The Team is Fractured
The typical design and construction process is wasteful of money and natural resources. It is laced with CYA attitudes and burdened by adversarial players. In the labyrinthine contractual bindings that typify modern construction project delivery, the focus on client interests is often lost. Clients typically find themselves working with a team of rivals and receiving avoidable change orders and cost overruns. Result? Typically, only super-human effort by everyone on the team provides more than mediocre value.
Unverifiable Assertion #1
A collaborative project delivery process with an integrated Architectural/Engineering/Contracting (A/E/C) team can help save ten percent on construction cost for a +/- 500% return on investment and dramatically reduced environmental impact.
Optimizing Value and Quality Outcomes
CONTRACTS
Building owners and clients of A/E/C services can expect more from their A/E/C team by changing the contractual relationship of the parties so that everyone is motivated by the same profit pool. This is a leading edge trend called “Integrated Project Delivery.” Profit is shared commensurate with scope of work. So the contractors get the lion’s share. If total project costs are below budget, the owner shares savings as negotiated with the A/E/C team.
Primary risks stem from relatively untested legal precedent of the inter-party agreement. Contractual responsibilities are inter-dependent. These risks are mitigated by transparent communications, agreed upon protocols and shared decision making.
BALANCED CAPEX/OPEX LIFE CYCLE BUDGETING AND PROJECT GOALS
Paint the whole picture before an expensive A/E/C team is engaged. Drive effective design and construction decisions that support the required value proposition.
A/E/C TEAM ACQUISITION
Drive the bus with all the right people in the seats. Request qualifications and proposals with form of agreement, project goals and requirements clearly stated.
- Prime benefit: a winning team of partners rather than the typical wasteful team of rivals.
RESPECT THE AMOUNT OF WORK INVOLVED
Identify in-house project manager with extra time on their hands, or hire a Construction Manager to represent Owner interests through the design, documentation and construction process. Savvy building development experience is required for technical oversight, visionary thinking and financial approvals.
- Prime benefit: Owner team sticks to core business and the project gets expert, anticipatory representation focused on project goals and requirements.
IN BUSINESS THE BUILDING IS NOT THE POINT
Building projects are undertaken to provide value through improved functionality of facilities, to reduce your cost of business through energy savings and to improve productivity of staff. Legacy, organizational pride and brand identity are also universal drivers.
The process outlined here can guide a built result that is beautiful to look at, pleasant to experience and work in and more efficient to operate. It also leads to multiple benefits for the natural environment.
- Prime benefits
- Up to 17% higher productivity of your staff,
- Immediate and long-term reduction in cost of operation. ROI is dependent on decisions made, but returns range from 10% to infinity (no premium cost).
- Free press – it’s a story that journalists love to print.
These benefits pay off year after year. Studies of LEED certified projects show that bottom line benefits are ten times the incremental cost of going green.
