Construction Disruption – BIM, Cloud Computing, and Efficient Project Delivery Methods

By Peter Cholakis
Published in the March 2013 issue of Today’s Facility Manager

Emergent disruptive technologies and construction delivery methods are altering both the culture and day-to-day practices of the construction, renovation, repair, and sustainability of the built environment. Meanwhile, a shifting economic and environmental landscape dictates significantly improved efficiencies relative to these facility related activities. This is especially important to any organization dependent upon its facilities and infrastructure to support and maintain its core mission.

The disruptive digital technologies of building information modeling (BIM) and cloud computing, combined with emergent collaborative construction delivery methods are poised to alter the status quo, ushering in increased levels of collaboration and transparency. A disruptive technology is one that alters the very fabric of a business process or way of life, displacing whatever previously stood in its place. BIM and cloud computing fit the profile of disruptive technologies, individually, and when combined these stand to create a tidal wave of change.

BIM is the life cycle management of the built environment, supported by digital technology. While a great deal of emphasis has been placed upon 3D visualization, this is just a component of BIM. The shift from a “first cost mentality” to a life cycle cost or total cost of ownership is a huge change for many. Improving decision making practices and applying standardized terms, metrics, and cost data can also prove challenging. An understanding and integration of the associated knowledge domains important to life cycle management is required, resulting in what is now being referred to as “big data.”

Cloud computing is also a disruptive technology, and it’s one that impacts several areas. The National Institute of Standards and Technology (NIST) definition of cloud computing is as follows, “Cloud computing is a model for enabling ubiquitous, convenient, on demand network access to a shared pool of configurable computing resources (e.g., networks, servers, storage, applications, services) that can be rapidly provisioned and released with minimal management effort or service provider interaction. The cloud model is composed of five essential characteristics, three service models, and four deployment models.”

It is perhaps helpful to define cloud computing in terms of its benefits. Cloud computing enables far greater levels of collaboration, transparency, and information access previously unavailable by traditional client/server, database, or even prior generation web applications. Multiple users can work on the same data set with anyone, anywhere, anytime, in multicurrency, multilanguage environments. All changes can be tracked to “who did what” within seconds (potentially the best form of security available), and information is never deleted.

The disruptive technologies of BIM and cloud computing will accelerate the adoption of emergent construction delivery methods and foster new frameworks. Design-bid-build, the traditional construction delivery method for decades, is inherently flawed. As a lowest bid deployment it immediately sets up adversarial relationships for involved parties. Owners prepare a solicitation for construction projects based on their understanding of them¹, with or without third-party A/E assistance, and in most cases they go out in search of the lowest bidder. Then without a thorough understanding of the owner’s facility, bidders base their responses on the owner’s solicitation, plans, and specifications. Owners typically allow a period of time for bidders’ questions and clarifications; but the quality of this interchange is at best questionable if based solely on a written scope, plans and specifications, and/or a meeting with suppliers.

Design-build, arguably a step in right direction, falls short of bringing all stakeholders together. More responsibility of design and construction is shifted to the contractor and/or A/E. However, the dual level participation structure doesn’t assure the interests of all parties are equally addressed. Furthermore, the design-build process is typically reserved for major new construction projects versus the numerous sustainability, repair, renovation projects, and minor new construction projects typically encountered by facility managers (fms).

Because BIM brings together previously disparate information into a framework that enables decision support, using the technology requires a collaborative construction delivery method. The integration of the domain knowledge and robust processes required to allow fms, A/Es, and other stakeholders to achieve heightened levels of information sharing and collaboration is enabled by methods that include Integrated Project Delivery (IPD) and Job Order Contracting (JOC).

Key characteristics of these emergent construction delivery methods include: choices based on best value; some form of pricing transparency; early and ongoing information sharing among project stakeholders; appropriate distribution of risk; and some form of financial incentive to drive performance.

Both IPD and JOC allow, if not require, owner cost estimators and project managers to “partner” with contractors, subcontractors, and A/Es to conceptualize, create, cost, prioritize, start, and report upon projects—in the very early phases of construction.

IPD, JOC, and Simplified Acquisition of Base Civil Engineering Requirements (SABER)—the U.S. Air Force term for applying JOC practices—are practiced simultaneously by a growing number of organizations and supported by digital technologies. These construction delivery processes are embedded within software to allow for rapid, cost-effective, and consistent deployment as well as the associated level of collaboration and transparency.

