Technology, Data Capture, andthe Role of the Mechanical Contractor

Nathan WoodFounder, SpectrumAEC

nathan@spectrumaec.com@NathanCWood650.454.5334

NathanCWood.com

Nathan Wood has emerged as a thought leader for innovation across the Architecture, Engineering, and Construction (AEC) industry. As SpectrumAEC’s founder and chief enabling officer, he leverages his international experience with BIM, Lean, and Integrated Project Delivery (IPD) to develop strategic implementation plans that balance the needs of people, process, and technology. He has a unique ability to identify the root causes preventing new technology implementation, and works alongside project stakeholders and technical leads to align the team around clear goals with shared incentives.

Outside of SpectrumAEC, Nathan continues to support industry progress through conference presentations, academic papers, and as a leader in the Construction PDF Coalition (www.cpcoalition.com).

linkedin.com/in/nathanaec

BIMBuilding Information

Modeling

VDCVirtual Design &

Construction

LEANAGC CM-Lean

Instructor

IPDIntegrated Project

Delivery

Nathan C. Wood Innovation Evangelist | Adoption Strategist

Construction is NOT a ‘Digital’ Industry

http://www.mckinsey.com/industries/capital-projects-and-infrastructure/our-insights/imagining-constructions-digital-future

3

CDP 2016The digital future of constructionExhibit 2 of 9

Labor productivity, gross value added per hour worked, constant prices,1 index: 100 = 1995

Construction labor productivity has not kept pace with overall economic productivity.

1 Based on 2010 prices.

Source: Organisation for Economic Co-operation and Development

120

100

110

130

02007 2001 1997 2011 2013 2012 1995 2009 1999 2003 2014 1998 2002 2010 2004 2000 1996 2008 2006 2005

Total economy

Construction

Germany

Germany

United Kingdom

United Kingdom

Exhibit 2

CDP 2016The digital future of constructionExhibit 3 of 9

McKinsey Global Institute industry digitization index; 2015 or latest available data

The construction industry is among the least digitized.

Assets Usage Labor

Sector

ICT2

Media Professional services Finance and insurance Wholesale trade Advanced manufacturing Oil and gas Utilities Chemicals and pharmaceuticals Basic goods manufacturing Mining Real estate Transportation and warehousing Education Retail trade Entertainment and recreation Personal and local services Government Healthcare Hospitality Construction Agriculture and hunting

1Based on a set of metrics to assess digitization of assets (8 metrics), usage (11 metrics), and labor (8 metrics).2Information and communications technology.

Source: AppBrain; Bluewolf; Computer Economics; eMarketer; Gartner; IDC Research; LiveChat; US Bureau of Economic Analysis; US Bureau of Labor Statistics; US Census Bureau; McKinsey Global Institute analysis

Overall

digitization 1

Digital spending

on workers

Digital capital

deepening

Digitization

of work

Interactions

Business

processes

Market m

aking

Digital

spending

Digital

asset stock

Transactions

Relatively lowdigitization

Relatively highdigitization

Digital leaders within relatively undigitized sectors

Exhibit 3

3

CDP 2016The digital future of constructionExhibit 2 of 9

Labor productivity, gross value added per hour worked, constant prices,1 index: 100 = 1995

Construction labor productivity has not kept pace with overall economic productivity.

1 Based on 2010 prices.

Source: Organisation for Economic Co-operation and Development

120

100

110

130

02007 2001 1997 2011 2013 2012 1995 2009 1999 2003 2014 1998 2002 2010 2004 2000 1996 2008 2006 2005

Total economy

Construction

Germany

Germany

United Kingdom

United Kingdom

Exhibit 2

CDP 2016The digital future of constructionExhibit 3 of 9

McKinsey Global Institute industry digitization index; 2015 or latest available data

The construction industry is among the least digitized.

