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How satisfied, really satisfied, are Owners? May 26, 2016 Bevan Mace, Balfour Beatty Steve Jones, Dodge Data & Analytics

are Owners? - Lean Construction Institute · 2016/5/26  · 5 Sat·is·fac·tion Fulfillment of one’s wishes, expectations, or needs, or the pleasure derived from this. How satisfied

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Page 1: are Owners? - Lean Construction Institute · 2016/5/26  · 5 Sat·is·fac·tion Fulfillment of one’s wishes, expectations, or needs, or the pleasure derived from this. How satisfied

How satisfied

really satisfied

are Owners

May 26 2016

Bevan Mace Balfour Beatty

Steve Jones Dodge Data amp Analytics

2

Objectives for Today

1 Understand research purpose

2 Share preliminary findings

3 Call to action ndash PARTICIPATE

3

Why Research Objectives

1 Create baseline of owner satisfaction

project performance

2 Explore the influence of LCI framework

on project performance

4

Industry Effort Partnership

bull CURT

bull COAA

bull AGC ndash Private Industry Council

bull DBIA

bull Dodge Owner Group

bull e-Builder

5

Satisfaction

Fulfillment of onersquos wishes expectations or needs or the pleasure derived from this

How satisfied are you with the delivery of

capital projects

ndash Always

ndash Frequently

ndash Sometimes

ndash Infrequently Never

6

Owner Satisfaction analyticsstoreconstructioncom

7

Industry Efficiency

Most who never

heard of Lean think

the industry is Efficient

analyticsstoreconstructioncom

8

Methodology

1 Identify metrics to measure satisfaction

project performance

2 Identify factors to understand project

environment

3 Explore variance of ldquoBestrdquo vs ldquoTypicalrdquo

9

Performance Metrics

bull Cost amp Schedule (Quantitative) ndash Actual vs Approval of Capital Project

ndash Actual vs Start of Construction

bull Quality (Qualitative) ndash Features incorporated in design

ndash Craftsmanship during construction

ndash Performance during occupancy

bull Safety (Qualitative) ndash Safety during construction

ndash Safety during maintenance

10

Framework Assessment

bull Organizational ndash Team chemistry alignment

ndash Relatedness

ndash Decision making

bull Commercial ndash Time of engagement

ndash Procurement selection method

ndash Delivery method amp contract type

bull Operating System ndash Traditional methods

ndash Lean methods

11

Early Engagement

How do you define early engagement

Key stakeholders are engagedhellip

ndash During construction documentation

ndash During design development

ndash During schematic design

ndash Before or during conceptualization

12

Performance Owner Value

Adherence to

Project Schedule

most highly valued

How Owners Define Value Ranking Relative Importance of Performance Metrics

13

Performance CostSchedule

Most Typical

Projects complete

behind schedule

over budget

Cost is improved

more than schedule

on Best Performing

Projects

Variance of Estimated Schedule and Cost

at Construction Start vs Completion

14

Performance CostSchedule

Most Typical

Projects complete

behind schedule

over budget

Cost is improved

more than schedule

on Best Performing

Projects

Variance of Estimated Schedule and Cost

at Construction Start vs Completion

15

Performance Schedule

28 of best projects finish early vs only 9 of typical

Amount of Variance of lsquoOriginal Schedule When Budget Allocatedrsquo vs lsquoFinal Schedulersquo

Complete Behind Original Schedule Complete Ahead of Original Schedule

Best Performing Projects

28 complete ahead of

schedule

(vs 9 of typical)

Typical Projects

28 complete more than

11 behind schedule

(vs 9 of best)

16

Performance Cost

63 of best projects under budget vs only 9 of typical

Amount of Variance of lsquoAllocated Capital Costrsquo vs lsquoFinal Costrsquo

Best Performing

Projects

28 complete

ahead of schedule

Typical Projects

56 complete

behind schedule

Complete Over Allocated Capital Cost Complete Under Allocated Capital Cost

Typical Projects

Half complete over original

allocated capital budget

(vs 15 of best)

Best Performing Projects

63 complete under original

allocated capital budget

(vs 9 of typical)

17

Performance QualitySafety

Typical Projectsrsquo

quality and safety

performance is

already better than

cost and schedule

Best Projects are

13-20 percentage

points better but

overall impact is not

as dramatic as cost

Positive and Negative Ratings

for Quality and Safety

18

Organizational Aspects

Owners identify

Project Team as

single most

important

contributing factor

to performance

Single Most Important Factor That

Contributes to Project Performance

19

Organizational Aspects

Early engagement is key aspect of best projects

Timing of Key Stakeholder Engagement (TypicalBest)

Best Performing

Projects 75 engage key

stakeholders before

Schematic Design

Typical Projects 56 donrsquot engage key

stakeholders until after

Schematic Design

20

Organizational Aspects

Team dynamics gaps between best and typical

Percentage Reporting the Highest (44) Team Dynamics Ratings (TypicalBest)

21

Commercial Aspects

Best Value is most

frequent selection

process on best

performing projects

Selection of Key Stakeholder Engagement

22

Commercial Aspects

IPD is most frequent

delivery method on

best performing

projects Not used

on any typical

projects

Top Delivery Methods on

Typical and Best Projects

23

Commercial Aspects

GMP is most

frequent contract type

on best performing

projects

Cost Reimbursable

with Target and

Shared RiskReward

is only used on best

performing projects

Top Contracting Types on

Typical and Best Projects

( with or without shared savings)

24

Operating System Aspects

527 Methods Focused on Schedule Performance

25

Operating System Aspects

527 Methods Focused on CostBudget Performance

26

Operating System Aspects

Top 527 Methods Focused on Team Dynamics

27

Operating System Aspects

Other 6 Methods Focused on Team Dynamics

28

Operating System Aspects

1027 biggest gaps between typical and best projects

29

Most Impactful on Performance

Timing Engage key stakeholders as early as possible

(prior to schematic design)

Team selection Best Value

Form of agreement IPD

Contract type compensation method for key

stakeholders that are contracted to the owner

Guaranteed Maximum Price - or - Cost Reimbursable

with Target and Shared Risk Reward

( with or without shared savings)

30

Most Impactful on Performance

Use (at least) these six highly-rated project team

management and operational methods

ndash Co-location Big Room

ndash Target Value Design

ndash 3D BIM Coordination

ndash ConceptualContinuous Estimating

ndash Visual Management

ndash Last Planner System reg

31

Takeaways

1 Organizational transformations

enable project transformations

2 Earlier engagement requires

different operating skills

3 Project operating system

informs commercial (contract)

32

Impact

What impact do you think lean practices have

on satisfaction

ndash Significant

ndash Moderate

ndash Some

ndash None

ndash Unable to determine

33

Whatrsquos next

34

Goal Over 150 responses

35

Minimum Requirements

Respondent Profile

bull Must be an Owner

bull Knowledgeable about

construction projects at

their organization

bull In last 3 years completed

more than 5 capital

projects

bull Total capital expenditures

more than $10M

Best amp Typical Projects

bull Construction cost of

$10M or more

bull New Construction or

Major Renovation

bull Completed at least one

year but no more than

five years ago

bull In North America

36

Recruiting Owners

bull Survey Link

ndash tinyurlcomLeanConstruction2

bull Call for Participation

ndash Quick overview to be shared with owners

bull Talking Points

ndash For your use in advance of client interactions to prepare you to addresses

key issues and potential questions (eg benefits confidentiality of data)

bull Offline version of Survey

ndash To share with owners to collect project information in advance of taking the

survey

Bevan Mace ndash bmacebalfourbeattyuscom

Steve Jones ndash stevejonesconstructioncom

Page 2: are Owners? - Lean Construction Institute · 2016/5/26  · 5 Sat·is·fac·tion Fulfillment of one’s wishes, expectations, or needs, or the pleasure derived from this. How satisfied

2

Objectives for Today

1 Understand research purpose

2 Share preliminary findings

3 Call to action ndash PARTICIPATE

3

Why Research Objectives

1 Create baseline of owner satisfaction

project performance

2 Explore the influence of LCI framework

on project performance

4

Industry Effort Partnership

bull CURT

bull COAA

bull AGC ndash Private Industry Council

bull DBIA

bull Dodge Owner Group

bull e-Builder

5

Satisfaction

Fulfillment of onersquos wishes expectations or needs or the pleasure derived from this

How satisfied are you with the delivery of

capital projects

ndash Always

ndash Frequently

ndash Sometimes

ndash Infrequently Never

6

Owner Satisfaction analyticsstoreconstructioncom

7

Industry Efficiency

Most who never

heard of Lean think

the industry is Efficient

analyticsstoreconstructioncom

8

Methodology

1 Identify metrics to measure satisfaction

project performance

2 Identify factors to understand project

environment

3 Explore variance of ldquoBestrdquo vs ldquoTypicalrdquo

9

Performance Metrics

bull Cost amp Schedule (Quantitative) ndash Actual vs Approval of Capital Project

ndash Actual vs Start of Construction

bull Quality (Qualitative) ndash Features incorporated in design

ndash Craftsmanship during construction

ndash Performance during occupancy

bull Safety (Qualitative) ndash Safety during construction

ndash Safety during maintenance

10

Framework Assessment

bull Organizational ndash Team chemistry alignment

ndash Relatedness

ndash Decision making

bull Commercial ndash Time of engagement

ndash Procurement selection method

ndash Delivery method amp contract type

bull Operating System ndash Traditional methods

ndash Lean methods

11

Early Engagement

How do you define early engagement

Key stakeholders are engagedhellip

ndash During construction documentation

ndash During design development

ndash During schematic design

ndash Before or during conceptualization

12

Performance Owner Value

Adherence to

Project Schedule

most highly valued

How Owners Define Value Ranking Relative Importance of Performance Metrics

13

Performance CostSchedule

Most Typical

Projects complete

behind schedule

over budget

Cost is improved

more than schedule

on Best Performing

Projects

Variance of Estimated Schedule and Cost

at Construction Start vs Completion

14

Performance CostSchedule

Most Typical

Projects complete

behind schedule

over budget

Cost is improved

more than schedule

on Best Performing

Projects

Variance of Estimated Schedule and Cost

at Construction Start vs Completion

15

Performance Schedule

28 of best projects finish early vs only 9 of typical

Amount of Variance of lsquoOriginal Schedule When Budget Allocatedrsquo vs lsquoFinal Schedulersquo

Complete Behind Original Schedule Complete Ahead of Original Schedule

Best Performing Projects

28 complete ahead of

schedule

(vs 9 of typical)

Typical Projects

28 complete more than

11 behind schedule

(vs 9 of best)

16

Performance Cost

63 of best projects under budget vs only 9 of typical

Amount of Variance of lsquoAllocated Capital Costrsquo vs lsquoFinal Costrsquo

Best Performing

Projects

28 complete

ahead of schedule

Typical Projects

56 complete

behind schedule

Complete Over Allocated Capital Cost Complete Under Allocated Capital Cost

Typical Projects

Half complete over original

allocated capital budget

(vs 15 of best)

Best Performing Projects

63 complete under original

allocated capital budget

(vs 9 of typical)

17

Performance QualitySafety

Typical Projectsrsquo

quality and safety

performance is

already better than

cost and schedule

Best Projects are

13-20 percentage

points better but

overall impact is not

as dramatic as cost

Positive and Negative Ratings

for Quality and Safety

18

Organizational Aspects

Owners identify

Project Team as

single most

important

contributing factor

to performance

Single Most Important Factor That

Contributes to Project Performance

19

Organizational Aspects

Early engagement is key aspect of best projects

Timing of Key Stakeholder Engagement (TypicalBest)

Best Performing

Projects 75 engage key

stakeholders before

Schematic Design

Typical Projects 56 donrsquot engage key

stakeholders until after

Schematic Design

20

Organizational Aspects

Team dynamics gaps between best and typical

Percentage Reporting the Highest (44) Team Dynamics Ratings (TypicalBest)

21

Commercial Aspects

Best Value is most

frequent selection

process on best

performing projects

Selection of Key Stakeholder Engagement

22

Commercial Aspects

IPD is most frequent

delivery method on

best performing

projects Not used

on any typical

projects

Top Delivery Methods on

Typical and Best Projects

23

Commercial Aspects

GMP is most

frequent contract type

on best performing

projects

Cost Reimbursable

with Target and

Shared RiskReward

is only used on best

performing projects

Top Contracting Types on

Typical and Best Projects

( with or without shared savings)

24

Operating System Aspects

527 Methods Focused on Schedule Performance

25

Operating System Aspects

527 Methods Focused on CostBudget Performance

26

Operating System Aspects

Top 527 Methods Focused on Team Dynamics

27

Operating System Aspects

Other 6 Methods Focused on Team Dynamics

28

Operating System Aspects

1027 biggest gaps between typical and best projects

29

Most Impactful on Performance

Timing Engage key stakeholders as early as possible

(prior to schematic design)

Team selection Best Value

Form of agreement IPD

Contract type compensation method for key

stakeholders that are contracted to the owner

Guaranteed Maximum Price - or - Cost Reimbursable

with Target and Shared Risk Reward

( with or without shared savings)

30

Most Impactful on Performance

Use (at least) these six highly-rated project team

management and operational methods

ndash Co-location Big Room

ndash Target Value Design

ndash 3D BIM Coordination

ndash ConceptualContinuous Estimating

ndash Visual Management

ndash Last Planner System reg

31

Takeaways

1 Organizational transformations

enable project transformations

2 Earlier engagement requires

different operating skills

3 Project operating system

informs commercial (contract)

32

Impact

What impact do you think lean practices have

on satisfaction

ndash Significant

ndash Moderate

ndash Some

ndash None

ndash Unable to determine

33

Whatrsquos next

34

Goal Over 150 responses

35

Minimum Requirements

Respondent Profile

bull Must be an Owner

bull Knowledgeable about

construction projects at

their organization

bull In last 3 years completed

more than 5 capital

projects

bull Total capital expenditures

more than $10M

Best amp Typical Projects

bull Construction cost of

$10M or more

bull New Construction or

Major Renovation

bull Completed at least one

year but no more than

five years ago

bull In North America

36

Recruiting Owners

bull Survey Link

ndash tinyurlcomLeanConstruction2

bull Call for Participation

ndash Quick overview to be shared with owners

bull Talking Points

ndash For your use in advance of client interactions to prepare you to addresses

key issues and potential questions (eg benefits confidentiality of data)

bull Offline version of Survey

ndash To share with owners to collect project information in advance of taking the

survey

Bevan Mace ndash bmacebalfourbeattyuscom

Steve Jones ndash stevejonesconstructioncom

Page 3: are Owners? - Lean Construction Institute · 2016/5/26  · 5 Sat·is·fac·tion Fulfillment of one’s wishes, expectations, or needs, or the pleasure derived from this. How satisfied

3

Why Research Objectives

1 Create baseline of owner satisfaction

project performance

2 Explore the influence of LCI framework

on project performance

4

Industry Effort Partnership

bull CURT

bull COAA

bull AGC ndash Private Industry Council

bull DBIA

bull Dodge Owner Group

bull e-Builder

5

Satisfaction

Fulfillment of onersquos wishes expectations or needs or the pleasure derived from this

How satisfied are you with the delivery of

capital projects

ndash Always

ndash Frequently

ndash Sometimes

ndash Infrequently Never

6

Owner Satisfaction analyticsstoreconstructioncom

7

Industry Efficiency

Most who never

heard of Lean think

the industry is Efficient

analyticsstoreconstructioncom

8

Methodology

1 Identify metrics to measure satisfaction

project performance

2 Identify factors to understand project

environment

3 Explore variance of ldquoBestrdquo vs ldquoTypicalrdquo

9

Performance Metrics

bull Cost amp Schedule (Quantitative) ndash Actual vs Approval of Capital Project

ndash Actual vs Start of Construction

bull Quality (Qualitative) ndash Features incorporated in design

ndash Craftsmanship during construction

ndash Performance during occupancy

bull Safety (Qualitative) ndash Safety during construction

ndash Safety during maintenance

10

Framework Assessment

bull Organizational ndash Team chemistry alignment

ndash Relatedness

ndash Decision making

bull Commercial ndash Time of engagement

ndash Procurement selection method

ndash Delivery method amp contract type

bull Operating System ndash Traditional methods

ndash Lean methods

11

Early Engagement

How do you define early engagement

Key stakeholders are engagedhellip

ndash During construction documentation

ndash During design development

ndash During schematic design

ndash Before or during conceptualization

12

Performance Owner Value

Adherence to

Project Schedule

most highly valued

How Owners Define Value Ranking Relative Importance of Performance Metrics

13

Performance CostSchedule

Most Typical

Projects complete

behind schedule

over budget

Cost is improved

more than schedule

on Best Performing

Projects

Variance of Estimated Schedule and Cost

at Construction Start vs Completion

14

Performance CostSchedule

Most Typical

Projects complete

behind schedule

over budget

Cost is improved

more than schedule

on Best Performing

Projects

Variance of Estimated Schedule and Cost

at Construction Start vs Completion

15

Performance Schedule

28 of best projects finish early vs only 9 of typical

Amount of Variance of lsquoOriginal Schedule When Budget Allocatedrsquo vs lsquoFinal Schedulersquo

Complete Behind Original Schedule Complete Ahead of Original Schedule

Best Performing Projects

28 complete ahead of

schedule

(vs 9 of typical)

