There are many rich concepts discussed in Daniel Kahneman’s book, Thinking Fast and Slow that apply to building design and construction projects. One that deserves attention by those reluctant to apply a Lean strategy toward their projects is Theory Induced Blindness.

The concept is simple. Once people have experienced apparent success with a theory they learn to ignore evidence that demonstrates flaws in that theory. Low bid selection processes are an example of Theory Induced Blindness.

The theory by which most trade contractors in the building industry are selected can be appropriately Low Bid Theory. The principles at work in Low Bid Theory are that a project owner obtains the lowest possible cost for constructing a building because they have abstained each component of constructing the building at the lowest cost. 

Practitioners and observers of Lean systems know this is nonsense because complex systems, and the construction of even the simplest building requires a complex system, can only be optimized at the system level. Any attempt to optimize the individual pieces through a low bid process more often than not fails to achieve the lowest cost – often by a wide margin. 

Bluntly, the attempt by many owners wedded to Low Bid Theory to save money results in wasted money. This post isn’t written for those owners. As Upton Sinclair famously wrote, “It is difficult to get a man to understand something, when his salary depends upon his not understanding it.”

This post is written for those frustrated by owners trapped by the Low Bid Theory. Their Theory Induced Blindness isn’t likely to allow them to see your evidence for a Lean approach. Move on to owners that understand the inherent problems with Low Bid Theory and are looking for an approach that works.