Job Order Contracting and Efficient Construction Project Delivery for Infrastructure Renovation, Repair, Maintenance, Sustainability, and Minor New Construction

1. Efficient Project
Delivery Methods
for Repair,
Renovation,
Sustainability,
Construction
Prepared for Pentagon/WHS-FSD| October 2014
Peter Nicholas Cholakis
Leading Software Developer/Marketer
Decades of Owner/Contractor Experience
RSMeans Data Experts
Thought Leadership/Education

2. “In the long history of humankind,
those who learned to collaborate and
improvise most effectively have
prevailed.”
– Charles Darwin

3. Today’s Topics
 Importance and currently available collaborative
project delivery methods
 Description of key characteristics of a
collaborative project delivery method
 Roles and responsibilities of Owners, AE’s,
Contractors
 Importance of standardized information and
supporting technology

4. Economic and Environmental Drivers
 Altered World Economic
Landscape
– AECOO Productivity
has DECLINED for
over 40 years
– Budgetary Pressures
 Non-renewable
Resources & Climate
Change
– Built environment is a
major contributor

5. Construction - Fundamental Change
Owners pay the bills:
Thus, it’s the Owner’s responsibility to drive/require LEAN
management processes, education/awareness, and the
adoption of supporting technologies to improve construction
productivity.

6. Industry understanding and support of LEAN processes
(IPD, JOC, PPP…) and life-cycle management.
Factors Affecting Adoption of
Efficient Construction Methods
• Executive leadership & support
• Human resources
• Process & Information needs/capabilities
• Risk perception
• Financial resources
Organizational
Issues
Standards
Market
Factors
• Economics
• Climate Change
• Mandates
• Stakeholder demands
• BIM Ontology
• Cloud Computing
• Integrated Project Delivery
• Education, Support, & Training

7. Requirements for Change – Check List
 A Robust Ontology (Terms, Definitions, and Associations)
 Life-cycle cost focus vs. prevalent first-cost mentality
 Migration from linear strategy-design-construction-
demolish to multi-faceted, cyclical portfolio
management-project delivery-property management
model
 “Trust but measure” – Owners can’t manage what they
don’t measure - Transparency

9. Lifecycle Management
Today’s Focus

10. Traditional vs. Collaborative
Construction Project Delivery Methods
 Design-Bid-Build (DBB)
 Design-Build (DB)
 CM-at-Risk (CMAR)
UNPRODUCTIVE
ANTAGONISTIC / LEGAL DISPUTES MUTUALLY BENEFICIAL RELATIONSHIPS
 Integrated Project Delivery (IPD)
 Job Order Contracting (JOC)
 Public Private Partnerships (PPP)
INFORMATION SILOS TRANSPARENCY

11. Traditional vs. Collaborative
Construction Project Delivery Methods

12. What is JOC / JOB Order Contracting
 3-5 Year Contract
 Construction Delivery Method
 A “Better Way” for the Numerous
Renovation, Repair, Sustainability
Construction Projects
 Costs Developed Using a Unit Price Book
(UPB) and a Co-efficient
 Performance-based
 Transparency
 Collaborative
 Win/Win for Owners/Contractors/AEs

13. JOC Requirements
 Right Teams
 Unit Price Book (RSMeans)
 Owner Estimates (IGEs)
 Performance Bases
 Transparency
 Supporting Technology
 Training

14. JOC Benefits
 On-Time / On-Budget Projects
 Fewer Change Orders
 Enhanced Communication
 Shorter Procurement and Project
Timelines
 Transparency
 Longer Term Relationships
 Higher Satisfaction for ALL

15.  PROVEN – 25-year track within the DOD
 EFFICIENT - Reduces engineering, design, & procurement time
 LONG-TERM - Typically 3-5 year contracts
 PARTNERING – Requires teamwork – owners, contractors, AE’s
 PERFORMANCE-based - Contractors selected value /
qualifications
 CONVENIENT – Construction services from concept to close-out
JOC Basics

16. Shorter Procurement, Fewer
Change Orders = Savings

17. Shorter Procurement, Fewer Change Orders = Savings

18.  Track & Manage each project
from inception to completion.
 Manage a single project,
entire contract, or multiple
contracts.
 All project milestones, concept
thru warranty period.
 Display status of each project
 Maintain a complete cost
history
 Record all estimates
associated with a project.
 Review value of all projects
awarded on a specific
contract, or to a specific
contractor.
 Report pre-negotiation
strategies and post-
negotiation summaries.
Programming Estimate
Estimates from Each Design Stage
Final Detailed Cost Estimate
Initial Contractor Proposals
Technically Evaluated Proposals
Final Revised Contractor Proposals
Modifications & Changes Orders
JOC Process

