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Graduate Research Seminar Fall 2002

Transcript of In planning your work, you have prepared a draft outline ...dcom.arch.gatech.edu/courses/cic/Final...

Graduate Research Seminar Fall 2002

COA 8903 ES Strategies for IT Adoption in the Building Industry

Prof. Charles Eastman Dr. Rafael Sacks 

College of Architecture, PhD Program

Student: Eduardo Lyon

IntroductionAlong last decade development, we could perceive the increasing impact of

information technology and communications in our daily life; almost every aspect of our lives has been affected by it. Easy access to more and more ways to receive and

manipulate information has been influencing in different profession developments. Architecture, affected by this phenomenon, has had questioning in all its aspects.

Some of those have been favored by a progress without any doubt, especially on those related to the information exchange gathering into a project generation process, and

later on the construction of it. In another way, digital media possibilities, not only in the speed of data manipulation but also in the amount of information,

increase workflow optimization. At the same time it postpone our concern about quality aspect of the project process, and leave us ignoring the modifications which

could be operating in the architectural design process. Now a day, as a result of the massive use of computer aided design and drafting software a clear modification

in the traditional architectural working process is noticed, its consequences could not be clearly perceived.

The architectural project process brings up a certain amount of topics and through of them it could be analyzed and build; those topics establish the

architectural language. Through a sequence of iterative operations along the different stages of the design process. The architectural object is manipulated as

an spatial structure which includes multiple dimensions like movements, acts and events. This spatial structure can be dismounted in heterogeneous parts, through

different operational conditions (technical, economical, functional, visual, geographical, etc.). Design process is a negotiation between multiple actors and is

characterized by a high abstract condition. The parameters needed to guarantee the architectural project process coherence are multiple and conception mechanisms stay

all the time implicit inside it.How is possible to develop a project elaboration process, which improves its spatial

definition with other variant, and invariant?Every process means to establish relations between objects and heterogeneous events.

The organization and components of every architectural conception are inference and deduction agents from which a requirement structure can be detached. This

requirement structure allows us to define spatial configurations to give place to potential conditions inside it. This process is revealed through successive scale

changes, oriented to control the provisional solution and to improve the original requirements. Consecutive project adaptations describe the complex negotiation

process from the first contact between the client and the architect, until the end

Strategies for IT Adoption in the Building Industry 2

of the project, inscribing the client requirements in a process which establish transformative relations between the different dimensions which are included

(individual, object and context).

The realization of superior condition projects, in relation to how is possible to manage an increasing complexity including different parameters,

processes and actors involved, demands at the same time the understanding and management of more complex theoretical fields. If architecture has the capacity to

propose its own artifacts, this complexity not only has to find its origin at the contemporary reality but also has to find a equivalent complexity in architectural

thought. Then the architectural project take form as a continuous research, a process of successive approximations in which the architect achieves numerous

departures and returns between the different stages. The computer, as productive tool, with it ever increasing calculation and memory capacities, transform itself in

an essential tool in order to achieve economy of time, not only in the design phase but also in the corrections, improvement, and execution of different versions and

stage outlines. Therefore, in an immediate perspective the computer is a media that clearly increases and rationalizes the production.

The development of different technical elements of computer-aided design (CAD) has been traduced on the computerization of a maximum of the possible duties

of design. In architecture, different parts of the architectural project have been incorporated to CAD routines, mainly through the creation and modification of a data

structure, which represents a model of the designed object. This model offers a graphic interaction and makes possible the use of new design tools and design

routines. Later this data modeling and its manipulation enrich the process, and finally its graphic visualization improves interaction with the architect.

Generally is possible to state that CAD software manage data according to numeric variables, then using different mathematics algorithms, CAD software make possible

to add, compose and decompose those algorithms, and transformed them into graphic or numerical data capable to accept high quality visualization, animation and physic

prototyping. With this systems assistance, objects (Stable geometric entities) manipulation allow us to make geometric transformations, sections, additions,

displacements, changes, deletion, and calculations, in order to evaluate specific characteristics from different space or object components.

At the same time CAD systems modify the way in which information related to an specific project stage could be manipulated, it mean you can constantly go and come

back trough the design development process.

Strategies for IT Adoption in the Building Industry 3

The ubiquitous of computers and associated technology in relation to it use in research and architectural practice states two related areas:

1. The use and development of computer tools oriented to architectural design.2. The application and development of new conceptual and formal theories.

The information technology has stimulated design and formulation of

increasing number of CAD software. Software elaboration supposes a new conceptualization of our discipline knowledge, which is a body of laws and rules

that commands any architectural project process elaboration. This conceptualization precedes the elaboration of the project, therefore as preliminary stage of design

conception is essential for it comprehension, and thereby it field is theoretical. Software writing demands a description of information and storage of it in

databases, in addition to this software writing have the capacity to build new set of parameters and to determine new relations between data. Each software contains it

own limits, which foreshadow the objects capable to be produced. The complex of functions able to be produced, by the specific software interface and the graphic

space that they determines, defines these limits. The architectural object modeled through a data structure provides a powerful analysis tool. Therefore, allow us to

analyze a certain number of objects according to specific analysis criteria. These analysis criteria include a set of analytical methods to comprehend the

architectural project process operations, and to define an object generation process. This process allows advancing through different elaboration stages, in an

iterative process with permanent feedback from previous phases.Real objects are every time more complex, modeling techniques make its

parameters evident, in order to be recognizable. Besides, object modeling makes possible to assign other object attributes and allow us to control object

modification and following manipulation. This object modeling is an unavoidable architectural project conceptualization form. A CAD environment is not only a design

media but also is a filter to perceive an object, according to this, a CAD environment conditions the conception and perception of an object. This theoretical

condition conveys from the particular connection which CAD environments pose in between the object image and it information, and implies that this instrumental

space (CAD environment) conditions the way in which you consider the object.

Strategies for IT Adoption in the Building Industry 4

1. Overview of the architectural services Sector:1.1 Work structure:

There are many references about how to organize an architectural firm1. Sub

sequentially, in the professional field there are several practice models organized according to specific work orientations and social roles2. Nevertheless, the

architect’s role in the building construction process is to provide drawings and technical specifications to describe what to construct. In addition to it the

architect must assist the client in order to obtain project approvals from local authorities or government officials and to represent or/and assist the client during

the construction process with the aim of comply with the architectural project. Sequentially, and in order to obtain a more clear idea of the work organization at an architecture firm, I will look at some general organizational aspects of architect work that are independent of the technologies to perform it.

Nevertheless, the enormous advance in management techniques3, architects tend to ignore them. Probably the complexity of these techniques commonly oriented to

large offices or big corporations, scare them, and avoid it use by architects. Furthermore, large architecture corporations are recently appearing and still had no

size comparison to what we understand as a business corporation. Anyway, the principles governing the management strategies are applicable on any scale, and

probably a management expert or project manager with management skills should be part of any project team, nonetheless this is not a common position in an

architecture firm. Inescapable sooner or later according to size increase any architectural firm needs to plan and control the activities that are performed

inside it.

1 PROJECT MANAGEMENT, Strategic Design, and Implementation, Third Edition. Cleland, David I.1998 or CONSTRUCTION PROJECT MANAGEMENT, Professional Edition. Gould, Frederick E. & Joyce, Nancy E.20012 The image of the architect / Andrew Saint. Yale University Press, 1983.

Strategies for IT Adoption in the Building Industry 5

According to it internal and to it external relations with clients, contractors, subcontractors, consultants, local government and other authorities; an

architectural firm is a complex legal organization. This complex organization is regulated by a series of contracts and other documents that avoid future conflicts between parts. However, unavoidable, conflicts still could appear because of decisions are not recorded or tracked in a correct way.

In a equivalent way, internal relations in a architectural practice need to be regulated, in order to do this the first step is to set a financial management structure, and again this means the inclusion of a financial manager in the team. The financial manager mission is not only to perform adequate office accounting and

payroll control but also to structure financially the firm and each project entering in it. In addition to the financial flow control, an architecture office must be

understood as a flow of information; in this way, somebody must control the flux and distribution of the information inside the production process. This information is

characterized by an extreme diversity in origin, format, and media delivery; from plans, letters, phone calls, faxes, e-mail, different sizes packages and samples to

different types of meetings. An architectural firm must deal with a highly complex variety of task.

A communication manager must be included, or a communications strategy performed in order to concentrate the firm on to the design process or production activity. The

design process conveys from very abstract ideas to a set of descriptions that make possible to built something. This process is similar to other object design process

but has enormous variations according to object complexity and the variety of people that take part in it, is in this way that building construction process is on the

highest level of production processes complexity. Anyway, for architects the design process main product is the architectural project. It consists, as mentioned before,

in a set of descriptions expressed in plans, written documents and on site instructions. Is in this way that the architectural project process is the most important activity in an architectural firm, for that reason, I will analyze it in a closer view as main subject of this report in a following chapter. Besides, in some

degree, all the above-mentioned activities are external to what we understand as the architect work, but many architectural firm failures had strong relation to miss

attention to these aspects of architect work. Finally as any production process there are some residuals, physical and organizational remains that need to be

evacuated or storage for future re-use, a services area and a file storage and retrieving strategy must be provided, and an adequate space for disposal and storage of information too.Administration, production, services, and storage are the main activities in an

architectural services firm that are inscribed in a more complex set of activities,

Strategies for IT Adoption in the Building Industry 6

the building construction process4.