Typical Projects

28 complete more than

11 behind schedule

(vs 9 of best)

16

Performance Cost

63 of best projects under budget vs only 9 of typical

Amount of Variance of lsquoAllocated Capital Costrsquo vs lsquoFinal Costrsquo

Best Performing

Projects

28 complete

ahead of schedule

Typical Projects

56 complete

behind schedule

Complete Over Allocated Capital Cost Complete Under Allocated Capital Cost

Typical Projects

Half complete over original

allocated capital budget

(vs 15 of best)

Best Performing Projects

63 complete under original

allocated capital budget

(vs 9 of typical)

17

Performance QualitySafety

Typical Projectsrsquo

quality and safety

performance is

already better than

cost and schedule

Best Projects are

13-20 percentage

points better but

overall impact is not

as dramatic as cost

Positive and Negative Ratings

for Quality and Safety

18

Organizational Aspects

Owners identify

Project Team as

single most

important

contributing factor

to performance

Single Most Important Factor That

Contributes to Project Performance

19

Organizational Aspects

Early engagement is key aspect of best projects

Timing of Key Stakeholder Engagement (TypicalBest)

Best Performing

Projects 75 engage key

stakeholders before

Schematic Design

Typical Projects 56 donrsquot engage key

stakeholders until after

Schematic Design

20

Organizational Aspects

Team dynamics gaps between best and typical

Percentage Reporting the Highest (44) Team Dynamics Ratings (TypicalBest)

21

Commercial Aspects

Best Value is most

frequent selection

process on best

performing projects

Selection of Key Stakeholder Engagement

22

Commercial Aspects

IPD is most frequent

delivery method on

best performing

projects Not used

on any typical

projects

Top Delivery Methods on

Typical and Best Projects

23

Commercial Aspects

GMP is most

frequent contract type

on best performing

projects

Cost Reimbursable

with Target and

Shared RiskReward

is only used on best

performing projects

Top Contracting Types on

Typical and Best Projects

( with or without shared savings)

24

Operating System Aspects

527 Methods Focused on Schedule Performance

25

Operating System Aspects

527 Methods Focused on CostBudget Performance

26

Operating System Aspects

Top 527 Methods Focused on Team Dynamics

27

Operating System Aspects

Other 6 Methods Focused on Team Dynamics

28

Operating System Aspects

1027 biggest gaps between typical and best projects

29

Most Impactful on Performance

Timing Engage key stakeholders as early as possible

(prior to schematic design)

Team selection Best Value

Form of agreement IPD

Contract type compensation method for key

stakeholders that are contracted to the owner

Guaranteed Maximum Price - or - Cost Reimbursable

with Target and Shared Risk Reward

( with or without shared savings)

30

Most Impactful on Performance

Use (at least) these six highly-rated project team

management and operational methods

ndash Co-location Big Room

ndash Target Value Design

ndash 3D BIM Coordination

ndash ConceptualContinuous Estimating

ndash Visual Management

ndash Last Planner System reg

31

Takeaways

1 Organizational transformations

enable project transformations

2 Earlier engagement requires

different operating skills

3 Project operating system

informs commercial (contract)

32

Impact

What impact do you think lean practices have

on satisfaction

ndash Significant

ndash Moderate

ndash Some

ndash None

ndash Unable to determine

33

Whatrsquos next

34

Goal Over 150 responses

35

Minimum Requirements

Respondent Profile

bull Must be an Owner

bull Knowledgeable about

construction projects at

their organization

bull In last 3 years completed

more than 5 capital

projects

bull Total capital expenditures

more than $10M

Best amp Typical Projects

bull Construction cost of

$10M or more

bull New Construction or

Major Renovation

bull Completed at least one

year but no more than

five years ago

bull In North America

36

Recruiting Owners

bull Survey Link

ndash tinyurlcomLeanConstruction2

bull Call for Participation

ndash Quick overview to be shared with owners

bull Talking Points

ndash For your use in advance of client interactions to prepare you to addresses

key issues and potential questions (eg benefits confidentiality of data)

bull Offline version of Survey

ndash To share with owners to collect project information in advance of taking the

survey

Bevan Mace ndash bmacebalfourbeattyuscom

Steve Jones ndash stevejonesconstructioncom

Page 4: are Owners? - Lean Construction Institute · 2016/5/26  · 5 Sat·is·fac·tion Fulfillment of one’s wishes, expectations, or needs, or the pleasure derived from this. How satisfied

4

Industry Effort Partnership

bull CURT

bull COAA

bull AGC ndash Private Industry Council

bull DBIA

bull Dodge Owner Group

bull e-Builder

5

Satisfaction

Fulfillment of onersquos wishes expectations or needs or the pleasure derived from this

How satisfied are you with the delivery of

capital projects

ndash Always

ndash Frequently

ndash Sometimes

ndash Infrequently Never

6

Owner Satisfaction analyticsstoreconstructioncom

7

Industry Efficiency

Most who never

heard of Lean think

the industry is Efficient

analyticsstoreconstructioncom

8

Methodology

1 Identify metrics to measure satisfaction

project performance

2 Identify factors to understand project

environment

3 Explore variance of ldquoBestrdquo vs ldquoTypicalrdquo

9

Performance Metrics

bull Cost amp Schedule (Quantitative) ndash Actual vs Approval of Capital Project

ndash Actual vs Start of Construction

bull Quality (Qualitative) ndash Features incorporated in design

ndash Craftsmanship during construction

ndash Performance during occupancy

bull Safety (Qualitative) ndash Safety during construction

ndash Safety during maintenance

10

Framework Assessment

bull Organizational ndash Team chemistry alignment

ndash Relatedness

ndash Decision making

bull Commercial ndash Time of engagement

ndash Procurement selection method

ndash Delivery method amp contract type

bull Operating System ndash Traditional methods

ndash Lean methods

11

Early Engagement

How do you define early engagement

Key stakeholders are engagedhellip

ndash During construction documentation

ndash During design development

ndash During schematic design

ndash Before or during conceptualization

12

Performance Owner Value

Adherence to

Project Schedule

most highly valued

How Owners Define Value Ranking Relative Importance of Performance Metrics

13

Performance CostSchedule

Most Typical

Projects complete

behind schedule

over budget

Cost is improved

more than schedule

on Best Performing

Projects

Variance of Estimated Schedule and Cost

at Construction Start vs Completion

14

Performance CostSchedule

Most Typical

Projects complete

behind schedule

over budget

Cost is improved

more than schedule

on Best Performing

Projects

Variance of Estimated Schedule and Cost

at Construction Start vs Completion

15

Performance Schedule

28 of best projects finish early vs only 9 of typical

Amount of Variance of lsquoOriginal Schedule When Budget Allocatedrsquo vs lsquoFinal Schedulersquo

Complete Behind Original Schedule Complete Ahead of Original Schedule

Best Performing Projects

28 complete ahead of

schedule

(vs 9 of typical)

Typical Projects

28 complete more than

11 behind schedule

(vs 9 of best)

16

Performance Cost

63 of best projects under budget vs only 9 of typical

Amount of Variance of lsquoAllocated Capital Costrsquo vs lsquoFinal Costrsquo

Best Performing

Projects

28 complete

ahead of schedule

Typical Projects

56 complete

behind schedule

Complete Over Allocated Capital Cost Complete Under Allocated Capital Cost

Typical Projects

Half complete over original

allocated capital budget

(vs 15 of best)

Best Performing Projects

63 complete under original

allocated capital budget

(vs 9 of typical)

17

Performance QualitySafety

Typical Projectsrsquo

quality and safety

performance is

already better than

cost and schedule

Best Projects are

13-20 percentage

points better but

overall impact is not

as dramatic as cost

Positive and Negative Ratings

for Quality and Safety

18

Organizational Aspects

Owners identify

Project Team as

single most

important

contributing factor

to performance

Single Most Important Factor That

Contributes to Project Performance

19

Organizational Aspects

Early engagement is key aspect of best projects

Timing of Key Stakeholder Engagement (TypicalBest)

Best Performing

Projects 75 engage key

stakeholders before

Schematic Design

Typical Projects 56 donrsquot engage key

stakeholders until after

Schematic Design

20

Organizational Aspects

Team dynamics gaps between best and typical

Percentage Reporting the Highest (44) Team Dynamics Ratings (TypicalBest)

21

Commercial Aspects

Best Value is most

frequent selection

process on best

performing projects

Selection of Key Stakeholder Engagement

22

Commercial Aspects

IPD is most frequent

delivery method on

best performing

projects Not used

on any typical

projects

Top Delivery Methods on

Typical and Best Projects

23

Commercial Aspects

GMP is most

frequent contract type

on best performing

projects

Cost Reimbursable

with Target and

Shared RiskReward

is only used on best

performing projects

Top Contracting Types on

Typical and Best Projects

( with or without shared savings)

24

Operating System Aspects

527 Methods Focused on Schedule Performance

25

Operating System Aspects

527 Methods Focused on CostBudget Performance

26

Operating System Aspects

Top 527 Methods Focused on Team Dynamics

27

Operating System Aspects

Other 6 Methods Focused on Team Dynamics

28

Operating System Aspects

1027 biggest gaps between typical and best projects

29

Most Impactful on Performance

Timing Engage key stakeholders as early as possible

(prior to schematic design)

Team selection Best Value

Form of agreement IPD

Contract type compensation method for key

stakeholders that are contracted to the owner

Guaranteed Maximum Price - or - Cost Reimbursable

with Target and Shared Risk Reward

( with or without shared savings)

30

Most Impactful on Performance

Use (at least) these six highly-rated project team

management and operational methods

ndash Co-location Big Room

ndash Target Value Design

ndash 3D BIM Coordination

ndash ConceptualContinuous Estimating

ndash Visual Management

ndash Last Planner System reg

31

Takeaways

1 Organizational transformations

enable project transformations

2 Earlier engagement requires

different operating skills

3 Project operating system

informs commercial (contract)

32

Impact

What impact do you think lean practices have

on satisfaction

ndash Significant

ndash Moderate

ndash Some

ndash None

ndash Unable to determine

33

Whatrsquos next

34

Goal Over 150 responses

35

Minimum Requirements

Respondent Profile

bull Must be an Owner

bull Knowledgeable about

construction projects at

their organization

bull In last 3 years completed

more than 5 capital

projects

bull Total capital expenditures

more than $10M

Best amp Typical Projects

bull Construction cost of

$10M or more

bull New Construction or

Major Renovation

bull Completed at least one

year but no more than

five years ago

bull In North America

36

Recruiting Owners

bull Survey Link

ndash tinyurlcomLeanConstruction2

bull Call for Participation

ndash Quick overview to be shared with owners

bull Talking Points

ndash For your use in advance of client interactions to prepare you to addresses

key issues and potential questions (eg benefits confidentiality of data)

bull Offline version of Survey

ndash To share with owners to collect project information in advance of taking the

survey

Bevan Mace ndash bmacebalfourbeattyuscom

Steve Jones ndash stevejonesconstructioncom

Page 5: are Owners? - Lean Construction Institute · 2016/5/26  · 5 Sat·is·fac·tion Fulfillment of one’s wishes, expectations, or needs, or the pleasure derived from this. How satisfied

5

Satisfaction

Fulfillment of onersquos wishes expectations or needs or the pleasure derived from this

How satisfied are you with the delivery of

capital projects

ndash Always

ndash Frequently

ndash Sometimes

ndash Infrequently Never

6

Owner Satisfaction analyticsstoreconstructioncom

7

Industry Efficiency

Most who never

heard of Lean think

the industry is Efficient

analyticsstoreconstructioncom

8

Methodology

1 Identify metrics to measure satisfaction

project performance

2 Identify factors to understand project

environment

3 Explore variance of ldquoBestrdquo vs ldquoTypicalrdquo

9

Performance Metrics

bull Cost amp Schedule (Quantitative) ndash Actual vs Approval of Capital Project

ndash Actual vs Start of Construction

bull Quality (Qualitative) ndash Features incorporated in design

ndash Craftsmanship during construction

ndash Performance during occupancy

bull Safety (Qualitative) ndash Safety during construction

ndash Safety during maintenance

10

Framework Assessment

bull Organizational ndash Team chemistry alignment

ndash Relatedness

ndash Decision making

bull Commercial ndash Time of engagement

ndash Procurement selection method

ndash Delivery method amp contract type

bull Operating System ndash Traditional methods

ndash Lean methods

11

Early Engagement

How do you define early engagement

Key stakeholders are engagedhellip

ndash During construction documentation

ndash During design development

ndash During schematic design

ndash Before or during conceptualization

12

Performance Owner Value

Adherence to

Project Schedule

most highly valued

How Owners Define Value Ranking Relative Importance of Performance Metrics

13

Performance CostSchedule

Most Typical

Projects complete

behind schedule

over budget

Cost is improved

more than schedule

on Best Performing

Projects

Variance of Estimated Schedule and Cost

at Construction Start vs Completion

14

Performance CostSchedule

Most Typical

Projects complete

behind schedule

over budget

Cost is improved

more than schedule

on Best Performing

Projects

Variance of Estimated Schedule and Cost

at Construction Start vs Completion

15

Performance Schedule

28 of best projects finish early vs only 9 of typical

Amount of Variance of lsquoOriginal Schedule When Budget Allocatedrsquo vs lsquoFinal Schedulersquo

Complete Behind Original Schedule Complete Ahead of Original Schedule

Best Performing Projects

28 complete ahead of

schedule

(vs 9 of typical)

Typical Projects

28 complete more than

11 behind schedule

(vs 9 of best)

16

Performance Cost

63 of best projects under budget vs only 9 of typical

Amount of Variance of lsquoAllocated Capital Costrsquo vs lsquoFinal Costrsquo

Best Performing

Projects

28 complete

ahead of schedule

Typical Projects

56 complete

behind schedule

Complete Over Allocated Capital Cost Complete Under Allocated Capital Cost

Typical Projects

Half complete over original

allocated capital budget

(vs 15 of best)

Best Performing Projects

63 complete under original

allocated capital budget

(vs 9 of typical)

17

Performance QualitySafety

Typical Projectsrsquo

quality and safety

performance is

already better than

cost and schedule

Best Projects are

13-20 percentage

points better but

overall impact is not

as dramatic as cost

Positive and Negative Ratings

for Quality and Safety

18

Organizational Aspects

Owners identify

Project Team as

single most

important

contributing factor

to performance

Single Most Important Factor That

Contributes to Project Performance

19

Organizational Aspects

Early engagement is key aspect of best projects

Timing of Key Stakeholder Engagement (TypicalBest)

Best Performing

Projects 75 engage key

stakeholders before

Schematic Design

Typical Projects 56 donrsquot engage key

stakeholders until after

Schematic Design

20

Organizational Aspects

Team dynamics gaps between best and typical

Percentage Reporting the Highest (44) Team Dynamics Ratings (TypicalBest)

21

Commercial Aspects

Best Value is most

frequent selection

process on best

performing projects

Selection of Key Stakeholder Engagement

22

Commercial Aspects

IPD is most frequent

delivery method on

best performing

projects Not used

on any typical

projects

Top Delivery Methods on

Typical and Best Projects

23

Commercial Aspects

GMP is most

frequent contract type

on best performing

projects

Cost Reimbursable

with Target and

Shared RiskReward

is only used on best

performing projects

Top Contracting Types on

Typical and Best Projects

( with or without shared savings)

24

Operating System Aspects

527 Methods Focused on Schedule Performance

25

Operating System Aspects

527 Methods Focused on CostBudget Performance

26

Operating System Aspects

Top 527 Methods Focused on Team Dynamics

27

Operating System Aspects

Other 6 Methods Focused on Team Dynamics

28

Operating System Aspects

1027 biggest gaps between typical and best projects

29

Most Impactful on Performance

Timing Engage key stakeholders as early as possible

(prior to schematic design)

Team selection Best Value

Form of agreement IPD

Contract type compensation method for key

stakeholders that are contracted to the owner

Guaranteed Maximum Price - or - Cost Reimbursable

with Target and Shared Risk Reward

( with or without shared savings)

30

Most Impactful on Performance

Use (at least) these six highly-rated project team

management and operational methods

ndash Co-location Big Room

ndash Target Value Design

ndash 3D BIM Coordination

ndash ConceptualContinuous Estimating

ndash Visual Management

ndash Last Planner System reg

31

Takeaways

1 Organizational transformations

enable project transformations

2 Earlier engagement requires

different operating skills

3 Project operating system

informs commercial (contract)

32

Impact

What impact do you think lean practices have

on satisfaction

ndash Significant

ndash Moderate

ndash Some

ndash None

ndash Unable to determine

33

Whatrsquos next

34

Goal Over 150 responses

35

Minimum Requirements

Respondent Profile

bull Must be an Owner

bull Knowledgeable about

construction projects at

their organization

bull In last 3 years completed

more than 5 capital

projects

bull Total capital expenditures

more than $10M

Best amp Typical Projects

bull Construction cost of

$10M or more

bull New Construction or

Major Renovation

bull Completed at least one

year but no more than

five years ago

bull In North America

36

Recruiting Owners

bull Survey Link

ndash tinyurlcomLeanConstruction2

bull Call for Participation

ndash Quick overview to be shared with owners

bull Talking Points

ndash For your use in advance of client interactions to prepare you to addresses

key issues and potential questions (eg benefits confidentiality of data)

bull Offline version of Survey

ndash To share with owners to collect project information in advance of taking the

survey

Bevan Mace ndash bmacebalfourbeattyuscom

Steve Jones ndash stevejonesconstructioncom

Page 6: are Owners? - Lean Construction Institute · 2016/5/26  · 5 Sat·is·fac·tion Fulfillment of one’s wishes, expectations, or needs, or the pleasure derived from this. How satisfied

