$4B for Improved Building Energy Efficiency – Obama’s Better Buildings Initiative – Perfect for Job Order Contracting – JOC

Efficient construction project delivery is needed to meet building efficiency targets.  While there have been several attempts to address sustainability and the built environment, the lack of efficient project delivery has impacted progress.

Job Order Contracting / JOC – is an efficient integrated project delivery methods that focuses upon collaboration and longer term relationships between Owners and Contracting, resulting in higher productivity and greater transparency.   It’s time that JOC be implemented Agency-wide throughout the Federal Sector.

President Obama’s Better Buildings Initiative is part of a vision for winning the future by catalyzing a homegrown, clean energy economy in the United States. The Better Buildings Initiative set a national target of improving energy efficiency in commercial buildings by 20 percent by 2020.

Job Order Contracting Process - Deployed via Technology

Achieving the President’s goal will reduce energy bills for American businesses by approximately $40 billion per year. Improving energy efficiency in our nation’s buildings can create good paying jobs in the construction industry.  The Political Economy Research Institute (PERI) at the University of Massachusetts Amherst supported by the Real Estate Roundtable and U.S. Green Buildings Council estimated a potential of 114,000 jobs associated with implementing the Better Buildings Initiative.

It is a trifecta, which is why you’ve got labor and business behind it. It could save our businesses up to $40 billion a year on their energy bills – money better spent growing and hiring new workers. It would boost manufacturing of energy-efficient materials. And when millions of construction workers have found themselves out of work since the housing bubble burst, it will put them back to work doing the work that America needs done. So this is an idea whose time has come. – President Obama

President Obama directed all Federal agencies to make at least $2 billion worth of energy efficiency upgrades over the next two months. Additionally, 60 private companies, hospitals, cities, states, colleges, and universities, among others, have collectively committed another $2 billion in energy efficiency retrofits to 1.6 billion square feet of property.

Goal of improving energy efficiency in commercial buildings by 20 percent by 2020. The initiative will reduce energy bills for businesses by $40 billion per year, and one report found it could create up to 114,000 jobs.
The Better Buildings Challenge is the public-private partnership component of President Obama’s Better Buildings Initiative. The Challenge seeks to catalyze private sector investment and has attracted business and community leaders who are committed to supporting innovative ideas with action, sharing their successes, and creating solutions for others to follow.  TheClinton Global Initiative (CGI) America, former President Clinton, Secretary Chu and Laura Tyson from the President’s Jobs Council announced an initial set of commitments totaling 300+ million square feet and $500+ million in financing support. The President announced commitments totaling 1.6 billion square feet and nearly $2 billion in financing support for building energy upgrades. This includes: Commitments from [60] Major CEOs, Universities, Mayors, Labor Leaders and Others – corporations, hospitals, financial institutions, cities and states, colleges and universities.

Data from the Department of Energy reveals a tremendous potential for efficiency investment opportunities in Federal buildings with less than 10-year paybacks. The Presidential Memorandum also directs Federal agencies to complete evaluations to identify specific energy conservation measures, including estimated cost and return on investment to prioritize and implement those energy conservation measures with the best payback, and to provide transparency and accountability through public reporting of results.

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

 

 

Federal Government to Spend $4.5B on Sustainability

$4.5 billion allocated for spending in 2011 for federal green building and renovation projects.  The  goal of the federal government is a 28% reduction in greenhouse gas emissions  2020.

 

“We have an opportunity to be an example for American building, a proving ground for what works,”  – Bob Peck, Commissioner of public buildings, U.S. General Services Administration (GSA)

 

Sustainability and Federal Government Facilties – A Candid Survey of Federal Executives – GBC and Deloitte – September 2010

Federal agencies and public companies share sustainability challenges, however, JOC / Job Order Contracting provides an efficient Construction Delivery Method to deploy associated renovation, renovation projects for existing buildings.

Unfortunately…

Many respondents believe the level of  effort and resources put towards sustainability by their agency is lacking.  Over half  of  them call the sustainability effort “inadequate.” 

Many of  the roadblocks to sustainability are strategic or cultural.”

A majority (54 percent) of  respondents anticipate the level of  effort put towards sustainability will remain constant.”