BIM and cloud computing are disruptive technologies that will accelerate the adoption of emergent construction delivery methods such as IPD and JOC. Construction delivery methods set the tone and level of interaction among project participants and can be viewed as the management process framework. When supported by BIM and cloud computing, the life cycle management of the built environment, and the associated management of big data, can be expected to become commonplace for many construction projects.

Cholakis

Cholakis is chief marketing officer for 4Clicks Solutions, LLC, a Colorado Springs, CO provider of cost estimating and project management software. With expertise in facilities life cycle costs and total cost of ownership in various market segments, he is involved in numerous industry associations and committees including the American Society of Safety Engineers, Association for the Advancement of Cost Engineering, Society of American Military Engineers, BIM Library Committee-National Institute for Building Sciences (NIBS), and National Building Information Model Standard Project Committee.

¹ “The Art of Thinking Outside the Box;” Vince Duobinis; 2008.

Is Cloud Computing More Important than BIM?

Is focus upon the 3D component of BIM an unfortunate distraction?

BIM, Building Information Modeling is the ability to create a dynamic information model of the built environment (above and below ground, inside and out, horizontal and vertical physical infrastructure) for use in all real property related activities:  concept,  rapid prototyping, planning, design, engineering, construction, physical and functional condition monitoring and management, financing, capital reinvestment, insurance, facility management, renovation, repair, sustainability, utilization, leasing, valuation, procurement, sale and decommissioning  with appropriate shared, secure, and collaborative information access and use.

The advent of Cloud Computing, combined with the cost to capture, store, and process information  falling to near zero,  is enabling new capabilities for secure, real-time collaboration.

The altered world landscape relative to the built environment is upon us all.  In addition to technology changes that are altering the ways we interact and conduct business on fundamental basis, there are economic and environmental imperatives.   All of which lead to the AECOO (Architecture, Engineering, Construction, Operations and Owner) sector and its stakeholdings needing to collaborate to achieve better, quicker outcome,  at less cost,  and with less risk.

Key challenges to BIM in terms of its true potential, the life-cycle management of the built environment, include:

- The development of uniform standard process, terminology, and technology environments for the new BIG DATA world , encompassing  all  ‘built environment related knowledge domains, competencies, and activities.   

- Clear organization and classifications of information and associated access  rights and rights to use, enabling appropriate, uniform basis intra and international use.

- Workflow-based  Cloud-computing services environments, and plug-ins that are vs.  monolithic traditional software frameworks which are web enabled via virtual server, or even traditional 3-tier web applications such as .NET.   4-tier applications are needed with the ability to link and reuse  information in any manner  relative  to identity/location, building, area, floor, room, occupancy, use, physical and functional conditions,  standardized and actual costs (material, equipment, and labor), et al… – to provide common ‘highly secure’  models for short and long term decision support.

– The acceptance and increased use of collaborative construction delivery methods such as Integrated Project Delivery (IPD) and Job Order Contracting (JOC).  The latter a form of IPD specifically targeting facility renovation, repair, sustainability, and minor new construction projects.

-  AUTHENTICATION, ACCESS CONTROL, COLLABORATION, AND STANDARDS …  4Clicks Solutions is about to release a powerful new Cloud Computing solution called CEASEL. It focuses upon transparent construction cost estimating and efficient project delivery.  Each user to controls their own ‘domain’ and access policies (ie ‘who’ can access ‘what’ data, ‘when’ and ‘how’ ). Data in NEVER deleted and  ALL user access and activities are tracked.. .the best form of security.    “Data independency” and  appropriate access for all asset owners, managers, and service providers is supported.   Project development time is reduced because users don’t need to create an identity store and access control system for each project, and projects, estimates, etc. can easily be updated and re-used.

New authentication methods or new kinds of user credentials can be adopted by upgrading just the authentication service.  Associated contracts,  projects, and estimates don’t need to be re-coded.  Changes to access control policy can be made quicker and more easily because it is consolidated in the one place. 

Dedicated and focused security service leads to better overall security – compared with each organization having a part-time resource for security management. 

Security improvements benefit all projects at the same time. 

