Lean in Contracts: The Foundation for a Smooth-Running Project

In this blog, we’re continuing our journey through Elevating Preconstruction Planning by focusing on one critical and often overlooked, element: Lean in Contracts.

Lean planning transforms your project into a coordinated production system. But here’s the catch: if you want that system to work, your trade partners must know the rules of the game before they join the team. That means your lean expectations must be baked into their contracts.

When this is done well, you create alignment, reduce friction, and set the stage for smooth collaboration. When it’s skipped, you leave yourself open to misunderstandings, resistance, and even formal disputes.

Why Lean Belongs in Contracts

You can have the most well-thought-out takt plan in the world, but if your trade partners haven’t agreed to the practices that support it, you’ll struggle to execute.

By outlining lean requirements up front, you:

• Establish clear expectations that everyone signs off on.
• Protect the project from scope disputes and costly change orders.
• Show respect for your trades by giving them the tools, training, and awareness they need to succeed.

Some in the lean community argue that contracts aren’t necessary for lean implementation, that culture and cooperation are enough. I strongly disagree. Culture matters, but so does clarity. Contracts lock in that clarity.

Key Lean Provisions to Include in Contracts

Here’s a breakdown of practical inclusions that keep projects lean, safe, and predictable:

1. Cleanliness as a Habit

Clean-as-you-go, not clean-at-the-end. Crews keep their work areas swept and organized at all times to support safety and productivity. Workers are trained to avoid letting debris hit the floor in the first place.

2. Just-in-Time Deliveries

Deliveries are coordinated to the right inventory buffer, no more, no less. This avoids overcrowded laydown areas and reduces wasted motion while ensuring materials are available when needed.

3. Worker and Foreman Huddles

Mandatory daily huddles to review safety, plan the day’s work, and align teams. Foremen attend a dedicated daily huddle to coordinate upcoming work.

4. Daily Setup

The first 25 minutes of each shift are for preparing the work area, reviewing quality and safety requirements, and organizing tools and materials.

5. Quality Control Checklists

Before starting any phase, trades review a QC checklist or visual quality board to confirm readiness.

6. Technology Requirements

Foremen must have tablets to access schedules, plans, and project management software in real time.

7. Zero Tolerance Systems

A respectful, caring zero tolerance policy for unsafe or disrespectful behavior, consistent with the safety program.

8. Approved Foremen

All foremen must meet project standards and be approved by the on-site leadership team before starting work.

9. Geographic Area Assignments

The site is divided into zones, each managed by a superintendent and field engineer. Trades must provide a foreman for each active area.

10. Contractor Grading

Weekly performance scores are shared with owners, trade leaders, and internal teams. Grades are based on objective criteria and posted publicly.

11. OSHA Training Standards

All workers must have OSHA 10 certification; all foremen must have OSHA 30. If an OSHA 10-trained crew is on site, an OSHA 30 foreman must be present at all times.

12. Delivery Scheduling Discipline

Material deliveries are booked in advance on the delivery board or software. Late or out-of-sequence deliveries are rerouted to a queuing area.

13. Takt Construction Commitment

All contractors participate in pull planning, follow the takt production system, and work within their designated zones and takt times.

Respect Through Clarity

Including these provisions isn’t about micromanaging. It’s about creating the circumstances where lean systems can actually thrive. Without contractual backing, you risk trades being caught off guard or worse, requesting additional compensation for time spent in huddles, pull planning sessions, or other lean activities.

When you put it in writing, you’re showing respect for everyone’s time and setting the stage for a project where expectations are shared, agreed upon, and achievable.

Reflection: Are Your Contracts Lean-Ready?

Ask yourself:

1. Do you have a list of required lean provisions for trade contracts?
2. Are these provisions already included in your master subcontract agreement or work orders?
3. Are you onboarding trades collaboratively during buyout so they understand what’s expected?

If your score on these questions is below 80%, now’s the time to make changes before the next project starts.

Key Takeaway

Lean systems succeed when expectations are contractual, clear, and agreed upon so trades can fully commit without surprises or disputes.