McGraw Hill Construction, the Lean Construction Institute, and Dassault Systèmes teamed up to produce an in-depth report on Lean Construction. Below is an excerpt from that report on how Lean practices impact cost savings and profit margins.
Cost Savings from Lean Projects and Contractor Profit Margins
Given the importance of project profitability in helping to drive the adoption of Lean practices, it is critical to understand how individual players benefit from the efficiencies achieved in pursuing Lean.
Do the savings achieved improve the bottom line of the firm implementing Lean, or do they get passed along to their clients, whether that is general contractors or owners?
General (71%) and trade (72%) contractors who have implemented at least one key Lean practice agree that the savings they see from using Lean practices contributes to their bottom line and project profitability.
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bottom line & project profitability”