Construction Productivity must be Owner driven – BIM, IPD, JOC

One thing is clear, the construction sector (architecture, engineering, contractors, owners, operators, users, suppliers) has been lagging virtually all other business sectors for decades with respect to productivity improvement.

I believe that the cause is largely cultural, however, any major improvement must be driven by Owners,and/or mandated by governmental regulation.

My reasoning is simple, Owners pay the bills.  Thus as long as Owners remain satisfied with the status quo and/or remain “uneducated” with respect to proven business “best practices” and lean management processes, as well as supporting technologies, economic and environmental waste will continue to be rampant.

Currently, my outlook is somewhat pessimistic.  If one looks at  capability and knowledge specific to life-cycle  facility management from an industry perspective, most has originated with the government sector, followed by higher education, state government, healthcare, process-based industries, etc. etc.    Basically, Owners whose mission is dependent upon their built environment tend to create and follow life-cycle management practices. These are Owners that can’t adopt a “churn and burn”, or “run to failure” approach to facility management.  These sectors can’t easily pack up and move if their facilities and physical infrastructure fail.

That said, even government owners, for the most part, have failed in any sort of department or agency-wide adoption of standardized best practices.  This is true even for  “simple” areas such as facility repair, maintenance, and renovation.  Only the Air Force appears to come close to having any true adoption of robust, proven, best-practices in this regard, as well as associated training, etc., most notably with their SABER construction delivery structure.

In order to effect measurable productivity improvement in the “construction” sector, , I have put together a core requirements “checklist”.

1. Robust Ontology – Cost effective information management and information reuse can only be accomplished with a detailed set of terms, definitions, metrics, etc.  This aspect is also critical to improved strategic and tactical decision support mechanisms.

2. An understanding of life-cycle management of the built environment from a collaborative, best-practices, process perspective as well as associated supporting technologies.  Forget the traditional strategy-design-construction-demolish approach.

3. Commitment to a total cost of ownership perspective including both economic and environmental costs vs. our classic “first-cost” mentality.

4. “Trust but measure” – Owners MUST conduct their own internal cost estimating and associated capital planning and compare these to contractor estimates, with each party using the same  data architecture (examples: RSMeans, masterformat, uniformat, omniclass).

5. Adoption of collaborative construction delivery methods such as Integrated Project Delivery, IPD, and Job Order Contracting, JOC, in lieu of antagonistic and inefficient design-bid-built, or even design-build.

6. STOP reinventing the wheel.  Nothing noted here is “rocket science”.  Many, if not most, processes, procedures, and technologies are readily available for anyone who does a bit of basic research!!!   Also, stop with the focus upon BIM from a 3D visualization perspective!  3D tools are great, and add value, however, INFORMATION and PROCESS drive success.

 

BLM2

Cloud Computing, Construction, Engineering, Architecture and Productivity

Cloud computing is a more than catalyst for change, it is a DISRUPTIVE TECHNOLOGY.  Cloud computing will drive significantly enhanced productivity within the Architecture, Engineering, Construction and Facility Management Sectors by enabling the consistent deployment of integrated project delivery methods.   Owners, Contractors, Architects, Engineers and stakeholders of the built environment will benefit if they focus upon CHANGE MANAGEMENT and how to best leverage cloud computing.

