2013 Global Construction Survey

In 2013, KPMG interviewed executives from 165 engineering and construction companies around the world, serving a range of markets including energy, power, industrial, healthcare/pharmaceutical, manufacturing, mining, education and government.

Key findings:

1. “66 percent feel that national governments’  infrastructure plans are the single biggest driver of market growth”

2. Slow recovery / growth continuing with “stable or higher margins”

3. “budget deficits and public funding is the biggest barrier to growth”

4. Growth areas: “power and energy top the list by a significant distance, other target sectors include water, rail, mining, and roads and bridges”

5. Standardization is critical to improving “project and risk management”.  “Whenever new people start on a project, they bring with them different processes. To spread good practices,  contractors can increase their use of… ” cost estimating and …. “project management software and step up training…. consolidate project delivery, and tighten
all leakages as much as possible.”

6. “Become a strategic partner to clients’ businesses By working more closely with clients from all sectors….”

via http://www.4Clicks.com – Premier cost estimating and efficient project delivery software solutions for JOC, SABER, IDIQ, MATOC, SATOC, MACC, POCA, BOA, BOS … featuring an exclusively enhanced 400,000 line item RSMeans Cost Database, visual estimating/automatic quantity take off ( QTO),  and collaborative contract/project/document management, all in one application.   Our technology is currently serving over 85% of United States Air Force bases and rapidly growing numbers of other DOD and non-DOD (United States Army Corps of Engineers,  Army, GSA, Homeland Security, VA..) federal departments/agencies, as well as state/county/local governments, colleges/universities, healthcare,  and airports/transportation.  RSMeans Strategic Partner.

 

 

The Metrics of BIM – The Manage the Built Environment

As the old saying goes…”you can’t manage what you don’t measure”.

 

 

Here’s the beginning of a list of information requirements spanning various domains/competencies, technologies, etc.,
While an important component, the 3D component of BIM has been a very unfortunate distraction.  It appears that many/most have “gone to the weeds” and/or are “recreating the wheel” vs. working on core foundational needs such as the consistent use of appropriate terminology and the establishment of robust, scalable and repeatable business practices, methodologies, standards, metrics and benchmarks for facilities and physical infrastructure management.

It is common terminology that enables effective communication and transparency among the various decision makers, building managers, operators and technicians involved with facilities and physical infrastructure investment and management.

Here are examples of metrics associated with the life-cycle management of the built environment:

Annualized Total Cost of Ownership (TCO) per building per gross area = Rate per square foot

Annualized TCO per building/Current replacement value = Percent of Current Replacement Value (CRV)

Annualized TCO per building/Net assignable square feet = Cost rate per net assignable square feet per building

Annualized TCO per building/Non-assignable square feet = Cost rate per non-assignable square feet per building

Annualized TCO per building/Building Interior square feet = Cost rate per interior square foot per building

Churn Rate

Utilization Rate

AI (Adaptation Index) or PI (Programmatic Index) = PR (Program Requirements) /
CRV (Current Replacement Value)

Uptime or Downtime – Defined in percent, as amount of time asset is suitable for the program(s) served.

Facility Operating Gross Square Foot (GSF) Index (SAM Performance Indicator: APPA 2003)

Custodial Costs per square foot

Grounds Keeping Costs per square foot

Energy Costs per square foot

Energy Usage

Utility Costs per square foot

Waste Removal Costs per square foot

Facility Operating Current Replacement Value (CRV) Index (SAM Performance Indicator: APPA 2003)

Planned/Preventive Maintenance Costs per square foot

Emergency Maintenance Costs as a percentage of Annual Operations Expenditures.

Unscheduled/Unplanned Maintenance Costs as a percentage of Annual Operations Expenditures.

Repair costs (man hours and materials) as a percentage of Annual Operations Expenditures

FCI (Facility Condition Index) = DM (Deferred Maintenance) + CR (Capital Renewal)
/ CRV (Current Replacement Value)

Recapitalization Rate, Reinvestment Rate

Deferred Maintenance Backlog

Facilities Deterioration Rate

FCI (Facility Condition Index) = DM (Deferred Maintenance) + CR (Capital Renewal) /
CRV (Current Replacement Value)

AI (Adaptive Index) or PI (Programmatic Index) = PR (Program Requirements) /
CRV (Current Replacement Value)

FQI (Facility Quality Index) or Quality Index or Index = FCI (Facility Condition Index)+ AI (Adaptive Index)

Via http://www.4Clicks.com – Premier cost estimating and efficient project delivery software for the built environment – , …

Estimating, Project Delivery Methods and Improved Construction Productivity

Accurate construction estimates are a fundamental component of any successful construction project.

