LEAN Performance-based Construction Services Procurement and Project Delivery
Consistently Deliver Quality Repair, Renovation, and Minor New Construction Projects On-Time & On-Budget!
NOVEMBER 27, 2018
Traditional procurement and construction delivery methods commonly produce poor outcomes.
The integration of best value procurement with collaborative LEAN construction delivery, as in the case of the 4BT OpenJOC Job Order Contracting Solution(TM), consistently provides significantly improve outcomes for owners, builders, and facilities users.
Performance-based procurement and construction delivery mitigate the factors below, which are ever-present with design-bid-build:
- Potential for Error: Using spreadsheets (9 in 10 spreadsheets contain errors), lump sump estimates, ad hoc and/or late information sharing, and failure to use standardized current and detailed information all contribute to error.
- ‘Ad hoc’ Methods Assuring that all roles, responsibilities, and processes are understood and consistently implemented drives efficiency. Lack of repeatable processes and standardized, centralized, information increased variation and introduces multiple time-consuming consequences
- Inflexibility: LEAN processes assure a “Pull Strategy”. Simply put, the focus is upon the customer and the desired outcome, with input required of people actually doing the work throughout the process…from concept through completion and beyond! Rigid political hierarchy is put aside.
- Improper Technology Focus: Technology is an enabler and not a driver. Far too often, technology is “force-fit” into a process and actually creates problems. Technology should be purpose-built. For example, a Job Order Contracting cloud-based system that embeds the accepted workflows, locally researched construction cost data, and assures everyone access of current actionable information contributes to project quality and efficiency. Appropriate Program, Project, Estimate, Document, and Workflow Management are equally important technology attributes.
- Inadequate Training & Leadership: While LEAN processes are far from complex, they do require significant change management. Most real property owners are not familiar with how to work with service providers in an open, collaborative, and transparent manner. Many services providers are equally unfamiliar with working together in a mutually beneficial manner. Initial and ongoing training must be mandatory for all participants.
- Lack of Oversight: “Trust but measure” is directly associated with LEAN processes, as it “you can’t manage what you don’t measure”. Simply put, processes and technology must assure a clear audit trail. Improvement in any process is impossible without have a baseline and associated metrics.