Facility Life-cycle Costs and BIM

Understanding facility life-cycle costs is a core component of any BIM strategy for Owners, AE’s, Contractors, Subs, Business Product Manufacturers, Oversight Groups, Building Users, … or any stakeholder.

There are many components of life-cycle costs:

• First Costs – Planning, Selection, Acquisition, Construction
• Maintenance, Repair – Routine, Preventive, Unscheduled (typically expenditures of $10,000 per job or less)
• Capital Renewal (major system/subsystem cyclical replacement)
• Renovation, Adaptation (altering, updating spaces based upon functional needs)
• Operations (utilization, utilities, security, safety, sustainability, waste, cleaning, grounds management )
• Deconstruction, Transition, Disposition

BIM is just now beginning to lay the foundation for new processes and supporting technologies to enable more efficient life-cycle management of the built environment.   An important challenge is the establishment of common terms, definitions, metrics, and ‘best-practices’.   Some off these will be new, however, many/most  will likely be existing… the latter simply better shared, communicated, and consistently applied.

Facility Lifecycle Costs

BIM – Getting it Right

“A BIM is a digital representation of physical and functional characteristics of a facility. As such it serves as a shared knowledge resource for information about a facility forming a reliable basis for decisions during its lifecycle from inception onward.” – buildingSMARTalliance – NBIMS – NIBS

Early definitions which assert that BIM is simply a 3D model of a facility are far from the truth and do not adequately communicate the potential of digital, object-based, interoperable building information modeling processes and tools and modern communications methods.- buildingSMARTalliance – NBIMS – NIBS

If implemented, nearly every piece of information that an owner needs about a facility throughout its life can be made available electronically. – buildingSMARTalliance – NBIMS – NIBS

BIM STRATEGY – TOP TEN LIST

1.Coordinate and plan with all parties before you start – Efficient, collaborative project delivery methods ( IPD, JOC) are critical to success.

2.Ensure all parties have life cycle view – involve them early and often – Owners, AEs, Contractors, Facility Management, Users, Community, Stakeholders/Oversight Groups

3.Build the model then build to the model

4.Detailed data can be summarized (The reverse is not possible)

5.Enter data one time then improve and refine over life

6.Build data sustainability into business process – keep data alive.  Ongoing process – Continuous improvement!

7.Use information assurance and metadata to build trust – know data sources and users

8.Contract for data – good contracts make good projects

9.Ensure data is externally accessible yet protected

10.Use international standards and cloud storage to ensure long term accessibility

via http://www.4Clicks.com – premier cost estimating and efficient project delivery software for JOC, SABER, IPD, IDIQ, SATOC, MATOC, MACC, POCA, BOA

BIG DATA = BIM

Sustainability of DOD Buildings – Reuse of Existing Buildings

Reusing existing buildings achieves a 15%+ higher return on investment and 20% reduction in greenhouse gases.   It is less  costly and more sustainable to reuse existing buildings.

With 345,000 buildings, with over 105,000 buildings more than 50 years old, the importance of efficient renovation, repair, and sustainability of existing buildings is paramount.

DoD Building Treatment Terms
•“Adaptive reuse & rehabilitation” are terms of art outside DoD
•The DoD term for “major rehabilitation” is “modernization”
•Modernization means: “the alteration or replacement of facilities solely to implement new or higher standards to accommodate new functions or to replace a building component that typically lasts more than 50 years.”
•This study compares the costs and GHG of modernization with new construction

Sustainment/Status Quo
•Formulated for measuring baseline energy consumption
Demolition and New Construction
•LEED Silver certifiable construction – 2009 LEED for New Construction and Major Renovations
Full Modernization with Strict Application of Historic Preservation Standards (HPS)
•Full modernization with a strict application of Historic Preservation Standards ( HPS) and other DoD facility design standards
•LEED Silver
Full Modernization with Strict Application of AT/FP
•Full rehabilitation/modernization but with strict application of Anti-terrorism/ Force Protection requirements through building hardening, seismic and other DoD facility design standards
•LEED Silver

