How to Fix a Broken Budget?
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.
The project was recognized for INNOVATION in Project Delivery Process by CaGBC, for how to deliver a High Performance Green Project on a tight budget by adopting a collaborative team open book design to budget approach. Back in 2004 this would have been called a Relational Contracting approach.
The SFC project was also recognized for exception energy saving using an innovative hybrid radiant/displacement ventilation energy efficient mechanical system, creative use and economic development for local forestry products and for social responsibility as we achieved high levels of aboriginal employment for the demolition and construction.
LEAN
Fixed a Broken Budget with a Collaborative TEAM effort and delivered a highly successful project
Discipline: Delivered a LEED Gold project with less than $100 contingency
Performance: Achieved budget, schedule and energy performance
The Forest Center was the first of three LEED Gold projects for Innovation Place Research Park. Through innovation in design our team was able to achieve 55% less energy and deliver a LEED Gold facility at no additional capital cost.
Leadership: First LEED Project for Saskatchewan (Gold)
Innovation: 50% less Energy
Economics: Forest Industry Products
Society: First Nations Job Creation
Sustainable: Reduce, Reuse, Recycle 85% of materials from site
