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.

Building Information Management Framework – BIMF – People, Process, Technology

While at first perhaps a bit intimidating…  illustrating the life-cycle management within a BIM context is relatively straightforward.

BIM – Life-cycle Management Perspective

 

The purpose of this Framework is to provide  a general guide that your team can quickly customize to your specific requirements.   Like a restaurant menu or a travel guide, you can visualize the resources available and decide on an appropriate strategic configuration of options.

Just begin in the Center and work thru this Action Agenda using, when available and appropriate, tested  processes and templates.   Using these guidelines, set up a BIM Management structure with your stakeholders.

 The Building Information Management Framework (BIMF) illustrates a how people, processes, and technology interact to support the built environment throughout its life-cycle.  Based upon the associated level of detail, an operating model can be developed to more efficiently identify,  prioritize, and meet the current and future needs of built environment stakeholders (Owners, AE’s, Contractors, Occupants, Oversight Groups…)

More specifically, modular, Model View Definitions (MVD), associated exchange specifications and common data architectures [for example: Industry Foundation Class (IFC), OMNICLASS] can  help to integrate multi-discipline Architecture, Engineering, Construction (AEC) “activities”,  “business processes”, “associated competencies” and “supporting technologies”  to meet overall requirements with a goal of continuous improvement.

WORK GROUP FORMATION – Roles and Relationships;

PROCESS MAP – who does what, in which sequence, and why;

EXCHANGE REQUIREMENTS & BASIC BUSINESS RULES – Overall guidelines for information integration

EXCHANGE REQUIREMENT MODELS – Specific information “maps”

GENERIC MODEL VIEW DEFINTION (MVD) – Strategic approach incorporating guidelines for information format, content, and use;

MODEL VIEW DEFINTION & IMPLEMENTATION SPECIFICATIONS   – Specific format, content, and use

PROJECT AGREEMENT REQUIREMENTS – LEVEL OF DEVELOPMENT (LOD) – Defined “project” deliverables

(Adapted from: IMPROVING THE ROBUSTNESS OF MODEL EXCHANGES USING PRODUCT MODELING ‘CONCEPTS’ FOR IFC SCHEMA -Manu Venugopal, Charles Eastman, Rafael Sacks, and Jochen Teizer – with ongoing assistance/input from NBIMS3.0 Terminology Subcommittee)

Model View Definitions (MVD) and associated exchange specifications, provide the best benefit if they are modular and reusable and developed from Industry Foundation Class (IFC) Product Modeling Concepts.   Model views and overall life-cycle management are similar in this regard.

Building Information Modeling (BIM) tools serving the Architecture, Engineering, Construction (AEC) span multiple  “activities”,  “business processes”, “associated competencies” and “supporting technologies”, and each may required different internal data model representation to suit each domain.  Data exchange is therefore a critical aspect.   Inter and intra domain standardized data architectures and associated adoption of matching robust processes are really the first step toward successfully managing the built environment.

The Process Side of BIM = Collaboration: People, Process, & Technology

Sustainability of DOD Buildings – Reuse of Existing Buildings

Reusing existing buildings achieves a 15%+ higher return on investment and 20% reduction in greenhouse gases.   It is less  costly and more sustainable to reuse existing buildings.

With 345,000 buildings, with over 105,000 buildings more than 50 years old, the importance of efficient renovation, repair, and sustainability of existing buildings is paramount.

DoD Building Treatment Terms
•“Adaptive reuse & rehabilitation” are terms of art outside DoD
•The DoD term for “major rehabilitation” is “modernization”
•Modernization means: “the alteration or replacement of facilities solely to implement new or higher standards to accommodate new functions or to replace a building component that typically lasts more than 50 years.”
•This study compares the costs and GHG of modernization with new construction

Sustainment/Status Quo
•Formulated for measuring baseline energy consumption
Demolition and New Construction
•LEED Silver certifiable construction – 2009 LEED for New Construction and Major Renovations
Full Modernization with Strict Application of Historic Preservation Standards (HPS)
•Full modernization with a strict application of Historic Preservation Standards ( HPS) and other DoD facility design standards
•LEED Silver
Full Modernization with Strict Application of AT/FP
•Full rehabilitation/modernization but with strict application of Anti-terrorism/ Force Protection requirements through building hardening, seismic and other DoD facility design standards
•LEED Silver

