LCI OVERVIEW & LEAN IN CONTRACTS GMIT MARCH deliver projects better, faster, together

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1 LCI OVERVIEW & LEAN IN CONTRACTS GMIT MARCH 2018

2 Presentation Overview Overview of Lean Construction Ireland Who we are and What we do Core Values, Vision, Objectives Contact LCI Lean In Contracts LCI Workstream Lean in Contracts Current State Lean in Contracts Gap Analysis Lean in Contracts Future State Current Progress Contact LCI

3 Overview of Lean Construction Ireland

4 Lean Construction Ireland Overview WHO WE ARE An all-island, independent, and voluntary not-for-profit association who believe that Lean Thinking & Practices can enable and sustain enhanced effectiveness, efficiency, productivity, and profitability for the Irish Construction Industry. WHAT WE DO Lean Construction Ireland leads a community of learning and practice that promotes the application of Lean Thinking & Practices throughout the Irish Construction Sector so as to realise value-add for all stakeholders in the value chain

5 Lean Construction Ireland Overview CORE VALUES Collaboration. Leadership. Teamwork. Commitment. Knowledge. Innovation. Integrity. VISION Deliver Projects Better, Faster, Together OBJECTIVES Promote the application of Lean Thinking & Practices in the Irish AEC sector. Develop a national network of members committed to the application of Lean Thinking & Practices. Challenge the status quo of current project thinking and delivery methods. Advance amongst all stakeholders the business case for Lean Construction knowledge and skills.

6 Contact LCI TWITTER.COM/LCI_IRELAND

7 Lean In Contracts

8 Lean In Contracts Workgroup Lean Contracts was identified as a priority theme as part of LCI Vision This is a Priority Theme based on the constituent members of the LCI recognizing a need for contracts that enable and promote a Lean approach, enable greater productivity, reduce disputes, reduce waste, reduce time over-runs, are more collaborative and provide for better Project outcomes for all parties. Cross industry sub-team within LCI formed as workgroup Participants from Academia, Engineering, Public Sector, Contractors & Clients Team examined the Current State and desired Future State of Lean in Contracts Team then conducted a Gap Analysis and identified near term and longer term actions to seek to deliver Future State between 2017 and 2020

9 LEAN IN CONTRACTS (CURRENT STATE ) Lean mentioned in some contracts (primarily private sector) Lean is referred to rather than being a measure of performance Lean is used in some pre-qualifications (primarily private sector) Limited client knowledge of Lean and how this should be adopted: As part of the pre-qualification process Within contracts (implementation and benefits realisation) Clients are key as they need to drive the need for Lean

10 LEAN IN CONTRACTS (GAP ANALYSIS EXTRACT) 2017 / / / 2020 CONTRACT MODEL: Evaluate existing collaborative contracts for use. Engage with external legal to establish best Lean enabling Contract Models for Ireland Construction Market CONTRACT MODEL: Seek input from CIF, RIAI, IEI etc to Lean Contract requirements and wordings Identify and promote early adopter projects as pilots CONTRACT MODEL: Point projects in direction of best practice contracts available for incorporating Lean in Contracts and seeing those being adopted by clients in public and private sectors MEASURE: Look to case study known collaborative projects Evaluate Lean Scorecards available for best practice to facilitate self assessment. Initiate KPI development suitable for Ireland const. MEASURE: Assess case-study outcomes for client, contractor, subs. Determine measures of performance and benchmarks in Lean in Contracts. MEASURE: Lean in Contracts used as a measure of performance and reward. SET GOALS: Define desired outcomes for client, engineer, contractors, subs. Contract terms that define project success rather than look at rare past failures. SET GOALS: Target to have clients and supply chain expecting Lean in Contracts and being used as a differentiator within the procurement process. SET GOALS: Leaps of Faith for Client (sharing control) and Contractor (sharing risk) are much less daunting. Set continuous improvement Lean in Contracts goals.

11 LEAN IN CONTRACTS (FUTURE STATE) Contracts that embrace Lean thinking, principles and behaviours Lean contracts that are proven in use (for both Public and Private sectors) Contracts that promote collaboration, risk sharing and culture change (non-adversarial) Lean in contracts used as a measure of performance Lean in contracts includes and is relevant to client, contractors and sub-contractors

12 LEAN IN CONTRACTS (CURRENT PROGRESS) Evaluating various contract models in use in Ireland and Internationally regarding their ability to incorporate Lean, promote collaboration, risk sharing and culture change (IFOA, RIAI, FIDIC, NEC4 Alliance etc) Looking at contract types used in Public, FDI, Commercial, Local Authority, Home Building etc Discussing experiences of lean in contracts with various projects in Ireland and UK Onboarding additional team members to the workgroup Working on Lean in Contracts stream for LCI conference Nov 2018

13 Contact LCI TWITTER.COM/LCI_IRELAND