The document discusses the urgent need for innovation in the construction industry to address significant productivity gaps compared to manufacturing. It highlights the potential for substantial efficiency gains through standardized processes, automation, and collaborative technologies, specifically mentioning Aconex as a solution for improving project management and document control. Key performance metrics indicate substantial time and cost savings achieved by leading organizations through digitization and process optimization.

1. Achieve competitive advantage through
innovative process management
With

2. Agenda
Introduction
Industry Success
Live Demo
Q&A
Janet Poses, Aconex
Derek Hoffine, Hensel Phelps
Hannah Hosch, Aconex
All

3. • Project complexity
• Contracting models
• Risk profiles
• Regulatory requirements
• Importance of repeat business
Trends for contractors

4. Copyright©2014byTheBostonConsultingGroup,Inc.Allrightsreserved.
Construction industry: Clear need for action
Wide gap in productivity improvement in manufacturing vs construction in the last decades
253
89
0
100
200
300
20051995 20101990 2000 201519851980197519701965
Labor productivity index1
Construction
Manufacturing
2.8x
1. P. Teichholz, "Labor-Productivity Declines in the Construction Industry: Causes and Remedies (Another Look)", AECbytes Viewpoint #67, March 14, 2013
1/3 automation
2/3 lean approach

5. Copyright©2014byTheBostonConsultingGroup,Inc.Allrightsreserved.
On average > 50% of activities are non-value adding activities
On-site processes
Products Organization
Stocks
Space
Movement
Rework
Waiting
Transport
Waste on construction sites1
0
20
40
60
80
100
%
100.043.5
16.3
12.9
7.0
6.7
6.0
3.3
1.41.30.90.60.1
Movingofmaterials
ofothercontractors
Defect-related
interruptions
Correction
ofdefects
Other
Materialcosts
Personnel-related
interruptions
Transportof
workequipment
Waiting
Cleanup
AV/alignment
andcoordination
Transportof
materials
Value-adding
activities
Total
Waste: 56.5%
1. Scope: time series study, n = 29
?
Waste should be identified in … Proportion of waste in processes
1 2 3
4 5 6
Schedule Deviations

6. Copyright©2014byTheBostonConsultingGroup,Inc.Allrightsreserved.
Increased
system takt
Significant improvements possible with Lean
Total cost of ownership (TCO) with 12–30% savings potential
100
90
80
0
100
TCO savingsService
business
TCO Standardization
and
modularization
Construction
site
management
Total
EPC
savings
Procurement
excellence
Process-based
end-to-end
management
Savings in %
of total cost1
5–15%
2–3%
2–4%
1–3%
2–5%
10–25%
12–30%
6–8% 4–7%10–20%
Time savings in % of
total project duration2
1. Calculation of savings based on the following cost shares: 10–15% planning, 50–60% offer processing incl. purchasing, 25–40% project execution
2. Construction phase corresponds to 50% time share
Note: Excluding levers "acquisition," "risk management," and "Lean organization and enablement," since they are not connected with direct savings; prerequisites
Source: VDMA study on construction site management 2009; BCG project experience
Optimized
service
Economies
of scale
Efficient
processes Product
optimization
Reduced
rework
20–35%Learning effectsIncreased efficiency

7. Process challenges
- Many organizations
- Non standard processes
- Geographically dispersed teams
- A ton of information
- Project complexity
- Differing client requirements
- Siloed systems
Solutions
- Process optimization
- Standardized automated processes
- Centralized management
- Project-wide tools and systems
- Flexible tools
- Secure accessible platform
Process challenges and solutions

8. How to standardize in the dynamic construction environment
Multi-tiered standardization
Universal
Project specific
Project type
Universal

9. Derek Hoffine
Operations Manager
14+ years with Hensel Phelps
“Built to innovate”

10. Hensel Phelps
– Hospitality
– Healthcare
– Aviation
– Federal
– Entertainment
– Correctional
– Aerospace
– Advanced technology
– Education
– Public, etc.
• Founded in 1937 – Greeley, CO
– 8 District Offices Across U.S.
• US National General Contractor
• Annual volume over $3 Billion
• Employee-owned
• Market Sectors:

11. Company culture
• People: Assign qualified, talented personnel and empower them to make decisions.
• Process: Provide our People with proven transitional and facility management
processes and operational procedures to accomplish their tasks and perform their
jobs.
• Partnership: Work collaboratively in a partnered approach with existing vendors,
suppliers, occupants, clients, and other resources without impacting operations.
• Technology: “We combine innovative technologies with time-tested processes to
keep our projects running smoothly through every phase.”

12. Overcoming challenges
• Different sectors
• Different client requirements (i.e. security)
• Project specific processes
• Access to information between platforms
• Access or availability of end user(s) to partner

13. Process management at Hensel Phelps
• Company-wide tools
• Continuous improvement
• Best results for clients
• Standardize when possible
• Configure when needed

14. Benjamin P. Grogan and Jerry L. Dove Federal Building
• $160 Million Design-Build project for the GSA.
• 380,000 GSF, LEED Platinum Core & Shell, LEED
Gold Commercial Interiors
• Tenant: The Federal Bureau of Investigation
(consolidation of South Florida forces)
• Custom design and materials
• 902 calendar days to design, construct, and turn
over facility to GSA, FBI, and O&M team.

