What’s Next for Construction
Following a period of turmoil, the construction industry will embark on a new path, driven in large part by a fresh view on technology.
Looking back at 2009, one could consider it to be a year of change—or more accurately, a year in which some key societal, political, and environmental factors were put in place that will drive a significant amount of change in the years to come.
Take, for example, BIM (building information modeling) and IPD (integrated project delivery). These processes have been around for a number of years, but new guidelines and standards at the state level could drive a higher level of adoption of BIM-related technologies for everyone working on state-funded projects—from owners, to general contractors, to subcontractors. Or even consider the impact new ediscovery rules at the state level and increased safety regulations will have on document management and jobsite reporting.
These examples will have a direct impact on how technology is used in construction for years to come, but more specifically how the industry as a whole will need to develop a new approach to managing data.
The industry has reached a tipping point, of sorts—a point where the rate of technology adoption is likely going to increase dramatically. FMI Corp., www.fminet.com, Raleigh, N.C., coins it as an ‘inflection point’ in its Tenth Annual Survey of Owners, meaning the economic turmoil from the past two years will result in a dramatic shift in the AEC (architecture, engineering, and construction) industry with six dominant forces guiding the way—globalization, social norms, technology application, economic performance, political stability, and environmental influence.
As this shift begins to occur, owners, general contractors, and subcontractors will likely need to look to technology as a means to improve team collaboration and project delivery and comply with new regulatory guidelines and trends in 2010.
Betting on BIM
Perhaps no movement has had a bigger impact on the AEC industry during the past decade than BIM. Most contractors and owners no longer need convincing, as many have already dedicated resources to specialized departments and technology. But the year ahead could be critical in how far BIM continues to move forward.
Just this past year we saw the Division of State Facilities in Wisconsin implement guidelines and standards for using BIM on state projects, while the Facilities Design and Construction Division within the Texas Facilities Commission adopted BIM for state design and construction projects in an effort to standardize the use of BIM on future projects. Some believe other states are close to adopting similar mandates, and everyone in the industry is well aware of the BIM guidelines required by national owners as the U.S. General Services Admin, www.gsa.gov, Washington, D.C.
Such guidelines and standards have an effect on everyone involved with the construction project, from the owner on down. While few can deny the benefits of BIM for project delivery, one of the biggest points of contention is how to apply the technology and at what phase of the project.
The advancement of the technology available can be perceived as being either very robust or still on the cusp, depending on the discipline. For example, an architect might say the tools are very sound, while a mechanical subcontractor would argue that while technology is good for things like clash detection it is still lacking in terms of smart icons for building components (i.e. furniture, equipment, hardware).
“I think the advancement of the technology depends on the discipline and each technology provider is making strides in integrating the different disciplines very well in order to create a complete model,” says Dawn Naney, program management director, BJC Healthcare, www.bjc.org, St. Louis, Mo. “It all comes down to what the intent is, defining the value proposition, and with the expectations and alignment of the team in order to get the biggest bang for the buck.”
Talking from an owner’s perspective, Naney believes what would be very beneficial is the modularization of BIM technology to assist teams in scoping what is needed or what would be beneficial for each project. She says, “Once we understand what problem we want to solve then we can get creative about the solution, i.e. do we just need 3D renderings or estimating and conflict resolution as well.”
She believes there is room for improvement in the areas of performance modeling (metrics around quality and performance) to include more robust ties to project management and scheduling software; predictive estimating models that use linear regression models to help predict pricing trends; and ties to project management tools or cost tracking software that can segregate price into customizable work breakdown structures.
Clay Goser, who worked as a system planning architect and the director of construction, community hospitals at BJC before leaving to start a project/program management consulting firm, concurs with this assessment of the market, saying part of the challenge with the adoption of BIM is the fact teams don’t fully understand what it is that they want BIM to accomplish. He says, “The first thing we start to talk about when we look at implementing BIM or any other technology is the reliability of the technology. We look at who owns the model, who will invest in the tool, how will it be used, and what the roles are of all parties using the tool.”
The message here is that the industry needs to first understand the means to which it will deliver projects more collaboratively, improve overall performance, and enable innovation. He points out the need for standards around collaborative delivery that supports the use of integrated tools and a need to understand the intrinsic benefit of the technology as it relates to the project, more than just bottomline cost.
“You also may not use every component on each job,” adds Goser. “Teams need to have an environment of trust and a strong enough working relationship where they can determine very quickly on the frontend of a project what is appropriate to use on a project.”