Less time and effort is devoted to security administration as administrators only need to understand and use one security framework rather than a different one for each project.

Errors are reduced because there is no duplication of identity data and access control policy.A unified view of identity and access control policy is achieved for each user, without breaching the security of other users.

Simplified , auditing and reporting.

If you are interesting in being a pilot user of this new capability, please contact me directly.

 

BIM Evolution

In the long history of humankind, those who learned to collaborate and improvise most effectively have prevailed.
– Charles Darwin

BIM, the life-cycle management of the built environment supported by digital technology, requires a fundamental change in how the construction (Architects, Contractors, Engineers) and facility management (Owners, Service Providers, Building Product Manufactures, Oversight Groups, Building Users) sectors operate on a day-to-day basis.  

BIM, combined and  Cloud Computing are game changers.  They are disruptive technologies with integral business processes/practices that demand collaboration, transparency, and accurate/current information displayed via common terminology.

The traditional ad-hoc and adversarial business practices commonly associated with Construction and Facility Management are changing as we speak.    Design-bid-build and even Design-Build will rapidly go by the wayside in favor of the far more efficient processes of Integrated Project Delivery – IPD, and Job Order Contracting – JOC, and similar collaborative programs.  (JOC is a form of integrated project delivery specifically targeting facility renovation, repair, sustainability, and minor new construction).

There is no escaping the change.   Standardized data architectures (Ominclass, COBie, Uniformat, Masterformat) and cost databases (i.e. RSMeans), accesses an localized via cloud computing are even now beginning to be available.   While historically, the construction and facility management sectors have lagged their counterparts (automotive, aerospace, medical, …)  relative to technology and LEAN business practices, environmental and economic market drivers and government mandates are closing the gap.

The construction and life-cycle management of the built environment requires the integration off several knowledge domains, business “best-practices”, and technologies as portrayed below.   The efficient use of this BIG DATA is enabled by the BIM, Cloud Computing, and Integrated Project Delivery methods.

The greatest challenges to these positive changes are  the CULTURE of the Construction and the Facility Management Sectors.  Also, an embedded first-cost vs. life-cycle or total cost of ownership perspective.  An the unfortunate marketing spotlight upon the technology of 3D visualization vs. BIM.   Emphasis MUST be place upon the methods of how we work on a daily basis…locally and globally  − strategic planning, capitial reinvestment planning, designing collaborating, procuring, constructing, managing and operating.  All of these business processes have different impacts upon the “facility” infrastructure and  construction supply chain, building Owners, Stakeholders, etc., yet communication terms, definitions, must be transparent and consistently applied in order to gain  greater efficiencies.

Some facility life-cycle management are already in place for the federal government facility portfolio and its only a matter of time before these are expanded and extended into all other sectors.

BIM, not 3D visualization, but true BIM or Big BIM,  and Cloud Computing will connect information from every discipline together.  It will not necessarily be a single combined model.  In fact the latter has significant drawbacks.    Each knowledge domain has independent areas of expertise and requisite process that would be diluted and marginalized if managed within one model.   That said, appropriate “roll-up” information will be available to a higher level model.   (The issue of capability and productivity marginalization can be proven by looking a ERP and IWMS systems.  Integration of best-in-class technology and business practices is always support to systems that attempt to do everything, yet do not single thing well.)

Fundamental Changes to Project Delivery for Repair, Renovation, Sustainability, and New Construction Projects MUST include:

• Qualifications Based or Best Value Selection
• Some form of pricing transparency and standardization
• Early and ongoing information-sharing among project stakeholders
• Appropriate distribution of risk
• Some form of financial incentive to drive performance / performance-based relationships

BIM Life Cycle Operations IFMA Community of Practice Business Meeting – BIM for FM

BIG DATA – BIM Framework

See more at: http://www.gosee.tv/bimlco/

Project Delivery Methods FINAL FOR PRESENTATION

IFMA OCTOBER 2012

National Construction Contracts and Law Survey – UK – 2012

NBS National Construction Contracts and Law Survey 2012

by Adrian Malleson
Research and Analysis Manager, RIBA Enterprises (Source: http://www.thenbs.com/topics/ContractsLaw/articles/nbsNationalConstructionContractsLawSurvey2012.asp?utm_source=eNews-Weekly&utm_medium=email&utm_campaign=2012-07-09)

From March to April 2012,  NBS a survey about contracts and legal issues within the UK construction industry.  to understand, among other things:

• The different contracts and procurement methods being used
• At what point in the process contracts are signed
• The number and kinds of disputes taking place
• How frequently partnering or collaborative working are used in construction projects.

