This document defines key construction outcomes and value drivers. It identifies pressures that construction companies face and outlines capabilities and metrics that can help address those pressures and drive business growth, cost control, schedule performance, quality, health/safety, and sustainability. Some example outcomes are expanding services, improving win rates, increasing bid efficiency, and reducing safety incidents. The document provides a framework for construction companies to assess their performance and identify improvement opportunities.

1. Construction
DEFINITIONS

2. Business Growth
The realization of
business expansion
through increasing
revenue and sales,
company value,
profitability or size and
position in the
marketplace.
Cost
Cost, or cost
management, is the
process of predicting,
allocating, and
controlling costs.
Schedule
Maximising value by
ensuring scheduling
deadlines are met in
order to avoid costly
overruns.
Quality
An organisation's ability
to meet a customer's
purpose and
expectation on an
offering against defined
criteria.
Health, Safety and
Sustainability
A better understanding
of sustainability to
support the identifying
of solutions for
protecting communities
and building for
resilience.
Construction Value Drivers

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Construction Outcomes

4. Outcome Outcome Description Pressures Addressed Value Metrics Capabilities
Expand and diversify
Services
The opportunity to position additional services to the client
presents itself during the bid stage. These services can include
self-deliver, investment, facilities management, industrialized
construction, utilizing digital technology and BIM, and providing
sustainability or post-occupancy services. These are all
opportunities to increase the profit margin or reduce cost or risk
on a project (thus providing better reassurance that profit can
be maintained).
• Poor profit margins • Additional revenue added above
original project scope
• Handover/Turnover
• Sustainability Management
• Facilities Management
• Quality Management (AEC)
• Architectural Model Authoring
• Structural Model Authoring
• MEP Model Authoring
Improve Win Rate Investment in submitting a bid is only realized when a bid is
won. Lost bids are a cost to the business (unless it is agreed that
costs can be recovered by the contractor). A robust bid selection
process is required (sometimes referred to as a stage-gate
process). Monitoring win rate is a key metric for bid teams.
• Poor Win Rate • Win Rate • Quantification
• Estimating
• Bid Management
• Design Visualization
Increase Bid Efficiency The ability to turn bids around quickly reflects how efficient the
processes of the bid department are. Utilizing technology and
automation during the bid stage can dramatically increase
efficiency in delivering compliant/innovative bids that
differentiate the contractor from the competition.
• Slow time to quote • # of operative hours per $m
project value won​
• # of hours per bid vs. win rate
• Quantification
• Estimating
• Fabrication Planning
• Bid Management
Increase Percentage of
Successful Projects
Project success is determined by different factors. These include
delivering in accordance with the customer's requirements and
against all of the key metrics set out by the contractor (on
budget, on time, correct level of quality, no incidents, etc.) at
project conception. Customer satisfaction and key project
metrics should be captured to identify areas for continual
improvement.
• Pressure to find and win projects
with profitable margins.
• Survey scores
• Project Specific KPIs
• Handover/Turnover
• Sustainability Management
• Quality Management (AEC)
• Design Visualization
Increase Stakeholder
Buy-In
Demonstrating a better understanding of the customer brief
through visualization and getting the client to actively
participate in all phases can be enabled by technology. This can
dramatically increase the end customer's understanding of how
the contractor will deliver the project. Measuring engagement
through post-bid surveys following successful bids, will help
identify what differentiated the contractor during the bid stage.
• Poor survey scores • NPS Score - Bid Phase
• CSAT Score
• MWBE Participation
• Quantitative Feedback (captured
in CRM)
• Design Management
• Document Management
• Fabrication Planning
• Bid Management
• Sustainability Management
• Computational and Generative Design
• Facilities Management
• Design Visualization
Business Growth