Applicable design standards include:

• Whole Building Design
• UFC 1-200-01 General Building Requirements
• UFC 4-610-01 Administrative Facilities
• UFC 1-900-01 Selection of Methods for the Reduction, Reuse and Recycling of Demolition Waste
• UFC 3-310-04 Seismic Design for Buildings
• DoD Minimum Antiterrorism Force Protection Standards for Buildings
• Secretary of Interior’s Standards for Rehabilitation of Historic Buildings

Findings

• DoD’s Pre-War masonry buildings are an underutilized resource for meeting DoD GHG carbon reduction goals
• ATFP and Progressive Collapse requirements tend to be rigidly and prescriptively applied, raising construction costs and introducing additional Scope 3 GHG emissions
• Prior modernization treatments result in loss of original energy saving design features in Pre-War Buildings
• Differences in GHG in alternatives resulted from the amount of new building materials introduced and transportation of demolition debris
• Cost estimates and construction bid requests should include materials quantities in addition to costs to evaluate and validate GHG impacts.
• Design professionals with practical experience with archaic building materials and systems are critical to the development of accurate planning level specifications
• GHG emission tradeoffs of proposed new materials and building options should be evaluated early in the conceptual design process

Recommendations

• Incorporate life-cycle GHG emissions analysis into DoD MILCON and SRM programs
• Invest in formulation of carbon calculator system
• Place more emphasis on existing buildings as viable project alternatives to meet mission requirements
• Identify characteristic strengths and vulnerabilities by class of building
  Place more emphasis on existing buildings to meet DoD energy reduction goals
• Avoid modernization treatments that result in loss of original energy saving design features in Pre-War Buildings

Efficient project delivery methods are of critical importance to the task of sustainability and life-cycle management of the built environment.   Job Order Contracting ( JOC ), and SABER are proven project delivery methods for renovation, repair, sustainability, and minor new construction.  JOC and SABER are a form of Integrated Project Delivery for existing buildings and infrastructure.

JOC and SABER provide the following advantages to building portfolio Owners:

•Fast and timely delivery of projects.

•Consolidation of procurement – lower overhead cost and procurement cost.

•Contractor and owner efficiencies in prosecution of the work.  Development of a partner relationship based on work performance.

•Virtual elimination of legal disputes, claims and mitigation of change orders.

•Standard pricing and specification utilizing a published unit price book (UPB), typcially RSMeans-based, resulting in efficient and effective estimating, design, and fixed price construction.

A bit more about JOC -

1. “IPD Lite” for Existing Buildings.
2. Consolidates procurement to shorten Project Timelines and reduce procurement costs.
3. Transparency of pricing and procurement compliance through Unit Price Book.  Owner creates internal estimating (IGE)
4. Long Term Facility Relationship increases productivity and enables reiterative process improvements.
5. Quality and performance incentivized through IDIQ form of contract with minimal guarantee and clear maximum volume.

via.www.4Clicks.com – Premier cost estimating and efficient project delivery software and services for JOC, SABER, SATOC, IDIQ, MATOC, MACC, POCA, and BOA.  Featurings:

• Exclusive 400,000 line item enhancement of RSMeans Cost Data
• Automated Technical Evaluations
• Contract, Project, Estimating, Document Management
• Visual Estimating

Legal and Policy Framework
•National Historic Preservation Act of 1966 ( Amended)
•Energy Policy Act of 2005
•Energy Independence and Security Act of 2007
•Executive Order 13423: Federal Environment, Energy, and Transportation Management (2007)
•Executive Order 13514: Federal Leadership in Environment, Energy, Economic Performance (2009)

Why the majority of CMMS System Implemenations Fail

The majority (60-80%) of CMMS implementations fail for the same reason that the majority of ERP systems and IWMS systems fail…   the lack of  due consideration of robust, lead, processes and procedures.   Quite simply, technology is used to automate existing processes vs. implement more efficient, transparent, collaborative, and accurate policies and procedures.