To help the survey get industry wide representation more than 20 industry bodies, including the RIBA, assisted by getting their members to take part. Over 1,000 responses from across the industry were received.  This cross industry participation has meant that, for the first time, the UK now has had a broad based, independent survey of these areas. The responses weren’t just from architects and other consultants: clients and contractors took part too and the report breaks down responses by each group.
The findings give a full and at times startling picture of the UK construction industry’s relationship with contract and law.

In some ways, the industry remains rather traditional.  Collaboration, team integration and partnering have, at best, only been partially realised.

When we look at the contracts the industry uses, we see that traditional forms of contract still dominate. Sixty per cent of respondents tell us that the JCT Contracts are the ones they use most often, and 72 per cent of people used JCT Contracts at least once in the last year. That said, the NEC Contracts, associated more with non-traditional, collaborative working and procurement, have a firm place in the industry. Sixteen per cent tell us they use them most often and 29 per cent have used them at least once in the last year. For standard forms of contract, JCT and NEC dominate; together they are used more than all other standard contract types combined.

That said, “bespoke” contracts are widely used too; almost one quarter of respondents had used them in at least one project in the last year. Twenty years ago, the Latham Report concluded: “Endlessly refining existing conditions of contract will not solve adversarial problems. Public and private sector clients should begin to phase out bespoke documents“. That “phasing out” is turning out to be a long process – but one we’ll be able to track with subsequent surveys.

The adoption of electronic working also shows the traditional ways of working still remain. While we continue to envisage an electronic future of BIM orientated, collaborative working, more than 40 per cent of consultants and clients are still not using electronic tendering at all. There’s work to be done.

The report also gives an understanding of the number of disputes: both the perceived trend in the number of disputes in the industry and the number of disputes actually gone into by respondents.

Ninety-two per cent of the respondents agreed that the number of disputes in the sectors had either increased or stayed at the same level, with the current state of the economy being most often described as the cause. This somewhat dark assessment is borne out by almost one quarter of those taking part in the survey having been involved in a dispute during 2011.

It’s significant that 49 per cent of contractors who completed the survey tell us that “poor specification” is a “most difficult or recurrent issue” leading to dispute.

Together, the issues people gave as the causes of dispute make clear the need for jointly owned, standardized information. A clear information model including tight specification and variance tracking can help prevent legal action later.

So, the overall picture that emerges is one of an industry that still makes use of traditional methods but which sees the place for more innovation.

In many of the comments people made when completing the survey we could see a real desire for construction to be a collaborative, team-based enterprise where extra value is generated through cooperation. We hope to be moving towards a more collaborative industry. This move towards collaboration goes hand in hand with the move towards shared, co-owned information as well as in the choices of contracts and working methods.

One of the most, if not the most, significant impediments to true team working and collaboration is legal dispute whether actual, threatened or envisaged. The survey uncovered these disputes are disruptive, expensive and not uncommon. That’s why from the outset, projects need standardized, shared information models that are easy to update, maintain and act upon. These need to clearly delineate where risk and responsibility lie. That’s not to say the solution is just a technical one, or one of keeping records, though doing these things well can only help. Any information model, any discharge of a contract, can only be as successful as the team that creates and uses it.

National Construction Contracts and Law Survey 2012

Hope you enjoy reading the full report.

via http://www.4Clicks.com – Premier software for construction cost estimating and efficient, collaborative project delivery – JOC – Job Order Contracting, SABER, IDIQ, SATOC, MATOC, MACC, POCA, and BOA.  Exclusive provider of  400,000+ enhanced RSMeans Construction Cost Data.

A Framework for Efficient Life-cycle Management of Facilities

Major Impacts Associated with Mismangement of Physical Infrastructure

Unfortunately it is a present fact that Capitol Hill has let the Country down. Republicans, Democrats… it doesn’t matter…  the sole clear focus of the Senate and Congress is upon self interest, party politics vs. doing their duty… serving the Country and the People.

