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Tablets and BIM in Construction

Returns on Innovation Investments A Case Study on the James B. Hunt Jr.

Library Project At North Carolina State University

Will Senner, Skanska

12/2/2011

The Associated General Contractors of America (AGC) is a

Registered Provider with The American Institute of Architects

Continuing Education Systems. Credit earned on completion of

this program will be reported to CES Records for AIA members.

Certificates of Completion are available on request.

This program is registered with the AIA/CES for continuing

professional education. As such it does not include content that

may be deemed or construed to be an approval or endorsement

by the AIA of any material of construction or any method or

manner of handling, using, distributing, or dealing in any material

or product. Questions related to specific materials, methods, and

services will be addressed at the conclusion of this presentation.

NC State

Centennial Campus

Agenda

Technology Overview

• BIM in Estimating & Preconstruction

• Visualization & Smart Boards

• Logistics Planning & 4D Scheduling

• Field Mobility & Mobile Electronic Resource Stations

• Material Tracking

• MEP Coordination & As-Built BIM Handover

ROI / Cost-Benefit Research

• Research Methodology/Approach

• Direct & Indirect Costs

• Benefits

• Efficiency Gains & Rework Reductions

• ROI Calculations

Quality Control Web-Based Platform

Quality Control – Field Mobility

Quality Control –

Mobile Electronic Resource Stations

Exterior Envelope

Material Tracking for Unitized Curtainwall

MEP Systems & Technology Strategies

MEP Systems

Innovation Grant Research Project:

ROI of Innovation

Abstract: Innovative Technologies increase the

effectiveness of operations & field personnel.

Identify Key Features of Technology

Implementation

Quantify Benefits & Evaluate ROI

Develop Recommendations for

Future Implementations

Research Framework

Calculate Return on Investment

“Owner” ROI “Project” ROI

Translate Benefits to Real Dollars

Determine Typical Rework Costs Rework Avoided by Increasing Efficiency of

CM Staff

Determine Benefits

Observe Changes in Durations of Weekly Activities

Use data to determine efficiency gains

Determine Total Implementation Costs

Direct Costs Indirect Costs

Direct Costs Summary –

Field Mobility & Related Infrastructure

SINGLE PURCHASE

(CAN BE REUSED)

AVOIDABLE COST

(TRIAL AND ERROR)

RECURRING PURCHASE

(PER PROJECT)

TOTAL

MARKET COST

(RETAIL)

$ 57,487.54 $ 2,270.00 $ 30,720.00 $ 90,477.54

Single Purchase:

63.5%

Avoidable Cost: 2.5%

Recurring Purchase:

34.0%

Breakdown of Costs

Indirect Costs

16 hour initial set up: uploading of electronic documents,

development of location hierarchy, templates, etc

0

2

4

6

8

10

12

14

16

UPLOADING CONTRACT DOCUMENTS/PLANS

ELECTRONIC MARK-UPS TRAINING

Ho

urs

Pe

r W

ee

k

Weekly Implementation Costs

Benefits

How are we really using the

tools?

What’s changed from before?

What value are we really adding

to the project/owner? To

other parties?

How do we translate that “value” to real

dollars?

Benefits - Step 1:

How are we operating now and

actually using these tools day to

day?

Distribution of Weekly Management Time

Management Sector

Color Designation

Reaction

Assessment

Planning

Administration

Activity Avg. Duration Previous (Hrs.)

Avg. Duration New (Hrs.)

Coordinate with PMs of Trades for the weeks activities-Reaction 2.30 2.50

Follow up statuses of past week's issues-Reaction 2.30 1.40

Monitor productivity of installation/construction-Reaction 2.00 1.60

Verify last week's issues have been corrected/addressed-Reaction 1.20 1.20

Conduct Meetings with Sub and A/E on rolling punchlist issues-Reaction 2.40 1.80

Document/Photograph unresolved issues and their location 2.00 1.10

Email/Phone other trades about coordination issues/construction sequence-Reaction 2.80 2.40

React to any issues/discrepancies which have arisen in the field 3.80 3.00

Follow up statuses of past week's issues-Assessment 2.60 1.00

Monitor productivity of installation/construction-Assessment 3.20 2.80

Verify last week's issues have been corrected/addressed-Assessment 2.00 2.20

Conduct Meetings with Sub and A/E on rolling punchlist issues-Assessment 2.60 1.80

Go to field to verify progress and quality 4.20 4.40

Assess productivity of past week/month 2.20 1.40

Walking with Owner/Commissioning Agent 2.75 2.50

CM Team Meeting 1.60 1.60

OAC Meeting 1.60 1.60

Review Plans/Specs/Shop Drawings/Submittals 5.60 5.60

Coordinate with PMs of Trades for the week's activities-Planning 3.20 3.50

Email/Phone fabrication shop to verify sequence and number of units 1.38 1.13

Determine what productivity for following week must be to stay on schedule 1.60 1.60

Email/Phone other trades about coordination issues/construction sequence-Planning 1.60 1.60

Plan for next week's construction/installation 2.80 4.00

Pay Apps 1.80 1.80

Update information in the BIM to serve as electronic deliverable to Owner 2.50 1.00

Total Weekly Hours: 62.03 54.53

Benefits - Step 2:

What’s changed from the old

way?

Efficiency Gains

62 hrs/wk to 54.5 hrs/wk on average

16.7% of time savings is returned to the project

resulting in an increase in value-added planning

Reaction: 18.80 Hrs.

