Best Value Job Order Contracting

Build the right team, collaborate with all participants and stakeholders from day one, incorporate LEAN construction processes. The consistent delivery of quality repair, renovation, and new construction projects isn’t difficult.

Build the right team, collaborate with all participants and stakeholders from day one and incorporate LEAN construction processes.

While each construction relative project has its uniqueness, assuring the consistent use of LEAN processes removes uncertainty and variation, and in the end virtually eliminates waste.

Simple fundamentals, consistently applied, can drive significant performance gains for real property owners and their service providers.

 Shared Risk/Reward. Appropriate risk assessment can only occur if risk/reward is shard by all participants. Sharing risk/reward, by default, increases information sharing and risk visibility. Inadequate or incomplete risk reviews, common in traditional construction delivery, are uncommon with LEAN construction delivery processes such as Integrated Construction Delivery, IPD (for major new construction), and Job Order Contracting, JOC, for repair, renovation, maintenance, sustainability, and minor new construction.

Contracting/Procurement Rigor. Senior leadership teams lacking adequate capability in the management and oversight of construction projects consistently fail to established and proven LEAN best value practices in order to drive top line maximum performance outcomes. Real property owner leadership bears the responsibility of monitoring and controlling BEST VALUE procurement processes. Performance failures of recent decades are the directly result of poor owner leadership and the lack of adoption of LEAN planning, procurement, and construction delivery methods.

Projects Delivery. The pervasive lack of rigor with respect to focus upon and consistent adherence to LEAN construction processes are workflows remains the AECOO sector norm (Architecture, Engineering, Construction, Owner, Operator.) Weak mutual understanding of project technical and cost scope, combined with traditional design-bid-build and lowest bidder processes have produced a legacy of economic and environmental waste. The selected construction delivery method is critical to the success of any repair, renovation, or construction projects and risk/reward must be shared among those participants best able to manage that risk.

Failure to adequately focus on project flows.  LEAN construction delivery method have fundamental, yet flexible workflows that aid in maximizing positive outcomes. They purposely enable local, on-site, in the field decision-making, coupled with global oversight. Well established LEAN best management practices can not be ignored or inconsistently practiced if they are part of a requisite and rigorous workflow.

Sample LEAN Job Order Contracting Workflow

Consistent delivery of quality repair, renovation, and new construction projects on-time, and on-budget, is available to any organization with…

Strong organizational leadership with requisite levels of competency. Receptive to criticism, alternative processes, and views, and focus upon mutually beneficial outcomes.

 Strong governance practices. Adoption of and continuous improvement to LEAN planning, procurement, and construction delivery practices.

Qualified leadership, receptive to constructive criticism and alternative views, is also key.

Davis Bacon Prevailing Wage Rates
LEAN Asset Management
Best Value LEAN Construction Planning, Procurement, and Project Delivery Framework

via https://4bt.us – LEAN Construction Delivery Tools and Services