PowerPoint Presentation

Culture, Social Media Technology, & BIMDave Trebas, Chief Technology Officer4Clicks Solutions, LLC

Peter Cholakis, CMO4Clicks Solutions, LLCIn the long history of humankind, those who learned to collaborate and improvise most effectively have prevailed. Charles Darwin

www.4Clicks.com1Meet Presenter(s):David TrebasChief Technology Officer4Clicks Solutions, LLC

Born and bred advanced technology veteranInstrumental role moving Autodesk into the Windows environmentHelped Nemetzchek Engineering Bureau deliver advanced 3D CAD, and developed RSMeans CostWorks

Peter CholakisChief Marketing Officer4Clicks Solutions, LLC

Career defining capital planning and management solutionsExpert on facility lifecycle and Total Cost of OwnershipPassionate about leveraging technology to foster collaboration

2

The genesis of our presentation is this chart, which some of you have seen before, showing the increase in worker productivity in all industries save construction, which has seen a downward trend. Of course we all know that we saw a huge uptick in productivity in the 90s as a result of technological advancescomputerization of many office and manufacturing tasks, the internet. Why didnt construction keep up (indeed, why did it see an opposite trend?) We believe that the reasons have to do with cultural, supply chain, and technological barriers . . . And we believe that our industry is on the cusp of breaking down these barriers, which is good for everyone building owners, AEs, contractors, facility managers and users, and the community at large.3OwnerDesignerBuilder72% of projects over budget70% of projects over schedule 5% of project costs spent in biddingRex Miller, Commercial Real Estate Revolutionprice based selectionqualifications based selectionknowledgegap

Fracturing of the Industry and its Results:Adapted, HOK Architects#4Our world - separation of design expertise and construction expertise, an architect will not, can not (based on his lawyers advice) concern himself with construction means and methods, or worker safety, or jobsite logistics presented by his design. There is no direct connection to construction costsa critical element. And the contractor would can not (based on HIS lawyers advice), propose alternate designs or practical engineering solutions. So we lack holistic knowledge shared among all stakeholder with equal concern for aesthetics and detailed engineering and day-to-day jobsite logistics. Owners typically have separate contracts with their architect and contractor, and these two phases of construction and areas of expertise are segmented. This fragmentation of expertise doesnt work particularly as buildings become more complex and schedules compressed. This setup leads to a knowledge gap, and owners pay for it. There is disincentive to share information freely as the fragmentation drives parties to hoard information and shift risk. Lack of collaboration = inefficiency.

Technology Barriers

#5These might just be the some of greatest technological advances of the last quarter century for the construction industry, and they were all introduced when I was a child growing up in a family-owned general contracting firmI remember how momentous they were. But all this type of technology does in speed up your ability to communicate and document in an adversarial way. An architect can send a Notice to Cure to a contractor in a third of the time, an owner can reach a contractor any time of day to yell at them, and a contractor can electronically document pre-existing conditions for the claim theyre going to file. But it hasnt changed the WAY people work together. These technological tools have not fostered collaboration, theyve just sped up and intensified conflict.Technology Barriers

OwnerAEContractorSubs#6With the advent of microcomputers, spreadsheets became electronic and more user friendly than earlier paper spreadsheets.

An improvement over the first paper versions, in part, because of the ease of making entries, revising entries, performing calculations, sorting, etc.

As a result, the time for the user was reduced for using the spreadsheet. Because calculations were performed by a computer, rather than by hand, electronic spreadsheets also reduced errors, which were attributed to input errors rather than calculation errors.

Electronic spreadsheets became a powerful tool for cost estimating, organizing data, and managing various AECOO tasks.

To the extent that. most construction activities, especially cost estimating, continue continues to rely primarily upon a combination of hardcopy documents and electronic spreadsheets such as Microsoft Excel, with relatively small percentage also using dedicated commercial off the shelf (COTS) or custom software programs, relational database technology, and traditional web architectures.