  1. Collaboration – True cloud computing (vs. cloud-washing, or simply posting legacy application to the cloud) lets users  work concurrently on projects in real-time (milliseconds)… virtually anyone, anywhere, anytime.  Multi-language and mult-currency, etc. can easily be implemented.
  2. Security – Information is NEVER deleted.  This is potentially the best form of security available.   “Who” does “What” and “When” is always tracked and changes can be “rolled back” at any time by authorized administrators.  Furthermore, only changes are transmitted vs. full data sets and even these are encrypted.
  3. IP Protection – Despite all the “hype” to the contrary, it is YOU, the user who determines how, when, and where to publish data.   For example, you can maintain information in your private area, publish as read only to specified members within a private cloud…or publish to all members in a private cloud, or publish information to all members in public cloud and enable rights to use and modify data.
  4. Visualization –  Despite the pervasive misunderstanding of BIM and unfortunate focus upon 3D visualization, DATA visualization and the associated development and implementation of the colloborative life-cycle management of built environment are the benefits provided by BIM.  Cloud computing will accelerate data visualization and transparency among all stakeholders of physical infrastructure and promote performance-based processes.
  5. Agility – Our work and natural environments are changing at an accelerated pace.  Rapid deployment, monitoring,  and the associated modification of processes and policies is becoming increasingly important.  Cloud computing deploys process faster than any other method currently available.   There is no longer a need to rely upon internal “IT” for deployment or applications specific changes.
  6. Mobility – It is neither cost effective, nor efficient to have everyone working in offices or specified work settings.  Resources need to be tapped from multiple locations enabling use of “the best of the best”, and resources with localized resources and/or capabilities.   Cloud computing allows direct, transparent access to local resources while also communicating centralized processes and procedures.
  7. Centralization of Information – While information can be scattered among several data centers, it also can be instantly consolidated to provide global management in support of an organization’s mission as well as associated, efficient local action.
  8. Business Continuity – True, Internet access is required, however, would you rather store your information at your location and risk catastrophic failure, or have your information at multiple locations designed with redundancy, power backup, etc.?

BIG DATA and EFFICIENT CONSTRUCTION METHODS (Integrated Project Delivery, Job Order Contracting), CLOUD COMPUTING, and BIM are here to stay, are you ready?

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

Roadmap
Roadmap
BIG DATA
BIG DATA

BIM Evolution

In the long history of humankind, those who learned to collaborate and improvise most effectively have prevailed.
– Charles Darwin

BIM, the life-cycle management of the built environment supported by digital technology, requires a fundamental change in how the construction (Architects, Contractors, Engineers) and facility management (Owners, Service Providers, Building Product Manufactures, Oversight Groups, Building Users) sectors operate on a day-to-day basis.  

BIM, combined and  Cloud Computing are game changers.  They are disruptive technologies with integral business processes/practices that demand collaboration, transparency, and accurate/current information displayed via common terminology.

The traditional ad-hoc and adversarial business practices commonly associated with Construction and Facility Management are changing as we speak.    Design-bid-build and even Design-Build will rapidly go by the wayside in favor of the far more efficient processes of Integrated Project Delivery – IPD, and Job Order Contracting – JOC, and similar collaborative programs.  (JOC is a form of integrated project delivery specifically targeting facility renovation, repair, sustainability, and minor new construction).

There is no escaping the change.   Standardized data architectures (Ominclass, COBie, Uniformat, Masterformat) and cost databases (i.e. RSMeans), accesses an localized via cloud computing are even now beginning to be available.   While historically, the construction and facility management sectors have lagged their counterparts (automotive, aerospace, medical, …)  relative to technology and LEAN business practices, environmental and economic market drivers and government mandates are closing the gap.

The construction and life-cycle management of the built environment requires the integration off several knowledge domains, business “best-practices”, and technologies as portrayed below.   The efficient use of this BIG DATA is enabled by the BIM, Cloud Computing, and Integrated Project Delivery methods.

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The greatest challenges to these positive changes are  the CULTURE of the Construction and the Facility Management Sectors.  Also, an embedded first-cost vs. life-cycle or total cost of ownership perspective.  An the unfortunate marketing spotlight upon the technology of 3D visualization vs. BIM.   Emphasis MUST be place upon the methods of how we work on a daily basis…locally and globally  − strategic planning, capitial reinvestment planning, designing collaborating, procuring, constructing, managing and operating.  All of these business processes have different impacts upon the “facility” infrastructure and  construction supply chain, building Owners, Stakeholders, etc., yet communication terms, definitions, must be transparent and consistently applied in order to gain  greater efficiencies.

Some facility life-cycle management are already in place for the federal government facility portfolio and its only a matter of time before these are expanded and extended into all other sectors.

