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. owenm@westbrookfl.com
2Managing Director, Lean Construction Institute, Box 1003, Ketchum, ID 83340, ghlci@earthlink.net
3Research Associate, Lean Construction Institute, Box 1003, Ketchum, ID 83340, Takism@earthlink.net

Abstract

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.

Keywords

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

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Reference

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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