Applicable design standards include:

• Whole Building Design
• UFC 1-200-01 General Building Requirements
• UFC 4-610-01 Administrative Facilities
• UFC 1-900-01 Selection of Methods for the Reduction, Reuse and Recycling of Demolition Waste
• UFC 3-310-04 Seismic Design for Buildings
• DoD Minimum Antiterrorism Force Protection Standards for Buildings
• Secretary of Interior’s Standards for Rehabilitation of Historic Buildings

Findings

• DoD’s Pre-War masonry buildings are an underutilized resource for meeting DoD GHG carbon reduction goals
• ATFP and Progressive Collapse requirements tend to be rigidly and prescriptively applied, raising construction costs and introducing additional Scope 3 GHG emissions
• Prior modernization treatments result in loss of original energy saving design features in Pre-War Buildings
• Differences in GHG in alternatives resulted from the amount of new building materials introduced and transportation of demolition debris
• Cost estimates and construction bid requests should include materials quantities in addition to costs to evaluate and validate GHG impacts.
• Design professionals with practical experience with archaic building materials and systems are critical to the development of accurate planning level specifications
• GHG emission tradeoffs of proposed new materials and building options should be evaluated early in the conceptual design process

Recommendations

• Incorporate life-cycle GHG emissions analysis into DoD MILCON and SRM programs
• Invest in formulation of carbon calculator system
• Place more emphasis on existing buildings as viable project alternatives to meet mission requirements
• Identify characteristic strengths and vulnerabilities by class of building
  Place more emphasis on existing buildings to meet DoD energy reduction goals
• Avoid modernization treatments that result in loss of original energy saving design features in Pre-War Buildings

Efficient project delivery methods are of critical importance to the task of sustainability and life-cycle management of the built environment.   Job Order Contracting ( JOC ), and SABER are proven project delivery methods for renovation, repair, sustainability, and minor new construction.  JOC and SABER are a form of Integrated Project Delivery for existing buildings and infrastructure.

JOC and SABER provide the following advantages to building portfolio Owners:

•Fast and timely delivery of projects.

•Consolidation of procurement – lower overhead cost and procurement cost.

•Contractor and owner efficiencies in prosecution of the work.  Development of a partner relationship based on work performance.

•Virtual elimination of legal disputes, claims and mitigation of change orders.

•Standard pricing and specification utilizing a published unit price book (UPB), typcially RSMeans-based, resulting in efficient and effective estimating, design, and fixed price construction.

A bit more about JOC -

1. “IPD Lite” for Existing Buildings.
2. Consolidates procurement to shorten Project Timelines and reduce procurement costs.
3. Transparency of pricing and procurement compliance through Unit Price Book.  Owner creates internal estimating (IGE)
4. Long Term Facility Relationship increases productivity and enables reiterative process improvements.
5. Quality and performance incentivized through IDIQ form of contract with minimal guarantee and clear maximum volume.

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

• Exclusive 400,000 line item enhancement of RSMeans Cost Data
• Automated Technical Evaluations
• Contract, Project, Estimating, Document Management
• Visual Estimating

Legal and Policy Framework
•National Historic Preservation Act of 1966 ( Amended)
•Energy Policy Act of 2005
•Energy Independence and Security Act of 2007
•Executive Order 13423: Federal Environment, Energy, and Transportation Management (2007)
•Executive Order 13514: Federal Leadership in Environment, Energy, Economic Performance (2009)

AGC – Job Order Contracting Webinar – March 12, 2013

Webinar:   Job Order Contracting

Tuesday, March 12, 2013 – 2:00pm to 3:30pm

Job Order Contracting (JOC) is an innovative delivery method focused on the renovation and repair of large facility infrastructure under a long-term contract.   JOC has been around for a long time but is experiencing an upswing in an era of limited capital dollars and greater efficiency.   Like IPD, JOC focuses on relational contracting, an integrated team, and performance incentives, but JOC is unique in its unit-price structure and repetitive delivery order process.  This webinar will demystify unit pricing, coefficient development, job order scoping and estimating process, and skillsets needed to succeed in JOC. The current JOC market will be framed, with an emphasis on serving owners throughout the building life-cycle.