BIM, not 3D visualization, but true BIM or Big BIM,  and Cloud Computing will connect information from every discipline together.  It will not necessarily be a single combined model.  In fact the latter has significant drawbacks.    Each knowledge domain has independent areas of expertise and requisite process that would be diluted and marginalized if managed within one model.   That said, appropriate “roll-up” information will be available to a higher level model.   (The issue of capability and productivity marginalization can be proven by looking a ERP and IWMS systems.  Integration of best-in-class technology and business practices is always support to systems that attempt to do everything, yet do not single thing well.)

Fundamental Changes to Project Delivery for Repair, Renovation, Sustainability, and New Construction Projects MUST include:

  • Qualifications Based or Best Value Selection
  • Some form of pricing transparency and standardization
  • Early and ongoing information-sharing among project stakeholders
  • Appropriate distribution of risk
  • Some form of financial incentive to drive performance / performance-based relationships

Where will BIM / Efficient Life-cycle Management Supported by Digital Technology Be in Five Years

A workshop with members from the BIM Academy, NBS, and various other was recently held to postulate on this topic.

As one might expect topics encompassed;  design, procurement, policy and standards, technology, education and culture, success to date, areas for innovation, challenges, and barriers to adoption.

As facilities costs are second only to personal/labor costs for most organizations, the need for breadth, consistency and transparency of BUILDING INFORMATION to understand, articulate, prioritize, and act upon requirements is readily apparent.    Information must be timely, accurate, transparent, actionable,  traceable, and shared collaboratively.

Change management is a requirement, and those adapt will excel, those that do not will fall behind.

A core, yet perhaps obvious observation was that ” There is a growing realization of the importance of data structure, quality and transferability, rather than geometry alone. We need to stop talking less about “the model” and more about “the data”.
“One participant noted a recent US comparative diagram mapping CAD adoption in the 1980s and recent BIM adoption. The trajectory has been much more rapid for BIM, however from recent discussions with US practitioners it appears the US is advanced in geometric, spatial and visual BIM uses but progress in the productive use of structured data, particularly into the operational phase, seems to be falling behind the UK.”

BIM management is misunderstood by some clients who regard it as purely a technological challenge which can be simply be solved by a software purchase and training, others are intimidated by a perceived complex restructuring of management processes. The truth lies somewhere between and follow the principles of Latham – get the process right before you think of the technology.

The role of IPD (Integrated Project Design) and JOC (Job Order Contracting) will become even more important.  It was also noted that collaborative working doesn’t necessarily demand multidisciplinary organizations. There is a balance to be struck between the efficiency gained from freshness and innovation often achieved from different organizations coming to together on a project basis and working collaboratively, however traditional  disjointed methods of procurement common in industry, such as design-bid-build or even design-build or CMAR do not fully encourage this.  IPD and JOC, the later a form of IPD for facility renovation, repair, and construction are proven methods of developing long term,  win-win multi-party relationships. “It’s crucial to get the right people involved early enough and understanding what outcomes they need from the start.”, and both IPD and JOC enforce this behavior.

Perhaps most importantly the topic of education rose front and center:

“It was agreed that this community also needs to escape from its silos. Some universities are starting to adopt a multidisciplinary curriculum supported by BIM, but this needs to become the standard not the exception. “Why not have a combined construction degree with final years dedicated to a specific discipline and practical work experience in between?””

BIM – Job Order Contracting – Integrated Project Delivery

Integrated design increasingly is recognized as a potential method to assure all performance criteria are considered and optimized in the design and construction of buildings. As indicated above, the participating disciplines must trust the validity of the information provided by other collaborators. – NIBS

It couldn’t be stated any clearer, though certainly could be broadened in context.  The efficient life-cycle management of the built environment, otherwise know as BIM, relies upon an integrated, collaborative process based upon accurate information and mutual trust.