For example, virtually none of the major (or even minor) CMMS or IWMS technology vendors incorporate a standardized cost database, such as RSMeans, from which users could compare their actual material, equipment, and labor costs against a localized reference standard.   “Just plain stupid”, right?

What good is a CMMS system into which an Owner inputs their own experiences without comparison to industry averages, best-practices, or any third party metrics?  What can these Owners possible be benchmarking against?  How can goals, objectives, targets be established?

1. How many Owners understand the difference between CMMS (Computerized Maintenance Management Systems) and CPMS (Capital Planning and Management Systems) and the absolute requirement for BOTH relative to efficiently managing larger facility portfolios?
2. How many Owners continue to be reactive in their capital allocation, even with a CMMS…aka spending 60%+ of their budgets on emergency or unplanned maintenance vs. planned, preventive and/or predictive maintenance?
3. How many Owners still wallow in design-bid-build and change-orders, legal disputes, and poor quality vs. collaborative efficient methods such as Job Order Contracting and Integrated Project Delivery?
4. …..
The sad part is, there is a lot of information out there on efficient life-cycle management of the built environment supported by digital technology.  Why are many facility management executives still supporting unsustainable business practices?   That’s the hard question.

Facility Life-cycle Management Framework

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

46453858-Asset-Lifecyle-Model[1]

” Evidence-based ” Life-cycle Federal Facility Management, BIM, and the Status Quo – NIBS, FFC

Yesterday (6/19/2012), the National Academies Federal Facility Council hosted a timely, and potentially watermark event “Predicting Outcomes of Investments in Maintenance and Repair of Federal Facilities“.

It is my hope that this event and those similar to it  be expanded as much as possible to assist all real property owners, architects, contractors, subcontractors, building product manufactures, oversight groups, and the community truly practice facility life-cycle management, referred to more recently as BIM (building information modeling / management).

Key Topics / Take Aways:

Identify and advance technologies, processes, and management practices that improve the performance of federal facilities over their entire life-cycle, from planning to disposal.

Predicting Outcomes of Investments in Maintenance and Repair for Federal Facilities
-Facility risks to Organizational Mission
-Potential to quantify
-Ability to predict outcomes vs. investment
-Communication strategies
-The “how” of measuring investment successes

1. You can’t manage what you don’t measure.

2. Requirements for facility life-cycle management, efficient repair/maintenance/sustainability, BIM

3. Inventory of Built Environment

4. Physical and Functional Condition of Assets (Portfolio, Site, Building/Area, System, Sub-system, Component Levels)

5. Expected Life-cycle and Deterioration Rates for Physical Assets

6. Ranking of Facilities/Built Environment relative to Organizational Mission

Mission Criticality / Risk Matrix

 

 

 

 

 

 

 

 

 

 

 

 

 

 

7. Associated Capital Reinvestment Requirements and Ability to run multi-year “What-if ” scenario analyses

8. Collaborative, Efficient Project Delivery Methods ( IPD – Integrated Project Delivery, JOC – Job Order Contracting)

 

Strategic approaches for investing in facilities maintenance and repair to achieve beneficial outcomes and to mitigate risks. Such approaches should do the following:

• Identify and prioritize the outcomes to be achieved through maintenance and repair investments and link those outcomes to achievement of agencies’ missions and other public policy objectives.
• Provide a systematic approach to performance measurement, analysis, and feedback.
• Provide for greater transparency and credibility in budget development, decision making, and budget execution.

• Identify and prioritize the beneficial outcomes that are to be achieved through maintenance and repair investments, preferably in the form of a 5- to 10-year plan agreed on by all levels of the organization.
• Establish a risk-based process for prioritizing annual maintenance and repair activities in the field and at the headquarters level.
• Establish standard methods for gathering and updating data to provide credible, empirical information for decision support, to measure outcomes from investments in maintenance and repair, and to track and improve the results.