5. Outcome Outcome Description Pressures Addressed Value Metrics Capabilities
Improve Cost Control Better cost control in relation to the budget is imperative to
controlling the project and ensuring that it stays financially
healthy throughout the course of the project.
• # of open change orders at
handover
• Project Financials
Improve Forecast
Accuracy
Project forecasts can impact the overall health of a contractor.
Accurate and timely reporting that gives the true story of a
project's financial health is imperative to avoid budget issues at
the business line or organizational level. Staying true to
forecast demonstrates good management of the business in
line with senior leadership and owner/shareholder
expectations.
• Forecast Variance • Project Financials
• Quantification
Improve Subcontractor
Qualification
Assessing subcontractor performance vs. cost allows a
contractor to mitigate costly risk (through default or poor
performance) that could have been avoided if better
qualification had taken place.
• Risk of subcontractor default​
• Risk of picking subcontractors with
a poor track record
• Qualification
• Supply Chain Management
Reduce Non-Recoverable
Cost
Non-recoverable costs are those that cannot be directly
attributed to another project stakeholder. Design issues can
usually be attributed to the design team, and poor
workmanship resulting in rework can be attributed to a
subcontractor, but issues that can't be contributed to a third
party (such as poor or missing materials or lost time due to
poor scheduling/delays) have to be covered. There will be a set
amount of project contingency put aside for these types of
incidents.
• Non-recoverables cause erosion of
fee​
• Poor efficiency​
• Lack of skilled workers
• Actual profit margin vs. profit
margin calculated during bid
phase (minus change orders)​
• % of contingency attributed to
non-recoverable costs​
• $ of non-recoverable costs per
$ project value
• Quality Management (AEC)
• Project Financials
• Resource Management
• Short Term Control
• Fabrication Planning
• Project Management
• Facilities Management
Cost

6. Outcome Outcome Description Pressures Addressed Value Metrics Capabilities
Improve Plan to Actual
Ratio
Improving plan to actual ratios in schedule builds float into the
program, and (if the customer permits) provides the
opportunity for contractors to deliver the project early and
enhance their fee.
• Poor resourcing • Primary and Trackable Today:
Percent Plan Complete
• Construction Master Scheduling and
Simulation
• Short Term Control
Improve Resource
Planning
Correct allocation and planning of resources (labor, materials,
plant) is essential to ensuring that the master program is
adhered to. The better resources and logistics are sequenced,
the less chance there is of project overruns.
• Poor productivity • Construction Productivity
• # hours of redundant resource
time
• Resource Management
• Short Term Control
• Work Packaging
• Sustainability Management
• Concrete Detailing
• MEP Fabrication Detailing
• Steelwork Fabrication Detailing
• Architectural Design for Fabrication
Improve Schedule
Control
Schedule control is about how the master program is related to
monthly, weekly and daily planning of tasks/activities. Effective
short-term planning (such as Pull Planning) can ensure the
correct discipline in scheduling practices is adhered to.
• Poor schedule certainty • +/- deviation from schedule
milestones
• Short Term Control
• Work Packaging
Optimize Schedule
Duration
Identifying opportunities to reduce risk, reduce or optimize the
program leads to potential savings for the client and the
contractor. This can also reduce the likelihood of claims if
program dates/schedule are hit.
• Poor schedule certainty • Total float​
• On-Time Completion
Percentage
• Construction Master Scheduling and
Simulation
• Resource Management
• Logistics Planning
• Fabrication Planning
• Design Visualization
Schedule

7. Outcome Outcome Description
Pressures
Addressed
Value Metrics Capabilities
Improve Handover
Experience
Project handover is a period when project teams are attempting to get
closure on a project and deliver the build to the customer in
accordance with their expectations. Providing a better experience
during this period, through reduced defects, enhanced digital
documentation and to support the customer in moving from the
construction phase to operations, is an opportunity to increase
customer satisfaction and contribute to the contractor's reputation.
• Post Occupancy Survey Results
• Number of Days Post
Occupancy to Complete
Turnover​
• CSAT reports
• Handover/Turnover
• Quality Management (AEC)
• Design Visualization
Reduce Construction
Rework
Rework is unplanned works and can occur due to change orders, errors,
poor quality or poor scheduling. As it is unplanned it has the potential
to impact schedule (requirement to get back lost time), cost (if the
costs incurred by rework are non-recoverable and safety (additional
work on site increases operatives being exposed to hazards).
• Measurable Today: T&M due to
Rework/Total Project Cost
(AMER)​
• Non-recoverable cost (EMEA)​
• Lost time
• Document Management
• Quality Management (AEC)
• Project Management
• Fabrication Planning
• Design Management
• Concrete Detailing
• Steelwork Fabrication Detailing
• MEP Fabrication Detailing
• Design Visualization
Reduce Defects at
Handover
Defects at handover results in resource and overhead being incurred
by the contractor to put right any issues that should have been sorted
throughout the construction process. These are costs that have not
been accounted for (project contingency aside) that erodes a projects
profit margin.
• High aftercare (warranty)
costs
Time consuming warranty
Customer dissatisfaction
• Aftercare/Defects/Warranty
• Costs
• # of defects at handover per $m
of project value
• Quality Management (AEC)
• Document Management
• Handover/Turnover
Quality