Oddly, Integrated Project Delivery and Job Order Contracting both offer proven collaborative process supported by digital technology, yet are decades old.   Job Order Contracting, an integrated project delivery method specifically targeting facility renovation, repair, sustainability, and minor new construction projects has been practiced widely and to the highest degree by the United States Air Force.  While some may argue that JOC was developed by the Army, it is the USAF that recognized its value and deployed JOC (know as SABER in the USAF) in a widespread and robust manner.   Today, software (e4Clicks Project Estimator) and  robust cost databases (RSMeans – enhanced by 4Clicks Solutions, LLC) support almost all USAF bases in the US (over 90%) each and every day.  Thousands of contractors, AEs, and Government personnel engage in long term, mutually beneficial business relationships to complete virtually all projects in a quality manner on-time and on-budget.

The AECOO (Architecture, Engineering, Construction, Operations, and Owner) industry could learn a lot from this example.   Perhaps then, BIM might have a chance of greater success… sooner than later.

See the technology in action.

Job Order Contacting = Integrated Project Delivery for Renovation, Repair, Sustainability, and Minor New Construction

A New Resource for JOC – Job Order Contracting Services

Flexible, scalable implementation and management support for owners standing up or improving Job Order Contracting programs.

Lisa Cooley Associates was recently launched to help Owners implement Job Order Contracting and other solutions to the big problems that small projects can present. The new company has been established to help Owners bring sophisticated thinking and efficient, scalable processes ongoing renovation, maintenance, sustainability, and minor new construction programs.

Job Order Contracting was a delivery method ahead of its time when it was introduced a quarter century ago. But with construction industry changes swirling around us, Job Order Contracting will continue to evolve and adapt to stay relevant, becoming a part of newer technologies and processes like BIM and collaborative cloud computing, and forward-thinking processes like LEAN, to make JOC even better.

The construction industry is the only US industry to lose productivity over the last 30 years. Job Order Contracting presents a path to greater efficiency, but only when implemented correctly.  Lisa Cooley Associates and its Partners can help Owners make the decisions and set up  JOC programs in a way that improves staff efficiency and that of your contractors. Reiterative LEAN processes can help drive greater efficiency and cost savings.

Strategic Planning for JOC
The road to JOC begins with a careful assessment of your potential program. Historic and budgeted volume and project type are reviewed. Internal staff skillsets and resources are evaluated. Existing project management systems and styles are assessed for their applicability to and interface with JOC. Procurement requirements, including small business requirements and governing body mandates, are researched in conjunction with your staff. The goal of this planning phase is to understand how JOC will work within your organization and establish a framework for success.
UPB and Software Selection
The selection of a Unit Price Book can be confusing amid industry rhetoric and lack of clarity around the options available. We can help advise you on standardized and customized pricebooks, periodic update options, customization of line items, and integration of specifications. Contract provisions which govern the use of line items can also be critical, and we can help you craft requirements that bring you the greatest value.
RFP Development
With our extensive knowledge and database of RFP provisions, we can help you craft a procurement document that will drive the results that you desire. Your standard general conditions will be reviewed and modified to the JOC environment as necessary. JOC-specific requirements will be incorporated to clearly communicate contractor expectations. We can guide you on potential selection criteria and weighting to ensure selection of the contractor that meets your needs.
Procurement Assistance
If JOC is a new process for your organization, it may be new for your contracting community, too. We can help orient and prepare your existing contractor base for responding to your RFP, or we can garner interest from leading Job Order Contractors around the nation. We can serve as a technical advisor to your selection committee.
Training
Training begins in the Strategic Planning phase, with Introduction to JOC sessions for internal staff as we work to define your program. More in-depth training occurs in the implementation phase, when we make sure that your staff is well-versed in the use of your software and line item estimating takes place.
Program Alignment, Partnering, and Leaning
JOC is relational contracting. JOC programs suffer when there is a lack of alignment among team members. Our approach to partnering is different. It is based on data collection and oriented to process improvements using LEAN principles. We lead you and your JOC contractor in a series of meetings to map processes, clarify communications, and drive your program towards greater efficiency.
Independent Estimates and Line Item Proposal Review
The unit pricing structure of JOC has real value from a procurement and process point of view, but it can cause consternation among personnel that aren’t familiar with it. It is critical that your staff be empowered with an understanding of your unit price book, and our first goal is always to empower you with the skills to effectively review line item proposals for accuracy through in-depth training and support. But some owners lack the skill or the time to develop independent estimates (as the federal government does) or conduct a full line item review. We can help with a range of support from telephone help line support to full proposal review, reporting, and negotiation with contractors.
Ongoing Assessment
To maximize the effectiveness of your JOC, you need to continuously assess internal processes and gridlocks, contractor performance, user satisfaction, timeliness, and cost. We can help you design assessment tools and surveys to track progress, and generate reports for governing bodies.
Program and Project Management

