Owner focus upon a BEST VALUE approach to facility management is required in order to maximize productivity and minimize waster. Prevalent “low bid” design-bid-build construction procurement and delivery and it’s associated narrow consideration of “first costs”, is extremely wasteful and typically results in poor quality, project delays, excessive numbers of change orders, and overall higher costs. Even approaches such as design-build or CM@R don’t achieve maximized performance and satisfaction levels.
BEST VALUE construction project delivery methods include Integrated Project Delivery – IPD, and Job Order Contracting, JOC. Both contractually require collaboration among project participants and deliver superior quality as well as on-time and on-budget performance.
Best practice IPD, JOC and related collaborative LEAN construction delivery methods share the following characteristics.
- Early and ongoing participation of all project participants (owners, contractors, A/Es, subs, engineering, procurement, project managers, planners, oversight groups, users)
- Documented roles, responsibilities, deliverables, and metrics
- Shared risk/reward
- Continuous improvement
- Common terms, definitions, and standardized information formats (for example, UNIFORMAT, MASTERFORMAT, IFC…)
- Financial transparency (example – commerical unit price book, UPB – material, equipment, labor, productivity).
The are multiple benefits to be gained by LEAN construction delivery participants.
- Improved Customer Service and Responsiveness.
- Shorter Procurement Times
- Decreased Overall Project Delivery Times
- Reduced Procurement Costs
- Greater Financial Visibility
- Longer term relationships
- Shared Risk/Reward
- Higher Quality
- Greater Frequency of On-time Projects
- Greater Frequency of On-budget Projects
- More Funds Allocated to Construction versus Administration
- Fewer Change Orders
- Virtually Elimination of Legal Disputes
- Greater Overall Satisfaction
- Best Value