During this webinar, participants will learn about:

• Compare Job Order Contracting (JOC) to other well-known delivery methods.
• Describe the pricing structure of JOC, identify strategies for developing a coefficient, and understand the basics of line item estimating.
• Discuss the JOC delivery order process, including scoping, proposal preparation, and execution.
• Identify current JOC market opportunities and dynamics, including market segments, contract structure, unit price books, consultants, etc.
• Determine skillsets and culture to be a successful JOC contractor..

Speakers

Lisa Cooley
Consultant, LEED AP

Perfecto Solis
Vice-President of Airport Development and Engineering, DFW Airport

Leo Wright
Vice-President of Job Order Contracting Division, F.H. Paschen

 

 

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Any questions or changes to your registration should be made via email to meetings@agc.org.

via http://www.4Clicks.com – Premier Cost Estimating and Efficient Project Delivery Technology for JOC, SABER, IDIQ, IPD, SATOC, MATOC, POCA, BOA.

The Business Value of BIM in North America 2007 – 2012

The Emperor is still naked!

Is the trend analysis of the Business Value of BIM in North America from 2007 through 2012  reality, or are many of us walking around with rose colored glasses?

I ask you, do you really believe the following statement ” Now in 2012, 71% of architects, engineers, contractors, and owners report they have become engaged with BIM on their projects …”.    If you define BIM as the life-cycle management of the built environment supported by digital technology, I can tell you that either the survey is flawed… a lot of people don’t know what BIM is… or we have a lot of folks inflating the truth.   There is NO WAY 71% of ANY of the groups are “engaged with BIM on their projects”…period, end of story.

Playing with Statistics?   The 71% average appears to have been calculated by taking a simple average of the “adoption rate” from architects, engineers, and contractors” from three size classes of firms “small, medium, and large”.   If I am correct, this is just plan WRONG.   Most firms in the U.S. are small business, thus a weighted average must be applied.   The “adoption rate” for small firms 50%… a number I also believe to be inaccurate.

I just came back from the NIBS Conference.   This is without question, the most valuable, authoritative meeting relative to BIM in the United States.  How many people were there you might ask?   A few hundred at most.

So, what does any of this matter?   Simple really.   Until our industry stops the hype and focus on important issues relative to BIM, we will continue to be mired in inaction.   The AECOO is the most unproductive business sector and also has the lowest rate of technology adoption.  These are facts….   if one wishes to be interested in facts that is.

Here some thoughts as to where emphasis must be placed:

1. Greater adoption and use of collaborative construction delivery methods:  IPD – Integrated Project Delivery, and JOC – Job Order Contracting.  The later is a form of IPD specifically targeting renovation, repair, sustainability, and minor new construction projects.   Let’s face it, 80% or more of all funding for the built environment will be going in renovation, repair, and sustainability.
2. Emphasis on business process, strategy, and standardized terms, metrics, and data architecture vs. technology.   Technology is NOT the problem, is the lack of clear, robust business strategy and processes, and domain knowledge… largely on the part of Owners that is the primary obstacle to progressive change.   Owners write the checks, they are “where the buck stops”.
3. Focus upon life-cycle costs / total cost of ownership, vs. first costs.
4. A bit more on data standards….   OMNICLASS, UNIFORMAT, MASTERFORMAT, COie, IFC, et al… all have there roll.  Some will survive, some may not.   The point is that unless we have standardized terms, definitions, detailed reference and actual cost information (localized materials, equipment, and labors), physical and functional condition metrics, etc. etc. etc.    …  we can’t collaborate or improve productivity!
5. Participation by all stakeholders – Owners, AE’s, Contractors, SubContractors, Building Users, Oversight Groups, Regulatory Bodies, Building Product Manufacturers, Communities, ….