Assets Usage Labor

Sector

ICT2

Media Professional services Finance and insurance Wholesale trade Advanced manufacturing Oil and gas Utilities Chemicals and pharmaceuticals Basic goods manufacturing Mining Real estate Transportation and warehousing Education Retail trade Entertainment and recreation Personal and local services Government Healthcare Hospitality Construction Agriculture and hunting

1Based on a set of metrics to assess digitization of assets (8 metrics), usage (11 metrics), and labor (8 metrics).2Information and communications technology.

Source: AppBrain; Bluewolf; Computer Economics; eMarketer; Gartner; IDC Research; LiveChat; US Bureau of Economic Analysis; US Bureau of Labor Statistics; US Census Bureau; McKinsey Global Institute analysis

Overall

digitization 1

Digital spending

on workers

Digital capital

deepening

Digitization

of work

Interactions

Business

processes

Market m

aking

Digital

spending

Digital

asset stock

Transactions

Relatively lowdigitization

Relatively highdigitization

Digital leaders within relatively undigitized sectors

Exhibit 3

0 1 2 3 4 5 6 7

Construction

Energy

Manufacturing

Transportation

Healthcare

Education

Finance

IT Spending as a % of Revenue, By Industry [Gartner 2014]

It Requires more Technology Investment People

ProcessTechnology

3.3%Cross-Industry

Average3.3xInvestment Gap

It Requires a Process Disruption People

ProcessTechnology

It Requires an Incentive to Collaborate

“Virtually everyone in the construction supply chain works on contracts where the incentive is to maximize their gain at the expense of others”

Just follow the money…

People

ProcessTechnology

John Macomber, ASCE Report, 2003“Follow the Money: What Really Drives Technology Innovation in Construction”

www.bestppt.com

FlawedPerformance Management

Limited

Talent

Management

Inadequate Communication Poor Organization

Contractual Misunderstandings

Poor Short Term Planning

Insufficient Risk Management

Missed Connections

2016 World Economic Forum Report

www.bestppt.com

WHATHOW

WHY

www.bestppt.com

MY ADOPTION JOURNEYThe People. The Process. The Technology

@nathancwood@SpectrumAEC

Boulder,CO

Austin,TX

SanFrancisco,CA

FallsChurch,VA

The Journey to DPR Construction & BIM

SUTTERCASTROVALLEY

WHY: Sutter Health + OSHPD State RequirementsSeismicFaultLinesSanFranciscoBay,CA

Christian,D.,Bredbury,J.,Emdanat,S.,Haase,F.,Kunz,A.,Rubel,Z.andBallard,G.(2014).“Four-phaseprojectdeliveryandthepathwaytoperfection.”In:Proc.22ndAnn.Conf.oftheInt’lGroupforLeanConstruction,IGLC-22,Oslo,Norway,June25- 27. Availableat<www.iglc.net>

WHAT: Integrated Design to Construction

30%ReductioninSchedule

NoRework(MEP)

As-BuiltModel

IncreaseFieldCrewProduction

HOW: BIM + Lean + Integrated Project Delivery

3DDetailingandCoordinationinTekla

ShopDrawingGenerationisDirectOutputfromTeklaModel

Benefit: Direct 3D to 2D Field Drawings

TheFirstDiscovery:Rebarvs.PrecastSleeve• 200+FacadepenetrationsorembedwerecoordinatedwithrebarandMEP.• Precastsubcontractordidnotoriginallyaccountforrebarspacingduringdesign.• Over25%ofConnectiondesignswerechangedduetoBIMCoordination

Risk: Precast Façade Connections

BIM=BetterProductivity&QualityBenefit: Quality Control + Increased Productivity

DPRConcretereported10%ProductivityIncreasefromBIMshopdrawingsprocess.

