Aligning the Lean Organization: A Contractual Approach

Owen Matthews1, Gregory A. Howell2 & Panagiotis Mitropoulos3

1CEO, Westbrook Air Conditioning & Plumbing, Box 5459, Orlando, Fl 32855-5459.
2Managing Director, Lean Construction Institute, Box 1003, Ketchum, ID 83340,
3Research Associate, Lean Construction Institute, Box 1003, Ketchum, ID 83340,


Maximizing value and minimizing waste at the project level is difficult when the contractual structure inhibits coordination, stifles cooperation and innovation, and rewards individual contractors for both reserving good ideas, and optimizing their performance at the expense of others. This paper describes an innovative contractual structure that aligns the interests of all contractors with the objectives of the lean delivery system. The approach, requirements for implementation, and results obtained will be described and a brief reflection on theory offered.


Contract, Lean Delivery, Project Organization, Primary Team Member, Pact, formula, Integrated Project Delivery™



Matthews, O. , Howell, G.A. & Mitropoulos, P. 2003, 'Aligning the Lean Organization: A Contractual Approach' In:, 11th Annual Conference of the International Group for Lean Construction. Virginia, USA, 1-.

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