Strategies for IT Adoption in the Building Industry 7

(Fig.1 the building construction process.)5

5 Based on original sketches in Architect?: a candid guide to the profession / Roger K. Lewis. Cambridge, Mass. : MIT Press, 1998.

Strategies for IT Adoption in the Building Industry 8

Funding disbursed as construction proceeds

Architects and Engineer administer construction contract

Building inspectors inspect the construction

Contractor builds the project

Identify project

need/Obtain site control

Marketing/obtain preliminary sales or leasing commitments Site ready/

Market verified

OWNER/CLIENTAttorneysAccountantsReal state brokersProperty managersInsurers

Use, Sales or Leasing

Repay lenders and investorsFunds readyObtain Equity and debt funding

commitments

FINANCERSInvestorsLendersMortgage bankers

ContributorsGov. Agencies

Final bidding and

permit documents

Construction documents

Design development

Programming and

Schematic design

DESIGNERSArchitectsEngineersSurveyorsConsultants

Post occupation evaluation and photos

Building permit issued

Owner awards contract

Warranty period

THE BUILDING CONSTRUCTION PROCESS

Marketing or plans for use or operating continue

Final receptionOr building certification

PRE-CONSTRUCTION CONSTRUCTION USEACTORS

The architectural design process

APPROVERSBuilding

departmentsZoning agenciesDesign boardsOther agencies

Neighbors

CONSTRUCTORSGeneral

contractorConstruction

managerSub-contractors

SuppliersInsurers

Obtain zoning variances other required approvals and review with agencies

Select contractors and obtain cost estimates; Bid and negotiate final construction contract.

1.2 The impact of Information technology on architectural services sector: The emergence of information technologies in the architectural practice has considerably modified the methods used to conceive, analyze and communicates

architecture objects. Moreover, information technologies, in a wider perspective and in a similar way than other professions, has modified not only

the way in which projects are developed and managed but also the internal organization of an architecture firm. In this way, some experts affirm that a

major consequence of information technology emergence is the increase of professionalization in architecture firms6. Because of this phenomena

architecture, firms must look into production organization and management methods from other production sectors. A look to ten o twenty years ago work

organization, and a comparison with actual information technologies influence in architecture firms situation, leads us to establish some of the consequences

of technology implementation 7:a) Increase in productivity associated to a costs decrease: A technologically implemented architectural firm can develop a complex

project with a third of people needed in the past with no computer use. This is

a dangerous assumption in the way that projects also are increasing its complexity in the way that technology is incorporated8.

b) Redistribution and decrease of time dedicated to specific repetitive tasks: Some specific tasks from old practices had disappeared or minimizes; ink

delineation, error hand erasing or ink pen hatching are disappeared. Instruments to perform the architect work had been replaced and for example;

you do not need to draw sanitary using plastic tools. However, this does not means that repetitive tasks had disappeared, because new tasks have appeared,

like software install and remove or layering drawing organization. In a general appreciation, mechanical and heavy task had been reduced and had been

redistributed in an original way inside the process.c) An increase in the amount of available information for each project: One of the fundamental changes is the increase in the amount of available information for each project, this phenomena is inside the logic of computerization and it

will be more notorious in the followings years, in the way that it will increase the availability of internal and external databases. Computerization

had increased enormously the chance to build a project composing from different kind of information which can be integrated in to the architectural

project, and this is valid not only for the external information but also for the internally generated information. At the same time, computerization

6The digital architect Ken Sanders. New York, J. Wiley & Sons, 1996. 7 Idem 3 8 Idem 5

increases the amount of information able to be re-used in the future and to promote it organization9.

d) The necessity of a systematic approach to organize the different tasks:A computer is an artifact that organizes more than seems to, not only organizes

the files and folders following the user instructions but also obligates the user to be organized. Eventually projects organized inside computers will

demand organization protocols that specify how to perform specific operations and tasks.

e) Horizontal integration tendency:In general terms, there are two work organization modes; a vertical flux of

information organization characterized by a general and important decision taking on top and detail development of it on the base. This work organization

is structured in a hierarchical organization with several clearly differentiated positions. A variation of this is a teamwork-based organization

with a project manager on top of a smaller but similar hierarchically organized structure. The second type of organization adopts a horizontally organized

structure, inside it each specialist develops different project aspects, or specialty teams in highly coordinated organization take charge of specific

tasks, moreover this organization demands highly coordination in decision taking, specially decisions concerning project objects elements in use and the

relations between them. Nevertheless is difficult to find a strict application of these organization modes, commonly a mixed structure that combined both is

noticed10.f) A tendency towards a project development based on existing and available objects:Computerization allows the open possibility to manage easily and fast

prefabricated objects, and in the way that architect familiarity and availability of database increase, the prefabricated object direct

incorporation to project is favored. This tendency is promote by the increasing technology incorporation on specific construction industry as we can see on

steel industry and soon in the pre cast concrete sector. However, it allows not only prefabrication but also allows made to order direct manufacturing. This

tendency is introducing a complete new set of prefabricated building and direct part manufacturing11.

g) New applications potentiality:New applications appearance has a positive effect on the emergence of new

work methods as we can see in areas such are the facilities management and

building visualization and artificial lighting analysis or building energy consumption analysis12.

1.3 The architectural project process:There are different approaches to divide the architectural project. According to

AIA Document B141, basic architectural services are divided in five phases and each phase has a specific product or report. This division deliberated excludes pre

design phase to consider it as additional services. Meanwhile using the AIA information and some other sources like the IAI13, I will include all the stages

together in order to have a more complete perspective of the architectural project. According to IAI one can recognize three major phases in the process; Pre design,

Design and Construction each phase is also divided in other stages.In each phase have a specific product, or a set of documents is produced. Those

documents can be described as reports of the project advance, and their function is to maintain the whole process with a constant flow of information, but none of

these reports represent or describe the complete building, the following is a description of each stage and the product of it14:

1.3.1. Pre Design:1.3.1.1. Identification of needs:This stage is focused on the determination of specific client and project

needs, building type, building size, infrastructure needs, site size and any other client or project specific technical, legal, organizational or spatial

requirement. The most common documents at this time are written documents, organizational diagram, spreadsheets, and forms.

1.3.1.2. Feasibility studiesAccording to a client requirements, project needs, and potential site or sites selection and its specific conditions, this stage consist in the

definition of an architectural concept provided by a conceptual design process which includes sketches, general schedule and general estimate. To

develop this stage the architect use sketches, flow diagrams, spreadsheets, and written documents formats.

1.3.1.3. Site selection:Consist in a process of site selection according to the architectural concept and the marketing analysis and considering legal aspects, local government or

authorities conditions, and financial structure. Written reports, site plans, topographic plan, spreadsheet are major product of this stage.

1.3.2. Design:

1.3.1.1-Programing:Programming stage is about the definition of spatial specific

characteristics of the spaces included in the project. From a list of

activities and a set of relationships in between them, this stage is focused on the analysis of spatial conditions inside the project and how they relate

to a specific site and an architectural concept. Program diagrams, functional diagrams, schedules in spreadsheet or flow charts are commonly used in this

phase.

1.3.1.2. Schematic design:This stage is focused on the analysis of the client program; site and

budget, once determine a basic program, a site and an estimate budget, the architect produce preliminary design studies using sketch drawings, diagrams,

massing studies, study models, perspectives, site analysis drawings, and also plans, sections and elevations in sketches form.

1.3.1.3. Design developmentDesign development stage consists in a further development of

schematic design using measurable drawings and includes the definition of

basic project systems and materials. Major decisions in this stage are to define project size, general dimension of it, an architectural project

specific expression, and an adjusted estimate. More precise plans, sections, elevations, site plan drawings more realistic perspectives and study models

are developed in this phase.

1.3.3. Construction:

1.3.3.1. Construction documents:Consist in the detailed design of the project, including engineer

design, selection of materials, construction details, and all the construction documents necessary to obtain construction bids and building

permits. Consist in working drawings, specifications, bidding information.

1.3.1.2. Bidding or negotiation:This stage consists in the assistance the client in finding; screening

and selecting qualified general contractors to obtain bids or to negotiate the construction contract. During and after the completion of the

construction documents the architect assist the client in reviewing bids and awarding contracts. Contractor’s bid, construction contract and modified

design documents to comply with the final specifications are produced here.

