

A Program Strategy involves participants and stakeholders earlier in the planning stages. The approach invests more resources earlier in the Project life-cycle. Work scope is developed and communicated is more detail and more effectively, resulting in the avoidance of traditionally prevalent delays, change orders, and associated skyrocketing costs.

A Program Strategy supports developing, managing, and building long-term relationships that exclusively focus upon best value outcomes for all participants and stakeholders. This approach requires owner leadership and competency from a global oversight perspective, while at the same time empowering and leveraging the expertise of on-site individuals actually doing the work.

As with any integrated project delivery environment, LEAN JOC supports and drives early and ongoing communication among all parties… owners, facilities management, architects, engineers, builders, and building users.

Asset Life-cycle Total-cost-of-ownership (TCO) Management
www.4BT.us

TOOLS AND SERVICES

All of the tools and services required to implement LEAN JOC are readily available. It is not simply a LEAN “philosophy”, but a robust operating environment. Initial and ongoing training for all participants is a mandatory component of LEAN JOC components.

As the shift to a LEAN operating environment takes time, training incorporates a phased approach designed to support gradual adoption and improvement. This includes basic introductions to LEAN collaborative environments and associated JOC concepts, strategies, tactics, and tools for managing the planning, procurement, and delivery of repair, renovation, and new construction services. All of which support requisite physical and functional requirements as establish by the real property owner.

LEAN JOC

In addition to training, a suite owner-specific tools and services to support a LEAN JOC Program include:

  • A common data environment (CDE) – A glossary of clearly defined, common defined terms and definitions written in plain English. A detailed and locally researched line item unit price book, organized by CSI Masterformat, inclusive of labor, crew, productivity, material, and equipment specificity as well as demolition line items and line item modifiers.
  • A written Operations Manual / Execution Guide as part of a the associated multi-party contract, providing clear definition roles, responsibilities, data environment, and acceptable deliverables.
  • Regular third-party, objective Program Audits
  • Enabling collaborative technology embedding LEAN JOC process and providing: Program Management, Contract Management, Scope Management, Project Management, Proposal/Bid/Estimate Management, Work Order Management, Document Management, Work Flow Management, Authorization Management, Team Management, Building Management, Space Management, Component Management, Issues/Task Management, Phase Management, and BIM information Integration.
  • Key performance indicators (KPIs)

via Four BT, LLC – www.4BT.us – Four BT, LLC (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 ofa culture centered upon delivering customer value, supported by proven LEAN processes, actionable data, enabling cloud technology, and ongoing training.

efficiently perform ongoing facilities maintenance

How to efficiently perform ongoing facilities maintenance, repair projects and minor new construction projects!

The ability efficiently perform ongoing facilities maintenance, repair projects and minor new construction projects is available to all facilities management professionals and real property owners.

All of the necessary tools and services are readily available to maximize productivity and overall levels of satisfaction via LEAN integrated planning, procurement, and project delivery.

efficiently perform ongoing facilities maintenance

Both the 4BT OpenBUILD(TM) and 4BT OpenJOC systems incorporate the following within a collaborative, fully transparent, and compliant environment.

  • Program Management – LEAN is a program not a project. LEAN programs are tailored to owner requirements and are continuously monitored and improved.
  • Contract Management – Multi-year, multi-party agreements are established to support one or more Programs. A Operations Manual or Execution Guide and other documentation are components of the individual Contracts.
  • Bid/Proposal Management – Lean is based upon several core elements, including a common data environment and early and ongoing communication between participants and stake holders. A locally researched detailed unit price book is a requisite element for adequately communicating and costing scope of work. Joint site meeting, planning meeting, and kick-off meetings are also elemental.
  • Project Management – A project can consist of one or more work orders.
  • Work Order Management – A work order is generated when a proposal is accepted and scheduled. It’s progress is monitored throughout its life-cycle.
  • Document Management – Storing all information digitally is only part of the solution. Documents must be accesses and modified appropriately. Furthermore, version control is critical to avoid costly delays and/or mistakes. A full document management system that has “check_in” and “check_out” and maintains a record of all changes is critical.
  • Work Flow Management – LEAN processes yield major gains in efficiency and overall satisfaction, however, management and improvement throughout all phases is a must.
  • Building Management – A current record of all buildings/locations is the cornerstone for an efficient asset life-cycle total cost-of-ownership (TCO) program.
  • Asset/component management – Track and manage asset and location data throughout the asset life-cycle.
  • Procurement management – Best value procurement, integrated with planning and project delivery teams and activities is mandatory.
  • BIM Integration – Access to existing BIM information can be highly valuable throughout construction planning, procurement, and operations and maintenance.

Learn more?

Both integrated project delivery and OpenJOC(TM) job order contracting have proven to be capable of consistently delivering quality repair, renovation, and new construction project on-time and on-budget. Both LEAN processes integrate People, Process, Information, and Technology to yield significantly improved results over traditional methods such as design-bid-build, design-build, CM@R, etc.

via Four BT, LLC (4BT). 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 ofa culture centered upon delivering customer value, supported by proven LEAN processes, actionable data, enabling cloud technology, and ongoing training.

Facilities Services Procurement

Facilities Services Procurement Best Management Practices

Facilities services procurement best management practices consider and integrate core fundamentals and qualities.,,,

  • LEADERSHIP
  • FOCUS UPON BEST VALUE OUTCOMES
  • FINANCIAL TRANSPARENCY
  • COLLABORATIVE, MUTUALLY BENEFICIAL RELATIONSHIPS (internal and external to the organization)
  • DECISION-MAKING BASED UPON CURRENT and ACTIONABLE INFORMATION
  • QUANTITATIVE KEY PERFORMANCE INDICATORS
  • CONTINUOUS IMPROVEMENT

Procurement must have an early and ongoing “seat at the table” concerning facilities management strategies and programs. In fact, when it comes to LEAN planning, procurement, and project delivery, procurement should lead the way, working collaborative with facilities management , facilities users, and oversight groups.

Introductory and ongoing training specific to LEAN construction planning, procurement, and project deliver must be mandatory for procurement as well as facilities management, internal teams, and external service providers (architects, engineers, builders, business product manufacturers, consultants…).

“Coming together is a beginning, staying together is progress, and working together is success.”

Henry Ford

Existing tools and services are readily available to assist in the organization-specific design, deployment, and management of facilities services procurement best management practices. In some case, cooperatives may be appropriate as well, should annual services procurement be below $2-3Million in total. Workflows, documentation, roles, responsibilities, etc. must all be documented within an operations manual and/or execution guide, linked to associated contracts.

via Four BT, LLC – Four BT, LLC (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 ofa culture centered upon delivering customer value, supported by proven LEAN processes, actionable data, enabling cloud technology, and ongoing training.

Implementing LEAN Construction

Implementing LEAN Construction

INTRODUCTION – Discussions about and implementing LEAN construction require consideration of a holistic approach involving multiple phases… Planning, Procurement, and Project Delivery, as well as the integration of People, Process, Information, and Technology. All of the requisite tools for implementing LEAN construction planning, procurement, and project delivery are readily available, and there are major benefits for organizations that are successful in doing so. For example, organizations can consistently achieve quality repair, renovation, maintenance and new construction outcomes, on-time, and on-budget, ninety percent of the time (90%). This is a obviously huge in an industry where less than twenty percent (20%) of projects are completed in this manner. Successful implementation of LEAN construction planning, procurement, and project delivery require the following:

  1. Owner commitment, competency, and leadership.
  2. Awareness that LEAN is a gradual and continuous process requiring a focus upon change management
  3. Initial and ongoing training

OWNER COMMITMENT, COMPETENCY, AND LEADERSHIP– The implementation of LEAN construction requires that owners both fully understand and are committed too its fundamentals and also the concept of life-cycle total cost of ownership management (TCO). TCO, like LEAN construction is a holistic process within which multiple knowledge domains, stages, activities, processes, and technologies are integrated to provide actionable information and robust decision-support. (See figure below). A TCO implementation, combined with LEAN, ensures a best-value functional approach within which tasks are well planned, quantitatively documented, well understood and communicated on an early and ongoing basis, and monitored against key performance indicators (KPIs).

Implementing LEAN Construction

AWARENESS THAT LEAN IS A GRADUAL AND CONTINUAL PROCESS– While LEAN construction has a starting point, there is no end point. Change is gradual and improvement is ongoing. The integration of LEAN planning, procurement, and project delivery including the follower phases… 1.Adoption 2.Planning 3.Implementation 4.Data Validation & Analysis. Adopting is non-trivial as LEAN fundamental changes how participants and stakeholders view each other and interact on an day-to-day basis. Focus is not upon early and ongoing communication and mutually beneficial outcomes. Global oversight is combined with the enabling of local, on-site decision-making. Process and technology are enabling tools that are continually adapted to changing conditions.

INITIAL AND ONGOING TRAINING – LEAN construction planning, procurement, and project delivery are top down, bottom up, and horizontal practices performed internally and externally to an organization. Initial and ongoing training is required in order to assure initial adoption and ongoing improvement in both capabilities and outcomes. LEAN consultants and service provides can assist in training on ongoing support. It is important to note however that owners must become self-sufficient in their management of LEAN planning, procurement, and project delivery programs. Continued reliance upon consultants for “program management” is costly and is counterproductive to best value outcomes. Long term, vendor support is, however, critical with respect to training independent third-party audits, and enabling collaborative technology.

via www.4BT.us – “Coming together is a beginning, staying together is progress, and working together is success.” – Henry Ford

Four BT, LLC (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 centered upon delivering customer value, supported by proven LEAN processes, actionable data, enabling cloud technology, and ongoing training.

Implementing LEAN Construction

Integrated Construction Delivery

2020 LEAN Integrated Construction Delivery

LEAN Integrated Construction Delivery has provide to enable the consistent achievement of quality repair, renovation, maintenance, and new construction projects on-time and on-budget.

With greater focus upon education, awareness building, and improved real property owner leadership, the traditional low levels of productivity can be mitigated.

“Coming together is a beginning, staying together is progress, and working together is success.”

Henry Ford

Integrated Construction Delivery – Activities Listing

  • Obtain commitment from leadership….and provide program leadership!
  • Develop a mutually beneficial strategy.
  • Clearly identify success and failure.
  • Plan for phased improvement within targeted areas.
  • Build diverse, yet collaborative teams – top/down, bottom/up, laterally…internal and external to the organization…. integrate multiple levels, capabilities/functions, geographic locations tenure, and concepts.
  • Share information transparently, as early as possible with all participants and stakeholders.
  • Incorporate robust LEAN, outcome-focused processes that run concurrently.
  • Assure both global oversight and localized decision-making.
  • Remove barriers
  • Reward success
  • Seek to continuously improve by identifying opportunities and adapting accordingly.

Leadership requires the ability and willingness to work with people across all levels and functions…with respect, integrity, and purpose.



All the tools and support services for LEAN integrated construction planning, procurement, and project delivery are readily available and can be tailored to any organizations specific needs.

Is your organization is ready to begin the journey towards becoming more effective and efficient with respect to stewardship of the built environment?

LEAN Integrated Construction Delivery


via www.4bt.us –Four BT, LLC (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 centered upon delivering customer value, supported by proven LEAN processes, actionable data, enabling cloud technology, and ongoing training.

Construction Cost Estimating - LEAN

Construction Cost Estimating – LEAN

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Construction Cost Estimating – LEAN

INTRODUCTION

This paper ” Construction Cost Estimating-LEAN” discusses the positive impacts of collaboration, a common data environment, and locally researched detailed line item construction cost data.

Actionable construction cost estimates are key to best value repair, renovation, maintenance, and new construction outcomes. Preparing and communicating detailed scopes of work that accurately reflect the requirements of all participants and stakeholders, and executing associated work on-time and on-budget, are equally impossible to consistently achieve without the application of an appropriate collaborative workflows and proper tools.

CURRENT STATUS

Due to a combination of factors, most real property owners don’t achieve optimum or even “commonly acceptable” levels of repair, renovation, or new new construction cost visibility or transparency. Public and private sector real property owners, from largest to smallest, are wasting hundreds of millions of dollars due to one or several of the following factors:

1. Lack of owner leadership or domain expertise. (Owners need to be capable of assessing internal organizational readiness for collaboration, invest in detailed project definition, select best value partners, and continually invest in and support collaborative behaviors, processes, and systems. )

2. Failure to adapt to readily available, proven and robust cost estimating practices.

3. Loss of cost estimating expertise at a detailed line item level. (Only detailed line item construction cost estimate provide actionable cost information at levels required for efficient project delivery.)

4. Use of “national average cost data with or without third-party or commercially available “localization factors.: (National average construction cost data , with or without localization factors is not representative of local conditions, requirements, or cost variables.)

5. Limited ability (whether due to competency or commercial restrictions) to customize existing or commercial cost data to reflect current conditions.

6. Weak, or nonexistent linkages between detailed unit price line item and systems level, square foot level, or building level cost models .

7. Perceived high costs associated with procuring and maintaining actionable detailed unit price line item cost data.

CURRENT OPPORTUNITIES

Significant measurable improvements in cost visibility and cost control are currently available to any real property owner or facilities management staff with appropriate leadership and competency.

construction cost estimating - LEAN
Construction Cost Estimating – LEAN and Collaborative Construction

Specifically organization specific, locally researched cost databases are now readily available. These actionable and verifiable construction cost repositories are unique to each organizations use requirements. As they are locally researched by location (i.e. site, city, region), there is no dependence upon or risk with respect to national cost averaging and/or location factors. Significantly improved financial and work scope visibility is provided. For example, each line item includes (where appropriate), a full description in plain English. Details for associated labor (including trade, crew, and productivity), materials, and equipment. A unit of measure is included with each line time such as “each”, “linear foot”, “square foot”, “cubic yard”, etc. , to simplify estimate and bid/proposal preparation and subsequent owner review. Furthermore, owner specified labor rates and defined line items can easily be created and updated.

As a result of the current availability of locally researched detailed line time construction cost data, associated implementation of LEAN construction planning, procurement, and project delivery methods, and enabling collaborative technologies, major cost savings and overall gains in efficiency, financial transparency, and productivity are now possible.

Construction Cost Estimating

Future linkages between detailed, actionable locally researched construction cost data with system level and building level cost models are also now a capability.

via … Four BT, LLC (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 centered upon delivering customer value, supported by proven LEAN processes, actionable data, enabling cloud technology, and ongoing training. www.4bt.us

alliance contracting, project alliancing

Best Value Construction Delivery Methods – Alliance Contracting, LEAN Construction, Integrated Project Delivery

There are multiple types of construction delivery methods that strive to achieve superior outcomes to traditional design-bid-build, design-build, CM@R, etc. These including alliance contracting/project alliancing, LEAN construction, integrated project delivery, LEAN job order contracting. While all are “relational contracting and/or relational project delivery methods” they can vary in terms of level of development, available tools, and actual work scope. Focus of all, however is upon improving outcomes for involved parties.

“Coming together is a beginning, staying together is progress, and working together is success.”

– Henry Ford

What you need to know about LEAN construction, integrated project delivery, LEAN job order contracting, and project alliancing

  1. LEAN construction can refer to a “philosophy” (examples: Last Planner, Kaizen, 5s, six sigma…), or a LEAN project delivery methods or LEAN planning, procurement, and project delivery method (integrated project delivery, LEAN job order contracting…). The difference being that the philosophies are “generalized approaches” and/or “ways of thinking”, whereas LEAN project delivery methods are proven, robust processes and workflows than can be deployed per specified requirements.
  2. Per #1, LEAN construction be used to refer to a “philosophy” or to a planning, procurement, and/or project delivery method. That said, Integrated project delivery, and LEAN job order contracting are both forms of project alliancing, as well a LEAN planning, procurement, and project delivery methods, however, LEAN construction is not necessarily a planning, procurement, or project delivery methods.
  3. Both Project Alliancing and Integrated Project Delivery are collaborative, relational methods, however IPD and LEAN Job Order Contracting incorporate specific LEAN construction processes and workflows.
  4. Alliancing, like IPD and LEAN Job Order Contracting, developed due to the need for a solution superior to design-bid-build, design-build/design construct). It collaboration between the real property owner and multiple service providers whereby risk and reward are better defined, managed, and shared. One definition, among may of alliancing – “A method of procuring and project delivery of construction services where all parties are required to work together in good faith, acting with integrity and making best-for-project decisions. Working as an integrated, collaborative team, they make unanimous decisions on all key project delivery issues. Alliance agreements involve joint management of risk for project delivery. All parties jointly manage that risk within the terms of an ‘alliance agreement’, and share the outcomes of the project”.
  5. LEAN construction in terms of a philosophy actually has no commonly accepted definition. One example is as follows… “A combination of original research and practical development in design and construction with an adoption of lean manufacturing principles and practices (i.e., Toyota Management System) to the end-to-end design and construction process. Lean construction is concerned with the alignment and holistic pursuit of concurrent and continuous improvements in all dimensions of the built and natural environment: design, construction, activation, maintenance, salvaging and recycling.” Austin 2016 . Many definitions include characteristics such as “customer focus”, “workplace standardization”, “waste elimination”, and “continuous improvement”.
  6. Integrated project delivery and job order contracting have more standardized and “accepted” definitions as well as supporting tools, workflows, information sets, and technologies. Integrated project delivery – “Integrated project delivery (IPD) is a collaborative alliance of people, systems, business structures and practices into a process that harnesses the talents and insights of all participants to optimize project results, increase value to the owner, reduce waste, and maximize efficiency through all phases of design, fabrication, and construction.” Job order contracting (JOC) – Job Order Contracting (JOC) is a project delivery method utilized by organizations to get numerous, commonly encountered construction projects done quickly and easily through multi-year contracts for a wide variety of renovation, repair and minor construction projects.

via Four BT, LLC, www.4bt.us – Four BT, LLV (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 ofa culture centered upon delivering customer value, supported by proven LEAN processes, actionable data, enabling cloud technology, and ongoing training.