One of the several roles of government is to maintain, preserve, and help to manage our buildings, roadways, bridges, and utility systems.    Due to the shear scope involved, Federal, State, County, and Local Governments must collaborate to simply plan for  and fund the immense costs of managing the built environment.

It likely that more that 2.2 trillion dollars (American Society of Civil Engineers reports) is needed to bring current infrastructure up to date… and this figure is likely understated.   What better way is there to actually grow our economy and secure our future than to invest here?   Furthermore the costs of not doing this work range from nearly $100 billion dollars in increase motor vehicle costs due to poor roadway systems, continued pollution and energy depletion from outdated building systems.

Unless we act now to make the investments we need, jobs and wealth will move away from the United States at an ever-increasing pace, wages here will be depressed at an even greater rate, and the social strain on families and communities will increase.  Furthermore, from a global competitiveness perspective, virtually every other nation is moving faster than the U.S. relative to infrastructure investment.

On the other side of the equation, our construction sector remains unproductive and rampant with waste due to antagonistic and out dated construction project delivery methods.   Design-bid-build does little but fund greed and fill our courtrooms.  Even “newer methods” such as design-build, are only partial solutions.

Integrated project delivery (IPD) and job order contracting (JOC) are examples of proven construction delivery methods that focus upon collaboration, transparency, and performance.   These types of processes should be mandated and enhanced.

 

via http://www.4Clicks.com – Premier software for cost estimating and efficient project delivery – JOC, SABER, IDIQ, IPD, SATOC, MATOC, MACC, POCA, BOA.

 

 

BIM Collaboration – Fact or Fiction?

BIM Collaboration – Fact or Fiction

As members of the AECOO¹ Community and stewards of the build environment, it is our obligation to collaboratively address our industry-specific productivity and business process issues as well as the our lack of significant progress relative to addressing environmental impacts.

Truth be told, there is only one significant barrier to efficient AECOO practices and it is our existing culture of mistrust, lack of open communication, and reliance upon antagonistic construction delivery methods.

The design-bid-build construction delivery method and associated practices such of awarding contracts to the lowest bidder do little more than a fuel to the fires of waste, protracted project timelines, change orders, and legal disputes.

Also, focus upon symptoms such as lack of effective technology usage and associated interoperability issues, have done little to drive change.  That said, it may be technology that is the acts as the catalyst to tear down the walls of mistrust and silos of independent groups and activities.

Cloud computing and associated social networking have already begun to dramatically alter the world and stand ready to forcefully impact the AECOO community.

A simplified, however, powerful definition of BIM is “the efficient life-cycle management of the built environment supported by digital technology”.   Achievement of this goal requires the integration of multiple knowledge domains and associated processes, procedures, and activities, which to date have been managed in isolation.   While detailed knowledge of each domain will remain a challenge, sharing of critical information with multi-disciplinary impact can be achieved if communication barriers are removed.   Cloud computing, social networking, and the associated use of integrated project delivery methods² will provide the basic foundation upon with BIM will be enabled.  An an actionable framework for professional AECOO collaboration, and increased productivity is on the horizon.   The timing and success, however, is totally dependent upon transformational changes regarding the ways in which AECOO professionals communicate and deliver their services.

 

1-Architerture, Engineering, Construction, Owners, Operations

2-Current examples include integrated project delivery (IPD) for new construction and job order contracting (JOC).  The latter is a form of IPD specifically targeting renovation, repair, sustainability, and minor new construction.

 

 

 

via 4Clicks Solutions, LLC – Premier software for cost estimating and efficient project delivery – Job Order Contracting – JOC, SABER, IDIQ, SATOC, MATOC, MACC, POCA, BOA, IPD …. and best implementation of RSMeans Construction Cost Data, including enhanced 400,000+ line items with detailed descriptions and modifiers.

BIM Construction Cost Estimating – Top Ten List

First and foremost BIM is the life-cycle management of the built environment supported by digital technology.  While the industry is currently fixated upon 3D visualization tools, aka Revit, Archicad, Bentely… they only represent components of a BIM solution.

Construction cost estimating, and facility life-cycle cost estimating are critical components of any facility design, project delivery, repair, renovation, sustainability, or planning function.