Julian Kang, associate professor and graduate program coordinator, Texas A&M University, www.tamu.edu, College Station, Texas, talks on the applications involved and the factors that will drive adoption.
“We have one dominant application for BIM right now but the application that the GC or designers will end up using will be determined by request of client,” he says. “If a client asks for the Revit model or the NavisWorks model, or in the case of the U.S. Army Corps of Engineers, the Bentley BIM model, the GC or designer needs to provide that model. The question of which application will be used will be driven by the owner and I believe this will lead to no one single dominant application in the market, meaning that GCs and designers will have to be good at using multiple applications.”
Also, Kang sees some challenges with producing an estimate from the model. “Ideally you can get the estimate when you have everything within the model. Practically though, by the time you need estimation you don’t have all the (required) information (in the model) at that particular moment,” says Kang. “Almost always when you are working in estimating you will have to be working on some type of assumptions and those assumptions are normally made by estimators and it is hard for estimators to explain what those assumptions are as far as efficient modeling goes.
“If you are a BIM expert you might not have a clear idea of how you want to build the model at the early stage of the estimation process because you don’t have enough information for creating the model. I see a lot of GCs depending on manual or 2D process for estimation and then once they get the estimation done and the project brought in they start using BIM seriously. From there some start to question why they are using BIM for estimation, because it has been done already and the project is awarded.”
Some applications help to produce a ‘macro’ estimate beforehand, but according to Kang, the true time-saving aspect is still up for debate.
Regardless of what level the technology seems to be presently at, most contractors are moving ahead with their plan of attack. We have seen a shift coming from all types of contractors.
“We have hired a BIM modeler on our staff and will be one of the first contractors to integrate our other information systems into the BIM model, such as accounting, sales, and scheduling data. With BIM you can’t be half committal, it requires all hands on deck,” says John Lord, chief technology officer, Component Assembly Systems, www.componentassembly.com, Pelham, N.Y. “As a drywall firm, we do not get pulled in to the ‘big room’ in the same way a mechanical or structural contractor would, however our access to models does provide us with conflict information and allows us to provide solutions before we hit the area with $100/hour workforces.”
But BIM adoption doesn’t come without warning, says Lord. “Do not buy (the software) without understanding the terrain. Beware of claims ‘we are 100% BIM.’ We just received over 100 pounds of paper plans on a ‘100% BIM’ project; that isn’t even BIM-light! BIM will be the way of the future and for many, a BIM service may be the prudent first entrée into it so that you can experience the process without committing huge dollars without your plan.”
The Remote Office
The current administration is putting a greater focus on occupational safety and health, meaning the government is investing resources to enforce worker protection laws and regulations, oversight, and coordination activities.
OSHA (Occupational Safety and Health Admin.), www.osha.gov, Washington, D.C., is implementing an enforcement program to assure worker protection on ARRA (American Recovery and Reinvestment Act)-related projects and will rely heavily on new and existing LEPs (local emphasis programs) to protect workers on ARRA-related projects.
Last year, OSHA began collecting injury and illness data from approximately 20,000 construction firms, which is an expansion of OSHA’s Data Initiative to collect injury and illness data. While these new rules and regulations might help create a safer work environment, they are also driving construction companies to more accurately track safety information.
“OSHA has really, really cracked down on job safety today, and we are seeing more and more companies start to use wireless safety inspections out in the field for a lot of reasons,” says Bruce Bocian, enterprise data solutions manager, construction vertical nationwide, Verizon Wireless, www.verizonwireless.com, Basking Ridge, N.J. “(Wireless safety inspections) could possibly lower your insurance costs overall—your insurer knowing you have a wireless ontime reporting product in your company. It helps with litigation should you have an accident out in the field. You can show (you) have records of (your) safety inspections.”
In fact, Bocian additionally says, “OHSA had said if you come up with a major infraction in the safety violation, we are pulling your stimulus money. It is becoming very critical that some type of electronic record keeping is being done.”
This is just one example of new requirements driving companies to create a mobile “office” in the field. This also increases the need to deal with risk.
“The industries that are able to measure risk the best for their owners are the ones that typically get rehired,” says Rick Coblentz, IT (information technology) specialist, Burke & Associates, www.burkegc.com, Las Vegas, Nev. “Burke has made it a purpose and a strategic goal to protect every owner that we work for. The technology is only the means in which protection can really be applied.”
Burke & Associates uses wireless broadband technology on projects to help create a remote office. The technology allows the company to access the phone and Internet remotely.
