Efficient construction contract management is actually quite simple.
All that is required is effective leadership capable of deploying proven program-based approaches that focus upon mutually beneficial outcomes.
Integrated LEAN construction planning, procurement, and project delivery can consistently assure quality repair, renovation, repair, maintenance and new construction outcomes on-time and on-budget. All the support tools and services are readily available(see example). Nonetheless, less than 5% of real property owners implement these proven solutions, and even fewer do so fully and/or properly. The primary barrier is lack of owner leadership with respect to stewardship of the built environment. It’s the elephant in the room that few people have the courage to note. The rampant waste associated with managing the built environment in the public sector is even more pronounced due the the virtual lack of accountability. For example, to this day, there is not a single federal department or agency that deploys a effective facilities repair, renovation, or new build program on an organization-wide basis that provide verifiable financial visibility and transparency. This truth exists despite decades of independent audits and research bring the issue to light.
The path to efficient life-cycle management of the built environment and the associated planning, procurement, and project delivery of the associate numerous ongoing needs involves…
- Owner leadership and competency in both asset life-cycle total costs of ownership management and integrated LEAN planning, procurement, and project delivery.
- Written multi-party collaborative contracts and operations manuals/execution guides that establish common, mutually beneficial best value outcomes, and clear communications, inclusive of a common data environment (i.e. locally researched detailed unit price construction cost data in lieu of lump sum quotations, national average cost data, construction cost indexes, historical information, or area cost factors).
- A culture of empowerment involving global oversight with empowerment of local decision-making by those experienced professionals doing the work.
- Enabling and supporting technology. Technologies sole purpose is to enable consistent and lower cost deployment processes as well as improve efficiency and provide a means of monitoring.
While each repair, renovation, maintenance, and new build project has its own requirements and characteristics, as does each associated organization, building these characteristics into normal operations allows teams to better deal with the myriad of ever present issues and variances.