Monday, February 13, 2012

A new procurement model is needed


The ENR article linked below reiterates the need to modernize procurement of planning, design and construction services in a way that will enable owners of infrastructure to leverage intelligent and fully functional digital assets in operations and maintenance over time.  I wonder if any tools exist that would enable an institutional owner to form, train and deploying integrated teams capable of planning, designing and constructing infrastructure in an integrated built environment and handing over a fully functional and integrated data set to the owner fur use in operations and maintenance?

Design-Bid-Build isn't working is it?

New procurement models - including Design-Build, CM at Risk, and Public Private Partnerships (P3) - have been deployed in recent years with varying degrees of success.  Each of these procurement models has improved certain aspects of the process, but none has proven entirely satisfactory.  Reliance on traditional legal instruments that force key stakeholders to operate in silos remain a key feature of each of these procurement models.

Integrated Project Delivery (IPD), especially when combined with an effective Building Information Modeling (BIM)  implementation plan may enable institutional owners to procure infrastructure more efficiently and in a manner which will allow those institutional owners to effectively operate and maintain such infrastructure overtime.  Neither IPD nor BIM represent silver bullets for all that ails the industry.  However, the new lean business processes associated with effective deployment of these tools may force key stakeholders to develop more effective business models.

At Collaborative Construction we continue to believe the key is a new legal framework that supports and enables BIM on the one hand and lean construction processes on the other, with IPD supported by BIM, lean and a keystone legal agreement.  To achieve success on behalf of institutional owners we must look beyond single projects and develop a procurement strategy that supports and enable IPD, BIM and lean processes.

Engineering and construction (E&C) is one of the world's largest industry sectors. It accounts for 9% of U.S. gross domestic product and more than 11% globally. Today's projects are larger and more complex than ever, yet, compared to other sectors, construction productivity has lagged since 1970. Cost overruns, unanticipated risks and schedule slippages are still too common. Why is this, and what can be done to change it?
The excerpt above comes from Robert Prieto's ENR Viewpoint article titled "Engineering-Construction Needs a New Model".  Mr. Prieto is correct and providers of complex planning design and construction services, like his company Fluor, need to reach out to institutional owners to tackle the problem he describes.

For those interested, Collaborative Construction is ready to help.

Welcome to the Collaborative Revolution!
James L. Salmon, Esq.
Collaborative Construction
300 Pike Street
Cincinnati, Ohio 45202
Office 513-721-5672
Fax 513-562-4388
Cell 512-630-4446
JamesLSalmon@gmailcom
Collaborative Construction Website
Sustainable Land Development International

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