LEAN Construction Tools and Support Services

LEAN Construction Tools and Support Services… 4BT OpenBuild(TM) Toolkit

“Coming together is a beginning, staying together is progress, and working together is success.”

– Henry Ford

What is LEAN Construction? LEAN construction spans Planning, Procurement, Project Delivery, and ongoing Operations and Maintenance. It is a ongoing process with a focus upon maximizing best value outcomes through mutually beneficial collaboration of all program participants and stakeholders. Tools and services are readily available to leverage the integration people, robust workflows, actionable and current information, and enabling technology. Core elements of LEAN construction planning, procurement, and project delivery include:

  • Early and ongoing collaboration of all participants and stakeholders
  • Focus upon mutually beneficial outcomes
  • Common data environment (example: locally researched detailed unit price cost data organized by CSI Masterformat)
  • Shared risk/reward
  • Metrics/Key Performance Indicators (KPIs)
  • Required initial and ongoing training
  • Continuous improvement
  • Written operations manual/execution guide as part of a multi-party agreement
  • Integrated workflows
  • Enabling technology: Program Management, Project Management, Bid/Estimate/Proposal Management, Document Management, Work Order Management, Contractor/subcontractor Management, Building Management, Asset/Component Management, Space Management, and Issue/Task Management.

via Four BT, LLC (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 ofa culture centered upon delivering customer value, supported by proven LEAN processes, actionable data, enabling cloud technology, and ongoing training.

LEAN construction planning, procurement, and integrated project delivery

The path to LEAN Construction Planning, Procurement, and Integrated Project Delivery

The path to LEAN construction planning, procurement, and integrated project delivery, IPD….

1. Focus upon outcomes that mutually benefit all participants and stakeholders.

2. Strategy and process before technology.

3. Leverage early and ongoing input and collaboration among all parties, especially those doing the actual work.

4. Leadership is critical, but not getting in the way is equally important. Focus upon guidance versus command and control.

5. Lead by example as your behaviors will set the tone for all involved.

6. Integrate processes into well defined workflows. Collaboration shouldn’t be a chore, but rather a seamless part of daily activities.

7. Reward based upon performance.

8. Measure, learn, and continuously improve. As the saying goes, it’s impossible to manage what you don’t measure. Metrics, including key performance indicators are always part of a successful program.

9. Pace yourself and your program. LEAN implementation is a journey, not a race. Results will be incremental as additional milestones and increased capability are attained. Participants adapt and evolve at differing rates. It’s important to remember that collaboration is perpetual. It’s a never ending evolution as new tools and strategies for the workplace continue to emerge. This means that it’s important for your organisation to be able to adapt and evolve as things change. Keep a pulse on what’s going on in the industry and inside of your organization. This will allow you to innovate and anticipate.

10. Initial and ongoing training for all!

LEAN construction planning, procurement, and integrated project delivery tools and services are readily available.

LEAN construction planning, procurement, and integrated project delivery
LEAN Construction and Integrated Project Delivery

The Myths of LEAN Construction and Integrated Project Delivery

Don’t be fooled by the myth that LEAN Construction and Integrated Project Delivery focus exclusively up technique and process and don’t have associated implementation tools and services.

Anyone with the appropriate levels of motivation, expectation, leadership, and competency can begin to implement LEAN, integrated construction planning, procurement, and project delivery today.

The benefits are proven and waiting for those who care to take advantage of them…

  • Better planning – Well defined and well communicated scope of work
  • Enhanced financial visibility and transparency – More accurate cost estimation via locally researched detailed unit price cost data
  • Optimum project delivery outcomes for all participants and stakeholders- quality, on-time, on-budget, satisfaction
  • Reduced waste, Increased productivity
  • Early and ongoing sharing of actionable information
  • Improve, longer-term, collaborative relationships
  • Mitigation of change orders and legal disputes
  • Shared risk/reward
  • Leverage of local, on-site knowledge and decision-making
  • Global oversight and compliance

“Coming together is a beginning, staying together is progress, and working together is success.”

Henry Ford

Learn more?

via – Four BT, LLC (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 ofa culture centered upon delivering customer value, supported by proven LEAN processes, actionable data, enabling cloud technology, and ongoing training.

Integrated Project Delivery Tools and Services, LEAN Facilities Management, LEAN Integrated Project Delivery Tools and Services

LEAN Integrated Project Delivery Tools and Services

Integrated project delivery tools and support services are now available for the repair, alteration, modernization, rehabilitation, and minor new construction of infrastructure, buildings, structures, or other real property.

Integrated project delivery, IPD, has been available exclusively for major new construction only due to the cost of implementation. IPD can now be applied to the numerous and ongoing repair, renovation, maintenance, and minor new construction projects that consume the bulk of resources for any facilities management team.

All the tools and support services are now available to optimally integrate people, process, information, and technology to consistently plan, procure, and delivery quality repair, renovation, maintenance, and minor new construction projects on-time and on-budget.

via Four BT, LLC – www.4bt.us Four BT, LLC (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 ofa culture centered upon delivering customer value, supported by proven LEAN processes, actionable data, enabling cloud technology, and ongoing training.

Free trial to qualified real property owners.

Construction COLLABORATION, Construction COLLABORATION from Planning, through Procurement, IPD Construction Collaboration Software

IPD – Ensuring Construction COLLABORATION from Planning, through Procurement, through Project Delivery, and Beyond!

Ensuring COLLABORATION from Planning, through Procurement, through Project Delivery, and Beyond for repair, renovation, maintenance, and new construction requires an integrated outcome-focused process. The integration of People, Process, Information, and Technology is the only proven pathway to the consistent delivery of quality projects on-time and on-budget.

Integrated project delivery (IPD) is a robust outcome-focused method for assuring best value outcomes for all participants and stakeholders, including AEs, Builders, Facilities Management and Owners, and Building Users. All of the tools are services are readily available for any real property owner to tailor IPD to their organization.

Programs, Projects, Proposals/Bids/Estimates, Work Orders, Documents, Service Providers, Buildings, Components, Spaces, Forms, Workflows can all be managed and continuously improved within an IPD environment. While implementation does require a certain amount of change management for most organizations, the process is far from complex. The end result of having proactive internal and external teams focused upon mutually beneficial outcomes and continuous improvement is well worth an required implementation efforts or costs.

The 4BT OpenBuild(TM) Solution is an example of a suite of tools and services that integrate people, process, information, and technology by embedding LEAN integrated project planning, procurement, and project delivery within a common data environment from pre-planning through project execution and beyond.

Detailed Scope of Work development and communication is simplified and maximized through the use of a locally researched line item unit price book. With separate and granular breakdowns for labor, materials, equipment and crew information, the development of work schedules and verifiable cost requirements can easily be accomplished. The detailed unit price book (UPB) is based upon the time, materials, and costs actually required at a task level, non “historical information” or “benchmarks”. The latter two techniques are clearly faulty in terms of gauging current and future performance. What an organization has done in the past should not be the determining factor for what is possible.

Learn more?

via Four BT, LLC – Four BT, LLC (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 centered upon delivering customer value, supported by proven LEAN processes, actionable data, enabling cloud technology, and ongoing training.

“Coming together is a beginning, staying together is progress, and working together is success.”

– Henry Ford

Indefinite Quantity Construction Contract

Attention Contractors and Owners. Stop paying TOO MUCH for Indefinite Quantity Construction Contract & Job Order Contract Cooperative Construction

If you aren’t using the Allied States Cooperative for Job Order Contracting then the odds are good that you are paying 300% to 400% more in administrative fees than necessary!

The Allied States Cooperative only carries a two percent (2%) fee payable by awarded JOC contractors. Other cooperatives charge threes times (3X) or higher for equivalent, or in some cases less robust JOC Programs. The Allied State Cooperative (ASC) JOC Program provides the following features and benefits to owners and awarded JOC contractors. Do your research and make sure your money is being spent wisely!

  • Locally researched OpenJOC(TM) Unit Price Cost Data (no use of national averages or localization factors)
  • Compliance audits on EVERY JOC Project
  • EDGAR Compliance
  • Mandatory annual training for ALL awarded JOC Contractors
  • Cloud technology with Project, Estimate, Document, Issues/Task Management and more…

via Four BT, LLC – Four BT, LLC (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 centered upon delivering customer value, supported by proven LEAN processes, actionable data, enabling cloud technology, and ongoing training.

“Coming together is a beginning, staying together is progress, and working together is success.” – Henry Ford

Indefinite Quantity Construction Contract
Integrated Project Delivery Software

Integrated Project Delivery Software and Support Services

Integrated project delivery software and support services are now available for facilities operations and maintenance as well as new construction

Integrated Project Delivery Software

IPD software and support services provide an environment with a collaborative focus upon requirements definition and successful repair, renovation, and new construction project completion. Clearly defined mutually beneficial outcomes are easily supported within a robust and integrated evironment.

Integrated project delivery software and support services embed robust LEAN planning, procurement and project delivery processes within a common data and cloud technology environment. While fundamental LEAN elements serve as the foundation, solutions can be tailored to an organization’s individual requirements.

Integrated Procurement, Design, and Construction REQUIRES Direct Owner Involvement and Leadership from Predesign Through Closeout and Beyond:

  • Planning and performance management collaboratively and at a systemic level.
  • Early and ongoing involvement of internal and external teams, inclusive of joint scope and schedule development
  • Reliance upon local, on-site service delivery partners (AEs, builders…).
  • Defined common data environment.
  • Key performance indicators.

Sample High-level Workflow

  • Strategic Planning – Predesign
  • Brief Scope of Work
  • Detailed Scope of Work
  • Bidding Documents
  • Request For Proposal
  • Joint Site Visit
  • Detailed Scope of Work and Bid Package
  • Detailed Unit Price Proposal (CSI Mastefromat) and Proposal Package
  • Joint Proposal Review
  • Notice of Proceed
  • Mobilization Meeting
  • Project Execution
  • Weekly Inspections
  • Project Closeout
integrated construction Delivery
collaborative construction delivery

Common Data Environment

  • CSI Masterformat – 50 Divisions 00/01-General Conditions 01-49-Line Item Task Specifications
  • Documents – Proposals, Estimates, Forms, Cost Databases, Models, Drawings, Pictures-Version Control for All ( The Document Management module lets you manage and share files, while keeping a record of all reviews and uploaded documentation throughout the entire life-cycle of the building. Upload and share documents and make them available to your whole team – including PDF, Word and Excel files, images and videos. View and analyse data from BIM models (RVT and IFC formats) directly from your browser without the need to purchase expensive software. Instant access to drawings using Building in Cloud built-in DWG viewer.

Operations Manual / Execution Manual-Defines Roles, responsibilities, deliverables, workflows, and tools relative to procurement, program and contract administration, and day to day activities.

Integrated Construction Project Delivery
Integrated construction delivery

Free Trial to Qualified Organizations

LEAN construction

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LEAN construction solution

LEAN Construction Planning, Procurement, and Project Delivery Solution

Consistent on-time, on-budget delivery of quality repair, renovation, maintenance, sustainability, and new construction projects is possible only when owners have the requisite levels of leadership and competency.

Robust LEAN construction planning, procurement, and project delivery tools and services are readily available. They enable a proven outcome-focused approach that integrates People, Process, Information, and Technology to drive BEST VALUE for all participants and stakeholders.

Various forms of LEAN construction planning, procurement, and project delivery have a track record spanning as long as decades and include integrated project delivery, IPD, LEAN job order contracting, JOC, and alliance contracting.

In each of these, everyone (owners, builders, AEs, building users, procurement, FMers…) are involved in the “Program”. The work “Program” is used specifically here, as LEAN construction planning, procurement, and project delivery is a well-defined, process and workflow based environment, within which Projects and Work Orders can be executed. While Projects begin and end, a Program is continuous in nature and is always adapting.

Within the Program, all participants and stakeholders share a clearly defined common vision. This includes granular articulation of roles, responsibilities, costs, and schedules as well as physical and functional outcomes. Key performance indicators, KPIs, are used to define success for all.

While owners provide leadership, builders and other “on-site” service providers are relied upon to provide localized, domain-specific expertise to drive better outcomes. Global support doesn’t dictate local action from a command and control perspective, but rather helps to assure common knowledge, goals, and anticipated outcomes.

Project definition of the Scope of Work is critical. It therefore should come as no surprise that poorly defined or poorly communicated Scope of Work is the primary cause of project failure. Efficient early and on-going involvement of participants is central to Scope of Work development and requires a common data environment (example: locally researched detailed unit price cost data organized using CSI Masterformat), joint site-visits, and additional defined phases, workflow elements, forms, approvals, etc.

A LEAN construction planning, procurement, and project delivery environment enables service providers to earn a reasonable return on their work over the duration of the program. This is an environment within with risks and rewards are shared. Performance management, while ultimately the owner’s responsibility, is shared and is accomplished at a systemic level.

An Operations Manual, or Execution Guide, is a written document that is part of a multi-party agreement, serves to articulate roles, responsibilities, data environments, workflows, metrics, etc. It integrates internal and external resources within a process-centric environment.

Henry Ford, the true father of LEAN, said it best… “Coming together is a beginning, staying together is progress, and working together is success.” – Henry Ford

LEAN is a process by which participants and stakeholders jointly define their common goals, define each individual’s/organization’s major areas of responsibility in terms of results expected and use these measures as guides for planning, procurement, and execution, and assessing the contribution of each participant.

Request your free eBook – LEAN Construction

via – Four BT, LLC (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 centered upon delivering customer value, supported by proven LEAN processes, actionable data, enabling cloud technology, and ongoing training. www.4bt.us

lean construction solution
LEAN Construction Solution
Best Value Facilities Construction

Best Value Facilities Construction/O&M Planning, Procurement and Project Delivery

Best Value Facilities Construction

Best Value Facilities Construction/O&M Planning, Procurement and Project Delivery can only be achieved with a concerted focus upon change management, education, and leadership.

All of the tools and services are readily available to optimize facilities planning, procurement, and project delivery outcomes, whether they be the numerous, ongoing repair, renovation, and maintenance tasks or new construction.

While the solutions to best value facilities life-cycle asset total cost of ownership management have existed for decades, only recently have they been combined to truly integrated people, processes, information, and technology.

Change management is required, however, the benefits quality, financial visibility, and on-time, on-budget delivery are available to any real property owner and their service providers.

At the very core of the transformation, is a locally researched detailed line item unit price book, complete with full granularity and ability to alter labor, material, equipment, crew, and productivity components…. all organized by CSI Masterformat. National average price books, with or without factors, simply don’t provide requisite financial visibility, nor due “lump sum” estimates, or “historical data”.

When combined with LEAN planning, procurement, and project delivery workflows, the path to measurably improved outcomes is clear.

Best Value Facilities Construction

via Four BT, LLC, the AEC industry’s innovative LEAN construction collaboration services, construction cost data, and SAAS technology provider. www.4bt.us

Construction value engineering

Value Engineering in Construction

Construction value engineering is a process structured to obtain the best possible balance among cost, reliability, and performance of a program, project, and/or work order. It should be an integral component of every repair, renovation, maintenance, or new construction activity. All LEAN construction planning, procurement, and project delivery methods implement value engineering.

Learn more about best value construction planning, procurement, and project delivery…

Overview

Products and Services

via Four BT, LLC – 4BT is the AEC industry’s innovative LEAN construction collaboration services, construction cost data, and SAAS technology provider.

Construction Requirements

Construction Requirements Management

Early and ongoing requirements management is a key focus of any LEAN construction planning, procurement, and project delivery process. It resides as a shared goal and primary component of the 4BT OpenBUILD(TM) Solution. Requirements management is a process that delivers what was expected by ALL participants and stakeholders, within the predefined constraints of time, and capability.

The construction sector has a terrible track record with respect to requirements management.

Fortunately, all the tools and services are readily available to consistently deploy an open environment within which requirements management is the norm, and not the exception.

  • Collaboration
  • Leadership
  • Integration – People/Process/Information/Technology
  • Focus upon Outcomes
Construction Requirements

Learn more…..