1.3.1.3. Construction Administration:As representative or assistant the architect assist the client in

construction administration, this stage includes design changes, site visits, construction work inspection, payment request, and specification in detail of

any part included in the project. The architect performs also as mediator in between client and contractor. Design change documents, Field reports,

certification of payments and completion are major activities.

Following a high-level process model of existing information-dependent workflows15

(Fig 2 Pre Design stage)

(Fig. 3 design stage)

(Fig. 4 construction stage)

(Fig. 5 bidding stage) (Fig. 6 conceptual design stage) (Fig. 7 legal requirements stage)

(Fig. 8 financial requirements) (Fig. 9 city approval stage) (Fig. 10 Marketing stage

1.2 Scale of industry sector:In the same way as we analyze the architectural project as part of the

building construction process, architectural services market must be analyzed as part of the construction industry market. According to 1997 economic census the

Construction sector comprises establishments primarily engaged in the construction of buildings and other structures. The total value of construction work in this

sector in 1997 was U$845 billions, 50% was produced in building construction area, it means around U$381 billions, building construction sector in Georgia state is a

U$28 billions industry, as we can see is a big market, now I will look inside this market to the Architectural, engineering & related services sector16.

1.2.1 Architectural, engineering & related services This sector comprises establishments primarily engaged in planning and

designing residential, institutional, leisure, commercial, and industrial buildings

and structures by applying knowledge of design, construction procedures, zoning regulations, building codes, and building materials.

Architectural, engineer and related services sector represents 15% of total construction market. Architectural services represent only 2% of whole construction

market, and include around 20.000 firms and 146.702 workers17. This is a small piece of the market for our interest, but let take a closer view inside. The first problem

in this assumption is that according to AIA18 there are around 80000 firms working in architecture in USA, this means that architects work is not just in the architecture

services area. In fact, the second largest in 2001 revenues construction manager ranking is an architects firm19. Using a closer analysis, I will look at the annual

revenues from the main professional firms involved in the building construction process20. There are six main categories; architect firms, architect and engineers

firms, engineer and architect firms, engineer firms, contractor firms and construction manager firms. All together obtained U$ 102.6 billion in revenues

during 200121. If we assume that the three first categories include architectural

16 US Census Bureau. 1997 Economic Census 3 Aplicaciones informaticas en arquitectura Javier Monedero Isorna, Ediciones UPC, 2000 9 Building product models / Charles M. Eastman. Boca Raton, Fla. : CRC Press, c1999. 10 Idem 511Digital design media / William J. Mitchell and Malcolm McCullough.New York, Van Nostrand Reinhold, 1995. 12CAD principles for architectural design :Peter Szalapaj. Oxford ; Boston : Architectural Press, 2001. 13 Idem 8 14 Idem 815Information taken from Building product models / Charles M. Eastman. Boca Raton, Fla. : CRC Press, c1999.

services, it mean architects firm, architect and engineers firms, and engineer and architects firms. All those together reported U$6.65 billion in revenues during

2001.22 If we think that the average percentage of revenues dedicated to information technology is around 8%.23 This means that we are talking about U$ 500 million in

Information technology investment. The first problem with this assumption is; we are putting together people that work in the building construction process, but in

different areas. For example architects firm and architects/engineer firm main work area are commercial and institutional, and a small portion in industrial. In the

opposite side, engineers/architect firm and engineer firms are more oriented to industrial and institutional sector24.

This turns a little bit difficult to engage them in to a common initiative. The

solution to put some of them together is to look at the possible associations that bring them together. The AIA is the biggest architect association in the USA and

probably in the world. AIA should be our target to focus our proposals, there are some funds from AIA dedicated to practice improving but still are small amounts

(U$100.000 annual per project) and in the other hand some earlier internal initiatives from AIA, as the contract document software, does not had a good

evaluation from the users25. Other possible approach is to focus in one larger or several medium size firms to

see how much they invest in information technology and what we can propose in relation to this money. 16,537 firms comprise the architectural services market,

with annual revenues around 16,5 billion dollars. 97% of architects firms are single unit firms; the distribution of firm according to its size and revenues is as

follow:

Firms size Firms (number)

% of total firms

Revenues 1997 in U$ 1000

% Total Revenues 1997

Small size firms (1 to 9 employees) 13282 80% 4631353 28%

Medium size firms(10 to 49 employees) 2886 17% 5945508 36%

Large size firms(50 to 499 employees) 362 2% 4899226 30%

Extra large firms(500 to more than 1000 employees)

7 1% 1022811 6%

Total 16537 100.00% 16498898(*) 100.00%(Fig. 11 Architectural firm revenues according to firm’s size)26

As we can see small firm are the majority in the market, but large firms concentrate the bigger amount of revenues, probably few larger firms or and extra large firm

should be more easily to focus on, as a target for a information technology incorporation proposal. At the same time larger firm have more expansion

capabilities than smaller ones.Other opportunities could be in specific building types that demand more intensive

or extensive use of technologies. Commercial buildings tend to be standardized in order to fix facilities cost to increase financial benefits, standardization is easy

to achieve using advanced information technologies, specially using parametric 3d modeling. Furthermore industrial projects demand high spatial flexibility according

to fast changes in production processes, commonly prefabrication is desired in order to fast track construction process, also spatial flexibility and prefabrication are

close related to digital technologies. An over view of how important are those areas for architectural firms should show us if there are specific building types to focus

on, fig 12 includes a table with architecture firm work according to building types:

(Fig. 12 Architecture firms revenues according to project type)27

As we can derive from the data many firms work in commercial building type and it is

an important source of revenues. Industrial building type neither represents an important sector to architects nor an important source of revenues, but still

represents an interesting sector to explore because of its present inclination to increase the use of technology. Classification according to revenue size (Fig. 13)

shows us that large size firms concentrate the largest amount of revenues and should be target of our specific proposal. A deeper knowledge about how those firm are

using technology and which plans them have to incorporate it in the future should clarify our strategies. Currently, we can deduce that small size firms and medium

Architectural design services (type of project)

Firms (number)

% Of total firms

Revenues 1997 in U$ 1000

% Total Revenues

1997

Predesign services 8446 41% 1389387 10%

Residential projects13015 63% 1524759 11%

Commercial projects15820 77% 4456756 33%

Industrial projects5698 28% 619679 5%

Public and institutional projects 10250 50% 4644225 35%

Other architectural design projects 5027 24% 777885 6%

size firms invest in between 1% and 5% of it revenues in IT. IT investment in architects firms normally represents one half the percentage of revenues that those

firms dedicated to marketing. This is a reasonable decision if we realize that they are in the process to build a name, where marketing should be the dominant

investment. The question is if is possible to create a marketing strategy based on technology oriented target image28? In larger firms, investment in IT increases

slightly but represents the double of investment dedicated to marketing. From a simple overview of the largest architects firm at USA, we can infer some benefits

that those firms are obtaining from the intensive use of technology29:

- Wider range of architectural services, most of larger firms provide extended services from application and use-knowledge availability, ranging from

graphic design including web design and digital video production through interior design to architecture services.

- Expanded fields of operation, larger firms are looking into bigger markets is in that way that you can find architects firms situated at the top of

engineer and construction manager revenues annual ranking, is technology allowing them to do this?

Finally is a clear tendency on larger firms towards Design Build orientation, if architect using IT are providing big savings to other actors inside the

building construction process, why do not take advantage of it and increase control over the whole process.

Firms according to revenues size in

U$

Firm number

Percentage of total firms

Revenues 1997 in U$ 1000

Percentage of total Revenues 1997

Small size firms (0 to U$25,000)

141 0,8% 2611 0.02%

Medium size firms(U$25,000 to U$250,000)

6560 38,2% 882476 5.4%

Large size firms(U$250,000 to U$2,500,000)

9130 53% 6797205 41,2%

Extra large firms(U$2,500,000 toU$10,000,000 and up)

1296 8% 8812441 53.4%

Total 17127 100.00% 16494733(*) 100.00%

(Fig. 13 Architecture firms revenues according to revenue size)30

(*) The difference in between this two number relates to the incomplete information from few large firms.

rsacks, 01/03/-1,
Page: 1What is the source for this?

Thompson Ventulett, Steinback & associated, is a Atlanta based Architectural

firm with 268 employees and reported revenues in 2001 about U$ 40.3 Million31 and if we projected an annual information technology budget around 5% of revenues32, it is

mean about U$ 2 million and we are talking about one firm. Anyway there are several possible financial sources in the sector, what also is

important is what the architects and especially firm principals think about IT incorporation now and in the future.

