LEAN Job Order Contracting – Optimize Facility Renovation, Repair, & Maintenance

LEAN Job Order Contracting – Optimize Facility Renovation, Repair, & Maintenance

Optimizing facility and infrastructure renovation, repair, and maintenance requires alignment of organizational strategy and vision both internally and with service providers.

2015 optimized facility renovation and repair

Internally, owners must be skilled at all aspects of managing the life-cycle of physical structures from concept through warranty, with particular emphasis upon LEAN, collaborative best management practices.

Improving operational efficiency and maximizing capital reinvestment can only be achieved if owners demonstrate leadership with respect to developing internal teams and trusted business partners such as architects, engineers, and contractors.

Job Order Contracting is a critical tool with respect to delivering more projects on-time and on-budget versus traditional design-bid-build.  High levels of quality and overall satisfaction can also be achieve via owner implemented and managed job order contracts.

Job Order Contracting is a LEAN construction delivery method that integrates mandatory collaboration of all stakeholders, shared risk/reward, common terms, definitions, and data architectures, transparent pricing via a unit price book – UPB,  global oversight and local implementation, on-demand services, and best value procurement.

Owners and contractors continuously evaluate current overall status, prioritized projects, performance versus budget, quality, and time,  and methods for improvement.

Unlike typical AEC culture, all parties are contribute equally and sacrifice short-term gains for better long-term performance.  Vision and intent of the partnership is shared and goals are clearly defined.  While there is a high degree of trust, all financial, project, and technical information is fully transparent and documented.  Parties are free to deliver in their area of expertise without excessive management and control.  While education and training is both ongoing and mandatory.     All of these factors are principles of LEAN construction management and best practice JOB ORDER CONTRACTING.  They all all involved parties to develop with and for each other with the result being better ways of doing things and mutual, longer term rewards.


standardized cost data

job order contracting


job order contract

Facility Operations and Maintenance (O&M), and Capital Renewal

Facility Operations and Maintenance (O&M), and Capital Renewal

Best Management Practices


Policies and procedures based upon BEST VALUE and OUTCOMES are critical to pro-active and efficient facility management.

Real property owners must team with building users, architects, engineers, and contractors to delivery desired outcomes on-time and on-budget.  Focus upon best value, requisite outcomes, and life-cycle costing, full cost transparency, shared knowledge, combine to drive lower total cost of ownership.

job order contracting

While globalization and centralized oversight will continue, knowledge, capability, and consistent execution at a local level is equally important.  In fact, competence development at all levels internal and external to the organization is becoming necessary to meet increasing economic and environmental pressures and requirements.

Timely and accurate information driving analytics support fact-based decision-making, proactive planning, and technical maintenance excellence.

Transforming from low bidder to procuring strategic long term, value-added partnerships lowers risk, delivers optimal financial returns.

job order contracting

Facility Management Checklist

  • Develop competencies across all knowledge domains that support the organization, suppliers, and service providers
  • Create competitive advantage and best value through developing long-term partnerships
  • Engage in best value procurement
  • Segment “Fixed” and “Variable Costs”
  • Create a Capital Renewal Plan
    • Capital Renewal – Major repairs and cyclical replacement of building systems/components versus established building life-time (50 years, 100 years)
    • Sustainment Model (planned, preventive, and emergency maintenance, plus capital renewal) and Restoration/Modernization Models
  • Evaluate Current and Plan Status of Maintenance and Operations Program
  • Document cost savings via estimated return on investment (ROI) what-if analysis versus various timeframes
  • Review procurement policies
  • Review construction delivery methods
  • Ongoing education and training
  • Continuous monitoring inclusive of key leading and lagging performance indicators
  • Maintenance (General, Routine, Preventive)
    • Review operations affecting maintenance
    • Procedures
  • Utilities
    • Review operational procedures affecting utilities
    • Usage patterns/peak usage
    • Monitoring (meters, motors, etc.)
    • Life-cycle repair versus replace analysis
    • Review major systems (heat/light resistant glazing, insulation, automatic shut-offs for all fixtures, high efficiency heating/cooling, daylight lighting controls, intelligent building controls.
  • Capital Renewal
    • Regular condition audits
    • Prioritize versus organization mission
    • Multi-year scenario analysis
    • Repair versus replace analysis





Green BIM Report 2010While the BIM vendors continue to focus upon Architects as the primary target market, it’s clear that the true value of BIM is in life-cycle facility management, or the owner market.

Driving market factors will be education and knowledge as to how BIM delivers better facility management capabilities, higher ROI, and the comprehensive applicatin of BIM to operations, maintenance, renovation, and repair.

With existing buildings the major market, and the associated drive toward sustainability, BIM can play a significant role.  Will it?

Construction delivery methods, particulary Job Order Contracting / JOC will be equally important for sustainability,  repair, and renovation, as will Integrated Project Delivery / IPD for new construction.     These processes will and their supporting technologies will improve transparency, collaboration, quality, and overall project timelines.

What’s the Value of BIM ?

BIM for Facility Management (BIM for FM) is the data and business processes that support building owner’s facility life-cycle decisions.

Owner, contractor, and A/E processes must be available to support cradle-to-grave decision support relative to the built environment.   Without these processes, BIMs is little more than 3D CAD.

Owners alone can drive BIM and it’s associated processes  to define the requisite data and internal processes to support specific and ever changing business and functional needs associated with the built environment.

Most owners do not have processes, systems, or the technology framework to supports this  need.  This, and the basic fabric of the AEC industry must change.

