Denver Presentation on Built Industry Culture

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  • Copyright CCR 2008 The BUILT Alliance works closely with clients to form Collaborative Teams capable of true Integrated Project Delivery. The Alliance helps clients and their Clients achieve Integrated Project Delivery in 3D™ (IPD in 3D™) through the intelligent and effective use of Collaborative Agreements, BIM software solutions, and Lean Construction methods. Collaborative Construction created IPD in 3D™ to help clients craft, negotiate and implement collaborative agreements that harness the power of BIM and Lean Construction methods. IPD in 3D™ empowers clients to achieve integrated decisions, design and delivery in a collaborative environment. The BUILT Alliance will leverage relationships, business connections, academic resources and other tools to help clients tap talent from every corner of the development and construction industry. Potential clients involved in planning, designing, constructing and maintaining facilities and infrastructure of all kinds in every region of the country and around the globe can add value by retaining members of the BUILT Alliance.
  • Copyright CCR 2008 The global $4.6 trillion construction market is incredibly inefficient. Many estimate the waste embedded in the industry to be between 30% and 50%. If we can eliminate just ½ of the existing waste we will save trillions of dollars annually.
  • Copyright CCR 2008 The global $4.6 trillion construction market is incredibly inefficient. Many estimate the waste embedded in the industry to be between 30% and 50%. If we can eliminate just ½ of the existing waste we will save trillions of dollars annually.
  • Copyright CCR 2008 The global $4.6 trillion construction market is incredibly inefficient. Many estimate the waste embedded in the industry to be between 30% and 50%. If we can eliminate just ½ of the existing waste we will save trillions of dollars annually.
  • Copyright CCR 2008 The global $4.6 trillion construction market is incredibly inefficient. Many estimate the waste embedded in the industry to be between 30% and 50%. If we can eliminate just ½ of the existing waste we will save trillions of dollars annually.
  • Building Information Models and the virtual design tools used to create those models – along with Lean Construction tools used to carve blocks on the other side of the Arch – support the Arch that provides support for true IPD. Collaborative Construction’s IPD in 3D™ Program combines the best features of BIM, Lean and Collaborative Agreements in a way that allows stakeholders that utilize the program to achieve Integrated Project Delivery. These innovative business processes save designers, constructors, subcontractors, owners and society at large time and money and result in the creation of facilities and infrastructure of higher quality at lower costs. Strategic Alliance Contracts are one mechanism whereby subcontractors, their fabricators, suppliers and design team can form integrated teams independently. Forming strategic alliances in this manner enable alliance partners to leverage IDP, BIM and Lean processes regardless of whether owners, contractors or primary designers on their projects are utilizing these tools. Essentially, use of these innovative tools for collaboration need not await adoption by owners, general contractors or primary designers.
  • Another key provision of the new generation of Collaborative Agreements is the option of waiving claims related to decisions made by consensus and the waiver of claims for consequential damages by and among the parties to the agreements. These provisions mitigate the risk of disputes be de-valuing litigation. The combined effect of these clauses are a critical feature of a fully functional Collaborative Agreement. Such waivers do NOT mean the parties will never disagree or have disputes; the waivers simply mean an entire category of claims will be eliminated by consensus of the parties. In addition, claims that do surface among the parties should be resolved through a laddered ADR mechanism that culminates in a binding arbitration decision made within the four corners of the Collaborative Agreement. These provisions have the power to substantially reduce litigation and many lawyers, therefore, view such provisions as bad for business. Accordingly, it should come as no surprise, that these provisions are rarely found in traditional construction contracts which generally feature litigation friendly clauses. Allowing specialty sub-contractors to sign Joining Agreements is another innovation that will further reduce claims pursued in court. These Joining Agreements are simply extensions of existing Collaborative Agreements and are designed to support IPD in 3D™ as well.
