Public Sector Facilities Project Cost Management

By peter.cholakis@verizon.netPublic Sector Facilities Project Cost Management

Public Sector Facilities Project Cost Management is required to address traditionally elevated levels of economic and environmental waste.

The good news is that robust solutions are readily available to enable the consistent delivery of quality repair, renovation, maintenance, and new construction projects on time and on budget.

The bad news is that continuous, competent leadership is required that understands that change from current ‘ad hoc’ as wasteful practices is required.

Public Sector Facilities Project Cost Management involves tracking costs in real time throughout the full life cycle of planning, procurement, and delivery.

Efficiently planning projects, procuring projects, executing projects, and managing costs involve several fundamental elements.  All are mandatory with the lack of any single element resulting in the inability to produce consistent best value outcomes.
  1. Robust, integrated planning, procurement, and project delivery framework
  2. Integrated internal and external collaborative, capable teams working towards well defined and documented mutually beneficial goals
  3. Full support and commitment of leadership
  4. Mandatory initial and ongoing training for ALL participants and stakeholders
  5. Current, locally researched granular (unit price line line) cost data, organized by CSI Masterformat
  6. Quantitative metrics/performance indicators

What Is a Project Expense?

It is impossible to manage what isn’t measured and most public sector agencies fail at an elemental level, the lack of cost visibility.  The only valid cost measurement is a line-item estimate based upon local market conditions.  There is not a single Federal Sector organizations that requires this basic requirement for all repair, renovation, maintenance, and new build projects.  As this type of cost data is readily available, this failure is tragic and should be unacceptable to taxpayers and government professionals alike.
Projects cost money and therefore demand project expense tracking!  Being able to manage and track expenses is what keeps the project within a budget is a fundamental failure point.
Without verifiable cost data, inclusive of labor, material, and equipment requirements, cost, scope, and time cannot be managed.  It’s that simple.
Public Sector Facilities Project Cost Management
Local Granular Project Cost Data
Local Preventive Maintenance Cost Data - Checklist and Frequencies

Establish Facilities Repair, Renovation, Maintenance, and New Build Cost Managment Systems

The first requirement is to understand, institute, and manage a consistent robust programmatic approach for all activities.   While each project has its one unique set of characteristics there is no reason not to require core fundamental processes and workflow for each!  All the tools and support systems are readily available to support this level of dynamic functionality.

Information format is critical to collaborative lifecycle information sharing and use.  A common data environment (CDE) is needed for all teams.  This means a common set of industry standard terms and defintions, as well as data architectures (examples: CSI Masterformat, UNIFORMAT, OMNICLASS…).

Technology can help to reduce implementation and administration costs; however, the key is the robust programmatic process.  Technoloy must embed and support robust processes.  Technology solves little on its own as evidenced by the relative failures of ERP systems and BIM to provide a significant improvement without associated organization change.

Defined Workflows

Defined workflows for all participants assure that actionable information is available toapproprate team members in a timely manner added all associated requirements, timeliness, and approvals are properly acted upon.  Available tools and services enable all teams to gain access to information at any time without searching for emails or files. Common access to current vetted information is essential to any project cost management activity.  Traditional approaches and technology available for current “market leaders” lag in their ability to support integrated LEAN planning, procurement, and project delivery teams.

Root Causes of Construction Project Variability

 

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