That said, these tools generally are not optimal for multi-user and/or larger complex situations and projects.

Non-trivial issues such as security, audit trails, data hierarchy, and flexibility limited the availability and deployment of productive, cost-effective, and collaborative tools.

Technology Barriers Speed vs. Flexibility

OwnerAEContractorSubs

????!!!!!!?@#!*#7For example, as spreadsheets became more complex it was difficult and costly to manage changes within cells and formulas.

Furthermore the concept of information hierarchy, the ability to automatically roll-up data across multiple spreadsheets from multiple locations at will was unavailable.

Multiple users simultaneously working on copies of the same spreadsheet result in changes that are at best difficult to track. Users must manually keep track of, and merge, the changes themselves.

Web-based spreadsheets, GOOGLE Docs Spreadsheet and MICROSOFT EXCEL for example, offer limited multi-user capability. For the most part, they have simply replaced the hard drive or network storage available to a traditional electronic spreadsheets with internet-based storage.

Connecting traditional spreadsheet architectures to non-spreadsheet data and enforcing a multi-level hierarchy with multiple access privileges is also problematic. Also, the quasi-manual process of collating spreadsheets throughout the hierarchy may create an issue of data latency, meaning the required data at any given point in the process is out-of-date and/or inaccurate. Data latency is a factor of how many collations are needed and how long it takes to do each one.

Using conventional spreadsheets can be very slow, if not impossible, to quickly gather relevant and timely information. By the time the data is collated at any given level, there is a good chance the data is already out-of-date.

As a result, larger, multi-level and/or multi-national hierarchical organizations opted develop or purchase traditional database-architecture solutions for their organizational data needs.

Traditional database tools have the advantage of being very fast for the collection and reporting of information at all levels of the hierarchy. Their inherent disadvantage of is a relative lack of flexibility. Users at different levels cannot customize and/or easily link outside data to the relevant portion of their data. Changes to these systems typically come with premium price tags.

Thus we have a trade-off the database approach is fast but not flexible, while spreadsheets are flexible but not fast.

8Excel SpreadsheetsRelational DatabaseCloud ComputingFlexibilityCollaborationTechnology BarriersCloud Computing / Social media and associated innovative and disruptive technologies offer flexibility, speed, and collaboration.8Catalysts of Change

Disruptive TechnologiesEconomicEnvironmentalBig data#Heres are some of the anticipated catalysts for change.9Environmental:1. Recognition of buildings role in climate change2. Challenge of meeting rising Energy Needs and paying for it3. Government mandates

Altered Environmental Landscape#]10Economic:1. Fallout from of a building boom followed by recession2. Reduced capital expenditures at a time when monumental change to the built environment is needed3. World economy becoming flat

Altered Economic Landscape#11=Disruptive technology is a term coined by Harvard Business School professor Clayton M. Christensen to describe a new technology that unexpectedly displaces an established technology. Disruptive Technologies:BIM Cloud ComputingA disruptive technology changes/overturns traditional business methods and practices.

#Enter the third catalyst for change The Disruptive Technologies of BIM and Cloud-Computing

1213

BIM is the life-cycle management of the built environment supported by digital technology.(adapted from NIBS)BIM The Simple Definition

To paraphrase the National Institute of Building Sciences (NIBS) somewhat longer definition of BIM, BIM is the efficient life-cycle management of the built environment supported by digital technology. It is important to note that 3D visualization is neither the focus of BIM, nor even called out in the NIBS definition. This is not to downplay the importance of data visualization, but rather to emphasize, and focus upon, the importance of facility life-cycle management as the core BIM process as embedded within digital technology. Thus BIM is part process and part technology.