2. Available and suitable information technologies:Recent surveys show a full cad technology implementation in architects firms in

addition to it also e-mail, web sites, and database and accounting software extensive use is also noticed33. Architects firm are fully computerized but still

troubled with information technologies, the cost of purchasing, implementation and training. The software decision in an overload market and the new operation

conditions inside each technology are the main issues today in relation to information technologies at architectural firms. In Most architects firms is widely

acceptation of information technology importance to business operation, but still there is a resistance. According to PSMJ’s A/E Automation &Information Technology

Survey, few firms are resisting automation, but the industry is still hesitant to get out in front and try unproven automation approaches. However, the “leading edge”

group is getting substantial business benefits and is more satisfied with technology results than other respondents34. To understand the actual use of technology in

architects firm is necessary to make a division35 in between them:

2.1 Base technologies: Are the basic technologies that allow you to be competitive in your specific area. Other than phones, cellular, PDA’s, voice mail

and fax machines; base technologies in the architect office are personal and portable computers, printers and plotters, scanners and digital cameras, networking

abilities and file server. Software also is part of base technology, the most used packages include: Spreadsheet packages, database software, project

manager/scheduling software, financial managing, or accounting software. Nevertheless, the most important package is CAD (computer aided design) software

that at least includes two-dimensional drafting software and basic three-dimensional modeling software.

2.2 Key Technologies: These technologies provide you competitive advantage. Visualization software including rendering and animation capabilities, virtual

reality with immersion capability software and hardware, video conferencing systems, web sites including intranets, GIS applications, extranet or database access.

2.3 Advanced technologies: These could become tomorrow’s key technologies, object oriented or parametric 3D cad, 3D building product model, building analysis and simulation software, design collaboration technology, rapid prototyping and direct

manufacturing36.

To be more specific about tasks, applications, and software’s, I will show it availability in the following table37:

(Fig. 14 Task, application, and software available)

Task Application Software (2002)

Two dimensional

sketchesCAD 2D

Architectural Studio, Sketchup, Conceptdraw, Harvard Graphics, Painter, Paintshop

Autocad, Microsation, Archicad, Arris, Vectorwork, Allplan, Visio

Image Photoshop, Illustrator, Freehand.

Three dimensional sketches

CAD 3D

Architectural Studio, Viz, Maya, Rhinos, Ligthwave, FormZ Autocad, Microsation,

Archicad, Arris, Vectorwork, Allplan.

Two dimensional

plans CAD 2DArchitectural Desktop, Microsation,

Archicad, Arris, Vectorwork, Allplan.

Three dimensional models

CAD 3D

Revit, Solid works, Architectural Desktop, Viz, Maya, Rhinos, Ligthwave, FormZ Autocad,

Microsation, Archicad, Arris, Vectorwork, Allplan, and Accurender.

Visualization

Rendering

Architectural Studio, Viz, FormZ, Maya, Universe, Artlantis, Softimage, Microsation,

Archicad, Renderworks.

Animation Softimage, Viz, Max, Maya, Cinema 4D,

Ligthwave, FormZ, Universe, Artlantis,

MultimediaDirector, Quick Time, Quick Time VR, Eon studio, Ipix, Flash, Premiere, Cleaner,

Final Cut, Avid, DVD studio.

Analysis Structural

ETABS, GT STRUDL, Multiframe 4D, PRESTO, RAM

Structural System, ROBOT Millennium, SAFI 3D , SAP2000, Steel Designer, Structural for

MicroStation, MIDAS/GENw, WoodWorks, StrucPro, STRAAD.

Lighting

Helios, AGI32, FormZ, Photometric Toolbox32, Lightscape, Viz 4, Lightscape, LightWorks, Moonlite, Real Light, SCOPE, Lightware, Lumen Micro, CANDELA GIS, CL-Electrical DIALux, VectorWorks SPOTLIGHT.

EnergyDOE, C-MAX, Building Design Advisor, BLAST,

Energy Plus, Visual-DOE, EDR-Charrette

Analysis

GIS

Arc/Info, ArcView, Atlas*GIS,

AutoCAD/Geographic, DigiCAD, EPPL7, ERDAS, Eagle, Point GIS, FMS, Framme, GRASS,

Geo/SQL, Idrisi, InfoCAD, KDMS, LT Plus, MGE, MIPS, MapGrafix, MapInfo, MapLinx,

MapViewer, MicroStation, Geomedia, PCGPS, PLIS, REMUS, SSIS, Simplicity, Site Comp,

Soil GIS, Surfer, Ultimap, Vision.

UrbanSpatialist, Axman, Pesh, SpaceBox, NewWave,

OrangeBox, eNetBox, Ovation, Depthmap.

HVAC

Airpak, HVAC-Calc, TRACE, Load Express, HVAC

Pro, PipePro, HVAC for MicroStation,Actrix Technical, CADvent, DigiTools Ci, DrawMaster

HVAC, DuctPlus, Electrical Control, EZ DRAFT Plumbing & HVAC, FlowTools, Mech-Q HVAC/Ducting,

Mech-Q Pro + HVAC, PMS, Fire Pak, S8, SPI - 3D Ducting, TurboDuct.

Organization

OperatingSystems

Windows 2000, XP, MacOS, MacOSX.

Networking Windows 2000P, MacOSX.

Communications

E-Mail Eudora, Outlook, Entourage

Web browsing Explorer, Netscape, Opera

File transfer Fetch, Cute ftp, Anarchie

Intranet IntraSmart, Intranet Connections, FirstClass, ImageSite

Teleconferencin Polycom systems, VTEL systems, STARBAK

g Communications

Management

And collaboration

SchedulersFast Track, Visio, Msproject, PlanTrack,

Prolog Scheduler

Project

Management

Deltek, Quickbooks, Quicken, Primavera,

Prolog Manager

Database

ManagementAccess, Filemaker, SQL

Accounting/

Financial

Deltek, Quickbooks, Quicken, Excel,

Primavera, Timberline

Collaboration

Web sites

Workgroup.com, e-Builder, eProject Express,

constructware, buzzsaw

GroupWareLotus notes, Microsoft exchange,

Novell GroupWise

Facilities management

Facilities

managementSoftware

ActiveAsset Planner, ActiveAsset Solutions,

ARCHIBUS/FMCCM PLUS, Facilities Management for ARRIS CAD, FACIS, Vision/FM.

Administrative

Spreadsheet Excel

Contract editor AIA EF

Text Editors Word, Word perfect

Specifications Specification

softwareSpec link, e-SPECS, Master spec, SPECtacular

Estimate and

material cost

Cost

Estimating

CD Estimator, Timberline, Costimator, Excel,

RS Means, Cost Works

Design

presentation or proposal layout

Page layout Quark press, Page Maker, In Design

Digital VideoPremiere, Avid, After Effects, Sound Edit,

Quick Time Pro

Slide showPower Point, Harvard Graphics, Architectural

Studio

Text captureOptical

character

recognition

Omni page, Paper port

Drawing captureDrawing

recognition

Streamline, Corel Trace, Autodesk CAD Overlay, AutoGT, Convert 2000, Draftsman, GTXImage CAD, GWN-TOPO, Image Tracer for Autocad, MicroStation Descartes, Perfect, Exposure, PixEdit, Provec, RxVectory, Scan 2 CAD, ScanFix for MicroStation, ScanVec, SmartPixel for IntelliCAD, SmartView for Visio, TracTrix, Vextractor, Vpstudio.

Image capture Scan Hardware provider

As we can see from the available technologies chart, is hard to find another profession working with such application and software variety, this situation takes

sense, if we relate this diversity with our flowchart and the variety of tasks performed by architects during the architectural project. If those applications

suppose to reduce time effort relations, why architects are not seeing those tools as effective as it was some years ago?38. One big frustration cause is the time

effort necessary to deal with that application and software variety39. The second cause and more important is the excessive variety of formats that those applications

and software put in place. Some times, you need to be an advanced user in several software and an expert acrobat in some more complicate abilities like

interoperability issues; to migrate from one software to other choosing the correct extension or adequate format. But what it is in the back rather than technical

problems are factors like learning curves, that in some applications are too steep, and overall is the difficulty to digest the crucial understanding that digital

technologies imply new production processes and organizational methods. Architects firms are still using technologies in the same way that previous techniques, in that

way a CAD workstation is just an electronic drafting table, and a digital model is a digital maquette, a web site is a digital firm brochure, an e-mail is a digital

letter and a digital presentation is a slide show. The real change is not perceived yet, and it will not be perceived until architects realize about the implications in

the use of information technologies and the great potentiality inside them. The role of architectural education in order to achieve IT incorporation in architectural

design project process is fundamental. Presently, because of the massive use of computer aided design and drafting software in architecture schools, a clear

modification in the traditional architectural education environment is noticed. Still the real consequences inside the design process could not be clearly

perceived, mostly all architecture school had incorporated software teaching in their curricula, but few are thinking about the new processes, opportunities and

benefits from information technology incorporation to design processes. This lack of adequate training and knowledge had been pushing larger architecture corporations to

create its own training centers inside the firm, and curiously, most of them denominated its “universities”. As we can note the change has to come from the

foundation of architectural education and from there to be spread into the professional field.

