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CORE AIA Presentation
- 4. Conventional Situation: Project Schedule & Cost 70% Delivered Late 10% Delivered Early 20% Delivered On Time 73% Over Tender Price 13% Under Tender Price 14% On Tender Price Time – 70% Were Late Cost – 73% Over Budget Source: Adapted from Cain, Clive Thomas. Profitable Partnering for Lean Construction.
- 5. Conventional Situation: Wasteful Process 20% of new materials are dumped during construction 95% of renovation materials go into landfills Poor indoor air quality during/after construction Buildings are the largest consumer of power After construction, buildings continue to use excessive quantities of power
- 7. detailed design development budgeting CDs & project cost construction FF&E move in need identification IT programming bid procurement Process: Conventional Delivery Model pre-construction services construction
- 8. detailed design development budgeting CDs & project cost construction FF&E move in need identification IT programming bid procurement Process: Conventional Delivery Model pre-construction services construction architect hired engineer hired CM/GC hired major trades hired FF&E supplier hired < 100% shared project vision
- 9. shared project vision detailed design development budgeting CDs & project cost construction FF&E move in need identification IT programming bid procurement Process: Conventional vs. Collaborative Delivery Model pre-construction services construction architect hired engineer hired CM/GC hired major trades hired furniture supplier hired < 100% < 100%
- 10. shared project vision Process: Collaborative Delivery Model pre-construction services construction architect hired engineer hired CM/GC hired major trades hired FFE hired < 100% detailed design construction FF&E move in conceptualization criteria design bid procurement detailed design development budgeting CDs & project cost construction FF&E move in need identification programming bid procurement
- 11. effort Process: Conventional vs. Collaborative Delivery Model conventional pre-construction services construction detailed design construction FF&E move in conceptualization criteria design bid procurement ability to control cost cost of design changes lean design team detailed design development budgeting CDs & project cost construction FF&E move in need identification IT programming bid procurement
- 12. effort Process: Conventional vs. Collaborative Delivery Model conventional pre-construction services construction detailed design construction FF&E move in conceptualization criteria design bid procurement ability to control cost cost of design changes lean design team
- 14. detailed design development budgeting CDs & project cost construction FF&E move in need identification IT programming bid procurement Process: Conventional Delivery Model pre-construction services construction architect hired engineer hired CM/GC hired major trades hired furniture supplier hired < 100% shared project vision
- 15. Process: Conventional Delivery Model pre-construction services construction architect hired engineer hired CM/GC hired major trades hired furniture supplier hired < 100% shared project vision detailed design development budgeting CDs & project cost construction FF&E move in need identification IT programming bid procurement pre-construction services construction architect hired engineer hired CM/GC hired major trades hired furniture supplier hired shared project vision < 100% IT detailed design construction FF&E move in conceptualization criteria design bid procurement Collaborative Delivery Model
- 17. What is CORE? An alliance of commercial real estate experts dedicated to the creation and advocacy of effective, sustainable and intelligent workplace environments. General Contracting/Construction Architecture/Design Commercial Real Estate Services Construction Tax Planning Legal Services/Contract Generation Interior Building Products Application: CORE Resources
- 18. SHARED RESPONSIBILITY technology engineer sub trades facilities developer architect broker client dealer contractor manufacturer finance project technology engineer gc/cm/pm sub trades suppliers designer architect broker client client architect engineers general contractor sub trades
- 19. Application: Parallel Path Analysis 70% Delivered Late 10% Delivered Early 73% Over Tender Price 14% On Tender Price conventional methods CORE collaborative method overall schedule reduction finishes, doors & HW data FF&E drywall studs electrical power HVAC, sprinkler, lighting, power, cable tray Moveable walls FF&E HVAC, sprinkler, lighting t-bar, finishes, etc raised floor, power, data
- 20. Our Incentives to Change Net cost same or better Better quality space Employee retention Tax incentives Sustainable real estate User effectiveness Win-win Profitability Alignment to business
- 21. Sustainable Approach to Real Estate Trust Based Beginning to End Process Meets Needs of All Stakeholders Repeatable Framework
- 22. Measured Performance Accelerate Schedule 20 – 40% Reduce Space Requirements 5 – 20% Reduce Lighting Energy Costs 25% Reduce HVAC operating costs by up to 30% Reduce Total Churn Costs 70 – 90% Client Realizes Income Tax Savings 5-9% NPV
- 27. Commercial Building Depreciable Life
- 37. Examples of Eligible Costs Indirect Costs
- 40. Cost Segregation, CTP Example
- 43. Application: Modular Construction Tax Benefits -- 50,000 SF
- 44. Application: Construction Tax Planning additional cost: $90,014 73% of the additional cost 3.4 times the additional cost 2.3 times the additional cost
- 45. Application: Environmental Benefits 95% of renovation is re-used Less wasted materials, energy, and space Breaks the build-demolish-build syndrome Promotes efficient use of floor space Pre-engineered solution uses efficient factory methods Focus on triple-bottom-line: people/planet/profit
Editor's Notes
- 95% of renovation is re-used less wasted materials, energy, and space breaks the build-demolish-build syndrome promotes efficient use of floor space pre-engineered solution uses efficient factory methods Plus, the model is repeatable…also contributing to sustainability
- Trust based turnkey team Early collaboration Built in sustainability Leveraging workplace performance Integrated business development Integrated project development Integrated project delivery Efficiency and Effectiveness…”Rockwell Example”.. Standard model that lets them flex and change through years
- innovative design can save millions of dollars by the time design and development are complete, 85% of capital costs and 100% of operational costs are committed AT THE DESIGN STAGE UP TO 85% OF LIFE CYCLE COSTS HAVE BEEN COMMITTED “ THE CRITICAL POINT BEING IS THAT DESIGN IS CRITICAL AND THE SMALLEST COST COMPONENT OF A BUILDING YET THIS WHERE THE GREATEST OPPORTUNITY EXISTS IN REDUCING CAPITAL AND OPERATION COSTS!
