What's wrong with DoD Construction Cost Estimating?
Peter Cholakis
Improve facilities repair, renovation, maintenance, and new build outcomes and reduce costs
What's wrong with DOD Construction Cost Estimating?
Attempts to improve traditional cost started as early as 1965. Despite this little measurable improvement has been accomplish with respect to DoD construction cost visibility and transparency.
The reason is not due to the lack of available solutions, but rather a lack of leadership. Leadership turnover is the central problem, with the only constant being a middle layer of management whose sole priority is preserving the status quo. "Radical change" in traditional cost estimating methods is sorely needed, involving a directly link to, and integration with construction planning, procurement, and project delivery. Until this is done, the use of "national average cost data", construction cost indexes, and area cost factors and silo-based inefficient processes will continue to drive rampant economic and environmental waste.
Construction cost management systems to efficiently accomplish numerous repair, renovation, maintenance, and new build projects faced by real property owners must be dynamic, proactive and able to support on-demand decision-making processes.
Driving best value outcomes requires full financial and technical visibility and transparency among all participants and stakeholders, and the associated mitigation of the effects of uncertainty.
With applied leadership and readily available integrated LEAN construction planning, procurement, and project delivery tools and support services are readily available best value on-time and on-budget outcomes could be the norm.