Denver Presentation on Built Industry Culture

Copyright Collaborative Construction 2008

(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


Built Industry Culture – Then & Now


$21 to $35 trillion in wasteAnd calling it “waste”

Ignores the ROF

Why our wasteful culture mattersIt drains our $70 trillion economy

Sources of Waste

CorruptionStupidityInefficiency

Wasteconsumes

30% to 50%of that $70

trillion!

Studies indicate30% to 50% is waste


Construction WasteTotals 30% to 50%

Potential savings $1.1 to $2.3 Trillion


$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 trillion50% Savings = $15 trillion

What's theROF related to wasting$20 – $300 trillion over 5 years?10 years?20 years?


GDP of Colorado in 2013$260 Billion +

Potential savings $78 to $130 billion

If waste totals30% to 50%


Percentage of GDP FromVarious Sectors of the

Colorado Economy

Construction is4 to 5% of GDP

$13 Billion


$100 Billion in Facilities & Infrastructure

placed over 7.5 years

Potential savings $20 to $300 billion

Over 20 years

Operations & Maintenanceon $100 billion in F&I

Is 10% to 30%annually

Annualized cost of O&M = $10 to $30 billion

10% Savings = $1.0 billion50% Savings = $15 billion

What's theROF for wasting

$20 – $300 billion

5 years?10 years?20 years?

The annual value of construction work in CO

Approximately $13 Billion


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 wasteRequests for Information

RFIS




(BUILT)X Solutions...A (SMART)X Game

Changer

(SMART)X

Legal Agreements

(BIM)X (CM)X


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



Short Definition of (BIM)X

Building Information Modeling & ManagementRepresents design information graphically, virtually & instantly

Business Intelligence Modeling & ManagementRepresents business data graphically, virtually & instantly

Business Innovation Modeling & ManagementRepresents game changing business models graphically, virtually & instantly

(BIM)X enables authoritative capture of information the serves as ashared knowledge resource that enables (SMART)X game changing decisions regarding planning, design, construction, operations &maintenance. (BIM)X googlizes the built environment.


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 requiredchanges in culture, construction, and business processes manifeststhemselves virtually, physically and, importantly, over time.


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


Integrating Procurement, Project Delivery, Operations & Maintenance

is a (SMART)X Game Changer

Integrated AgreementsServe as the Keystone

BIM BlocksCarved with(BIM)X Tools

CM BlocksCarved with(CM)X Tools

IPP-IPD-IOM in 3DTM

(BIM)X (CM)X




Arches Support the Infrastructure of (BUILT)X Solutions

(BUILT)X SolutionsRest on a solid infrastructure


Arches Support the Infrastructure of (BUILT)X (SMART)X Solutions


BIM is Smart Integrated (BIM)X

Is a (SMART)X Game Changer!




BIM Toolsare used to

carve BIM blocksthat support the

arch

Lean Toolsare used to

carve lean blocksthat support the

arch

Collaborative AgreementsThe new generation of

integrated contracts serve as thekeystone in the arch that

supports true IPD

Integrated Project DeliveryA carefully constructed arch

supports true IPD

So how does IPD work again?