Why traditional construction delivery is no longer effective and the current and future state of new models for industry transformation.

1. Rex Miller and Dean Strombom April 6, 2011 Becoming the change…

2. When Systems Break Down…

3. it is 2000…

6. 2005 changes strategies

8. April 2008

13. What did Michael Burry see?

14. The Rules Changed

15. Rules Change + Cycle = Results

16. Why did he see it?

18. How Many Trust the Financial System?

19. Digital Age = Speed and Complexity

20. Print Age = The Age of Reason Individual Rational Industrial Organization as machine Command and control leadership Steady and predictable

22. Speed Complexity

23. Not Much Has Changed

24. Old System in a New World Hierarchical Compartmentalized Sequential Checks and Balances Specialists Disconnection Silo’s Out of the Loop Conflict Mis-coordination

27. Signs of a Broken System $500 billion in waste Over 50% is waste 70% late and over budget 48% of Green House Gases

28. 6 Trends Demanding New Behavior The green movement Managing complex risk 3D modeling Manufacturing techniques Lean Offsite Major corporations reducing footprints Digital technology, virtual work and GenY

29. New Rules

30. IPD Essential Elements Early Involvement of Key Participants Risk Allocation Design Optimization Skin in the Game Shared Pain/Gain Efficiency Project Outcome Joint Project Management Commitment Joint Validation of Targets/Goals

31. Teams vs. Players 2004 2008

33. BIG BIM Building (Project) Information (Geometrics) Modeling (Visualization) A way to link & exchange information back & forth, and a structure that allows the information to interact Levels of use, leading to BIG BIM: Static 3D visualization Dynamic 3D visualization Object intelligence Relational intelligence Analytics Simulation Prediction Fabrication Operations Virtual worlds

36. IPD vsIPDish

37. Developer Design-Build 1st LEED Platinum Spec 200,000 sqft $3/sqft less than conventional 100% pre-leased 45% lower operating costs

39. 2N systems redundancy

40. 24 months start-to-finish

41. LEED CI Platinum

42. Outcome Incentives

43. Handshake schedule

45. CMR – BIM Driven BioSquare III Scope: 160,000 GSF Program: lab & office (new) Completion: 18 months Cost: $150/SF First LEED certified lab in Boston 40

46. Full IPD Autodesk Scope: 60,000 GSF Program: corporate office Completion: 8 months Cost: Confidential (under budget) Multiple design awards 100% BIM, 100% IPD, LEED Platinum 41

48. Talk or Walk?

49. Recipe for Success Right Sequence Principles Team Tools Including subs Join the Club Speak Do Promote

50. Good News

51. Strategy Early Adopters Fed Ups Partner for Proof of Concept Cap Risk Create a Brand Promise

53. Call to Action Who are the early adopters or fed ups in your circle? Who would you pick on your team? Do your current values support an open book, shared risk collaborative process? Where can you find an opportunity for proof of concept?

54. What If We Don’t Change Will errors decrease? Will margins rise? Will conflict diminish? Will we maintain a competitive edge? Will safety improve? Will owners walk away delighted? Can we really defend the current system?

55. Contact Information Dean Strombom – Gensler Principal dean_strombom@gensler.com 713-844-0000 Rex Miller – TAG Consulting Senior Partner rmiller@tagconsulting.org 214-498-3055 www.thecrerevolution.com

56. Questions?