2D Detail Constructability Review

BIM + Lean: Last Responsible Moment

• OPTION#2:RoofSloperedesigned4weekspriortoroofconcretepour• Required3newdrainstobecoordinatedwithexistingMEPBIM

TRUST:CONSTRUCTABILITYINPUTHOW? Shared Risk & Reward with MEP Trades• Routed3additionaldrainstoanearbyriserinBIM• Newdrainagecalculationoftheredesignedsloping• ConfirmedLEEDrequirementsofroofstillheld• Pouredconcreteroofslabonschedule

TRUST:TRADESINSTALLFROMBIMAutomated Spool Fabrication from BIM

CourtesyofMcClanahanPlumbing

SYNERGY:BIM +TOTALSTATIONIntegrated Total Station Layout

UseofRoboticTotalStation(RTS)inConjunctionwithCoordinatedMEPInsertsinBIM

4XProductivityComparedtoConventionalLayoutCourtesyofMcClanahanPlumbing

DrywallSpoolSheetsDirectfromCoordinatedBIM

TRUST:IMPROVEDFRAMINGPROCESSDrywall Framing Productivity & Rework

Credit:DPRDrywall

50-95%Reduction in Rework

Benefits: Installation Metrics (Castro Valley)

0%

5%

10%

Mech PlumbElectrical Drywall

Rework(%)ByTrade

Baseline

Actual

5-28%Increase in Productivity

0%

10%

20%

30%

Mech PlumbElectrical

Drywall

ProductivityIncrease%ByTrade

Planned

Actual

SUTTERCASTROVALLEY

SUTTERALTABATES

Fall 2010: Transferring Lessons to Alta Bates

VisualPourPlanning

Benefit: Concrete Planning & Layout

EnhancedConcreteLiftDrawings

TotalStationLayoutIntegration

ProjectChallengesRisk: BIM vs. Field Reliability

?=?

New Project, New Risks: Sutter Alta Bates

ComplexProjectSite

Unforseen Conditions

SeismicExpansionJointConnections

CourtesyofTrimbleNavigationltd.

Benefit: Modeling of Unforseen Conditions

Risk: Civil/Structural Design Coordination

Innovation: Overlay of Revit Structure & Civil 3D

Countermeasure: Define Rebar Design in BIM

Pull 2D Detail from BIM for OSHPD Drawing

Integrate x,y,z Total Station Layout from BIM

=

Success Metric: Early Schedule Savings

Concrete Foundations

31 DaysOf Critical Path Schedule

Recovered over 10 Months

33% Time Savings Per Submittal Review

A Tale of Two Projects: IPD Lessons Learned

Castro Valley Delivered

6 WeeksAhead of Schedule

MaintainedTarget Cost

Alta Bates Delivered

6 MonthsBehind Schedule

20 Million Over Target Cost

BIM?IPD? LEAN?

The Castro Valley Difference: Culture

Teammemberschorus:Don’ttrythiswithstrangers.Expectlengthycontractnegotiationsandendlessmeetings.

Bevigilantaboutcommunicating.

“Theactualeffortrequiredwasunderestimatedonboththedesignandconstructionsides,”saysJamesMobley,aDevenney principal.

Mistakes are Part of Innovation. Who’s to Blame?

Contract Changes also Need Culture Changes

The Digital Adoption Tipping Point Starts with….

www.bestppt.com

WHAT

WHY

2016 World Economic Forum: The ‘What’

The Potential of Big Data: Predix by GE

The Reality of Big Data

IFTHEN

The Truth About Trusting Bad Data

Barriers to Adoption of Integrated Data

https://www.weforum.org/reports/shaping-the-future-of-construction-a-breakthrough-in-mindset-and-technology

Impact-Likelihood Matrix of Construction Tech

Practical

Possible

Virtual Reality vs. Augmented Reality

http://futurism.com/images/vr-ar-and-mr-whats-the-difference-infographic-2/

‘Proof of Concept’ Video (Trimble & Hololens)

https://www.youtube.com/watch?v=kXVW4sUsh3A

http://strxur.com/no-plans-no-problem-building-ar/

StrXur.com – Framing Layout with Hololens

Nerding Out: Hololens Location Accuracy

Pop Quiz: VR or AR?

