ipads® and bim in construction: what is the roi? -...

© 2011 Autodesk

iPads® and BIM in Construction: What Isthe ROI? – A Case Study

Will Senner, Assistant Project Manager, Skanska USA BuildingJosh Kanner, Cofounder, VP Marketing & BD, Vela Systems

© 2011 Autodesk

Agenda

Introduction (Josh – 5 min.)

Case Study and ROI framework (Will – 35 min.)

What’s Next? Field BIM – Interactive (Josh – 5 min.)

Q+A (both – 15 min.)

© 2011 Autodesk

Class Summary

Results of iPads, BIM, and field software on the Hunt Libraryproject, Raleigh, NC.

Focus is on quality assurance, commissioning of systemsand equipment, punch listing, and material tracking of curtainwall.

An ROI framework developed as a part of graduate-levelresearch at North Carolina State University will also bepresented.

© 2011 Autodesk

Learning Objectives

At the end of this class, you will be able to:

Understand specific applications of BIM, iPads and field managementsoftware for potential use on your projects

Leverage an ROI framework for translating both soft and hard benefits oftechnology into dollar terms

Avoid common stumbling blocks when implementing technologies ofthese types on a project

NC State Centennial Campus

Technology Overview− BIM in Estimating & Preconstruction

− Visualization & Smart Boards

− Logistics Planning & 4D Scheduling

− Field Mobility & Mobile Electronic Resource Stations

− Material Tracking

− MEP Coordination & As-Built BIM Handover

ROI / Cost-Benefit Research− Research Methodology/Approach

− Direct & Indirect Costs

− Benefits

− Efficiency Gains & Rework Reductions

− ROI Calculations

Estimating & Preconstruction

Quantification using BIM

Visualization & Smart Boards

Uses:

• Constructability review during designphases producing electronic reviewcomments

• Shop drawing review and teamcoordination meetings

Benefits:

• Improved understanding of difficultproject conditions

• Increased ability to convey design intentto subcontractors

• Ability to engage and collaborate withremotely located team members

Vela Systems Overview

Quality Control & Safety – Field Mobility

Quality Control –Mobile Electronic Resource Stations

Exterior Envelope

Material Tracking for Unitized Curtainwall

0

5

10

15

20

25

30

35

40

45

50

16-Feb 26-Feb 8-Mar 18-Mar 28-Mar 7-Apr 17-Apr 27-Apr 7-May 17-May 27-May

Nu

mb

er

of

Un

its

Fabrication and Installation Production

Fabrication

Installation

Material Tracking for Unitized Curtainwall

Quality Control –Verification of Door Frame Installation

MEP Systems & Technology Strategies

MEP Systems

Innovation Grant Research Project:ROI of Innovation

Identify KeyFeatures ofTechnology

Implementation

Quantify Benefits& Evaluate ROI

DevelopRecommendations for

FutureImplementations

− Abstract: Innovative Technologies increase the effectiveness of operations & field personnel.

Research Assumptions

Assumptions

• Construction Manager at Risk delivery model

• 100% of project “savings” (General Conditions,Contingency, etc) returned to the owner at the endof the project

• 2 year schedule, $100M overall project cost

• No self-perform work by the CM

• Limited sample size due to “emerging” technologies

Research Framework

Calculate Return on Investment

“Owner” ROI “Project” ROI

Translate Benefits to Real Dollars

Determine Typical Rework CostsRework Avoided by Increasing Efficiency of CM

Staff

Determine Benefits

Observe Changes in Durations of Weekly Activities Use data to determine efficiency gains

Determine Total Implementation Costs

Direct Costs Indirect Costs

Direct Costs Summary –Field Mobility & Related Infrastructure

SINGLE PURCHASE(CAN BE REUSED)

AVOIDABLE COST(TRIAL AND ERROR)

RECURRING PURCHASE(PER PROJECT)

TOTALMARKET COST

(RETAIL)

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

SinglePurchase:

63.5%

AvoidableCost: 2.5%

RecurringPurchase:

34.0%

Breakdown of Costs

Indirect Costs

− 16 hour initial set up: uploading of electronic documents, development of location hierarchy, templates, etc

0

2

4

6

8

10

12

14

16

UPLOADING CONTRACT

DOCUMENTS/PLANS

ELECTRONIC MARK-UPS TRAINING

Ho

urs

Pe

rW

ee

k

Weekly Implementation Costs

Benefits

How are wereally usingthe tools?