 

 

 

 

2013-WSP Group

BIG DATA = BIM

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 and Change Management – Sustainability and Life-cycle Management of the Built Environment

BIM (Building Information Modeling) is the life-cycle management of the built environment supported by digital technology.    3D visualization vendors have marketed BIM poorly.  Their focus has generally been upon 3D modeling and associated visual objects vs.  the collection and use of valuable and enabling INFORMATION.  Sure 3D visualization is a great tool, and a useful component of BIM, however, it’s not even the most important aspect.

Many, if not most organizations will  require significant “change management” in order to successfully implement life-cycle management / BIM. Owners, AEs, Contractors, Oversight Groups, Business Product Manufacturers,  and Software Vendors  will need to adopt a better understanding of several, currently disparate knowledge domains / competencies and technologies and work towards efficient, transparent information sharing and collaboration among all area, professionals, and stakeholders.

Cloud computing / social media, BIM, and other ‘disruptive technologies’ combined with market demands driven but altered environmental and economic global landscapes will likely help to drive change, however, timing is uncertain.

There is a serious hole in the Architectural, Engineering, Construction and Owner Sectors’ level of understanding of building performance and legacy beliefs and process simply don’t work.   – adaptation of work by Melanie Thompson of Get Sust!

Roadmap

We must  initiate a wider discussion on what constitutes an appropriate, progressive life-cycle management of the built environment.

“We are moving from the era of ‘talking about deployment’ to the era of ‘deployment’ – over the next few decades there will be billions spent on energy-efficiency retrofit projects and it is crucial for policies to be underpinned by reliable technical data and strong evidence of the benefits that can be achieved.” – Bob Lowe, Deputy Director of University College London’s Energy Institute

The effectiveness and efficiency of this deployment will  be dependent upon people asking the right questions.    Efficient project delivery methods such as Job Order Contracting – JOC, a form of Integrated Project Development – IPD, that specifically targets renovation, repair, sustainability and minor new construction will be integral to successful BIM or life-cycle management based solutions.   Collaboration and longer term relationships are primary components of JOC and equally central to BIM processes.

IPD – Integrated Project Delivery and JOC – Job Order Contracting

“… We are in a war-like situation and therefore have to accept a two-stage process: do the best we can with what we’ve got, plus keep on researching.” – Jim Skea, Chair – Sustainable Energy, Imperial College of London

Behaviors across all AECO (Architecture, Engineering, Construction, Owner) professions, building users, and oversight groups must change.  Ad-hoc, inefficient, and adversarial construction delivery methods such as Design-Bid-Build represent a serious impediment to efficient use of resources.  Additionally,  life-cycle management must be addressed on portfolio and local levels within the context specific buildings (or structures), inclusive of type, activity, and utilization. For this we need a fundamental shift in approach, applying the proven as well as yet to be developed methodologies and tools developed.

The impacts of social media and social sciences will expand exponentially.    ” Conventional building researchers are ‘positivistic’ (measuring and monitoring objects and systems) while the social scientists, who inhabit a world of case studies and qualitative data, are ‘interpretivist’.  Interpretivist research include studies of:

• occupants and their engagement with technologies;
• technologies and policy mechanisms in-use (implementation); and
• changes in business models, supply chains, the distribution of risk and responsibility, professional identities, the division of labor and so on.

BIM Strategy FRAMEWORK

Job Order Contracting Process

September 2012 -  via http://www.4Clicks.com – Premier cost estimating and efficient project delivery software for JOC, Job Order Contracting, SABER, IDIQ, MATOC, SATOC, POCA, BOC, MACC ….  featuring exclusively enhanced 400,000 line item RSMeans Cost Data with modifiers and full descriptions.

Dos and Don’ts for your Job Order Contracting Consultant RFP

(reprinted from http://lisacooleyassociates.com/job-order-contract-consulting-rfp-dos-and-donts/)

Dos and Don’ts for your Job Order Contracting Consultant RFP

I’ve had lots of inquiries about my last blog post, and lots of owners have asked specifically what provisions they should avoid to ensure healthy competition on their JOC Consultant RFPs. So, inspired by the Do and Don’t section of a popular fashion magazine, here’s my version for the Job Order Contracting world. All of these contract provisions come from actual RFPs in my files. Names have been changed to protect the innocent.