8. Outcome Outcome Description
Pressures
Addressed
Value Metrics Capabilities
Reduce Number of
Constructability Issues
to Site
Taking the design and ensuring that it is fit for construction is called
Constructability. Managing out potential issues with the design to
ensure that the build is successful requires collaboration between all
project stakeholders and a robust review process to manage out all
issues before they lead to rework on site.
• Incomplete design and lack
of design review is causing
expensive field issues​
• Poor collaboration
• Number of Design Phase Issues • Quality Management (AEC)
• Design Management
• Document Management
• Coordination
• Design Visualization
• Steelwork Fabrication Detailing
• Concrete Detailing
• MEP Fabrication Detailing
• Architectural Design for Fabrication
Improve Handover
Experience
Project handover is a period when project teams are attempting to get
closure on a project and deliver the build to the customer in
accordance with their expectations. Providing a better experience
during this period, through reduced defects, enhanced digital
documentation and to support the customer in moving from the
construction phase to operations, is an opportunity to increase
customer satisfaction and contribute to the contractor's reputation.
• Post Occupancy Survey Results
• Number of Days Post
Occupancy to Complete
Turnover​
• CSAT reports
• Handover/Turnover
• Quality Management (AEC)
• Design Visualization
Quality

9. Outcome Outcome Description Pressures Addressed Value Metrics Capabilities
Improve Safety
Awareness and
Education
Actively promoting a safety culture in the workplace is proven
to reduce risk and increase hazard identification on projects.
Investing in Safety Awareness and Education at both the site,
business line and organizational level is essential to promoting
this culture.
• Poor safety culture • # of safety briefings/trainings
per $m project revenue
• Safety Management
• Project Management
Reduce Environmental
Impact
Contractors, like all other businesses, have an obligation to
work responsibly and minimize social and environmental
impact. Demonstrating a positive impact on the community and
wider society can boost employee morale, attract talent in a
labor shortage, lead to greater productivity and innovation,
attract loyal customers with their own CSR requirements, in
addition to delivering project performance. Though
construction customers don’t design buildings, they are
responsible for the impact of project execution.
• Lack of skilled workers​
Corporate, regulatory, and
investment requirements
• % of Project using Waste
Management Plan​
• Total Energy Impact During
Value Engineering​
CO2 Tonnes/Revenue
• Sustainability Management
• Fabrication Planning
• Logistics Planning
• Building Sustainability Analysis
Reduce Insurance
Premiums
Demonstrating better working practices through robust
processes/use of digital technology can reduce a construction
company's exposure to risk. Demonstrating this to insurance
providers can help reduce insurance premiums.
• High insurance rates​
Policy safety reporting
requirements
• $ savings on insurance
premiums
• Safety Management
• Sustainability Management
Reduce Onsite Worker
Exposure
Careful logistics, schedule and process planning, together with
the use of technology and offsite can reduce the numbers of
hours that operatives have to be on site. This can reduce the
risk of operatives being exposed to hazards that can cause
harm.
• Poor site conditions cause safety
risk​
Lack of skilled workers
• # of operative hours on site per
$m project revenue
• Quality Management (AEC)
• Safety Management
• Logistics Planning
• Construction Master Scheduling and
Simulation
• Short Term Control
• Fabrication Planning
• Work Packaging
Reduce Safety Incidents Safety incidents cost time, impact schedule and damage
reputation. In the worst-case scenario they can cause serious
injury or death. Every construction company has safety as a top
priority and a focus on reducing hazards that lead to incidents
on site.
• Poor safety record • EMR​
• # of incidents recorded / labor
hours​
• # of affirmative actions
• Safety Management
• Design Visualization
Health, Safety, and Sustainability

10. Project Controls and Administration
Design For Manufacturing and
Assembly
Architectural Design for Fabrication
Concrete Detailing
Fabrication Planning
MEP Fabrication Detailing
Steelwork Fabrication Detailing
Field Management
Construction Master Scheduling
and Simulation
Estimating
Handover/Turnover
Logistics Planning
Quality Management (AEC)
Resource Management
Safety Management
Short Term Control
Work Packaging
Construction Capability Groups
Project Financials
Project Management
Qualification
Sustainability Management
Courtesyof KlingStubbins
Building Information Modeling (BIM) Collaboration
BIM Standards Management Coordination
Design Management
Document Management
Supply Chain
Bid Management
Courtesyof
KlingStubbins
Bolded capabilities are those where Construction is the primary industry

11. Data Management
Data Interoperability
Visualization
Process Automation
Design Visualization
Computational and Generative Design
Construction Capability Groups
Asset Management
Facilities Management
Bolded capabilities are those where Construction is the primary industry

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