13All components of the puzzle need to work together and continuously improve. People, Process, and Information.14

Cloud Computing15Technology is a tool, however, it can also cause disruptive changes to a market.Heres a brief history of technology within the AEC sector paper spreadsheets CAD relational databases 3D visualization BIM/Life-cycle Management Cloud Computing. Of these technologies, Cloud Computing and BIM are candidates for being DISRUPTIVE TECHNOLOGIES.1516Cloud ComputingSpeed of DeploymentTransparencyBig DataConvergenceFlat World EconomyConstrained Capital DollarsRefocus on O&MCarbon FootprintGovernment MandatesRising Energy CostsNew Project Delivery Methods to Meet New DemandsEnergy ModelingBenchmarkingAltered Environmental LandscapeAltered Economic Landscape Disruptive TechnologyBIMThe CONVERGENCE of ALTERED Economic and Environmental Landscapes and DISRUPTIVE TECHNOLOGIES such as BIM and CLOUD COMPUTING stands to catalyze CULTURAL change in the AEC Sector. The very foundation of how we conduct business on day-to-day business will change, as it adapts to market forces.

For example, in order to meet timed mandates for carbon foot reduction, facility portfolio owners will, at a minimum, require the following:A snapshot of current physical and functional conditionsA decision support mechanism to enables short and longer term what-if scenarios.Efficient project delivery methods to act upon established priorities.The ability to monitor progress and re-evaluate strategies on an ongoing basis.

What is Cloud Computing? Everyone has a rudimentary understanding of the cloud, but taking an existing, traditional software application, whether client/server or web-enabled and posting it to the Cloud via a virtual server is NOT true Cloud Computing, but cloud-washing. True cloud computing is centered around delivering secure, rapid and transparent standards-based information with the added benefit of collaboration among individuals. The level of collaboration is virtually unlimited to location, time, language, measurement, etc. For those familiar with social media tools, we might consider the Cloud as a Facebook for the built environment, incorporating plug-ins, wikis, microblogs and other collaborative tools that allow the quick dissemination of information among project stakeholders.Imagine a cost estimating program that enables an unlimited number of individuals to work on the same estimate, or work exclusively on a component of a much larger project, simultaneously, in varying languages, units of measure, and currencies. At the same time the team can track, approve or disapprove changes real-time, while continuously monitoring and managing who changes what and when. Plus, you have the capability to roll forward or backward at any time! This capability exists today, solely due to the advent of cloud computing and associated advancements16Big Data:BIM and sophisticated energy modeling for new constructionAbility to collect building performance metrics for existing buildingsChallenge:How to process it for decision-making and How to leverage team expertise to effect productive changeNeed for delivery methods to quickly respond to urgency created by transparent data

#Application of big data to built environment has the attention of big playersNew tools like dashboards to help owners process data for informed decisionmaking

17

#Big data is required to effect BIM. And big data relative the built environment has the attention of big players. The ability to collect building information to analyze/improve performance for existing and new structures requires expertise from multiple domains. Challenges include:How to process it for decision-making ?How to leverage team expertise to effect productive change?How to efficiently and cost effectively respond to urgency created by transparent, actionable data

18

Key Characteristicsof Emergent Project Delivery MethodsQualifications Based or Best Value SelectionSome form of pricing transparencyEarly and ongoing information-sharing among project stakeholdersAppropriate distribution of riskSome form of financial incentive to drive performanceIntegrated Project DeliveryEnergy Performance ContractsJob Order ContractingPublic Private Partnerships#]19Integrated Project DeliveryEst. Max PriceActual CostShared ContingencyCost of the WorkIncentive PoolOwner Cost SavingsSavings$$$Target CostAlliance Contracts create shared Risk and Rewardshared contingency and shared incentive pool. Liability Waivers mean no ability to sue.Entire team on board before design startsrequires Qualifications Based Selection and Full Pricing TransparencyDeep involvement of key subcontractors and suppliers in design processGoal is to reduce duplication of design efforts--shop drawings serve design developmentUtilization of BIM and other forward-thinking technologies to enable collaboration among team members

