Job Order Contracting Solutions

OpenJOC Soutions

OpenJOCTM LEAN JOB ORDER CONTRACTING SOLUTIONS

The OpenJOC approach drives maximum productivity by leveraging proven LEAN construction delivery processes.

1. Process – A written Job Order Contract Operations Manual / JOC Execution Guide plays a central role by fully documenting roles, responsibilities, business practices, means, methods, and outcomes.

2. Information – A shared common data environment, CDE, assures a mutual understanding of all project requirements. Industry standards terms and definitions, in plain English, and a standardized, detailed listing of locally researched construction tasks inclusive of labor, material, and equipment costs (organized using CSI MasterFormat).

3. Uses – On-demand renovation, repair, maintenance, sustainability projects and minor new construction are supported within the OpenJOC environment.

4. People – Real property owners and/or facilities management provide leadership, without excessive management and control. All participants contribute to project success within and atmosphere of collaboration, mutual respect, and shared risk/reward.

5. Technology – The role of technology is one of enablement. Cloud technology provides a secure method for all participants to create, view, and share current actionable information. Communications, tasks, and documents are all maintained in a common digital environment.

6. Assessment & Training – Key performance indicators, KPIs, and regular audits, as well as required ongoing training, assure proper JOC Program implementation, management, and continuous improvement.

OpenJOC LEAN JOB ORDER CONTRACTING SOLUTIONS

www.4bt.us

Multi-Site Facility Renovation, Repair, Maintenance, & Sustainability

Facilities operations involving multiple sites and building types/ages can be efficiently managed with the right mix of global oversight and local execution as well as consistent application of LEAN best management practices.

strategic facility management and BIM

Visibility and communication at global and local levels is critical, including the ability to track the  work order status and cost from concept thru warranty period.

Ad hoc, pen-and-paper based, systems must be replaced with appropriate technology that can provide a permanent record of core activities.

Procurement must be based upon BEST VALUE,  and also used standardized terms, definitions and data sets, and rely upon the support of internal and external teams, as well be integrated with collaborative construction delivery methods such as Job Order Contracting, JOC.

Automated work order system and electronic cost estimating and project management capability  provide  visibility and control of facilities maintenance and repair processes.

True collaboration and longer term relationships with contractors and subcontractors, where both parties share common goals, risk/reward, and mutual respect is equally important.

Work orders should be request and managed locally with appropriate global oversight, including regular audits.  “Trust but measure” is a core component of LEAN, as are continuous improvement, and key performance indicators, KPIs.

Robust LEAN construction delivery processes must be implemented consistently throughout the organization, while also taking into account local requirements and conditions.

Any effort or resource expended should be Outcome-based.  The goals is to improve the ability to track progress and to accelerate the time-to-resolution of prioritized open work orders, in order to maximize limited resources.

Value-based selection of contractors and longer term relationships provide local knowledge of building and service requirements, on-demand quality service, and maximized efficiency.  Operational efficiency is improved, while costs are reduced due to the reduction of change orders, improved quality, and a higher percentage of projects delivered on-time and on-budget.

Key performance indicators, KPI’s provide metrics that to hold both Owners and service providers more accountable with quantitative, current, and actionable information.

Owners and oversight groups must provide leadership and be capable of understanding the processes and value of collaborative construction delivery and associated life-cycle facility management methodology.  Without this leadership, Owners don’t stand a chance of efficiently managing their real property portfolios.

job order contracting

Alternative LEAN construction delivery provides significantly higher  visibility into overall maintenance and repair spending.    Properly implement project delivery timelines can be reduced from years to months, or from months to weeks.   Significant reductions in costs can also be achieved, in the range of 15% to 50%.

Improving Construction Productivity = Collaboration & Alternative Project Delivery

 

Eight Steps Toward Improving Construction Productivity

Partnering and collaboration must be a key performance metric by which real property owners and facility management professionals are measured.  Until this occurs, there is little hope for construction sector productivity improvement.

 

  1. Owners Foster and Mandate Collaborative Construction
  2. Best Value versus Lowest Bidder Procurement
  3.  Full Financial Transparency
  4.  Shared Risk / Reward
  5.  Mutual Goals & Trust
  6.  Common Terms, Definitions, and Data Architectures
  7.  Continuous Education, Improvement and Monitoring
  8. Adoption of LEAN Alternative Construction Delivery Methods – Job Order Contracting, JOC & Integrated Project Delivery (IPD)

JOB ORDER CONTRACTING

BIM has stagnated, and the construction industry (Architecture, Engineering, Construction, Operations, and Real Property Owners) as a whole remains unproductive due lack of focus upon process change management.

While most of us are aware that early and ongoing communication among all renovation, repair, or new construction stakeholders is the path to success, its rare that a team is established that is both clear on objectives and working towards common objectives.