6

Owner Satisfaction analyticsstoreconstructioncom

7

Industry Efficiency

Most who never

heard of Lean think

the industry is Efficient

analyticsstoreconstructioncom

8

Methodology

1 Identify metrics to measure satisfaction

project performance

2 Identify factors to understand project

environment

3 Explore variance of ldquoBestrdquo vs ldquoTypicalrdquo

9

Performance Metrics

bull Cost amp Schedule (Quantitative) ndash Actual vs Approval of Capital Project

ndash Actual vs Start of Construction

bull Quality (Qualitative) ndash Features incorporated in design

ndash Craftsmanship during construction

ndash Performance during occupancy

bull Safety (Qualitative) ndash Safety during construction

ndash Safety during maintenance

10

Framework Assessment

bull Organizational ndash Team chemistry alignment

ndash Relatedness

ndash Decision making

bull Commercial ndash Time of engagement

ndash Procurement selection method

ndash Delivery method amp contract type

bull Operating System ndash Traditional methods

ndash Lean methods

11

Early Engagement

How do you define early engagement

Key stakeholders are engagedhellip

ndash During construction documentation

ndash During design development

ndash During schematic design

ndash Before or during conceptualization

12

Performance Owner Value

Adherence to

Project Schedule

most highly valued

How Owners Define Value Ranking Relative Importance of Performance Metrics

13

Performance CostSchedule

Most Typical

Projects complete

behind schedule

over budget

Cost is improved

more than schedule

on Best Performing

Projects

Variance of Estimated Schedule and Cost

at Construction Start vs Completion

14

Performance CostSchedule

Most Typical

Projects complete

behind schedule

over budget

Cost is improved

more than schedule

on Best Performing

Projects

Variance of Estimated Schedule and Cost

at Construction Start vs Completion

15

Performance Schedule

28 of best projects finish early vs only 9 of typical

Amount of Variance of lsquoOriginal Schedule When Budget Allocatedrsquo vs lsquoFinal Schedulersquo

Complete Behind Original Schedule Complete Ahead of Original Schedule

Best Performing Projects

28 complete ahead of

schedule

(vs 9 of typical)

Typical Projects

28 complete more than

11 behind schedule

(vs 9 of best)

16

Performance Cost

63 of best projects under budget vs only 9 of typical

Amount of Variance of lsquoAllocated Capital Costrsquo vs lsquoFinal Costrsquo

Best Performing

Projects

28 complete

ahead of schedule

Typical Projects

56 complete

behind schedule

Complete Over Allocated Capital Cost Complete Under Allocated Capital Cost

Typical Projects

Half complete over original

allocated capital budget

(vs 15 of best)

Best Performing Projects

63 complete under original

allocated capital budget

(vs 9 of typical)

17

Performance QualitySafety

Typical Projectsrsquo

quality and safety

performance is

already better than

cost and schedule

Best Projects are

13-20 percentage

points better but

overall impact is not

as dramatic as cost

Positive and Negative Ratings

for Quality and Safety

18

Organizational Aspects

Owners identify

Project Team as

single most

important

contributing factor

to performance

Single Most Important Factor That

Contributes to Project Performance

19

Organizational Aspects

Early engagement is key aspect of best projects

Timing of Key Stakeholder Engagement (TypicalBest)

Best Performing

Projects 75 engage key

stakeholders before

Schematic Design

Typical Projects 56 donrsquot engage key

stakeholders until after

Schematic Design

20

Organizational Aspects

Team dynamics gaps between best and typical

Percentage Reporting the Highest (44) Team Dynamics Ratings (TypicalBest)

21

Commercial Aspects

Best Value is most

frequent selection

process on best

performing projects

Selection of Key Stakeholder Engagement

22

Commercial Aspects

IPD is most frequent

delivery method on

best performing

projects Not used

on any typical

projects

Top Delivery Methods on

Typical and Best Projects

23

Commercial Aspects

GMP is most

frequent contract type

on best performing

projects

Cost Reimbursable

with Target and

Shared RiskReward

is only used on best

performing projects

Top Contracting Types on

Typical and Best Projects

( with or without shared savings)

24

Operating System Aspects

527 Methods Focused on Schedule Performance

25

Operating System Aspects

527 Methods Focused on CostBudget Performance

26

Operating System Aspects

Top 527 Methods Focused on Team Dynamics

27

Operating System Aspects

Other 6 Methods Focused on Team Dynamics

28

Operating System Aspects

1027 biggest gaps between typical and best projects

29

Most Impactful on Performance

Timing Engage key stakeholders as early as possible

(prior to schematic design)

Team selection Best Value

Form of agreement IPD

Contract type compensation method for key

stakeholders that are contracted to the owner

Guaranteed Maximum Price - or - Cost Reimbursable

with Target and Shared Risk Reward

( with or without shared savings)

30

Most Impactful on Performance

Use (at least) these six highly-rated project team

management and operational methods

ndash Co-location Big Room

ndash Target Value Design

ndash 3D BIM Coordination

ndash ConceptualContinuous Estimating

ndash Visual Management

ndash Last Planner System reg

31

Takeaways

1 Organizational transformations

enable project transformations

2 Earlier engagement requires

different operating skills

3 Project operating system

informs commercial (contract)

32

Impact

What impact do you think lean practices have

on satisfaction

ndash Significant

ndash Moderate

ndash Some

ndash None

ndash Unable to determine

33

Whatrsquos next

34

Goal Over 150 responses

35

Minimum Requirements

Respondent Profile

bull Must be an Owner

bull Knowledgeable about

construction projects at

their organization

bull In last 3 years completed

more than 5 capital

projects

bull Total capital expenditures

more than $10M

Best amp Typical Projects

bull Construction cost of

$10M or more

bull New Construction or

Major Renovation

bull Completed at least one

year but no more than

five years ago

bull In North America

36

Recruiting Owners

bull Survey Link

ndash tinyurlcomLeanConstruction2

bull Call for Participation

ndash Quick overview to be shared with owners

bull Talking Points

ndash For your use in advance of client interactions to prepare you to addresses

key issues and potential questions (eg benefits confidentiality of data)

bull Offline version of Survey

ndash To share with owners to collect project information in advance of taking the

survey

Bevan Mace ndash bmacebalfourbeattyuscom

Steve Jones ndash stevejonesconstructioncom

Page 7: are Owners? - Lean Construction Institute · 2016/5/26  · 5 Sat·is·fac·tion Fulfillment of one’s wishes, expectations, or needs, or the pleasure derived from this. How satisfied

7

Industry Efficiency

Most who never

heard of Lean think

the industry is Efficient

analyticsstoreconstructioncom

8

Methodology

1 Identify metrics to measure satisfaction

project performance

2 Identify factors to understand project

environment

3 Explore variance of ldquoBestrdquo vs ldquoTypicalrdquo

9

Performance Metrics

bull Cost amp Schedule (Quantitative) ndash Actual vs Approval of Capital Project

ndash Actual vs Start of Construction

bull Quality (Qualitative) ndash Features incorporated in design

ndash Craftsmanship during construction

ndash Performance during occupancy

bull Safety (Qualitative) ndash Safety during construction

ndash Safety during maintenance

10

Framework Assessment

bull Organizational ndash Team chemistry alignment

ndash Relatedness

ndash Decision making

bull Commercial ndash Time of engagement

ndash Procurement selection method

ndash Delivery method amp contract type

bull Operating System ndash Traditional methods

ndash Lean methods

11

Early Engagement

How do you define early engagement

Key stakeholders are engagedhellip

ndash During construction documentation

ndash During design development

ndash During schematic design

ndash Before or during conceptualization

12

Performance Owner Value

Adherence to

Project Schedule

most highly valued

How Owners Define Value Ranking Relative Importance of Performance Metrics

13

Performance CostSchedule

Most Typical

Projects complete

behind schedule

over budget

Cost is improved

more than schedule

on Best Performing

Projects

Variance of Estimated Schedule and Cost

at Construction Start vs Completion

14

Performance CostSchedule

Most Typical

Projects complete

behind schedule

over budget

Cost is improved

more than schedule

on Best Performing

Projects

Variance of Estimated Schedule and Cost

at Construction Start vs Completion

15

Performance Schedule

28 of best projects finish early vs only 9 of typical

Amount of Variance of lsquoOriginal Schedule When Budget Allocatedrsquo vs lsquoFinal Schedulersquo

Complete Behind Original Schedule Complete Ahead of Original Schedule

Best Performing Projects

28 complete ahead of

schedule

(vs 9 of typical)

Typical Projects

28 complete more than

11 behind schedule

(vs 9 of best)

16

Performance Cost

63 of best projects under budget vs only 9 of typical

Amount of Variance of lsquoAllocated Capital Costrsquo vs lsquoFinal Costrsquo

Best Performing

Projects

28 complete

ahead of schedule

Typical Projects

56 complete

behind schedule

Complete Over Allocated Capital Cost Complete Under Allocated Capital Cost

Typical Projects

Half complete over original

allocated capital budget

(vs 15 of best)

Best Performing Projects

63 complete under original

allocated capital budget

(vs 9 of typical)

17

Performance QualitySafety

Typical Projectsrsquo

quality and safety

performance is

already better than

cost and schedule

Best Projects are

13-20 percentage

points better but

overall impact is not

as dramatic as cost

Positive and Negative Ratings

for Quality and Safety

18

Organizational Aspects

Owners identify

Project Team as

single most

important

contributing factor

to performance

Single Most Important Factor That

Contributes to Project Performance

19

Organizational Aspects

Early engagement is key aspect of best projects

Timing of Key Stakeholder Engagement (TypicalBest)

Best Performing

Projects 75 engage key

stakeholders before

Schematic Design

Typical Projects 56 donrsquot engage key

stakeholders until after

Schematic Design

20

Organizational Aspects

Team dynamics gaps between best and typical

Percentage Reporting the Highest (44) Team Dynamics Ratings (TypicalBest)

21

Commercial Aspects

Best Value is most

frequent selection

process on best

performing projects

Selection of Key Stakeholder Engagement

22

Commercial Aspects

IPD is most frequent

delivery method on

best performing

projects Not used

on any typical

projects

Top Delivery Methods on

Typical and Best Projects

23

Commercial Aspects

GMP is most

frequent contract type

on best performing

projects

Cost Reimbursable

with Target and

Shared RiskReward

is only used on best

performing projects

Top Contracting Types on

Typical and Best Projects

( with or without shared savings)

24

Operating System Aspects

527 Methods Focused on Schedule Performance

25

Operating System Aspects

527 Methods Focused on CostBudget Performance

26

Operating System Aspects

Top 527 Methods Focused on Team Dynamics

27

Operating System Aspects

Other 6 Methods Focused on Team Dynamics

28

Operating System Aspects

1027 biggest gaps between typical and best projects

29

Most Impactful on Performance

Timing Engage key stakeholders as early as possible

(prior to schematic design)

Team selection Best Value

Form of agreement IPD

Contract type compensation method for key

stakeholders that are contracted to the owner

Guaranteed Maximum Price - or - Cost Reimbursable

with Target and Shared Risk Reward

( with or without shared savings)

30

Most Impactful on Performance

Use (at least) these six highly-rated project team

management and operational methods

ndash Co-location Big Room

ndash Target Value Design

ndash 3D BIM Coordination

ndash ConceptualContinuous Estimating

ndash Visual Management

ndash Last Planner System reg

31

Takeaways

1 Organizational transformations

enable project transformations

2 Earlier engagement requires

different operating skills

3 Project operating system

informs commercial (contract)

32

Impact

What impact do you think lean practices have

on satisfaction

ndash Significant

ndash Moderate

ndash Some

ndash None

ndash Unable to determine

33

Whatrsquos next

34

Goal Over 150 responses

35

Minimum Requirements

Respondent Profile

bull Must be an Owner

bull Knowledgeable about

construction projects at

their organization

bull In last 3 years completed

more than 5 capital

projects

bull Total capital expenditures

more than $10M

Best amp Typical Projects

bull Construction cost of

$10M or more

bull New Construction or

Major Renovation

bull Completed at least one

year but no more than

five years ago

bull In North America

36

Recruiting Owners

bull Survey Link

ndash tinyurlcomLeanConstruction2

bull Call for Participation

ndash Quick overview to be shared with owners

bull Talking Points

ndash For your use in advance of client interactions to prepare you to addresses

key issues and potential questions (eg benefits confidentiality of data)

bull Offline version of Survey

ndash To share with owners to collect project information in advance of taking the

survey

Bevan Mace ndash bmacebalfourbeattyuscom

Steve Jones ndash stevejonesconstructioncom

Page 8: are Owners? - Lean Construction Institute · 2016/5/26  · 5 Sat·is·fac·tion Fulfillment of one’s wishes, expectations, or needs, or the pleasure derived from this. How satisfied

8

Methodology

1 Identify metrics to measure satisfaction

project performance

2 Identify factors to understand project

environment

3 Explore variance of ldquoBestrdquo vs ldquoTypicalrdquo

9

Performance Metrics

bull Cost amp Schedule (Quantitative) ndash Actual vs Approval of Capital Project

ndash Actual vs Start of Construction

bull Quality (Qualitative) ndash Features incorporated in design

ndash Craftsmanship during construction

ndash Performance during occupancy

bull Safety (Qualitative) ndash Safety during construction

ndash Safety during maintenance

10

Framework Assessment

bull Organizational ndash Team chemistry alignment

ndash Relatedness

ndash Decision making

bull Commercial ndash Time of engagement

ndash Procurement selection method

ndash Delivery method amp contract type

bull Operating System ndash Traditional methods

ndash Lean methods

11

Early Engagement

How do you define early engagement

Key stakeholders are engagedhellip

ndash During construction documentation

ndash During design development

ndash During schematic design

ndash Before or during conceptualization

12

Performance Owner Value

Adherence to

Project Schedule

most highly valued

How Owners Define Value Ranking Relative Importance of Performance Metrics

13

Performance CostSchedule

Most Typical

Projects complete

behind schedule

over budget

Cost is improved

more than schedule

on Best Performing

Projects

Variance of Estimated Schedule and Cost

at Construction Start vs Completion

14

Performance CostSchedule

Most Typical

Projects complete

behind schedule

over budget

Cost is improved

more than schedule

on Best Performing

Projects

Variance of Estimated Schedule and Cost

at Construction Start vs Completion

15

Performance Schedule

28 of best projects finish early vs only 9 of typical

Amount of Variance of lsquoOriginal Schedule When Budget Allocatedrsquo vs lsquoFinal Schedulersquo

Complete Behind Original Schedule Complete Ahead of Original Schedule

Best Performing Projects

28 complete ahead of

schedule

(vs 9 of typical)

Typical Projects

28 complete more than

11 behind schedule

(vs 9 of best)

16

Performance Cost

63 of best projects under budget vs only 9 of typical

Amount of Variance of lsquoAllocated Capital Costrsquo vs lsquoFinal Costrsquo

Best Performing

Projects

28 complete

ahead of schedule

Typical Projects

56 complete

behind schedule

Complete Over Allocated Capital Cost Complete Under Allocated Capital Cost

Typical Projects

Half complete over original

allocated capital budget

(vs 15 of best)

Best Performing Projects

63 complete under original

allocated capital budget

(vs 9 of typical)

17

Performance QualitySafety

Typical Projectsrsquo

quality and safety

performance is

already better than

cost and schedule

Best Projects are

13-20 percentage

points better but

overall impact is not

as dramatic as cost

Positive and Negative Ratings

for Quality and Safety

18

Organizational Aspects

Owners identify

Project Team as

single most

important

contributing factor

to performance

Single Most Important Factor That

Contributes to Project Performance

19

Organizational Aspects

Early engagement is key aspect of best projects

Timing of Key Stakeholder Engagement (TypicalBest)

Best Performing

Projects 75 engage key

stakeholders before

Schematic Design

Typical Projects 56 donrsquot engage key

stakeholders until after

Schematic Design

20

Organizational Aspects

Team dynamics gaps between best and typical

Percentage Reporting the Highest (44) Team Dynamics Ratings (TypicalBest)

21

Commercial Aspects

Best Value is most

frequent selection

process on best

performing projects

Selection of Key Stakeholder Engagement

22

Commercial Aspects

IPD is most frequent

delivery method on

best performing

projects Not used

on any typical

projects

Top Delivery Methods on

Typical and Best Projects

23

Commercial Aspects

GMP is most

frequent contract type

on best performing

projects

Cost Reimbursable

with Target and

Shared RiskReward

is only used on best

performing projects

Top Contracting Types on

Typical and Best Projects

( with or without shared savings)

24

Operating System Aspects

527 Methods Focused on Schedule Performance

25

Operating System Aspects

527 Methods Focused on CostBudget Performance

26

Operating System Aspects

Top 527 Methods Focused on Team Dynamics

27

Operating System Aspects

Other 6 Methods Focused on Team Dynamics

28

Operating System Aspects

1027 biggest gaps between typical and best projects

29

Most Impactful on Performance

Timing Engage key stakeholders as early as possible

(prior to schematic design)