Knowing it can sometimes take upwards of four months to get utilities delivered to the jobsite, Coblentz says the company selected this technology as a way to get up and running at a jobsite faster.
Speed and bandwidth seem to be two of the main challenges for contractors in the field, particularly as more documents and drawings are being passed back and forth as part of the BIM process. However, many of the carriers are coming to market with a solution—4G.
“One of the things that we see really impacting the industry as a whole over the next year—not just 2010 but onward—is the ability to move large volumes of data,” says John Girard, manager of industry solutions for construction and field services, Sprint, www.sprint.com, Overland Park, Kan. “For Sprint, what that means is our capabilities in terms of 4G and how that rolls out through the wireless industry and can impact productivity and performance for contractors. I think that is probably going to be the biggest trend that we see impacting them in terms of their ability to be more productive.”
Girard adds 4G will help improve the amount of data that can be sent wirelessly from the office to the field, as well as create that ‘remote’ office almost instantly.
“They need to get a trailer there and they need to get information there,” says Girard. “In many cases, it takes actually quite some time to put in (the traditional landline communication) that they require to move that kind of information back and forth from the jobsite. But with greater bandwidth, the 4G capabilities, we are able to create a centrally mobile office almost instantly.”
While Sprint is currently delivering its 4G technology—WiMAX—across the country, Verizon and AT&T, www.att.com, Dallas, Texas, have their own plans for 4G.
Susan Fitzsimmons, senior marketing manager, AT&T, says with the faster networks and 4G the industry will begin to see more ‘rich’ data such as video being captured from mobile devices and used as everyday reporting tools. Verizon says it is planning to roll out its 4G technology—LTE (long-term evolution)—to 25 to 30 markets by the end of next year with aggressive plans to cover the rest of the country by the end of 2013.
Email: Challenges in Litigation
How certain are you that—if challenged in litigation—your company could recover information? According to a survey, barely 20% of companies are confident they could demonstrate their data is accurate and accessible.
The survey—conducted by ARMA Intl., www.arma.org, Overland Park, Kan., and Forrester Research, www.forrester.com, Cambridge, Mass.—shows 56% of surveyed companies plan to ramp up spending on ESI (electronically stored information) in 2010.
“We really recommend any organization that is introducing new technology into their operations consider fully the records and information management aspects of that technology, as much as they consider whether they have enough computer power to make the software work, for example,” says Diane Carlisle, director, professional resources, ARMA Intl.
Now may be one of the most imperative times to consider technology, as more and more states have enacted ediscovery provisions in state civil rules.
Roughly three years ago, electronic discovery was amended into the Federal Rules of Civil Procedure, meaning ESI can be required in civil litigation. This can include everything from emails to other electronic files.
This past year, more than 20 states have added ediscovery provisions to their state’s civil rules. According to industry sources, this is going to drive the adoption of technology in construction, and with good reason—if companies don’t comply with the civil procedures for ediscovery they face dire consequences.
“They can levy a charge of spoliation, which basically means that the court says the company didn’t provide the documentation (or) the information that they were supposed to during discovery, and it looks like the company has intentionally falsified information or intentionally destroyed information early,” says Carlisle. “The court can basically say we are going to assume that the information would have worked against this party in the court case. So they make a finding that, you just assume, that they are at fault. So the courts can and have directive verdicts or part of verdicts to juries based on information that isn’t available.”
According to Phil Dixon, content management consultant, Construction Imaging, www.construction-imaging.com, Rocky Mount, N.C., the impact on construction is going to be significant, particularly due to the fact that more fines will start to be handed out at the state level. However, he says the impact is still very ‘gray,’ meaning it is up in the air and depends on the judge and opposing counsel.
While regulations differ from one state to the next, the gist of state level ediscovery is based on the Federal Rules for Civil Procedure. In some cases, the states just adopt the federal rules wholly, but in other cases states may modify a few pieces of it.
Despite the fact the rules vary by state, in most cases the effective use of technology to manage electronically stored information can be an easy way to avoid costly mistakes in litigation. In one case, a construction company had to restore 93 backup tapes, each with 25,000 emails on them, convert them to TIFF files, and print them out. This process was estimated to require six months and cost $6.2 million. This is why it is important to recognize that backups are designed for disaster recovery while archiving facilitates quick retrieval.