http://www.bimanywhere.com/

Drones

Practical

Possible

www.bestppt.com© 2011 DPR Construction All Rights Reserved

Advanced Project Planning Tools

Practical

Possible

BIM + CPM Schedule IntegrationBIM + CPM Schedule Integration (4D Visualization)

OVERALLBIMBENEFITS– DEPENDSFully Integrated 5D (Cost & Time) Planning

The Lean Last Planner System (LPS) ®

Advanced Design Planning Tools

http://software.adeptmanagement.org/index.htmlhttp://www.myvplanner.com/

Prefabricated Building Components

Practical

Possible

Single Trade Modular Prefabrication

Credit:SuperiorAirHandlingCompany

Multi-Trade Prefabrication: www.bloxbuilt.com

Real-time Mobile Collaboration

Practical

Possible

TheProcess

2DShopDrawings

ShopDrawingReview

FabricateRebar

InstallRebar

3DModel

Lean Innovation: Cloud Rebar Submittal Reviews

Cloud Comment Responses = No Resubmittal

DataCentric

IntegrationBringsEfficiency&Reliability

DrawingCentric

TaskCentric

BIMCentric

TimeCentric

MediaCentric

Integrated Data Requires Integrated Platforms

APIIntegrationsDatabaseStandards

Elements of a Cooperative PartnershipFigure 11: Elements of a Cooperative Partnership61

Collaborative decision-making and control1

Third-party mediation and conciliation

Decision by adjudicator or arbitrator

Internal dispute resolution via negotiation

Conflict resolution

Premium for early project delivery

Incentives for cost optimization

Alternative cost models, such as target cost

Shared risk/reward (“pain share, gain share”)

Incentive mechanisms

Project charter with common project goals

Transparent financials (“open books”)

Co-location of teams (“big rooms”)

Common data platform (e.g. BIM)

Project culture

Choosing most efficient, not cheapest

Early involve- ment of key participants

Multi-party con-tract with clear accountabilities

Tendering and contract

Prudent manage-ment and appropri-ate allocation of risk

1 Potentially including liability waivers among participantsSource: World Economic Forum; The Boston Consulting Group

2016 World Economic Forum Report

Practical

Possible

Material Asset Tracking (RFID, Barcode, Bluetooth)

Manpower / Safety Tracking of Workforce

Discussion: Tracking “Assets” in the Field

WorkforceTracking:IsValueofSafety/ProductivityData>FearofBigBrother?Material/EquipmentTracking:WhatistheLikelihoodofPoor/MissingDataCapture?

3D Laser Scanning

Practical

Possible

RoboticTotalStation

Betterformodelvs.fieldcomparisonoflargeareas/entiresite

Countermeasure: Digital As-Builting

Betterforspecificpoints(endofwall,bottomofdoorthreshold,etc)

LaserScanning

Update Virtual to Match Physical

Confirm Late Design Changes are Coordinated

www.bestppt.com

360 Photos + Immersive Navigation

2016 World Economic Forum Report

Practical

Possible

www.bestppt.com

“A digital representation of physical and functional characteristics of a facility. A BIM is a

shared knowledge resource for information about a facility forming a reliable basis for

decisions during its life-cycle; defined as existing from earliest conception to demolition.”

National BIM Standard v1, 2007

Use Data Throughout the Lifecycle

Project Data Handover: Theory vs Reality

3DModel 2DDrawings

Desig

nFabrica

tion

87

Challenge: BIM Handoffs in the Real World

• Doesthis…..

• Equalthis?

DesignModel

FabricationModel

88

Risk: Loss of Reliable BIM for Coordination

Bringing Back Reliability: Laser Scan + GenMEP

3DModel 2DDrawings

Desig

ner

Detailer

90

Risk: New Process, Old Contract?