LEAN Construction Planning

OpenBUILD(TM) LEAN Construction Planning, Procurement, and Project Delivery Solution

The early and ongoing integration of People, Process, Information, and Technology can drive optimal repair, renovation, and new construction outcomes. LEAN construction planning, procurement, and project delivery can consistently drive significant improvement over traditional methods.

LEAN Construction Planning

People – With the appropriate levels of owner leadership and competency, all participants can work within an atmosphere of mutual trust and respect and share both risks and rewards. Long-term relationships can be the norm and experience maintained and grown over time.

Process – Workflows that are consistent with proven LEAN construction methods such as Integrated Project Delivery, IPD, and LEAN Job Order Contracting, JOC provide an stable environment that supports and drives early and ongoing information sharing and continuous improvement.

Information – Common data environments, inclusive of locally researched detailed unit price cost data, help to assure that plans and works scope are fully understood and communicated, as well as costs, schedules, expectations, and deliverables. Access to current, actionable information is critical to both global oversight and local/on-site decision-making.

Technology – The role of technology is to support the consistent execution of robust processes, lower associated deployment costs, and provide appropriate monitoring capabilities. Document management, for example, inclusive of check-in/check-out capabilities and version control is critical to keeping team members properly informed of requirements, phases, approvals, etc. Access for appropriate individuals is virtually instantaneous. Paper-based systems and spreadsheets impose unacceptable and easily avoidalbe delays, errors, and risk. The combination technology can also support program, project, bid/proposal, estimate, work order, client, contractor, subcontractor, asset, building, asset, and task management.

via Four BT, LLC (4BT) – AEC industry’s innovative LEAN construction collaboration services, construction cost data, and SAAS technology provider, 4BT guides organizations to help achieve accelerated improvement of their facilities repair, renovation, and construction outcomes through the development of a culture centered upon delivering customer value, supported by proven LEAN processes,

Construction Cost Audit Fundamentals

Construction Cost Audit Fundamentals

The following is an outline of basic Construction Cost Audit Fundamentals when reviewing a construction cost estimate.

construction cost audit fundamentals
Construction Cost Audit Fundamentals

Construction cost audit procedures involve a thorough understand of the scope of work and all phases leading up to and ending with the construction cost estimate. This includes pre-construction and planning phase activities… initial owner scope of work as well as all related planning, procurement, and project management processes.

A construction cost audit and associated checklist are important risk management . Equally important are LEAN construction planning, procurement, and project delivery tools. These serve to aid in overall continuous improvement of repair, renovation, maintenance, sustainability, and new construction project outcomes.

Auditors should engage experienced construction professionals capable of applying industry best management financial practices. Any audits should be conducted, however, by an independent third party. Regular audits are mandatory for any LEAN construction planning, procurement, and delivery implementation.

Audit procedures are linked to the construction delivery method used and associated scope of work and time frames. Billings are linked to plans, schedules, and any unanticipated delays/issues.

The process including identifying and analyzing direct costs and variances at a granular level and associated validation using source documents and independent locally researched construction cost information. These include soft costs – general conditions, insurance/bonding, fees/permits, as well as direct costs for material, equipment, and labor in elemental CSI MasterFormat data architecture. Source documents include, but are not limited to contracts, original and current schedule of values, detailed construction cost estimates, pay applications, relevant roles, responsibilities of participants and associated time sheets/payroll documents, job site sign-in records…

via Four BT, LLC (4BT) – 4BT guides organizations to help achieve accelerated improvement of their facilities repair, renovation, and construction outcomes through the development of a culture centered upon delivering customer value, supported by proven LEAN processes, actionable and robust data, enabling cloud technology, and ongoing training. AEC industry’s innovative LEAN construction collaboration services, construction cost data, and SAAS technology provider.

JOC TASK ORDER Process Overview

JOC TASK ORDER Process Overview – USACE

The following is a JOC TASK ORDER Process Overview as defined by the USACE.

A Job Order Contract involved Projects and/or Task Orders. Each Project requires at least one Task Order. Entities/people involved in a JOC Program at a Project or Task Order levels include client/building user, project managers, awarded JOC contractor, contracting officer/contracting officer representative, others as required.

USACE JOC Participants

Multiple stages are involved for each JOC task order.

JOC TASK ORDER Process Overview

Each stage in the JOC task order process is designed to assure collaboration on an early and ongoing basis, clearly communicate a detailed scope of work, and manage all aspects of construction planning, procurement, and project delivery.

A detailed line item, and preferably locally researched (no use of cost factors) is used by the JOC contractor to prepare a propsal/bid for review by the USACE.

Sample Task Order Proposal – Overview (not showing detailed unit price line items)

When prices for lines are used that are not derived from the unit price book, they are noted and referred to as non-prepriced line items (NPP). When NPP items are negotiated and incorporated in a task order, this does not incorporate the item in the UPB for subsequent use as a priced item. To permit subsequent use under the UPB as a pre-priced item, repetitive NPP items must be incorporated by supplemental agreement to the JOC contract and typically down on a annual basis, and/or as appropriate.

Non pre-priced (NPP) items: NPP items cannot exceed 10% of the pre-priced total of the task order unless approved by the Contracting Officer. Only the contracting officer can negotiate/approve non-pre-priced item(s) in the task order.

The government is responsible for developing the scope of work. The government will not provide the contractor with detailed Task Order drawings for projects that do not require a design. For Projects that require actual design, the government will provide the contractor with the minimum design documents and drawings considered necessary to estimate, propose and construct these projects.

The Government will review the contractor’s task order proposal for completeness. The Government will negotiate with the contractor on the methods of construction, non-pre-priced items (as applicable), performance times, and quantities. The contractor shall provide an individual present at all negotiations that have full authority to act for the contractor.

Before commencement of work under an individual task order, the Contractor shall confer with the Contracting Officer or the Contracting Officer’s Representative and agree on a sequence of procedures; means of access to premises and building; space for storage of materials and equipment; delivery of materials and use of approaches; use of corridors, stairways, elevators, and similar means of communications, etc.

Delivery of materials and equipment shall be made with a minimum of interference to Government operations and personnel.

Contractor should confirm task order requirements with the Government as needed:

  1. Confirm scope of work and quantities
  2. Review any qualifications and assumptions
  3. Review the scope as necessary
  4. Review the schedule
  5. Confirm start and completion dates
  6. Understand and mitigate impacts on existing operations and facilities
  7. Review safety concerns and requirements

Contractor holds regular progress meetings with the Government on:

  1. Safety
  2. Schedule
  3. Construction issues
  4. Submittals
  5. RFI’s

via Four BT, LLC – 4BT

“Coming together is a beginning, staying together is progress, and working together is success.” – Henry Ford

AEC industry’s innovative LEAN construction collaboration services, construction cost data, and SAAS technology provider.

4BT guides organizations to help achieve accelerated improvement of their facilities repair, renovation, and construction outcomes through the development of a culture centered upon delivering customer value, supported by proven LEAN processes, actionable and robust data, enabling cloud technology, and ongoing training.

Terms and Definitions

Programmed Amount (PA): The Programmed Amount represents the total funds, excluding design, which are available for the project. The PA is for cost of construction in place, cost of supervision and administration during construction, contingencies, cost of communications over and above the basic contract, cost of as-built drawings, cost of energy monitoring and control system connections and other costs required to complete the construction scope of work. The PA is set by law for most projects and cannot be changed except by Congress (except for O&M). However, the Office of Chief of Engineers and the Secretary of the Army, Air Force, or DLA have limited authority to fund projects in excess of the PA provided funds are available in their departments.

Current Working Estimate (CWE): In accordance with ER 1110-3-1300, the CWE is the latest construction cost estimate, which includes the estimated contract cost (i.e. NOT ECC as defined below), construction contingency, and S&A costs. The CWE shall not exceed the PA.

Construction Cost Limit (CCL): The maximum cost of construction allowable within appropriated fund amounts for a complete and usable project.

Estimated Construction Cost (ECC): The ECC is defined as the expected cost to construct a project inclusive of all construction labor, materials, and equipment, site development, utility fees, permits, design fees, design or estimating contingency, escalation, contractor markups and other costs directly associated with the construction of the project that a reasonable and prudent contractor would incur during construction. The ECC does not include real estate, other appropriations, S&A (or SIOH) or construction contingency and thus is directly comparable to contractor’s proposal or bid. The ECC shall not exceed the CCL.

Independent Government Estimate (IGE): The construction cost estimate prepared by the government for cost control and bid evaluation. The IGE is comprised of two parts: 1) The government estimate (Title and signature pages, and bid schedule) routed through multiple levels of approval and signature and 2) detailed estimate reports that comprise its basis. An estimate does not comprise the IGE without both components of the document. The term “fair and reasonable cost estimate” is used when referring to the IGE. Access to the IGE shall be limited to government personnel who require knowledge of the subject and the IGE preparer shall mark the IGE “For Official Use Only.”

Construction Contingency: An estimated amount or cost to account for unforeseen problems beyond interpretation at the time of or after contract award. This is typically added as a markup along with S&A (or SIOH) to a project estimate to form the project cost. For MILCON projects, new construction contingency is typically 5% and for renovation is 10%, however the project manager determines the appropriate contingency.

Design Contingency: An amount or cost added to a project estimate that covers costs that will be incurred but are not precisely known or designed at the time of estimation. Typically, this is applied during the initial stages of project and is reduced or eliminated as the project develops. This amount is determined by the estimator based on his prior experience and judgment.

Collaborative Construction Performance

Collaborative Construction Performance, Enablers, & Requirements

This abstract provides initial insight into Collaborative Construction Performance, Enablers, & Requirements.

Maximizing best value construction outcomes involves collaborative LEAN planing, value-based procurement, and project delivery processes. This, in turn, requires owner leadership and competency with respect to the integration of People, Process, Information, and Technology.

McKinsey & Company 2020

While there is ample evidence that LEAN construction planing, procurement, and project delivery can drive the consistent execution of quality repair, renovation, maintenance, sustainability, and new construction projects on-time and on budget, there have been relatively few early adopters. This low level of adoption is despite readily available tools and services to support proven LEAN construction frameworks such as Integrated Project Delivery, IPD, for major new construction and LEAN Job Order Contracting, JOC, for repair, renovation, and “minor”new construction.

LEAN Construction Planning, Procurement, and Project Delivery Tools and Services

Both IPD and JOC require participants and stakeholders (owner, engineer or architect, builders, building users, oversight groups…) to work together within a defined workflow from initial concept stage, through work completion and beyond. A defined preplanning period develops the initial project scope, schedule, and budget, then follows a joint planning phase, including a joint site visit and detailed line item proposal from the contractor. Parties engage in a single overall program and contract which outlines roles, responsibilities, workflows, information, deliverables, etc., in a manner that is financially transparent and mutually beneficial.

Reasons for the low rate of adoption of collaborative planning, procurement, and project delivery, despite its ability to measurably improve outcomes, is largely due to the fact that many/most organizations are unfamiliar collaborative behavior and workflows. Collaborative behavior is somewhat foreign within an industry segments known for mistrust, antagonistic relationships and legal disputes. Additionally a certain level of owner leadership and competency is a core requirement. That said, there is little overtly complex about LEAN collaborative methods. The key issue appears to be resistance to change, and lack of leadership and/or support.

Elements of collaborative planning, procurement, and project delivery programs

  • Single long-term, multi-party agreement with associated Operations Manual / Execution Guide
  • Owner leadership
  • Mutual trust/respect
  • Shared risk/reward
  • Full financial transparency – inclusive of locally researched detailed unit price book / cost database
  • Mandatory collaboration
  • Mandatory initial and ongoing training for all participants
  • Continuous improvement
  • Common data environment
  • Defined workflows
  • LEAN processes embedded with collaborative technology
  • Life-cycle cost view versus first-cost mentality
  • Metrics and key performance indicators
  • Regular third-party program audits
  • Program versus project approach

Ready to learn more? Request a LEAN and LEAN Construction Delivery eBook?

McKinsey & Company 2020

About Author – Four BT, LLC, 4BT, guides organizations to help achieve accelerated improvement of their facilities repair, renovation, and construction outcomes through the development of a culture centered upon delivering customer value, supported by proven LEAN processes, actionable and robust data, enabling cloud technology, and ongoing training.

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“Coming together is a beginning, staying together is progress, and working together is success.” – Henry Ford

AEC industry’s innovative LEAN construction collaboration services, construction cost data, and SAAS technology provider.

4BT guides organizations to help achieve accelerated improvement of their facilities repair, renovation, and construction outcomes through the development of a culture centered upon delivering customer value, supported by proven LEAN processes, actionable and robust data, enabling cloud technology, and ongoing training.

JOC Program Manager's Duties

JOC Program Manager’s Duties

A JOC Program Manager’s Duties are critical to assuring quality, on-time, and on-budget construction project delivery. Here’s just a brief list of JOC Program Manager’s duties for a real property owner:

  • Plan, organize, coordinate and administer facilities design and complex construction engineering projects with various entities.
  • Communicate with customers, consultants, regulatory agencies, and presentations at Board meetings and/or Commission hearings.
  • Obtain and evaluate proposals from job order contractors and other vendors on approved construction projects.
  • Ensure vendor/ contractor compliance with all safety and code regulations.
  • Use Job Order Contracting (JOC) procedures, software and documentation.
  • Secure necessary permits which may include Conditional Use Permits, Environmental Impact Statements, and building permits.
  • Arrange for contractor access and on-site coordination to minimize impact of project construction to normal operations at the organization’s facilities.
  • Select and negotiate architect and engineer consultants for design contracts.
  • Provide other customer service, coordination, and related duties as required.
Value-based Construction Process

Value-based Construction Process

Value-based Construction Process integrates planning, procurement, and project delivery processes and teams to consistently enable quality projects, on-time and on-budget. Value-based Construction Planning, Procurement, and Project Delivery

PEOPLE – Team-based and outcome-focused individuals with requisite leadership, communications, and technical competencies. Owner leadership is a core requirement as are positive relationships among all participants and oversight entities.

PROCESS – LEAN planning, procure, and project delivery is a requirement. LEAN, simply defined, is a collaborative effort focus upon positive outcomes and the elimination of waster. Integrated Project Delivery, IPD, for major new construction, and LEAN job order contracting, JOC, for repair, renovation, maintenance, sustainability, and minor new construction are proven examples of LEAN planing, procurement, and project delivery processes

INFORMATION – Best value outcomes require the early and ongoing sharing of actionable information from the conceptual stage right through construction, operations and maintenance, and eventual decommissioning. A common data environment, CDE, aid in efficient information sharing and updating. A locally researched detailed line item unit price book, organized using a standard data format, i.e. CSI Masterformat, is a key CDE element.

TECHNOLOGY: A collaborative cloud architecture with program management, project management, estimate/bid/proposal management, work order management, document management, building/location management, asset management, issues/tasks management… serves to provide low cost, consistent deployment and access to actionable information and pre-established workflows.

Construction Project Delivery Factors

Construction Project Delivery Factors

Focus upon key construction project delivery factors would greatly aid in improving productivity and other key outcomes.

Here’s a list of fundamental construction delivery factors. Please feel free to suggest more…

  • Uncertainty and Risk
  • Organizational Environment
  • Knowledge and Competency
  • Leadership
  • Shared Actionable Information
  • Integration and Collaboration
  • Mutual Benefit
  • Long-term / Outcome Focus
  • Continuous Learning and Improvement
  • Performance Monitoring
  • Written, Fully-defines Roles, Responsibilities, Work Flows, and Deliverables
  • Supporting / Enabling Technology
Learn More About Process…
Learn More About Tools and Services
LEANconstruction

Job Order Contracting Tools and Services

Reliable construction cost management is virtually impossible without locally researched detailed line item unit price cost data and LEAN planning, procurement, and project delivery processes.

Truly collaborative, mutually beneficial partnering relationships are required and characterized by increasing involvement of all participants and stakeholders.

Strategic “program partnering” must replace traditional “project partnering” with long-term integrated teamwork the goal. Short-term thinking is generally incompatible with best value.

LEAN construction planning, procurement, and project delivery tools and services are readily available.   For example, the OpenJOC(TM) Job Order Contracting framework uniquely integrates people, process, information, and technology to drive best value outcomes.

LEAN construction has changed and evolved to deliver optimal outcomes.  Time for your organization to do the same?