Successful outcomes should be the objectives of ALL participants and partnering must not only be encouraged but mandated by real property owners.

Partnering is can not be accomplished solely through the implementation of technology. Nor is excessive management and control the path to success.  Adopting and fostering of LEAN best management practices, specifically developed for construction and which focus upon outcomes, is the path to productivity improvement.

Job order contracting and integrated project delivery are two examples of LEAN construction delivery methods that share decades of successful implementation and enable higher quality and a higher percentage of projects to be completed on-time and on-budget.

The most important element to successful project delivery is an educated and capable Owner.  An Owner that understands collaborative construction delivery and is focused upon successful outcomes for ALL project participants and stakeholders.

Technology will do little to solving the construction industry’s productivity issues. Despite the marketing of software vendors, technology is simply an enabler for faster and lower cost consistent deployment.  The key to success is the best management practices and processes embedded within technology.

Real property owners required training and ongoing professional development.  This includes real property executives, facility management, technical/engineering teams, cost estimators, purchasing/procurement, and facility users.   Educational institutions must also alter their programs.   Examples of competencies and content include; life-cycle management of the built environment, total cost of ownership practices, LEAN best management practices, and collaborative and/or alternative construction delivery methods.

Mandatory Partnering

While mandatory partnering may seem contradictory, it is not.   All construction contracts, projects, and programs should include a operational manual.  The manual describes the roles, responsibilities, deliverables, and outcomes for all parties.  While each manual can, and should be tailored to each owner’s requirements, common components of the core framework are ever present.  The operations manual spells out all requirements, terms, etc., associated with the collaborative construction delivery process.  An example of a job order contracting process is shown below.

job order contracting

OpenJOCcycle

Common elements to any LEAN Collaborative Construction Delivery Method

Common elements to implementing a productive LEAN construction delivery methods include the following:

 

Owner Leadership of Team Collaboration

Best Value Procurement

Mutually Beneficial Goals and Outcomes

Performance-based Reward System

Shared Risk/Reward

Common Terms, Definitions, and Data Archtectures

Outcome-based Key Performance Metrics – KPIs

Continuous Monitoring, Improvement, and Education/Training

Global Oversight with Local Implementation

 

” Great care is taken to establish an IPD team where participants can work together as a collaborative unit. Team formation considers capability, team dynamics, compatibility, communication, trust building and commitment to an integrated process….Once a team is formed, it’s important to create a team atmosphere where collaboration and open communication can flourish.” – AIA

 

One of the most important life lesson that I have learned is that success or failure is generally not determined by a problem, issue, or even an opportunity, but rather by how we react and deal with the situation.   Whether it’s a construction project, or other situation,  if we react and act as a team versus as individuals, outcomes are ultimately improved.

“The goal of everyone in the industry should be better, faster, more capable project delivery created by fully integrated, collaborative teams. Owners must be the ones to drive this change, by leading the creation or collaborative, cross-functional teams comprised of design, construction, and facility management professionals.” – CURT

BIM & Efficient Life-cycle Management of Facilities & Infrastructure

bim and efficient life-cycle facility management

Efficient life-cycle management of facilities and other physical infrastructure is impossible until real property owners are better educated and truly capable in their role as stewards of the built environment.

LEAN best management practices and associated collaborative construction delivery methods (Integrated project delivery – IPD, Job Order Contracting – JOC, etc.) are REQUIRED in order to deliver quality renovation, repair, sustainability, and new construction projects on-time and on-budget.

Most Owners do not have the educational background or professional experience needed to consistently deploy LEAN construction delivery methods and/or life-cycle management.

job order contracting

job order contacting - JOC

Job Order Contracting – JOC, Training, & Motivation

Job Order Contracting – JOC – delivers greater numbers of quality projects, on-time and on-budget projects, as well as higher overall satisfaction levels than  “traditional” construction delivery methods such as design bid build, design build, CM@R, etc.   For this reason, the top 5% of Owners and Contractors depend upon JOC for horizontal and vertical renovation, repair, and minor new construction.

However, not all Owners and Contractors are ready for job order contracting. JOC requires higher levels of transparency, collaboration, motivation, and training than less productive traditional construction delivery methods.  It also requires shared/risk reward and common terms, definitions, and data architectures.  Many of these characteristics are foreign to Owners and Contractors sole experienced with arcahic and unproductive processes and outcomes associated  with low-bid procurement and dependent upon excessive change orders to complete construction projects.

Leadership and training versus excessive management and control are common with job order contracting.   In fact, on going training and continuous improvement are requirements for all LEAN construction delivery methods (job order contracting – JOC, integrated project delivery-IPD, etc.)