Team selection Best Value

Form of agreement IPD

Contract type compensation method for key

stakeholders that are contracted to the owner

Guaranteed Maximum Price - or - Cost Reimbursable

with Target and Shared Risk Reward

( with or without shared savings)

30

Most Impactful on Performance

Use (at least) these six highly-rated project team

management and operational methods

ndash Co-location Big Room

ndash Target Value Design

ndash 3D BIM Coordination

ndash ConceptualContinuous Estimating

ndash Visual Management

ndash Last Planner System reg

31

Takeaways

1 Organizational transformations

enable project transformations

2 Earlier engagement requires

different operating skills

3 Project operating system

informs commercial (contract)

32

Impact

What impact do you think lean practices have

on satisfaction

ndash Significant

ndash Moderate

ndash Some

ndash None

ndash Unable to determine

33

Whatrsquos next

34

Goal Over 150 responses

35

Minimum Requirements

Respondent Profile

bull Must be an Owner

bull Knowledgeable about

construction projects at

their organization

bull In last 3 years completed

more than 5 capital

projects

bull Total capital expenditures

more than $10M

Best amp Typical Projects

bull Construction cost of

$10M or more

bull New Construction or

Major Renovation

bull Completed at least one

year but no more than

five years ago

bull In North America

36

Recruiting Owners

bull Survey Link

ndash tinyurlcomLeanConstruction2

bull Call for Participation

ndash Quick overview to be shared with owners

bull Talking Points

ndash For your use in advance of client interactions to prepare you to addresses

key issues and potential questions (eg benefits confidentiality of data)

bull Offline version of Survey

ndash To share with owners to collect project information in advance of taking the

survey

Bevan Mace ndash bmacebalfourbeattyuscom

Steve Jones ndash stevejonesconstructioncom

Page 9: are Owners? - Lean Construction Institute · 2016/5/26  · 5 Sat·is·fac·tion Fulfillment of one’s wishes, expectations, or needs, or the pleasure derived from this. How satisfied

9

Performance Metrics

bull Cost amp Schedule (Quantitative) ndash Actual vs Approval of Capital Project

ndash Actual vs Start of Construction

bull Quality (Qualitative) ndash Features incorporated in design

ndash Craftsmanship during construction

ndash Performance during occupancy

bull Safety (Qualitative) ndash Safety during construction

ndash Safety during maintenance

10

Framework Assessment

bull Organizational ndash Team chemistry alignment

ndash Relatedness

ndash Decision making

bull Commercial ndash Time of engagement

ndash Procurement selection method

ndash Delivery method amp contract type

bull Operating System ndash Traditional methods

ndash Lean methods

11

Early Engagement

How do you define early engagement

Key stakeholders are engagedhellip

ndash During construction documentation

ndash During design development

ndash During schematic design

ndash Before or during conceptualization

12

Performance Owner Value

Adherence to

Project Schedule

most highly valued

How Owners Define Value Ranking Relative Importance of Performance Metrics

13

Performance CostSchedule

Most Typical

Projects complete

behind schedule

over budget

Cost is improved

more than schedule

on Best Performing

Projects

Variance of Estimated Schedule and Cost

at Construction Start vs Completion

14

Performance CostSchedule

Most Typical

Projects complete

behind schedule

over budget

Cost is improved

more than schedule

on Best Performing

Projects

Variance of Estimated Schedule and Cost

at Construction Start vs Completion

15

Performance Schedule

28 of best projects finish early vs only 9 of typical

Amount of Variance of lsquoOriginal Schedule When Budget Allocatedrsquo vs lsquoFinal Schedulersquo

Complete Behind Original Schedule Complete Ahead of Original Schedule

Best Performing Projects

28 complete ahead of

schedule

(vs 9 of typical)

Typical Projects

28 complete more than

11 behind schedule

(vs 9 of best)

16

Performance Cost

63 of best projects under budget vs only 9 of typical

Amount of Variance of lsquoAllocated Capital Costrsquo vs lsquoFinal Costrsquo

Best Performing

Projects

28 complete

ahead of schedule

Typical Projects

56 complete

behind schedule

Complete Over Allocated Capital Cost Complete Under Allocated Capital Cost

Typical Projects

Half complete over original

allocated capital budget

(vs 15 of best)

Best Performing Projects

63 complete under original

allocated capital budget

(vs 9 of typical)

17

Performance QualitySafety

Typical Projectsrsquo

quality and safety

performance is

already better than

cost and schedule

Best Projects are

13-20 percentage

points better but

overall impact is not

as dramatic as cost

Positive and Negative Ratings

for Quality and Safety

18

Organizational Aspects

Owners identify

Project Team as

single most

important

contributing factor

to performance

Single Most Important Factor That

Contributes to Project Performance

19

Organizational Aspects

Early engagement is key aspect of best projects

Timing of Key Stakeholder Engagement (TypicalBest)

Best Performing

Projects 75 engage key

stakeholders before

Schematic Design

Typical Projects 56 donrsquot engage key

stakeholders until after

Schematic Design

20

Organizational Aspects

Team dynamics gaps between best and typical

Percentage Reporting the Highest (44) Team Dynamics Ratings (TypicalBest)

21

Commercial Aspects

Best Value is most

frequent selection

process on best

performing projects

Selection of Key Stakeholder Engagement

22

Commercial Aspects

IPD is most frequent

delivery method on

best performing

projects Not used

on any typical

projects

Top Delivery Methods on

Typical and Best Projects

23

Commercial Aspects

GMP is most

frequent contract type

on best performing

projects

Cost Reimbursable

with Target and

Shared RiskReward

is only used on best

performing projects

Top Contracting Types on

Typical and Best Projects

( with or without shared savings)

24

Operating System Aspects

527 Methods Focused on Schedule Performance

25

Operating System Aspects

527 Methods Focused on CostBudget Performance

26

Operating System Aspects

Top 527 Methods Focused on Team Dynamics

27

Operating System Aspects

Other 6 Methods Focused on Team Dynamics

28

Operating System Aspects

1027 biggest gaps between typical and best projects

29

Most Impactful on Performance

Timing Engage key stakeholders as early as possible

(prior to schematic design)

Team selection Best Value

Form of agreement IPD

Contract type compensation method for key

stakeholders that are contracted to the owner

Guaranteed Maximum Price - or - Cost Reimbursable

with Target and Shared Risk Reward

( with or without shared savings)

30

Most Impactful on Performance

Use (at least) these six highly-rated project team

management and operational methods

ndash Co-location Big Room

ndash Target Value Design

ndash 3D BIM Coordination

ndash ConceptualContinuous Estimating

ndash Visual Management

ndash Last Planner System reg

31

Takeaways

1 Organizational transformations

enable project transformations

2 Earlier engagement requires

different operating skills

3 Project operating system

informs commercial (contract)

32

Impact

What impact do you think lean practices have

on satisfaction

ndash Significant

ndash Moderate

ndash Some

ndash None

ndash Unable to determine

33

Whatrsquos next

34

Goal Over 150 responses

35

Minimum Requirements

Respondent Profile

bull Must be an Owner

bull Knowledgeable about

construction projects at

their organization

bull In last 3 years completed

more than 5 capital

projects

bull Total capital expenditures

more than $10M

Best amp Typical Projects

bull Construction cost of

$10M or more

bull New Construction or

Major Renovation

bull Completed at least one

year but no more than

five years ago

bull In North America

36

Recruiting Owners

bull Survey Link

ndash tinyurlcomLeanConstruction2

bull Call for Participation

ndash Quick overview to be shared with owners

bull Talking Points

ndash For your use in advance of client interactions to prepare you to addresses

key issues and potential questions (eg benefits confidentiality of data)

bull Offline version of Survey

ndash To share with owners to collect project information in advance of taking the

survey

Bevan Mace ndash bmacebalfourbeattyuscom

Steve Jones ndash stevejonesconstructioncom

Page 10: are Owners? - Lean Construction Institute · 2016/5/26  · 5 Sat·is·fac·tion Fulfillment of one’s wishes, expectations, or needs, or the pleasure derived from this. How satisfied

10

Framework Assessment

bull Organizational ndash Team chemistry alignment

ndash Relatedness

ndash Decision making

bull Commercial ndash Time of engagement

ndash Procurement selection method

ndash Delivery method amp contract type

bull Operating System ndash Traditional methods

ndash Lean methods

11

Early Engagement

How do you define early engagement

Key stakeholders are engagedhellip

ndash During construction documentation

ndash During design development

ndash During schematic design

ndash Before or during conceptualization

12

Performance Owner Value

Adherence to

Project Schedule

most highly valued

How Owners Define Value Ranking Relative Importance of Performance Metrics

13

Performance CostSchedule

Most Typical

Projects complete

behind schedule

over budget

Cost is improved

more than schedule

on Best Performing

Projects

Variance of Estimated Schedule and Cost

at Construction Start vs Completion

14

Performance CostSchedule

Most Typical

Projects complete

behind schedule

over budget

Cost is improved

more than schedule

on Best Performing

Projects

Variance of Estimated Schedule and Cost

at Construction Start vs Completion

15

Performance Schedule

28 of best projects finish early vs only 9 of typical

Amount of Variance of lsquoOriginal Schedule When Budget Allocatedrsquo vs lsquoFinal Schedulersquo

Complete Behind Original Schedule Complete Ahead of Original Schedule

Best Performing Projects

28 complete ahead of

schedule

(vs 9 of typical)

Typical Projects

28 complete more than

11 behind schedule

(vs 9 of best)

16

Performance Cost

63 of best projects under budget vs only 9 of typical

Amount of Variance of lsquoAllocated Capital Costrsquo vs lsquoFinal Costrsquo

Best Performing

Projects

28 complete

ahead of schedule

Typical Projects

56 complete

behind schedule

Complete Over Allocated Capital Cost Complete Under Allocated Capital Cost

Typical Projects

Half complete over original

allocated capital budget

(vs 15 of best)

Best Performing Projects

63 complete under original

allocated capital budget

(vs 9 of typical)

17

Performance QualitySafety

Typical Projectsrsquo

quality and safety

performance is

already better than

cost and schedule

Best Projects are

13-20 percentage

points better but

overall impact is not

as dramatic as cost

Positive and Negative Ratings

for Quality and Safety

18

Organizational Aspects

Owners identify

Project Team as

single most

important

contributing factor

to performance

Single Most Important Factor That

Contributes to Project Performance

19

Organizational Aspects

Early engagement is key aspect of best projects

Timing of Key Stakeholder Engagement (TypicalBest)

Best Performing

Projects 75 engage key

stakeholders before

Schematic Design

Typical Projects 56 donrsquot engage key

stakeholders until after

Schematic Design

20

Organizational Aspects

Team dynamics gaps between best and typical

Percentage Reporting the Highest (44) Team Dynamics Ratings (TypicalBest)

21

Commercial Aspects

Best Value is most

frequent selection

process on best

performing projects

Selection of Key Stakeholder Engagement

22

Commercial Aspects

IPD is most frequent

delivery method on

best performing

projects Not used

on any typical

projects

Top Delivery Methods on

Typical and Best Projects

23

Commercial Aspects

GMP is most

frequent contract type

on best performing

projects

Cost Reimbursable

with Target and

Shared RiskReward

is only used on best

performing projects

Top Contracting Types on

Typical and Best Projects

( with or without shared savings)

24

Operating System Aspects

527 Methods Focused on Schedule Performance

25

Operating System Aspects

527 Methods Focused on CostBudget Performance

26

Operating System Aspects

Top 527 Methods Focused on Team Dynamics

27

Operating System Aspects

Other 6 Methods Focused on Team Dynamics

28

Operating System Aspects

1027 biggest gaps between typical and best projects

29

Most Impactful on Performance

Timing Engage key stakeholders as early as possible

(prior to schematic design)

Team selection Best Value

Form of agreement IPD

Contract type compensation method for key

stakeholders that are contracted to the owner

Guaranteed Maximum Price - or - Cost Reimbursable

with Target and Shared Risk Reward

( with or without shared savings)

30

Most Impactful on Performance

Use (at least) these six highly-rated project team

management and operational methods

ndash Co-location Big Room

ndash Target Value Design

ndash 3D BIM Coordination

ndash ConceptualContinuous Estimating

ndash Visual Management

ndash Last Planner System reg

31

Takeaways

1 Organizational transformations

enable project transformations

2 Earlier engagement requires

different operating skills

3 Project operating system

informs commercial (contract)

32

Impact

What impact do you think lean practices have

on satisfaction

ndash Significant

ndash Moderate

ndash Some

ndash None

ndash Unable to determine

33

Whatrsquos next

34

Goal Over 150 responses

35

Minimum Requirements

Respondent Profile

bull Must be an Owner

bull Knowledgeable about

construction projects at

their organization

bull In last 3 years completed

more than 5 capital

projects

bull Total capital expenditures

more than $10M

Best amp Typical Projects

bull Construction cost of

$10M or more

bull New Construction or

Major Renovation

bull Completed at least one

year but no more than

five years ago

bull In North America

36

Recruiting Owners

bull Survey Link

ndash tinyurlcomLeanConstruction2

bull Call for Participation

ndash Quick overview to be shared with owners

bull Talking Points

ndash For your use in advance of client interactions to prepare you to addresses

key issues and potential questions (eg benefits confidentiality of data)

bull Offline version of Survey

ndash To share with owners to collect project information in advance of taking the

survey

Bevan Mace ndash bmacebalfourbeattyuscom

Steve Jones ndash stevejonesconstructioncom

Page 11: are Owners? - Lean Construction Institute · 2016/5/26  · 5 Sat·is·fac·tion Fulfillment of one’s wishes, expectations, or needs, or the pleasure derived from this. How satisfied

11

Early Engagement

How do you define early engagement

Key stakeholders are engagedhellip

ndash During construction documentation

ndash During design development

ndash During schematic design

ndash Before or during conceptualization

12

Performance Owner Value

Adherence to

Project Schedule

most highly valued

How Owners Define Value Ranking Relative Importance of Performance Metrics

13

Performance CostSchedule

Most Typical

Projects complete

behind schedule

over budget

Cost is improved

more than schedule

on Best Performing

Projects

Variance of Estimated Schedule and Cost

at Construction Start vs Completion

14

Performance CostSchedule

Most Typical

Projects complete

behind schedule

over budget

Cost is improved

more than schedule

on Best Performing

Projects

Variance of Estimated Schedule and Cost

at Construction Start vs Completion

15

Performance Schedule

28 of best projects finish early vs only 9 of typical

Amount of Variance of lsquoOriginal Schedule When Budget Allocatedrsquo vs lsquoFinal Schedulersquo

Complete Behind Original Schedule Complete Ahead of Original Schedule

Best Performing Projects

28 complete ahead of

schedule

(vs 9 of typical)

Typical Projects

28 complete more than

11 behind schedule

(vs 9 of best)

16

Performance Cost

63 of best projects under budget vs only 9 of typical

Amount of Variance of lsquoAllocated Capital Costrsquo vs lsquoFinal Costrsquo

Best Performing

Projects

28 complete

ahead of schedule

Typical Projects

56 complete

behind schedule

Complete Over Allocated Capital Cost Complete Under Allocated Capital Cost

Typical Projects

Half complete over original

allocated capital budget

(vs 15 of best)

Best Performing Projects

63 complete under original

allocated capital budget

(vs 9 of typical)

17

Performance QualitySafety

Typical Projectsrsquo

quality and safety

performance is

already better than

cost and schedule

Best Projects are

13-20 percentage

points better but

overall impact is not

as dramatic as cost

Positive and Negative Ratings

for Quality and Safety

18

Organizational Aspects

Owners identify

Project Team as

single most

important

contributing factor

to performance

Single Most Important Factor That

Contributes to Project Performance

19

Organizational Aspects

Early engagement is key aspect of best projects

Timing of Key Stakeholder Engagement (TypicalBest)

Best Performing

Projects 75 engage key

stakeholders before

Schematic Design

Typical Projects 56 donrsquot engage key

stakeholders until after

Schematic Design

20

Organizational Aspects

Team dynamics gaps between best and typical

Percentage Reporting the Highest (44) Team Dynamics Ratings (TypicalBest)

21

Commercial Aspects

Best Value is most

frequent selection

process on best

performing projects

Selection of Key Stakeholder Engagement

22

Commercial Aspects

IPD is most frequent

delivery method on

best performing

projects Not used

on any typical

projects

Top Delivery Methods on

Typical and Best Projects

23

Commercial Aspects

GMP is most

frequent contract type

on best performing

projects

Cost Reimbursable

with Target and

Shared RiskReward

is only used on best

performing projects

Top Contracting Types on

Typical and Best Projects

( with or without shared savings)

24

Operating System Aspects

527 Methods Focused on Schedule Performance

25

Operating System Aspects

527 Methods Focused on CostBudget Performance

26

Operating System Aspects

Top 527 Methods Focused on Team Dynamics

27

Operating System Aspects

Other 6 Methods Focused on Team Dynamics

28

Operating System Aspects

1027 biggest gaps between typical and best projects

29

Most Impactful on Performance

Timing Engage key stakeholders as early as possible

(prior to schematic design)

