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BLOG: Choosing a delivery strategy for best value outcomes

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by JOC Digital Media

Kathleen Lausman, the former deputy minister of community and government services for Nunavut, delivered a session at the Lean Construction Institute - Canada's conference in Calgary on April 7 on delivery strategies for best value outcomes.
BLOG: Choosing a delivery strategy for best value outcomes

Certain strategies cause repeatable outcomes. Lean project behaviours such as trust, transparency, collaboration and respect also result in these outcomes.

There are three steps in selection in a lean project delivery model, Lausman said. The first step is to define project needs and goals, or in other words, establishing the conditions of satisfaction for all parties.

At this point, she said, it is important to organize internally for your project. You should determine the owner project structure, as well as the responsibility and authority of the project manager. It's also important to determine the scope of the management process as well as the decision making process.

"Each project is unique," she added.

Needs may include the budget, the amount of risk, user requirements, geotechnical and environmental reports, sustainability targets and  the project's impact on day to day operations.

Goals include keeping the project on budget, on schedule, while meeting quality and sustainability requirements. The life cycle of the project should also be maximized.

Lausman, referring to a research project on lean construction, said that 70 per cent of projects delivered late had low levels of team integration, and 60 per cent of projects that delivered on budget had average or better levels of group cohesion. Lausman added that 70 per cent of change orders resulted in design changes and the other 30 per cent were from scope creep.

The "big room" is a form of lean intervention which forces stakeholders to come together, but Lausman also explained the "last planner" system, which creates a predictable work flow in both design and construction.

Early involvement in the planning process increases value, Lausman said. The more transparency and trust established, the better behavior you'll get from your team, Lausman said. An open book for design and construction risks and mitigation makes the process more transparent.

The third step selecting a delivery strategy. At this point it is important to identify legal and policy constraints such as procurement law. One should also compare delivery decisions to delivery models, and define the involvement of both the general contractor/general manager and key trades.

No single strategy works for all owners, facility types or projects, Lausman said.

In the selection process, Lausman said, it's important to have an interview process for not only design but all key stakeholders, and also to speak to the behaviors expected for the project.

Project delivery models can include, design/bid/build, which has the least potential for project of success as teams become more complex. But in smaller projects it can work, Lausman said. P3 and design build have greater chances for success, but the best model for project success is Lean Integrated Project Delivery.

But you can improve the chances of success for all these models, Lausman said, by using lean principles within them.

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