15. Handover on a federal government building
Challenges
– O&M team not established
– High turnover ratio
– Security requirements/clearance
– Meeting GSA PBS 100 requirements
– Meeting Program of Requirements (POR)
Solutions
– Handover vehicle that meets client and
tenant security requirements
– Simple navigation tool for O&M personnel
with ease of use
– Secure vehicle for SBU “smart”
documents

16. Manual handover process
• Design in and build space for physical
hand over documents (plans, as-builts,
O&M manuals, etc.…)
• Redundant training of personnel
• Access to information in a timely manner
• Construction personnel frequently
troubleshooting for user one year after
completion of project

17. With handover tool
• O&M Staff well trained and prepared with the
correct tools (i.e. Smart Manuals)
• Efficient and thorough troubleshooting of
equipment
• Reduction in non-valid work orders submitted
during warranty period
• Effective partnering goals with user and O&M
staff at 11-month warranty review
• Summation of final as-builts, approved product
literature, etc.
• Enhanced readable documents and training
video’s housed in one vehicle

18. Process management best practices/lessons learned
• Understand your processes and have a way to measure
process performance.
• Get everyone on the project team on the same page and
system.
• Look beyond the construction phase to realize full ROI.
• Adopt technology solutions that are adaptable to any
processes utilized or required by the project or client.
• Operations is a measure of construction success
– Improved efficiency within the first 6 months of warranty
– Mandatory 11-month warranty walk

19. Why Hensel Phelps chose Aconex on the Benjamin P. Grogan
and Jerry L. Dove Federal Building
• Met client requirements
– Implementation of SBU documents
– GSA Facility Management Guidelines
• Secure Collaboration System
– Meets GSA Firewall Data Workflow
• Project-wide access by all team members
• Easy to deploy
• Intuitive interface for ongoing maintenance
• Collaborative with multiple system interfaces

20. Hensel Phelps streamlines handover process
Benjamin P. Grogan & Jerry L. Dove Federal Building
Challenges Aconex Solution Results
GSA’s security protocols required
 Compliance & confidentiality
Physical handover CDs or binders
 Misplaced handover
information
Special software or training needed for
contractor
 Accessibility = difficult
Streamlined assembly
Documents, designs, decisions, and reviews all
in one place
Secure handover
Asset info + O&M can’t be lost, 100% accurate,
eliminating risk of rework
Instant access
Easily access O&M info from any device =
client satisfaction
$30%
Time saved in compiling handover
materials
Compliance with GSA guidelines
and security
0 support calls
first 6 months = happy clients

21. How BIM can accelerate project-wide
review cycles
Using Aconex to your competitive advantage
Hannah Hosch
Client Services Manager

22. 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
In projects executed
on the platform
$1+
trillion
Documents managed
with complete auditability
1.2+
billion
User organizations
Interfacing efficiently
60+
thousand

23. Connected
Departments
Design
Cost
Schedule
Safety
Contracts
Project performance depends on connected teams
Connected
Field & Office
Subcontractors
Connected
Organizations
Owner
General
Contractor

24. Many-Company
Collaboration
Complex information
exchange between
many organizations
Field focus
Optimise for
field specific processes
Data moving through the
lifecycle
Connected data for
better lifecycle
management
Insights &
Early Warnings
Help users understand
where they can do
better and what to
focus on
Process driven
Facilitating key
processes, including
cost & payments
with focus on user
experience
Improve the lives of our users in Construction & Engineering
Collaboration
between many
companies
Workflow & process
driven
Field
focus
Insights &
early warnings
“Digital Twin”
Tools for your job
The audit trail for the industry
Industry-wide network
What Aconex is delivering

25. Project management challenges
25
53%
said lack of timely
performance data drove
significant overruns
Captures all project process?
Is information credible?
Right level?
Real-time, reliable?
Project S-curve
Measuring project performance across cost & schedule

26. Insights at every level
26
Process
Tasks
Project
Portfolio

27. Connected cost management
Subcontractor
RFI with cost
impact
GC raises
potential change
order
Forecast includes
early warning
Approve contract
change order
RFI captures
cost impact
details
Change order
status Cost impact amount
Point-and-click
report builder
Approved & pending
contract changes captured
A single view across every change order
status & the ability to take action
Manage upstream & downstream
contracts, changes, & pay apps

28. Due dates, status, and days
late for each review cycle
Connected submittals
Summary of overall
progress
Drill into package:
enforce contractual
turnaround times
Track submission &
review status for each
package document
Report on workflow
stages
Connected
organizations
Who is
accountable?
What’s in your court?
What’s outstanding?
When is it due?
What’s the
status?

29. Competitive advantage through innovative process management
• Overview
• RFIs
• Submittals
• Insights and reporting
• Handover
We presented a live Aconex demo. Please get your demo please visit aconex.com/Demo.

30. $5M
in labor savings
over 4 years
75%
reduction in payment
processing time to
contractors
75%
reduction in design
review cycle times
80%
reduction in change
request cycles times
C$798K
projected savings from doc
control costs over next 5 years
50%
Decreases in RFI
turnaround times
50%
decrease in document
processing times
30%
Reduction in time to import
handover information
C$4M
Savings from
printing costs
Leading Organizations Are Seeing The Results Of Digitization
Significant efficiency and productivity gains from automating key project processes

31. Delivering your projects with confidence
Client-centered innovation
• Product roadmap shaped with industry experience
• 200+ strong product development team
Proven engagement model
• Global team of industry experts that understand your business
• Consistent approach and quality with rapid deployment and scale
The leader in online collaboration
• Purpose-built solutions
• Proven success delivering projects and programs around the world

32. 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

33. Our thanks to Hensel Phelps
Learn more at
aconex.com/Video