Team selection Best Value

Form of agreement IPD

Contract type compensation method for key

stakeholders that are contracted to the owner

Guaranteed Maximum Price - or - Cost Reimbursable

with Target and Shared Risk Reward

( with or without shared savings)

30

Most Impactful on Performance

Use (at least) these six highly-rated project team

management and operational methods

ndash Co-location Big Room

ndash Target Value Design

ndash 3D BIM Coordination

ndash ConceptualContinuous Estimating

ndash Visual Management

ndash Last Planner System reg

31

Takeaways

1 Organizational transformations

enable project transformations

2 Earlier engagement requires

different operating skills

3 Project operating system

informs commercial (contract)

32

Impact

What impact do you think lean practices have

on satisfaction

ndash Significant

ndash Moderate

ndash Some

ndash None

ndash Unable to determine

33

Whatrsquos next

34

Goal Over 150 responses

35

Minimum Requirements

Respondent Profile

bull Must be an Owner

bull Knowledgeable about

construction projects at

their organization

bull In last 3 years completed

more than 5 capital

projects

bull Total capital expenditures

more than $10M

Best amp Typical Projects

bull Construction cost of

$10M or more

bull New Construction or

Major Renovation

bull Completed at least one

year but no more than

five years ago

bull In North America

36

Recruiting Owners

bull Survey Link

ndash tinyurlcomLeanConstruction2

bull Call for Participation

ndash Quick overview to be shared with owners

bull Talking Points

ndash For your use in advance of client interactions to prepare you to addresses

key issues and potential questions (eg benefits confidentiality of data)

bull Offline version of Survey

ndash To share with owners to collect project information in advance of taking the

survey

Bevan Mace ndash bmacebalfourbeattyuscom

Steve Jones ndash stevejonesconstructioncom

Page 12: are Owners? - Lean Construction Institute · 2016/5/26  · 5 Sat·is·fac·tion Fulfillment of one’s wishes, expectations, or needs, or the pleasure derived from this. How satisfied

12

Performance Owner Value

Adherence to

Project Schedule

most highly valued

How Owners Define Value Ranking Relative Importance of Performance Metrics

13

Performance CostSchedule

Most Typical

Projects complete

behind schedule

over budget

Cost is improved

more than schedule

on Best Performing

Projects

Variance of Estimated Schedule and Cost

at Construction Start vs Completion

14

Performance CostSchedule

Most Typical

Projects complete

behind schedule

over budget

Cost is improved

more than schedule

on Best Performing

Projects

Variance of Estimated Schedule and Cost

at Construction Start vs Completion

15

Performance Schedule

28 of best projects finish early vs only 9 of typical

Amount of Variance of lsquoOriginal Schedule When Budget Allocatedrsquo vs lsquoFinal Schedulersquo

Complete Behind Original Schedule Complete Ahead of Original Schedule

Best Performing Projects

28 complete ahead of

schedule

(vs 9 of typical)

Typical Projects

28 complete more than

11 behind schedule

(vs 9 of best)

16

Performance Cost

63 of best projects under budget vs only 9 of typical

Amount of Variance of lsquoAllocated Capital Costrsquo vs lsquoFinal Costrsquo

Best Performing

Projects

28 complete

ahead of schedule

Typical Projects

56 complete

behind schedule

Complete Over Allocated Capital Cost Complete Under Allocated Capital Cost

Typical Projects

Half complete over original

allocated capital budget

(vs 15 of best)

Best Performing Projects

63 complete under original

allocated capital budget

(vs 9 of typical)

17

Performance QualitySafety

Typical Projectsrsquo

quality and safety

performance is

already better than

cost and schedule

Best Projects are

13-20 percentage

points better but

overall impact is not

as dramatic as cost

Positive and Negative Ratings

for Quality and Safety

18

Organizational Aspects

Owners identify

Project Team as

single most

important

contributing factor

to performance

Single Most Important Factor That

Contributes to Project Performance

19

Organizational Aspects

Early engagement is key aspect of best projects

Timing of Key Stakeholder Engagement (TypicalBest)

Best Performing

Projects 75 engage key

stakeholders before

Schematic Design

Typical Projects 56 donrsquot engage key

stakeholders until after

Schematic Design

20

Organizational Aspects

Team dynamics gaps between best and typical

Percentage Reporting the Highest (44) Team Dynamics Ratings (TypicalBest)

21

Commercial Aspects

Best Value is most

frequent selection

process on best

performing projects

Selection of Key Stakeholder Engagement

22

Commercial Aspects

IPD is most frequent

delivery method on

best performing

projects Not used

on any typical

projects

Top Delivery Methods on

Typical and Best Projects

23

Commercial Aspects

GMP is most

frequent contract type

on best performing

projects

Cost Reimbursable

with Target and

Shared RiskReward

is only used on best

performing projects

Top Contracting Types on

Typical and Best Projects

( with or without shared savings)

24

Operating System Aspects

527 Methods Focused on Schedule Performance

25

Operating System Aspects

527 Methods Focused on CostBudget Performance

26

Operating System Aspects

Top 527 Methods Focused on Team Dynamics

27

Operating System Aspects

Other 6 Methods Focused on Team Dynamics

28

Operating System Aspects

1027 biggest gaps between typical and best projects

29

Most Impactful on Performance

Timing Engage key stakeholders as early as possible

(prior to schematic design)

Team selection Best Value

Form of agreement IPD

Contract type compensation method for key

stakeholders that are contracted to the owner

Guaranteed Maximum Price - or - Cost Reimbursable

with Target and Shared Risk Reward

( with or without shared savings)

30

Most Impactful on Performance

Use (at least) these six highly-rated project team

management and operational methods

ndash Co-location Big Room

ndash Target Value Design

ndash 3D BIM Coordination

ndash ConceptualContinuous Estimating

ndash Visual Management

ndash Last Planner System reg

31

Takeaways

1 Organizational transformations

enable project transformations

2 Earlier engagement requires

different operating skills

3 Project operating system

informs commercial (contract)

32

Impact

What impact do you think lean practices have

on satisfaction

ndash Significant

ndash Moderate

ndash Some

ndash None

ndash Unable to determine

33

Whatrsquos next

34

Goal Over 150 responses

35

Minimum Requirements

Respondent Profile

bull Must be an Owner

bull Knowledgeable about

construction projects at

their organization

bull In last 3 years completed

more than 5 capital

projects

bull Total capital expenditures

more than $10M

Best amp Typical Projects

bull Construction cost of

$10M or more

bull New Construction or

Major Renovation

bull Completed at least one

year but no more than

five years ago

bull In North America

36

Recruiting Owners

bull Survey Link

ndash tinyurlcomLeanConstruction2

bull Call for Participation

ndash Quick overview to be shared with owners

bull Talking Points

ndash For your use in advance of client interactions to prepare you to addresses

key issues and potential questions (eg benefits confidentiality of data)

bull Offline version of Survey

ndash To share with owners to collect project information in advance of taking the

survey

Bevan Mace ndash bmacebalfourbeattyuscom

Steve Jones ndash stevejonesconstructioncom

Page 13: are Owners? - Lean Construction Institute · 2016/5/26  · 5 Sat·is·fac·tion Fulfillment of one’s wishes, expectations, or needs, or the pleasure derived from this. How satisfied

13

Performance CostSchedule

Most Typical

Projects complete

behind schedule

over budget

Cost is improved

more than schedule

on Best Performing

Projects

Variance of Estimated Schedule and Cost

at Construction Start vs Completion

14

Performance CostSchedule

Most Typical

Projects complete

behind schedule

over budget

Cost is improved

more than schedule

on Best Performing

Projects

Variance of Estimated Schedule and Cost

at Construction Start vs Completion

15

Performance Schedule

28 of best projects finish early vs only 9 of typical

Amount of Variance of lsquoOriginal Schedule When Budget Allocatedrsquo vs lsquoFinal Schedulersquo

Complete Behind Original Schedule Complete Ahead of Original Schedule

Best Performing Projects

28 complete ahead of

schedule

(vs 9 of typical)

Typical Projects

28 complete more than

11 behind schedule

(vs 9 of best)

16

Performance Cost

63 of best projects under budget vs only 9 of typical

Amount of Variance of lsquoAllocated Capital Costrsquo vs lsquoFinal Costrsquo

Best Performing

Projects

28 complete

ahead of schedule

Typical Projects

56 complete

behind schedule

Complete Over Allocated Capital Cost Complete Under Allocated Capital Cost

Typical Projects

Half complete over original

allocated capital budget

(vs 15 of best)

Best Performing Projects

63 complete under original

allocated capital budget

(vs 9 of typical)

17

Performance QualitySafety

Typical Projectsrsquo

quality and safety

performance is

already better than

cost and schedule

Best Projects are

13-20 percentage

points better but

overall impact is not

as dramatic as cost

Positive and Negative Ratings

for Quality and Safety

18

Organizational Aspects

Owners identify

Project Team as

single most

important

contributing factor

to performance

Single Most Important Factor That

Contributes to Project Performance

19

Organizational Aspects

Early engagement is key aspect of best projects

Timing of Key Stakeholder Engagement (TypicalBest)

Best Performing

Projects 75 engage key

stakeholders before

Schematic Design

Typical Projects 56 donrsquot engage key

stakeholders until after

Schematic Design

20

Organizational Aspects

Team dynamics gaps between best and typical

Percentage Reporting the Highest (44) Team Dynamics Ratings (TypicalBest)

21

Commercial Aspects

Best Value is most

frequent selection

process on best

performing projects

Selection of Key Stakeholder Engagement

22

Commercial Aspects

IPD is most frequent

delivery method on

best performing

projects Not used

on any typical

projects

Top Delivery Methods on

Typical and Best Projects

23

Commercial Aspects

GMP is most

frequent contract type

on best performing

projects

Cost Reimbursable

with Target and

Shared RiskReward

is only used on best

performing projects

Top Contracting Types on

Typical and Best Projects

( with or without shared savings)

24

Operating System Aspects

527 Methods Focused on Schedule Performance

25

Operating System Aspects

527 Methods Focused on CostBudget Performance

26

Operating System Aspects

Top 527 Methods Focused on Team Dynamics

27

Operating System Aspects

Other 6 Methods Focused on Team Dynamics

28

Operating System Aspects

1027 biggest gaps between typical and best projects

29

Most Impactful on Performance

Timing Engage key stakeholders as early as possible

(prior to schematic design)

Team selection Best Value

Form of agreement IPD

Contract type compensation method for key

stakeholders that are contracted to the owner

Guaranteed Maximum Price - or - Cost Reimbursable

with Target and Shared Risk Reward

( with or without shared savings)

30

Most Impactful on Performance

Use (at least) these six highly-rated project team

management and operational methods

ndash Co-location Big Room

ndash Target Value Design

ndash 3D BIM Coordination

ndash ConceptualContinuous Estimating

ndash Visual Management

ndash Last Planner System reg

31

Takeaways

1 Organizational transformations

enable project transformations

2 Earlier engagement requires

different operating skills

3 Project operating system

informs commercial (contract)

32

Impact

What impact do you think lean practices have

on satisfaction

ndash Significant

ndash Moderate

ndash Some

ndash None

ndash Unable to determine

33

Whatrsquos next

34

Goal Over 150 responses

35

Minimum Requirements

Respondent Profile

bull Must be an Owner

bull Knowledgeable about

construction projects at

their organization

bull In last 3 years completed

more than 5 capital

projects

bull Total capital expenditures

more than $10M

Best amp Typical Projects

bull Construction cost of

$10M or more

bull New Construction or

Major Renovation

bull Completed at least one

year but no more than

five years ago

bull In North America

36

Recruiting Owners

bull Survey Link

ndash tinyurlcomLeanConstruction2

bull Call for Participation

ndash Quick overview to be shared with owners

bull Talking Points

ndash For your use in advance of client interactions to prepare you to addresses

key issues and potential questions (eg benefits confidentiality of data)

bull Offline version of Survey

ndash To share with owners to collect project information in advance of taking the

survey

Bevan Mace ndash bmacebalfourbeattyuscom

Steve Jones ndash stevejonesconstructioncom

Page 14: are Owners? - Lean Construction Institute · 2016/5/26  · 5 Sat·is·fac·tion Fulfillment of one’s wishes, expectations, or needs, or the pleasure derived from this. How satisfied

14

Performance CostSchedule

Most Typical

Projects complete

behind schedule

over budget

Cost is improved

more than schedule

on Best Performing

Projects

Variance of Estimated Schedule and Cost

at Construction Start vs Completion

15

Performance Schedule

28 of best projects finish early vs only 9 of typical

Amount of Variance of lsquoOriginal Schedule When Budget Allocatedrsquo vs lsquoFinal Schedulersquo

Complete Behind Original Schedule Complete Ahead of Original Schedule

Best Performing Projects

28 complete ahead of

schedule

(vs 9 of typical)

Typical Projects

28 complete more than

11 behind schedule

(vs 9 of best)

16

Performance Cost

63 of best projects under budget vs only 9 of typical

Amount of Variance of lsquoAllocated Capital Costrsquo vs lsquoFinal Costrsquo

Best Performing

Projects

28 complete

ahead of schedule

Typical Projects

56 complete

behind schedule

Complete Over Allocated Capital Cost Complete Under Allocated Capital Cost

Typical Projects

Half complete over original

allocated capital budget

(vs 15 of best)

Best Performing Projects

63 complete under original

allocated capital budget

(vs 9 of typical)

17

Performance QualitySafety

Typical Projectsrsquo

quality and safety

performance is

already better than

cost and schedule

Best Projects are

13-20 percentage

points better but

overall impact is not

as dramatic as cost

Positive and Negative Ratings

for Quality and Safety

18

Organizational Aspects

Owners identify

Project Team as

single most

important

contributing factor

to performance

Single Most Important Factor That

Contributes to Project Performance

19

Organizational Aspects

Early engagement is key aspect of best projects

Timing of Key Stakeholder Engagement (TypicalBest)

Best Performing

Projects 75 engage key

stakeholders before

Schematic Design

Typical Projects 56 donrsquot engage key

stakeholders until after

Schematic Design

20

Organizational Aspects

Team dynamics gaps between best and typical

Percentage Reporting the Highest (44) Team Dynamics Ratings (TypicalBest)

21

Commercial Aspects

Best Value is most

frequent selection

process on best

performing projects

Selection of Key Stakeholder Engagement

22

Commercial Aspects

IPD is most frequent

delivery method on

best performing

projects Not used

on any typical

projects

Top Delivery Methods on

Typical and Best Projects

23

Commercial Aspects

GMP is most

frequent contract type

on best performing

projects

Cost Reimbursable

with Target and

Shared RiskReward

is only used on best

performing projects

Top Contracting Types on

Typical and Best Projects

( with or without shared savings)

24

Operating System Aspects

527 Methods Focused on Schedule Performance

25

Operating System Aspects

527 Methods Focused on CostBudget Performance

26

Operating System Aspects

Top 527 Methods Focused on Team Dynamics

27

Operating System Aspects

Other 6 Methods Focused on Team Dynamics

28

Operating System Aspects

1027 biggest gaps between typical and best projects

29

Most Impactful on Performance

Timing Engage key stakeholders as early as possible

(prior to schematic design)

Team selection Best Value

Form of agreement IPD

Contract type compensation method for key

stakeholders that are contracted to the owner

Guaranteed Maximum Price - or - Cost Reimbursable

with Target and Shared Risk Reward

( with or without shared savings)

30

Most Impactful on Performance

Use (at least) these six highly-rated project team

management and operational methods

ndash Co-location Big Room

ndash Target Value Design

ndash 3D BIM Coordination

ndash ConceptualContinuous Estimating

ndash Visual Management

ndash Last Planner System reg

31

Takeaways

1 Organizational transformations

enable project transformations

2 Earlier engagement requires

different operating skills

3 Project operating system

informs commercial (contract)

32

Impact

What impact do you think lean practices have

on satisfaction

ndash Significant

ndash Moderate

ndash Some

ndash None

ndash Unable to determine

33

Whatrsquos next

34

Goal Over 150 responses

35

Minimum Requirements

Respondent Profile

bull Must be an Owner

bull Knowledgeable about

construction projects at

their organization

bull In last 3 years completed

more than 5 capital

projects

bull Total capital expenditures

more than $10M

Best amp Typical Projects

bull Construction cost of

$10M or more

bull New Construction or

Major Renovation

bull Completed at least one

year but no more than

five years ago

bull In North America

36

Recruiting Owners

bull Survey Link

ndash tinyurlcomLeanConstruction2

bull Call for Participation

ndash Quick overview to be shared with owners

bull Talking Points

ndash For your use in advance of client interactions to prepare you to addresses

key issues and potential questions (eg benefits confidentiality of data)

bull Offline version of Survey

ndash To share with owners to collect project information in advance of taking the

survey

Bevan Mace ndash bmacebalfourbeattyuscom

Steve Jones ndash stevejonesconstructioncom

Page 15: are Owners? - Lean Construction Institute · 2016/5/26  · 5 Sat·is·fac·tion Fulfillment of one’s wishes, expectations, or needs, or the pleasure derived from this. How satisfied

15

Performance Schedule

28 of best projects finish early vs only 9 of typical

Amount of Variance of lsquoOriginal Schedule When Budget Allocatedrsquo vs lsquoFinal Schedulersquo

Complete Behind Original Schedule Complete Ahead of Original Schedule

Best Performing Projects

28 complete ahead of

schedule

(vs 9 of typical)