Job Order Contracting Tools and Services
Job Order Contracting Tools and Services
Collaborative Construction Software, Collaborative LEAN Construction Software

Collaborative LEAN Construction Software

4BT LEAN CONSTRUCTION COLLABORATION SaaS Solution

Innovative 4BT OpenJOC Collaborative LEAN Construction Software for your Enterprise, exclusively offers all of the following features:

3D BIM Model File Viewing and Information Access/Sharing
Annotation – Add notes to Projects, Bids/Estimates, Line Items and more…
Asset Management
Component Management
Bid/Proposal Management
Building Management
Change Order Management
Client Management
Common Data Environment (CDE)
Complete Approved/Current and Archived Service Provider/Vendor Directory
Configurable Attributes
Construction Management
Contract Administration
Contractor Management
Cost Data / Unit Price Book Management
Dashboards Cross-Project Reporting
Detailed Locally researched line item unit price cost data, and cost data management
Discussions and System-wide Messaging
Document Management – Full Access and Versioning Control
Estimate Management
Facilities Management
Field Solutions
File Management
Forms Management
Full Data Export – Excel, PDF, SQL
Full Search Capabilities
Information Archiving
Internal System Messaging
LEAN Planning, Procurement, and Project Delivery
Maintenance Schedules
Meeting Documentation
Model Federation
Notice to Proceed, Purchase Order, and eRFQ
Operations and Maintenance (O&M) Manuals
Portfolio, Building, and Asset/Component Management
Program Management
Program, Project, Estimate, Work Order Work Spaces
Project and Work Order Status and Cost Dashboards
Project Budgeting and Estimating Management
Project Close-Out and Handover
Project Controls
Project Management
Project Portal
Punch Lists
RFP Creation and Management
SaaS Systems Integration and Secure Single Sign On
Scope of Work Management – Brief and Detailed
Security Compliance
Share across all devices – Handhelds, Laptops, Desktops – Multi-browser compatibility
Shared Groups
Site Inspections
Specifications
Spend Analytics
Standards Compliance – ISO, PAS… PAS 1192-2, BS 1192:2007, ISO 9001, ISO 27001…
Supply Chain Management / eProcurement
Team Communication – Contracting Entity, Clients, Contractors, Subcontractors, AEs, Facilities Managers…
Technical Specifications and Linkage to Contracts, Projects…
Training and Certifications Management
Transmittals and Submittals Management
Unit Price Book Management
Unlimited Advanced Issue and Task Management
Unlimited Audit Trail – Track all changes and source
Unlimited Multi-Format File Attachment Uploads, including BIM models
Vendor Pre-Qualification
Visual Workflows, including Timelines and Approvals
Work Order Management

Contact Us…. Learn more…
Facilities Total Cost of Ownership - TCO Key Performance Indicators

Facilities Total Cost of Ownership – TCO Key Performance Indicators

• Annualized Total Cost of Ownership (TCO) per building per gross area = Rate per square foot

• Annualized TCO per building/Current replacement value = Percent of Current Replacement Value (CRV)

• Annualized TCO per building/Net assignable square feet = Cost rate per net assignable square feet per building

• Annualized TCO per building/Non-assignable square feet = Cost rate per nonassignable square feet per building

• Annualized TCO per building/Building Interior square feet = Cost rate per interior square foot per building

• Churn Rate

• Utilization Rate

• AI (Adaptation Index) or PI (Programmatic Index) = PR (Program Requirements)/CRV (Current Replacement Value)

• Uptime or Downtime = Defined in percent, as amount of time asset is suitable for the program(s) served.

• Facility Operating Gross Square Foot (GSF) Index (SAM Performance Indicator: APPA 2003) • Custodial Costs per square foot

• Grounds Keeping Costs per square foot

• Energy Usage is expressed as a ratio of British Thermal Units (BTUs) for each Gross Square Foot (GSF) of facility, group of facilities, site or portfolio = British Thermal Units BTUs / Gross Area GSF

• Utility Costs per square foot

• Waste Removal Costs per square foot

• Facility Operating Current Replacement Value (CRV) Index = Facility Operating CRV Index = Annual Facility Maintenance Operating Expenditures ($)/Current Replacement Value ($) (SAM Performance Indicator: APPA 2003)

• Facility Operating GSF Index = Annual Facility Maintenance Operating Expenditures ($)/Gross Area (GSF) • Planned/Preventive Maintenance Costs per square foot

• Emergency Maintenance Costs as a percentage of Annual Operations Expenditures. • Unscheduled/Unplanned Maintenance Costs as a percentage of Annual Operations Expenditures.

• Repair costs (man hours and materials) as a percentage of Annual Operations Expenditures • FCI (Facility Condition Index) = DM (Deferred Maintenance) + CR (Capital Renewal)/CRV (Current Replacement Value)

• Recapitalization Rate, Reinvestment Rate

• Deferred Maintenance Backlog • Facilities Deterioration Rate

• AI (Adaptive Index) or PI (Programmatic Index) = PR (Program Requirements)/CRV (Current Replacement Value)

• FQI (Facility Quality Index) or Quality Index or Index = FCI (Facility Condition Index) + AI (Adaptive Index)

• Capital Renewal Index = Annual Capital Renewal and Renovation/Modernization Expenditure ($)/Current Replacement Value ($)

Best Value Job Order Contracting Solution

4BT’s Best Value Job Order Contracting Solution

We founded 4BT in 2016 upon seeing a clear need to Rethink, Reshape, and Rebuild JOC. Our goal is to assure

1. LEAN planning, procurement, and project delivery processes were deployed in a manner that is mutually beneficial to all participants and stakeholders

2. Full financial transparency and audit-worthy compliance

3. JOC solutions that do not burden users with excessive fees and costs. and

4. Cost data was truly reflective of local market conditions, by locally researching all construction labor, material, and equipment costs.

4BT’s business location is Houston, TX.  Our team members are located across the United States, including California, Arizona, Texas, Midwest, Southeast, and the Northeast.  Our innovative and exclusively offered  products and services include LEAN construction collaboration frameworks, locally researched construction cost data, and enterprise-level SAAS technology. Our clients largely include the public sector including universities, counties, cities, and their awarded JOC construction contractors.   We also have certain private corporations using our construction cost data for their specialized products and services.  Lastly, our products and services are used by the Allied States Cooperative.

4BT offers free trials of our SAAS technology, inclusive of our locally researched construction cost data to any qualified owner interested in a JOC Program as well as a discount to CJE members that decide to deploy solutions.   Multi-level, and multi-level training is also available including on-site, virtual, and regional… advanced and introductory.

Our 4BT Building-in-Cloud SaaS technology stands alone in providing Program Management, Contract Management, Proposal/Bid Management, Estimate Management, Document Management, Location Management, Building Management, Asset/Component Management, and Contractor/Subcontractor Management, as well as the ability to integrate BIM information and view BIM models.   That said, our construction cost data is organized using CSI MasterFormat and therefore could be easily integrated within appropriate technology applications.



Our SaaS technology supports multiple co-efficients and then associated and locks co-efficient to specified JOC contract and awarded contractors.  Non-prepriced items are automatically tracked and in terms of both identification and usage.

4BT SaaS technology enables the creation and use of non-prepriced line items.  Most importantly the UPB itself is locked and can only be changed per contract specifications.  Additional non-prepriced line items can be easily created from existing UPB line times at a detailed level, include changes to material, labor, crew, and equipment costs.  All changes at noted and maintained perpetually.   All non-prepriced line item are automatically tagged as such, and there used is track and calculated.  For example, a proposal will note the dollar are percentage of non-prepriced line items as well as highlight their individual usage.   

All of the above are included within our standard pricing.

Out construction cost research methodology includes sampling local contractor pricing. Additionally we research all aspects of local market conditions using our robust 4BT cost research methodology. Our 4BT 5% rule(TM) is also used. If we find a variance of 5% or greater in areas in which work is being done, we create a separate UPB. Line items include local labor trades inclusive of fringes, material costs, and equipment costs within targeted areas. 



The 4BT UPB is changed based upon JOC contract requirements.  That said, we recommend that labor be updated quarterly, and the UPB be updated annually for mutually approved (owner and 4BT) line item additions.  Approved annual additions of line items become part of the standard UPB for the associated JOC.

4BT’s UPB’s and cost data are always locally researched.  We do not use national averages or cost factors.  The use of national averages and cost factors can introduce significant error in cost data.

We believe a properly researched UPB should enable a contractor to submit a co-efficient of greater than 1.0.  For example, a UPB should reflect the local cost of construction minus contractor profit and overhead.  Thus a contractor’s bid co-efficient for standard hour construction is generally in the 1.10-1.30 range.  

A partial listing of 4BT’s support services includes:

JOC Program Development

JOC Program Oversight, Including Formal and Informal Compliance Audits

JOC SaaS Technology Customization

Multi-level and Multi-format training

24/7 JOC Technology User Support Services  Online, Phone, email.

LEAN Building

Everything you need for LEAN Building and Project Planning, Procurement, and Project Delivery

Best value repair, renovation, maintenance, or new construction requires early and ongoing sharing of actionable information, starting with planning and design and continuing throughout the buildings life-cycle.

Robust processes are critical to best value attainment. Processes that define roles, responsibilities, workflows, and mutually beneficial outcomes. Selection of the appropriate LEAN planning, procurement, and project delivery method is step one. Leveraging appropriate technology then allows processes to be embedded and monitored as well as what information is aggregated, delivered, updated and modified.

Learn more about LEAN?

Learn more about supporting SaaS Technology?

BIM for FM, Uncategorized

Leveraging Building Information to Achieve Best Value

BEST VALUE & COMPLIANT Construction Planning, Procurement, And Project Delivery
“Some changes are so slow that you don’t notice, others are so fast that they don’t notice you *”   * Ashleigh Brilliant



The digitization of the construction industry is gradually transforming organizational models in our industry.  
 
– will change the way we produce
– will change the organization of the business and labor
– will change the product/service
– will change the demand
– will change the relationship with customers and suppliers .

Yet, measurable improvement in productivity and best value achievement will occur via process change.

Who seizes the opportunity of change taking place will survive, evolve, thrive.
 
Watch the video …

The construction sector is lagging behind other but by signs of awareness.  
 

 
Building in the Cloud “Free” is a completely free version, please create an account and start working right away.
 
If you need additional functionality, you can decide whether to move to level Professional or Ultimate.
Introduction To LEAN and LEAN Construction

Free eBOOK – An Introduction To LEAN and LEAN Construction

Free 16 page eBook that clearly defines LEAN, LEAN construction, and proven LEAN planning, procurement, and project delivery processes, tools, and services.

LEAN Construction eBOOK

LEAN is a robust, dynamic process framework focused upon desired outcomes.

The history of LEAN manufacturing begins with Ford and his ground-breaking automobile manufacturing company in the early 20th century. Students of LEAN history should begin with the Ford manufacturing plant in Highland Park, Michigan, USA., in 1913. It was there that Ford manufactured the Model T.   He did not focus on making people work harder. He wanted people, and his company as a whole, to work smarter.  

LEAN Construction is an adaptation of LEAN production techniques specifically and appropriately applied to the construction industry. Very broadly it can be characterized as techniques aimed at maximizing value and minimizing waste. Robust, proven implementations; such as Integrated Project Delivery, IPD, for major new construction, and Job Order Contracting, JOC, for repair, renovation, and minor new construction; have subsequently been implemented for decades.

LEAN JOC and IPD have proven to consistently improve productivity and quality as well as reduce waste, lower cost and speed delivery. It’s a real property owner’s responsibility to provide leadership, and drive the process.  This is done within an atmosphere of collaboration and mutual benefit. Tools, training, services, and support are readily available for any real property owner to drive consistent on-time, on-budget, quality construction outcomes.

Despite the proven benefits of LEAN construction, deployment has been limited to a small fraction (5% or less) of the industry. This is largely due to the cultural changes required for initial adoption and ongoing execution. LEAN construction requires fundamental changes in how people interact on a day to day basis.

Request your FREE eBOOK…

Causes of Construction Cost Overruns, Construction Cost Overruns

Mitigating the Causes of Construction Cost Overruns with LCPPP

Their are multiple causes of Construction Cost Overruns , some of which are noted in the following graphic.

In reality, however, virtually all negative causal factors can be eliminated or at least mitigated through the use of LEAN construction planning, procurement, and project delivery processes (LCPPP).

LCPPP processes have proven capable of a 90% success rate in the consistent delivery of quality repair, renovation, and new construction projects. This is a significant improvement over the AEC industry-wide average of only 10%-20% of all projects being completed on-time, on-budget, or in a manner satisfactory to project participants/stakeholders.

Examples of LCPPP include integrated project delivery (IPD) for major new construction projects and job order contracting (JOC) for repair, renovation, maintenance, and “minor” new construction. When implemented and managed properly, both methods are capable of consistently delivering BEST VALUE outcomes for all participants.

Tools and services are readily available to enable any organization to start the successful and ongoing deployment of LCPPP.

Facilities Asset Management
LCPPP via OpenJOC Job Order Contracting
Job Order Contracting, LEAN Job Order Contracting

LEAN Job Order Contracting

LEAN Job Order Contracting enable real property owners to Consistently Procure and Deliver Quality Repair, Renovation, and New Construction Project On-time and On-Budget

Waste and inefficiencies that cause repair, renovation, or new construction projects to fail to meet owners’ expectations are common. These issues can be minimized with Integrated Project Delivery (IPD) in the form of Job Order Contracting, a process that changes the traditional roles and relationships of key project stakeholders.

LEAN job order contracting
Integrated Job Order Contracting


Increased early and ongoing collaboration within a common data environment (CDE) consistently drives highest value project planning, procurement, and delivery outcomes.

LEAN job order contracting outperforms design-bid-build, design-build, and other forms of project delivery
with respect to performance, communication, change management, and business performance areas. Job Order Contracting (JOC) is a competitively bid, firm-fixed price, Indefinite Delivery Indefinite Quantity (IDIQ) delivery system. Under this system, the contract document defines a specific unit price book (UPB) which establishes unit base prices for a list of service items the contractor will provide during the term of the contract. The UPB should be locally researched and not based upon national averages, or rely upon cost factors for localization. Contract award is based on a coefficient which the contractor will multiply against the UPB prices and a best value selection process. The coefficient represents the contractor’s overhead and profit. Each task order is priced by multiplying the total of the prepriced UPB priced line items times the contractor’s coefficient.

Despite the ready availability of tools and services to deploy Job Order Contracting, transformational change is limited by current levels of real property owner leadership and competency. Integrate project delivery via LEAN Job Order Contracting is thus not prevalent throughout the architecture, engineering, construction, or facility management industries.

Evidence of superior outcomes can be quantified using key performance indicators (KPIs) and continuous improvement achieved. Virtually all construction planning, procurement, and project delivery attributes are enhanced using Job Order Contracting as a result of more engaged and empowered internal and external project teams greater stakeholder involvement.

Learn more…

LEAN job order contracting

Additional Information Resources for Job Order Contracting Best Management Practices:

ASU Alliance for Construction Excellence

Center for Job Order Excellence

JOC Resources

Clean Energy Rankings 2019

2019 Country, City, & State Clean Energy Ratings

The United States only ranks 10th with respect to energy efficiency actions. From a state perspective the Northeast and California lead the way, with Boston, San Francisco, and Seattle at the front from a cities perspective.

Bioswales and Green Infrastructure

Bioswales and Green Infrastructure and ….

Embracing green infrastructure as an approach and installing specific interventions comes with many challenges. It demands educating clients, communities, contractors, and designers; experimenting with new techniques and learning from failures; and making changes to policy and regulations.

What is Green Infrastructure? Storm water management and plant-based approaches to managing floodwaters.

Learn more…

Better Job Order Contracting

The Better Job Order Contracting Solution – It’s that simple…

LEAN Job Order Contracting, JOC, is the better solution in terms of cost and best value outcomes. LEAN JOC 4BT OpenJOC(TM) Job Order Contracting successfully integrates People, Process, Information, and Technology with a low cost solution.

Robust LEAN project delivery is provided via alignment of mutually beneficial goals for all participants, front end planning and advanced work packaging, metrics and KPIs, change management, collaborative dispute resolution, required initial and ongoing training, third-party audits of every project, continuous improvement via tracking and leveraging lessons learned, team building, and long term mutually beneficial relationships.

LEAN process and strategy, as well as owner leadership and competency are fundamentals to the consistent attainment of best value repair, renovation, maintenance, sustainability, and new construction outcomes. The 4BT OpenJOC Solution embeds fundamental LEAN processes and a common data environment withing a combined services and cloud deployed technology framework. LEAN process and common data are tailored to individual owner needs. Common data includes a continuously updated and locally researched detailed unit price book complete with labor, material, equipment details, separate demolition line items, and line item modifiers to account for quantities/means/methods…. all organized using CSI Masteformat.

Mitigate the waste commonly associated with construction/FM planning, procurement, project delivery through the implementation and use of of robust LEAN processes, actionable, detailed, and current cost data, and collaboration.

www.4bt.us

Uncategorized

Best Value Job Order Contacting Solution

Best Value Construction Planning, Procurement, and Project Delivery

All the tools and services to implement Best Value LEAN Job Order Contracting.

Whether you have an existing Job Order Contracting Program, or simply need to improve your outcomes, you can now correct non-performance issues and mitigate risk using robust LEAN planning, procurement, and project delivery methods via the 4BT OpenJOC(TM) Solution.

Integrating People, Process, Information, and Technology within an easy to use, proven LEAN Job Order Contracting framework. With phased adoption and implementation of LEAN job order contracting you can reduce waste and costs by up to 50% or more!

No alt text provided for this image

Learn more… A Simple Guide to LEAN Construction

Uncategorized

LEAN Job Order Contracting – Best Value Construction Planning, Procurement, and Project Delivery

LEAN Job Order Contracting enables Best Value Construction Planning, Procurement, and Project Delivery for real property owners and their selected service partners.