  • Copyright CCR 2008 The B x UILT x Alliance™ provides members and their clients access to resources necessary to complete facilities and infrastructure projects utilizing BIM and lean processes in an IPD environment. With a potential membership of over 2,000 individuals - from all corners of the AECO Industry – in the Collaborative BIM Advocates group B x UILT x creator Collaborative Construction already has the ability to form sophisticated collaborative teams capable of pursuing, winning and completing work in an IPD environment in every region of the country and in many areas internationally. Membership in the B x UILT x Alliance arms clients with the ability to form integrated and collaborative teams on an inter-disciplinary basis, bringing the best designers, general contractors and subcontractors in the region together under a single collaborative instrument in an environment where the team can achieve true IPD. AECO Industry firms will have the ability to become B x UILT x Certified, a designation that tells owners and other potential collaborative team members that the company and key personnel understand the B x UILT x System and operate collaboratively and effectively in an IPD environment. B x UILT x Certified firms understand BIM X , Lean Construction methods – including lean supply chain management, the Lean Construction Institute’s Last Planner System and other lean tools – Collaborative Agreements, and other innovations related to Integrated Project Delivery. B x UILT x Certified facilities will be planned, designed, constructed, operated and maintained through the use of these collaborative tools. The end result will be increased productivity and efficiency throughout the life cycle of the facility.
  • Another key provision of the new generation of Collaborative Agreements is the option of waiving claims related to decisions made by consensus and the waiver of claims for consequential damages by and among the parties to the agreements. These provisions mitigate the risk of disputes be de-valuing litigation. The combined effect of these clauses are a critical feature of a fully functional Collaborative Agreement. Such waivers do NOT mean the parties will never disagree or have disputes; the waivers simply mean an entire category of claims will be eliminated by consensus of the parties. In addition, claims that do surface among the parties should be resolved through a laddered ADR mechanism that culminates in a binding arbitration decision made within the four corners of the Collaborative Agreement. These provisions have the power to substantially reduce litigation and many lawyers, therefore, view such provisions as bad for business. Accordingly, it should come as no surprise, that these provisions are rarely found in traditional construction contracts which generally feature litigation friendly clauses. Allowing specialty sub-contractors to sign Joining Agreements is another innovation that will further reduce claims pursued in court. These Joining Agreements are simply extensions of existing Collaborative Agreements and are designed to support IPD in 3D™ as well.
  • Another key provision of the new generation of Collaborative Agreements is the option of waiving claims related to decisions made by consensus and the waiver of claims for consequential damages by and among the parties to the agreements. These provisions mitigate the risk of disputes be de-valuing litigation. The combined effect of these clauses are a critical feature of a fully functional Collaborative Agreement. Such waivers do NOT mean the parties will never disagree or have disputes; the waivers simply mean an entire category of claims will be eliminated by consensus of the parties. In addition, claims that do surface among the parties should be resolved through a laddered ADR mechanism that culminates in a binding arbitration decision made within the four corners of the Collaborative Agreement. These provisions have the power to substantially reduce litigation and many lawyers, therefore, view such provisions as bad for business. Accordingly, it should come as no surprise, that these provisions are rarely found in traditional construction contracts which generally feature litigation friendly clauses. Allowing specialty sub-contractors to sign Joining Agreements is another innovation that will further reduce claims pursued in court. These Joining Agreements are simply extensions of existing Collaborative Agreements and are designed to support IPD in 3D™ as well.
  • Another key provision of the new generation of Collaborative Agreements is the option of waiving claims related to decisions made by consensus and the waiver of claims for consequential damages by and among the parties to the agreements. These provisions mitigate the risk of disputes be de-valuing litigation. The combined effect of these clauses are a critical feature of a fully functional Collaborative Agreement. Such waivers do NOT mean the parties will never disagree or have disputes; the waivers simply mean an entire category of claims will be eliminated by consensus of the parties. In addition, claims that do surface among the parties should be resolved through a laddered ADR mechanism that culminates in a binding arbitration decision made within the four corners of the Collaborative Agreement. These provisions have the power to substantially reduce litigation and many lawyers, therefore, view such provisions as bad for business. Accordingly, it should come as no surprise, that these provisions are rarely found in traditional construction contracts which generally feature litigation friendly clauses. Allowing specialty sub-contractors to sign Joining Agreements is another innovation that will further reduce claims pursued in court. These Joining Agreements are simply extensions of existing Collaborative Agreements and are designed to support IPD in 3D™ as well.