The more accurate the scope of a construction project, the more accurate the estimate.

To achieve accuracy in both the scope and the estimate requires collaboration and communication among Owners, AE’s, and Contractors.  Thus, while many/most AEC professionals could likely provide an accurate estimate if provided an accurate, detailed scope of the project, the latter is rare.

The endemic lack of collaboration among Owners, AEs, and Contractors, as well as relatively low percentage of timely accurate construction project scopes are both due to the inconsistent application of robust project delivery methods.

Any significant improvement in construction cost estimating and associated procurement, project management, and actual job-site work must be based in the development and deployment of efficient project delivery methods, such as Integrated Project Delivery (IPD), IPD-lite, Job Order Contacting(JOC).

Accurate scoping requires a knowledge of the construction processes. Unit costs and standardized data architectures and lexicon play key roles in accurately communication project requirements, however, AE, site, and execution components all impact unit pricing.

Converting scope to quantities requires a solid understanding of construction techniques, working with numbers, drawing scales, waste factors, plan reading, conversion factors, labor/material/crew/equipment variables …. and quantity take-off (QTO) and unit, assembly, system, and square foot costs are all important aspects.  For example, professional estimators..whether Owners, Contractors, or Independent,  get their unit costs a wide range of sources… historical information, contractors, trades, business product manufactures, as well as published national average, and localized cost data.
While a  lump sum price is so much more than “just” the total of unit material, labor and equipment costs, unit costs and standardized cost data architecture do, however, help in mitigating “missed items” and in communicating and resusing cost data.

via-www.4Clicks.com – premier software for efficient project delivery – JOC, SABER, IPD, SATOC, MATOC, MACC, IDIQ, POCA, BOA.

4D, 5D BIM can learn a lot from JOC – Job Order Contracting

The destiny of BIM is life-cycle facility management.  When this will happen is anyone’s guess.

In the interim, BIMers and FMers can learn a lot from JOC – Job Order Contracting.  JOC is arguably the best construction project delivery method for facility renovation, repair, and sustainability.

It is efficient (projects take far less time to scope, bid, and start), performance-based (contractors that deliver quality on time and on budge are rewarded with additional work), collaborative (long term, open relationships are the norm), and transparent (reference cost databases and/or custom cost guides are used along with associated standardized templates, reporting methods, etc.)

JOC shares the benefits of IPD (integrated project delivery) however, has a proven 25 years track record of success.

In a time when the economy and global warming force a new focus upon existing buildings and efficiency…. JOC can delivery today.

For these reasons that JOC adoption is rapidly accelerating in government, institution, and private sectors. .. and why BIM can learn from JOC.

4Clicks.JOC.BluePaper June 2010

Creating a Job Order Contract RFPJOC Trust Partnering Relationships

Thinking Outside the Box

Job Order Contracting and LEED

Creating a Job Order Contract RFP

The Value of BIM – Building Information Modeling – IPD – Integrated Project Delivery and JOC (Job Order Contracting)

The true value of BIM in NOT in 3D modeling, clash detection, or providing architects and AEC firms a with a better way to “sell” new projects/buildings.

The value of BIM is in INFORMATION and the associated aspects of collaboration and life-cycle building management / total cost of ownership.

BIM is NOT technology alone, but a business process that is embedded within and support by technology. Autodesk, Bentley, Archicad, et al can not and do not supply BIM. They supply basic components of BIM, the 3D visualization engine and an associated database architecture … (both hopefully based upon open standards or they will be of little value). While all three would argue the point, facts are facts. There is too much domain knowledge required for life-cycle management for a single technology vendor to cover “all the bases”.

It up to Owners, Contractors, AE’s, and the wide range of Consultants and Complementary Technology/Software Providers to deliver true value to BIM – space planning, capital planning, operations and maintenance, costing/cost engineering, standardized taxonomies, metrics, benchmarks, decision support, collaborative project delivery processes, etc. …. components that enable a complete BIM system.

Transparent standardized information, collaboration and technology may someday enable BIM to deliver integrated construction / renovation / repair / maintenance / sustainability project delivery on a life-cycle basis.