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Executive Summary

 
 Federal executives surveyed have taken significant steps to “go green” in their personal lives.  A strong majority (81percent) say they now turn off  lights when not in use.  Almost as many print less, turn off  electronics, use more energy efficient products, or recycle. 
 Federal executives believe they have a responsibility to promote sustainability in their agency as well.  Nine in ten of  those surveyed agree with the idea that they have such a responsibility.  Nearly as many of  them say that they have personally taken action to promote sustainability. 
 Respondents almost universally agree that it is important that their agency implements sustainable practices.  Over 95 percent call it very or somewhat important.  When presented with a list of  three elements of  sustainability and asked to rank their importance, most viewed all three as critical.
 While a “sense of  obligation” is the top reason for going green on a personal level, it ranks fourth among reasons agencies make changes.  Agencies’ moves towards sustainability tend to result from different motivators including fulfilling a mandate or reducing costs.
 Almost all respondents believe it is important to increase sustainability, but most report their agency has taken few actions
to do so.  In fact, on average, those surveyed know of  less than three things their agency has done
Many respondents believe the level of  effort and resources put towards sustainability by their agency is lacking.  Over half 
of  them call the sustainability effort “inadequate.”
  In contrast, four percent say the effort has been “excessive.”  
 Many of  the roadblocks to sustainability are strategic or cultural.  Over a quarter say that sustainability is not an agency
priority, or that there is a lack of  coordination.  Almost as many claim there is a lack of  involvement, enthusiasm, and engagement in “going green” among agency employees.
 Respondents recognize ways in which their agencies could become more sustainable.  Almost 60 percent say that better
education, training, and engagement can help their agency implement more sustainable practices.
A majority (54 percent) of  respondents anticipate the level of  effort put towards sustainability will remain constant.  A significant portion (39 percent) anticipate their agency will be more dedicated to sustainability in the future, while almost
none expect that their agency will be less committed to it.  
 Almost all federal executives (86 percent) say that a primary force driving them to be more sustainable is a sense of 
obligation.  Many also behave more sustainably to save money, while far fewer do so to follow a trend, or because of  social
pressure.

REPORT

Reasons for Agency Action to Increase Sustainability

Executive Order 13514

Strategic Sustainability Performance Plans

Most Important Sustainability Related Goals

Why BIM , IPD , and JOC Must be Accelerated

 Unfortunately, the construction industry has not yet used information technologies as effectively to integrate its  design, construction, and operational processes.  – NIST REPORT

ROI – US Capital Facilities Industry – NIST – While many of us are aware of how inefficient the AEC industry is  in the US, reading this report may provide some valuable insights.

As an industry we remain process and technology adverse.  This simple can not continue if we are to meet sustainability initiatives and compete effectively on a global basis.

BIM can serve as a central repository of INFORMATION, and in concert with other software programs support efficient construction delivery methods such as IPD / Integrated Project Delivery (for new construction) and JOC / Job Order Contracting ( for repair, renovation, sustainability projects), capital planning: CPMS / Capital Planning and Management Systems, space planning: CAFM / Computer-aided space planning, and “movable”  equipment maintenance and repair:  CMMS / Computerized Maintenance Management Systems.

BIM can serve as the centralized repository of standardized, reusable information including demographics, utilization, conditions, costs, projects, programs, contracts, codes, security, safety, …..

Information technologies have transformed many aspects of our daily lives and revolutionized industries in both the manufacturing and service  sectors.  Within the construction industry, the changes have so far been less radical.  However, the use of information technologies offers the potential for revolutionary change in the effectiveness with which  construction-related activities are executed and the value they add to  construction industry stakeholders.  Recent exponential growth in  computer, network, and wireless capabilities, coupled with more powerful  software applications, has made it possible to apply information
technologies in all phases of the building/facility life cycle, creating the  potential for streamlining historically fragmented operations. – NIST Report

 

Facility Life Cycle:  design and engineering, construction, O&M,
and decommissioning;.

Stakeholder Groups:  architects and engineers,  general contractors, sub-constrators/specialty fabricators and suppliers, and owners and operators, building occupants, oversight groups, community.

Sustainability , Existing Buildings , and High Performance Performance Building Management

By now, it should be apparent that construction costs for a high performance building are not significantly high than “traditional” construction.   True, documentation associated with LEED can increase costs, however, LEED is not required, or even recommended for everyone.  

That said, what about existing buildings?  What project provide the highest return on investment? 