Here’s a list of BIM Construction Cost Estimating Requirements:

1.  Collaboration – involvement of all stakeholders – Owners, AE’s, Contractors, Oversight Groups, Community …

2. Transparency – Appropriate access to cost information, and associated comparison to published independent third-party costs such as RSMeans Cost Data.

3. Consistent Format and Terminology – Use of a standard set of terms and data architectures such as Uniformat, Masterformat, Omniclass.

4. Metrics and Benchmarks – Time, Accuracy, Cost

5. Proper allowances for local conditions – geographic, weather, productivity of labor, …

6. Appropriate level of technology to assure productivity, collaboration, security, audit trail.

7. Robust Process – The application of a robust process and business “best-practices” with a focus upon continuous improvement.

8. Appropriate knowledge of all “levels” of construction cost estimating and their potential accuracy – Square Foot / Conceptual / Building Level Construction Cost Estimating, Assembly / System Level Construction Cost Estimating, Unit Line Item Construction Cost Estimating.

9. Knowledge of the impact of the Construction Cost Delivery Method upon construction costs and life-cycle costs – Design-Bid-Build, CM@Risk, Design-Build, Job Order Contracting, Integrated Project Delivery

10. Fundamental understanding of Total Cost of Ownership and Facility Life-cycle Management – Physical and functional conditions, Operations, Sustainability, Renovation, Repair, Efficient Project Delivery Methods ( IPD-Integrated Project Delivey, JOC – Job Order Contracting )

Construction Cost Estimating Software vs. Spreadsheets – State of the Nation 2012

While accurate, timely, and transparent cost estimating is critical to the success of any renovation, repair, sustainability, or new construction project, most construction cost estimators (over 55%) continue to rely primarily upon manual methods, hard copy documents, or electronic spreadsheets such as Microsoft Excel.

Lack of robust business processes, management practices, proper education and training, and some degree of technophobia endemic to our AECOO industry (Architecture, Engineering, Construction, Operations, Owner) may well be responsible for this “state of the nation”.   Negative impacts of ‘ad hoc’ methods and the failure to adopt robust construction delivery methods and associated supporting software include:  loss of business revenue and lower profit margins, poor productivity, spreadsheet and formula errors, lost information, and poor business decisions.

Construction estimating involves the estimating of material, labor, equipment, overhead/profit and contingencies. Spreadsheets, most commonly Microsoft Excel, are used by more estimators for this purpose (over 40%) than any method, although as many as ten (10) percent or more of construction cost estimators may still rely exclusively upon hand written estimates.  While spreadsheets are relatively easy to master and provide a means to create and report a construction cost estimate and or cost models, their benefit comes largely from their ability to partially relieve estimators of mundane calculations.  Accuracy, however, is not necessarily improved and productivity is not maximized.   For example, data entry remains tedious and prone to error, formula error are common, and collaboration and information sharing are limited. (Christofferson, Jay. “Estimating with Microsoft Excel”, Brigham Young University. Nickols, Robert Duane. “Construction Estimating Using Excel” Lexington Technical Institute, University of Kentucky. Caulkins, Jonathan P., et al. “Do Spreadsheet Errors Lead to Bad Decisions” Carnegie Mellon University)

Sophisticated, Cost estimating and Efficient Project Delivery Software systems are now available, and have been proven over the past decade.  Growing numbers of cost estimators now have the need to work with multiple projects, multiple estimates, and multiple contracts (IDIQ, JOC, SABER…) simultaneously and securely.   These newer Cost estimating and Efficient Project Delivery Software systems, such as 4Clicks Project Estimator, provide these benefits, and more.    A ‘short list’ of additional capabilities includes the ability to work with multiple cost books/guides/UPBs, track project status, automatically compare estimates, easily copy/paste, clone, and reuse estimates, integrated sophisticated visual estimating and quantity take-off (QTO) tools, including pattern search, automatically link specifications to estimates ….
Owners, Contractors, and AEs are moving to advanced cost estimating and management systems, and many oversight groups such are beginning to require their use.

The level of collaboration, transparency, and information re-use enabled by Cost Estimating and Efficient Project Delivery Software drives 15-25%+ reductions in procurement cycles, six to ten times faster estimating, reduce overall project times, as a significant reduction in change orders and the virtual elimination of contract related legal disputes.

White Paper – Cost Estimating Evolution