Building Operations and Maintenance – Energy & Carbon Reduction

(Source: NYC Task Force)
The most immediate and promising route to reducing building fuel, electricity use and carbon emissions lies in more efficient operation of existing buildings.
Most buildings consume more energy than necessary, often substantially more. The range in performance is enormous:  The
least efficient existing buildings use three to five times more energy
than the most efficient buildings. Even among new buildings, marked
discrepancies exist between design expectations and actual energy use.
What’s more, existing buildings are here to stay: It’s estimated that 85
percent of the buildings that will constitute New York City’s real estate in 2030 are already standing today.
Much of the variation in energy use among buildings and between an individual building’s design and actual usage is due to differences in operations. This includes both decisions on when to replace aging capital equipment and day-to-day operating schedules and maintenance choices.
Mismatches between the requirements of efficient operation
and the resources made available are frequent. These occur because
buildings are large, complex entities that require constant control
and correction.
Building operations are often neglected, and maintenance is frequently deferred, steps that can lead to excessive energy use and high operations expenses.
The reasons are many. For one, building residents and management alike tend to judge a building’s performance by its level of comfort and reliability, rather than its energy efficiency. Also, energy and water costs are modest when compared with such expense as mortgages, salaries and taxes; as a result, these costs are often paid
less attention. In many commercial buildings, there are split incentives: If leases include energy expenses as a mark-up on the utility’s bill, then the owner has little reason to promote efficient operations in the tenants’ spaces. Finally, New York City’s elaborate codes and laws governing buildings have overwhelmingly focused on assuring health and safety, rather than energy efficiency.
That said, there are some initiatives aimed at improving operations
and maintenance in New York City buildings. For example, the U.S.
Green Building Council’s LEED for Existing Buildings: Operations and
Maintenance program provides nationally recognized certification that a building is being run efficiently.  So does the U.S. Energy Star program for buildings.
On the training front, local labor unions have established a
wide variety of programs, including the Service Employees International Union’s Local 32BJ’s Thomas Shortman Training Program and the associated 1000 Green Supers initiative. Other training programs include Local 94 Operating Engineers’ suite of training courses, and the International Union of Operating Engineers Local 30’s Apprentice Training and Skill Improvement Training courses. These have all provided valuable improvements in the capabilities of New York City’s building operators.
The proposals in this section would increase awareness of energy use
by tenants and building operators. If approved, meters will be required to measure electricity use by major systems and tenant spaces, and automated energy tracking will be required for new, large buildings.
Ready access to this information would increase the attention placed
on energy efficiency and speed the detection of leaks and other
malfunctions. One proposal would establish reasonable limits on heating and cooling temperatures, hopefully putting an end to the need to wear sweaters inside of freezing movie theatres during the dog days of summer.
Finally, the proposals aim to improve building operations and maintenance through the training of building operators, regular
inspections, and periodic tune-ups of building systems.
GREEN Awareness = Efficiency
New York State studies have shown that metering tenant electrical use
in a multi-famliy building can reduce apartment electricity consumption by approximately 17%-27%.
EO 1
Re-tune Large Buildings
Every Seven Years
Issue: Even the best-designed building systems drift away
from optimal performance over time, due to broken
parts, changes in use, and the accumulation of small
changes in procedures and equipment.
Recommendation: Every seven years, buildings larger than 50,000
square feet must be retro-commissioned, retuning the major building systems to ensure they all work together correctly. A similar proposal was incorporated into the Greener, Greater Buildings Plan, which became law prior to the issuance of this report.
EO 2
Measure Electricity Use in Tenant Spaces
Issue: Because electricity is often unmetered in
commercial tenant spaces, tenants are unaware of
the energy they consume. This, in turn, can lead to
excessive use and waste.
Recommendation: All new commercial tenant spaces of 10,000 square feet or larger shall be metered for electricity. A
similar proposal was incorporated into the Greener,
Greater Buildings Plan, which became law prior to
the issuance of this report.
EO 3
Train Building Operators in Energy Efficiency
Issue: Current requirements for building operators do
not include training in efficient building operations,
energy efficiency, or monitoring of overall building
Recommendation: In buildings larger than 50,000 square feet, require operators to be trained and certified for energyefficient
operations. Fund a study to establish the
appropriate training and certification requirements.

The Business of BIM

Source: BIMS – Business of BIM – Smith,Deke-2009

  • Facilities consume 41% of our energy
  • 71.8% of total U.S. elec. consumption
  • Facilities contribute 40% of the emissions
  • Facilities contribute 40% of land fills
  • 40% of global raw materials are consumed by buildings – 75% by all facilities
  • U.S. is no longer the worlds largest consumer…but we did not slow down

The Desired Outcome of  BIM

1. Collect data once and use from inception onward and allow information to flow

  • Authoritative source collects information and records metadata
  • Information assurance is in place to protect intellectual property
  • Multi faceted analysis is supported by software
  • Facility management uses information for operations and sustainment
  • All facets of the lifecycle are supported
2. Build facilities electronically and completely before we build them
physically. “Build a model then build the model”
  • Reduces risk and therefore litigation
  • Reduces RFI’s and change orders
  • Allows more activities to occur in parallel thus speeding delivery
  • Provides better estimates
  • Delivers true as-built
Although architects are using BIM information is still not flowing because we are implementing BIM using the same “traditional” business processes.
Government involvement is key ;
•GSA – Leaders in innovation in BIM
•USCG – Implemented BIM to support mission and
•USACE – $50B in projects slated for BIM – seeking open
standards BIM solution
•VA – Seeking open BIM standards for hospital design
•Smithsonian Institute – Seeking open standards solution
•Wisconsin – requiring open standards based BIM
•Texas – requiring a proprietary BIM solution
A Building Information Model (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 life-cycle from inception onward.
– United States National BIM Standard V1, P1 Jan 2008