Vehicles for Change—
• Portfolio-based facilities management (aka asset management)
•Technology (tools, knowledge, risk)
• Recognition of impacts of facilities on people, environment, mission (i.e., prioritizing)
• Changing of the Guard

Best Practices … Partial Listing
• Identification of better performing contractors or service providers
• GIS mapping tools
• Facility condition assessments – surveys, vendors, frequencies, costs
• Maintenance management systems
• Predictive maintenance tools
• Organizational structures
• Budget call process
• Master Planning processes
• Improve relationships with the facility end users and foster a “One Community”
• Energy management

Presentations:

Doug Ellsworth_USACE

DR_Uzarski_CERL

John Yates_DOE

Get Moy_Portfolio Mgmt

Peter Marshall_FFC_Chair

Terms:

Component-section (a.k.a. section): The basic “management unit.” Buildings are a collection of components grouped into systems. Sections define the component by material or equipment type and age.
Condition Survey Inspection (a.k.a. Condition Survey; Inspection): The gathering of data for a given component-section for the primary purpose of condition assessment.
Condition Assessment: The analysis of condition survey inspection data.
Component Section Condition Index (CSCI): An engineering – based condition assessment outcome metric (0 – 100 scale) and part of the Building Condition Index (BCI) series.

Condition Survey Inspection Objectives
1. Determine Condition (i.e. CSCI) of Component-Section
2. Determine Roll-Up Condition of System, Building, etc.
3. Provide a Condition History
4. Compute Deterioration Rates
5. Calibrate/Re-calibrate Condition Prediction Model Curves
6. Compute/Re-compute Remaining Maintenance Life
7. Determine Broad Scope of Work for Planning Purposes
8. Quantify/refine Work Needs (incl root cause analysis, if needed)
9. Establish when Cost Effective to Replace (vs. Repair)
10. Compute/Re-compute Remaining Service Life
11. QC/QA (Post-work Assessment)

Condition Survey Inspection Types
Deficiency: The “traditional” inspection discussed previously.
Distress Survey: The identification of distress types (i.e. crack, damage, etc.), severity (low, medium, high) and density (percentage) present. Data directly used in the calculation of the CSCI. No estimate of cost or priority.
Distress Survey with Quantities: Same as distress survey except that distress quantities are measured or counted. The resulting density is more accurate than a distress survey, thus the CSCI is more precise.
Direct Rating: A one-step process that combines inspection and condition assessment. An alphanumeric rating (three categories, three subcategories each) is assigned to the component-section by the inspector. Rating is directly correlated to a CSCI value, but is less accurate than a CSCI derived from a distress survey. Quick, but no record of what’s wrong.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

About The Federal Facilities Council

The Federal Facilities Council (FFC) was established at the National Academies in 1953 as the Federal Construction Council. The mission of the FFC is to identify and advance technologies, processes, and management practices that improve the performance of federal facilities over their life-cycles, from programming to disposal. The FFC is sponsored and funded by more than 20 federal agencies with responsibilities for and mutual issues related to all aspects of facilities design, construction, operations, renewal, and management.

The FFC fulfills its mission by networking and by sharing information among its sponsoring federal agencies and by leveraging its resources to conduct policy and technical studies, conferences, forums, and workshops on topics of mutual interest. The activities to be undertaken in any given calendar year are approved by a committee composed of senior representatives from each of the sponsor agencies.