 

 

THE HISTORY OF JOC

Intro to JOC

Job Order Contracting is an indefinite-quantity, performance-based delivery method for small- to medium-sized construction projects (the typical “sweet spot” for projects under a JOC program is $25,000 to $1.5 million, though projects can certainly fall outside of this range). The fundamental feature of a Job Order Contract is the use of a Unit Price Book (UPB) and competitive pricing through a coefficient (sometimes called a multiplier or factor) applied to all line items within the UPB. With a long-term contract in place and pricing agreed to up front, owner and contractor can turn their focus to the efficient execution of projects.

The beauty of JOC is a streamlined design and procurement process that right-sizes pre-construction work for smaller project. Scoping and design can be completed in days or weeks instead of months, with design at the level of detail that brings greatest value to the project. And while the unit pricing structure provides flexibility for emergency work, this well-defined scoping process more typically provides a clear scope of work for the contractor and a firm fixed price for the owner. Finally, the long-term contract with a low guarantee of work incentivizes a contractor to perform at a high level to maximize project volume.

Job-Order-Contracting-Coefficient-ExampleKey features of JOC:

  • A long-term (3-5 years) umbrella contract
  • Competitive pricing through the use of a competitively-bid coefficient applied to a unit price book (UPB)
  • Individual delivery orders are firm fixed price (based on defined scope of work and contractual pricing)
  • A contract structure and contractor selection process that drive performance

 

History of JOC

JOC was developed in the US Army in the mid-80’s to address the big challenges faced in the execution of small projects. The Army found that these smaller projects were taking up to a year to procure, with 8-22% of the project budget consumed in design and procurement costs. Change orders were increasing final costs by as much as 50%, and claims and litigation were diverting the attention of project management staff. Ultimately, the Army determined that low bid procurement of these projects was driving low quality results. The impact was a large backlog of small projects and a negative impact to the Army’s mission.

So the Army crafted JOC to meet their needs for performance, efficiency, and procurement compliance. The results were clear. Early studies done on JOC in the Army clearly demonstrated that JOC provided faster delivery of projects, higher quality construction, fewer change orders and warranty issues, for a fair price. The study also showed that the contracting tool helped to maximize construction budgets and provided increased opportunity for small and disadvantaged business through subcontracting opportunities. Most importantly, the Army found that JOC transformed their adversarial contract relationships into productive partnerships.

Soon after the Army rolled out JOC at a number of pilot installations, other military branches followed suit (with the Air Force christening it SABER, or Simplified Acquisition of Base Engineering Requirements) and public owners outside of the federal government started to take notice. Early adopters included the National Institutes of Health, Spring Branch ISD and municipalities. From 2000 on, JOC saw widespread use in areas of high growth like Arizona, Texas, and the DC beltway. Around this time, the first cooperative purchasing JOC was implemented, and many owners began to access JOC by this means.

 

VIA http://www.4Clicks.com – Premier cost estimating and efficient project delivery software of JOC – Job Order Contracting, IDIQ, SABER, SATOC, MATOC, MACC, POCA, BOA.

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]

Job Order Contracting – JOC ( Integrated Project Delivery for Renovation, Repair, Sustainability, and Minor New Construction)Requires Owner and Contractor Expertise, Commitment, Trust, and More.

Of the two dedicated Job Order Contracting Solutions available in the United States, one provides and recommends an open, transparent, and mutually collaborative approach, including an independent, nationally recognized and vetted cost database, developed and customized as required to client requirements, from RSMeans Company LLC.

A recent Audit Report by the New York City Comptroller on a non-RSMeans based system, highlights some critical aspects of any JOC – Job Order Contracting – program.

