Tuesday, June 23, 2009

How do we measure and market value in an IPD environment?

Welcome to the Collaborative Revolution!

Adding value is the most important consequence of using BIM and Lean Construction processes to delivery in an integrated environment and you cannot delivery in an integrated environment if you are not operating as a member of an integrated or collaborative team. Further, integrated or collaborative agreements are critical to the creation of integrated or collaborative teams because such agreements enable such teams to add value to the project.

Integrated Project Delivery is superior to traditional project delivery methods because it adds value to the facility or infrastructure from the owner's perspective, makes the design professionals' services more valuable to the owner - and other team members - and increases the value of the constructor's services to the owner, and other team members. The increase in value of a particular facility is manifested in lower costs, higher quality, faster completion and a myriad of other metrics.

Wow. Value is really important isn't? Well.... yes it is. Especially to owners, aka customers / consumers of planning, design, construction and maintenance services delivered by members of the AEC Industry.

The reality is it sometimes difficult to define certain terms and we often resort to circular definitions - as reflected in the opening paragraphs of this post - to define such terms. It especially difficult to define value in the context of evolving business processes. Below I'm linking to an article that argues the only definition of value that really matters is the value of the product being sold. The author argues, in part, that:

Value is the ultimate determiner of a company's profitability, viability, and future. A company can make a lot of mistakes, but if it offers substantial value, the market and distributors can be quite forgiving. No amount of hype, excitement, trips, cars, dream houses, cruises, or even money will overcome poor value, nor will they sustain a company or your business for the long term. Long term success and growth flow only from products that are a good value.

The Preeminence of Value

Click the link and read the whole thing.

Keep these principles in mind as you discuss "value" in the context of IPD, BIM and Lean and how you - and other integrated team members - deliver "value" to the owner and to each other on your next project. Integrated Project Delivery should be viewed as an interlocking set of collaborative tools designed to add value to the product - i.e. the facility / infrastructure - the collaborative or integrated team is planning, designing, construction, operation and maintaining.

Email: James.Salmon@CollaborativeCR.com
Phone: 859-912-7747 / 859-441-6033
Skype: JameswithCCR
Web: CollaborativeConstruction.com
Blog: CollaborativeConstruction.BlogSpot.com

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