Why Construction Projects Fail
The specifics as to why rampant waste is endemic to the ” Construction Sector”:
- Award of contracts to the lowest bidder to “save money” versus best value procurement (Demonstrative of the need for improved owner competency, leadership, and fundamental change management).
- Fail to adequate define, develop, and communicate project values and budget (Fundamental lack of understanding and deployment of proven LEAN planning, procurement, and integrated project delivery methods).
- Poor upfront and ongoing coordination and collaboration.
- Lack of common terms, definitions, and common data environments (How can anyone possibility fully define communicate, and understand any project without detailed line item construction tasks, organized via CSI-Masterformat, and using locally researched labor, material, and equipment costs?)
- Prevailing tendency to go with the ‘status quo’ including proprietary systems or sole source specifications/partners without considering currently available options.
- Focus upon technology (i.e. BIM) versus process. (LEAN construction delivery methods have existed for decades and consistently deliver quality projects on-time, on-budget, and to everyone’s satisfaction.)
- Failure to build the team… A/E’s, Contractors, Subs, building users, FMers, Procurement…. from day one. (Due to inherent lack of trust, lack of mutual respect, lack of shared risk/reward…)
- ….
Client Comes First – Relationship Drive Success – Collaboration and Ongoing Training are Mandatory – Common Data Environment – Metrics – Continuous Improvement
www.4bt.us
Design based upon a Detailed Estimate – Team Works to Issues and Produce Solutions – Engage Those Doing the Work in Decision-Making
| Traditional Project Delivery | LEAN Project Delivery |
| Design then price | Price then design |
| Design in large blocks and coordinate latter (top down) | Design in smaller milestones and continuously coordinate (bottom up) |
| Hard-bid via design-bid-build | Value based contractor selection with appropriate leverage of LEAN indefinite delivery/indefinite quantity |
| Reactive process | Proactive process |
| Push – Base price and deliverables upon design | Pull – Determine tasks, price, and construction deadline and drive design accordingly |
2 thoughts on “Why Construction Projects Fail – And what you can do about it.”
I fully agree with the LEAN methods particularly when compared with BIM. There is another major aspect that is often overlooked and that is when companies hire new employees the expertise and skill as an engineer/designer and appreciation of design, procurement, manufacturing and construction is not prioritized whereas their ability to use a specific CAD product is often the main criteria. Without the former skills the expertise to use a cad product is meaningless and often leads to major downstream problems. Consequently the industry has a lot of good cad users but few good engineers/designers.
Agreed!
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