(Report Beginning)

Audit Report on Job Order Contracting by the Department of Design and Construction (note: This is one of many audits over the past several years, with few problems resolved).
JUNE 28, 2012

AUDIT REPORT IN BRIEF

Download the Complete Report (pdf 214 KB)

The Department of Design and Construction (Department) manages the design and construction of more than $6 billion new and renovated City facilities such as firehouses, libraries, courthouses, sewers, and water mains.  The Department uses job order contracting (JOC), a construction procurement method, for performing small- or medium-sized construction projects.  Under a job order contract, the Department’s Job Order Contracting Unit (JOC Unit) can direct a contractor to perform individual tasks as needed rather than awarding individual contracts for each small project.  The cost of JOC work is based on previously established unit prices for specific items (e.g., roofing, drywall, etc.).  Using the established unit prices, the JOC Unit will issue a job order to a job order contractor to carry out the work based on specific tasks.

The Department’s use of JOC began in 1996 when the Department employed a consultant, The Gordian Group, to develop and implement the Department’s JOC program that included creating a catalog of unit prices, software (PROGEN), and training and ongoing management throughout the life of the contract.

In Fiscal Years 2009 and 2010, the Department utilized 19 job order contracts authorizing  up to $74 million in construction expenditures.  Under these contracts, the Department executed   139 specific job orders totaling $24,549,827.

Audit Findings and Conclusions

The Department is unlikely to attain between $2 million and $3.7 million in cost savings from the JOC program because the program is not being administered as effectively as it should be.   Had the program been administered more effectively, the Department might have achieved a cost saving that, according to the Department’s JOC Training and Reference Manual, could  “save a typical facility owner 8-15% [highlighted in the manual] in overall project costs as compared to traditional contracting methods.”  Specifically, we found that job orders are not developed in a timely manner, cost estimates are not reliable indicators of the actual cost of work, and construction work is not carried out in a timely manner.  Moreover, there is a lack of guidelines that spell out the circumstances and monetary threshold for job order work and a lack of standards for measuring whether the JOC program is, in fact, achieving anticipated cost savings.

Furthermore, when job order work was delayed, the Department did not impose liquidated damages totaling more than $450,000.  Additionally,  problems with the Department’s PROGEN database impede the Department’s ability to effectively monitor the status of JOC project work and ensure that projects are proceeding expeditiously.  Finally, our observation of sampled job order projects and a review of file documentation leads us to conclude that the quality of work overall was satisfactory. 

Audit Recommendations

This report makes a total of 12 recommendations, including that the Department:

  • Formulate measurement criteria to assess whether the JOC program is attaining its goal of achieving savings in overall project costs.
  • Complete development and submit job orders for registration within the required 45-day timeframe.
  • Provide independent estimates for job order work.
  • Ensure that JOC contractors complete work on schedule.
  • Develop and implement written guidelines that stipulate the circumstances and monetary threshold under which the use of job order contracts would be appropriate.
  • Ensure that all job orders contain provisions for liquidated damages.  Determine whether liquidated damages should be assessed for the cases noted in this report.
  • Ensure that accurate and complete information is recorded in the PROGEN system.

(Report End)

What JOC should be….

“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)\

Benefits that could be realized by implementing a robust job progam:

Faster project delivery (3-9 months less), Streamlined engineering and design, Cost visibility/transparency, Better contractor performance, Integrated Team – Partnering/collaborative owner/contractor relationship, More opportunities for local business, Effective use of year-end funds, Higher overall satisfaction

Items to Consider for a Robust, Transparent, and Successful JOC Program:

