Construction Business Owner, May 2007

Lean construction is about thinking lean in order to accomplish more with less and in less time, but more importantly, getting the job done in ways that provide greater value to the client by delivering exactly what the client wants. Lean construction starts with value as defined by the client, but goes further by eliminating waste in the construction process.

Clemson Professor Roger Liska’s study on construction productivity estimated construction productivity at 40 percent. It’s not surprising that the construction industry’s productivity isn’t what it should be, but it’s time for the construction industry to make changes. When any industry, not just construction, has implemented lean thinking, productivity has been seen to double virtually over night

Increased Value

A contactor increases the value offered by first defining the project from the client’s perspective. This requires a change in the contractor’s attitude. Usually contractors believe they are responsible for responding to the client’s stated demands as described in the plans and specs or in the technical discussions with the client on a design-build project. This passive approach leaves much of the client’s requirements undefined because it only focuses on the bricks and mortar aspects of the project.

There is very little difference in technical performance among high performing contractors. For example, if the plans call for 3,000-pound concrete, all the contractors will provide 3,000-pound concrete. Poor quality contractors aren’t a threat to quality performing contractors. The bigger problems are when contractors worry only about following the plans and specs—only following the direction and nothing more.

If contractors want to act like the experts, they need to take a more proactive approach. I define a client as: "Someone under the protection of." This definition requires a paradigm shift. Think about it. How long would you keep your attorney, your CPA or your financial planner if you didn’t think they were protecting you? So why should construction clients keep their contractors if those contractors aren’t protecting them?

This means contractors must act as advisors. But too many attorneys advise their clients not to do that because they might be held responsible. That position is ridiculous because the contractor is paid for his/her expertise. Then again, maybe that’s why profit margins have declined because contractors are only following directions and providing a commodity. If you disagree, consider your response to your doctor, if he said, “I agree, you’re sick. So what do you want me to do?” Sounds silly doesn’t it? But, it’s just as silly when contractors refuse to use their expertise.

Instead, contractors need to increase the services and relationships they have with their clients. I’m not referring to a relationship built by taking a client to a ball game or on hunting trips, but a relationship based on intimate involvement in a client’s situation. High performing contractors do a great job on construction; they help their clients find the best solutions for their situation. In other words, the contractor helps the client operate this business more efficiently. This is important because the amount of value a contractor can deliver on the physical building is limited, but the amount of value the contractor can provide a client on his/her ongoing operations is virtually limitless.

If the contractor speaks the client’s language and understands the client’s problems, then he/she can provide real solutions for the client. The value of these solutions will make the contractor’s performance priceless.