Rewiring the construction industry, and the overall AECOO sector (architects, engineers, construction contractors, owners, and operators) have been proven to be the only viable solution to the legacy of rampant economic and environmental waste.
The construction delivery method and its associated contractual framework affects the outcome of any repair, renovation, or new construction project more than any other single element. This state, of course, is only valid assuming that the prerequisite levels of owner leadership and overall team competency are present.
Over the past three decades, LEAN construction delivery methods such as Integrated Project Delivery, IPD (for major new construction), and Job Order Contracting, JOC (for minor new construction) has aligned and achieved well-defined outcomes (see related white papers). The have proven to consistently deliver over 90% of projects on-time, on-budget, and to satisfaction of all participants and stakeholders… when designed and implemented per their fundamental criteria.
When a 90% AECOO success rate is compared to the current industry average of 25%, the question must be asked… “Why is less thatn 5% of the AECOO community actively engaged in true LEAN collaborative construction delivery?”.
The answer comes down to three elements, education, education, and education. Both formal and professional education has traditionally not focused upon teaching the core elements of life-cycle total cost-of-ownership management and LEAN construction delivery. Similarly technology vendors have marketing their solutions as opposed to integrated proven LEAN process within technology. BIM is the most notable example of how a technology was hyped as a solution to the AECOO sector’s woes.
We must move away from the hostile contracting environment that characterizes many construction projects, including design-bid-build, low bid, and even design-build, to a methods focus upon early and ongoing collaboration and problem solving among ALL project participants and stakeholders. Note that collaboration, financial transparency, and shared risk/reward are CONTRACTUALLY REQUIRED for both IPD and JOC.
Procurement must be based upon BEST VALUE, with associated performance-based incentives for vendors/service providers.
Relationships between owners and services providers should be long-term, preferably with local supplies with local knowledge. Mutual trust and respect is key in this regard. For example, studies have consistently shown that the most successful path to innovation and problem solving and continuous improvement is to build a level of trust in which contributions/suggestions from ALL participants receive open, merit-based consideration and evaluation. Each team member is considered part of the “community”, in which all are striving for improved outcomes.
Both LEAN IPD and LEAN JOC provide training and tools to transparently share data and enable information-based decision-making. JOC, for example, requires a common data environment (CDE) in the form of a detailed line item unit price book (UPB). The UPB contains a detailed listed of tasks required to accomplish virtually an repair, renovation, or minor new construction project. In properly designed UPBs, descriptions are in plain English, using industry common terms. The use of abbreviations and confusing acronyms is limited to units of information. Full details are provided for labor, material, and equipment components, and costs. Lastly, the UPB is locally researched, and does not rely upon a “national average cost book” and/or localization “factors”.
Certainly the path do improved AECOO outcomes requires changes in behavior, attitudes, skills, and supporting tools. That said, it is ultimately the responsibility of real property owners to provide the leadership to drive any measurable positive improvement.
via www.4BT.US – LEAN Construction Delivery Tools and Services