Much of the work of the FFC is carried out by its 5 standing committees, each of which meets quarterly. The majority of meetings include presentations by guest speakers from the federal community, academia, and the private sector and these presentations are open to the public. The presentation slides are posted on the Events page of this website. If you would like to automatically receive notices of new reports or upcoming events, please subscribe to the FFC listserv.
Within the National Academies, the FFC operates under the auspices of the Board on Infrastructure and the Constructed Environment (BICE) of the National Research Council. The BICE provides oversight and guidance for FFC activities and serves as a link between the sponsoring federal agencies and other elements of the building community, both national and international.

via http://www.4Clicks.com – Premier software for efficient construction project delivery – renovation, repair, sustainability – JOC, SABER, IDIQ, SATOC, IPD, MATOC, MACC, POCA, BOA …

Job Order Contracting – The Premier Industry Solution for Facility Renovation, Repair, Sustainability and Minor New Construction

4Clicks – Job Order Contracting Process and Software Overview

An introduction to Job Order Contracting best practices and technology.  Including e4Clicks Project Estimator, premier software for job order contraction (JOC) program management – cost estimating, visual cost estimating, project management, document management, and contract management.  For Owners, Contractors, Sub-Contractors, and AEs and efficient and transparent JOC program deployment and ongoing management and reporting.

 

Design-bid-build is a problem for everyone!   The low-bid system is particularly poor.  Both contractors and owners are rolling the dice when it comes to projects outcomes.  Contractors are forced to shave their profits to razor-thin margins and gamble on their ability to compensate with change orders and claims on the back end.  Owners have no idea what their final project costs are going to be, or the quality of the work. The result is commonly an adversarial relationship and even litigation.

“Job Order Contracting (JOC) is a method of managing multiple details of renovation, rehabilitation, repair, and other construction projects on a predetermined set of pricing and standards. By using JOC customers take advantage of a process that is fast and responsive to their needs while providing excellent quality construction.”

–Center for Job Order Contracting Excellence (www.jocexellence.org)

All of the branches of the military use some form or variation of JOC.   Though some, including the Air Force and Army apply more vigorous programs.

University campuses are probably the most geographically-similar to the military installation model and have been adopting JOC very successfully.

JOC penetration of healthcare is a little more recent, but there are some good examples in public healthcare entities.

Airports with security requirements are a natural fit for a long-term contract like JOC, but we also see public transit agencies using JOC for miscellaneous upgrades that their heavy infrastructure contractors may not be well-suited to complete.

Several states have also adopted JOC and they tend to do it in a very thoughtful, strategic way that serves as a model for other public entities in the state.

Municipalities use JOC for a variety of projects, and larger K-12 Independent School Districts who are often understaffed and need to deal with summer work surges use JOC very effectively too.

As in most business dealings, strong relationships are a key to success.

The long-term nature of JOC contracts (3-5 years) requires and allows contractors and owners alike to really dedicate themselves to making the relationship work.  They are not a single project and then you can walk away.  A lot of time is typically invested in early stages of a relationship—learning how our customers/contractors like things done, what their internal review process looks like, how they like to be communicated with, what their organizational structure is, etc.  JOC is a PROGRAM rather than a single project.

 

The pricing structure of JOC is very different from most other contract and/or construction project delivery methods.

Central to JOC pricing is a unit price book ( UPB ) and these come in two versions.  There is a standardized option, which is the most common, and is typically the RS Means Construction Cost Books, and represents a single nationwide price book / cost average, and commonly viewed as a North American standard.  RSMeans also provides local cost factors/indices (CCI/City Cost Index) to account for local pricing variations (available to zip code level as averages or  independently for material, equipment and labor).  City cost index information is updated quarterly, although “best practice” for JOC Contracts is typically considered to be annual updating of UPB information.  The importance of dynamic cost data, aka annual cost updating, vs. using static costs (same UPB data throughout the 3-5 year life of JOC program can not be overstated.

There are also customized UPBs for the owner and already has localized or specialized pricing applied, and/or a combination of both.

These UPBs contain contractual pricing for many if not most components of construction.  Any item not in the UPB is considered a non-priced item and is noted accordingly and can be added to the UPB in the future based upon the contract structure.

The competitively pricing component is accomplished by asking contractors to bid a coefficient (also called a multiplier or factor) which is applied to the unit price book throughout the term of the contract.  It can be a markup (+) or a discount (-), depending upon the UPB, the geographic location and other contract factors.

