Risk is inherent in any capital project. But in our current environment of volatility, uncertainty, complexity, and ambiguity (VUCA), risks are magnified.
Collaborative relationships between owners, contractors, and trade partners are one of the most sure-fire means for mitigating risk and protecting owners’ value. These collaborative relationships are often built on lean principles and integrated project delivery (IPD) methods. At Miller Valentine Construction, we take that a step further by providing CapEx leadership.
Greg Fox, Vice President of Lean Construction, spoke on CapEx leadership during a panel presentation on “Construction in a VUCA World: A Contractor Panel Discussion” at the 2023 CURT National Conference in February. At its heart, CapEx leadership is about delivering greater value for all project stakeholders. In a VUCA world, that requires:
- Understanding the business drivers. What is the purpose of the project? What is important to the project and what will make it successful? All major stakeholders need to understand and rally around the business case from inception.
- Identifying, analyzing, and mitigating risks. When the risks are defined early on, contractors and trade partners can ensure the right experts are on the project team.
- Aligning behind what’s best for the project. Successful projects are built on shared values, principles, ground rules, and conditions of satisfaction. Trade partners should be chosen based on their ability to deliver on these concepts.
- Embracing innovation. Project teams need to constantly innovate, and not just in the digital sense. Every engagement requires creative solutions for how to work together to deliver the desired outcomes.
- Matching project parameters to the market. Does the design incorporate easy-to-source materials? Are specialized trade partners required and, if so, can they commit to the schedule? Mitigating uncertainty starts with ensuring the project design and execution plan reflect on-the-ground facts.
- Managing data. Through the smart application of tools, project teams can measure progress, motivate team members, and ensure the right people have the right information at the right time.
Every one of these principles builds on the next, creating an ecosystem that reduces risk, manages costs, improves safety, and results in higher quality and greater certainty. Watch the panel discussion to learn how we use these principles to protect the owner’s value and accelerate the project’s benefits.
In a VUCA world, lean IPD and CapEx leadership provide a measure of certainty for project owners. Learn more about how we can help you gain more value from your next project.