5 Reasons Owners Specify Project-Wide Data Management - Webinar, March 2016
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In this webinar, Chris Bunker of the UK’s Wellcome Trust and Mike Evans of Cambashi Research discussed why owners are increasingly adopting project-wide technology platforms for their projects. We also featured a live demo of Aconex to show how cross-organizational information management can streamline processes from design coordination to approval cycles and handover.
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5 Reasons Owners Specify Project-Wide Data Management - Webinar, March 2016
- 1. 1 Trusted by the world’s largest projects 5 reasons owners specify project-wide data management With
- 2. 2 Introduction Industry Success Live Demo Q&A Mike Evans, Cambashi Chris Bunker, Wellcome Trust Yuval Attias, Aconex All Agenda
- 3. 3 Mike Evans Founder and Chairman Industry knowledge for business advantage 1. Market data 2. Consulting 3. Training
- 4. 4 About Mike Evans and Cambashi • Managed group at Government CAD research institute CADCentre • Sold CAD software in Japan • Founded Cambashi in 1984, customers include: – Microsoft, IBM, HP – Professional Services from Architects to Accountants – Software developers from Autodesk to Xerox – Distributors from two man bands to TechData • Construction Industry a focus area • Highlights – Intelligent Buildings Report – Development of an objective test to calculate costs v productivity gains from upgrading software
- 5. 5 Building users POV - The big picture • After staff, facilities is biggest operating expense • Typically post construction costs are 80% of TCO • To maximize productivity facilities must constantly adapt • Facilities involve long term decisions and long term commitments • 3-way tradeoff: – Facility running cost/ Cost of change/ optimal facility benefit • Most acute in high tech projects e.g. hospitals, plants and utilities • A facility strategy is difficult to devise – Changing needs – Regulatory issues
- 6. 6 Industry perspectives • Constructing Excellence Round Table – Construction industry needs to interact more with owners to be effective in reducing operational costs – Owners need an information management strategy for effective facility operation – Optimising capital and revenue spend to deliver optimum whole life value – Project excellence v. operational excellence • KPMG Construction Survey, 82% expect greater owner/contractor collaboration over the next five years – As the size of the organization grows there is an large increase in dedicated staff to plan and manage projects %
- 7. 7 Benefits of strong collaboration – not new • 10,000 tonnes topside, 6,000 tonnes substructure – First cost estimate : GBP 450 million • A new method of design and construction was developed • 100,000 drafting man hours eliminated in the fabrication yard • Site queries cut from 10,000 to 500 • 35,000 extra man hours in the design phase producing a better, cheaper design BP Andrew Development 1994-1996
- 8. 8 Final CostFinal Cost Loss REWARD RISK CONTRACTORS CONTRACTORS £373m £290m £450m BP Andrew contract structure
- 9. 9 Number of construction managers worldwide 0 200,000 400,000 600,000 800,000 1,000,000 1,200,000 Construction of Buildings Construction of Civil Eng' Projects Other Specialised Construction Activities Non-Construction Industries NumberofConstructionManagers Construction Managers by Region AMER EMEA Other APAC China
- 10. 10 Construction managers by company type 0 500,000 1,000,000 1,500,000 2,000,000 2,500,000 3,000,000 Construction Enginering Service Providers Architecture Owner Operators EPC OO NumberofConstruction Managers Construction Managers AMER APAC EMEA
- 11. 11 Where does technology fit in? Etc. MEP Structural Facility Owner Main Contractors Architects Sub- Contractors Materials Suppliers Regulator Information management, co-ordination and dissemination Information Creation AnalysisVisualisation BIM = Information + Process = Arrows Project Schedule
- 12. 12 More Technology • Requirements modelling – Shape grammar • Capture of existing buildings – Photography – Laser scanning • Capture ‘as progressed’ into model and PM solution • Smart building materials – Sensors everywhere and for everything – IOT – Energy reduction • Point solutions will be fully integrated – snagging, clash detection, energy efficiency, 3D pdfs, cable and pipe routing etc. • Project-wide data and communication management
- 13. 13 Chris Bunker Construction Director Good health makes life better. “We want to improve health for everyone globally by helping great ideas to thrive.”