What’schanged from

before?

What value arewe really

adding to theproject/owner?

To otherparties?

How do wetranslate that“value” to real

dollars?

Benefits - Step 1:

How are we operating nowand actually using thesetools day to day?

Distribution of Weekly Management Time

ManagementSector

ColorDesignation

Reaction

Assessment

Planning

Administration

ActivityAvg. DurationPrevious (Hrs.)

Avg. DurationNew (Hrs.)

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

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

Monitor productivity of installation/construction-Reaction 2.00 1.60

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

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

Document/Photograph unresolved issues and their location 2.00 1.10

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

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

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

Monitor productivity of installation/construction-Assessment 3.20 2.80

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

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

Go to field to verify progress and quality 4.20 4.40

Assess productivity of past week/month 2.20 1.40

Walking with Owner/Commissioning Agent 2.75 2.50

CM Team Meeting 1.60 1.60

OAC Meeting 1.60 1.60

Review Plans/Specs/Shop Drawings/Submittals 5.60 5.60

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

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

Determine what productivity for following week must be to stay on schedule 1.60 1.60Email/Phone other trades about coordination issues/construction sequence-Planning 1.60 1.60

Plan for next week's construction/installation 2.80 4.00

Pay Apps 1.80 1.80

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

Total Weekly Hours: 62.03 54.53

Benefits - Step 2:

What’s changed from theold way?

Efficiency Gains

− 62 hrs/wk to 54.5 hrs/wk on average

− 16.7% of time savings is returned to the project resulting in an increase in value-added planning

Reaction:18.80 Hrs.

(30%)

Assessment:19.55 Hrs.

(32%)

Planning:19.38 Hrs.

(31%)

Admin.:4.30 Hrs. (7%)

Previous

Reaction:15.00 Hrs.

(27%)

Assessment:16.10 Hrs.

(30%)

Planning:20.63 Hrs.

(38%)

Admin.: 2.80Hrs. (5%)

New

Efficiency Gains

− Equivalent to an additional 5.6%-11.3% of additional field supervision (50hrs/wk) [Avg.= 8.5%] excluding punch list operations

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

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

Metric: Previous (Baseline) New

“Earned” Hours * 38.93 40.43

Actual Hours 38.93 36.23

Efficiency 1.000 1.116

Metric: Time Savings

Increase in “Value Added” Planning 1.5 hours/week

Travel Efficiency 1.33 - 4.17 hours/week

Punch list Efficiency 2.0 hours/day during punch list operations

Benefits - Step 3:

What part(s) of this changereally result in added valueto the project/owner?To other parties?

Root Causes of Rework

HumanResourceCapability

UnclearInstructions to

Workers

InadequateSupervision &Job Planning

ExcessiveOvertime

Insufficient SkillLevels

Engineering &Reviews

Late DesignChanges

Poor DocumentControl

Scope Changes

Errors andOmissions

Leadership AndCommunications

IneffectiveManagement ofProject Team

Lack ofOperations (EndUser) Persons

Buy-in

Lack of Safetyand QA/QCcommitment

PoorCommunications

ConstructionPlanning &Scheduling

ConstructabilityProblems

Late DesignerInput

UnrealisticSchedules

InsufficientTurnover &

CommissioningResourcing

Material &Equipment

Supply

UntimelyDeliveries

Prefab. & Constr.Not to Project

Req.

