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STOP using ACFs – The inherent flaws of Area Cost Factors

Job Order Contracting

STOP using ACFs – The inherent flaws of Area Cost Factors There are multiple false assumptions associated with Military Construction Budgeting and Area Cost Factors. The use of area cost factors (ACFs) for capital planning and budgeting repair, renovation (sustainment) and new construction factors remains a flawed approach.

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Area Cost Factors – Not a viable for Federal Construction Cost Estimating?

Job Order Contracting

They are used in the development of construction cost budgets and project estimates. The use of area cost factors (ACFs) for capital planning budgeting or estimates for construction repair, renovation, and new build projects remains a fundamentally flawed approach. The result is the misuse of billions of dollars. – GAO.

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Construction Cost Knowledge Management

Job Order Contracting

Construction cost knowledge management is a component of integrated LEAN construction planning, procurement, and project delivery. They have a false sense of security, believing that contractor or subcontractor quotes, or historical information, or square foot level cost models provide defensible cost visibility.

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Characteristics of Strategic Collaboration and Efficient Construction Project Delivery

Job Order Contracting

Integrated planning, procurement, and project delivery processes and team. The benefits of strategic collaboration vs. traditional construction planning, procurement, and project delivery are well documented and partially listed below (Chan et al., Projects completed at or under budgeted cost. cooperative procurement procedures.

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Job Order Contracting – Lean Construction History

Job Order Contracting

It was designed to shorten procurement and overall project delivery times while also maintaining quality. Department of Defense: West Point Academy in 1985, and United States Air Force bases in 1986. In it’s truest form, JOC procurement should be best upon BEST VALUE.

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All Renovation, Repair, Sustainability Construction projects should involve Job Order Contracting – JOC

Building Information Management

JOC reduces unnecessary levels of engineering, design, and contract procurement time along with construction project procurement costs by awarding long-term contracts for a wide variety of renovation, repair and construction projects. Shorter procurement and short overall project timelines. JOC can deliver: 1.

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Project Labor Agreements (PLAs): What Contractors Need to Know

Levelset

Proponents of PLAs say they ensure decent wages for workers, a quality workforce, and timely completion of projects while staying on budget. Agree or disagree, with the passage of the 2021 federal infrastructure bill , many large federal projects will be coming to bid — and many will be subject to the PLA requirement.