- 14. 14 A bit of background • Chartered Surveyor • Project manager • 20 years experience delivering capital projects – IBM – Specsavers – British Library – Royal Botanic Gardens, Kew – Royal Parks • Construction Director at Wellcome Trust – Responsible for delivery of large construction and property-related projects
- 15. 15 About Wellcome Trust • Global charitable foundation dedicated to achieving extraordinary • improvements in human and animal health. • Support the brightest minds in biomedical research and the medical • humanities. • Public engagement • Education • Application of research to improve health • Examples: – Sequencing and understanding of the human genome – Research that established front-line drugs for malaria – Wellcome Collection, our free venue for the incurably curious
- 16. 16 Wellcome Trust – project delivery objectives • Delivery of value • Quality • Effective risk management • Efficiencies through standardisation • Change management • Auditability • Highest levels of communication with • all stakeholders • ‘Good client’
- 17. 17 Our project challenges • Early engagement • Coordination of activities across divisions • Non core activity • Project process adoption: • Contractors • Stakeholders • Maintenance service providers • Perception of cost vs value
- 18. 18 Wellcome Collection development project Renovation project scope Destination for the incurably curious • 30% increase in gallery space • Improved visitor flow • Double capacity - public events • Dedicated space for new youth programme • Transformation of the Library’s Reading Room • Double catering capacity - new 80 cover restaurant • Creation of Wellcome Hub • Improved visitor facilities • Open to public during renovation • Originally opened 2007 • Connections between medicine, life and art • Lively public events • World-renowned Wellcome Library • Café and shop • Conference facilities • Target 100,00 visits p.a. • 2010-2011: 470,000 visits
- 19. 19 • Health and safety • Management of reputational risk: internal and external • Complex phasing • Communication across multiple business workstreams • Budgetary control • Mismatch – budget vs complexity • Site conditions due to public access • Schedule deadlines Key issues to be addressed
- 20. 20 Why we specified project-wide data management • Visibility • Control • Accountability • Auditability • Reputation • Reassurance • Fewer errors • Dispute reduction • Management of data • Speed of exchange • Procurement • Snagging coordination Quality, schedule and budget
- 21. 21 Best practices/lessons learned in system implementation • Early planning – business case stage • Be clear on all benefits • Appropriate budget • Stakeholder engagement • Contractual provision • Be realistic – don’t over-engineer • Baseline • Communication • Access • Buy-in • Training
- 22. 22 Engage across the project-wide team • Upfront effort in developing procedures • Communicate • Define standards and stick to them • Training • Communicate • Minimise turnover of key team • Keep it simple • Communicate • Collaborate
- 23. 23 Results/benefits achieved using Aconex • Robust management of challenging contract • Auditability and document retention • Efficient delivery of project to maintenance/ operations • On budget • Quality standards • Reputation
- 24. 24 Putting the money where it is needed the most
- 25. 25 Why owners are specifying project-wide data management Yuval Attias Head of Europe and Africa
- 26. 26 Field Inspections Connecting teams project-wide OperateConstructDesignBidPlan Document Control RFIs & Change Orders Bidding & Tenders Workflows & Approvals BIM Collaboration Submittals Handover to Operations Cost Management Dashboards & Reporting API
- 27. 27 Subcontractor Contractor Engineer PMClient Consultant Single Secure Platform Respects ownership of your data and decisions
- 28. 28 Consultant Client Contractor Connected processes with full visibility
- 29. 29 Scope Changes 40% reduction 10 Days 6 Days Dispute Management 22% reduction 9 Days 7 Days Shop Drawings 43% reduction 7 Days 4 Days Design-reviews 50% reduction 8 Days4 Days RFIs 50% reduction 6 Days 3 Days Driving productivity across the project lifecycle Typical cycle times: Aconex projects vs industry averages
- 30. 30 Specific Project Configuration • Fast setup from pre-configured templates • Local, multi-lingual implementation teams • Unlimited training & support for all project participants Business Unit & Model Flexibility • Configurable platform supports BU needs • Supports full project lifecycle with flexibility for DBB, DB, EPC, JVs, PPPs, etc. Defined Enterprise Standards • Standard workflows, terminology, document & mail classification • Project and enterprise level reporting and insights drive continuous improvement • Risk mitigation by corporate-wide best practice implementation Control across the enterprise Benefits of control and standardization, with flexibility
- 31. 31 Case study: International contractor enterprise portfolio performance 2004 2006 2008 2010 2012 2014 2016 40 35 30 25 20 15 10 5 0 Workflow & Mail Processes Mail Response Times Workflow & mail processes Enabling enterprise performance improvements Days
- 32. 32 Demo: Project-wide data and communication management • Overview • RFI • Workflow • Search • Reporting A live Aconex demo was presented. Visit aconex.com/Demo to see Aconex
- 33. 33 Summary: 5 reasons owners specify project-wide data management • Fewer errors • Reduced disputes • Improved schedule adherence • Increased ability to manage to budget • Better overall building/asset