Typical Projects

28 complete more than

11 behind schedule

(vs 9 of best)

16

Performance Cost

63 of best projects under budget vs only 9 of typical

Amount of Variance of lsquoAllocated Capital Costrsquo vs lsquoFinal Costrsquo

Best Performing

Projects

28 complete

ahead of schedule

Typical Projects

56 complete

behind schedule

Complete Over Allocated Capital Cost Complete Under Allocated Capital Cost

Typical Projects

Half complete over original

allocated capital budget

(vs 15 of best)

Best Performing Projects

63 complete under original

allocated capital budget

(vs 9 of typical)

17

Performance QualitySafety

Typical Projectsrsquo

quality and safety

performance is

already better than

cost and schedule

Best Projects are

13-20 percentage

points better but

overall impact is not

as dramatic as cost

Positive and Negative Ratings

for Quality and Safety

18

Organizational Aspects

Owners identify

Project Team as

single most

important

contributing factor

to performance

Single Most Important Factor That

Contributes to Project Performance

19

Organizational Aspects

Early engagement is key aspect of best projects

Timing of Key Stakeholder Engagement (TypicalBest)

Best Performing

Projects 75 engage key

stakeholders before

Schematic Design

Typical Projects 56 donrsquot engage key

stakeholders until after

Schematic Design

20

Organizational Aspects

Team dynamics gaps between best and typical

Percentage Reporting the Highest (44) Team Dynamics Ratings (TypicalBest)

21

Commercial Aspects

Best Value is most

frequent selection

process on best

performing projects

Selection of Key Stakeholder Engagement

22

Commercial Aspects

IPD is most frequent

delivery method on

best performing

projects Not used

on any typical

projects

Top Delivery Methods on

Typical and Best Projects

23

Commercial Aspects

GMP is most

frequent contract type

on best performing

projects

Cost Reimbursable

with Target and

Shared RiskReward

is only used on best

performing projects

Top Contracting Types on

Typical and Best Projects

( with or without shared savings)

24

Operating System Aspects

527 Methods Focused on Schedule Performance

25

Operating System Aspects

527 Methods Focused on CostBudget Performance

26

Operating System Aspects

Top 527 Methods Focused on Team Dynamics

27

Operating System Aspects

Other 6 Methods Focused on Team Dynamics

28

Operating System Aspects

1027 biggest gaps between typical and best projects

29

Most Impactful on Performance

Timing Engage key stakeholders as early as possible

(prior to schematic design)

Team selection Best Value

Form of agreement IPD

Contract type compensation method for key

stakeholders that are contracted to the owner

Guaranteed Maximum Price - or - Cost Reimbursable

with Target and Shared Risk Reward

( with or without shared savings)

30

Most Impactful on Performance

Use (at least) these six highly-rated project team

management and operational methods

ndash Co-location Big Room

ndash Target Value Design

ndash 3D BIM Coordination

ndash ConceptualContinuous Estimating

ndash Visual Management

ndash Last Planner System reg

31

Takeaways

1 Organizational transformations

enable project transformations

2 Earlier engagement requires

different operating skills

3 Project operating system

informs commercial (contract)

32

Impact

What impact do you think lean practices have

on satisfaction

ndash Significant

ndash Moderate

ndash Some

ndash None

ndash Unable to determine

33

Whatrsquos next

34

Goal Over 150 responses

35

Minimum Requirements

Respondent Profile

bull Must be an Owner

bull Knowledgeable about

construction projects at

their organization

bull In last 3 years completed

more than 5 capital

projects

bull Total capital expenditures

more than $10M

Best amp Typical Projects

bull Construction cost of

$10M or more

bull New Construction or

Major Renovation

bull Completed at least one

year but no more than

five years ago

bull In North America

36

Recruiting Owners

bull Survey Link

ndash tinyurlcomLeanConstruction2

bull Call for Participation

ndash Quick overview to be shared with owners

bull Talking Points

ndash For your use in advance of client interactions to prepare you to addresses

key issues and potential questions (eg benefits confidentiality of data)

bull Offline version of Survey

ndash To share with owners to collect project information in advance of taking the

survey

Bevan Mace ndash bmacebalfourbeattyuscom

Steve Jones ndash stevejonesconstructioncom

Page 16: are Owners? - Lean Construction Institute · 2016/5/26  · 5 Sat·is·fac·tion Fulfillment of one’s wishes, expectations, or needs, or the pleasure derived from this. How satisfied

16

Performance Cost

63 of best projects under budget vs only 9 of typical

Amount of Variance of lsquoAllocated Capital Costrsquo vs lsquoFinal Costrsquo

Best Performing

Projects

28 complete

ahead of schedule

Typical Projects

56 complete

behind schedule

Complete Over Allocated Capital Cost Complete Under Allocated Capital Cost

Typical Projects

Half complete over original

allocated capital budget

(vs 15 of best)

Best Performing Projects

63 complete under original

allocated capital budget

(vs 9 of typical)

17

Performance QualitySafety

Typical Projectsrsquo

quality and safety

performance is

already better than

cost and schedule

Best Projects are

13-20 percentage

points better but

overall impact is not

as dramatic as cost

Positive and Negative Ratings

for Quality and Safety

18

Organizational Aspects

Owners identify

Project Team as

single most

important

contributing factor

to performance

Single Most Important Factor That

Contributes to Project Performance

19

Organizational Aspects

Early engagement is key aspect of best projects

Timing of Key Stakeholder Engagement (TypicalBest)

Best Performing

Projects 75 engage key

stakeholders before

Schematic Design

Typical Projects 56 donrsquot engage key

stakeholders until after

Schematic Design

20

Organizational Aspects

Team dynamics gaps between best and typical

Percentage Reporting the Highest (44) Team Dynamics Ratings (TypicalBest)

21

Commercial Aspects

Best Value is most

frequent selection

process on best

performing projects

Selection of Key Stakeholder Engagement

22

Commercial Aspects

IPD is most frequent

delivery method on

best performing

projects Not used

on any typical

projects

Top Delivery Methods on

Typical and Best Projects

23

Commercial Aspects

GMP is most

frequent contract type

on best performing

projects

Cost Reimbursable

with Target and

Shared RiskReward

is only used on best

performing projects

Top Contracting Types on

Typical and Best Projects

( with or without shared savings)

24

Operating System Aspects

527 Methods Focused on Schedule Performance

25

Operating System Aspects

527 Methods Focused on CostBudget Performance

26

Operating System Aspects

Top 527 Methods Focused on Team Dynamics

27

Operating System Aspects

Other 6 Methods Focused on Team Dynamics

28

Operating System Aspects

1027 biggest gaps between typical and best projects

29

Most Impactful on Performance

Timing Engage key stakeholders as early as possible

(prior to schematic design)

Team selection Best Value

Form of agreement IPD

Contract type compensation method for key

stakeholders that are contracted to the owner

Guaranteed Maximum Price - or - Cost Reimbursable

with Target and Shared Risk Reward

( with or without shared savings)

30

Most Impactful on Performance

Use (at least) these six highly-rated project team

management and operational methods

ndash Co-location Big Room

ndash Target Value Design

ndash 3D BIM Coordination

ndash ConceptualContinuous Estimating

ndash Visual Management

ndash Last Planner System reg

31

Takeaways

1 Organizational transformations

enable project transformations

2 Earlier engagement requires

different operating skills

3 Project operating system

informs commercial (contract)

32

Impact

What impact do you think lean practices have

on satisfaction

ndash Significant

ndash Moderate

ndash Some

ndash None

ndash Unable to determine

33

Whatrsquos next

34

Goal Over 150 responses

35

Minimum Requirements

Respondent Profile

bull Must be an Owner

bull Knowledgeable about

construction projects at

their organization

bull In last 3 years completed

more than 5 capital

projects

bull Total capital expenditures

more than $10M

Best amp Typical Projects

bull Construction cost of

$10M or more

bull New Construction or

Major Renovation

bull Completed at least one

year but no more than

five years ago

bull In North America

36

Recruiting Owners

bull Survey Link

ndash tinyurlcomLeanConstruction2

bull Call for Participation

ndash Quick overview to be shared with owners

bull Talking Points

ndash For your use in advance of client interactions to prepare you to addresses

key issues and potential questions (eg benefits confidentiality of data)

bull Offline version of Survey

ndash To share with owners to collect project information in advance of taking the

survey

Bevan Mace ndash bmacebalfourbeattyuscom

Steve Jones ndash stevejonesconstructioncom

Page 17: are Owners? - Lean Construction Institute · 2016/5/26  · 5 Sat·is·fac·tion Fulfillment of one’s wishes, expectations, or needs, or the pleasure derived from this. How satisfied

17

Performance QualitySafety

Typical Projectsrsquo

quality and safety

performance is

already better than

cost and schedule

Best Projects are

13-20 percentage

points better but

overall impact is not

as dramatic as cost

Positive and Negative Ratings

for Quality and Safety

18

Organizational Aspects

Owners identify

Project Team as

single most

important

contributing factor

to performance

Single Most Important Factor That

Contributes to Project Performance

19

Organizational Aspects

Early engagement is key aspect of best projects

Timing of Key Stakeholder Engagement (TypicalBest)

Best Performing

Projects 75 engage key

stakeholders before

Schematic Design

Typical Projects 56 donrsquot engage key

stakeholders until after

Schematic Design

20

Organizational Aspects

Team dynamics gaps between best and typical

Percentage Reporting the Highest (44) Team Dynamics Ratings (TypicalBest)

21

Commercial Aspects

Best Value is most

frequent selection

process on best

performing projects

Selection of Key Stakeholder Engagement

22

Commercial Aspects

IPD is most frequent

delivery method on

best performing

projects Not used

on any typical

projects

Top Delivery Methods on

Typical and Best Projects

23

Commercial Aspects

GMP is most

frequent contract type

on best performing

projects

Cost Reimbursable

with Target and

Shared RiskReward

is only used on best

performing projects

Top Contracting Types on

Typical and Best Projects

( with or without shared savings)

24

Operating System Aspects

527 Methods Focused on Schedule Performance

25

Operating System Aspects

527 Methods Focused on CostBudget Performance

26

Operating System Aspects

Top 527 Methods Focused on Team Dynamics

27

Operating System Aspects

Other 6 Methods Focused on Team Dynamics

28

Operating System Aspects

1027 biggest gaps between typical and best projects

29

Most Impactful on Performance

Timing Engage key stakeholders as early as possible

(prior to schematic design)

Team selection Best Value

Form of agreement IPD

Contract type compensation method for key

stakeholders that are contracted to the owner

Guaranteed Maximum Price - or - Cost Reimbursable

with Target and Shared Risk Reward

( with or without shared savings)

30

Most Impactful on Performance

Use (at least) these six highly-rated project team

management and operational methods

ndash Co-location Big Room

ndash Target Value Design

ndash 3D BIM Coordination

ndash ConceptualContinuous Estimating

ndash Visual Management

ndash Last Planner System reg

31

Takeaways

1 Organizational transformations

enable project transformations

2 Earlier engagement requires

different operating skills

3 Project operating system

informs commercial (contract)

32

Impact

What impact do you think lean practices have

on satisfaction

ndash Significant

ndash Moderate

ndash Some

ndash None

ndash Unable to determine

33

Whatrsquos next

34

Goal Over 150 responses

35

Minimum Requirements

Respondent Profile

bull Must be an Owner

bull Knowledgeable about

construction projects at

their organization

bull In last 3 years completed

more than 5 capital

projects

bull Total capital expenditures

more than $10M

Best amp Typical Projects

bull Construction cost of

$10M or more

bull New Construction or

Major Renovation

bull Completed at least one

year but no more than

five years ago

bull In North America

36

Recruiting Owners

bull Survey Link

ndash tinyurlcomLeanConstruction2

bull Call for Participation

ndash Quick overview to be shared with owners

bull Talking Points

ndash For your use in advance of client interactions to prepare you to addresses

key issues and potential questions (eg benefits confidentiality of data)

bull Offline version of Survey

ndash To share with owners to collect project information in advance of taking the

survey

Bevan Mace ndash bmacebalfourbeattyuscom

Steve Jones ndash stevejonesconstructioncom

Page 18: are Owners? - Lean Construction Institute · 2016/5/26  · 5 Sat·is·fac·tion Fulfillment of one’s wishes, expectations, or needs, or the pleasure derived from this. How satisfied

18

Organizational Aspects

Owners identify

Project Team as

single most

important

contributing factor

to performance

Single Most Important Factor That

Contributes to Project Performance

19

Organizational Aspects

Early engagement is key aspect of best projects

Timing of Key Stakeholder Engagement (TypicalBest)

Best Performing

Projects 75 engage key

stakeholders before

Schematic Design

Typical Projects 56 donrsquot engage key

stakeholders until after

Schematic Design

20

Organizational Aspects

Team dynamics gaps between best and typical

Percentage Reporting the Highest (44) Team Dynamics Ratings (TypicalBest)

21

Commercial Aspects

Best Value is most

frequent selection

process on best

performing projects

Selection of Key Stakeholder Engagement

22

Commercial Aspects

IPD is most frequent

delivery method on

best performing

projects Not used

on any typical

projects

Top Delivery Methods on

Typical and Best Projects

23

Commercial Aspects

GMP is most

frequent contract type

on best performing

projects

Cost Reimbursable

with Target and

Shared RiskReward

is only used on best

performing projects

Top Contracting Types on

Typical and Best Projects

( with or without shared savings)

24

Operating System Aspects

527 Methods Focused on Schedule Performance

25

Operating System Aspects

527 Methods Focused on CostBudget Performance

26

Operating System Aspects

Top 527 Methods Focused on Team Dynamics

27

Operating System Aspects

Other 6 Methods Focused on Team Dynamics

28

Operating System Aspects

1027 biggest gaps between typical and best projects

29

Most Impactful on Performance

Timing Engage key stakeholders as early as possible

(prior to schematic design)

Team selection Best Value

Form of agreement IPD

Contract type compensation method for key

stakeholders that are contracted to the owner

Guaranteed Maximum Price - or - Cost Reimbursable

with Target and Shared Risk Reward

( with or without shared savings)

30

Most Impactful on Performance

Use (at least) these six highly-rated project team

management and operational methods

ndash Co-location Big Room

ndash Target Value Design

ndash 3D BIM Coordination

ndash ConceptualContinuous Estimating

ndash Visual Management

ndash Last Planner System reg

31

Takeaways

1 Organizational transformations

enable project transformations

2 Earlier engagement requires

different operating skills

3 Project operating system

informs commercial (contract)

32

Impact

What impact do you think lean practices have

on satisfaction

ndash Significant

ndash Moderate

ndash Some

ndash None

ndash Unable to determine

33

Whatrsquos next

34

Goal Over 150 responses

35

Minimum Requirements

Respondent Profile

bull Must be an Owner

bull Knowledgeable about

construction projects at

their organization

bull In last 3 years completed

more than 5 capital

projects

bull Total capital expenditures

more than $10M

Best amp Typical Projects

bull Construction cost of

$10M or more

bull New Construction or

Major Renovation

bull Completed at least one

year but no more than

five years ago

bull In North America

36

Recruiting Owners

bull Survey Link

ndash tinyurlcomLeanConstruction2

bull Call for Participation

ndash Quick overview to be shared with owners

bull Talking Points

ndash For your use in advance of client interactions to prepare you to addresses

key issues and potential questions (eg benefits confidentiality of data)

bull Offline version of Survey

ndash To share with owners to collect project information in advance of taking the

survey

Bevan Mace ndash bmacebalfourbeattyuscom

Steve Jones ndash stevejonesconstructioncom

Page 19: are Owners? - Lean Construction Institute · 2016/5/26  · 5 Sat·is·fac·tion Fulfillment of one’s wishes, expectations, or needs, or the pleasure derived from this. How satisfied

19

Organizational Aspects

Early engagement is key aspect of best projects

Timing of Key Stakeholder Engagement (TypicalBest)

Best Performing

Projects 75 engage key

stakeholders before

Schematic Design

Typical Projects 56 donrsquot engage key

stakeholders until after

Schematic Design

20

Organizational Aspects

Team dynamics gaps between best and typical

Percentage Reporting the Highest (44) Team Dynamics Ratings (TypicalBest)

21

Commercial Aspects

Best Value is most

frequent selection

process on best

performing projects

Selection of Key Stakeholder Engagement

22

Commercial Aspects

IPD is most frequent

delivery method on

best performing

projects Not used

on any typical

projects

Top Delivery Methods on

Typical and Best Projects

23

Commercial Aspects

GMP is most

frequent contract type

on best performing

projects

Cost Reimbursable

with Target and

Shared RiskReward

is only used on best

performing projects

Top Contracting Types on

Typical and Best Projects

( with or without shared savings)

24

Operating System Aspects

527 Methods Focused on Schedule Performance

25

Operating System Aspects

527 Methods Focused on CostBudget Performance

26

Operating System Aspects

Top 527 Methods Focused on Team Dynamics

27

Operating System Aspects

Other 6 Methods Focused on Team Dynamics

28

Operating System Aspects

1027 biggest gaps between typical and best projects

29

Most Impactful on Performance

Timing Engage key stakeholders as early as possible

(prior to schematic design)

Team selection Best Value

Form of agreement IPD

Contract type compensation method for key

stakeholders that are contracted to the owner

Guaranteed Maximum Price - or - Cost Reimbursable

with Target and Shared Risk Reward

( with or without shared savings)