Integrating people, process, information, and technology is a core benefit provided by LEAN Job Order Contracting. It is applicable across virtually all organizations and sectors. Embedding LEAN processes and adapting them to specific organizational requirements enables a demand-based best value approach across all facilities repair, renovation, and new construction requirements.

LEAN Job Order Contracting

Owner LEADERSHIP is a core requirement for implementing best value facilities construction planning, procurement, and project delivery. Associated PLANNING, SUPPORT, EXECUTION/OPERATION, PERFORMANCE EVALUATIONS/METRICS, and CONTINUOUS IMPROVEMENT are equally fundamental to optimal outcomes.

Within the 4BT LEAN OpenJOC Framework, tools and services support and drive robust structure, policies, processes, and clarify roles and responsibilities.

Full financial visibility and transparency are provided in the form of a locally researched detailed unit price book (UPB). Objectives are clear due to the use of the UPB and an associated joint site walk, as well as several other requisite phases within a collaborative environment.

Learn more… The Simple Guide to LEAN Construction

Uncategorized

The 10 Fundamentals of LEAN Construction

The ten fundamentals of LEAN construction include…

1. Focus upon outcomes

2. Early and ongoing participation of all stakeholders and service providers

3. Mutual trust and respect

4. Engaging and leveraging the expertise of participants actually doing the work

5. Financial and task level transparency via locally researched detailed line item unit price book

6. Required collaboration

7. Shared risk/reward

8. Metrics/key performance indicators

9. Continuous improvement

10. Mandatory initial and ongoing multi-level/multi-format training



If you want to engage in LEAN theory, high level learning…. Google Kaizen, LEAN blackbelt last planner, et all. As to BIM, When considered a process, and when truly integrated with LEAN construction planning, procurement, and project management, BIM can indeed yield measurably improved outcomes.  That said, BIM as a technology, is not required to yield 50%+ improvements in outcomes.   In other words, LEAN is the major contributor, not BIM.    Until Owners realize this, little improvement in the current levels of rampant waste will occur.

On the other hand, if you want to practice LEAN construction planning, procurement, and project delivery, all the tools and services are readily available. Robust LEAN construction procurement, planning, and project delivery methods have exists for  over thirty years…. longer than BIM.   They have proven themselves, unlike BIM.



Learn more about LEAN construction? …. https://4bt.us/simple-guide-to-lean-construction/

alternative project delivery

Alternative Project Delivery for Construction – Benefits, Tools, and Resources

Smarter, faster, better…

Alternative Project Delivery (APD) offers the opportunity to achieve significant added value versus traditional design-bid-build, design-build, Construction Management at Risk (CMAR), Agency‐CM , and other “traditional” methods.

Leverage LEAN Planning, Procurement, and Project Delivery to Consistently Achieve Best Value

There are multiple types of alternative project delivery, with the most robust and well known being Integrated Project Delivery (IPD) for major new construction, and LEAN Job Order Contracting (OpenJOC-TM) for repair, renovation, maintenance, and “minor” new construction.

BEST VALUE & COMPLIANT Construction Planning, Procurement, And Project Delivery
LEAN Construction is the integration of people, process, information, and technology to drive mutually beneficial best value outcomes.



From concept to completion and beyond, LEAN alternative delivery, including IPD and LEAN JOC, improves the efficiency and effectiveness of virtually any repair, renovation, maintenance, sustainability, or new construction task.

While the robust forms of alternative project delivery have been available for decades, new integrated frameworks of tools and services that emphasize upfront collaboration with project owners, the public, designers and contractors have become available to dramatically reduce project delivery times, reduce costs, and improve overall levels of satisfaction. These methods allow for greater team-based solution exploration on an early and ongoing basis and create added efficiencies. improved cost visibility and cost control is provide through the use of locally researched detailed line item unit price book. Additionally, the knowledge of contractors is leveraged in design phase, drawing on their experiences to improve the proposed solution.

We have assisted numerous public sector agencies in exploring options for more effective project delivery, in developing the systems and processes to add these more efficient methods of planning, procurement, and project delivery to their programs.  We have built entirely new solutions and have also helped to refine existing systems.

We are Four BT, LLC, the “new kid on the block”, and we focus exclusively upon LEAN, BEST VALUE construction planning, procurement, and project delivery to drive optimal life-cycle management of the built environment.

Benefits of Alternative Project Delivery

  • Best Value
  • Easier, Lower Cost Procurement and Contracting
  • Consistent Ability to Meet Budget
  • Consistent Ability to Meet Schedule
  • Consistent Ability to Achieve Quality Requirements
  • Regulatory Compliance
  • Defined and Streamlined Workflows
  • Faster Mobilization
  • Full Financial Visibility and Transparency
  • Integration and Leverage of Team Experience
  • Reduced Project Risk
  • Significantly Improved Efficiency/Cost Effectiveness

Manage the PROCESS, Don’t MICROMANAGE PEOPLE!


1) Getting Detailed Line Item Proposals from Qualified
Contractors?

(2) Do you have definite LEAN workflows within a collaborative cloud environment?

3) Requiring initial and ongoing training for ALL participants?

4) Measuring acceptance of LEAN processes?

Fundamentals of Efficient Public Sector Construction Planning

Fundamentals of Efficient Public Sector Construction Planning, Procurement, and Project Delivery

The Fundamentals of Efficient Public Sector Construction Planning, Procurement, and Project Delivery are important to professionals hoping to meet their fiduciary responsibilities by maximizing the use of taxpayer funds.

It is the goal of this document to introduce public sector procurement, facilities management, and administration to the principles, processes, functions, tools, and methods consistent with LEAN construction planning, procurement, and project delivery. The importance of this information is non-trivial. If the information is understood and applied property, the consistent delivery of quality repair, renovation, maintenance, sustainability, and new construction projects on-time and on-budget becomes the norm versus the exception.

Collaborative Transparency – The concept of collaborative transparency simply means the early and ongoing sharing of information throughout a project life-cycle. This is achieved when detailed plans at every level of construction task breakdown, inclusive of labor, material, and equipment descriptions and costs, are shared by all participants and stakeholders. The most common and proven tools for this is a detailed, locally researched unit price book. The tasks should be organized using a common data architecture such as CSI Masterformat in order to maximize efficient use and reuse of information. Collaborative transparency can only occur when all parties have agreed to a multi-party agreement and associated operations manual/ execution guides that drives toward mutually beneficial outcomes. Look ahead planning and continuous improvement are virtually impossible without collaborative transparency and associated systems/frameworks that embedded the process.

Collaborative transparency is just one of several fundamentals serving a building blocks for Efficient Public Sector Construction Planning, Procurement, and Project Delivery. As this is simply and introduction to the concept, further insight into Collaborative Transparency will be reserved for other communications. Below is a simple listing the fundamentals, inclusive of Collaborative Transparency

Fundamentals of Efficient Public Sector Construction Planning, Procurement, and Project Delivery

  • Collaborative Transparency
  • Best Value Procurement
  • Focus Upon Outcomes
  • Program and Project Based Thinking
  • Full Team Members Trust/Respect
  • Long-term Mutually Beneficial Relationships
  • Key Performance Indicators
  • Continuous Improvement
  • Regular Third-party Compliance Audits
  • Mandatory Initial and Ongoing Training for ALL Participants and Stakeholders
  • Enabling Technology

The rampant failures and waste associated with traditional construction planing, procurement, and project delivery and associated inconsistent and inefficient methods of established detailed methods, time ], and cost, can be minimized through the use of LEAN Public Sector Construction Planning, Procurement, and Project Delivery.

Learn more…

Manage it all… with the 4BT best value procurement and project delivery system…

  • Programs
  • Contracts
  • Projects
  • Phases
  • Processes
  • Tasks / Operations

BEST VALUE Public Sector Construction

BEST VALUE Public Sector Construction Planning, Procurement, and Project Delivery

BEST VALUE Public Sector Construction Planning, Procurement, and Project Delivery requires the LEAN integration of People, Process, Information, and Technology.

BEST VALUE & COMPLIANT Construction Planning, Procurement, And Project Delivery

Tools and services are readily available to enable public sector real property owners to assure the consistent delivery of quality repair, renovation, and new construction projects on-time and on-budget, and to efficiently reduce deferred maintenance levels.

Leap forward by leveraging robust LEAN processes and solution to integrate internal and external professional building teams…specialists in planning, procurement, and project delivery. Launch successful strategies that leverage the existing capabilities to meets your organizational needs to survive and thrive.

The OpenJOC(TM) Framework brings varied skillsets together within a fully transparent, collaborative environment to drive optimal outcomes for all participants and stakeholders. Furthermore the goal is self-reliance for all team members and enhanced capabilities.

LEAN best management practices and a common data environment, inclusive of locally researched detail unit price construction tasked, are embedded within collaborative technology to lower initial deployment costs, assure consistency, and maximize productivity. Collaborative technology puts Program Management, Project Management, Estimate Management, Document Management, Contractor Management, Building Management, Asset Management, and Issue/Task Management… all in “one place”

LEAN Collaborative Construction Planning, Procurement, and Project Delivery Technology

Learn more…

LEAN Facilities Management

What Does It Take to Practice LEAN Facilities Management

LEAN Facilities management is a process that optimizes physical asset life-cycle reinvestment by focusing upon best value outcomes among all participants and stakeholders. The consistent delivery of prioritized quality repair, renovation, sustainability, maintenance and new construction projects on-time and on-budget is possible for any real property owner with sufficient leadership and domain-specific competency. All the tools and services are readily available to support associated required change management, LEAN process implementation, and continuous improvement.

What is LEAN Facilities Management

LEAN Facilities Management is a process-centric framework that integrates People, Process, Information, and Technology to enable optimal capital reinvestment and associated project delivery. Associated planning, procurement, and project delivery strategies are driven by the following…

  • Focus upon mutually beneficial outcomes
  • Full financial and technical visibility and transparency (Example: Locally researched detailed unit price book fully describing granular tasks associate with projects/work orders, include labor, material, and equipment descriptions and individual cost components.
  • Mutual trust and respect
  • Long-term relationships
  • Mandatory initial and ongoing training
  • A reward environment supportive of continuous improvement
  • Key performance indicators, KPIs
  • Enabling collaborative technology (Program Management, Project Management, Estimate Management, Proposal Management, Work Order Management, Document Management, Issue/Task Management, Building Management, Asset Management, Contractor/Subcontractor Management, Workflow Management
  • Regular third-party program audits
LEAN Facilities Management

LEAN Facilities Management drives best value outcomes for all participants and stakeholders… architects, engineers, builders, owners, building users, and the community.

LEAN Facilities Management

Learn more…. SIMPLE GUIDE TO LEAN

Uncategorized

Improving the Physical Environment, One LEAN Construction Project At a Time

Improving the physical environment, without the high levels of waste typically associated with construction planning, procurement, and project delivery, can be consistently accomplished with the application of LEAN processes.

Lean construction tools and services specifically integrate people, workflows, information, and technology. Tools and services are readily available to enable any organization to consistently deliver quality repair, renovation, and new construction projects on-time and on-budget. Organizations however must be ready to engage in significant change management and improve current levels of competency and leadership.

OoentJOC(TM) LEAN Construction Planning, Procurement, and Project Delivery Framework

The OpenJOC(TM) LEAN Solution enables owners to truly engage in best value construction planning, procurement, and project delivery.

Learn more…. THE SIMPLE GUIDE TO LEAN CONSTRUCTION

Uncategorized

Definition of Job Order Contracting

Job Order Contracting, JOC, isn’t simply a procurement method for construction services.

JOC is a LEAN Construction Planning, Procurement and Project Delivery Method.

JOC has evolved to enable the consistent delivery of quality repair, renovation, maintenance, sustainability, and new construction projects on-time, and on-budget. Furthermore, these projects are delivered to the benefit of ALL participants and shareholders.

If your public sector organization isn’t familiar with JOC, or is using older deployments of JOC and would like to truly engage in best value construction planning, procurement, and project delivery, it’s time to learn about LEAN Job Order Contracting. LEAN Job Order Contracting, such as the 4BT OpenJOC(TM) Solution, bring collaboration, efficiency, and compliance to a whole new level.

Learn more…. THE SIMPLE GUIDE TO LEAN CONSTRUCTION

BEST VALUE & COMPLIANT Construction Planning, Procurement, And Project Delivery
The Proven Approach to LEAN Construction Delivery
BEST VALUE & COMPLIANT Construction Planning, Procurement, And Project Delivery

BEST VALUE & COMPLIANT Construction Planning, Procurement, And Project Delivery

BEST VALUE & COMPLIANT Construction Planning, Procurement, And Project Delivery can be deployed and managed today using a robust suite LEAN tools and services.

The easiest way to describe LEAN and BEST VALUE construction, is to note what it is not. It is not design-bid-build, design-build, CM@R, LastPlanner(TM), black belt, kaizen, et al. LEAN, BEST VALUE construction, planning, procurement, and project delivery is embodied with collaborative processes and frameworks such as integrated project delivery, IPD, and LEAN job order contacting (i.e. the OpenJOC(TM) Solution). Both LEAN and OpenJOC Job Order Contracting  go beyond identification of waste and definition of value. They consistently enable predictable project outcomes including the ongoing delivery of quality repair, renovation, and new construction projects on-time and on-budget.

LEAN, best value, practices and tools fully integrated people, process, information, and technology

BEST VALUE & COMPLIANT Construction Planning, Procurement, And Project Delivery

As you already know, 70%+ of projects are delivered late, 73% of project are delivered over budget, rework/change orders/waste are common, teamwork is poor, risk is high, and overall satisfaction is low. With LEAN, best value deployment 90%+ of all repair, renovation, and new construction projects are delivered on-time, on-budget, and to the satisfaction of all participants.

So why is is that fewer than 5% of all real property owners consistently and appropriated deploy LEAN, best value methods? Unfortunately the answers is simple. A concentrated effort at improving owner education and leadership is need. Far too much focus has been upon so called “technology solutions” such as BIM, and far to little upon LEAN process and total cost of ownership asset management methods.

What is LEAN Construction?

LEAN construction is a framework that integrated people, process, information, and technology focus upon the delivery of best value outcomes and associated continuous improvement. Far more than simply “identifying waste”, LEAN planning, procurement, and construction spans all aspects of aspects of the build environment repair, renovation, and construction life-cycle… from concept, through procurement, execution, and beyond. See: Simple Guide to LEAN Construction

Core LEAN, Best Value Concepts, Tools, and Services

Here is a listing of core LEAN, best value concepts, tools, and services that, when combined, successfully integrate people, process, information, and tools to consistently deliver optimal outcomes for all participants and stakeholders:

  • Focus upon outcomes
  • Early and ongoing team member communication
  • Best value procurement
  • Change management (recognition that traditional “business methods” are flawed, and support for robust LEAN practices)
  • Mandatory initial and ongoing training
  • Long-term relationships based upon trust/respect and mutually beneficial outcomes
  • Empowerment of local knowledge and expertise combined with global oversight
  • Full financial transparency, inclusive of a current, actionable, and locally researched detailed unit price database
  • Co-location of owners/service providers
  • Key performance indicators
  • Regular third party audits
  • Continuous improvement
  • Enabling technology, inclusive of program management, project management, estimate management, proposal management, document management, issues/task management, building/space/asset management, work order management, contractor management, subcontractor management…
  • Common data environment
  • Empowerment of self-sufficiency for all participants (i.e. minimal long term reliance upon “consultants” for operational support.
digitaltwin
LEAN Physical Asset Management

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LEAN Construction Tools

Practice LEAN Construction Today!

Innovative suite of tools and services drive LEAN construction deployment.

The fundamental concepts of LEAN construction planning, procurement, and project delivery can now be implemented by any real property owners to consistently achieve quality, on-time, and on-budget outcomes.

All to tools and support services are readily available to drive the following best value processes and/or outcomes:

  • Focus upon outcomes
  • Common Data Environment, including locally researched detailed item unit prices
  • Full financial visibility and transparency
  • Mutual trust and respect
  • Long-term relationships
  • Shared risk/reward
  • Compliance
  • Collaborative cloud technology – Program, Project, Work Order, Estimate and Document Management,

The OpenJOC(TM) LEAN Solution integrates People, Process, Information, and Technology.

Internal and external repair, renovation, maintenance, and new construction teams can now collaborate to mitigate waste, reduce deferred maintenance, and efficiently meet organizational needs.

LEARN MORE>>> Simple Guide to LEAN Construction Delivery

LEAN Construction

Ditch the Sticky Notes and Actually Practice LEAN Construction Planning, Procurement, and Project Delivery

Still working with sticky notes and attempting to solve your facilities repair, renovation, maintenance, sustainability, and construction issues?