HandoverData

DesignInput

CoordinationInput

As-BuiltInput

CustomerInput

ProjectD

ata

Assumptions&Miscommunication

ContractRiskManagement

UnreliableData

Programing Design Coordination OperationsConstruction

91

Where Does the Data get Lost?

TOOL

SHIFTINGTHEINDUSTRYPARADIGM

PEOPLE PROCESS

BIMisjustaTool1

ThisTool isonlyasgoodasthePeople usingIt

2

ThePeople canonlybeaseffectiveastheProcess allowsthemtobe

3

The Role of BIM in Design & Construction

www.bestppt.com

WHATHOW

WHY

A Framework to Initiate Change

www.bestppt.com

Ideal State

Current State

Disruptive Innovation Requires Balance

Digital Standards

Aligned Incentives

Lean Integrations

How Do We Bridge the Gap? Industry Level

TheBusinessValueofBIMtoOwners

http://i2sl.org/elibrary/documents/Business_Value_of_BIM_for_Owners_SMR_(2014).pdf

What BIM Data Means to Owners

OwnersImpactonBIMStandards

http://i2sl.org/elibrary/documents/Business_Value_of_BIM_for_Owners_SMR_(2014).pdf

The Impact on Standards Adoption

W.I.I.F.M.What’sInItForMe?

Discussion #1: Why Go Digital At All?

Who’s Pushing the Adoption of BIM?

Who has the Most to Gain from Integrated BIM?

“It’smorelikely…thatnewfirmswithnewbusinessmodelsandnewareasoffocuswillleveragethefinancialandtechnologicalinnovationsthatwillchangethenatureofcompetition”

-ClaytonChristensen,1997

“Innovationisdrivenbytechnologiesthatenabletheriseofdisruptivebusinessmodels”

-BowerandChristensen,2000

Disrupt….or be Disrupted!

Mechanical Firms are Leading the Way!

http://www.builtworlds.com/news/2016/6/13/mechanical-contractors-urged-to-seize-disruptive-opportunities

End Users

Return on Investment

Implementation Certainty

Easy to Integrate

Maintain Budget

Executives

Managers

Easy to Use

Save Time

There is also an Internal Battle to be Addressed

How Do We Bridge the Gap? Company Level

Time

Value

CurrentState

DesiredState

ROIPoten

tial

TimetoAdopt

TimetoAdopt/Fail

LostROI

70% Source:JohnKotterInternational

Adoption Starts by Managing Expectations

Assess Align Advance

Adoption of Requires Early Input

Time

Value

CurrentState

IdealState

30%TimetoAdopt

ROIPoten

tial

TimetoAdopt/Fail

LostROI

70% Source:JohnKotterInternational

SharedDefinitionKeyPerformance

Indicators

A3 Workshops Provide Early Input

Homework: Produce Your Own A3 Report

lost/stolentoolsandmaterialsonjobsitesresultin$30-40kinlostrevenueeveryyear

-Paperbasedcheck-in/check-outprocess-Manualentryintodatabase-Noawarenessofcurrentlocationofasset-Noaccountability

-Establishorganizationandaccountabilityduringassetrequestandpointoftransaction-BreakEvenROIwithin12-18months

-Currentprocessisbroken-Noincentivetorecorddata-ProjectManagersareencouragingbadbehavoir

- Incentivizetransparencyoverdeception- Mobileappmustbe‘easier’thanpreviousprocess(directuserfeedback)

- Workwithtechnologypartnerstobuildproofofconceptandtestwithusers- Iteratedevelopmentuntilenduserisconfidentinnewprocess- Scaleadoptionandmeasuretheresults

- Compareadoptionmetricsandkeyperformanceindicatorsagainstbaseline

- Studyhighandlowperformanceteamstoidentifylessonslearnedandshare

www.bestppt.com

@nathancwood@SpectrumAEC