38 Idem 2939 Idem 27

3. A framework target plan, including assessment of potential benefits:3.1. IT incorporation in the building construction process:

Architectural design project process is part of a bigger process denominated building construction process (fig 1 on page 7). High complexity is noticed in this

process due to several actor integration in a network of many interconnected processes. But still we can make a clear process division, at least we can divide it

in two major stages, the intricate process to design a spatial structure or to produce the set of descriptions necessary to build something, and other and rather

different, the construction phase which is the process to build that spatial structure. Multiple forces influence and take part in those processes, and different technologies, tools, and methods are used. Then if the goal is to present IT solutions which benefit the complete process, we have to think not only in the

location of specific processes inside the building construction process to improve but also in the interoperability and interconnection of those specific processes

inside the whole building construction process. The question is how farther we can go in the analytical process of part disintegration and still obtain objective

benefits for the whole. In order to detect possible processes to improve, reengineer, replace, or just erase, a closer look to the collected information will

allow us to detect where the problems are. The great difficult of the building construction process arises from the natural division mentioned some lines up in

between design and construction phases. This differentiation is enhanced by the necessity to convey from abstract ideas in to build form and encapsulate the main

noticed problem in building construction process. The design process mission is to provide the necessary information (a set of

descriptions, plans or drawings) to construct a building, the problem is that the information produced in the design process does not cover the complete information

to build the object, this fact favors several conflictive situations. Most of this conflicts or problems are produced by lack of adequate or more comprehensive

descriptions and inconsistency between them. Additionally the process complexity in relation to amount of actors taking part on it provides several information sources

and of course several information data formats. The solutions to this problem are an enriched object description with extended capabilities to carry object information 40(knowledge-based buildings model) and a unique format to convey with information from all the actors into process with an adequate grade of consistency. Digital

knowledge-based models of buildings consist in the integration and use of several technologies; multiples computers applications, database, work flow integration,

network and web based technologies, and expanded automation of work processes41, and

it is based on 3D modeling integration and Industry Foundation Class (IFC). The Industry Foundation Classes was developed by the International Alliance for

Interoperability (IAI), to provide data exchange and sharing capabilities for the building and construction sector of the industry.42

3.2. IT incorporation in the architectural project organizational framework: If we agree in a wider incorporation of digital knowledge-based model of

building using parametric 3D modeling and extensive integration to industry Foundation Class (IFC) in to the building construction process, we have already set

up the basic conditions to enhance the architectural project process. Nevertheless we have to think that the architectural project is the main product of the

architectural design process, and in order to achieve continuity in time any architectural firm need to set up an organizational infrastructure to provide the

organizational frame work that allows the architects firm to operate in time with financial success. Administration, production, organization, marketing, information

storage and retrieving, and services provision are the main activities in an architectural services firm. These activities are part of an organizational

framework. Technologies in this case must be oriented to the office automation goal in the broadest terms. An effective administration must have an equivalent effective accounting and financial software. A network of efficient collaboration based on strong use of intranet43 and extranet44 must be the basic for an architectural firm;

it also may include videoconference, integrated communications system, and a highly interactive and collaborative web site as main front of the extranet firm. A

marketing strategic plan supported by intense use of digital media must set up a strong firm’s presence in an increasingly competitive market; from web site through

digital portfolios to multimedia presentations including digital video presentation, according to a marketing plan, must provide a continuous flow of work and a

successful practice. Finally, an efficient organizational framework must provide a clear organizational strategy, strongly supported by an easy to access and fast retrieve and storage information system. If we consider the above conditions either in the building construction process sector and inside the firm’s organizational

framework as existing, we can go inside the architectural project process to see what specific improvements and which benefits we will receive.

3.3. Architectural project process specific improvements and benefits from information technology adoption and integration. 

If we accept the building construction process proposals already delineated in previous paragraphs, and we assume an equivalent IT adoption on the organizational

framework at architects firms level, also delineated in previous paragraph; Our main strategies according to the previous conditions should at least include the

following:

- Process reengineer: A complete reengineer of architectural project process to achieve a design build oriented strategy. IT adoption in architectural services sector is dramatically increasing the control over the architectural

object and is almost erasing the gap in between what we design and what finally is built. At the same time this increased control is based on the

object enriched amount of information, furthermore this information enhance and facilitates not only the design process but also the construction

process. Although this information is delivered directly to the contractor and benefits him or her, it does not mean an increase in the architect’s

fees. Finally the question is; if the architect possible control over the whole process is augmented by the IT adoption and actually is providing the

information for the whole building construction process, and subsequently nobody is paying for it. Why not to take control over the complete process

increasing dramatically the revenues from it?

- Market expansion: Identification of specific markets or building types with increasing demands of IT and design a target plan to explore them. New building types appears almost every year, existing building types has been

increasing its complexity and acquiring more type specific characteristics. According to theorists this trend is just part of the reality complexitation

process with the incorporation of IT to almost every aspect of our daily life. Highly technologized manufacturing processes in industry need flexible

facilities, possible to be transformed in order to support new and different processes. 3D modeling and flow process analysis incorporation to design

process provide a continuous ability to redesign and rearrange the process layout according to new conditions, probably in the past we were talking

about a new project today we can talk of a continuous process that also implies a continuous relation between architect and client. New production

processes, new retail strategies, new research facilities, specific medical centers and moreover are new markets to explore.

- Project collaboration: According to the availability of high-speed connection to Internet and strong internal network architecture, an Intranet45 and an Extranet46 based on TCP/IP protocol are proposed. A highly collaborative

process organizational framework involving all the actors (teamwork) as counterpart of the technology provided framework should be enhanced. The

network of digital communications provided by IT allows the incorporation of actors from the very beginning of the process until the end of the

construction, maintaining a permanent information consistency checking along the process.

- Services expansion: An expansion in the range of services provided according to the availability of technology and application-expertise, including design

build as major expansion field and other minor according to IT availability. Naturally Design Build should be the most attractive field to expand for

architects adopting IT, but is not the only one Facility Management and Pre Design services are also attractive in the way that are part of the same

process (Building construction process47). Subsequently several other services are easy to access according to software availability and training provided

by architecture schools; web page design, multimedia design, 3d modeling and animation services, digital survey, building performance evaluation etc. are

some of the possible new services areas.

- 3D parametric modeling: Adoption of parametric 3D modeling as base technology according Industry Foundation Class (IFC). Parametric 3d modeling enormously

expands the ability to manages specific object properties, at the same time allows architect to manages information in different ways according to the

different requirements in the design process. From object specific definitions trough its transformation along the process and its specific

material conditions definition. This object representation allows the designer to migrates with the object design from the preliminary stages until

the construction of it.48

Major benefits as results of these proposals are:

- Increase in revenues: In the way that IT adoption reduces time in design process it lowers the production cost and subsequently increases the revenues.

- Time savings: IT adoption reduces time needed to do a project, reducing also construction time. In general terms, we can affirm that IT adoption in

architecture firms reduces necessary time to complete the building construction cycle.

- Decrease in errors and rework: This is a considerable factor in Construction industry that normally arises to 10% to 15% of construction cost.

- Increase information exchange: IT adoption increases not only the amount of information able to be shared but also the speed of data exchange. In this

way increases the speed of the design process and also the information consistency avoiding rework by inconsistency in between data provided from

several actors but referred to the same object.

- Increase the quality of the product: 3D modeling abilities to cover object properties allows to a very accurate description of it, and subsequently a better construction of it. At the same time this information is easy to share

and through its enrichment from feedback provided by different actors conveys in to a elaboration process of superior condition in relation to the

quality of the information produced.

- Increase collaboration: Improve the idea of teamwork and integration between actors, which develops a highly collaborative network not only along the process but also across it.

- Increase client satisfaction: A faster and better informed design process increases client satisfaction, at the same time specific client needs

satisfaction improves client-architect relation, increasing the opportunities of new works from the same client. The client is best informed and best

served according to his or her specific needs. A higher percentage of client repeat will be expected.

rsacks, 01/03/-1,
This is probably largely true, but could be qualified.
rsacks, 01/03/-1,
As above.
rsacks, 01/03/-1,
This is not a benefit in and of itself.

Following; the reorganization of the building construction process according to the Design-Build paradigm (fig. 15) and a high-level process model of proposed

information-dependent workflows49. (Fig. 16-18)

rsacks, 01/03/-1,
Apart from the changes in that there are no bidding related activities, it is not easy to see the difference between this proposed model and the existing process model. Also, design-build also requires bidding and contract, but at an earlier stage. What is described here seems more like ‘off-the-shelf’ construction, which then has financing and other costs. These do not appear in the cost calculations. Unfortunately, reality is very complex!

(Fig.15 the building construction process according to the Design-Build paradigm.)50

50 Based on original sketch in Architect?: a candid guide to the profession / Roger K. Lewis. Cambridge, Mass. : MIT Press, 1998.