Here are six signs that it’s time to move beyond sticky notes…

1. Renovation, repair, and construction projects are late, over budget, and building users are unhappy.

2. Deferred maintenance is rising versus shrinking.

3. You LEAN construction solution consisted of sticky notes.

4. Project management is done with emails, spreadsheets, and paper.

5. Estimates are provided lump sums provided by subs and locally researched UPBs are not used.

6. Typical team response is “That’s the way we’ve always done it. “

Ditch the whiteboards, post-its, and deploy proven LEAN construction delivery tools and processes supported by collaborative cloud technology.

Learn more … Simple Guide to LEAN Construction

LEAN Construction Delivery
Facilities Life-Cycle Management

LEAN, BIM, and Measurably Improving Facilities Life-Cycle Management

BIM (Building Information Modeling) is the efficient management of the life-cycle of the built environment supported by digital technology.

It’s important to not that “3D” or “3D visualization” is not include in this core definition of BIM.

BIM can provide huge benefits to the stakeholders in all phases of the building process – Planning; Design; Construction; and Operations and Maintenance. The most significant benefit is total-cost-of-ownership management throughout the life-cycle of a physical asset. Improvements in this area optimally allocate resources towards meeting the physical and functional requirements of physical buildings and other structures. The Operation & Maintenance (O&M) phase spans a very long period. O&M costs far exceed those of any previous phase, averaging 70% to 80% of total life-cycle costs.

The adoption of digital processes and methodologies supported by a robust and reliable information systems within common data environments and the associated integration of LEAN processes for planning, procurement, and project delivery, enable significantly improve financial and physical performance outcomes.  Overall productivity and user physical asset performance are measurably improved.

To do so, however, it needs to operate in shared common data environment based on LEAN and other process management practices that fully exploit the best available technologies.

The main issue is the need for greater leadership and competency on the part of real property owners. Fortunately all the tools and support services are readily available to owners that are ready to engage in LEAN processes and integrate People, Process, Information, & Technology in new ways.

Learn more…

Construction Project Delivery System

The Proven Construction Project Delivery System

The consistent delivery of quality repair, renovation, maintenance, and new construction projects on-time, on-budget, and to everyone’s satisfaction is routine for facilities management professionals with appropriate leadership skills and competency.

LEAN construction delivery systems assure high performance and full financial visibility. Successful implementation, however, requires the integration of new managerial operating approaches. Put another way, people, processes, information, and technology must be implemented in ways significantly different from traditional project delivery methods such as design-bid-build and design build.

The focus of LEAN construction delivery methods such ad Integrated Project Delivery and the OpenJOC LEAN Solution(TM) is upon best value outcomes for all participants and stakeholders.

WHAT IS A PROJECT DELIVERY SYSTEM

A project delivery system is process used for the planning, procurement, and execution a repair, renovation, maintenance, or new construction activities. It spans multiple disciplines and knowledge domains. Characteristics of optimal project delivery systems include… 1. Mandatory early and ongoing cross-functional discovery and collaboration among all participants. 2. Common data environment, including a locally researched unit price detailed unit price book organized using CSI Masterformat. 3. Long-term relationships built upon mutual trust and respect. 4. Shared risk/reward. 5. Written multi-party agreements with associated operations manuals / execution guides. 6. LEAN processes and workflows. 7. Supporting technology. 8. Key performance metrics.

LEAN construction project delivery optimizes the arrangement of relationships among the various parties involved in the planning, procurement, and construction phases Both the the scope and distribution of responsibility and risk are fully defined and shared. Focus is upon efficient delivery to the owner. Workflows, timing and sequencing, acceptance criteria, are all fully documented.

Construction Project Delivery System

Learn more…

Digital Twin

Digital Twin – Aligning the physical and functional status of buildings and other physical objects with a corresponding digital model makes it possible to monitor and optimally manage capital reinvestment throughout their life-cycle.

Aligning the physical and functional status of buildings and other physical objects with a corresponding digital model makes it possible to monitor and optimally manage capital reinvestment throughout their life-cycle.

Tools and support services are readily available to develop and maintain “digital twins” of physical assets. Use of these tools enable optimal decision-making through the real-time availability of current, actionable information.

Requisite Components of a Physical Asset Life-cycle Management Solution

  • LEAN Collaborative Planning, Procurement, and Project Delivery Methodology with a focus upon BEST VALUE OUTCOMES
  • Common Data Environment (CDE) using common standards terms, definitions, and robust data architectures. Example: Locally researched detailed line item unit price book, organized using CSI Masterformat
  • Integrated Multi-party Contracts and Operating Manuals/Operations Guides
  • Enabling Technology that embeds LEAN processes and centrally manages Programs, Projects, Estimates, Work Orders, People, Work Orders, and Documents
  • Quantitative and Qualitative Metrics, including key performance indicators (KPIs)
  • Competent Owners that demonstrate LEADERSHIP

Learn more… Simple Guide to LEAN Planning, Procurement, and Project Delivery

digitaltwin
AECOO Performance

Improve AECOO Performance Today!

The successful integration of People, Process, Information, and Technology leads to the consistent delivery of quality repair, renovation, maintenance, sustainability, and new construction projects on-time and on-budget.

While technology is an enabler, its primary function is to reduce the cost of process deployment, improve overall consistency, reduce waste, and enable cost-effective proper oversight.. with the result being improved overall productivity. That said, PROCESS and desired OUTCOMES must be the primary focus, not technology! Automating traditional or ‘ad hoc’ ways of doing things doesn’t offer a path towards best value outcomes.

I have dedicated a fair portion of my life to improving physical asset life-cycle total cost of ownership management. This has enabled me to work with commercial property owners and associated service partners of all sizes, including the largest. Architects, engineers, builders, and owners would benefit by fundamentally changing the way projects are conceived, budgeted, procured, organized and executed. In fact, a shift from Project Management to Program Management is needed.

The issue with the endemic lack of productivity across the AECOO sector has little to do with technology related issues. The real problem is a fundamental lack of understanding of life-cycle asset management and LEAN planning, procurement, and project delivery processes.

Tools and support services are readily available today that virtually assure consistent delivery of of all repair, renovation, and construction projects on-time, on-budget, and to the satisfaction of all participants and stakeholders. This level of performance if clearly better than the industry norm of 20%!

The barrier lies in that organizations must be ready to shift from inefficiently operating in adversarial silos and process that don’t provide financial visibility. Real property owners should seriously consider best value processes such as Integrated Project Delivery, IPD, for major new construction, and LEAN Job Order Contracting, JOC, for repair, renovation, maintenance, sustainability, and minor new construction.

Both IPD and JOC, when properly deployed, assure an environment in which clearly structured information is shared on an early and ongoing basis with all. A locally researched detailed unit price book, organized using a standard data architecture such as CSI Masterformat, provides a granular list of all construction related activities complete with task description, and labor, material, equipment, and crew information. This level of standardized information sharing assures a clear scope of work and full financial and technical transparency.

Both IPD and JOC also require best value procurement and detailed associated workflows. Roles, responsibilities, workflow, and deliverables are known up front and documented via a multi-party contract and associated Execution Guide or Operations Manual.

Traditional planning, procurement, and project delivery methods are incompatible with best value outcomes, and remain the primary cause for AECOO waste and dysfunction. Until organizations, especially real property owners understand this fundamental fact, technology offers little respite.

Learn more… A SImple Guide to LEAN Construction

Integrated Project Delivery Solution

LEANbuild(TM) Integrated Project Delivery Solution

A Common Work Environment for Real Property Owners, AEs, Builders, and Building Users

Best value facility and asset management can be achieved through the application of LEAN planning, procurement, and project delivery methods. LEAN methods assure alignment of facilities/infrastructure needs with organizational objectives and provide an operational framework for best value planning, procurement, and project execution.

Benefits of LEAN integrated project delivery …

  • Demonstrate cost effectiveness to management, clients, building users…
  • Defined best value acquisition strategy
  • Integrated program and project management
  • Common data environment, language, and shared locally researched detailed construction cost data
  • Risk reduction
  • Integrate previously fragmented areas of expertise – roles, units, elements
  • Eliminate duplicated activities
  • Shared work breakdown structure
  • Consistent proven workflows
  • Allocate more dollars towards repair, renovation, maintenance, and construction versus administration and waste
  • Full traceability, single, audit worthy source of current and historical information
  • Defined schedules
  • Acceptance criteria
  • Defined workflows, approvals, documents, and packages
  • Variance mitigation and reporting
  • Tools, training , and support services

Fundamentals of LEAN facilities and asset management… Knowledge & Practices, Competences, Standards, Workflows, & Metrics

  • Value definition across multiple participants and stakeholders
  • Leverage expertise of those doing the work
  • Global oversight and use of KPIs
  • Common data environment
  • Life-cycle versus first-cost perspective
  • Define workflows, roles and responsibilities, deliverables
  • Owner leadership and competency
  • Long-term mutually beneficial relationships
  • Shared risk/reward
  • Mandatory initial and ongoing training for all participants
  • Continuous improvement
  • Regular independent audits
  • Actionable current information
Facilities Asset Management, LEAN Facilities Asset Management

Facilities Asset Management

Efficient LEAN facilities asset management management can help real proper owner optimize physical and functional condition levels while optimizing capital reinvestment. All the tools and services are readily available to facilities management professional. The biggest challenge for organizations to align asset management objectives with appropriate LEAN planning, procurement, and project delivery methods.

Asset management involves the balance of costs, opportunities and risks against the desired performance of assets, to achieve organisational objectives. This process requires owner leadership and competency, robust LEAN management frameworks, and current actionable information.

Facilities Asset Management
Facilities Asset Management
Facilities Asset Management
Actionable LEAN Construction Delivery Framework

Actionable LEAN Construction Delivery Framework

Actionable LEAN Construction Delivery Framework
Actionable LEAN Construction Delivery Framework

While it’s important to study Kaizen, Last Planner(TM), Six Sigma, and other LEAN information sources, an Actionable LEAN Construction Delivery Framework is required in order to consistently delivery quality repair, renovation,and new construction projects today.

All of the tools and services needed to implement LEAN construction planning, procurement, and project delivery are readily available to real property owners that can demonstrate the leadership and competence needed to successfully conduct change management.

If your organization is ready, learn more here….

Total Construction Cost Visibility

Total Construction Cost Visibility and Transparency with LEAN

Total construction cost visibility and transparency are available with 4BT’s LEAN planning, procurement, and project delivery . Traditional construction delivery methods are incompatible with best value outcomes.

Total Construction Cost Visibility
Consistently Achieve Best Value Construction Outcomes

Fundamentals of Total Construction Cost Visibility an Transparency

  • Early collaboration and information sharing of all project participants and stakeholders (AEs, builders, facilities management, building users…)
  • Clearly defined project scope, including the use of a locally researched detailed unit price book (UPB), organized using CSI Masterformat
  • LEAN workflows that target best value outcomes.
  • Clearly defined and documented goals
  • LEAN construction delivery methods (Job Order Contracting, Integrated Project Delivery…)
  • Required initial and ongoing training for all participants
  • Defined communication plan, inclusive of fully defined roles, responsibilities, constraints, and desired outcomes
  • Joint site visits
  • Leverage the experience of those actually doing the work
Technology Matters for Job Order Contracting

Technology Matters for Job Order Contracting

Are you using spreadsheets and file cabinets for managing your Job Order Contract? The simple fact is that technology matters for Job Order Contracting. In fact, technology is a requisite tool to assure maximum productivity, compliance, and more!

Furthermore, I am not just taking about a estimating program with a unit price book. I am taking about technology that supports JOC Program, Project, Estimate, Document, Issue, Task, Contractor, and Subcontractor Management… at a minimum! Not to mention Building, Space, Component, and Maintenance Management as well as integration with BIM.

Why is technology so important? Let’s take a “basic” example. Estimating is an important component of a JOC Program for Owners, Contractor, and Subs. Below is a partial list of functions and documents associated with a components. Be honest, can you really access, edit, and update the current versions, and historical versions of all of this information from your spreadsheet and file cabinet?

  • memos,
  • minutes of meetings,
  • e-mails,
  • quotations,
  • list of drawings,
  • scopes of work,
  • sketches,
  • work breakdown structure,
  • conference calls,
  • important telephone conversations,
  • scope revisions,
  • photographs / videos & site visit reports
  • UPBs
  • co-efficients
  • approvals
  • relevant team members and information

And that’s just PART of what’s involved in creating internal owner estimates or contractor proposals…. and PART of the overall JOC process.

Oh, and one more thing, what will happen if there is an independent audit of your JOC Program?

JOC products and services are readily available to support a fully compliant, efficient JOC Program. Learn more?

Best Value LEAN Job Order Contract

Best Value LEAN Job Order Contract

All Job Order Contracts (JOC) are not the same. While JOC is capable of delivering best value repair, renovation, maintenance, and new construction projects, few programs are deployed using fundamental LEAN JOC best management practices.

Lean JOC

DOs

  • Procure JOC products and support services on a firm, fixed fee basis. Services and software should be procured solely based upon quantity.
  • Focus upon mutually beneficial outcomes for all participants and stakeholders
  • Require initial and ongoing training for all participants
  • Confirm that each project is an acceptable candidate for JOC
  • Leverage enabling, shared technology providing Program Management, Project Management, Estimate Management, Proposal Management, Document Management, Internal communications versus email, Issue
  • Follow a robust LEAN process and associated workflows, including Scope of Work via joint site visits
  • Select appropriate JOC contractors and develop long-term relationships
  • Monitor and assure full compliance

Don’ts

  • Procure JOC products and services as a percent (%) of JOC construction volume
  • Use joint simply to speed procurement, or bypass important procurement checks and balances
  • Rely upon a JOC consultant to “manage a JOC Program” indefinitely.
  • Accept lump sump contractors or subcontractor quotes
  • Use “national average” unit price books with, or without location factors
LEAN Job Order Contract
Best Value LEAN Job Order Contracting
www.4bt.us
LEAN Construction

LEAN Construction – Top Down or Bottom Up?

LEAN construction, whether new builds, renovation, repair, or maintenance, requires global oversight and local empowerment. Those doing the work must be allowed to make decisions, but within a framework that includes LEAN workflows, processes, standardized information, and full transparency.

Robust LEAN Repair, Renovation, and Construction Framework

While implementation methods can be tailored to organizational requirements, owner leadership and commitment, and empowerment of service providers remains constant.

From a practical perspective proven LEAN construction methods and tools are readily available as well as full support services. Digital technologies play an important role in reducing implementation costs, improving overall productivity and compliance, while also supporting management activities.

Top Down – Overall strategy, framework, and key performance indicators are driven by the real property owner.

Bottom Up – Local work tasks, crew selection and management are all performed on-site.

Both owners are service providers are responsible for scope definition, joint site visits, and overall program and project success.

Key Considerations

  • Quality outcome / best value focus
  • Integration of multi-discipline teams – People, Process, Information, & Technology
  • Global oversight with localized decision-making
  • Common, fully transparent information environment, including costs
  • Collaborative cloud-based supporting technology (fragmented tools do not support a LEAN environment)
  • Key performance indicators to drive continuous improvement (you can’t manage what you don’t measure) – Compare crew performance, output, and associated costs with locally researched detailed line item task information
Sample LEAN Workflow

Four BT, LLC – LEAN Construction Delivery Tools and Services

Uncategorized

Construction Sector Waste Due to Flawed Decision-Making

Best value construction planning, procurement, and project delivery methods are readily available to virtually assure maximized environmental and economic returns on AEC, facilities management, and other physical infrastructure repair, renovation, or new construction projects.

Flawed-decision making process on the part of real property owners is the primary reason for the AECOO sectors legacy of waste.

Decision-making methods within LEAN planning, procurement, and project delivery frameworks enable and assure full stakeholder (buyers, designers, builders, building users, FMers…) participation in early stages of the project considerations and support collaboration among previously conflicting sustainable criteria and adversarial team members.

Robust LEAN planning, procurement, and project delivery methods such as Integrated Project Delivery and Job Order Contracting (1) Define the goal and review alternatives for reaching it in a detailed and fully transparent manner, (2) Establish priorities and goals within an environment of shared risk and reward  (3) Follow defined processes and workflows to communicate and synthesize information and decisions and (4) Continuously check and improve upon the outcomes and proceses.

FACTOR/PROCESSLEANNOT LEAN
OutcomesLife-cycle basedFirst-cost centric
Decision-makingInput from those using the result and those doing the work Owner-centric, closed-door
Information accessFull visualization and transparency throughout processSilo-based information access
DocumentationFull document management system tracking current information and all revision – Centralized cloud-based access.Paper-based, and/or email-centric
…

LEAN Construction Delivery

LEAN Construction Adoption Delayed by Industry Mind-set

Specific to construction, and more importantly LEAN Construction Planning, Procurement, and Project Delivery, emphasis upon process and an overall program approach is required to delivery consistent and significant outcome improvement.    Better owner leadership and competency is sorely needed.   Few owners even understand IPD whether it be for major new construction, or LEAN Job Order Contracting,JOC, for repair, renovation, maintenance, and new construction. 

An owner focus upon programs and process versus projects would benefit all.

Simple Guide to LEAN Construction @  https://4bt.us/simple-guide-to-lean-construction/

Common Facilities Management Challenges

Overcoming Common Facilities Management Challenges – 2019 and Beyond!

