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Denver Presentation on Built Industry Culture

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Copyright Collaborative
(SMART)X
Legal Structure
(BIM)X
Tools & Tech
(CM)X
Cultural Change
Embraced
(BUILT)X
Solutions
(BUILT)X
Solutions & (SMART)X
Game Changers
Fixing the built industry's broken culture
(SMART)X
Decisions
(SMART)X
Technologies
(SMART)X
Humans
Collaborative Construction Resources, LLC
Copyright Collaborative
Built Industry Culture – Then & Now
Copyright Collaborative
$21 to $35 trillion in waste
And calling it “waste”
Ignores the ROF
Why our wasteful culture matters
It drains our $70 trillion economy
Sources of Waste
Corruption
Stupidity
Inefficiency
Waste
consumes
30% to 50%
of that $70
trillion!
Studies indicate
30% to 50% is waste
Copyright Collaborative
Construction Waste
Totals 30% to 50%
Potential savings
$1.1 to $2.3 Trillion
Copyright Collaborative
$100 Trillion in
Facilities & Infrastructure
placed over 20 years
Potential savings
$20 to $300 trillion
Over 20 years
Operations & Maintenance
$100 Trillion in F&I
Is 10% to 30%
annually
Annualized cost of
O&M = $10 to $30 trillion
10% Savings = $1.0 trillion
50% Savings = $15 trillion
What's the
ROF related to wasting
$20 – $300 trillion over
5 years?
10 years?
20 years?
Copyright Collaborative
GDP of Colorado in 2013
$260 Billion +
Potential savings
$78 to $130 billion
If waste totals
30% to 50%
Ad

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Denver Presentation on Built Industry Culture

  • 1. Copyright Collaborative (SMART)X Legal Structure (BIM)X Tools & Tech (CM)X Cultural Change Embraced (BUILT)X Solutions (BUILT)X Solutions & (SMART)X Game Changers Fixing the built industry's broken culture (SMART)X Decisions (SMART)X Technologies (SMART)X Humans Collaborative Construction Resources, LLC
  • 2. Copyright Collaborative Built Industry Culture – Then & Now
  • 3. Copyright Collaborative $21 to $35 trillion in waste And calling it “waste” Ignores the ROF Why our wasteful culture matters It drains our $70 trillion economy Sources of Waste Corruption Stupidity Inefficiency Waste consumes 30% to 50% of that $70 trillion! Studies indicate 30% to 50% is waste
  • 4. Copyright Collaborative Construction Waste Totals 30% to 50% Potential savings $1.1 to $2.3 Trillion
  • 5. Copyright Collaborative $100 Trillion in Facilities & Infrastructure placed over 20 years Potential savings $20 to $300 trillion Over 20 years Operations & Maintenance $100 Trillion in F&I Is 10% to 30% annually Annualized cost of O&M = $10 to $30 trillion 10% Savings = $1.0 trillion 50% Savings = $15 trillion What's the ROF related to wasting $20 – $300 trillion over 5 years? 10 years? 20 years?
  • 6. Copyright Collaborative GDP of Colorado in 2013 $260 Billion + Potential savings $78 to $130 billion If waste totals 30% to 50%
  • 7. Copyright Collaborative Percentage of GDP From Various Sectors of the Colorado Economy Construction is 4 to 5% of GDP $13 Billion
  • 8. Copyright Collaborative $100 Billion in Facilities & Infrastructure placed over 7.5 years Potential savings $20 to $300 billion Over 20 years Operations & Maintenance on $100 billion in F&I Is 10% to 30% annually Annualized cost of O&M = $10 to $30 billion 10% Savings = $1.0 billion 50% Savings = $15 billion What's the ROF for wasting $20 – $300 billion 5 years? 10 years? 20 years? The annual value of construction work in CO Approximately $13 Billion
  • 9. Copyright Collaborative RFIS represent 8% to 12% of the cost on most projects More on “failed” projects What's your ROF? Private General Contractor (project wide cost of RFIS) $3,500 for Vertical $5,500 for Roadwork $10,000 for Water Treatment 100 RFIS = $350K to $1.0mm Private Designer in US (internal cost of RFIS) $2,500 100 RFIS = $250K USACE (cost of RFIS to US Government) $7,500 to $10,000 per RFI 100 RFIS = $750K to $1.0mm A built industry example of waste Requests for Information RFIS
  • 10. Copyright Collaborative Built Industry Culture – Then & Now
  • 12. Copyright Collaborative What's a (SMART)X Game Changer? Simple – KISS – Keep it Simple Stupid Scalable – Fit existing systems but expand as necessary Meaningful – Purposefully add value and solve problems Actionable – Deployed in the real world NOW. Relational – Integrate disparate silos & create new connections Transformational – Changes status quo & disrupts stale processes
  • 14. Copyright Collaborative Short Definition of (BIM)X Building Information Modeling & Management Represents design information graphically, virtually & instantly Business Intelligence Modeling & Management Represents business data graphically, virtually & instantly Business Innovation Modeling & Management Represents game changing business models graphically, virtually & instantly (BIM)X enables authoritative capture of information the serves as a shared knowledge resource that enables (SMART)X game changing decisions regarding planning, design, construction, operations & maintenance. (BIM)X googlizes the built environment.
  • 15. Copyright Collaborative Short Definition of (CM)X Change Manifestation – (BUILT)X Solutions utilizing (BIM)X , IPP, IPD, & IOM in 3DTM require (SMART)X Game Changers Construction Management – (BUILT)X Solutions support graphic representations of virtual, physical and future versions of F&I Cultural Metrics – (BUILT)X workshops support changes in cultural mind sets which enable permanent changes in business models (CM)X enables users of (BUILT)X Solutions to ensure the required changes in culture, construction, and business processes manifests themselves virtually, physically and, importantly, over time.
  • 16. Copyright Collaborative Integrated Project Delivery What are the characteristics of IPD? Early engagement of key stakeholders Pain share gain share approach to compensation & risk ADR processes to support private adjustment of legal relationships Collaborative control of the project as a whole Developed project target costs and goals collaboratively
  • 17. Copyright Collaborative Integrating Procurement, Project Delivery, Operations & Maintenance is a (SMART)X Game Changer Integrated Agreements Serve as the Keystone BIM Blocks Carved with (BIM)X Tools CM Blocks Carved with (CM)X Tools IPP-IPD-IOM in 3DTM (BIM)X (CM)X
  • 18. Copyright Collaborative Built Industry Culture – Then & Now
  • 19. Copyright Collaborative Arches Support the Infrastructure of (BUILT)X Solutions (BUILT)X Solutions Rest on a solid infrastructure
  • 20. Copyright Collaborative Arches Support the Infrastructure of (BUILT)X (SMART)X Solutions
  • 21. Copyright Collaborative Construction 2008 BIM is Smart Integrated (BIM)X Is a (SMART)X Game Changer!
  • 22. Copyright Collaborative Built Industry Culture – Then & Now
  • 23. Copyright Collaborative Construction 2008 BIM Tools are used to carve BIM blocks that support the arch Lean Tools are used to carve lean blocks that support the arch Collaborative Agreements The new generation of integrated contracts serve as the keystone in the arch that supports true IPD Integrated Project Delivery A carefully constructed arch supports true IPD So how does IPD work again?

Editor's Notes

  1. 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.
  2. 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.
  3. 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.
  4. 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.
  5. 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.
  6. 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.
  7. 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.
  8. 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.
  9. 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.
  10. 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.
  11. 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.
  12. 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.
  13. 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”.
  14. 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.