Owners – Make your Contractors Happy!

Owners, Contractors, and AEs Must Work Together

Poor productivity in the construction sector is a well known and persistent issue.  The solution to delivery renovation, repair, and new construction project on-time, on-budget, and to the satisfaction of all participants is remarkably simple.

Real property owners are ultimately responsible the construction sector’s low productivity.  It is owners that provide inaccurate and/or vague project requirements, create/support excessive numbers of change orders, fail to treat their service providers with respect, and lack the requisite ability to implement LEAN construction delivery methods.

 

Consider this:

Contractors are the construction experts. They simply need to be involved in the project early (from concept) thru hand-over/warranty period.   Contractors expertise must be leverage without excessive management and control, however, continuous support and monitoring must be present…”trust but measure”.

At the end of the day, both the Owner and the Contractor should have the same goals… completing a quality project on-time and on-budget.  Both should anticipate a reasonable profit, and a  potential long term relationship involving other projects.

Construction, like most other complex business relationships, is relationship-based. As such, all involved parties must be competent in their area(s) of expertise, have shared goals, and engage in full financial transparency.

job order contracting

Criteria for a Good, Mutually Beneficial Owner-Contract Relationship

  1. Open line of communication – Confidence is established through open, transparent communications.
  2. Collaboration – This must be both part of the culture of all parties as well as mandated in writing.
  3. LEAN Construction Delivery Methods – Job Order Contacting, JOC, Integrated Project Delivery, IPD ….   versus archaic, antagonistic, and unproductive design-bid-build, design-build, CM@R, etc.
  4.  Focus upon Outcomes – Metrics, key performance indicators, KPIs.
  5.  Leverage robust best management practices and business processes.
  6.  Share risk and reward.
  7.  Best value procurement versus lowest bidder.
  8.  On-demand service orientation.
  9.  Supporting technology – Technology is NOT the solution, but should support robust, proven LEAN processes.

  10. Involve all participants – technical/engineering, building users, procurement…