Funding disbursed as construction proceeds

Architects builds the project

Building inspectors inspect the construction

Identify project

need/Obtain site control

Marketing/obtain preliminary sales

or leasing commitments Site ready/Market verified

OWNER/CLIENTAttorneysAccountantsReal state brokersProperty managersInsurers

Use, Sales or Leasing

Repay lenders and investorsFunds readyObtain Equity and debt funding

commitments

FINANCERSInvestorsLendersMortgage bankers

ContributorsGov. Agencies

Final estimate and

permit documents

Construction documents

DesignPredesign

DESIGNERS and BUILDERS

Architects EngineersSurveyors Consultants

Sub-contractorsSuppliers

Insurers

Post occupation

evaluation and Warranty period

Building permit issued

Obtain zoning variances other required approvals and review with agencies

APPROVERSBuilding

departmentsZoning agenciesDesign boardsOther agencies

Neighbors

THE DESIGN BUILD PROCESS

Marketing or plans for use or operating continue

Final receptionOr building certification

PRE-CONSTRUCTION CONSTRUCTION USEACTORS

The design build process

(Fig 16 Pre Design final stage)

(Fig 17 Design final stage)

Strategies for IT Adoption in the Building Industry 38

(Fig 18 Construction documents final stage)

Strategies for IT Adoption in the Building Industry 39

4. Assess the expected costs of achieving the plan51:

4.1 Process reengineer

4.1.1 Capital investmentsOption 1:

Financial manager with management expertise:Cost: $63,840. -52

Architect with construction management expertise:Cost: $53,840. -53

Literature: Books acquisition and procedure manual preparation:Cost: $1000. -54.

51 As a model for evaluation a medium size architect office is consider; a medium size office have in between 10 to 50 employees and develop at least 5 project a year with and average project size of $30.000.000.- and a projected 5% of revenues from each project.

52 Pre hire costs for Financial and management manager Candidate identification$1000 Interview process$1100 Offer Material$60Subtotal$2160.00Post hire costs Annual wage$55000 IT Equipment$3500 Employee benefits$2500 Taxes$5000 Subtotal$66000.00Grand total$63840.0017 Idem 1518 from: http://www.aia.org19 Building design & Construction magazine July 2002 ( http://wwwbdcmag.com) 20 Idem 18 25 J. Douglas Glasgow AIA I.T. Manager from Lord, Aeck, Sargent(Personal interview) 26 Idem 1627Idem 16 30Idem 16 31 Idem 1832 Architectural record Magazine May 200233 http://www.cadforprincipals.org/ 34The CAD Software Evaluation Report PSMJ Resources, Inc. 35 Kristine Fallon, The AEC Technology Survival Guide: Managing Today’s Information Practice.36 Idem 3 37 Based on personal information and sources 3 and 5. 40Charles Eastman, Rafael Sacks, and Ghang Lee propose this idea in Strategies for Realizing the Benefits of 3D Integrated Modeling of Buildings for the AEC Industry. 41 This also provided in Idem 40 42 Highlights of the Development Process of Industry Foundation Classes; Thomas Liebich, Jeffrey Wix

rsacks, 01/03/-1,
I am skeptical that an architectural services company can be transformed intoa simply by hiring two new people. A design-build contractor is a different animal, not simply an architect’s office with added construction management services.

Option 2: Architect with construction management expertise:

Cost: $53,840. -55

Management outsourcing: Includes training and literature:

Cost: Percentage of revenues. -56

4.1.2 Costs of re-organization;Decrease in productivity according to new organizational framework;

expected but not measurable.Cost: $? Not measurable.

4.1.3 Training57:

Necessary short training to be familiar with new organizational framework. Provided by new staff in option 1 or

by outsourcing company option 2Cost: $0

4.1.4 Costs to others in the supply chain:

Consultant and subcontractors training to be familiar with new organizational framework:

Cost: $600 per person two days training based.58

Total annual cost (option 1): $118,680

43 An intranet is a private network that uses TCP IP and a Local Area Network system to securely share part of a business's information or operations with employees. 44 An extranet is a private network that uses Internet protocols and the public telecommunication system to securely share part of a business's information or operations with suppliers, vendors, partners, customers, or other businesses. An extranet can be viewed as part of a company's intranet that is extended to users outside the company. The same benefits that Web technologies have brought to corporate intranets are now starting to accelerate business between businesses.45 Idem 4346 Idem 4447 Idem 548 Revit's parametric building modeler comprises intelligent building components, views, and annotations. All are both parametric and are associated bi-directionally through a high-performance change propagation engine. Revit encourages design changes anywhere, anytime by rippling any and all design modifications instantly and completely through the entire documentation set. Parametric building technology empowers architects to create designs in ways never before possible. And without any programming, you can create your own parametric components in the system by simply sketching them. Your components have all the power of the built-in Revit components.

4.2 Market expansion:

4.2.1 Capital investments,Option 1:

Architect with marketing expertise:Cost: $63,840. -59

Literature: Books acquisition and procedure manual preparation:Cost: $1000. -60

Option 2:

Marketing outsourcing: includes training and literature:Cost: Percentage of revenues. -61

4.2.2 Costs of re-organization,

No cost.

4.2.3 Training62: Necessary training to be familiar with new building types

specifications or markets specific requirements, provided by new staff in option 1 or by outsourcing company option 2

Cost: $0

4.2.4 Costs to others in the supply chain:Consultant and subcontractors training to be familiar with new

organizational framework:Cost: $600 per person two days training based.63

Total annual cost (option 1): $64,840. -

49Information taken from Building product models / Charles M. Eastman. Boca Raton, Fla. : CRC Press, c1999.

rsacks, 01/03/-1,
Note – the total is less than the sub-total in the footnote.

4.3 Project collaboration

4.3.1 Capital investments,

Option 1: Web manager with design and database management expertise:

Cost: $33,840. -64

Literature: Books acquisition and procedure manual preparation:

Cost: $1000. -65.

Option 2: Collaborative web outsourcing: includes training and literature:

Cost: $6000. -66

4.3.2 Costs of re-organization,No cost.

4.3.3 Training:

Necessary training to be familiar with Project collaboration, provided by new staff in option 1 or by outsourcing company option 2

Cost: $0.

4.3.4 Costs to others in the supply chain:Consultant and subcontractors necessary training to be familiar with

Project collaboration, provided by new staff in option 1 or by outsourcing company option 2

Cost: $0.

Total annual cost (option 2): $6000. -

4.4 Services expansion4.4.1 Capital investments,

Option 1 Pre design services: Architect with pre design services expertise:

Cost: $53,840. -67

Literature: Books acquisition and procedure manual preparation:

Cost: $1000. -68

Option 2 Web Design services: Graphic designer with web design expertise:

Cost: $33,840. -69

Literature: Books acquisition and procedure manual preparation:

Cost: $1000. -70

Option 2 Facility services: Facility manager with FM software expertise:

Cost: $43,840. -71

Literature: Books acquisition and procedure manual preparation:

Cost: $1000. -72

4.4.2 Costs of re-organization,No costs

4.4.3 Training:

No training Cost: $0.

4.4.4 Costs to others in the supply chain.

No costs

Total annual cost (option 1): $54,840. -

Total annual cost (option 2): $34,840. -Total annual cost (option 3): $44,840. -

Total annual: $134,520. -

4.5 3D parametric modeling:4.5.1 Capital investments,

Staff: Architect with 3D parametric modeling expertise:

Cost: $43,840. -73

Literature: Books acquisition and procedure manual preparation:

Cost: $1000. -74

Software: AutoDesk Revit 4.5 parametric building modeler—design and documentation software for architectsCost: $2,790 to $3,995.or $895 annual: $2685 75

4.5.2 Costs of re-organization:

Decrease in productivity according to new technology incorporation; expected but not measurable.

Cost: $? Not measurable.

4.5.3 Training:Staff training to be familiar with 3D parametric modeling:

Cost: $600 per person two days training basedTotal cost: $7,20076

4.5.4 Costs to others in the supply chain:

Software: AutoDesk Revit 4.5 parametric building modeler—design and documentation software for architectsCost: $2,790 to $3,995.or $895 annual-77.

Staff training to be familiar with 3D parametric modeling:Cost: $600 per person two days training based.78

Costs of re-organization:

Decrease in productivity according to new technology incorporation; expected but not measurable.

Cost: $? Not measurable.