  • Building Information Models and the virtual design tools used to create those models – along with Lean Construction tools used to carve blocks on the other side of the Arch – support the Arch that provides support for true IPD. Collaborative Construction’s IPD in 3D™ Program combines the best features of BIM, Lean and Collaborative Agreements in a way that allows stakeholders that utilize the program to achieve Integrated Project Delivery. These innovative business processes save designers, constructors, subcontractors, owners and society at large time and money and result in the creation of facilities and infrastructure of higher quality at lower costs. Strategic Alliance Contracts are one mechanism whereby subcontractors, their fabricators, suppliers and design team can form integrated teams independently. Forming strategic alliances in this manner enable alliance partners to leverage IDP, BIM and Lean processes regardless of whether owners, contractors or primary designers on their projects are utilizing these tools. Essentially, use of these innovative tools for collaboration need not await adoption by owners, general contractors or primary designers.
  • When buildings, warehouses, cars, railroads, trucks and similar physical objects are linked to intelligent data about those objects, especially in real time, important questions about those objects, such as what they are, where they are, when they will arrive on a job site – even why those objects are important to the project -- can be answered more intelligently and more quickly. In addition, owners of a good BIM x will also have online access to the specifications for many such physical objects, or other critical information provided by the manufacturers, suppliers, transporters and even end users of those physical objects. The uses of physical objects that are intelligently linked to real time electronic data about that object are exponentially greater than the uses of “dumb objects”. BIG BIM – as defined in the book “BIG BIM little bim” by award winning author Finith Jernigan – opens an entire new universe of uses for “smart objects” and an entire new universe of services and products will come to be associated with the intelligent use and manipulation of those “smart objects”.
  • Collaborative Construction’s IPD in 3D™ Program combines the best features of IPD, BIM, Lean and Collaborative Agreements in a way that allows stakeholders that utilize the program to achieve Integrated Project Delivery. These innovative business processes save designers, constructors, subcontractors, owners and society at large time and money and result in the creation of facilities and infrastructure of higher quality at lower costs.
  • Denver Presentation on Built Industry Culture

    1. 1. Copyright Collaborative(SMART)XLegal Structure(BIM)XTools & Tech(CM)XCultural ChangeEmbraced(BUILT)XSolutions(BUILT)XSolutions & (SMART)XGame ChangersFixing the built industrys broken culture(SMART)XDecisions(SMART)XTechnologies(SMART)XHumansCollaborative Construction Resources, LLC
    2. 2. Copyright CollaborativeBuilt Industry Culture – Then & Now
    3. 3. Copyright Collaborative$21 to $35 trillion in wasteAnd calling it “waste”Ignores the ROFWhy our wasteful culture mattersIt drains our $70 trillion economySources of WasteCorruptionStupidityInefficiencyWasteconsumes30% to 50%of that $70trillion!Studies indicate30% to 50% is waste
    4. 4. Copyright CollaborativeConstruction WasteTotals 30% to 50%Potential savings$1.1 to $2.3 Trillion
    5. 5. Copyright Collaborative$100 Trillion inFacilities & Infrastructureplaced over 20 yearsPotential savings$20 to $300 trillionOver 20 yearsOperations & Maintenance$100 Trillion in F&IIs 10% to 30%annuallyAnnualized cost ofO&M = $10 to $30 trillion10% Savings = $1.0 trillion50% Savings = $15 trillionWhats theROF related to wasting$20 – $300 trillion over5 years?10 years?20 years?