Typcially the highest ROI for sustainability initiatives can be achieved through;

1. better utilization of space (occupancy, space type, time …)

2. modification of user behaviors

3. automation (lighting and water controls, HVAC, energy management system(s), occupancy sensors)

4. HVAC (automation, retro-fit)

5. exterior shell improvements (window films, windows, weather sealing)

6. Lighting (high/higher efficiency lighting)

7. Power filtering and power distrbution systems 

via www.4clicks.com

Strong Demand for JOC – Job Order Contracting

Strong Demand for JOC!

Over 200 professionals attended the recent August 19th, 2010 webcast titled, “Job Order Contracting – The Stimulus- Ready Delivery Method”.

The event, jointly sponsored by RSMeans and 4Clicks, drew a wide variety of professionals:  Estimators, Facility Managers, CEOs, Presidents, Asset Managers, Planners, Engineers, Project Architects, Operations Managers, Accountants, Commissioners, Project Managers, and Construction Managers.

Multiple markets also want to learn more about this efficient construction delivery method:  Education, Federal, State, and Local Government, Manufacturing, Retail, and Construction, Architectural and Engineering Firms, and others!

On October 14th, 2010 4Clicks will host “JOC and YOU”. Don’t miss this FREE info-packed webinar intended for Owners, Contractors, and AE’s who like to learn more about automating JOC programs to improve accuracy, efficiency, and compliance.  Whether your want to move away from spreadsheets or are considering a more powerful software program featuring an extended 400,000 line item RSMeans database,  please join us on Thursday, October 14, 2010 at 1:00 pm EST.

RSMEANS Free Educational Webinar – JOB ORDER CONTRACTING JOC , THE STIMULUS (& SUSTAINABILITY) READY DELIVERY METHOD

Register

RS Means JOC Educational Seminar

Facility owners know that changes in occupancy, project requests and building lifecycle and infrastructure needs sometimes arrive quite suddenly with tight completion timelines—-spurring the need for quick and professional construction services to accommodate end user requirements.

Potential solution:  Already have a JOC program in place!

Job Order Contracting (JOC) is a construction project delivery method used by facility owners to access quick and professional contractor performance without compromising pricing predictability. It works
especially well for facility owners who might have high volume and/or backlog of smaller projects (mostly under $1M each), such as those found in educational, medical, municipal and federal facilities.

JOC involves indefinite delivery/indefinite quantity (IDIQ) services—-which is basically an on-going construction services contract for projects yet to be determined by the owner. The method allows for mutually beneficial long-term relationships between facility owners and JOC contractors for construction services.

Therefore, a unique partnering approach to JOC contract management should be considered. This presentation will address what partnering actions owners can take to promote the successful use of JOC at their facilities.

In addition, this presentation will provide an overview of typical JOC contractor- submitted project proposal content as well as basic tips for the owner regarding JOC proposal review.

SPEAKERS
Mark E. Bailey
President and CEO, Centennial Contractors Enterprises, Inc.
Mark Bailey provides vision and direction to employees in over 40 offices across the country, focusing on Job Order Contracting and IDIQ contracts. Mark gained a wealth of field and office experience with a diverse 24 years of construction industry experience, ranging from superintendent and estimator to heavy civil contractor and project manager. He has authored an article about Job Order Contracting for ENR and is a member of the National and Virginia Chapter of Associated Builders and Contractors, Society of American Military Engineers, Design-Build Institute of America and Center for Job Order Contracting Excellence.
Allen L. Henderson
Consultant, Author, Former Facility Manager, Texas State University
Allen Henderson has 35 years of construction industry experience, including over 25 years at Texas State University-San Marcos. A long-time proponent of the JOC method of construction project delivery, Allen is author of Job Order Contracting—Expediting Construction Project Delivery, published by RSMeans, and has given numerous presentations on the subject. He is currently a board member for the Center for Job Order Contracting Excellence.
John R. Murray
Director, State of Missouri Division of Facilities Management
John Murray is the Missouri State Director of Contract Services for the Division of Facilities Management, Design and Construction. John additionally serves as Vice Chairman of the Planning & Zoning Committee for the Village of Wardsville, Mo and as AIA-CEC-MO Liaison Committee member.
MODERATOR
Robert F. Gair
Principal, RSMeans Business Solutions
Robert F. Gair has over 20 years of construction industry experience in cost modeling and job order contracting and is currently responsible for the fastest growing sector of RSMeans businesses. A business analyst with extensive computer technology experience, Bob provides property management solutions to federal agencies such as the Department of Energy, Department of Labor, and State Department. He was also the 2009 Industry Chair for the Center for Job Order Contracting Excellence.