Assess in-house capabilities
   Project Management Capacity
   Skillsets
      Line-item estimating, or ability to review  estimates, Proactive definition of scope, In-house maintenance crews
Training Plan
How will JOC interface with your design professionals?
Flowcharting how JOC process will interface with purchasing, management and board approvals
Contractor Requirements{
  Company culture of high performance needed to succeed in JOC?
  Ability and capacity to create productive teams?
  Proactive rather than reactive?
  Line item estimating capabilities?
Additional items for consideration for implementing or improving a JOC – Job Order Contracting or SABER Program:
o Your specific requirements, implementations, responsibilities, level of involvement, and rules for youre JOC or SABER Project Delivery Program
o Basic elements of JOC
o Requirements of a Successful JOC Program and is it the right method
o JOC Operations including how to set up a JOC Program
o Roles and Responsibilities of those involved
o Individual Job Order to include Preconstruction Services, Scope of Work, Price schedule and change orders
o How to manage a JOC Program to include training, reporting, communication tools, relationship building techniques and audits
o Job Order Pricing
o JOC Selection Process
o Legal considerations and contracts which are key to a successful JOC Program
o JOC Operations Manual
o Collaborative Thinking to ensure win-win-win results
o Review of past experiences / case studies of others
o Role of Technology and selecting appropriate JOC Program Partners
o The Value / Importance of Objective third-party cost data / UPBs
via http://www.4Clicks.com – Premier providers of cost estimating and project management software for efficient project delivery – Job Order Contracting – JOC, SABER, IDIQ, SATOC, MATOC, MACC, POCA, BOA.

The Reasons BIM is Going Nowhere Fast

July 16th, 2012 – NIBS Report –  National Institute of Building Sciences Consultative Council  

Per the NIBS  Consultative Council there are four areas where our industry needs to focus highlights four  in order to improve buildings and infrastructure.

  1. Defining High-Performance and Common Metrics
  2. Codes and Standards Adoption and Enforcement
  3. Energy and Water Efficiency; and
  4. Sustainability.

The Consultative Council provides findings and recommendations to the President and Congress on issues impacting the built environment. A summary of the report, “Moving Forward: Findings and Recommendations from the Consultative Council,” is in the Institute’s 2011 Annual Report to the President of the United States.

  • The building community should work to define metrics for achieving high-performance buildings—including both qualitative and quantitative measures.
  • The National Institute of Standards and Technology, the U.S. Department of Energy, the Institute and others should encourage cities and smaller communities to adopt and enforce updated model codes.
  • Regulators and the building industry should support efforts by codes and standards developers and adopting jurisdictions to format criteria in ways that simplifies and enhances the ability to verify compliance.
  • Software developers, regulators and building professionals should support the development of building information modeling (BIM ) for use as an automated code-checking tool that can improve compliance and streamline the approval process.
  • The U.S. Government should develop incentives for state and local governments to require water metering of all buildings and to adopt and enforce comprehensive “green” building or plumbing codes.
  • The U.S. Government should provide a tax incentive for building owners who voluntarily get their buildings audited and that implement the recommendations to reduce energy and water use.
  • Policy makers and members of the building community are encouraged to use a common definition for sustainability.
  • The building community needs mechanisms (e.g., budgets, insurance and tax incentives) to help finance sustainable life-cycle performance for buildings and related infrastructure.

There is virtually nothing “new” in any of the above, nor any plan to gain traction in any particular area, let alone all.  Until our industry and our Nation realizes the importance of efficiently managing the life-cycle of the built environment and defines processes and deploys digital tools to support requisite changes, BIM doesn’t have a chance.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

via http://www.4Clicks.com – Premier software for cost estimating and efficient project delivery – Job Order Contracting – JOC, SABER, IDIQ, MATOC, SATOC, MACC, POCA, BOA, etc.  Exclusive 400,000+ line item enhancement of RSMeans Cost Data, visual estimating including QTO and Pattern Search, Document/Project/Program Management.

 

Consultative Council members that contributed to the 2011 report include: ASTM International; American Institute of Architects; American Society of Civil Engineers; ASHRAE; Associated General Contractors of America; Building Owners and Managers Association, International; Construction Specifications Institute; ESCO Group; Extruded Polystyrene Foam Association; Glass Association of North America; Green Mechanical Council; HOK; Illuminating Engineering Society; International Association of Lighting Designers; International Association of Plumbing and Mechanical Officials; International Code Council; Laborers’ International Union of North America; National Insulation Association; NORC at the University of Chicago, and United Association of Journeymen and Apprentices of the Plumbing and Pipefitting Industry.