30

Most Impactful on Performance

Use (at least) these six highly-rated project team

management and operational methods

ndash Co-location Big Room

ndash Target Value Design

ndash 3D BIM Coordination

ndash ConceptualContinuous Estimating

ndash Visual Management

ndash Last Planner System reg

31

Takeaways

1 Organizational transformations

enable project transformations

2 Earlier engagement requires

different operating skills

3 Project operating system

informs commercial (contract)

32

Impact

What impact do you think lean practices have

on satisfaction

ndash Significant

ndash Moderate

ndash Some

ndash None

ndash Unable to determine

33

Whatrsquos next

34

Goal Over 150 responses

35

Minimum Requirements

Respondent Profile

bull Must be an Owner

bull Knowledgeable about

construction projects at

their organization

bull In last 3 years completed

more than 5 capital

projects

bull Total capital expenditures

more than $10M

Best amp Typical Projects

bull Construction cost of

$10M or more

bull New Construction or

Major Renovation

bull Completed at least one

year but no more than

five years ago

bull In North America

36

Recruiting Owners

bull Survey Link

ndash tinyurlcomLeanConstruction2

bull Call for Participation

ndash Quick overview to be shared with owners

bull Talking Points

ndash For your use in advance of client interactions to prepare you to addresses

key issues and potential questions (eg benefits confidentiality of data)

bull Offline version of Survey

ndash To share with owners to collect project information in advance of taking the

survey

Bevan Mace ndash bmacebalfourbeattyuscom

Steve Jones ndash stevejonesconstructioncom

Page 20: are Owners? - Lean Construction Institute · 2016/5/26  · 5 Sat·is·fac·tion Fulfillment of one’s wishes, expectations, or needs, or the pleasure derived from this. How satisfied

20

Organizational Aspects

Team dynamics gaps between best and typical

Percentage Reporting the Highest (44) Team Dynamics Ratings (TypicalBest)

21

Commercial Aspects

Best Value is most

frequent selection

process on best

performing projects

Selection of Key Stakeholder Engagement

22

Commercial Aspects

IPD is most frequent

delivery method on

best performing

projects Not used

on any typical

projects

Top Delivery Methods on

Typical and Best Projects

23

Commercial Aspects

GMP is most

frequent contract type

on best performing

projects

Cost Reimbursable

with Target and

Shared RiskReward

is only used on best

performing projects

Top Contracting Types on

Typical and Best Projects

( with or without shared savings)

24

Operating System Aspects

527 Methods Focused on Schedule Performance

25

Operating System Aspects

527 Methods Focused on CostBudget Performance

26

Operating System Aspects

Top 527 Methods Focused on Team Dynamics

27

Operating System Aspects

Other 6 Methods Focused on Team Dynamics

28

Operating System Aspects

1027 biggest gaps between typical and best projects

29

Most Impactful on Performance

Timing Engage key stakeholders as early as possible

(prior to schematic design)

Team selection Best Value

Form of agreement IPD

Contract type compensation method for key

stakeholders that are contracted to the owner

Guaranteed Maximum Price - or - Cost Reimbursable

with Target and Shared Risk Reward

( with or without shared savings)

30

Most Impactful on Performance

Use (at least) these six highly-rated project team

management and operational methods

ndash Co-location Big Room

ndash Target Value Design

ndash 3D BIM Coordination

ndash ConceptualContinuous Estimating

ndash Visual Management

ndash Last Planner System reg

31

Takeaways

1 Organizational transformations

enable project transformations

2 Earlier engagement requires

different operating skills

3 Project operating system

informs commercial (contract)

32

Impact

What impact do you think lean practices have

on satisfaction

ndash Significant

ndash Moderate

ndash Some

ndash None

ndash Unable to determine

33

Whatrsquos next

34

Goal Over 150 responses

35

Minimum Requirements

Respondent Profile

bull Must be an Owner

bull Knowledgeable about

construction projects at

their organization

bull In last 3 years completed

more than 5 capital

projects

bull Total capital expenditures

more than $10M

Best amp Typical Projects

bull Construction cost of

$10M or more

bull New Construction or

Major Renovation

bull Completed at least one

year but no more than

five years ago

bull In North America

36

Recruiting Owners

bull Survey Link

ndash tinyurlcomLeanConstruction2

bull Call for Participation

ndash Quick overview to be shared with owners

bull Talking Points

ndash For your use in advance of client interactions to prepare you to addresses

key issues and potential questions (eg benefits confidentiality of data)

bull Offline version of Survey

ndash To share with owners to collect project information in advance of taking the

survey

Bevan Mace ndash bmacebalfourbeattyuscom

Steve Jones ndash stevejonesconstructioncom

Page 21: are Owners? - Lean Construction Institute · 2016/5/26  · 5 Sat·is·fac·tion Fulfillment of one’s wishes, expectations, or needs, or the pleasure derived from this. How satisfied

21

Commercial Aspects

Best Value is most

frequent selection

process on best

performing projects

Selection of Key Stakeholder Engagement

22

Commercial Aspects

IPD is most frequent

delivery method on

best performing

projects Not used

on any typical

projects

Top Delivery Methods on

Typical and Best Projects

23

Commercial Aspects

GMP is most

frequent contract type

on best performing

projects

Cost Reimbursable

with Target and

Shared RiskReward

is only used on best

performing projects

Top Contracting Types on

Typical and Best Projects

( with or without shared savings)

24

Operating System Aspects

527 Methods Focused on Schedule Performance

25

Operating System Aspects

527 Methods Focused on CostBudget Performance

26

Operating System Aspects

Top 527 Methods Focused on Team Dynamics

27

Operating System Aspects

Other 6 Methods Focused on Team Dynamics

28

Operating System Aspects

1027 biggest gaps between typical and best projects

29

Most Impactful on Performance

Timing Engage key stakeholders as early as possible

(prior to schematic design)

Team selection Best Value

Form of agreement IPD

Contract type compensation method for key

stakeholders that are contracted to the owner

Guaranteed Maximum Price - or - Cost Reimbursable

with Target and Shared Risk Reward

( with or without shared savings)

30

Most Impactful on Performance

Use (at least) these six highly-rated project team

management and operational methods

ndash Co-location Big Room

ndash Target Value Design

ndash 3D BIM Coordination

ndash ConceptualContinuous Estimating

ndash Visual Management

ndash Last Planner System reg

31

Takeaways

1 Organizational transformations

enable project transformations

2 Earlier engagement requires

different operating skills

3 Project operating system

informs commercial (contract)

32

Impact

What impact do you think lean practices have

on satisfaction

ndash Significant

ndash Moderate

ndash Some

ndash None

ndash Unable to determine

33

Whatrsquos next

34

Goal Over 150 responses

35

Minimum Requirements

Respondent Profile

bull Must be an Owner

bull Knowledgeable about

construction projects at

their organization

bull In last 3 years completed

more than 5 capital

projects

bull Total capital expenditures

more than $10M

Best amp Typical Projects

bull Construction cost of

$10M or more

bull New Construction or

Major Renovation

bull Completed at least one

year but no more than

five years ago

bull In North America

36

Recruiting Owners

bull Survey Link

ndash tinyurlcomLeanConstruction2

bull Call for Participation

ndash Quick overview to be shared with owners

bull Talking Points

ndash For your use in advance of client interactions to prepare you to addresses

key issues and potential questions (eg benefits confidentiality of data)

bull Offline version of Survey

ndash To share with owners to collect project information in advance of taking the

survey

Bevan Mace ndash bmacebalfourbeattyuscom

Steve Jones ndash stevejonesconstructioncom

Page 22: are Owners? - Lean Construction Institute · 2016/5/26  · 5 Sat·is·fac·tion Fulfillment of one’s wishes, expectations, or needs, or the pleasure derived from this. How satisfied

22

Commercial Aspects

IPD is most frequent

delivery method on

best performing

projects Not used

on any typical

projects

Top Delivery Methods on

Typical and Best Projects

23

Commercial Aspects

GMP is most

frequent contract type

on best performing

projects

Cost Reimbursable

with Target and

Shared RiskReward

is only used on best

performing projects

Top Contracting Types on

Typical and Best Projects

( with or without shared savings)

24

Operating System Aspects

527 Methods Focused on Schedule Performance

25

Operating System Aspects

527 Methods Focused on CostBudget Performance

26

Operating System Aspects

Top 527 Methods Focused on Team Dynamics

27

Operating System Aspects

Other 6 Methods Focused on Team Dynamics

28

Operating System Aspects

1027 biggest gaps between typical and best projects

29

Most Impactful on Performance

Timing Engage key stakeholders as early as possible

(prior to schematic design)

Team selection Best Value

Form of agreement IPD

Contract type compensation method for key

stakeholders that are contracted to the owner

Guaranteed Maximum Price - or - Cost Reimbursable

with Target and Shared Risk Reward

( with or without shared savings)

30

Most Impactful on Performance

Use (at least) these six highly-rated project team

management and operational methods

ndash Co-location Big Room

ndash Target Value Design

ndash 3D BIM Coordination

ndash ConceptualContinuous Estimating

ndash Visual Management

ndash Last Planner System reg

31

Takeaways

1 Organizational transformations

enable project transformations

2 Earlier engagement requires

different operating skills

3 Project operating system

informs commercial (contract)

32

Impact

What impact do you think lean practices have

on satisfaction

ndash Significant

ndash Moderate

ndash Some

ndash None

ndash Unable to determine

33

Whatrsquos next

34

Goal Over 150 responses

35

Minimum Requirements

Respondent Profile

bull Must be an Owner

bull Knowledgeable about

construction projects at

their organization

bull In last 3 years completed

more than 5 capital

projects

bull Total capital expenditures

more than $10M

Best amp Typical Projects

bull Construction cost of

$10M or more

bull New Construction or

Major Renovation

bull Completed at least one

year but no more than

five years ago

bull In North America

36

Recruiting Owners

bull Survey Link

ndash tinyurlcomLeanConstruction2

bull Call for Participation

ndash Quick overview to be shared with owners

bull Talking Points

ndash For your use in advance of client interactions to prepare you to addresses

key issues and potential questions (eg benefits confidentiality of data)

bull Offline version of Survey

ndash To share with owners to collect project information in advance of taking the

survey

Bevan Mace ndash bmacebalfourbeattyuscom

Steve Jones ndash stevejonesconstructioncom

Page 23: are Owners? - Lean Construction Institute · 2016/5/26  · 5 Sat·is·fac·tion Fulfillment of one’s wishes, expectations, or needs, or the pleasure derived from this. How satisfied

23

Commercial Aspects

GMP is most

frequent contract type

on best performing

projects

Cost Reimbursable

with Target and

Shared RiskReward

is only used on best

performing projects

Top Contracting Types on

Typical and Best Projects

( with or without shared savings)

24

Operating System Aspects

527 Methods Focused on Schedule Performance

25

Operating System Aspects

527 Methods Focused on CostBudget Performance

26

Operating System Aspects

Top 527 Methods Focused on Team Dynamics

27

Operating System Aspects

Other 6 Methods Focused on Team Dynamics

28

Operating System Aspects

1027 biggest gaps between typical and best projects

29

Most Impactful on Performance

Timing Engage key stakeholders as early as possible

(prior to schematic design)

Team selection Best Value

Form of agreement IPD

Contract type compensation method for key

stakeholders that are contracted to the owner

Guaranteed Maximum Price - or - Cost Reimbursable

with Target and Shared Risk Reward

( with or without shared savings)

30

Most Impactful on Performance

Use (at least) these six highly-rated project team

management and operational methods

ndash Co-location Big Room

ndash Target Value Design

ndash 3D BIM Coordination

ndash ConceptualContinuous Estimating

ndash Visual Management

ndash Last Planner System reg

31

Takeaways

1 Organizational transformations

enable project transformations

2 Earlier engagement requires

different operating skills

3 Project operating system

informs commercial (contract)

32

Impact

What impact do you think lean practices have

on satisfaction

ndash Significant

ndash Moderate

ndash Some

ndash None

ndash Unable to determine

33

Whatrsquos next

34

Goal Over 150 responses

35

Minimum Requirements

Respondent Profile

bull Must be an Owner

bull Knowledgeable about

construction projects at

their organization

bull In last 3 years completed

more than 5 capital

projects

bull Total capital expenditures

more than $10M

Best amp Typical Projects

bull Construction cost of

$10M or more

bull New Construction or

Major Renovation

bull Completed at least one

year but no more than

five years ago

bull In North America

36

Recruiting Owners

bull Survey Link

ndash tinyurlcomLeanConstruction2

bull Call for Participation

ndash Quick overview to be shared with owners

bull Talking Points

ndash For your use in advance of client interactions to prepare you to addresses

key issues and potential questions (eg benefits confidentiality of data)

bull Offline version of Survey

ndash To share with owners to collect project information in advance of taking the

survey

Bevan Mace ndash bmacebalfourbeattyuscom

Steve Jones ndash stevejonesconstructioncom

Page 24: are Owners? - Lean Construction Institute · 2016/5/26  · 5 Sat·is·fac·tion Fulfillment of one’s wishes, expectations, or needs, or the pleasure derived from this. How satisfied

24

Operating System Aspects

527 Methods Focused on Schedule Performance

25

Operating System Aspects

527 Methods Focused on CostBudget Performance

26

Operating System Aspects

Top 527 Methods Focused on Team Dynamics

27

Operating System Aspects

Other 6 Methods Focused on Team Dynamics

28

Operating System Aspects

1027 biggest gaps between typical and best projects

29

Most Impactful on Performance

Timing Engage key stakeholders as early as possible

(prior to schematic design)

Team selection Best Value

Form of agreement IPD

Contract type compensation method for key

stakeholders that are contracted to the owner

Guaranteed Maximum Price - or - Cost Reimbursable

with Target and Shared Risk Reward

( with or without shared savings)

30

Most Impactful on Performance

Use (at least) these six highly-rated project team

management and operational methods

ndash Co-location Big Room

ndash Target Value Design

ndash 3D BIM Coordination

ndash ConceptualContinuous Estimating

ndash Visual Management

ndash Last Planner System reg

31

Takeaways

1 Organizational transformations

enable project transformations

2 Earlier engagement requires

different operating skills

3 Project operating system

informs commercial (contract)

32

Impact

What impact do you think lean practices have

on satisfaction

ndash Significant

ndash Moderate

ndash Some

ndash None

ndash Unable to determine

33

Whatrsquos next

34

Goal Over 150 responses

35

Minimum Requirements

Respondent Profile

bull Must be an Owner

bull Knowledgeable about

construction projects at

their organization

bull In last 3 years completed

more than 5 capital

projects

bull Total capital expenditures

more than $10M

Best amp Typical Projects

bull Construction cost of

$10M or more

bull New Construction or

Major Renovation

bull Completed at least one

year but no more than

five years ago

bull In North America

36

Recruiting Owners

bull Survey Link

ndash tinyurlcomLeanConstruction2

bull Call for Participation

ndash Quick overview to be shared with owners

bull Talking Points

ndash For your use in advance of client interactions to prepare you to addresses

key issues and potential questions (eg benefits confidentiality of data)

bull Offline version of Survey

ndash To share with owners to collect project information in advance of taking the

survey

Bevan Mace ndash bmacebalfourbeattyuscom

Steve Jones ndash stevejonesconstructioncom

Page 25: are Owners? - Lean Construction Institute · 2016/5/26  · 5 Sat·is·fac·tion Fulfillment of one’s wishes, expectations, or needs, or the pleasure derived from this. How satisfied

25

Operating System Aspects

527 Methods Focused on CostBudget Performance

26

Operating System Aspects

Top 527 Methods Focused on Team Dynamics

27

Operating System Aspects

Other 6 Methods Focused on Team Dynamics

28

Operating System Aspects

1027 biggest gaps between typical and best projects

29

Most Impactful on Performance

Timing Engage key stakeholders as early as possible

(prior to schematic design)

Team selection Best Value

Form of agreement IPD

Contract type compensation method for key

stakeholders that are contracted to the owner

Guaranteed Maximum Price - or - Cost Reimbursable

with Target and Shared Risk Reward

( with or without shared savings)

30

Most Impactful on Performance

Use (at least) these six highly-rated project team

management and operational methods

ndash Co-location Big Room

ndash Target Value Design

ndash 3D BIM Coordination

ndash ConceptualContinuous Estimating

ndash Visual Management

ndash Last Planner System reg

31

Takeaways

1 Organizational transformations

enable project transformations

2 Earlier engagement requires

different operating skills

3 Project operating system

informs commercial (contract)

32

Impact

What impact do you think lean practices have

on satisfaction

ndash Significant

ndash Moderate

ndash Some

ndash None

ndash Unable to determine

33

Whatrsquos next

34

Goal Over 150 responses

35

Minimum Requirements

Respondent Profile

bull Must be an Owner

bull Knowledgeable about

construction projects at

their organization

bull In last 3 years completed

more than 5 capital

projects

bull Total capital expenditures

more than $10M

Best amp Typical Projects

bull Construction cost of

$10M or more

bull New Construction or

Major Renovation

bull Completed at least one

year but no more than

five years ago

bull In North America

36

Recruiting Owners

bull Survey Link

ndash tinyurlcomLeanConstruction2

bull Call for Participation

ndash Quick overview to be shared with owners

bull Talking Points

ndash For your use in advance of client interactions to prepare you to addresses

key issues and potential questions (eg benefits confidentiality of data)

bull Offline version of Survey

ndash To share with owners to collect project information in advance of taking the

survey

Bevan Mace ndash bmacebalfourbeattyuscom

Steve Jones ndash stevejonesconstructioncom

Page 26: are Owners? - Lean Construction Institute · 2016/5/26  · 5 Sat·is·fac·tion Fulfillment of one’s wishes, expectations, or needs, or the pleasure derived from this. How satisfied