Total annual cost: $54,725. -

(Fig 19 Table with strategies and costs)

STRATEGY Hardware Software New staff Outsourcing Literature Training CostProcess reengineer No No Yes No Yes Yes $118,680. -

Market expansion No No No Yes No No $64,840. -

Project collaboration No No No Yes No No $6,000. -

Services expansion No No Yes No Yes Yes $134,520. -

3D parametric modeling: No Yes No No Yes Yes $54,725. -

Total of annual investment in proposed plan (It + Ct): $378,765. -

Net present value: NPV=∑T

t=o (St-It-Ct) ($6,3M-$0.379M) NPV=$585.102. -(1+d)t (1+9,12)1

Benefit to Cost Ratio BCR=∑T

t=o St $6,3M (1+d)t (1+9,12)1 $622.530. BCR=16.6

∑Tt=1(It+Ct) ($0.379M) $37.427

(1+d)t (1+9,12)1

Internal Rate of returnIRR=(1+d)(BCR)1/t-1=(1+9.12%)(16.6)1/1-1=(10.12*16.6)-1=IRR=167

Values: t=Unit of time= One year/ T=Study period=One year/ Bt79=Income=$6.300.000. St=Savings=$0 or= Bt/ It+Ct80=$378,765.-/ d= Discount rate=9.12% annual.

rsacks, 01/03/-1,
This is very simplistic. Even if it is a guess, 12% is a relatively high proficvt margin for any kind of construction; it should be based on some estimate of the margins earned by contractors in construction itself, together with an estimate of the impact of having control over the design. In any case, quoting an exact number is open to question – it would be better to give a range of possible expected values. Keep in mind that contractors also assume levels of risk that architects do not.
rsacks, 01/03/-1,
As above.
rsacks, 01/03/-1,
The NPV calculation is intended for evaluation of a long term (i.e.many years) cash flow in terms of one present day lump sum. It is not applicable here for one year.

5. Analysis of the readiness of the Architectural services sector for implementation of the framework plan:As we can derived from financial analysis on previous chapter, proposed

technologies and processes improvement incorporation show enough economical

benefits to adopt the proposed strategies.The proposed plan assume some conditions that presently are not occurring, those

conditions and the existing ones are the key issues in the success of IT implementation in architectural services sector. According to recent surveys81,

architects have a positive opinion about the benefits that had received from 2D CAD incorporation in to design processes, and also they perceive the benefits that

3d intelligent modeling could produce in architectural practice. Similar positive opinions are noticed about the increase of market share and the expansion of work

scope. But still architect firms appear reluctant to make the changes. According to Nicholas Negroponte82, in relation to the potential relationship of technology

and design process, the problem that architect are reluctant to face is the change from the primary stage in which technologies just replace the existing ones by

imitation, “Computers as Electronic drafting tables”, to an evolution in practice processes. This evolution implies an expanded architect role change inside the

whole building construction process, architects face the unexpected opportunity to recover the role of “master builder” trough the incorporation of advanced

technology. This vantage point is enhanced by the low IT adoption in other sectors of the construction industry. Other prevailing factor in architect reluctance to

change is low capitalization according to high fragmentation in building construction sector and furthermore the sector extreme sensibility to economical

situation. In a global economy several factor could produce decrease in services demand or worse a recession. External phenomena are highly influent and have fast

impact on building construction processes; a good example of this is provided by a architects firm survey83 during 1974 and similar study performed in 1979 after the

1976 fiscal crisis. The relation in between the two surveys shows that one half of the original firms included in the first survey has been disappeared by 1979

survey. The architects defy is to take a significant role on the building construction process or to stay as one of the secondary actors inside it.

Nevertheless, some leveraging conditions are also fundamental in IT adoption at architectural services sector84. Construction sector exhibits a low IT integration,

and construction techniques presently in use do not demand digital data use. In fact those processes rely mostly on paper drawing use. Furthermore construction

processes rely on traditional techniques with high demand of workmanship and in a workforce with low training. Nevertheless some important advances towards

production automation has been developed in last years. Steel construction industry and lately precast concrete industry has developed IT incorporation in to

design and production processes, results from this initiatives should encourage a wider IT adoption in building construction process85.

In the other hand at architectural services sector; high computer integration in the internal business environment is noticed. Nevertheless limited computer

integration in the external business environment also is noticed; mostly integration is limited to the use of office automation technologies, extended use

of 2D cad and some integration of digital analysis tools. As we noticed in a previous chapter the biggest problems are the interoperability issues related with

the lack of exchange data format and the lack of integration between the different process inside the building construction process. Availability of Digital

knowledge-based models, to resolve the integration of different processes, and to provide an expanded automation not only of design process but also of production

process86 is one fundamental leverage condition.Automation in construction processes is a development in progress, meanwhile

architect should prepare himself for this enormous change in the construction industry. Digital knowledge based model adoption and extended process integration

to IFC data exchange format should prepare architects firm to face this new era in construction technology. Different financial and technology management options

should encourage architects to embark in this endeavor. From leasing option on hardware purchase through outsourcing of office management duties to software with

training included in rental option, architects should look in to the IT adoption with a new perspective. Architects already made the first step, and that one was

the most hard to made, now architects firms should look at IT technology adoption as a evolution in its practice. This evolution should reconfigure the architect

position inside the construction process.

6. A plan for the next incremental step the Architectural services industry: Surveys about the current and planned use of information technology (IT) and it impact on the architecture, engineering, and construction (AEC) industry in USA

and Canada87 show that many business processes are now almost completely computerized and tendency goes to a greater computerization of the remaining

processes. Even though the Internet and networking has been widely adopted, design data relies mostly on traditional format (drawings on paper). IT adoption has

raised productivity in most business processes and has resulted in an increase in the quality of documents, in the speed of work, better financial controls and

communications, and easy access to common data. The continual demand for upgrading and the application specific knowledge required are considered important obstacles

to IT adoption.

86 This also provided in Idem 40

Following is a detailed listing of the key technologies required to advance in the next step and the benefits to be achieved in the short term:

6.1 Adoption of design automation technologies:Design automation technologies require rich digital project data. Ubiquitous IT

in design process allows it use of this data from the early design stages, through all design stages IT provides the process with a continuous flow of information,

this flow increases design process efficiency, effectiveness and performance. At last, design automation technologies provide the necessary framework for future

developments in construction processes automation. Some technologies to look closer at are:

- Design conceptualization software: Digital information availability in early stages will facilitate the flow of it along the design process. With better design

conceptualization and more clear communication of design intent not only designers will be favored but also consultants, approvers and every actor involved in the

process. - Digital prototyping technologies:

Physical models are still fundamental in design processes, digital prototyping allows a real explosion in the use of models as design aid, allowing architects to

test prototypes of different scale design solutions, giving an important feedback to design decision making. Finally, digital prototyping techniques provide the basis of

future CAD/CAM technologies in building construction industry.- Adoption of 3D parametric modeling using IFC data model as base technology.Move from drafting to objects improve and expand design documentation process and provide the basics to future development of advanced applications, 3D parametric

modeling allows better visualization of design, using rendering and animation for client presentations and design studies. Parametric CAD provides the ability to

detect spatial interferences in mechanical systems or building designs before they emerge in actual building phase. Architect produce reports like bills of materials

or material schedules directly from the project model. Automatically update drawings because they are parametrically connected to the 3D model, reducing the chance of

errors in drawings through constant synchronization with project 3D model.

6.2 Computer integration in the internal business environment.- Data management: Architectural Design documentation capabilities have been enhanced by providing enormous data availability, this data should be used not only to improve the design process but also to develop financial, marketing, and

management strategies to keep architects firm successfully working.- Accounting and financial management software: An effective practice administration must have an equivalent effective accounting and financial software.

6.3 Computer integration of aspects of the external business environment- Cross Document and Interdisciplinary Coordination: Cross Document and Interdisciplinary Coordination has been enhanced facilitating the coordination of the entire construction document set.

- Project collaboration: The network of digital communications provided by IT allows the incorporation of

actors from the very beginning of the process until the end of the construction, maintaining a permanent information consistency checking along the process.

7. Major benefits as results of the proposed plan are:

- Increase in revenues: In the way that IT adoption reduces time in design process it lowers the production cost and subsequently increases the

revenues.

- Time savings: IT adoption reduces time needed to do a project, reducing also construction time. In general terms, we can affirm that IT adoption in

architecture firms reduce the time necessary to complete the building construction cycle.

- Decrease in errors and rework: This is a considerable factor in Construction industry that normally arises to 10% to 15% of construction cost.

- Increase information exchange: IT increase not only the amount of information able to be shared but also the speed of data exchange, in this way increases

the speed of the design process and also the consistency of information avoiding the rework produced by inconsistency in between data provided from

several actors but referred to the same object.

- Increase the quality of the product: 3D modeling abilities to coverage of object properties allows to a very accurate description of it and

subsequently a better construction of it at the same time this information id easy to share and through its enrichment from feedback provided by different

actor its conveys in to a elaboration process of superior condition in relation to the quality of the information available.

- Increase collaboration: Improve the idea of teamwork and integration between actors, which develop a highly collaborative network not only along the process but also across it.

- Increase client satisfaction: A faster and better informed design process increase client satisfaction, at the same time the satisfaction of clients specific needs improve the client-architect relation increasing the

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opportunities of new works from the same client. The client is best informed and best served according to his or her specific needs. A higher percentage

of client repeat will be expected.

