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

RSMEANS Free Educational Webinar – JOB ORDER CONTRACTING JOC , THE STIMULUS (& SUSTAINABILITY) READY DELIVERY METHOD

Register

RS Means JOC Educational Seminar

Facility owners know that changes in occupancy, project requests and building lifecycle and infrastructure needs sometimes arrive quite suddenly with tight completion timelines—-spurring the need for quick and professional construction services to accommodate end user requirements.

Potential solution:  Already have a JOC program in place!

Job Order Contracting (JOC) is a construction project delivery method used by facility owners to access quick and professional contractor performance without compromising pricing predictability. It works
especially well for facility owners who might have high volume and/or backlog of smaller projects (mostly under $1M each), such as those found in educational, medical, municipal and federal facilities.

JOC involves indefinite delivery/indefinite quantity (IDIQ) services—-which is basically an on-going construction services contract for projects yet to be determined by the owner. The method allows for mutually beneficial long-term relationships between facility owners and JOC contractors for construction services.

Therefore, a unique partnering approach to JOC contract management should be considered. This presentation will address what partnering actions owners can take to promote the successful use of JOC at their facilities.

In addition, this presentation will provide an overview of typical JOC contractor- submitted project proposal content as well as basic tips for the owner regarding JOC proposal review.

SPEAKERS
Mark E. Bailey
President and CEO, Centennial Contractors Enterprises, Inc.
Mark Bailey provides vision and direction to employees in over 40 offices across the country, focusing on Job Order Contracting and IDIQ contracts. Mark gained a wealth of field and office experience with a diverse 24 years of construction industry experience, ranging from superintendent and estimator to heavy civil contractor and project manager. He has authored an article about Job Order Contracting for ENR and is a member of the National and Virginia Chapter of Associated Builders and Contractors, Society of American Military Engineers, Design-Build Institute of America and Center for Job Order Contracting Excellence.
Allen L. Henderson
Consultant, Author, Former Facility Manager, Texas State University
Allen Henderson has 35 years of construction industry experience, including over 25 years at Texas State University-San Marcos. A long-time proponent of the JOC method of construction project delivery, Allen is author of Job Order Contracting—Expediting Construction Project Delivery, published by RSMeans, and has given numerous presentations on the subject. He is currently a board member for the Center for Job Order Contracting Excellence.
John R. Murray
Director, State of Missouri Division of Facilities Management
John Murray is the Missouri State Director of Contract Services for the Division of Facilities Management, Design and Construction. John additionally serves as Vice Chairman of the Planning & Zoning Committee for the Village of Wardsville, Mo and as AIA-CEC-MO Liaison Committee member.
MODERATOR
Robert F. Gair
Principal, RSMeans Business Solutions
Robert F. Gair has over 20 years of construction industry experience in cost modeling and job order contracting and is currently responsible for the fastest growing sector of RSMeans businesses. A business analyst with extensive computer technology experience, Bob provides property management solutions to federal agencies such as the Department of Energy, Department of Labor, and State Department. He was also the 2009 Industry Chair for the Center for Job Order Contracting Excellence.