In traditional contracts, there are ways to deal with this, but
they become cumbersome.
An example such as this where by spending more design time
we reduce construction time and construction cost.
We would have to have on a lump sum bid, we would have to have some back charges
from the owner to the CM, possibly down to the tres and the sub-subs.
The architect and engineers have to put together their
additional service proposals, work that through.
It gets cumbersome.
It's not easy to make money flow across the boundaries
in a traditional project delivery.
And that also includes flowing not just from constructor to designer and back and
forth, but also up to the owner if there's stuff that the owner Or to be providing,
because they can do it at a lower cost.
This is the fundamental reason why integrated project delivery and
the integrated form of agreement was necessary.
Because traditional project delivery and
forms of agreement do not make it easy for money to flow.
With Integrated Project Delivery, which is a key component of lean, but
not necessarily essential.
With Integrated Project Delivery, we are able for
the three key components, owner Instructor,
designer, to agree as a team what's the best way to spend the project budget?
Not just the construction budget, but the hard and soft costs, and
the monies can flow where they can do the most good so the owner gets the biggest
amount of project objective for the lowest amount of construction and total cost.
So lean project delivery is a project management project,
it's strictly unnecessary time, effort and cost and planning and
design of construction of capital projects to deliver what the owner values.
The end of the day, although it's a mutualization of interest,
it's essential that what the owner values in my definition of lean project
delivery is what gets delivered.
Cuz remember those stepping curves, the owners have expectations,
if we're gonna help that owner achieve those expectations,
they've got to get what they value.