Non-compliancewith

Specification

Materials not inRight Place

when Needed

Breakdown of Rework Causes

*(COAA study of over 100 constr. Projects)

Engineering &Reviews55.41%

HumanResourceCapability

18.28%

Material &Equipment

Supply 23.46%

Leadership &Communication

0.38%

Const. Planning& Scheduling

2.47%

Construction Owners Association of Alberta

DocumentControl

40%

Quality &Managerial

60%

Skanska Specific

Benefits - Step 4:

How do we translate that“value” into real dollars?

Mobile Technology Research Conclusions

− Estimated 5% of overall project cost spent on rework− $5M Total on a $100M project

− 50% Trade Costs

− 50% Project Costs/Contingency

90%

10%

Document Control Rework:

Trade Costs

Project Costs/ Contingency

23%

77%

Quality / ManagerialRework:

0

10

20

30

40

50

60

70

80

90

100

0 100 200 300 400 500 600 700 800

%o

fR

ew

ork

Avo

ided

Additional Hours Spent (weekly)

Opportunity to Avoid Reworkthrough Additional Planning & Supervision


− 1/3 of all rework could be avoided with an additional 50 hours/week of field supervision & planning− 90% avoided quality control items

− 10% avoided document control items

Potential Savings fromAdditional 50 hours of Field Supervision

Trade Cost Savings $500 K

Project Cost / Contingency Savings $1.17 M

Total Savings $1.67 M


− Mobile Technology (excluding MERS) allows CM employees to be 8.5% more efficient on average

− Equates to $142K in avoided total rework− $99.5K in avoided project costs

− Hypothesis: In the long term, reductions in trade cost rework will reduce bids, translating into further ownersavings.

Return on Investment Summary

Project Costs Only 17%

Overall Costs 67%

Research Framework Review

Time Savings and Efficiency Gains

Decreased Weekly HoursWorked

Increased “Value Added”Planning

Reduced Rework

Contingency /Owner Savings

SubcontractorSavings


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

18% of all rework)

− Positive ROI for projects valued over $7.5M

Realized Savings from Mobile Electronic Resource Station


Project Cost / Contingency Savings $ 90 K

Overall Savings $900 K



Overall Costs 16300%

− Direct Costs:

− Indirect Costs:

2 hrs/week of ongoing team training

BIM – Implementation Costs

Investment

Smartboard

Performance Laptop Premium

BIM Suite of Software (unlimited users)

Free BIM Viewer

Misc. Training

TOTAL Direct Costs $17,500

BIM – Realized Benefits

− Pre-Construction Benefits:− 3-4 Days saved through model quantity verification

− Clash Detection & Coordination Benefits− 33% reduction in MEP coordination time

− $90K in overall avoided rework

BIM Coordination Savings from Avoided Rework


Project Cost / Contingency Savings $50 K

Total Rework Savings $90 K

BIM – Return on Investment



Overall Costs 414%

− Not inclusive of additional benefits resulting from additional time which is no longer spent supervisingrework


ROI

Project Total

Mobile Technology 17% 67%

Mobile Electronic ResourceStation

1540% 16300%

BIM 186% 414%

Overall TechnologyImplementation

122% 948%

ROI Projections for Future Projects

0%

200%

400%

600%

800%

1000%

1200%

1400%

Retu

rno

nIn

vestm

en

t

Total Project Cost

OverallImplementation -Project Benefits

OverallImplementation -Total Benefits

Questions

Will Senner

Assistant Project Manager

[email protected]

919-291-1425

© 2011 Autodesk

Autodesk, AutoCAD* [*if/when mentioned in the pertinent material, followed by an alphabetical list of all other trademarks mentioned in the material] are registered trademarks or trademarks of Autodesk, Inc., and/or its subsidiaries and/or affiliates in the USA and/or other countries. All other brand names, product names, or trademarks belong to their respective holders. Autodeskreserves the right to alter product and services offerings, and specifications and pricing at any time without notice, and is not responsible for typographical or graphical errors that may appear in this document. © 2011 Autodesk, Inc. All rights reserved.

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