How to Fix a Broken Budget? | lean-lab: "
October 19, 2016
Murray Guy
At the tender opening there were no smiles as the lowest bid was $2.2M over on a $7.5 budget. To determine if we could fix the BROKEN BUDGET we assembled the team and quickly determined that the wood structure was the main issue.
Our contracting team were able to save $1.5M by changing to a concrete structure and found another $100k in value management alternatives. The balance of $600k was taken out of the $750k contingency. This left only $150k to deliver a $8.2M project and $50k of this was needed for environmental cleanup.
October 19, 2016
Murray Guy
At the tender opening there were no smiles as the lowest bid was $2.2M over on a $7.5 budget. To determine if we could fix the BROKEN BUDGET we assembled the team and quickly determined that the wood structure was the main issue.
Our contracting team were able to save $1.5M by changing to a concrete structure and found another $100k in value management alternatives. The balance of $600k was taken out of the $750k contingency. This left only $150k to deliver a $8.2M project and $50k of this was needed for environmental cleanup.
Can a challenging LEED Gold project be delivered with a $100k Contingency?
This project is included as one our LEAN case studies as it demonstrated WHY Lean Project Delivery can be applied at any stage of a project and HOW it can be effective delivering projects to budget with low contingencies. With the right team we not only fixed a Broken Budget but also proceeded to deliver a Saskatchewan’s first LEED project with a $100k contingency. When the TEAM committed to delivering the project they knew there was no more money and worked to deliver an amazing project for the target cost with minimal change orders.
'via Blog this'
This project is included as one our LEAN case studies as it demonstrated WHY Lean Project Delivery can be applied at any stage of a project and HOW it can be effective delivering projects to budget with low contingencies. With the right team we not only fixed a Broken Budget but also proceeded to deliver a Saskatchewan’s first LEED project with a $100k contingency. When the TEAM committed to delivering the project they knew there was no more money and worked to deliver an amazing project for the target cost with minimal change orders.
'via Blog this'
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