19. Supporting Technology
Integration of Proven Construction Delivery
Methods / Project Management
Standardized Cost Data Architectures /
Taxonomies (i.e. RSMeansTM – 400,000 line
items)
Comprehensive Document Management
Electronic Visualization / QTO (i.e. eTakeoffTM)

20. Supporting
Technology
• Collaborative Software Application
• Cloud Computing?
• Contract Management
• Project Management
• Document Management
• Visualization / QTO
• Owner / Contractor/AE Modules
• Integration

21. Manage Multiple Contracts

22. Compare, Evaluate, Negotiate,
Award

23. Visual Estimating / QTO / Pattern Search

24. Future
“WIN-WIN”
Integration of best-in-
class, new life-cycle
focused processes,
technologies and services.
Proprietary, vendor
dependent development
Non-proprietary, open
standards/development

25. Storage Costs Approaching Zero
 Traditional Databases Dying
 Data Never Lost
 Information Linkages
 Information Reuse

26. Capabilities/Expertise
Technology
Cost
Estimating
RSMeans
Data
Federal
Sector
Process
Integrated
Project
Delivery
IDIQ
Products/Services
e4Clicks Ceasel
Diverse
Training

27. Ceasel
Cloud Cost
Estimating
Ceasel
PEOPLE
PROCESS
INFORMATION
TECHNOLOGY
Create, Visualize, and Share
Standardized, Accurate, and
Reusable Information.
Increase Productivity

28. What is Ceasel?
 The BEST electronic presentation of
RSMeans Cost Data
 Collaborative Line Item Cost Estimating
Solution – Microsoft Azure Cloud
 Blazing Fast with Multiple Patents Pending
 A Tool for Connecting People, Information,
and Process, Anytime, Anywhere
28

30. Evolution of Cost Estimating/Project Management
Cloud Computing

31. Benefits – Ceasel Cloud Computing Architecture
 Collaboration - users work concurrently on projects
in real-time…virtually anyone, anywhere, anytime.
 Data Integrity – Information is NEVER deleted.
Changes can be “rolled back” at any time by
authorized administrators.
 Data Protection – You determine how, when, and
where to publish data: your private area, as read
only to specified members within a private cloud,
all members in a private cloud, or publish
information to all members in public cloud.

32. Benefits of Ceasel’s Cloud Computing Architecture
 Visualization – Project participants see data earlier
in the project life-cycle, driving fewer change
orders, faster project timelines, and virtual
elimination of legal disputes.
 Agility – Rapid deployment, monitoring, and the
ability to quickly update processes and policies.
 Virtually no resource required of internal “IT” for
deployment or applications specific changes,
computing power, storage space, etc.

33. Benefits of Ceasel’s Cloud Computing Architecture
 Mobility – Resources can accessed from multiple
locations.
 Centralization of Information – While information
can be gather from distributed locations,
consolidation and global oversight is supported to
assure mission success.
 Business Continuity –Internet access is sole
requirement. Data centers provide multiple
redundancies.

34. Ceasel’s Metro Interface

35. Line Item Modifiers with Full Descriptions in Plain English

38. Ceasel Roadmap
Cloud Cost Estimating
Job Order Contracting
All Construction Delivery Methods
Associated Workflows Supported by
Digital Technology
Enterprise cloud application and
associated plug-ins to assist in
collaborative life-cycle management
of the built environment.
Cost
Estimating
Life-cycle
Modeling &
Decision Support
Efficient Project
Delivery

39. Ceasel Availability
Module1 – RSMeans line item estimating at
estimate and project level. Beta Now!
Module2 – Full Program, Project, and Document
management for JOC, SABER, IDIQ, SATOC,
MATOC, MACC, POCA, BOA. (2015)
39

40. 40
“In the long history of humankind,
those who learned to collaborate and
improvise most effectively have
prevailed.”
– Charles Darwin

44. Q&A
Peter Nicholas Cholakis
4Clicks Solutions
www.4clicks.com
pcholakis@4Clicks.com

45. Presenter Bio
 Chief Marketing Officer for 4Clicks Solutions
(www.4clicks.com), leading provider of cost estimating
and project management software and solutions to the
DOD Sector, and software provider for RSMeans
JOCWorks.
 Former Senior Consultant for RS Means / Reed Business
Information – Strategic partnering with BIM and cost
estimating software OEMs as well as large end users.
 Established VFA as thought leader in the facilities
consulting and condition assessment industry.
 Defined the CPMS (Capital Planning and Management
Solutions) strategic concept effectively bringing it to a
market that VFA dominated for years including the higher
education and government segments
 Exceptional domain knowledge and expertise in facilities
lifecycle costs and total cost of ownership applicable to
various market segments including corporate and
healthcare
 Seminal thinker on TCO (total cost of ownership)
applicable to construction and facilities industry
associations including FFC, APPA, NASFA and IFMA