    6. 6. Copyright CollaborativeGDP of Colorado in 2013$260 Billion +Potential savings$78 to $130 billionIf waste totals30% to 50%
    7. 7. Copyright CollaborativePercentage of GDP FromVarious Sectors of theColorado EconomyConstruction is4 to 5% of GDP$13 Billion
    8. 8. Copyright Collaborative$100 Billion inFacilities & Infrastructureplaced over 7.5 yearsPotential savings$20 to $300 billionOver 20 yearsOperations & Maintenanceon $100 billion in F&IIs 10% to 30%annuallyAnnualized cost ofO&M = $10 to $30 billion10% Savings = $1.0 billion50% Savings = $15 billionWhats theROF forwasting$20 – $300billion5 years?10 years?20 years?The annual value ofconstruction work in COApproximately $13 Billion
    9. 9. Copyright CollaborativeRFIS represent 8% to 12%of the cost on most projectsMore on “failed” projectsWhats your ROF?Private General Contractor(project wide cost of RFIS)$3,500 for Vertical$5,500 for Roadwork$10,000 for Water Treatment100 RFIS = $350K to $1.0mmPrivate Designer in US(internal cost of RFIS)$2,500100 RFIS = $250KUSACE(cost of RFIS to US Government)$7,500 to $10,000 per RFI100 RFIS = $750K to $1.0mmA built industry example of wasteRequests for InformationRFIS
    10. 10. Copyright CollaborativeBuilt Industry Culture – Then & Now
    11. 11. Copyright Collaborative(BUILT)XSolutions...A (SMART)XGameChanger(SMART)XLegal Agreements(BIM)X(CM)X
    12. 12. Copyright CollaborativeWhats a (SMART)XGame Changer?Simple – KISS – Keep it Simple StupidScalable – Fit existing systems but expand as necessaryMeaningful – Purposefully add value and solve problemsActionable – Deployed in the real world NOW.Relational – Integrate disparate silos & create new connectionsTransformational – Changes status quo & disrupts stale processes
    13. 13. Copyright Collaborative
    14. 14. Copyright CollaborativeShort Definition of (BIM)XBuilding Information Modeling & ManagementRepresents design information graphically, virtually & instantlyBusiness Intelligence Modeling & ManagementRepresents business data graphically, virtually & instantlyBusiness Innovation Modeling & ManagementRepresents game changing business models graphically, virtually &instantly(BIM)Xenables authoritative capture of information the serves as ashared knowledge resource that enables (SMART)Xgame changingdecisions regarding planning, design, construction, operations &maintenance. (BIM)Xgooglizes the built environment.
    15. 15. Copyright CollaborativeShort Definition of (CM)XChange Manifestation – (BUILT)XSolutions utilizing (BIM)X,IPP, IPD, & IOM in 3DTMrequire (SMART)X Game ChangersConstruction Management – (BUILT)XSolutions supportgraphic representations of virtual, physical and future versions of F&ICultural Metrics – (BUILT)Xworkshops support changes incultural mind sets which enable permanent changes in business models(CM)Xenables users of (BUILT)XSolutions to ensure the requiredchanges in culture, construction, and business processes manifeststhemselves virtually, physically and, importantly, over time.
    16. 16. Copyright CollaborativeIntegrated Project DeliveryWhat are the characteristics of IPD?Early engagement of key stakeholdersPain share gain share approach to compensation & riskADR processes to support private adjustment of legal relationshipsCollaborative control of the project as a wholeDeveloped project target costs and goals collaboratively
    17. 17. Copyright CollaborativeIntegrating Procurement, ProjectDelivery, Operations & Maintenanceis a (SMART)XGame ChangerIntegrated AgreementsServe as the KeystoneBIM BlocksCarved with(BIM)XToolsCM BlocksCarved with(CM)XToolsIPP-IPD-IOMin 3DTM(BIM)X (CM)X
    18. 18. Copyright CollaborativeBuilt Industry Culture – Then & Now
    19. 19. Copyright CollaborativeArches Support the Infrastructureof (BUILT)XSolutions(BUILT)X SolutionsRest on a solidinfrastructure
    20. 20. Copyright CollaborativeArches Support the Infrastructure of(BUILT)X(SMART)XSolutions
    21. 21. Copyright Collaborative Construction 2008BIM is SmartIntegrated (BIM)XIs a (SMART)XGame Changer!
    22. 22. Copyright CollaborativeBuilt Industry Culture – Then & Now
    23. 23. Copyright Collaborative Construction 2008BIM Toolsare used tocarve BIM blocksthat support thearchLean Toolsare used tocarve lean blocksthat support thearchCollaborative AgreementsThe new generation ofintegrated contracts serve as thekeystone in the arch thatsupports true IPDIntegrated Project DeliveryA carefully constructed archsupports true IPDSo how does IPDwork again?

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