Common facilities management challenges can be mitigated using LEAN alternative construction planning, procurement, and project delivery.

Common Facilities Management Challenges:

  1. Limited Budget
  2. Limited Resources & Staff
  3. Deferred Maintenance
  4. Prioritizing Projects
  5. Meeting Project Timelines

All of these issues and more are addressed using LEAN alternative construction.

Early collaboration and other associated key requirements of LEAN construction delivery methods virtually eliminate waste and deliver the highest project value to owners and AEC service providers. By reducing waste, existing budgets and staff can be optimized and deferred maintenance reduction accelerated.

There are currently two (2) proven forms of LEAN construction delivery, Integrated Project Delivery, IPD, for major new construction, and Job Order Contracting, JOC, for repair, renovation, maintenance, sustainability, and “minor” new construction. All the associated products, tools, and services are also readily available to support consistent, best value implementation.

That said, their are multiple roadblocks to an industry-wide shift towards these best value solutions:

  1. Need for higher levels of real property owner leadership and competency
  2. Not all tools, products, and services associated with LEAN construction delivery are the same
  3. Unfortunate industry focus upon technology versus process improvement
  4. Traditional primary consideration of “first costs” versus “life-cycle costs” or “total costs”

Project Delivery Method

A project/construction delivery method/system is defined as “the system that defines the relationship between different contracting parties and the timing of involvement in that relationship”. (Hanna 2010). It is the project delivery system that ultimately impacts eventual success or failure more than any other single element.

Traditional project delivery methods include, but are not limited to the following: construction management at risk (CMR), design-build (DB), and design-bid-build (DBB). While DBB is the least integrated approach, none of these methods consistently deliver the superior quality, productivity, and satisfaction of either IPD or JOC.

Traditional Project Delivery Methods
Integrated Project Delivery Methods

The proven ability of LEAN construction planning, procurement, and projects delivery methods to consistently deliver quality repair, renovation, and new construction project on-time and on-budget, should result in more owners considering their use. Hopefully the adoption process will accelerate to help limited the 30%+ of waste rampant across the construction sector.

Characteristics of Integrated Project Delivery

• Mutual respect and trust 
• Key participants bound together as equals 
• Shared financial risk and reward based on project outcomes 
• Liability waivers between key participants 
• Fiscal transparency between key participants (Example: Use of locally researched detailed line item unit price book, UPB)
• Early involvement of key participants 
• Intensified design 
• Jointly developed project target criteria (Example: Joint site visit and shared UPB use)
• Collaborative decision making 
• Open communication

Unit Price Book

The importance of a locally researched detailed unit price book, in combination with an LEAN integrated project delivery approach can not be overstated. Labor is the largest cost component of a construction project accounting for 40-60% of total cost. It is therefore critical to first accurately determine labor costs, and secondly to assure that labor is used efficiently. The use of lump sum contractor or subcontractor quotes, or national average price data (with or without location factors) do not provide the cost visibility of a locally researched unit price book. Furthermore, as only 42% of labor to is typically value added to a construction project using traditional project delivery, the need for LEAN construction adoption becomes clear.

Benefits of LEAN Construction Delivery Methods – IPD/JOC… (Various quantitative and qualitative surveys)

  • Reduced number of change orders
  • Overall cost savings
  • Shorter total project delivery schedules
  • Fewer requests for information
  • Lower construction administrative costs and burden
  • Greater overall satisfaction of all participants and stakeholders
IPD vs. Traditional Construction Benefits – Quantitative Study (2012 Asmar/Hanna)
Note: Probability Value = P Value = Statistically significant as P < 0.05 and statistically highly significant as P < 0.001 (less than one in a thousand chance of being wrong).
alternative project delivery
Integrate People, Process, Information, & Technology
Alternative Project Delivery Tools

Alternative Project Delivery Tools Drive Significant Construction Productivity Improvement and Best Value

Early collaboration and other associated key requirements of LEAN construction delivery methods virtually eliminate waste and deliver the highest value projects to owners and AEC service providers.

There are currently two (2) proven forms of LEAN construction delivery, Integrated Project Delivery, IPD, for major new construction, and Job Order Contracting, JOC, for repair, renovation, maintenance, sustainability, and “minor” new construction. All the associated products, tools, and services are also readily available to support consistent, best value implementation.

That said, their are multiple roadblocks to an industry-wide shift towards these best value solutions:

  1. Need for higher levels of real property owner leadership and competency
  2. Not all tools, products, and services associated with LEAN construction delivery are the same
  3. Unfortunate industry focus upon technology versus process improvement
  4. Traditional primary consideration of “first costs” versus “life-cycle costs” or “total costs”

Project Delivery Method

A project/construction delivery method/system is defined as “the system that defines the relationship between different contracting parties and the timing of involvement in that relationship”. (Hanna 2010). It is the project delivery system that ultimately impacts eventual success or failure more than any other single element.

Traditional project delivery methods include, but are not limited to the following: construction management at risk (CMR), design-build (DB), and design-bid-build (DBB). While DBB is the least integrated approach, none of these methods consistently deliver the superior quality, productivity, and satisfaction of either IPD or JOC.

Traditional Project Delivery Methods
Integrated Project Delivery Methods

The proven ability of LEAN construction planning, procurement, and projects delivery methods to consistently deliver quality repair, renovation, and new construction project on-time and on-budget, should result in more owners considering their use. Hopefully the adoption process will accelerate to help limited the 30%+ of waste rampant across the construction sector.

Characteristics of Integrated Project Delivery

• Mutual respect and trust
• Key participants bound together as equals
• Shared financial risk and reward based on project outcomes
• Liability waivers between key participants
• Fiscal transparency between key participants (Example: Use of locally researched detailed line item unit price book, UPB)
• Early involvement of key participants
• Intensified design
• Jointly developed project target criteria (Example: Joint site visit and shared UPB use)
• Collaborative decision making
• Open communication

Unit Price Book

The importance of a locally researched detailed unit price book, in combination with an LEAN integrated project delivery approach can not be overstated. Labor is the largest cost component of a construction project accounting for 40-60% of total cost. It is therefore critical to first accurately determine labor costs, and secondly to assure that labor is used efficiently. The use of lump sum contractor or subcontractor quotes, or national average price data (with or without location factors) do not provide the cost visibility of a locally researched unit price book. Furthermore, as only 42% of labor to is typically value added to a construction project using traditional project delivery, the need for LEAN construction adoption becomes clear.

Benefits of LEAN Construction Delivery Methods – IPD/JOC… (Various quantitative and qualitative surveys)

  • Reduced number of change orders
  • Overall cost savings
  • Shorter total project delivery schedules
  • Fewer requests for information
  • Lower construction administrative costs and burden
  • Greater overall satisfaction of all participants and stakeholders
IPD vs. Traditional Construction Benefits – Quantitative Study (2012 Asmar/Hanna)
Note: Probability Value = P Value = Statistically significant as P < 0.05 and statistically highly significant as P < 0.001 (less than one in a thousand chance of being wrong).
alternative project delivery
Integrate People, Process, Information, & Technology
Why Facilities Repair, Renovation, and Construction Projects Fail

Why Facilities Repair, Renovation, and Construction Projects Fail

  1. Poor Leadership – Owner leadership and competency is critical. At the end of the day, the vast majority of projects are late, over budget, or otherwise unsatisfactory due to owners lack of planning, procurement, selected project delivery method, or overall poor management. Inadequate knowledge of fundamental LEAN construction processes and asset total cost of ownership management principles is commonplace.
  2. Lack of Outcome Focus – All internal and external team members must have a joint focus upon mutually beneficial outcomes. While this is a core aspect of LEAN, it is rarely the case in common practice. Change management is sorely needed throughout the AECOO sector. Traditional project delivery methods, and even design-build, fail to consistently produce the superior outcomes of LEAN construction methods such as Integrated Project Delivery and Job Order Contracting.
  3. Inadequate Scope of Work – A poorly defined and/or poorly defined scope of work spells disaster for any construction project and results in cost overruns, change orders, and legal disputes.
  4. Non-standardized and non-centralized information – One example is the failure to consistently use locally researched detailed line item construction cost data and associated organization using CSI MasterFormat. The common use of granular construction task information, in plain English, complete with labor, material, equipment and crew breakdowns services to fully communicate Scope of Work. (Note: Using a national average cost database is not the sames as using a locally researched database. Furthermore, using economic cost factors to update information is also problematic with respect to producing current actionable information.)
  5. Improper Use of Technology – Far too many organizations consider technology a solution versus an enabler. Technology should ALWAYS be secondary to selecting and assuring appropriate processes, construction delivery methods, documentation, team selection/development, etc. Technology is not a solution, but rather an enabler.
  6. Failure to Define Success – Quantitative key performance indicators are needed to establish measurable goals and what is considered a successful outcome. In short, “it is impossible to manage what you don’t measure”.

Learn how to consistently deliver repair, renovation, and new construction projects on-time, on-budget, and to everyone’s satisfaction. Simple Guide to LEAN Construction.

Construction project fail due to poor leadership, lack of outcome focus, inadequate scope of work, non-standardized information, and lack of metrics.

2019 Construction Cost Estimating, Construction Cost Estimating, cost estimating

2019 Construction Cost Estimating

Best practice, consistent, and efficient construction cost estimating should consider Owner, Builder, and AE requirements. Here’s a shortlist for your consideration and comment.

Detailed line item construction cost estimating optimally communicates scope of work while providing full financial transparency and visibility.

“Eighty-five percent of the reasons for failure are deficiencies in the systems and process rather than the employee. The role of management is to change the process rather than badgering individuals to do better.”
W. Edwards Deming


1. EXPERIENCE, EXPERIENCE, EXPERIENCE. Nothing is more important than decades of actual experience in the field as well as with detailed line item experience.

2. COMMUNICATION – Use industry standard terms and communicate in plain English for each construction task. Minimize the use of acronyms and/or abbreviations. In fact only use abbreviations for units of measure.

3. Common data format (CDE) – Use CSI MasterFormt (50 division) to organize data as well as UNIFORMAT for higher level groupings. This includes the use of a LOCALLY RESEARCHED unit price commercial construction cost database. You can’t know or keep up to date on everything, and even if you did/could, this is a great way to supplement your alternatively sourced cost data. DO NOT USE a national unit cost book and/or location factors/indexes.  The latter will introduce significant error, especially with regard to labor costs. Assure labor, material, and equipment breakdowns are available for EACH task as appropriate.

4. Focus upon process, especially LEAN planning, procurement, and project delivery methods that have proven to efficiently integrate PEOPLE, PROCESS, INFORMATION, and TECHNOLOGY in order to delivery optimal value.

LEARN MORE…

Collaborative Construction, LEAN Construction

How Your Organization Can Implement Collaborative Construction, Implement LEAN Planning, Procurement, Project Delivery and Consistently Achieve BEST VALUE OUTCOMES

Col-lab-o-ra-tion: The situation of two or more people (organizations) working to create or achieve a common goal.

Proven collaborative construction delivery methods have existed for decades. Today, tools and services are readily available to support any real property owner with requisite levels of leadership and competency. These solutions can consistently assure that quality renovation, repair, and new construction projects are delivered on-time and on-budget. The levels of performance attainable by LEAN collaborative processes CAN NOT be achieved using design-bid-build, design-build, or other “traditional” forms of project planning, procurement, and delivery. (See… Simple Guide to LEAN Construction.)

LEAN Collaborative Construction Planning, Procurement, and Project Delivery

Technology

It’s important to understand the role of technology with respect to collaboration and change management. Technology is an enabler and should not be a goal in itself. For example, the excessive focus and marketing of BIM has done little to improve productivity throughout the construction and facilities management sectors.

Sustained measurable improvement productivity, quality, and return-on-investment can only be achieve by a focus upon the development, support, and ongoing improvement of collaborative LEAN processes. (Collaborative technology)

Proven Solutions

Integrated Project Delivery, IPD, for major new construction, and Job Order Contracting, JOC, for repair, renovation, sustainability, and minor new construction are both capable of consistently delivering quality, best value outcomes for all participants and stakeholders. That said, not all implementations or associated tools and services for IPD and JOC are the same. Appropriate due diligence is required throughout any associated research, procurement, and implementation programs.

A selected LEAN construction planning, procurement, and project delivery framework and toolset includes…. 1.) a common data environment, CDE, including a locally researched detailed unit price book, UPB, 2.) robust LEAN processes and workflows, 3.) initial and ongoing training for all participants and stakeholders, 4.) regular third-party audits, and 5.) enabling collaborative technology.

These tools help to assure an environment with the following characteristics:

  • Collaborative focus upon mutually beneficial outcomes
  • Full financial visibility and transparency
  • Shared risk/reward
  • Continuous improvement
  • Local decision-making with appropriate global oversight/leadership/support
  • Long-term relationships and commitments

via Four BT, LLC – Collaborative LEAN Construction Planning, Procurement, and Project Delivery Solutions

LEAN Job Order Contracting

LEAN Job Order Contracting

OpenJOC(TM) embodies LEAN Job Order Contracting. In summary, the principles of LEAN and integrated project delivery are applied to Job Order Contracting in order to virtually assure high performance and compliance.

LEAN Job Order Contracting
LEAN Job Order Contracting

OpenJOC Job Order Contracting is a method of repair, renovation, and new construction project planning, procurement, and delivery differentiated by traditional methods by a contractual arrangement, workflows, and information environments that align the interests of all participants and stakeholders.

Core strategies and operating principles of OpenJOC Job Order Contracting include:

  • Focus upon mutually beneficial outcomes.
  • Shared risk/reward.
  • Financial transparency, inclusive of a locally researched detailed unit price book.
  • Early and ongoing involvement of participants.
  • Collaborative decision-making, especially for those doing the actual work/
  • Development of long-term relationships.
  • Mutual respect and trust – participants treated as equals.
  • Owner leadership without excessive control.
  • Supporting cloud-based collaborative technology (Program Management, Project Management, Estimate Management, Document Management, Embedded Workflows, Issue/Task Management, Integration of BIM information…)

Four BT, LLC -www.4bt.us – LEAN Construction Delivery Tools and Services.

Detailed Construction Cost Estimating

Accurate, Detailed Construction Cost Estimating

Accurate, detailed construction cost estimating is critical to the success of any repair, renovation, or new build project. Top estimators have years of experience and a working knowledge of construction means and methods.

Detailed line item estimating is the most accurate and transparent form of construction cost estimating. It’s use is a requirement in the public sector for projects over a certain size, and should be required by all facilities owners, facilities managers, procurement professionals, or oversight groups.

Communicating the estimate is just as important as creating it. A locally researched detailed line item unit prices book (UPB), organized using CSI MasterFormat can greatly aid in both aspects. A properly created UPB has a description for each task in plain English, that clearly outlines the activity. Each line item also has labor, material, and equipment information and associated cost for each, in addition to an overall cost for the line item. The overall cost for the line item includes a unit of measure such as: EACH, SQUARE FOOT, LINEAR FOOT, CUBIC YARD, etc. Finally a crew is associated with each line item to aid in understanding the associated productivity and cost, etc.

LEAN construction delivery methods, such as the OpenJOC(TM) Job Order Contracting Solution require the use of a locally researched unit price book as well as specified workflows, approvals, documents, etc. Below is an example of an Job Order Contracting workflow.

Sample Job Order Contracting Workflow

While the above process can be tailored to organizational requirements, certain activities and stages represent best management practices and should be maintained in order to achieve best value outcomes. Key process elements begin with the Owner and Contractor Scopes of Work, and a Joint Site Visit.

Owner Scope of Work – Definition of repair, renovation, or new construction project that will communicate sufficient information to enable a builder to develop or jointly develop a detailed line item estimate.

Joint Site Visit – Builder and owner representatives jointly meet on site to discuss project requirements.

Contractor Scope of Work – Contractor prepared scope of work based upon discussions with owner, a joint site visit, and the creation of a detailed line item estimate. Both the scope of work and the line item estimate form a builder’s proposal for a project.

Learn more about the complete workflow… stages… documents….and more?

Web-based JOC System

Web-based, automated JOC system

A web-based, automated JOC system serves to support a collaborative, productive, and compliant JOC Program.

Automated Web-based JOC System

Properly implemented JOC systems support organizational policy and workflows, and help to assure overall JOC Program compliance. It’s important that JOC system providers meet with the organization to mutually understand and detail JOC-related organizational policy and procedures as well as contract and bidding documents, standard specifications, forms, reports, etc.

JOC System Dashboard

Enterprise JOC Software has the capability to integrate project workflow into the software system to ensure the data entry process is complete in one section before moving to the next.

via Four BT, LLC – Providing LEAN construction planning, procurement, and project delivery solutions.

Selecting a JOC Unit Price Book

Selecting a JOC Unit Price Book

Selecting a JOC Unit Price Book, (UPB) is a critical task in assuring access to actionable construction task and cost information and the overall success of any JOC Program.