- 34. 34 Delivering your projects with confidence Client-centered innovation •Product roadmap shaped with experience from the world’s leading construction and engineering organizations •200+ strong product development team •Quarterly release cycle and platform upgrades Proven engagement model •Global team of industry experts that understand your business •Consistent approach and quality with rapid deployment and scale for individual projects and large enterprise rollouts •Global training and support for all participants The leader in online collaboration •15+ years of experience delivering purpose-built solutions •Proven success delivering the largest, most complex projects and programs in the world •Stable, public company (Listed on ASX:ACX)
- 35. 35 Nine of the top 10 global EPCs 23 of ENR’s top 25 global design firms Every Fortune 500 construction and engineering firm More successful projects delivered than any other platform, industry-wide
- 36. 36 Trusted by the world’s largest projects Our thanks to Wellcome Trust and Cambashi Learn more at aconex.com/Demo
Editor's Notes
- Mike: I wrote a program to calculate rebar intervals in 1963, so I’ve been involved with this industry for a very long time. I’ve always found industry, and especially the impact of IT on industry, fascinating and have thoroughly enjoyed being a part of the evolution of process management and technology. Today, robust technology which was once the domain of only the largest and best resourced organizations, is now accessible to project teams of all sizes across industries such as construction, energy, infrastructure world-wide. A couple of our contributions I would like to note: We reported on Intelligent Buildings in 1991, we interviewed about 40 building owner operators to obtain their understanding of and plans for the concept pioneered in the Hartford City Place building by United Technologies. We developed an objective test for an architect/engineer to self-drive that helped calculate the productivity benefits of upgrading to the latest software version. That helped them answer the question “whether or not to upgrade”. Now, let me start with the big picture to give perspective. [CLICK]
- Mike: There are a lot of facts about facilities that we don’t always think about up front when we start the concept and design phases of the project. With facilities being the biggest operating expense after staff and typically post construction costs being 80% of the total cost of ownership, it is no wonder that owners are becoming increasingly involved in specifying that facilities are built with an eye toward the future. To maximize staff productivity facilities must be able to adapt to organizational and technology change and when facilities are built, many long term decisions and long term commitments must be made and there are always tradeoffs. There is a three way tradeoff between the running cost of the facility, the cost of changes to the facility and the cost of any mismatch between today’s optimum facility and the as-is. This complexity increases with high tech buildings e.g. hospitals, plants and utilities So a comprehensive facility strategy is difficult to devise, and that’s before addressing regulatory issues like energy conservation and disabled access.
- Mike: In 1998, the UK government, fed up with a history of AEC industry cost overruns and schedule delays appointed a successful manager from the automotive industry, John Egan of Jaguar Land Rover, to look at the AEC industry with a fresh eye. He came up with an agenda for change that would optimise project delivery. The seminal report, Rethinking Construction, found for example that a great deal of time for tradesmen was lost because of incomplete or delayed material deliveries. Progress has been made on most of the issues identified by that report and there is now an organisation, Constructing Excellence, to carry on that work by promoting best practices in actual projects. This is an initiative driven by building owners and occupiers and I’d like to share a few takeaways from their Round Table discussion on Asset Management Suppliers and the construction industry still are servicing clients poorly in a number of key areas such as standardisation, cost benchmarking, BIM for operational improvement, design in flexibility etc. They need to interact more with users. To deliver successful project/asset performance clients need to stay in control of time, understand project/operational risk profiles and have a knowledge and information strategy in place that allows them to get the data/info they need to effectively operate their assets There are real organisational and process difficulties in optimising capital and revenue spend to deliver optimum whole life cost for clients on their projects/assets People know what project excellence looks and feels like but not operational excellence We are seeing owners becoming more involved, sometimes having in house construction departments and increasingly specifying data management systems to ensure the visibility to information throughout the project and the life of the facility. 82% of respondents in a recent KPMG Construction Survey stated they expect greater owner/contractor collaboration over the next five years. As you can see in the above graph, not surprisingly, larger and more costly projects, being built by larger organizations, are taking this long term view and have a higher percentage of their workforce dedicated to planning and managing construction projects. The general message is that owners are and will increasingly take a more strategic view of the construction part of facilities and asset management as costs and constraints are baked in at an early stage. There must be more interaction. This is a culture change! [CLICK]