#20

212122

IPDJOCDBB22Job Order Contracting

IPD Lite for Existing BuildingsConsolidates procurement to shorten Project Timelines and reduce procurement costsTransparency of pricing and procurement compliance through Unit Price BookLong Term Facility Relationship increases productivity and enables reiterative process improvementsQuality and performance incentivized through IDIQ form of contract with minimal guarantee and clear maximum volume

#23Shorter Project Timelines

24This is an example of productivity improvements afforded by JOC. Projects that typically took over a year, can now be done in months or weeks. 2425Fast and timely delivery of projects.Consolidation of procurement creates lower overhead cost and procurement costContractor and owner efficiencies in prosecution of the work. Development of a partner relationship based on work performance.Virtual elimination of legal disputes, claims and change orders.Standard pricing and specification utilizing a published unit price book (UPB), resulting in efficient and effective estimating, design, and fixed price construction.Advantages of JOC for Owners25How OWNERS Use JOC & TechnologyTrack & Manage each project from inception to completion.Manage a single project, your entire contract, or multiple contracts.All project milestones, thru warranty period.Display status of each project.Maintain a complete cost historyRecord all estimates associated with a project.Review value of all projects awarded on a specific contract, or to a specific contractor.Reports show pre-negotiation strategies and post-negotiation summaries.

2626

Process27Knowledge domains central to the discussion of AEC change-mangemen within the scope of this discussion include:Construction Project Delivery Methods for NEW and EXISTING buildingsSustainability and the concept of High Performance BuildingsHigher level FM Processes LEAN, TCO / Total Cost of Ownership / Life-cycle ManagementStandards (data formats, taxonomies, interoperability, metrics vs. benchmarks)

27Facebook for the Built Environment 2

[Heres an example of a visual cloud-based architecture.

28

The costs of bandwidth, computation, and storage are all dropping exponentially.

Cloud-based architecture allow you to invite anyone, anywhere, anytime to collaborate and even perform work on the same datasets and NEVER delete any information.

The following is an adaptation of The Data Singularity (www.dataspora.com)

The cost of information is approaching zero the amount of data has become overwhelming Turning data into something meaningful and insightful is valuable. Action is priceless.

We can reduce data by either filtering it, which sifts through but does not alter data, by sifting and altering it, and by crunching it, reducing many data points to a few.

Google, Facebook, Linked-in, Amazon, Saleforce.com, etc. are cloud-computing Filters . Google is a relevance filter for 20 billion web pages. Facebook and Linked-in are social and professional filters. Amazon is a filter for retail products.

Products like Ceasel are Cloud computing filters and data crunchers for construction cost estimating and project management enabling advanced, real-time, interactive, and transparent workspaces that are changing the very foundation of the AEC sector.

Traditional tools dont operate and scale very well in our new world. A new class of tools is emerging along the Big Data stack, in three areas: (1) storage & computation, (2) analytics, and (3) dashboards & visualization. These tools will disrupt and attack many of the traditional software and relational database tool-makers. 29ConvergenceEnergy modeling for new construction

Crystal Ball: What does the future hold?

Christian and Pandaya, 1997. Cost Prediction of Facilities.NIBS 1998. Excellence in Facility Managment#Building owners are starting to understand that design and construction are part of a larger picture of driving resultsresults in building energy performance, results in worker productivity, and ultimately results in their bottom lime. Big Data has arrived to support owners ability to understand how their building support their overall mission

30Thank You!Peter Cholakis4Clicks, LLCwww.4clicks.com 781-983-1128pcholakis@4clicks.com 31Chart10.080.720.200.010.1100.88

Design/ConstructionO & MAcquisition/Renewal/DisposalSalaries

Sheet1Design/ConstructionO & MAcquisition/Renewal/DisposalSalariesModel 18%72%20%0%Model 21%11%0%88%To resize chart data range, drag lower right corner of range.