In the interim, both JOC (job order contracting) and IPD (integrated project delivery) deliver today relative to exponentially more efficient and transparent construction project delivery methods and processes. Both are superior to design-bid-build, design-build, etc. etc.

Both JOC and IPD demand collaboration and both are performance based. JOC drives the project from concept/scoping through bidding, construction, warranty, and close-out.

IPD currently focuses upon collaboration from project conception through start-up, however, can be easily extended.

The limited view of IPD. The contractual IPD based upon various standardized IPD contracts ( IFoA – integrated form of agreement, etc). While the more important view of IPD is extension of the collaborative processes throughout the project and associated use of technology.

JOC already provides IPD and associated technology for renovation, repair, maintenance, and sustainability projects. It is a proven process, developed by the U.S. military years ago, however, currently, vastly improved through the use of technology such as that provided by e4Clicks (www.e4Clicks.com) and associated reference cost information (RSMeans) or other price “guides”.

JOC ( also known as SABER in the Air Force ) is available today for renovation, repair, and sustainability projects and is proven to improve collaboration and quality as well as reduce costs. Paperwork costs, which average 2-3% of total project costs are mitigated using JOC cost estimating and project management software (such as e4Clicks Project Estimator), while project timelines can be reduced dramatically, providing exponential value.

While the importance of BIM can not be overlooked as it will hopefully reshape the AEC industry, BIM is currently limited to 3D CAD and modest functionality, requiring the integration of third party software for CAFM, CMMS, CPMS, and JOC to reach it’s potential.

BIM, IPD, JOC, and IOC – How to Expedite Facility Sustainability, Renovation, and Repair Projects?

The ability for owners, estimators, contractors, and project managers, to rapidly and accurately conceptualize, create, cost, prioritize, start, and report upon construction projects is required more than ever.

Attainment of this goal requires a process that enables a collaborative environment between owners, architects, engineers, contractors, and sub-contractors.

IOC embeds many of the collaborative aspects of Integrated Project Delivery (IPD) and BIM (Building Information Modeling), however, is fully deployable today.

IOC, or Integrated Order Contracting, integrates all collaborative DOD contracting mechanisms into a single estimating and complete project management system- Indefinite Delivery Indefinite Quantity Contract (IDIQ), Job Order Contract (JOC), Simplified Acquisition of Base Civil Engineering Requirements (SABER), Multiple Award Construction Contract (MACC), Multiple Award Task Order Contract (MATOC), Single Award Task Order Contract (SATOC), and others.

IOC embeds process, workflow, cost guides, document management, and collaborative aspects of all procurement methods to meet the demand for rapid project deployment, enhanced professionalism, efficiency, and transparency.

IOC is a proven construction project delivery framework supported by a robust technology backbone, well suited for meeting demands to expedite economic stimulus and sustainability/green projects faster.

What typically took months can now be accomplished in days.

The ability for owners, estimators, contractors, and project managers, to rapidly and accurately conceptualize, create, cost, prioritize, start, and report upon construction projects is required more than ever.
Attainment of this goal requires a process that enables a collaborative environment between owners, architects, engineers, contractors, and sub-contractors.
IOC embeds many of the collaborative aspects of Integrated Project Delivery (IPD) and BIM (Building Information Modeling), however, is fully deployable today.
IOC, or Integrated Order Contracting, integrates all collaborative DOD contracting mechanisms into a single estimating and complete project management system- Indefinite Delivery Indefinite Quantity Contract (IDIQ), Job Order Contract (JOC), Simplified Acquisition of Base Civil Engineering Requirements (SABER), Multiple Award Construction Contract (MACC), Multiple Award Task Order Contract (MATOC), Single Award Task Order Contract (SATOC), and others.
IOC embeds process, workflow, cost guides, document management, and collaborative aspects of all procurement methods to meet the demand for rapid project deployment, enhanced professionalism, efficiency, and transparency.
IOC is a proven construction project delivery framework supported by a robust technology backbone, well suited for meeting demands to expedite economic stimulus and sustainability/green projects faster.
What typically took months can now be accomplished in days.

JOC – IPD – BIM : A lot in common?

Here is a 4Clicks.JOC.BluePaperfor those interested in learning more about JOC.

JOC is rapidly gaining acceptance and is a much more collaborative, mutually beneficial approach than traditional design-bid-build, design-build, etc. Components of JOC and IPD will be applied within “BIM” and in other facilities management solutions.