Benchmarking & Metrics Value of Best Practices (Best Practice)

BM-VBP Topic Summary
BM VBP

Overview

Since the establishment of the Construction Industry Institute (CII) in 1983, its industry members and academic researchers have collaborated on research to improve the cost effectiveness of capital project delivery. CII research on the industry’s processes and methods has generated 17 best practices (through 2017) many of which have been adopted by the industry at large. The CII Best Practices are defined as “process[es] or method[s] that, when executed effectively, [lead] to enhanced project performance.” To qualify as a CII Best Practice, a practice must be sufficiently proven through extensive industry use and/or validation.
 
The Value of Best Practices (VBP) report have the following objectives:
  1. Measure the levels of best practice use among CII members.
  2. Gauge the impact of best practices, especially the joint impact of multiple best practices, on project performance. Project performance is measured in terms of cost growth, schedule growth, and safety performance.

Key Findings and Implementation Tools

1 : Impact of CII Best Practices by Project Phase

The 2016 Value of Best Practice Report focuses on the impact of practices on phase outcomes (as opposed to overall project outcomes). The study was based on data collected for the CII 10-10 Program. Figures 33 and 34 show that organizational practices (team building and alignment) were associated with better phase outcomes (cost and schedule growth), across several phases. Other practices also found to have significant association with better phase outcomes include materials management, risk assessment, and quality management. (PAC2016-4, p37)
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Reference: (PAC2016-4)

2 : Use of CII Best Practices

Owners implement Front End Planning, Zero Accidents Techniques, and Change Management more frequently and better than they implement other best practices. Contractors implement Zero Accidents Techniques, Project Risk Assessment, and Change Management more regularly and effectively than they implement other best practices. (BMM2010-4, p13)
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Figure 10 illustrates how well the best practices were implemented by the owners and contractors.
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Figure 12 presents the percentage of projects that scored a high level of use for each best practice. The numbers next to each best practice represent the sample size. The score ranges from 0 to 10, with 0 indicating no use of the best practice and 10 indicating full implementation. In Figure 12, a VBP score greater than or equal to 6.67 is considered “high use” or “well implemented.” By using this definition for “high use,” the team found Change Management, Zero Accidents Techniques, Planning for Start-up, and Front End Planning to be the four best practices that were well implemented. Figure 12 shows the percentage of projects implementing each best practice at a high level.
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Reference: (BMM2010-4)

3 : Culture

A company with a strong improvement culture tends to implement best practices more effectively than does a company lacking an improvement culture. Significant benefits were observed on projects that implemented best practices well, in comparison to projects that minimally implemented best practices. Figure 13 shows the distribution of projects by their best practice use level and according to whether the respondent companies have good improvement cultures. (BMM2010-4, p18)
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(See Table 1.) In general, projects submitted by organizations with good improvement cultures tend to implement best practices at higher levels than do projects submitted by organizations without strong improvement cultures. The average project cost growth decreased from 6.3 percent to –1.2 percent for the projects using Planning best practices at the fourth quartile level and the first-quartile level, respectively.
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Reference: (BMM2010-4)

4 : Owner & Contractor Submitted Projects

The VBP study concludes that owners should focus on project planning (i.e., FEP, Alignment, and Planning for Start-up), while contractors should focus on project execution (i.e., Constructability, Project Risk Assessment, and Change Management). Owners reported benefits on cost, schedule, and safety related to the implementation of best practices, while contractors primarily observed significant cost benefits. Although contractors often are not involved in Planning for Start-up, analysis shows that contractor involvement in Planning for Start-up leads to significant project cost benefits. Figure 15 shows that the 29 projects with high best practice use had an average cost growth of –2.3 percent. This outcome is better than the average cost growth (8.6 percent) of the 25 projects with low best practice use. (BMM2010-4 page 23)
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The use of best practices also indicates a significant difference on project schedule growth The projects with a high Best Practice Index (i.e., projects in the first quartile of best practice use) had an average schedule growth of 1.8 percent. In contrast, projects with a low Best Practice Index on average had 11.5-percent schedule growth. 
For contractor-submitted projects a significant impact was observed regarding Execution best practices. As can be seen in Figure 18, the projects with a high Execution best practice score achieved an average cost growth of –3.0 percent, whereas the projects with a low Execution best practice score had an average cost growth of 9.2 percent. 
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Reference: (BMM2010-4)

5 : Project Performance

Best practices may improve performance not only in terms of cost, schedule, and safety, but they might also increase the consistency and predictability of project performance. By improving the consistency of project delivery, a company will have a better chance of improving project performance over the long term. This combined benefit of best practice use will likely give companies a distinct competitive advantage.  (BMM2010-4, p27)
Reference: (BMM2010-4)

Key Performance Indicators

Improved cost, Improved schedule, Improved safety

Research Publications

2016 Value of CII Best Practices Report - PAC2016-4

Publication Date: 11/2016 Type: Performance Assessment Pages: 51 Status: Reference

CII Value of Best Practices Report - BMM2010-4

Publication Date: 07/2011 Type: Performance Assessment Pages: 48 Status: Reference

Benchmarking and Metrics Value of Best Practices Report - BMM2003-4

Publication Date: 02/2003 Type: Performance Assessment Pages: 45 Status: Reference


Presentations from CII Events

Session - Benchmarking the Value of Best Practices

Publication Date: 07/2002 Presenter: John Tato Number of Slides: 41 Event Code: AC02

Plenary Session - CII 2016 Value of Best Practices Report

Publication Date: 08/2016 Presenter: Number of Slides: 14 Event Code: AC2016

Implementation Session - CII 2016 Value of Best Practices

Publication Date: 08/2016 Presenter: Number of Slides: 30 Event Code: AC2016


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