National Construction Contracts and Law Survey – UK – 2012

NBS National Construction Contracts and Law Survey 2012

by Adrian Malleson
Research and Analysis Manager, RIBA Enterprises (Source: http://www.thenbs.com/topics/ContractsLaw/articles/nbsNationalConstructionContractsLawSurvey2012.asp?utm_source=eNews-Weekly&utm_medium=email&utm_campaign=2012-07-09)

From March to April 2012,  NBS a survey about contracts and legal issues within the UK construction industry.  to understand, among other things:

  • The different contracts and procurement methods being used
  • At what point in the process contracts are signed
  • The number and kinds of disputes taking place
  • How frequently partnering or collaborative working are used in construction projects.

To help the survey get industry wide representation more than 20 industry bodies, including the RIBA, assisted by getting their members to take part. Over 1,000 responses from across the industry were received.  This cross industry participation has meant that, for the first time, the UK now has had a broad based, independent survey of these areas. The responses weren’t just from architects and other consultants: clients and contractors took part too and the report breaks down responses by each group.
The findings give a full and at times startling picture of the UK construction industry’s relationship with contract and law.

In some ways, the industry remains rather traditional.  Collaboration, team integration and partnering have, at best, only been partially realised.

When we look at the contracts the industry uses, we see that traditional forms of contract still dominate. Sixty per cent of respondents tell us that the JCT Contracts are the ones they use most often, and 72 per cent of people used JCT Contracts at least once in the last year. That said, the NEC Contracts, associated more with non-traditional, collaborative working and procurement, have a firm place in the industry. Sixteen per cent tell us they use them most often and 29 per cent have used them at least once in the last year. For standard forms of contract, JCT and NEC dominate; together they are used more than all other standard contract types combined.

That said, “bespoke” contracts are widely used too; almost one quarter of respondents had used them in at least one project in the last year. Twenty years ago, the Latham Report concluded: “Endlessly refining existing conditions of contract will not solve adversarial problems. Public and private sector clients should begin to phase out bespoke documents“. That “phasing out” is turning out to be a long process – but one we’ll be able to track with subsequent surveys.

The adoption of electronic working also shows the traditional ways of working still remain. While we continue to envisage an electronic future of BIM orientated, collaborative working, more than 40 per cent of consultants and clients are still not using electronic tendering at all. There’s work to be done.

The report also gives an understanding of the number of disputes: both the perceived trend in the number of disputes in the industry and the number of disputes actually gone into by respondents.

Ninety-two per cent of the respondents agreed that the number of disputes in the sectors had either increased or stayed at the same level, with the current state of the economy being most often described as the cause. This somewhat dark assessment is borne out by almost one quarter of those taking part in the survey having been involved in a dispute during 2011.

It’s significant that 49 per cent of contractors who completed the survey tell us that “poor specification” is a “most difficult or recurrent issue” leading to dispute.

Together, the issues people gave as the causes of dispute make clear the need for jointly owned, standardized information. A clear information model including tight specification and variance tracking can help prevent legal action later.

So, the overall picture that emerges is one of an industry that still makes use of traditional methods but which sees the place for more innovation.

In many of the comments people made when completing the survey we could see a real desire for construction to be a collaborative, team-based enterprise where extra value is generated through cooperation. We hope to be moving towards a more collaborative industry. This move towards collaboration goes hand in hand with the move towards shared, co-owned information as well as in the choices of contracts and working methods.

One of the most, if not the most, significant impediments to true team working and collaboration is legal dispute whether actual, threatened or envisaged. The survey uncovered these disputes are disruptive, expensive and not uncommon. That’s why from the outset, projects need standardized, shared information models that are easy to update, maintain and act upon. These need to clearly delineate where risk and responsibility lie. That’s not to say the solution is just a technical one, or one of keeping records, though doing these things well can only help. Any information model, any discharge of a contract, can only be as successful as the team that creates and uses it.

National Construction Contracts and Law Survey 2012

Hope you enjoy reading the full report.

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