Unit Price Book: Don’t

“Contractor must prepare a Unit Price Book containing unit prices covering material, equipment and labor costs for various units of construction, and adjusting these costs to current market conditions. The use of generic factors to localize prices is not acceptable. Unit prices for demolition shall be provided for each construction task. “

Unit Price Book: Do

“Bidders may propose their own unit price books, propose to create their own books, or propose the use of unit price books from a third party source, or combination of any of the foregoing. Tasks and prices in unit price book(s) must reflect the local prevailing and other wage requirements of applicable local laws. Books must be updated at least annually. Premiums for restricted area (e.g. prison, airport, courthouse) work and after-hours work will need to be included in the books, or otherwise provided for. The Unit Price Book must contain material, equipment and labor costs for various units of construction, and a mechanism for adjusting these costs to current market conditions.

Describe the research approach of the unit price book, including:

• Number and qualifications of personnel conducting pricing research;
• Anticipated number of material, labor, and equipment line items to be researched and included;
• Price collection methodology;
• Approach to localizing prices;
• Other factors (quantity, conditions, etc.) that are used to modify unit prices;
• Organization of the UPB in both print and electronic form, including demolition tasks; and
• Frequency and methodology for updating unit prices through the life of the contract.”

How to determine JOC consulting and implementation contract provisions

Why: Because there are a limited number of Unit Price Books, this is the place where constrictive language can literally result in NO competition. Price books have in recent years come in two versions—a national pricing book that uses a researched city cost index to adjust costs for a local market, and customized books which assimilate localized research into the deliverable, physical price book. The lines are blurring since current software products automatically apply the city cost index, and line item customization has been introduced to national pricing books to meet specialized client needs. But language barring the use of factors to localize prices can still limit responses to your RFP. A much better approach is to request information in the RFP that helps you understand the methodology and research that goes into creating the UPB, and then evaluating the merits of the deliverable based on that information.

Pricing: Don’t

“The JOC Contract Implementation Services agreement will be a performance-based contract with no fees are paid up-front to the consultant, but a percentage fee is paid for successful issuance of construction task orders resulting from the consultant’s preparation of unit price books and contract bid documents.”

or

“Consultant’s Annual Fee: For the satisfactory performance of all required services hereunder, the Consultant shall be paid an Annual Fee, the amount of which shall be calculated as a percentage of the dollar amount of task orders which are (a) issued to construction contractors utilizing the JOC System, and (b) registered by the Comptroller during the specified year.”

Pricing: Do

The Contract will be set up on a task order basis, using the prices, licensing fees, and rates established in the Pricing Response Form. Individual tasks will be authorized in advance by [owner] along with an agreed upon scope of work, budget, and schedule. Pricing flexibility to accommodate the possible desire on the part of [owner] to perform some services more economically with agency in-house staff or other Consultants will also be weighed. [Owner] may request clarifying pricing information after the proposals have been submitted in order to make fair comparisons between the proposals.

Why: This is another place where the options tend to be mutually exclusive, so if you want to evaluate multiple options, you need to build some flexibility into your pricing portion of the RFP. Pricing goes to the heart of strategic planning for your JOC, and what level of outsourcing vs. internal management and control you desire. You may not have full clarity on those decisions until you have your consultant on board so a menu of pricing options can be appealing.

One effective approach I have seen recently is to carefully outline all acceptable pricing structures and populate the pricing form with all of them. Then, an offeror can fill out the pricing structure they desire, and zero out the others. Such a flexible pricing form might include a % of volume, burdened hourly rates with estimated hours, or lump sum figures for scope of services. We’ll play with some possible structures in a future posting. While evaluating mutiple RFPs with different pricing structures can be challenging, as owners develop lifecycle costing capabilities these can be applied to JOC programs.

