LEAN Job Order Contracting, as represented by the 4BT OpenJOC(TM) Framework, is a programmatic methodology applied to all construction projects and work orders.
Typically all individual construction projects have been considered to be unique, with each requiring its own approach, means, and methods. This is a fundamentally flawed perspective that has significantly contributed to rampant historical economic and environmental waste across the AECOO sector (AECOO – Architecture, Engineering, Construction, Owner, Operator).
For example, the Project Management Institute (PMI) defines a project as follows; “a project is a temporary endeavor. undertaken to create a unique product or service”. Certainly each construction project has a beginning and an end, however, unless they are all addressed in standardized, professional, and robust manner and associated workflows and a common data environment. While there are certain unique elements to each construction projects, the granular tasks for virtually any construction project can be defined in advance and stored in a database. This database, also referred to a detailed unit price book (UPB), or a construction task catalogue, includes the following information for each task:
- A description of the construction/repair/renovation/demolition task in plain English.
- A unit of measure for the task (each, square foot, cubic yard, etc.)
- Associated detailed costs for required labor, material, and equipment to complete the task per the unit of measure, and a total cost for the same.
Using a UPB enables any construction project to be represented in standardized terms which all involved parties can understand. A UPB solves several major issues that have traditionally faced real property owners, architects, and builders. First, a robust, detailed scope of work can be easily created and communicated and understood by all parties. A poorly defined and/or poorly communicated scope of work is responsible for the majority of change orders and cost overruns encountered. Secondly, a locally researched UPB provides the highest possible certainty with respect to costs. Furthermore, the discrete elements of a UPB can be then organized into an appropriate work schedule.
A locally researched UPB is one of several key elements of Programmatic LEAN Job Order Contracting. (Note: a “national average” cost database with/without location factors and “historical costs”, as well as lump sum cost from contractors or subcontractors do no provide requisite cost visibility, transparency, or cost management.)
Holistically, Programmatic LEAN Job Order Contracting is a performance improvement environment, consisting of proven processes, tools, data sources, and techniques. It is a structured method of eliminating waste from throughout the
“project” life-cycle, from conceptualization, through integrated planning, procurement, and execution. Value management for all participants and stakeholders is a key focus that is achieved through everyone having a clear understanding of requirements on an early and ongoing basis and enhanced team dynamics.
Furthermore Programmatic LEAN Job Order Contracting doesn’t require pubic sectors to pay a percentage of JOC total annual construction for access to world class JOC tools, cost data, and support services, saving owners up to 10x+ in JOC administration fees.
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Variability is an inherent characteristic of construction. The lack of a robust programmatic process-centric approach causes instability in performance of construction processes causing negative fluctuations of work and poor information flow.
Phases: Conceptualization-Planning-Procurement-Execution-Closeout
Primary Failure Causes:
- Lack of management’s leadership, commitment/ involvement/support
- Poor allocation of scarce resources
- Communications among various participants and stakeholders
- Team configuration and structure
- Social cohesion in the team and organizational culture
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