Studies have demonstrated that ongoing training and the selection of the construction delivery method are directly linked to motivation, as well as overall outcomes.  For example the below chart clearly demonstrates that more frequent training leads to higher levels of motivation (2016, Moriarty, T.)

job order contracting

Similarly the benefits of Job Order Contracting are are shown below.   Again, however, these benefits can only be recognized through the implement of LEAN best management practices and continuous support, monitoring, and ongoing training.
JOC - DB - DBB
(2015, Job Order Contracting – Performance Study – ASU / PBRSG)

 

LEAN – Job Order Contracting WebCast – Society of Military Engineers Facility Asset Management Committee

“LEAN – Job Order Contracting WebCast” – Society of Military Engineers Facility Asset Management Committee

On April 14th, The Society of Military Engineers (SAME) Facility Asset Management Committee hosted a WebCast presented by the Center for Job Order Contracting Excellence – CJE.

The WebCast titled, Efficient Renovation, Repair, and Minor New Construction LEAN – Job  Order Contracting, Best Management Practices,  was well attended and well received by attendees.

Presenters included:

Peter Cholakis, CJE Board Member

Charlie Bowers, LEED AP – CJE Board Member, Center for Job Order Contracting Excellence

 Jacob Kashiwagi, PhD, – Program Manager/Lecturer, Performance Based Studies Research Group, School of Sustainable Engineering and the   Built Environment, Ira A. Fulton Schools of Engineering, Arizona State University

WebCast Outline:

  • Definition of JOC (Termed SABER / Air Force)
  • JOC Best Management Practice Areas
  • Defining Characteristics of a JOC Program
  • Experience, Capability, and Technology Requirements
  • Roles – Owners, Contractors, Subcontractors, Oversight Groups, COOPs, Service Providers
  • Performance Metrics
  • Lessons Learned
  • ASU 2015 National JOC Research Study

“Owner implemented and managed Job Order Contracts are, by far, the fastest growing.” – Charlie Bowers, CJE Board Member

“We need to make more Owners aware of JOC, as it clearly provides major benefits such as the highest rate of on-time, on-budget, projects, as well as higher quality and greater overall satisfaction” – WebCast Attendee

“Only a fraction of Owners are aware of JOC” –  WebCast Attendee

“Five percent (5%) or less of real property owners are aware of JOC and practice Job Order Contracting using “best management practices” – Peter Cholakis, CJE Board Member

“The biggest obstacle to efficient construction delivery is Owners not hiring experts, not using BEST VALUE procurement, and not allowing competent experts to exercise their expertise” – Jacob Kashiwagi  –  Performance Based Studies Research Group -p PRBSRG,  Arizona State University

20160414-SAME Facility Asset Management WebCast

20160414-SAME Facility Asset Management WebCast

 

Collaboration Matrix

job order contractingjoc CERTIFIED

BIM Policy Lags Techology

The primary challenge to BIM and the efficient life-cycle management of the build environment in general is a lack of awareness and education specific to total-cost-of-ownership and associated decision support tools.

BIM Policy

Owners simply are not capable of implementing required elements to enable BIM.  For example, BIM requires the following elements.

  • Collaborative construction delivery methods (Intergrated Project Delivery – IPD, Job Order Contracting – JOC)
  • Common terms, definitions, and data architectures
  • Metrics/Key Performance Indicators
  • Shared Risk/Reward
  • Trust/Mutual Respect
  • Written policies and procedures that fully define roles, responsibilities, and deliverables
  • Ongoing education and training
  • Continuous improvement
  • Supporting and open technologies

BIM Policy

 

 

 

LEAN Facility Renovation, Repair, & Construction

Collaboration Matrix

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.

  1. Early and ongoing participation of all project participants (owners, contractors, A/Es, subs, engineering, procurement, project managers, planners, oversight groups, users)
  2. Documented roles, responsibilities, deliverables, and metrics
  3. Shared risk/reward
  4. Continuous improvement
  5. Common terms, definitions, and standardized information formats (for example, UNIFORMAT, MASTERFORMAT, IFC…)
  6. Financial transparency (example – commerical unit price book, UPB – material, equipment, labor, productivity).

4bt processOpenJOC

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

Real Property Owners – Stewardship Needed to Improve Construction Productivity

Why Do Construction Projects Fail?

Real Property Owners continue to under-perform when it comes to facility or infrastructure renovation, repair, sustainability or new construction.

– 80% of projects exceeded budgets by more than 10%
– 75% of projects exceeded a 10% increase in delivery time
– 30% of Owners prepared a quantitative risk analysis
– 32% of Owners have a high level of trust in their contractors
– 70% of Owners blame contractor for poor project performance

The primary reason for poor construction performance is  lack of education, awareness, and capability on the part of Owners.  Until Owners adapt collaborative LEAN construction delivery and are capable of consistent deployment, little will change.

Construction Delivery Method Usage 2015

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