Project Management is more efficient, but new skillsets may need to be applied such as line item estimating  and definition of scope (planning function).  That said, line item estimating can be done very productively and with a significantly reduced learning, using advanced software programs such as e4Clicks Project Estimator.

Introductory and Advanced Software training is part of the services by 4Clicks Solutions, LLC.

Methods/Process will continue to evolve with changes in the industry.

Renewed focus on true pricing transparency through JOC.  Unit price/line items should provide full transparency, but only if owners fully understand the line item estimating process.

Connection to Capital Construction, FM—lines blurred

A lot of that is being driven by technology including BIM.  As we build a BIM database of the built environment JOC will have to absorb and leverage that, and new technology systems will emerge to do just that.  Imaging a day when you will not walk a job and then look up line items by CSI code, but will be given an electronic model and will pluck off 3-d items for demolition, and then choose from a selection of BIM items, already connected to a UPB, for reinstallation—updating the model as you build your estimate.  4Clicks is already working towards this type of system with its visually-based estimating systems, incorporating eTakeoff, etc.

JOC is very well suited to incorporating owner’s social responsibilities into its process—SBE and sustainability.

As this blog notes—the evolution and integration of JOC with the built environment and BIM is here.

 

 

 

Version 2 National Building Information Modeling Standard – United States – NIBS National BIM Standard – News – November 2011

The National Building Information Modeling Standard-United States™ (NBIMS-US™) Project Committee has approved 18 submissions to be included in Version 2 of the standard.  Areas addressed include -  reference standards, information exchange standards,  and best practices.

Approved reference standards:

• Industry Foundation Classes (IFC) 2×3
• World Wide Web Consortium (W3C) XML
• OmniClass Tables 13, 21, 22, 23, 32 and 36
• International Framework Dictionary (IFD) Library Update

Approved information exchange standards:

• Construction Operations Building information exchange (COBie)
• Information Delivery Manual/Model View Definition (IDM/MVD) Design to Spatial Program Validation
• IDM MVD Design to Building Energy Analysis
• IDM MVD Design to Quantity Takeoff

Approved best practices, guidelines and applications:

• BIM Project Execution Planning Guide – V2.1
• BIM Project Execution Plan Content – V2.1
• Minimum BIM
• Mechanical, Electrical and Plumbing (MEP) Coordination Requirements
• Planning, Executing and Managing Information Handovers

via http://www.4Clicks.com – Leading Software for Efficient Project Delivery Methods, Cost Estimating, and Project Management – JOC, SABER, IPD, IDIQ, SATOC, MATOC, MACC, POCA, BOA – All in one application.

High Performance Buildings and Standards – 2011 – Design Phase Commissioning – CA Building Standards

ROI - Commissioning

via 4Clicks.com – Premier provider of construction cost estimating and efficient project delivery method software and services – JOC, IPD, SABER, SATOC, MATOC, MACC, POCA, BOA, IDIQ, ….

Design Phase Commissioning (Cx)

What is Design Review?

It is a key part of building commissioning protocol that:

• Confirms design conforms to project requirements
• Checks documents are clear and complete
• Checks documents are free from significant error
• Suggests best practice design enhancements　

Design Review in the Code Compliance Context

• Confirm design conforms to codes
• Confirm performance path energy modeling inputs are reflected in design documents
• Confirm that CALGreenand Acceptance Testing
• Requirements are reflected in design documents

Design Phase Commissioning (Cx)

Benefits of Design Review

 

Cost & Time

• Reduce administrative time issuing RFIs and change orders
• Reduce number of significant change orders
• Reduce delays associated with resolving deficiencies

Save Energy 

• Increase best practices that go beyond Title 24

• Increase compliance with Title 24 energy requirements

Quality Building

• Is easier to construct and maintain

• Operates as intended

• Has lower long term operating cost

 

Martha_Brook_Presentation

Sustainability – For all the wrong reasons?