26

Operating System Aspects

Top 527 Methods Focused on Team Dynamics

27

Operating System Aspects

Other 6 Methods Focused on Team Dynamics

28

Operating System Aspects

1027 biggest gaps between typical and best projects

29

Most Impactful on Performance

Timing Engage key stakeholders as early as possible

(prior to schematic design)

Team selection Best Value

Form of agreement IPD

Contract type compensation method for key

stakeholders that are contracted to the owner

Guaranteed Maximum Price - or - Cost Reimbursable

with Target and Shared Risk Reward

( with or without shared savings)

30

Most Impactful on Performance

Use (at least) these six highly-rated project team

management and operational methods

ndash Co-location Big Room

ndash Target Value Design

ndash 3D BIM Coordination

ndash ConceptualContinuous Estimating

ndash Visual Management

ndash Last Planner System reg

31

Takeaways

1 Organizational transformations

enable project transformations

2 Earlier engagement requires

different operating skills

3 Project operating system

informs commercial (contract)

32

Impact

What impact do you think lean practices have

on satisfaction

ndash Significant

ndash Moderate

ndash Some

ndash None

ndash Unable to determine

33

Whatrsquos next

34

Goal Over 150 responses

35

Minimum Requirements

Respondent Profile

bull Must be an Owner

bull Knowledgeable about

construction projects at

their organization

bull In last 3 years completed

more than 5 capital

projects

bull Total capital expenditures

more than $10M

Best amp Typical Projects

bull Construction cost of

$10M or more

bull New Construction or

Major Renovation

bull Completed at least one

year but no more than

five years ago

bull In North America

36

Recruiting Owners

bull Survey Link

ndash tinyurlcomLeanConstruction2

bull Call for Participation

ndash Quick overview to be shared with owners

bull Talking Points

ndash For your use in advance of client interactions to prepare you to addresses

key issues and potential questions (eg benefits confidentiality of data)

bull Offline version of Survey

ndash To share with owners to collect project information in advance of taking the

survey

Bevan Mace ndash bmacebalfourbeattyuscom

Steve Jones ndash stevejonesconstructioncom

Page 27: are Owners? - Lean Construction Institute · 2016/5/26  · 5 Sat·is·fac·tion Fulfillment of one’s wishes, expectations, or needs, or the pleasure derived from this. How satisfied

27

Operating System Aspects

Other 6 Methods Focused on Team Dynamics

28

Operating System Aspects

1027 biggest gaps between typical and best projects

29

Most Impactful on Performance

Timing Engage key stakeholders as early as possible

(prior to schematic design)

Team selection Best Value

Form of agreement IPD

Contract type compensation method for key

stakeholders that are contracted to the owner

Guaranteed Maximum Price - or - Cost Reimbursable

with Target and Shared Risk Reward

( with or without shared savings)

30

Most Impactful on Performance

Use (at least) these six highly-rated project team

management and operational methods

ndash Co-location Big Room

ndash Target Value Design

ndash 3D BIM Coordination

ndash ConceptualContinuous Estimating

ndash Visual Management

ndash Last Planner System reg

31

Takeaways

1 Organizational transformations

enable project transformations

2 Earlier engagement requires

different operating skills

3 Project operating system

informs commercial (contract)

32

Impact

What impact do you think lean practices have

on satisfaction

ndash Significant

ndash Moderate

ndash Some

ndash None

ndash Unable to determine

33

Whatrsquos next

34

Goal Over 150 responses

35

Minimum Requirements

Respondent Profile

bull Must be an Owner

bull Knowledgeable about

construction projects at

their organization

bull In last 3 years completed

more than 5 capital

projects

bull Total capital expenditures

more than $10M

Best amp Typical Projects

bull Construction cost of

$10M or more

bull New Construction or

Major Renovation

bull Completed at least one

year but no more than

five years ago

bull In North America

36

Recruiting Owners

bull Survey Link

ndash tinyurlcomLeanConstruction2

bull Call for Participation

ndash Quick overview to be shared with owners

bull Talking Points

ndash For your use in advance of client interactions to prepare you to addresses

key issues and potential questions (eg benefits confidentiality of data)

bull Offline version of Survey

ndash To share with owners to collect project information in advance of taking the

survey

Bevan Mace ndash bmacebalfourbeattyuscom

Steve Jones ndash stevejonesconstructioncom

Page 28: are Owners? - Lean Construction Institute · 2016/5/26  · 5 Sat·is·fac·tion Fulfillment of one’s wishes, expectations, or needs, or the pleasure derived from this. How satisfied

28

Operating System Aspects

1027 biggest gaps between typical and best projects

29

Most Impactful on Performance

Timing Engage key stakeholders as early as possible

(prior to schematic design)

Team selection Best Value

Form of agreement IPD

Contract type compensation method for key

stakeholders that are contracted to the owner

Guaranteed Maximum Price - or - Cost Reimbursable

with Target and Shared Risk Reward

( with or without shared savings)

30

Most Impactful on Performance

Use (at least) these six highly-rated project team

management and operational methods

ndash Co-location Big Room

ndash Target Value Design

ndash 3D BIM Coordination

ndash ConceptualContinuous Estimating

ndash Visual Management

ndash Last Planner System reg

31

Takeaways

1 Organizational transformations

enable project transformations

2 Earlier engagement requires

different operating skills

3 Project operating system

informs commercial (contract)

32

Impact

What impact do you think lean practices have

on satisfaction

ndash Significant

ndash Moderate

ndash Some

ndash None

ndash Unable to determine

33

Whatrsquos next

34

Goal Over 150 responses

35

Minimum Requirements

Respondent Profile

bull Must be an Owner

bull Knowledgeable about

construction projects at

their organization

bull In last 3 years completed

more than 5 capital

projects

bull Total capital expenditures

more than $10M

Best amp Typical Projects

bull Construction cost of

$10M or more

bull New Construction or

Major Renovation

bull Completed at least one

year but no more than

five years ago

bull In North America

36

Recruiting Owners

bull Survey Link

ndash tinyurlcomLeanConstruction2

bull Call for Participation

ndash Quick overview to be shared with owners

bull Talking Points

ndash For your use in advance of client interactions to prepare you to addresses

key issues and potential questions (eg benefits confidentiality of data)

bull Offline version of Survey

ndash To share with owners to collect project information in advance of taking the

survey

Bevan Mace ndash bmacebalfourbeattyuscom

Steve Jones ndash stevejonesconstructioncom

Page 29: are Owners? - Lean Construction Institute · 2016/5/26  · 5 Sat·is·fac·tion Fulfillment of one’s wishes, expectations, or needs, or the pleasure derived from this. How satisfied

29

Most Impactful on Performance

Timing Engage key stakeholders as early as possible

(prior to schematic design)

Team selection Best Value

Form of agreement IPD

Contract type compensation method for key

stakeholders that are contracted to the owner

Guaranteed Maximum Price - or - Cost Reimbursable

with Target and Shared Risk Reward

( with or without shared savings)

30

Most Impactful on Performance

Use (at least) these six highly-rated project team

management and operational methods

ndash Co-location Big Room

ndash Target Value Design

ndash 3D BIM Coordination

ndash ConceptualContinuous Estimating

ndash Visual Management

ndash Last Planner System reg

31

Takeaways

1 Organizational transformations

enable project transformations

2 Earlier engagement requires

different operating skills

3 Project operating system

informs commercial (contract)

32

Impact

What impact do you think lean practices have

on satisfaction

ndash Significant

ndash Moderate

ndash Some

ndash None

ndash Unable to determine

33

Whatrsquos next

34

Goal Over 150 responses

35

Minimum Requirements

Respondent Profile

bull Must be an Owner

bull Knowledgeable about

construction projects at

their organization

bull In last 3 years completed

more than 5 capital

projects

bull Total capital expenditures

more than $10M

Best amp Typical Projects

bull Construction cost of

$10M or more

bull New Construction or

Major Renovation

bull Completed at least one

year but no more than

five years ago

bull In North America

36

Recruiting Owners

bull Survey Link

ndash tinyurlcomLeanConstruction2

bull Call for Participation

ndash Quick overview to be shared with owners

bull Talking Points

ndash For your use in advance of client interactions to prepare you to addresses

key issues and potential questions (eg benefits confidentiality of data)

bull Offline version of Survey

ndash To share with owners to collect project information in advance of taking the

survey

Bevan Mace ndash bmacebalfourbeattyuscom

Steve Jones ndash stevejonesconstructioncom

Page 30: are Owners? - Lean Construction Institute · 2016/5/26  · 5 Sat·is·fac·tion Fulfillment of one’s wishes, expectations, or needs, or the pleasure derived from this. How satisfied

30

Most Impactful on Performance

Use (at least) these six highly-rated project team

management and operational methods

ndash Co-location Big Room

ndash Target Value Design

ndash 3D BIM Coordination

ndash ConceptualContinuous Estimating

ndash Visual Management

ndash Last Planner System reg

31

Takeaways

1 Organizational transformations

enable project transformations

2 Earlier engagement requires

different operating skills

3 Project operating system

informs commercial (contract)

32

Impact

What impact do you think lean practices have

on satisfaction

ndash Significant

ndash Moderate

ndash Some

ndash None

ndash Unable to determine

33

Whatrsquos next

34

Goal Over 150 responses

35

Minimum Requirements

Respondent Profile

bull Must be an Owner

bull Knowledgeable about

construction projects at

their organization

bull In last 3 years completed

more than 5 capital

projects

bull Total capital expenditures

more than $10M

Best amp Typical Projects

bull Construction cost of

$10M or more

bull New Construction or

Major Renovation

bull Completed at least one

year but no more than

five years ago

bull In North America

36

Recruiting Owners

bull Survey Link

ndash tinyurlcomLeanConstruction2

bull Call for Participation

ndash Quick overview to be shared with owners

bull Talking Points

ndash For your use in advance of client interactions to prepare you to addresses

key issues and potential questions (eg benefits confidentiality of data)

bull Offline version of Survey

ndash To share with owners to collect project information in advance of taking the

survey

Bevan Mace ndash bmacebalfourbeattyuscom

Steve Jones ndash stevejonesconstructioncom

Page 31: are Owners? - Lean Construction Institute · 2016/5/26  · 5 Sat·is·fac·tion Fulfillment of one’s wishes, expectations, or needs, or the pleasure derived from this. How satisfied

31

Takeaways

1 Organizational transformations

enable project transformations

2 Earlier engagement requires

different operating skills

3 Project operating system

informs commercial (contract)

32

Impact

What impact do you think lean practices have

on satisfaction

ndash Significant

ndash Moderate

ndash Some

ndash None

ndash Unable to determine

33

Whatrsquos next

34

Goal Over 150 responses

35

Minimum Requirements

Respondent Profile

bull Must be an Owner

bull Knowledgeable about

construction projects at

their organization

bull In last 3 years completed

more than 5 capital

projects

bull Total capital expenditures

more than $10M

Best amp Typical Projects

bull Construction cost of

$10M or more

bull New Construction or

Major Renovation

bull Completed at least one

year but no more than

five years ago

bull In North America

36

Recruiting Owners

bull Survey Link

ndash tinyurlcomLeanConstruction2

bull Call for Participation

ndash Quick overview to be shared with owners

bull Talking Points

ndash For your use in advance of client interactions to prepare you to addresses

key issues and potential questions (eg benefits confidentiality of data)

bull Offline version of Survey

ndash To share with owners to collect project information in advance of taking the

survey

Bevan Mace ndash bmacebalfourbeattyuscom

Steve Jones ndash stevejonesconstructioncom

Page 32: are Owners? - Lean Construction Institute · 2016/5/26  · 5 Sat·is·fac·tion Fulfillment of one’s wishes, expectations, or needs, or the pleasure derived from this. How satisfied

32

Impact

What impact do you think lean practices have

on satisfaction

ndash Significant

ndash Moderate

ndash Some

ndash None

ndash Unable to determine

33

Whatrsquos next

34

Goal Over 150 responses

35

Minimum Requirements

Respondent Profile

bull Must be an Owner

bull Knowledgeable about

construction projects at

their organization

bull In last 3 years completed

more than 5 capital

projects

bull Total capital expenditures

more than $10M

Best amp Typical Projects

bull Construction cost of

$10M or more

bull New Construction or

Major Renovation

bull Completed at least one

year but no more than

five years ago

bull In North America

36

Recruiting Owners

bull Survey Link

ndash tinyurlcomLeanConstruction2

bull Call for Participation

ndash Quick overview to be shared with owners

bull Talking Points

ndash For your use in advance of client interactions to prepare you to addresses

key issues and potential questions (eg benefits confidentiality of data)

bull Offline version of Survey

ndash To share with owners to collect project information in advance of taking the

survey

Bevan Mace ndash bmacebalfourbeattyuscom

Steve Jones ndash stevejonesconstructioncom

Page 33: are Owners? - Lean Construction Institute · 2016/5/26  · 5 Sat·is·fac·tion Fulfillment of one’s wishes, expectations, or needs, or the pleasure derived from this. How satisfied

33

Whatrsquos next

34

Goal Over 150 responses

35

Minimum Requirements

Respondent Profile

bull Must be an Owner

bull Knowledgeable about

construction projects at

their organization

bull In last 3 years completed

more than 5 capital

projects

bull Total capital expenditures

more than $10M

Best amp Typical Projects

bull Construction cost of

$10M or more

bull New Construction or

Major Renovation

bull Completed at least one

year but no more than

five years ago

bull In North America

36

Recruiting Owners

bull Survey Link

ndash tinyurlcomLeanConstruction2

bull Call for Participation

ndash Quick overview to be shared with owners

bull Talking Points

ndash For your use in advance of client interactions to prepare you to addresses

key issues and potential questions (eg benefits confidentiality of data)

bull Offline version of Survey

ndash To share with owners to collect project information in advance of taking the

survey

Bevan Mace ndash bmacebalfourbeattyuscom

Steve Jones ndash stevejonesconstructioncom

Page 34: are Owners? - Lean Construction Institute · 2016/5/26  · 5 Sat·is·fac·tion Fulfillment of one’s wishes, expectations, or needs, or the pleasure derived from this. How satisfied

34

Goal Over 150 responses

35

Minimum Requirements

Respondent Profile

bull Must be an Owner

bull Knowledgeable about

construction projects at

their organization

bull In last 3 years completed

more than 5 capital

projects

bull Total capital expenditures

more than $10M

Best amp Typical Projects

bull Construction cost of

$10M or more

bull New Construction or

Major Renovation

bull Completed at least one

year but no more than

five years ago

bull In North America

36

Recruiting Owners

bull Survey Link

ndash tinyurlcomLeanConstruction2

bull Call for Participation

ndash Quick overview to be shared with owners

bull Talking Points

ndash For your use in advance of client interactions to prepare you to addresses

key issues and potential questions (eg benefits confidentiality of data)

bull Offline version of Survey

ndash To share with owners to collect project information in advance of taking the

survey

Bevan Mace ndash bmacebalfourbeattyuscom

Steve Jones ndash stevejonesconstructioncom

Page 35: are Owners? - Lean Construction Institute · 2016/5/26  · 5 Sat·is·fac·tion Fulfillment of one’s wishes, expectations, or needs, or the pleasure derived from this. How satisfied

35

Minimum Requirements

Respondent Profile

bull Must be an Owner

bull Knowledgeable about

construction projects at

their organization

bull In last 3 years completed

more than 5 capital

projects

bull Total capital expenditures

more than $10M

Best amp Typical Projects

bull Construction cost of

$10M or more

bull New Construction or

Major Renovation

bull Completed at least one

year but no more than

five years ago

bull In North America

36

Recruiting Owners

bull Survey Link

ndash tinyurlcomLeanConstruction2

bull Call for Participation

ndash Quick overview to be shared with owners

bull Talking Points

ndash For your use in advance of client interactions to prepare you to addresses

key issues and potential questions (eg benefits confidentiality of data)

bull Offline version of Survey

ndash To share with owners to collect project information in advance of taking the

survey

Bevan Mace ndash bmacebalfourbeattyuscom

Steve Jones ndash stevejonesconstructioncom

Page 36: are Owners? - Lean Construction Institute · 2016/5/26  · 5 Sat·is·fac·tion Fulfillment of one’s wishes, expectations, or needs, or the pleasure derived from this. How satisfied

36

Recruiting Owners

bull Survey Link

ndash tinyurlcomLeanConstruction2

bull Call for Participation

ndash Quick overview to be shared with owners

bull Talking Points

ndash For your use in advance of client interactions to prepare you to addresses

key issues and potential questions (eg benefits confidentiality of data)

bull Offline version of Survey

ndash To share with owners to collect project information in advance of taking the

survey

Bevan Mace ndash bmacebalfourbeattyuscom

Steve Jones ndash stevejonesconstructioncom