(30%)

Assessment: 19.55 Hrs.

(32%)

Planning: 19.38 Hrs.

(31%)

Admin.: 4.30 Hrs. (7%)

Previous

Reaction: 15.00 Hrs.

(27%)

Assessment: 16.10 Hrs.

(30%)

Planning: 20.63 Hrs.

(38%)

Admin.: 2.80 Hrs. (5%)

New

Efficiency Gains

Equivalent to an additional 5.6%-11.3% of additional field

supervision (50 hrs/wk) [Avg.= 8.5%] excluding punch list

operations

With punch list efficiency: 8.2%-13.8% [Avg.=11.0%]

* “Earned” Hours are defined as time spent on planning and assessment activities

Metric: Previous (Baseline) New

“Earned” Hours * 38.93 40.43

Actual Hours 38.93 36.23

Efficiency 1.000 1.116

Metric: Time Savings

Increase in “Value Added” Planning 1.5 hours/week

Travel Efficiency 1.33 - 4.17 hours/week

Punch list Efficiency 2.0 hours/day during punch list operations

Benefits - Step 3:

What part(s) of this change really

result in added value to the

project/owner?

To other parties?

Root Causes of Rework

Human Resource Capability

Unclear Instructions to

Workers

Inadequate Supervision & Job Planning

Excessive Overtime

Insufficient Skill Levels

Engineering & Reviews

Late Design Changes

Poor Document Control

Scope Changes

Errors and Omissions

Leadership And Communications

Ineffective Management of Project Team

Lack of Operations (End User) Persons

Buy-in

Lack of Safety and QA/QC commitment

Poor Communications

Construction Planning & Scheduling

Constructability Problems

Late Designer Input

Unrealistic Schedules

Insufficient Turnover &

Commissioning Resourcing

Material & Equipment

Supply

Untimely Deliveries

Prefab. & Constr. Not to Project

Req.

Non-compliance with

Specification

Materials not in Right Place

when Needed

Breakdown of Rework Causes

*(COAA study of over 100 constr. Projects)

Engineering & Reviews 55.41%

Human Resource Capability

18.28%

Material & Equipment

Supply 23.46%

Leadership & Communication

0.38%

Const. Planning & Scheduling

2.47%

Construction Owners Association of Alberta

Document Control

40%

Quality & Managerial

60%

Skanska Specific

Benefits - Step 4:

How do we translate that “value”

into real dollars?

Mobile Technology Research Conclusions

Estimated 5% of overall project cost spent on rework

$5M Total on a $100M project

50% Trade Costs

50% Project Costs/Contingency

90%

10%

Document Control Rework:

Trade Costs

Project Costs/ Contingency

23%

77%

Quality / Managerial Rework:


0

50

100

0 200 400 600 800

% o

f R

ew

ork

Avo

ided

Additional Hours Spent (weekly)

Opportunity to Avoid Rework through Additional Planning & Supervision


1/3 of all rework could be avoided with an additional

50 hours/week of field supervision & planning

90% avoided quality control items

10% avoided document control items

Potential Savings from

Additional 50 hours of Field Supervision

Trade Cost Savings $500 K

Project Cost / Contingency Savings $1.17 M

Total Savings $1.67 M


Mobile Technology (excluding MERS) allows CM

employees to be 8.5% more efficient on average

Equates to $142K in avoided total rework

$99.5K in avoided project costs

Hypothesis: In the long term, reductions in trade cost

rework will reduce bids, translating into further owner

savings.

Return on Investment Summary

Project Costs Only 17%

Overall Costs 67%

Research Framework Review

Time Savings and Efficiency Gains

Decreased Weekly Hours

Worked

Increased “Value Added”

Planning

Reduced Rework

Contingency /

Owner Savings

Subcontractor

Savings


Mobile Electronic Resource Station Benefits: 45% reduction in “Document Control” related rework

(approx. 18% of all rework)

Positive ROI for projects valued over $7.5M

Realized Savings from Mobile Electronic Resource Station


Project Cost / Contingency Savings $ 90 K

Overall Savings $900 K



Overall Costs 16300%

BIM – Implementation Costs

Direct Costs:

Indirect Costs:

2 hrs/week of ongoing team training

Investment

Smartboard

Performance Laptop Premium

BIM Suite of Software (unlimited users)

Free BIM Viewer

Misc. Training

TOTAL Direct Costs $17,500

BIM – Realized Benefits

Pre-Construction Benefits:

3-4 Days saved through model quantity verification

Clash Detection & Coordination Benefits

33% reduction in MEP coordination time

$90K in overall avoided rework

BIM Coordination Savings from Avoided Rework


Project Cost / Contingency Savings $50 K

Total Rework Savings $90 K

BIM – Return on Investment



Overall Costs 414%

− Not inclusive of additional benefits resulting from

additional time which is no longer spent supervising

rework


ROI

Project Total

Mobile Technology 17% 67%

Mobile Electronic Resource

Station

1540% 16300%

BIM 186% 414%

Overall Technology

Implementation

122% 948%

ROI Projections for Future Projects

0%

200%

400%

600%

800%

1000%

1200%

1400%

Re

turn

on

In

ve

stm

en

t

Total Project Cost

OverallImplementation -Project Benefits

OverallImplementation -Total Benefits

Questions

Will Senner

Assistant Project Manager

[email protected]

919-291-1425

mailto:[email protected]

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