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ECIs 21stAnnual Conference 2010

& Global Construction Summit

Construction Project Management

Best Practice 2010

- A Springboard for the Next Decade

24 & 25 June 2010

Marriott Rive Gauche Hotel, Paris

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Productivity, Supply Chain

Relationships and Lean

Construction

Vaughan BurnandImmediate Past Chairman

Constructing Excellence UK

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My role

Lead and chair the sessions associated with the

project track Provide the link between the delegate community andthe Summit partners

Determine the agenda for future development andcollaboration between the event partners,

participating companies and organisations Identify and capture leading edge project

management practice

Identify the current project management issues for

construction professionals Determine where there may be scope for future

collaboration

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Agenda

Productivity

Supply Chain Relationships

Lean Construction

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PFI

Design and Build

Drawing and Spec

Traditional B of Q

Design and Manage

Management Contract

Prime Cost

Construction Management

High Risk High Return

Low Risk Low Return

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Shape of Construction

8% of GDP

But.............50% in contracts under 250k invalue

If you can walk and talk at the same time youcan start a contracting company.

Contractors only directly employ 25-33% of

the work force Transient nature of the work

Migrant and foreign workforce

Skills

Different Cultures

Conditions

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Work Winning

Getting Paid

for Work Done

Work Doing

Construction only has 3 parts

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Planning Feasibility Design Development Construction

Cost of

ChangeSaving

Project Programme

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Planning Feasibility Design Development Construction

Cost of

ChangeSaving

Project Programme

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Piping cost = 155,000

Equivalent length = 700m Piping cost = 116,000

Equivalent length = 494m

Early involvement Why?

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Time

Bid

Preferred bidder

Initial

GMP

Incentivised

constructionFinal

cost

Final GMP

Functionalityoptimised

through VM andcosts

reduced through VECosts reduced

through CI

activities

Historical Reference Cost

Lead in

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Lean Construction Guiding Principles

Base your management decisions on a long-term

philosophy, even at the expense of short- term financial

goals

Continuously identify and eliminate wastes to achieve

process flow and balance of work

Get quality right first time

Standardised tasks and processes are the foundationfor continuous improvement and employee

empowerment

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Use visual control so no problems are hidden

Adopt appropriate new technologies that support your

people, processes and values

Develop exceptional people and leaders whothoroughly understand and can teach others

Respect your extended network or partners and

suppliers by challenging them and helping them toimprove

Lean Construction Guiding Principles

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Go see for yourselfto thoroughly understand the

situation

Make decisions slowly by consensus, thoroughly

considering all options; implement decisions rapidly

Become a learning organisation through relentless

reflection and continuous improvement

Take ownership of risk, and manage risk, retaining

the appropriate level of control

Lean Construction Guiding Principles

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So what would lean look like on your project?

Supply Chain

Management

Accreditation

Target Costing

Incentives

Project facilitator PMs are too busy

Early appointment

Collaborative planning Up front and Daily

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European Construction Institute

www.europeanconstruction.eu