- innovative design can save millions of dollars by the time design and development are complete, 85% of capital costs and 100% of operational costs are committed AT THE DESIGN STAGE UP TO 85% OF LIFE CYCLE COSTS HAVE BEEN COMMITTED “ THE CRITICAL POINT BEING IS THAT DESIGN IS CRITICAL AND THE SMALLEST COST COMPONENT OF A BUILDING YET THIS WHERE THE GREATEST OPPORTUNITY EXISTS IN REDUCING CAPITAL AND OPERATION COSTS! What is the worst thing you can do??? Go back and ask for more money!!!!
- 95% of renovation is re-used less wasted materials, energy, and space breaks the build-demolish-build syndrome promotes efficient use of floor space pre-engineered solution uses efficient factory methods Plus, the model is repeatable…also contributing to sustainability
- Trust based turnkey team Early collaboration Built in sustainability Leveraging workplace performance Integrated business development Integrated project development Integrated project delivery Efficiency and Effectiveness…”Rockwell Example”.. Standard model that lets them flex and change through years
- innovative design can save millions of dollars by the time design and development are complete, 85% of capital costs and 100% of operational costs are committed AT THE DESIGN STAGE UP TO 85% OF LIFE CYCLE COSTS HAVE BEEN COMMITTED “ THE CRITICAL POINT BEING IS THAT DESIGN IS CRITICAL AND THE SMALLEST COST COMPONENT OF A BUILDING YET THIS WHERE THE GREATEST OPPORTUNITY EXISTS IN REDUCING CAPITAL AND OPERATION COSTS!
- Products alone will not deliver a solution you need, but they are rather a function of the complete solution. What makes us successful is the combination of knowledgeable people (not just us but also all the others involved in a project), innovative products and an improved process that re-structures the way in which we approach interior construction. Motivated People does not only refer to us, but also all of the talented professionals that need to be motivated to make a client’s project successful. You can use this slide to talk a little about how we need to work with each individual profession. The problem is that the delivery cycle or “supply chain” of real estate is comprised of many different disciplines or organizations each one delivering on a different step and influencing the outcome based on their own motivation often to the exclusion of others. END USER – Since end-users are the people who have to live with the workspace, they are often the ones most excited about a new solution that delivers unsurpassed levels of flexibility and performance. REAL ESTATE BROKER – A broker’s job is to assist the end-user in acquiring real estate and “broker” the deal between the tenant and landlord. Their services are based on commissions, total sft and lease term therefore their motivation is rarely on actual components and specific performance issues of the final workspace. Ideas such as less sft/person may in fact be contrary to their business model, but those who care about repeat business will do their best to provide the perfect space for their clients. DEVELOPER – The developer is investing in real estate in order to achieve a certain “return”. More and more developers are realizing that their spaces need to contain many of the features of Constructive Solutions such as flexibility and sustainability in order to meet the demands of customers and be “marketable” in the future. ARCHITECT/DESIGNER – This is a group that sees their fees get smaller and smaller while being asked to provide unique spaces in record time. In the past a manufactured solution would mean fast construction, it was nearly always at the expense of design. We offer the speed of manufacturing with the freedom of unique design. We also provide significant resources and internal experts to assist in developing the project solution with them. CONTRACTOR/SUB-TRADES – Worried about losing workload and volume – Contractors and sub-trades can still retain their margins while learning a new and future application that will set them apart from the competition. With our own roots in construction, we understand their world and their challenges and that we think like a contractor rather than a manufacturer. INFORMATION TECHNOLOGY – IT is often an independent silo within the client’s organization and is also often a scope of work that is dealt with separately from the construction scope. Consequently IT departments are used to a lot of control, independence and high budgets for their work. Since they are the ones who will be on the other end of the “Help Line” after all the other team members have left the job, they may resists these concepts due to the anxiety that comes with such fundamental change. However, once introduced to Structured Zone Cabling IT departments will actually find that their daily challenges will be much less tedious and they can dedicate more time to the company’s future. FACILITIES – This is a department not often consulted or involved early in the decision making process and yet they have to inherit the result. They are the ones who best understand the entire facility and can bring the most insight to the table at the beginning. A flexible space is something that will make them an even more dynamic, productive participant in a company’s bottom-line. FINANCE – A holistic financial picture, including downstream savings, potential tax depreciation, leasing and financing options means that the Finance team cares about the big bottom-line rather than first costs.
- A parallel schedule is more efficient with time and labor than a linear schedule which relies on every trade and inspector doing their job on time without any delays. The ability to complete a number of different portions of the job at the same time is much more effective and nothing reflects that better than tilt up construction. All we are trying to do is say, “don’t stop at the base building for these savings, but take the solution in to the corporate interior as well”. This type of scheduling can often produce savings of 20 % or greater within the schedule alone.
- A parallel schedule is more efficient with time and labor than a linear schedule which relies on every trade and inspector doing their job on time without any delays. The ability to complete a number of different portions of the job at the same time is much more effective and nothing reflects that better than tilt up construction. All we are trying to do is say, “don’t stop at the base building for these savings, but take the solution in to the corporate interior as well”. This type of scheduling can often produce savings of 20 % or greater within the schedule alone.
- Science Applications International Corporation