Four BT, LLC (4BT) develops and fully supports LOCALLY RESEARCHED Unit Price Books (UPB) with appropriate line items for each Owner and each Job Order Contract.

The 4BT JOC UPB is comprised of approximately 60,000-unit price line items/construction tasks which include a description in plain English, labor, material, and equipment details and cost breakdowns, crew information, separate demolition line items, and line item modifiers (additions or subtractions to a parent line item due to quantity, product requirements, work area/location, etc.).  While some UPBs market hundreds of thousands of line items, our experience has shown that most public agency clients use far less than 60,000-line items on a regular basis.  These “oversized” JOC Price Books can contribute to delays, errors, and confusion.

In situations where additional and/or unique construction task line items are required, 4BT researches the items and adds them to the UPB during the start-up phase of the contract and/or as necessary/allowed. This single step minimizes most non-pre-priced (NPP) items without adding unnecessary bulk to the UPB. 4BT UPBs are developed to assure that at least ninety percent (90%) of the dollar value of estimates for work orders is sourced from the UPB.

Line items are organized using CSI MasterFormat and MasterFormat Divisions and levels. Demolition line items are included by section and found at the beginning of each section. 4BT is licensed and authorized by the Construction Specifications Institute (CSI).

A JOC unit price book (UPB) is a required component of a Job Order Contract and provides a standardized method of organizing, describing, and costing numerous repair, renovation, and construction tasks.  A UPB is also a core element of a common data environment (CDE), and integral to LEAN Construction and BIM.

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Best Value Job Order Contracting

Best Value Job Order Contracting

Build the right team, collaborate with all participants and stakeholders from day one, incorporate LEAN construction processes. The consistent delivery of quality repair, renovation, and new construction projects isn’t difficult.

Build the right team, collaborate with all participants and stakeholders from day one and incorporate LEAN construction processes.

While each construction relative project has its uniqueness, assuring the consistent use of LEAN processes removes uncertainty and variation, and in the end virtually eliminates waste.

Simple fundamentals, consistently applied, can drive significant performance gains for real property owners and their service providers.

 Shared Risk/Reward. Appropriate risk assessment can only occur if risk/reward is shard by all participants. Sharing risk/reward, by default, increases information sharing and risk visibility. Inadequate or incomplete risk reviews, common in traditional construction delivery, are uncommon with LEAN construction delivery processes such as Integrated Construction Delivery, IPD (for major new construction), and Job Order Contracting, JOC, for repair, renovation, maintenance, sustainability, and minor new construction.

Contracting/Procurement Rigor. Senior leadership teams lacking adequate capability in the management and oversight of construction projects consistently fail to established and proven LEAN best value practices in order to drive top line maximum performance outcomes. Real property owner leadership bears the responsibility of monitoring and controlling BEST VALUE procurement processes. Performance failures of recent decades are the directly result of poor owner leadership and the lack of adoption of LEAN planning, procurement, and construction delivery methods.

Projects Delivery. The pervasive lack of rigor with respect to focus upon and consistent adherence to LEAN construction processes are workflows remains the AECOO sector norm (Architecture, Engineering, Construction, Owner, Operator.) Weak mutual understanding of project technical and cost scope, combined with traditional design-bid-build and lowest bidder processes have produced a legacy of economic and environmental waste. The selected construction delivery method is critical to the success of any repair, renovation, or construction projects and risk/reward must be shared among those participants best able to manage that risk.

Failure to adequately focus on project flows.  LEAN construction delivery method have fundamental, yet flexible workflows that aid in maximizing positive outcomes. They purposely enable local, on-site, in the field decision-making, coupled with global oversight. Well established LEAN best management practices can not be ignored or inconsistently practiced if they are part of a requisite and rigorous workflow.

Sample LEAN Job Order Contracting Workflow

Consistent delivery of quality repair, renovation, and new construction projects on-time, and on-budget, is available to any organization with…

Strong organizational leadership with requisite levels of competency. Receptive to criticism, alternative processes, and views, and focus upon mutually beneficial outcomes.

 Strong governance practices. Adoption of and continuous improvement to LEAN planning, procurement, and construction delivery practices.

Qualified leadership, receptive to constructive criticism and alternative views, is also key.

Davis Bacon Prevailing Wage Rates
LEAN Asset Management
Best Value LEAN Construction Planning, Procurement, and Project Delivery Framework

via https://4bt.us – LEAN Construction Delivery Tools and Services

Davis-Bacon Wage Rates, Job Order Contract

Davis Bacon Prevailing Wage Rages

Superior Construction Cost Visibility

Davis Bacon prevailing wage rates are required for federal and many many other public sector facilities repair, renovation, and new construction projects. They are also common used for Job Order Contracting and other LEAN construction delivery methods.

The Davis-Bacon Act (DBA), enacted in 1931 and amended in 1935 and 1964, is designed to protects communities and workers from non-local contractors underbidding local wage levels.   

Davis Bacon wage rates are established and published by U.S. Department of Labor (DOL). They include local “prevailing wages” and “fringe benefits” for laborers and mechanics and apply to Federal and District of Columbia contracts, more specifically, contracts in excess of $2,000 to which the Federal Government or the District of Columbia is a party for construction, alteration, and/or repair, including painting and decorating, of public buildings or public works. 

Davis Bacon wage rate requirements 1. apply to “laborers” and “mechanics” of contractors and subcontractors, 2. Performing work on the “site of the work” , Must be paid not less often than weekly, and must be posted at the job site .

Wage determinations are based upon 1. BUILDING construction: The construction, rehabilitation and repair of sheltered enclosures with walk-in access for the purpose of housing persons, machinery, equipment or supplies (includes installation of utilities and equipment, both above and below grade). 2. RESIDENTIAL construction: For Davis-Bacon purposes, include construction, alteration, or repair of single family houses, townhouses, and apartment buildings of no more than four (4) stories in height.3. HIGHWAY projects: Construction, alteration or repair of roads, streets, highways, runways, taxiways, alleys, trails, paths, parking areas, and similar projects not incidental to building or heavy construction. 4 .HEAVY construction: Projects within the heavy classification may sometimes be distinguished on the basis of their particular project characteristics and separate schedules issued.  Example: sewer & water line projects.

Multiple wage schedules apply to different types of construction on a project: If construction items of a separate type of construction are: 20% or more of total project cost; or will cost $1,000,000 or more.

The Four BT OpenJOC Unit Price Book(TM) incorporates prevailing wage rates or Davis Bacon prevailing wage rates based upon contract and client related requirements. The unit price book includes detailed unit price line item construction costs for repair, renovation, and new builds. Each line item includes a task description, a unit of measure, a total cost, an associated crew, and breakdowns for labor, material, and equipment as applicable to the line item. Each Unit Price Book is locally researched an updated regularly for pricing variations. The unit price book is organized by CSI Masterformat and also include line item modifiers. The latter are adds/deducts to the parent line item to account for quanity or task specific variations.

Best Value LEAN Construction Planning, Procurement, and Project Delivery Tools

NOTE: The above is NOT intended as ANY form of LEGAL ADVICE, but rather simply information to be considered and reviewed as appropriate for your organization.Report this

JOB ORDER CONTRACTING BASICS

JOB ORDER CONTRACTING BASICS

Job Order Contracting BASICS

A job order contract is awarded by public agency (including airports, mass transit, utilities…) multiple repair, renovation, or new construction jobs, provided (i) the jobs require similar experience and expertise, (ii) the nature of the work is clearly identified in the solicitation, and (iii) the contract is limited to a term of one year or when the cumulative total project fees reach the maximum authorized, whichever occurs first. Contractors should be selected through a best value, competitive processes.

Job Order Contacting

Contracts may be renewable via option years, for up to four additional years based upon applicable laws/regulations. The total value of all jobs performed in a one-year contract term shall not exceed the maximum threshold amount. Minimum and maximum dollar values are generally provided for both the annual contract period and individual job orders/work orders.

Prices for each individual job order/work order are calculated using a Unit Price Book. A JOC Program REQUIRES the use of UPB. The only exception to this rule is the State of Arizona, which is improperly implementing this establish process. The UPB should be locally researched and used either prevailing wage rates or Davis-Bacon wage rates as applicable. Each line item in the UPB should represent a repair, renovation, or construction related task and include… organization via CSI MASTERFORMAT, a title and description in plain English, and detailed subcosts for labor, material, and equipment. Crew information should also be available. Costs developed by an awarded JOC contractor for a specific project should total the sum of all of the selected UPB line items multiplied by the appropriate and approve contractor factor/coefficient. The latter is a factor, generally around 1.2 that reflects contractor overhead and profit, and other items as allowed via the contract. Under no circumstances should the total value of any non-prepriced line items (items not derived from the UPB) exceed ten percent (10%) of any total individual work order.

“Task Order or Work Order splitting” with the intent of keeping a job order under the maximum dollar amounts is prohibited.

Any professional architectural or engineering services that required for a work order/task order are the responsibility of the awarded JOC contractor. Additional professional architectural or engineering services may be included on a job order where such professional services (i) are incidental and directly related to the job, do not exceed an established level, and allowed by relevant regulations.

JOC has a proven track record spanning decades and JOC Program tools and training are readily available. Purchase of these tools and services however should be done on a specific dollar fee/price basis, and not procured as a percentage of total JOC construction volume. The latter is generally excessively costly and may present the risk of fraud if a JOC consultant is involved in JOC Program management.

LEAN Asset Management
Job Order Contracting Basics
Uncategorized

The Importance of Prevailing Wage Rates to Owners, Builders, and AE’s

Understanding and having access to current, actionable, prevailing wage rates for your area… AND an using a locally researched unit price book (UPB) with detailed line item cost data are all CRITICAL to REAL PROPERTY OWNERS, BUILDERS, AE’s, and Oversight Groups. These tools provide full financial transparency and greatly enhance the mutual understanding of the planned scope of work.

While depending solely up subcontractor quotes and/or lump sum quotes may be traditional, that doesn’t mean that it is in the best interest of anyone to do so.

Prevailing wage is defined as the hourly wage, usual benefits and overtime, paid to the majority of supervisors, tradesmen, workers, mechanics, and laborers, within a specified geographic area.

Detailed prevailing wage rates are also required by many public sector institutions, while others may required Davis-Bacon wage rates. While not the same, wages for some trades can be similar, with others varying significantly.

Various Government institutions collect and calculate prevailing wage rated differently, thus its important to understand all associated techniques, rules, and regulations. In fact, your construction use requires the use of prevailing wage or Davis-Bacon labor rates, it is likely best to procure them from a professional source.

Using a Unit Price Book enables the development of full transparent, easily communicated, and detailed repair, renovation, maintenance, sustainability, and new construction project costs. This information can be used on its own for used to validate and/or negotiate contractor/subcontractor costs, or used by builders to build and communicate reliable proposals for owners. Proposals the truly reflect owner needs and scope of work. A locally researched detailed line item unit price book (UPB) enables all participants and stakeholders to easily view detailed, verifiable costs for labor, material, and equipment for all relevant construction tasks. A UPB eliminates the sole reliance upon contractor and subcontractor quotes or “back of the envelope” estimates. A locally researched UPB virtually assures a detailed scope of work for each work requirement. One that can be easily documented, understood, and shared with everyone.

Moving Beyond Subcontractor and Lump Sum Quotes

Job Order Contracting

Job Order Contracting Review Best Management Practices 2019

Job Order Contracting: Everything Owners and Builders Need to Know

Job Order Contracting Review

Job order contracting is neither difficult to understand, nor costly to practice, yet is virtually it assures the consistent delivery of quality, on-time, on-budget repair, renovation, and new construction projects…if the JOC Program is designed, deployed, and managed correctly.

Of course, the question remains… why don’t more real property owners and facilities management teams leverage the benefits of job order contracting?

Contributing factors include to JOC’s limited acceptance and proper implementation include the need for improved formal and professional education for real property owners with a focus upon leadership and core LEAN construction delivery concepts and processes., as well as total cost-of-ownership asset management.

What Is Job Order Contracting?

Job order contracting is a LEAN construction planning, procurement, and delivery methods. It is a Program, System, and Process, rather than a single project. It develops and support long-term, collaborative relationships between real property owners and builders. Typically JOC Programs are single year IDIQ ( indefinite delivery/indefinite quantity) agreements with up to four (4) additional option years. Minimum and maximum dollar values (per year, per project, and total) and types of construction are clearly stipulated. Procurement costs, project delivery times, overall construction costs, changes orders, and legal disputes can all be mitigated via properly established and managed JOC Programs.

How Does JOC Work?

Job Order Contracting Review
Typical JOC Project Workflow – CIty

The above is an example of a JOC workflow. All processes, roles, responsibilities, etc. are detailed within a written JOC Operations Manual or JOC Execution Guide.

In order to implement job order contracting, a LOCALLY RESEARCHED JOC unit price book is a core requirement. (Note: Using a UPB based upon national averages and associated locations factors is not a best practice and not recommended.) Ain UPB is a detailed listing of construction tasks developed to include at least ninety (90%) percent of the work anticipated to be done via the JOC Program. Each task should include a description in plain English, using industry standard terms, a total cost per unit of measure, and detailed associated cost breakdowns for labor, material, and equipment. The UPB should also contain crew information and be updated annually at a minimum, and quarterly if possible for labor and material fluctuations. The using of “economic indexes” for updated a JOC UPB is also not a recommend best management practice. The JOC UPB should be organized using CSI Masterformat. JOC UPBs can be created for general construction, or some area of specialization such as roofing, communications, fencing, electrical, etc.

Each construction project includes a owner’s request for proposal to an awarded JOC contractor. The JOC contractor then responds with a proposal/project estimate developed using the approved current UPB. A coefficient is applied to the total of the proposal/estimate which included the contractor’s overhead and profit and other items as allowed per the JOC Program.

When Is JOC Used?

Job order contracting is used for planning, procuring, and executing repetitive repair, renovation, maintenance, sustainability, and new construction tasks. Design work is typically minimal and the responsibility of the builder. Any costs for this are generally within the contractors coefficient(s).

What Are the Benefits of JOC?

  • Quality Repair, Renovation, and New Construction Projects consistently delivered on-time, on-budget and to the satisfaction of all participants and stakeholders.
  • Full Financial Transparency and Compliance
  • Shared Risk/Reward
  • Long-term Mutually Beneficial Owner/Builder Relationships Based Upon Mutual Trust/Respect
  • Virtual Elimination of Change Order and Legal Disputes
  • Optimal User of Available Owner Funding to Reduced Deferred Maintenance, and Execute New Construction Projects

Proof That JOC Works

JOC, a form of integrated project delivery (IPD), has a proven thirty year (30 yr.) track record.

In addition, multiple researched studies and case studies have been performed over this time period, as well as independent audits of JOC Programs. A 2016, Arizona State University study noted the following…

  • 99% of respondents recommend the job order contracting
  • 96% of projects were satisfactorily completed
  • 91% of projects were on-budget
  • 87% of projects were on time
  • Reductions in administrative costs and total costs versus design-bid-build, design-build, etc.

Unfortunately JOC Is NOT for all Owners and Builders

Job order contracting requires certain levels of owner leadership, competency, and willingness to engage in change versus traditional construction planning, procurement, and project delivery. The same is true for builders.

Many JOC Programs have not achieved anticipated results due to lack of owner competency and poor support on the part of “JOC Consultants”. Also, many JOC Programs have been set up whereby the “JOC Consultant” actually manages the JOC Program and is paid a fee based upon a percentage of JOC construction volume performed. This is not only NOT a recommend best management practice but a a situation that sets the stage for potential fraud (as noted via third party independent audits).

Nonetheless, properly designed and managed JOC Programs can resolve the productivity problems that have plagued the construction sector and AECOO community for decades!!

Job Order Contracting Review
Why Construction Productivity Lags Other Sectors
Job Order Contracting Review
The Best Value LEAN JOC Solution

Learn more?

Additional Information Resources for Job Order Contracting Best Management Practices:

ASU Alliance for Construction Excellence

Center for Job Order Excellence

JOC Resources

LEAN Construction Cost Estimating

LEAN Construction Cost Estimating

LEAN Construction Cost Estimating Drives Optimal Performance

LEAN Construction Cost Estimating

Detailed line item construction cost estimating is a core component of LEAN construction and measurably improved outcomes. Below are a few considerations when making the change to LEAN construction cost estimating and integrated project delivery:

  1. Shift from traditional silo-based estimating to collaborative / team-based estimating.
  2. Focus upon detailed line item estimating by discrete tasks.
  3. Use a common data environment (CDE), specifically locally researched unit prices organized via CSI Masterformat.
  4. Leverage document management, version control, access control, check-in/check-out, detailed change logging.
  5. Adopt LEAN processes and simplified user interfaces.
  6. Replace traditional design-bid-build and design-build with integrated project delivery.
  7. Select teams upfront and based upon best value.
  8. Embrace suggestions from those that do the actual work.
  9. Require early and on-going collaboration as well as initial and ongoing training.
  10. Address change management as a process based upon continuous improvement.
Change Management is Perpetual

The Simple Guide to Lean Construction