1. TITLE
Subtitle

2. When project risk looks like this:
Everyone can stay comfortable in their silos.
Everyone feels like they are in control.

3. Sooner or later your risk on a project looks like this…

4. Procurement Award to lowest compliant bidder.
Assumption: Vendor will do exactly what we tell them to do, at the lowest cost.
Outcome: Vendor is rewarded for cutting corners and profits on our errors.
Experts see their work as valuable, and are not attracted to cutting corners or poor end-products.

5. Legal Contract (often standard form) written by ourselves.
Assumption: Contract will give us control over the vendor’s activities.
Outcome: Vendor sees the contract as one-sided and possibly hostile. They are disempowered, and do not take ownership of the work. When risks materialize, this setup discourages collaboration.
Experts own their work, and will seek arrangements that provide them the freedom to succeed.

6. Project Management Project Manager directs the work.
Assumption: The Project Manager must control the vendor at all times.
Outcome: The Project Manager must micro-manage to be successful, and thereby assumes more risk.
Experts know their work, manage risk well, and despise being micro-managed.

7. Results Change order rate of 14%+
Although functionally complete in time for September, substantially completion certificate was issued in December.
Three separate liens were contemplated (none perfected).
Hidden financial and human cost of time lost. Losses accumulate against this project, and also against other concurrent and future projects.

8. Experts:
Experts see their work as valuable, and are not attracted to cutting corners or poor end-products.
Experts own their work, and will seek arrangements that provide them the freedom to succeed.
Experts know their work, manage risk well, and despise being micro-managed.

9. Win-Win Thinking is Collaborating with Experts
PROCUREMENT Experts: Use logical deduction to remove the risk of bias.
LEGAL Experts: Use mutually beneficial agreements to create collaborative relationships.
Project Management Experts: Organize other experts so they can mitigate risk and create value.

10. Alignment of Expertise creates Value
We mitigate risk best when we are all aligned to perform as together as experts.

11. 1st BVBM Project at Dal Excavation & Soil Remediation
Dal internal comparison with a recent excavation project
Note: this was the low bidder on the BVBM project!
Performance Criteria
Recent Non-BV
1st BVBM Project
# of change orders 4
Cost Impacts
11.6%
-5%
Schedule Impacts
3.6 weeks delay
3.0 weeks early
Owner Satisfaction
41%
100%

12. Proposal Differentiation
Range of Evaluation Scores

13. Integrating Procurement & Operations
Total # of Construction Projects 16
Best Value was also the Lowest Cost
44%
Awarded to the Lowest Cost
50%
Award vs. Market
-4.1%
Total Award vs. Total Budget
-14.3%

14. Project Results -80% -- +19% Performance Area Baseline BVBM+ Impact
Total Change Orders
+7-9%*
+1.5%
-80%
Schedule Delays
60 days*
-1.4% --
Owner Satisfaction
79%**
94%
+19%
* All Dal Minor Constr. projects from FY 2013 – FY 2015
** Based on 33 recent projects from Dalhousie PMs
+BVBM: first 6 project close outs

15. Building Organizational Expertise
# of BVBM Projects
Personnel Involvement
*Current projection for Year 3 activities

16. Collaboration across Silos
Rapid Expansion
Launching
Launching
# of BVBM Projects Implemented

17. Please stop by the ASU Booth!
Mike Drane
Procurement Director
Dalhousie University
Brian Lines
Assistant Professor
University of Kansas
Jeff Sawyer
Director
Strategic Engagements
Arizona State Univ.
Ian Wagschal
Asst. Director
FM Minor Projects
Dalhousie University