Companies focus upon “sustainabilty” for several reasons… in order of priority?….

1.  Perceived marketing value

2.  Regulatory Mandates

3.  Cost containment/competitive pressures

4.   An understanding of the critical importance of sustainability relative to climate change / etc. etc.

A focus upon sustainabilty without a similar focus upon existing buildings, existing conditions, project benefits and prioritization, as well as the efficiency of associated construction delviery methods and processes… to name a few…   is clearly inefficient, if not doomed to failure.

Sustainability is far to important to leave up to “ad hoc” methods, thus we can only hope that BIM is a rally point for better business “best practices” in the AEC sector.

Construction Delivery Methods are Critical to BIM – JOC & IPD

Recent articles illustrate the importance of construction delivery methods relative to improving productivity, communications, collaboration, and quality for facility construction.

Whether new contruction or repair, renovation, or sustainabilty ( green ) projects, proven, consistent workflow and construction project delivery systems can significantly improve facility life-cycle management and ROI.

The recent artice “Measure Twice, Cut Once” identifies JOC / Job Order Contracting – Article  – as a superior method for facility renovation, repair, and sustainability projects.  Below are a few excerpts.

It’s time to stop thinking of BIM as Revit, ArchiCAD, “et al”, and as a method to improve facility life-cycle management.  BIM, aka prior sentence can be a responsitory of standardized information, however, CPMS, CAFM, CMMS, and contruction delivery methods and software (JOC, IPD) software and processes will feed into BIM.  It’s time to take a good hard look at your construction processes, whether you are an Owner, Architect, Engineer, Contractor, Sub-contractor, oversight group,  ….

The Associated General Contractors of America identifies four challenges to Qualification Based Selection (QBS), of which JOC is considered a key delivery method;

1) Team members must adopt a true “win-win-win” collaborative culture,

2) Different procurement methods, processes and contracts are required for success,

3) Everyone must understand that a timely, proactive and escalated dispute resolution process must be implemented, and

4) QBS requires the complete involvement and support of all key members of senior management.

By building a common understanding and learning the ‘ways’ of each other, the owner and contractor begin to develop a working relationship, one of trust and purpose.

 

Step 1:

 

 

Owner contacts JOC contractor with project that they would like to utilize the JOC contract as the means to complete.  A successful JOC contractor will have processes in place to track every contact made by or to the owner for each project, almost like a construction diary. When the owner’s project manager (OPM). 

contacts the contractor, the contractor’s project manager (CPM) will obtain a basic description of the project and schedule a site 

 

 

Step 2: Site Visit. Depending on the type of project and its complexity the CPM may require a superintendent and quality control officer to attend the walk-through, as well as key subcontractors.

Step 3:

 

 

Written Scope of Work. Once the site visit has occurred, the CPM will develop a written scope of work based on the information obtained and discussions had. The owner may also prepare a written scope to compare to the contractor’s version. Again, the time-frame for the scope is identified in the original terms of the terms of the JOC solicitation/contract.

Step 4:

 

Line Item Estimate. After the contractor receives the approved scope, it will develop a detailed line item estimate, identifying all aspects of the project, from any demolition, safety items, through construction. JOC construction software is utilized, as typically identified within the original solicitation or contract. The software utilized will determine the format of the estimate. Since the unit price books are based on national averages with adjustments to location, some line items may appear high to some owners and low to others, with the concept that over time the cost of the line items average out for both the owner and the contractor. As the contractor identifies the appropriate line items for each task to be completed, the software program categorizes them by the appropriate division, provides a subtotal for each and then atotal. Depending on the complexity and size of the project, the estimate could range from few to many pages.

Step 5:

 

Approval and Notice to Proceed. Upon approval of the final written scope of work and the line item estimate, the owner will issue a task order, purchase order or work order, along with a notice to proceed. At this point the contractor will work with the owner to schedule a pre-construction meeting. This meeting is probably the most critical meeting other than the initial site visit.