Construction as a System
Construction’s long, steady decline has turned into something far worse – as revealed by the alarming and unsustainable hospital cost data. The data science that makes construction’s problems and the causes known and measurable, enables the same for the solutions. Now that we can know and measure the problems, we can solve the problems.
Building Catalyst cost modeling interface on laptop
The solutions require the replacement of our cacophony of silos with a symbiotic system – from early planning to occupancy. Construction as a System (CaaS) does this with the same management philosophy, systems thinking, and win-win business strategies that helped create the Toyota Production System. All we need now are motivated leaders working together within a unified system.
featured research

The Data Knows the Problems And their Causes

National macroeconomic data research shows a strong correlation between the decades of excessive cost escalation and the growth of negotiated first tier (CM, IPD, etc.) contracting. A deeper, microeconomic data research of 35 hospitals shows an even stronger correlation between negotiated second tier (trade and prefabrication) contracting and a more recent extraordinary surge in hospital costs.

These articles provide a comprehensive analysis of the problems, their causes, and a roadmap for construction reform. They identify misaligned incentives and the lack of knowledge as the central causes, and a system of profound knowledge as the central solution.
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solving the problem

The case for construction as a system

In a matter of a few days, you will be able to experience the power of profound knowledge and automation to transform construction - starting in the planning, early design and contracting stages - on a project of your choosing.

In essence, Construction as a System (CaaS) is W. Edwards Deming’s System of Profound Knowledge applied to construction. Thesystem is established by networking the critical cause-and-effect relationshipsacross the entire construction ecosystem—from the owner’s business case to thefinal cost outcomes.

If you are a leader, your role-specific adoption process is described in these pages, as applicable:
 Owner, Owner Advisor, Design Builder, Architect, Builder

Construction as a System requires and starts with intelligent automation made possible with incentives that are aligned with value-based contracting.

Intelligent Automation System (IAS)

Replaces the current fragmented processes, data, and technologies with a highly integrated and automated objective knowledge system.

Value-based Contracting System (VCS)

Eliminates the financial motivation to increase waste time and cost by replacing the prevailing cost-plus and billable-hour framework with one that is value-based.

Continue the Case

Indiana receiver Fernando Mendoza making a diving catch with the words Efficiency and Excellence in Execution

Featured Article

The Case for Construction as a System

One of history’s greatest sports stories shows how an inefficient, poorly executed system can be transformed rapidly into a highly efficient and operationally excellent one. It just takes leadership.

Read the full case
the VISION AND ultimate end game

Construction as a System – The FIVE STAGES

Once you’ve experienced the power of profound knowledge, automation, and aligned incentives during the planning stages, you’ll be motivated and equipped to continue your journey of creating value and driving process improvement.

Stages 1 and 2 focus on program efficiency and construction (hard) cost effectiveness by driving greater efficiency and eliminating the top layers of waste. Stages 3, 4, and 5 will naturally evolve toward continuous improvement, targeting deeper layers of waste to further reduce construction costs, total project costs, and total cost of ownership.

Planning and Budgeting

Apply impartial market data to rapidly and reliably plan, program, budget and optimize project scope and cost.

Value-Based Contracting

Align facility management, consulting, design, and construction compensation to reward value improvement and increase return-on-effort.

From Stage 2, proceed to Stage 3 or Stage 4

Design and Construction

Integrate, automate, and optimize design and construction support efforts via structured data standards and processes across all organizations.

Total Project Development

Incorporate all soft cost to the integrated automated system to optimize the total project (total first cost) development.

Total Cost of Ownership

Incorporate all facility life cycle aspects to optimize the total cost of ownership (TCO) expressed as Net Present Value.

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start the conversation

We are pleased to schedule a web conference to learn more about your needs and explore a pilot initiative. You can also select and complete the “Free Project Analysis” form. In just a few days you’ll experience the profound knowledge firsthand.

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Thank you. Our team will contact you to select a project, learn about your goals, and outline the next steps for your complimentary analysis.
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