Software: Don’t

“There shall be no limit on the number of installations of the software. Software must be accompanied by the following: (i) documentation demonstrating that the Consultant either owns or has a perpetual license to use, and to license others to use, the software, and (ii) a written, non-exclusive license granting [owner] and the JOC contractors unlimited use of the software, including all upgrades thereto, throughout the term of the Contract. Such software must be internet based.”

Software: Do

“Detail the pricing structure and options for the electronic support systems, including licensing agreements, volume discounts, and additional services including technical support and recommended training.”

Why: The former provision is not a typical pricing scenario in the software industry. Typically software is paid for as a perpetual license with additional fees for maintenance, support, upgrades, etc., or on an annual subscription basis which includes the above ongoing services. Most software is priced on a per-user or per concurrent-user basis. To have the maximum number of options presented in the RFP process, an owner really needs to allow the most common software pricing structures. Microsoft Excel wouldn’t be a viable competitor if you wrote the first clause into an RFP for spreadsheet software! Regarding internet access, virtually any software can be hosted in the cloud to provide internet-based service, but there may be advantages to having software installed on your own servers and network. The more open-ended language on requirements for a JOC electronic support system will allow you to consider a variety of licensing and pricing approaches.

Subcontracting: Don’t

“The Consultant is not permitted to enter into any subcontract(s) for consulting services for the JOC System.”

Subcontracting: Do

“The Proposer shall clearly indicate what portions of the scope of work will be subcontracted. Provide an organizational chart of prime and subcontractors to illustration contractual relationships, and clearly indicate in proposal response which entity is responsible for which portions of work.”

Why: Just as you would not prohibit a general contractor from subcontracting specialty work if it was more effective or efficient, you don’t want to constrain a consultant’s means and methods. You want the most knowledgeable, efficient and professional resources working on your project. Some providers do everything in house, some work with partners to provide domain expertise for the full scope of services. You do want to have a clear idea of how the work will be accomplished, who is doing what, and how quality control will be managed, but don’t prohibit partnering approaches that may meet your needs without having a clear reason for doing so.

Are there any other JOC Consultant or JOC System provisions that have tripped you up or led to lack of competition?

via http://www.4clicks.com – Premier cost estimating and project management software solutions for job order contacting – JOC, SATOC, IDIQ, SABER, MATOC, MACC, POCA, BOA, and more.

The Definition of Job Order Contracting – What is JOC?

Job Order Contracting is a collaborative construction delivery method, a type of integrated project delivery (IPD) that specifically targets renovation, repair, sustainability, and minor new construction.

Characteristics  and/or components of JOC program include the following;

1. Qualifications Based or Best Value Selection
2. Some form of pricing transparency- Typically a Unit Price Book (UPB)  containing preset unit prices for construction tasks.  Note: Most JOC programs leverage RS Means cost data to some degree.
3. Early and ongoing information-sharing among project stakeholders
4. Performance-based structure – Some form of financial incentive to drive performance
5. Appropriate distribution of risk
6. A long term relationship (3-5 years) between Owner and Contractor/AE
7. Standard specifications established in a master contract with a summary of work, also   including any specific or client-driven conditions.
8. Facility owner issues a request for qualifications (RFQ), evaluating firms using best-value, performance-based criteria, or an invitation to bid awarding to the lowest responsive and responsible bidder.
9. A guarantee of minimum amount of work for the contractor. This is usually a small amount for consideration – a requirement in most states for contracts.
10. Issuance of contractor’s work orders based on owner’s requirements.
11. Costs for individual work orders are calculated by multiplying the preset unit prices by the quantities multiplied by the contractor’s coefficient.
12. Open communication between facilities team and JOC contracting team, including a kick-off partnering session between everyone utilizing the contract.

 

Advantages typically associated with  JOC – Job Order Contracting Programs:

§    Fast and timely delivery of projects.

§    Low overhead cost of construction procurement and delivery.

§    Development of a partner relationship based on work performance.

§    Virtual elimination of legal disputes.

§    Reduction of change orders.

§    Standard pricing and specification utilizing a published unit price book (UPB),       resulting in efficient and effective estimating, design, and fixed price construction.

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