Reduced costs in municipal construction projects
Summary of the Assignment
In collaboration with the Swedish National Board of Housing, Building and Planning, we increased compliance with the Planning and Building Act by 30% and reduced the costs incurred by municipalities due to errors, defects, and damage.
Results
30% increase in compliance
Industry
State and local government
Challenge
A comprehensive survey of defects, deficiencies, and damage in the construction sector revealed that the total economic costs to the real estate sector could amount to as much as 111 billion Swedish kronor annually. To address this, the Behaviour Design Group was commissioned by the government to reduce these costs using Organizational Behavior Management. The goal was to improve compliance with legal requirements in the control system under the Planning and Building Act (PBL) and thereby enhance the quality of preliminary work and control plans for construction projects.
Strategy
The primary objective of the assignment was to strengthen compliance with the law within the control system under the Planning and Building Act (PBL) and thereby improve the quality of both the preparatory work and the control plans for construction projects. Behaviour Design Group (BDG) was commissioned to carry out a change management initiative in three municipalities, with a focus on improving legal compliance and ensuring higher quality in construction work.
Three change leaders spearheaded the effort in close collaboration with the National Board of Housing, Building and Planning, the city planning office, developers, and municipal decision-makers. Together, they developed a joint action plan to improve quality and clarify which behaviors needed to be reinforced among building inspectors and developers. Support materials were developed, and ongoing guidance was provided to create the conditions necessary for the required behavioral changes. At the same time, obstacles in the process were identified and addressed.
Managers and employees received regular coaching and training, and the change leaders monitored the process by continuously measuring and providing feedback on progress.
Results
The project resulted in a 30 percent increase in compliance with the Planning and Building Act in the three municipalities, along with a significant improvement in the quality of the approved inspection plans. These advances helped reduce the costs previously caused by errors, deficiencies, and damage in the municipalities’ construction projects. In addition, the negative impacts on the environment, climate, and health in the affected municipalities were reduced.
30%
Improved regulatory compliance
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