Appendix 1Data from 1997 USA census Value of construction work

Construction USA U$845 543 552 000 1.1.Building, developing, & general contracting U$381 641 600 000

1.2.Special trade contractors (Sub-Contractors) U$336 060 352 0001.3.Heavy construction U$127 841 600 000

Value of construction workConstruction GA U$28 171 342 000

1.1.Building, developing, & general contracting U$15 234 889 000 1.2.Special trade contractors (Sub-Contractors) U$3 298 023 000

1.3.Heavy construction U$9 638 430 000

1. Architectural, engineering&related services USA......U$116 986 061 000 100% 1.1 Engineering services..........................U$ 74 565 673 000 63.7%

1.2 Architectural services, except landscape.....U$ 14 528 876 000 12.4% 1.3 Interior design services......................U$628 270 000 0.5%

1.4 Urban or city planning services...............U$306 065 000 0.3% 1.5 Industrial design services ..................U$100 753 000 0.1%

1.6 Landscape architectural services..............U$ 223 726 000 0.2% 1.2 Architectural services, except landscape USA......U$ 14 528 876 12.4%

1.2.1 Architectural design services for public and institutional projects...........U$ 5 003 100 4.3%

1.2.2 Architectural design services for commercial projects........................U$ 4 703 691 4.0%

1.2.3 Architectural design services for residential projects.......................U$ 1 551 852 1.3 %

1.2 .4Architectural advisory and predesign services............................... U$ 1 500 756 1.3 %

1.2 .5Architectural design services for other architectural design projects........ U$ 906 404 0.8 %

1.2.6 Architectural design services for industrial projects....................... U$ 863 072 0.7%

1.3 Architectural,engineering &related services GA ..U$ 2 793 426

1.3.1 Engineering services.......................U$ 2 041 713 1.3 .2Architectural services ..................U$ 506 929

1.3.3 Testing laboratories..................... U$ 114 532

1.3.4 Surveying & mapping services........ U$ 102 4511.3.5 Drafting services ...................... U$ 15 375

1.3.6 Building inspection services ............U$ 10 973 1.3 .7Geophysical surveying & mapping services .U$ 1 453

Appendix 2:

Data from Cad for principals Organization. The study found widespread dissatisfaction among principals with the use of CAD tools at their firms.

Principals were less likely than others in their firms to use technology and many felt that their CAD tools did not contribute to the primary goals of the firm –

delivering high quality designs and responding quickly and effectively to client needs. http://www.cadforprincipals.org/

1) Firm Size

2) Services offered

3) Project Types Representing More Than 10% of Work

4) Management Issues

5) CAD Impact Evaluation

6) Where’s the Pain with Current CAD Products?

7) Software Evaluation Report Summary Results

8) Application Importance or Applications Used: CAD Products.

9) Application Importance or Applications Used: Paint, Imaging, and Publishing

Products.

10) Application Importance or Applications Used: Cost Estimating Products.

Appendix 3:Data from Personal Interview.Firm’s name: Lord Aeck SargentCity: Atlanta State: GeorgiaMultioffice: Yes National: Yes International: NOStaff members: 90Number of principals: 10Number of associated:0Number of support staff: 80It Staff: 3Pc/Mac: PcNumber of computers: 110Printers networked: 10Plotters: 2 one color and one large format laserYear originated: 1942Technology Infrastructure:Web site: Yes (outsourcing)Network: 100mb and 10/100T Cat.5Operating systems

- Client/Server; Windows 2000 professional- Cluster: No- Workstations: 30

Servers- File: 3- Mail: 1- Web: 1

Type of database: - Client: Yes/Web access- Project: Yes/Web access- Employee: Yes/Web access

Software:- Database software: Access- CAD software: MicroStation- Modeling software: FormZ and MicroStation Triforma - Rendering software: FormZ and MicroStation Triforma- Accounting software: Axiom

Training- Marketing trainer provided for technical stuff: Yes

- Computer trainer provided for technical stuff: YesBusiness:

- Number of principals involved in business development: 10- Percentage of time in business development: 30% to 60%- Overseas market: No- Percentage of revenues from overseas markets: 0- Percentage of repeat client: 80%

Additional services: Pre design/ Programming/ Commissioning/Inspecting/Government certification in environmental issuesOrganization by:

- Studio: Yes- Project type: Historic preservation/Education/Science- Principal: Yes

- Case by case

Questionnaire:

1) How is the flow of written and graphic information controlled and decision making documented from initial design sketches to construction drawings and as

built plans? Using digital technologies like E-mail, scan, Document Camera, Videoconference

2) How is the information organized, indexed and filed for future retrieval?Each project received a number once the financial manager authorize it and a

digital an physical archive are open, both are equal in contents but the physical is the official.

3) What type of information is most commonly retrieved and why?At design stage are construction details and pictures file at marketing proposal

assembly stage. There is not a standard detail library.4) How are marketing proposal assembled?

In project archives as Page maker format and later in databases as pdf format.5) How are old proposals stored for future reference?

In project archives as Page maker format and later in databases as pdf format.6) How are owner/architect and architect/consultant contract written, retrieved,

edited and signed?Using AIA electronic document software, which is buggy but useful. Specific

contractual issues are managing using the same software creating templates inside it.

7) How is their status Tracked?Simple database search.

8) How are fee budget developed and revised during the course of a project?

There are in house financial and accounting consultants that define budget and constantly tracked project cost, cash flow managed and revenues projected. Monthly

spreadsheet report with key financial indicators is reported.

9) How are project cost (labor, consultant fees, and direct and reimbursable expenses) monitored and compared to the project budget?

There are in house financial and accounting consultants that define budget and constantly tracked project cost.

10) What information do the project manager require and when?Project manager usually with one of the principal and financial consultant

define fees project budget and set a schedule for control meeting. Monthly spreadsheet report with key financial indicators is reported.

11) How are insurance requirements for consultants monitored? Legal consultant outsourcing, insurance representative and one principal.

12) How are photographic material digitized, stored and made accessible?

Image archive database with web access trough asp (Outsourcing development).Each image has 3 sizes and two back up one physical CD and digital hard drive.

13) How do project teams communicate with consultants and keep them informed about new issues that affect their work?

- By phone, fax and e-mail or using intranet trough web site to track project

development.

- Net meeting or videoconference room.

- Unified Voice, fax and email using PDA’s.14) How digital information is shared with consultants and how often is shared?

Mostly digital and tracked trough document database. (Outsourcing development).15) How are the contractor’s shop drawings, request for information, product data,

samples, and changes orders logged and tracked during construction?Logged and tracked trough document database, which also emits site inspection,

reports, the database has two main section Submittal track and potential changes. (Outsourcing development).

16) How is the digital data delivered to the client?During the project data from project web site and at the end of the project a

complete set with the final project delivered.

17) How does the firm prepare it to support client specific organizational requirements?

Including those requirements in contract and specific issues like Autocad specific formatting are resolved externally as outsourcing drafting company.

18) How are postocupancy evaluation conducted?

Yes but not often, a human resources outsourcing company recently developed an approval mailing form.

19) How are the results communicated to the project team and the rest of the firm? Not yet

20) How are project archives organized, store, and retrieved?Each project has two version one physical in a storage outsourcing company and 4

digital 2 cd and 2 tapes. In addition to digital files in file server accessible trough project database.

21) In which part of the process are archives created?When financial personnel gives a project number

22) Does the firm work with same consultants for every project?Yes

23) Which are the most common error during design developmentMechanical project HVAC plans inconsistency. To avoid design error they

hired a ready check process from an outsourcing company.

Appendix 4:AutoDesk® RevitRevit is the first parametric building modeler. Revit parametric building modeler comprises intelligent building components, views, and annotations. All are both

parametric and are associated bi-directionally through a high-performance change propagation engine. Revit encourages design changes anywhere, anytime by rippling

any and all design modifications instantly and completely through the entire documentation set.

Parametric building technology empowers architects to create designs in ways never

before possible. Revit lets architects speak the language of design while it takes care of all the CAD chores. Revit integrated building model is the foundation on

which the entire industry -- architects, engineers, owner/operators, and construction professionals -- will transform the process by which buildings are

designed, constructed, and operated over their lifecycle. Revit parametric building technology is a pivot point in the history of computers and buildings. Revit has

revolutionized building design.

How does parametric building modeling change my work?

Think of the parametric building modeler in Revit working for you on multiple levels

to ease the task of designing buildings while at the same time improving the quality of those designs.

For example, a parametric wall understands its relationship to other building components. The wall might have a fixed height, or it might extend up to the next

story, or it might be attached to the roof. This design intent is captured in the component. But you might need to change the pitch of the roof above the wall. That

change will instantly modify the geometry of the wall -- without any explicit action required by the user. This, in turn, will "revit" (or revise instantly) all plans,

elevations, sections, schedules, dimensions and other elements.

Now consider how Revit's revolutionary bi-directional associativity allows you to work in new ways. In Revit, you can drag a wall which changes its dimension. But

more importantly, you can quickly sketch a rough layout of your walls and then simply type the dimension values to refine your design. Changes ripple in all

appropriate directions when you change a parametric design element in Revit.

References: