13 Must-Have Contract Provisions for Lean Success
13 Must-Have Contract Provisions for Lean Success
How to implement lean on your projects (the right way)
👋 Hey, Kyle here! Welcome to The Influential Project Manager, a weekly newsletter covering the essentials of successful project leadership.
Today’s Overview:
The biggest mistake I made in Lean Construction? Thinking I could slap it on mid-project. Rookie move.
Lean success requires more than training and motivation—it needs clear expectations set in the contract.
Here are 13 examples of provisions you can include in your exhibits, work orders, work authorizations, or contracts to buy the behaviors you want and create the environment needed for a successful lean project.
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13 Must-Have Contract Provisions for Lean Success
Filed under: Lean Tools & Tactics
Do you want to implement Lean on your project?
You're not alone. 99% of people (myself included) have gotten Lean implementation horribly wrong.
What’s the secret?
You have to specify it in your contracts.
I’ve been practicing Lean Construction for five years. Last Planner System, Takt Planning, Target Value Delivery – you name it, I've tried it. The biggest mistake I made early on was not incorporating Lean principles into the contract itself.
It’s like changing the rules halfway through a football game. Not pretty.
If we want to implement Lean planning and transform our projects into production systems, everyone needs to know the expectations upfront—before signing the contract.
Inspired by Jason Schroeder’s book, “The First Planner System,” here are 13 examples of provisions I found that you can include in your exhibits, work orders, work authorizations, or contracts to buy the behaviors you want:
1. Cleanliness 🧹
Cleanliness will be real time for all crews onsite. Workers & crews keep their areas clean and swept at all times to support a safe & productive work environment. The focus will be on the habits of the workers, not simply cleanup at the end of the day. Workers & crews will be trained on cleaning as they go, & not allowing things to hit the floor. Cleanup at the end of the day will still be encouraged, but it will be enforced as the crews work.
2. Just-in-Time Deliveries ⏱️
Deliveries of materials shall be coordinated to the right inventory buffer. Too much material inventory will not be allowed, and zero inventory is not productive. Deliveries will be aligned to zones and the project pace (Takt time).
3. Worker & Foreman Huddles 👨👩👦👦
All foreman will attend a daily foreman huddle to plan work for the next day. Workers will attend a daily worker huddle at the start of the day to communicate safety items and the plan for the day. Attendance is mandatory.
4. 25 Minute Daily Setup 👍
The first 25 minutes of the day will be dedicated to setup. The recommended agenda is shown below:
Worker huddle with the entire site
Area walk through
Pre-task planning
5s area:
Sort
Set in order
Shine/Sweep
Standardize
Sustain/Self-discipline
Setup work area for success by eliminating the 8 wastes:
Inventory – Storing parts, pieces, documentation ahead of requirements
Over production – Making more than is IMMEDIATELY required
Transport – Moving people, products & information
Motion – Bending, turning, reaching, lifting
Waiting – For parts, information, instructions, equipment
Over processing – Tighter tolerances or higher-grade materials than are necessary
Defects – Rework, scrap, incorrect documentation
Skills – Underutilizing capabilities, delegating tasks with inadequate training
Gather all tools and needed equipment
Safe off work areas
The point of this time is to ensure the workers are all prepared for the day with tools, equipment, instructions, materials, and a place to work.
5. QC Checklists & Inspections 👌
Every phase of work will have a checklist or visual reference before starting. A representative from each trade will be responsible to research the plans, specs, codes, safety manual, and any other pertinent information before the pre-install. After the meeting, the information is to be summarized and formatted before the work begins. Each crew is to have with them a quality checklist for the work or a visual that has been reviewed by the general contractor. Every crew, every day, has a pre-task plan and quality expectations.
6. Tablets for Foreman 📱
Foremen will be expected to view the plan for the day, scheduling software, a project management software, and other project management applications. Each foreman has an iPad for his or her work.
7. Zero Tolerance Systems 🚯
On our projects, because of our respect for each person, we will have a respectful and caring “zero tolerance” policy on certain items that are part of, and completely consistent with, our safety program. Communication and enforcement of our safety program provides equal opportunity for everyone to work and be respected.
Here’s what our “zero tolerance” policy covers:
Any violation of safety that is contrary to site standards, project orientation, and OSHA basic standards.
Anything that is indicative of bad behavior, bad attitudes, not paying attention, or not being trained for the task.
Any violation that is high risk that creates imminent danger to persons or property (i.e. ladder use, electrical, fall protection, confined space, excavations violations, etc.).
Failure to wear PPE, including hard hats, safety vests, glasses, and protective clothing. PPE sets the tone for safe behavior—those who neglect this are likely to ignore other critical safety protocols.
Clean jobsite and daily housekeeping including proper staging of materials in approved and designated locations.
Our Commitment: We, as the general contractor, commit to providing a safe, productive environment. In return, we expect your support in upholding this zero-tolerance policy by:
Explaining the policy during site orientation.
Leading by example and enforcing the rules.
Conducting daily huddles to reinforce safety standards.
If someone is observed being unsafe, we will pause their work and say, “Because we care about your safety, we need you to re-focus, receive training, or plan better. After orientation or re-training, you can return to work (except in cases of major violations).”
We will send an email to that person’s company explaining why that person was paused for their own safety and the benefit of their family, ask that the person be re-trained, and offer them an opportunity to come back once orientation. (Unless it is a major violation).
We will log the name and violation on a log to track repeat offenders that cannot come back.
If it is minor, they come back through orientation.
If they do it again, they cannot come back.
If it is a serious violation that is high risk, they cannot come back.
Our zero-tolerance approach is built on respect for people. We keep clean job sites, uphold safety standards, and treat everyone fairly because we respect people’s lives, their families, and the well-being of all.
8. Approved Foreman ✔️
All foremen must be approved by the onsite team. Foremen must comply with the following requirements, or they will be removed from the project.
Bring materials to the site, “Just in Time!”
Enforce site safety rules from Safety Manual
Keep crew operations clean and organized 100% of the time. Do not wait until the end of the day.
Do not let materials touch the ground. Either new materials or trash.
Participate as a project team member in the last planner meetings and morning huddles.
Maintain parking for your company and ensure there is no impact to the customer.
Material deliveries for equipment and supplies will be posted in a visible location for the entire team to see. All deliveries will be scheduled per jobsite rules.
Every foreman supervising in the field will attend a pre-install meeting before commencing the Feature of Work and prepare for the meeting by reading all associated plans, specifications, and shop drawings. The product of this review will be a subcontractor provided checklist of critical quality items pertaining to the installation. If the foreman or superintendent does not come prepared, the meeting will be summarily canceled and rescheduled as soon as a commitment can be made to properly research the scope.
Contractor will participate in phase planning sessions to develop the overall schedule.
Foremen will identify and help the team remove roadblocks ahead of the work.
Foremen will have a good attitude and partner with the project team.
9. Contractor Grading ⭐
The general contractor and all trade partners will be graded weekly based on non-subjective criteria. The score will be scaled from F to A based on performance. This score will be communicated to the owner, all internal company leaders, all trade leaders and will be posted in the project conference room. The purpose of this is to manage expectations as a group and elevate everyone to high levels of performance. It is expected contractually that onsite teams reach a “B” or higher within 6 weeks of arriving on site.
10. Worker & Foreman Safety Training 🦺
All workers will be OSHA 10 trained to be onsite. All foremen will be OSHA 30 trained to be onsite. If OSHA 10 trained workers are not available, an OSHA 30 trained foreman must be onsite with that crew 100% of the time.
11. Scheduling & Delivering Materials 🚚
Material deliveries will be scheduled on the project delivery software or on the delivery board on a first come first serve basis. Delivery times will be held. If deliveries arrive on the project out of sequence or late, they will be re-routed to a queuing area. All deliveries will be coordinated so they are offloaded to the proper area. Forklift operators, hoist operators, and crane operators will only stage per the coordinated logistics plan for the day. All materials will be packaged on color-coded pallets, on wheels, or otherwise mobile.
12. The Last Planner System (LPS) 🗓️
Trade partners are expected to engage with The Last Planner System (LPS) for project planning, guided by the general contractor, through:
Milestone Planning: Subcontractor shall align with set milestones from the master schedule.
Phase Pull Planning: Participate in periodic collaborative pull planning sessions to verify the proper sequence and resources needed for upcoming work phases.
Look Ahead Planning: Coordinate and participate in make-ready planning to get upcoming work in a condition so that it can proceed without delay.
Weekly Work Planning: Participate in weekly tactical meetings with foreman to establish the set of promises for the work to be completed each week.
Day Planning: Participate in daily morning meetings, prior to the start of work, to review safety protocols and support the project’s last planners in staying on track with their promises.
13. Takt Construction ♻️
This project will use Takt Construction. It is expected that each contractor participate in pull plan sessions to create the Takt sequences and that each contractor will follow the Takt planning system. This system also requires the participation of trade foreman in the trade partner weekly coordination meeting and daily foreman huddles. Each contractor shall work within their zone within their Takt time.
Why This Matters
At its core, Lean is about RESPECT for people.
Lean success requires more than training and motivation—it needs clear expectations set in the contract.
These contract provisions will create the environment you need to run a lean project successfully.
Until next week,
Kyle Nitchen
P.S. If you haven’t checked out The First Planner System by Jason Schroeder, do it. It’s full of valuable insights for building a solid Lean production system.
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