Here at Stimson Contracting we are constantly evaluating how to improve our processes and adhere to the “Best Practices” of the construction industry. Our number one priority is to provide our customers with the best products and service possible. You may have some questions as to what “Best Practices” may be and how our dedication to you make a difference in the construction of your pole building, horse barn, airplane hangar or enclosed arena in the Spokane Washington Area.
We will dedicate a series of posts addressing the Best Practices in the construction industry. We will start with the concept of “Procurement”.
What is Best Practice?
Best practices is defined as ‘the policy, systems and procedures that, at any given time, are generally regarded by peers as the practice that delivers optimal outcome, such that they are worthy of adoption’.
Best Practice is the knowledge that underpins examples of excellence. We can take this knowledge, share it and implement it throughout the construction industry. Over the last 10 years there has been a dramatic change in the way construction activity is being undertaken. This is not only in the form of new technology, but also into way that construction projects are procured and managed. This new thinking has been very successfully applied in other industries throughout the world.
Why is it important?
The construction sector is one of the largest and most important in the economy, employing over 7% of the workforce. The built environment represents a national investment valued at over $300 billion. The sector contributes 4.5% to GDP and puts in place added value assets worth over 12.5% of GDP in 2005. In the year
A study by BERL shown that a 10% efficiency gain in this sector results in a 1% increase in GDP
Procurement is the process of establishing the most appropriate method of managing the construction project and selecting the best team to design, deliver and sometimes operate the required facility. Lowest price tendering and lump sum contracts are giving way to better forms of selection and contract arrangements.
Modern procurement methods emphasize the need to select those companies that can work effectively in a collaborative relationship and who understand and practice the principles of “Partnering”. New forms of contractual arrangements seek to get all key parties to work together as early as possible to ensure the effective delivery of a project.
At Stimson Contracting we are constantly looking at our contractual agreements with our vendors to evaluate where we can ultimately save our customers money without compromising quality. A quality building is our ultimate goal. Purchasing products that we consistently use in each project in larger quantities would be an example of how we are assessing these contracts. The quality of the products doesn’t change but the ultimate result is a lower cost per project.
In our next article we will address the concept of “Partnering”