Lean LeadershipPreconstructionLean Culture BuildingLean Design

Roadmap to Save $1 Million per Project

In a previous post, we examined why a Navigant survey of One Million RFI’s found that the average RFI costs $1,371 just to process, and the average project has 17.2 RFI’s per Million dollars. If you missed that post, you can FIND IT HERE.

We started with the question “How can I install what I didn’t design and don’t understand?” The answer, the Solution is relatively simple. Save a million dollars by understanding what to install because you helped design it. Use Integrated Project Delivery (IPD) as your contracting method, a Big Room as your venue, and Target Value Delivery (TVD) as your process to integrate the entire team in the designing and the building.

Our colleague James Pease offers a DETAILED CASE STUDY OF $100 MILLION PROJECT, which used IPD, a Big Room and TVD as well as Last Planner System® and completed 10 weeks ahead of the original contract schedule for construction and opened for business 3 months ahead of the original target date. The final cost was below the original Estimated Maximum Price, even when accounting for added scope.  A bonus of $585,000 was paid out to the consolidated IPD at-risk parties (the designer, GC and major trades), which was split based on their pro rata share of the pool (percentage of project costs). 100% of the $14M owner contingency was returned and deployed to fund additional capital projects.

The solution is in front of us. Use the CASE STUDY AS YOUR ROAD MAP.

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