- Mike: The benefits of strong collaboration have been known for a very long time. Getting away from the idea that a contract is won with a low bid and then the contractor makes its money on changes from a monopoly position takes some changing. It can be done and here is just one example of a very successful project. In this project owner involvement was increased dramatically. Co-located design teams and strong contractor-owner collaboration allowed substantial productivity improvements. Value and efficiency were first and foremost, from contracting though design and into fabrication, construction and hand-over. The reason I bring up this example is to show the compelling results, but almost more importantly to point out that this type of collaboration, which used to be difficult to achieve and have upfront cost and risk associated with it, is now, with technology, easy, proven and accessible to all projects. However, it requires both a cultural and contractual change. [CLICK]
- Mike: The original cost estimates that came in were 450 million pounds and this was dramatically above the budget BP had for this project in a marginally viable field. BP and the contractors, mainly Brown & Root, now part of Haliburton, but AMEC and Kellogg had a share, agreed an alternative shared risk contracting format. A base contract value of 373 million pounds was estimated. If the project came in under then the underspend would be shared between the contractor and owner. As an incentive the contractor got a bigger share of the underspend. If the project over-ran, the contractor’s revenue was capped so the owner’s risk was limited. This contract changed the culture to increase interaction and positively encourage better working practices. At the end of the day a remarkable 290 million pound budget was achieved. Win Win! [CLICK]
- Mike: The pressure on owner’s facility managers is intense. When there is a big facility project on they are constantly having to make decisions that will affect both cost and flexibility. With the right kind of contract and resources the pressure can be managed. However, often today the reality is that a lot of owner’s facility managers time is spent on fire-fighting issues such as project managing minor works, sorting out problems that shout louder – insufficient directors car parking spaces! If they could focus more on strategic issues and be involved more with win-win contracts with much more owner contractor interaction then there would be better outcomes for their organisations. The slide shows that there are enough trained construction managers in the world. So what’s the problem? [CLICK]
- Mike: If we look at the type of company that construction managers are employed by the answer is obvious. The vast majority of construction managers work for contractors. While the number of construction managers in owners and operators is increasing clearly the majority of projects outsource the construction issues to their contractor or to professional services suppliers. I think it is generally understood that the technology for owners to collaborate with their suppliers is available. However, as the round table I talked about earlier said, this is not yet happening often or well enough. One factor is that there has to be someone in the owner who can communicate peer to peer with their suppliers – it is a resource problem. The technology to gain insight and visibility into a construction project is proven at all scales. We can’t have a webinar without mentioning technology so here goes! [CLICK]
- Mike: I think everyone on the call probably understands Building Information Modelling (BIM). But in case, my short definition is that BIM is a concept of sharing project information among all stakeholders, through the entire lifecycle of a building or facility by developing and maintaining a comprehensive virtual information model accessible to everyone as needed. However, I would just stress a point that is made often – BIM is not a technology, it’s a way of doing things that is enabled by technologies. In bigger projects, there is often recognition of the importance of BIM and Project Management. Even so, there are still serious problems with building materials logistics. If construction industry logistics was up to the standard of the automotive industry it would save lots of money. In refurbishment and minor works, BIM and PM are used less frequently. However, they can give good returns on a portfolio of projects. We’d estimate that while perhaps two thirds of industry actors have experience of BIM, it is now only deployed on about a sixth of projects. A UK report on construction KPIs reported that BIM is used on a small but rapidly growing proportion of projects; 13% of projects completed in 2014 compared to 9% in 2013 and 4% in 2012 BIM encompasses not only current technologies, but also future technology developments. [CLICK]
- Mike: We are seeing technology change and improve almost every area of construction. From the earliest stages of planning through design and construction, even including the building materials themselves. We are sure that there will be a lot more emphasis on better requirements. While ideas like shape grammar have been around for decades the involvement of owners and occupiers will drive better definitions of facility need. Improved technologies to capture the current state of a building to be refurbished and projects in construction will clarify the issues to be addressed earlier and more effectively. The cost of sensors is falling to negligible. They will be found everywhere. Building materials will come with sensors and often software. The tools to develop and manage that software will be part of the BIM concept. There are still a lot of of stand alone point solutions in areas like snagging, energy efficiency etc. These too will be integrated. So we are forecasting more opportunity for owner operators to have a more appropriate and lower cost estate. However, it will be even more complex than it is today. And project and life cycle wide data management solutions involving all the experts and disciplines involved is going to provide the means to benefit from all these advances. So at this point I’m going to hand over to Chris Bunker of Welcome to tell you his first hand experience. [CLICK]
- Yuval: