June 13, 2025 How Does Smart Planning Fuel Construction Efficiency?

Strategic early investments in lean principles, collaboration and planning can help manufacturers reduce risk, boost ROI, and future-proof their facilities.

Why early-stage planning is the best investment industrial builders can make

In industrial and manufacturing construction, successful outcomes depend on more than just bricks and mortar. They are influenced by intelligent, early-stage choices that anticipate operational challenges, ensure future-proof design, and minimize waste long before a shovel hits the ground.

Ask the Right Questions Early

Far too many industrial projects begin with superficial measures—total square footage, production capacity, or equipment specs—but those factors only scratch the surface.

But instead of asking how much space is needed, the more important question is ‘what are your operations really costing you? That answer holds the key to smarter design and better outcomes. A data-first assessment often reveals inefficiencies that manufacturers may not realize are dragging them down such as outdated layouts, redundant workflows, or limited storage. Addressing these issues early can dramatically reduce space needs, freeing up capital for reinvestment in automation, workforce, or scalability.

Design for Precision and Performance

Industrial facilities, particularly those in sectors like biotech, food processing, and advanced manufacturing, demand advanced mechanical, electrical, and plumbing (MEP) systems. The challenge? Most project owners don’t finalize their MEP needs until late in the process, risking delays and costly change orders.

Evaluating this during the initial planning process enables the following:

• Operational data can be gathered before design begins.
• MEP partners are brought into discussions upfront.
• BIM (Building Information Modeling) and laser scanning can visualize projects in 3D.
• Current and future requirements are integrated into every design.

Creating a digital version of the facility before construction begins gives owners confidence in their decisions and streamlines everything from procurement to construction timelines. 

Conducting an early-stage process evaluation can accelerate timelines, reduce rework, and accommodate long-lead items. This approach can save industrial builders millions of dollars in the long run.

Think Differently about Estimating

From equipment rental to zoning and permit approvals, developing a project budget involves many factors that require months of planning. That’s why it’s important to start the estimating process early and determine whether portions of the project will need to be completed in phases. It can also help inform design choices and facilitate funding decisions.

The key is to look beyond historical pricing, as previous project costs alone do not lead to accurate estimates. Inflation and escalation of material or construction costs, as well as the unique attributes of each project, mean the square foot cost is dynamic.

Instead, use a smarter estimating approach that takes into account the specific design elements of your project along with current market data, labor rates, material costs, client needs, and local conditions to deliver sharper, more accurate budget forecasts.

Implement Lean Construction

Incorporating Lean principles into your planning process helps construction teams maintain control over time and cost by eliminating non-value-added tasks, centralizing decision-making, and streamlining communication across all stakeholders.

It’s a disciplined approach rooted in measurable outcomes. Teams track KPIs like:

• Revenue per square foot
• Throughput
• Operational savings

Every decision is tied directly to ROI.  According to the Lean Construction Institute,   building projects that use these methods show impressive results. LCI data reveals 15-30% faster completion times and major cost reductions.

Deliver Outcomes Collaboratively

Traditional design-bid-build models often create silos between stakeholders and can lead to misaligned expectations and change orders. In contrast, collaborative delivery models such as Design-Build (DB) and Integrated Project Delivery (IPD) break down those silos and create shared ownership of outcomes.

These models drive performance through:

• Early involvement of contractors, engineers, and trades, ensuring constructability and value engineering from day one.
• Transparent cost structures where risks and rewards are shared across parties.
• Integrated digital tools like BIM and shared dashboards that support continuous coordination and scenario testing.

For example, research by Dodge Data & Analytics found that IPD projects achieve faster schedules and 12% lower costs on average compared to traditional methods. The emphasis on alignment also reduces friction and enhances trust, two factors critical in fast-paced industrial builds.

Schedule Early

Time is money in industrial construction. Schedule overruns are a leading cause of cost blowouts. According to McKinsey, large construction projects typically take 20% longer to finish than scheduled and are up to 80% over budget¹.  This risk escalates in manufacturing settings where every day of delay means lost production and revenue.

Early integration of scheduling during preconstruction can change that trajectory, reducing delays and significantly boosting labor efficiency.

• Takt time planning, a lean technique, aligns workflow pacing with production rates.¹
• 4D scheduling (3D model + time) visualizes sequences and identifies bottlenecks.
• Real-time dashboards ensure all stakeholders are informed and can act decisively.

Efficiency, cost control, and adaptability don’t begin in the field, they begin on the whiteboard. By investing in early-stage strategy, collaborative delivery models, and lean principles, industrial and manufacturing leaders can mitigate risk, accelerate ROI, and build facilities ready for the future.

About the Authors:

Erik Dillon is Vice President, LEED GA at Riley Construction. In his role, Erik provides executive oversight of key projects and collaborates with leaders to ensure that building projects are safe, efficient, and enjoyable.

Nate Hoffman is Founder and President of Carrus Group. Nate has worked in the manufacturing industry for the entirety of his 20-year career. He’s passionate about bringing business principles to engineering solutions that improve manufacturing operations.

¹ https://www.cogram.com/blog/takt-planning-in-construction-projects#:~:text=Takt%20planning%20focuses%20on%20creating%20a%20steady,leading%20to%20improved%20productivity%20and%20reduced%20waste.

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