The Value of BIM – Building Information Modeling – IPD – Integrated Project Delivery and JOC (Job Order Contracting)

The true value of BIM in NOT in 3D modeling, clash detection, or providing architects and AEC firms a with a better way to “sell” new projects/buildings.

The value of BIM is in INFORMATION and the associated aspects of collaboration and life-cycle building management / total cost of ownership.

BIM is NOT technology alone, but a business process that is embedded within and support by technology. Autodesk, Bentley, Archicad, et al can not and do not supply BIM. They supply basic components of BIM, the 3D visualization engine and an associated database architecture … (both hopefully based upon open standards or they will be of little value). While all three would argue the point, facts are facts. There is too much domain knowledge required for life-cycle management for a single technology vendor to cover “all the bases”.

It up to Owners, Contractors, AE’s, and the wide range of Consultants and Complementary Technology/Software Providers to deliver true value to BIM – space planning, capital planning, operations and maintenance, costing/cost engineering, standardized taxonomies, metrics, benchmarks, decision support, collaborative project delivery processes, etc. …. components that enable a complete BIM system.

Transparent standardized information, collaboration and technology may someday enable BIM to deliver integrated construction / renovation / repair / maintenance / sustainability project delivery on a life-cycle basis.

In the interim, both JOC (job order contracting) and IPD (integrated project delivery) deliver today relative to exponentially more efficient and transparent construction project delivery methods and processes. Both are superior to design-bid-build, design-build, etc. etc.

Both JOC and IPD demand collaboration and both are performance based. JOC drives the project from concept/scoping through bidding, construction, warranty, and close-out.

IPD currently focuses upon collaboration from project conception through start-up, however, can be easily extended.

The limited view of IPD. The contractual IPD based upon various standardized IPD contracts ( IFoA – integrated form of agreement, etc). While the more important view of IPD is extension of the collaborative processes throughout the project and associated use of technology.

JOC already provides IPD and associated technology for renovation, repair, maintenance, and sustainability projects. It is a proven process, developed by the U.S. military years ago, however, currently, vastly improved through the use of technology such as that provided by e4Clicks (www.e4Clicks.com) and associated reference cost information (RSMeans) or other price “guides”.

JOC ( also known as SABER in the Air Force ) is available today for renovation, repair, and sustainability projects and is proven to improve collaboration and quality as well as reduce costs. Paperwork costs, which average 2-3% of total project costs are mitigated using JOC cost estimating and project management software (such as e4Clicks Project Estimator), while project timelines can be reduced dramatically, providing exponential value.

While the importance of BIM can not be overlooked as it will hopefully reshape the AEC industry, BIM is currently limited to 3D CAD and modest functionality, requiring the integration of third party software for CAFM, CMMS, CPMS, and JOC to reach it’s potential.

What Right with JOC and IPD is What’s wrong with traditional Contruction

JOC and IPD share many characteristics and benefits.  JOC / Job Order Contracting deals with facility repair, renovation, and sustainability projects, while IPD targets new construction.  IPD unfortunately stops once the building is designed and built, however, could easily be extended.

Both approaches succeed where tradition design/build, design/bid/build typically fail.  Both focus upon collaboration and performance.

http://www.4Clicks.com – Leading JOC Technology Provider

JOC – The most efficient project delivery method for repair, renovation, sustainability.

Owners benefit from the core values of JOC; the desire of the contractor to work hand-in¬hand with them to build a long term, mutually rewarding relationship; one that eliminates confrontation and negativity, to achieve a common goal— Completing each delivery order on-time and within the pre-determined budget parameters.

A successful JOC program requires dedication and teamwork from both the owner and the contractor. Working together to design and develop a scope of work, the contractor is able to fully understand the needs and desired results of the owner and the owner’s customer. Through joint scoping the contractor is able to ask questions, provide insight and obtain sug¬gestions from subcontractors as to the most efficient and cost effective method to complete the project. This partnering enables both the owner and contractor to fully understand the desired results, and greatly reduce if not eliminates the “change order” philosophy.

The essence of a JOC RFP doesn’t define the type of work or the value of each project to be completed prior to awarding, but typically establishes that the owner desires to use the contract to complete various multi-trade projects over the term of the contract. The JOC contractor is bidding on the potential type of work and projected value over the term of the contract. Depending on the owner, the RFP may establish minimum and maximum project values or allow for the contractor to decline individual delivery orders that may be less than or greater than a certain threshold. Yearly delivery order volume can be set for the term or the contract value can be open ended.  – Vince Duobinnis

IPD – Integrated Project Design/Delivery

Integrated Project Delivery is built on collaboration, which in turn is built on trust.  Effectively structured, trust-based collaboration encourages parties to focus on project outcomes rather than their individual goals.  Without trust-based collaboration, IPD will falter and participants will remain in the adverse and antagonistic relationships that plague the construction industry today.  IPD promises better outcomes, but outcomes will not change unless the people responsible for delivering those outcomes change.  Thus, achieving the benefits of IPD requires that all project participants embrace the following Principles of Integrated Project Delivery.

1.   Mutual Respect and Trust.

In an integrated project, owner, designer, consultants, constructor, subcontractors and suppliers understand the value of collaboration and are committed to working as a team in the best interests of the project.

2.   Mutual Benefit and Reward.

All participants or team members benefit from IPD. Because the integrated process requires early involvement by more parties, IPD compensation structures recognize and reward early involvement. Compensation is based on the value added by an organization and it rewards “what’s best for project” behavior, such as by providing incentives tied to achieving project goals. Integrated projects use innovative business models to support collaboration and efficiency.

3.   Collaborative Innovation and Decision Making.

Innovation is stimulated when ideas are freely exchanged among all participants. In an integrated project, ideas are judged on their merits, not on the author’s role or status.  Key decisions are evaluated by the project team and, to the greatest practical extent, made unanimously.

4.   Early Involvement of Key Participants.

In an integrated project, the key participants are involved from the earliest practical moment. Decision making is improved by the influx of knowledge and expertise of all key participants.  Their combined knowledge and expertise is most powerful during the project’s early stages where informed decisions have the greatest effect.

5.   Early Goal Definition.

Project goals are developed early, agreed upon and respected by all participants. Insight from each participant is valued in a culture that promotes and drives innovation and outstanding performance, holding project outcomes at the center within a framework of individual participant objectives and values.

6.   Intensified Planning.

The IPD approach recognizes that increased effort in planning results in increased efficiency and savings during execution.  Thus the thrust of the integrated approach is not to reduce design effort, but rather to greatly improve the design results, streamlining and shortening the much more expensive construction effort.

7.   Open Communication.

IPD’s focus on team performance is based on open, direct, and honest communication among all participants. Responsibilities are clearly defined in a no-blame culture leading to identification and resolution of problems, not determination of liability.  Disputes are recognized as they occur and promptly resolved.

8.   Appropriate Technology.

Integrated projects often rely on cutting edge technologies. Technologies are specified at project initiation to maximize functionality, generality and interoperability. Open and interoperable data exchanges based on disciplined and transparent data structures are essential to support IPD. Because open standards best enable communications among all participants, technology that is compliant with open standards is used whenever available.

9.   Organization and Leadership.

The project team is an organization in its own right and all team members are committed to the project team’s goals and values.  Leadership is taken by the team member most capable with regard to specific work and services.  Often, design professionals and contractors lead in areas of their traditional competence with support from the entire team, however specific roles are necessarily determined on a project-by-project basis.  Roles are clearly defined, without creating artificial barriers that chill open communication and risk taking.  (http://www.ipd-ca.net)