Comments on: Why is construction so backward?

By: construction bidding

construction bidding — Sun, 06 Jul 2008 23:45:58 +0000

construction bidding…

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By: Chauncey

Chauncey — Tue, 25 Dec 2007 07:53:08 +0000

Thank you all for the comments and for the encouragement on this topic. I will add and extend before too long.
Have a great new year each and every one of you!

By: Maximus

Maximus — Thu, 20 Dec 2007 12:39:41 +0000

I would like to see a continuation of the topic

By: Robert Wilson

Robert Wilson — Wed, 12 Sep 2007 14:30:27 +0000

The concept of value at any moment should include some strong associations with the “what are we trying to accomplish together”. The concept of value, to be measured, seems to me a complex nest of concepts. There is the money which we can easily count. There is the timing which we can just as easily count. There are the changes that we can easily count and combine with the counting of the money and the time. There are far more concepts that are part of the nested Value concept that some traditions might tell us are UnKnown an Unknowable. These “softer” things are where value really is – in us together and that is probably why we don’t spend much time on them – it is deemed by many as too philosophical. Maybe this elusive assessment of value is part of the cause of backwardness in industry. I think it is safe to say that the backwardness not only exists in Construction, but in many other industrial places where we are trying to make life happen. Much work here that puts us at the center and doesn’t try to make Value a thing that is just seen and touched.

Bob

By: David Green

David Green — Wed, 05 Sep 2007 23:15:10 +0000

I work for the NSW Govt. and our approach to our construction suppliers attempts to deal with some of these problems. We pre-qualify our suppliers into two panels: ‘best practice’ and ‘the rest’. We get quarterly performance reports on all projects, with the scores being used to guage contractor quality and capability. Lower scores mean fewer tender opportunities. We use selected tender panels, not open tenders, so we know the capability of our tenderers. We also use a cooperative form of contract (GC21: check it out at: http://www.managingprocurement.commerce.nsw.gov.au/system/index_contract_forms_gc21.doc
Using this form of contract we’ve seen a huge reduction in contract disputes and better on time performance.

By: Chauncey

Chauncey — Thu, 30 Aug 2007 16:36:18 +0000

To David and Bob:

Thank you very much for commenting! We (Greg and I) like the spirit and direction of your comments, and have some questions for you. How would you help the industry understand what you mean by “value”? In the background of your comments, are you thinking of the “Design-Build Model” for understanding the overall process of conception-design-construction? If we were going to prepare ourselves to intervene in the industry, to address its “backwardness,” what would you recommend? Finally, have you read the book, and if so, what do you think of it?

By: Robert Wilson

Robert Wilson — Mon, 20 Aug 2007 20:19:44 +0000

It would be quite a thing to actually measure “value”.

By: Bob Wells

Bob Wells — Tue, 14 Aug 2007 19:31:52 +0000

I concur with David on the cost aspect.

By: David Schmaltz

David Schmaltz — Tue, 14 Aug 2007 18:41:08 +0000

Why is construction so backward? Because the industry insists upon it! It’s not connected to market forces. And works hard to stay as disconnected from them as possible. It both smothers under and insists upon regulation. This encourages focusing upon satisfying letter rather than spirit. And leaves little room for anything innovative.

Blind bidding encourages rigidity. Cost, rather than value focus encourages managing as if these were expenses rather than investments. We judge goodness by comparing actual to expected cost, not value to actual cost.

It also insists upon adversarial relationships, as if these would keep everyone honest and everything above-board. It seems to encourage extended games of liar’s poker instead.