Carol Hagen, www.hagenbusiness.com, Chandler, Ariz., points to another case where a large heavy/highway firm experienced an expensive email discovery case, vowed this would never happen again, and then implemented a written email policy. The company removes all emails from the Microsoft Exchange server and every PC. The IT department erases the tape backups that contain the email, religiously. Now the engineers want to keep a copy of the email, so they print them out and put them in the project file. In this case, Hagen questions, without the metadata, how do you prove the printed copy is in its original form and determine its source?
Email is one of the areas that should garner a lot more attention in 2010, according to Dixon who says the state legislations have huge implications for managing emails. He believes about 90% of the correspondence that is transacted in business today is email, and contractors need to be able to better manage email and identify which emails are relevant to the discovery request and to the subpoena.
Carlisle of ARMA Intl. adds, “Any of that correspondences that happen during email has the same validity in court as any other format that they might have done in the past.”
New regulatory and societal factors are driving the use of technology in the construction industry today. While some economists say the slumping conditions may still affect many industries in 2010, construction specialists predict when the construction industry does finally emerge from this downturn, it will do so as a drastically different industry—one where technology will have an even bigger role. •
Technology Providers’ Outlook for 2010
As we look ahead to 2010 what will be the biggest factors driving technology initiatives forward for your customers in construction?
“2010 may be the ‘inflection point’ for contractors—the combination of the recession and the ready availability of the Internet is changing construction company practices. Today is the day of the virtual office—field operatives connected wherever they are using technologies like VoIP; instant messaging/text messaging for quick questions and answers; direct connectivity to backoffice systems using Internet and Web browser technology for time and expense capture, and access to cost information.”
- Jim McFarlane, Explorer Software Group
“Delivering technology that provides the subcontractor within accurate information, so that they can make informed decisions based on accurate facts—whether that is in being able to estimate a potential project with accurate costs and profitability, having all of the facts and information at their finger tips after they have won the project and are in the building phase and servicing the project after it is complete. In this difficult marketplace, working with inaccurate information can cause a project to be lost or won in error, implemented at a loss, or poorly maintained with service afterward.”
- Bob Yakimetz, Accubid Systems
“Companies making investments in developing BIM models want to get a big return, that means integrating BIM data into other workflow processes, including project budget development, submittals, developing schedules, etc. Flexible integrations through Web services; now more than ever systems need to talk to each other and share information; technology systems also must adopt to companies’ workflow ... .”
– Bruno Berti, Meridian Systems
“As we look into 2010, it is the use of SharePoint, all the collaboration, and the ability to put the RFIs (requests for information), the submittals, and those types of things in construction-related sites for multiple users for the company—whether it is somebody in project management, somebody in purchasing, somebody in inventory, (or) somebody in finance—having the ability to look at and see who is doing what, when it was done, copies of the invoices, copies of the receiving tickets, images of the purchase orders (and) bringing them all together when the project manager is out … Sharepoint can help drive workflow throughout the organization.”
- Jim Wenninger, WennSoft
Talk about the changing role of technology providers in this industry and the effect they will have on the way technology is used.
“As a more technically-proficient workforce evolves, so too does the nature of construction management. The professionals taking the helm of today’s leading construction outfits have grown up in the information age. They depend on technology to make them better at what they do–whether it’s scheduling subs, managing payroll, or analyzing overall company performance. But they are also construction people who know the construction business, a traditional industry that has been slow to adopt new technologies, particularly in the backoffice. The challenge is to balance passion and desire to deliver forward-thinking solutions against the real-world needs of customers’ technical expertise and/or technical infrastructure.”
– Jay Haladay, Viewpoint Construction Software
“Overall, technology must create a balance between capability and usability. The more complex construction software becomes, the steeper the learning curve, which could become more of a liability when attempting to learn a new technology and maintain a hefty bid volume simultaneously. Software adoption is a process, and special attention must be given to training for that transition. Technology providers need to offer more than an instruction booklet with the package. As technology becomes more advanced, training and support both become necessary for full utilization of the technology. A solid training program, backed by a stellar support system, will be one of the most impactful selling points to companies that have decided to make the switch to software.”
– Greg Duyka, On Center Software
Do you see any regulations that might have an impact on technology usage in construction going forward?
”As more contractors move toward federally funded projects, the need for detailed record keeping rises. Staying in compliance with government-mandated accounting and reporting requirements is easier when you have sophisticated construction management tools. And, since government work is awarded to the lowest qualified bidder, accurate estimating is essential for understanding just how low you can take your bid without sacrificing profit.”
– Jeffrey Girardi, ProEst Estimating