CM eJournal - cmaanet.orgcmaanet.org/files/advisor_issues/CMeJournal MAy 2014_F.pdf · System Dynamics Applied to Outsourcing ... EMOTIONAL INTELLIGENCE: ... initial delays and report

The Art of Fortune Telling: Is Your Schedule Update Telling You What You Think It Is?Chris Payne, PE, CCM

Going Digital at DFW International AirportBen Bringardner

Primal Safety: A Gut Level ApproachBrent Darnell

The Owner/CM Relationship: Close the Construction Productivity Gap with Collaboration Eric Law

5.2014

CM eJournal, May 2014 2

CM eJournal, May 2014 3

Milo Riverso, PhD, PE, CCMCMAA Chair

WHAT DO WE PROMOTE?

CMAA is not a typical trade association. Rather than create markets for our members or shape government rules, our goal is to increase awareness among owners about the value of our Standards of Practice (SOP) and the benefits of professional certification. Owners, public and private, are a critically important and growing component of our membership.

Our SOP, and our professional certification, are means for owners improve their business practices and bottom line. Through membership involvement, owners have the opportunity to increase their level of knowledge and sophistication in project delivery methods. Membership also enables owners to stay current with new techniques and concepts, and to build networks of colleagues. Owners join CMAA because they know that ultimately, our SOP will lead to high quality projects delivered safely, on time, and on budget.

I became involved in CMAA after becoming President and CEO of STV. Earlier in my career, though, I sat on the other side of the table, as head of the New York City School Construction Authority. In that role, as an owner, it was clear just how valuable professional CM services were to the successful execution of my capital program.

The typical owner’s outlook today is shaped by his/her professional needs. Most contemporary building projects are undertaken through a capital program. Managing those programs requires a long term view of an asset’s performance -- what will it cost to operate and maintain, what its value will be in the future, and how will it be upgraded.

A professional service provider who can act as a part of the owner’s team and deliver counsel to support this complex strategy brings a great deal of value to an owner. The CMAA is the place where owners and service providers with shared values can connect.

CMAA’s SOP, and the ongoing professional development and certification programs based on them, form the basis of this value. The SOP is our resource, our advantage, our “sales pitch.” Understanding this is the key to our success, today and in the future.

The eJournal is an online forum for scholarly and technical articles by CMAA members. Consider submitting a proposal, or a complete article, to the CM eJournal.

As examples of the kind of work the eJournal is seeking, consider these recent publications:

Evaluation of Contingency Allocation Methods for Transit Projects in the US and UK By Payam Bakhshi, PhD

System Dynamics Applied to Outsourcing Engineering Services in Design-Build Projects By Stephen D. Lisse, PE

Constructibility Reviews By Stephen R. Pettee, PE, CCM

Contact John McKeon at CMAA for more details, or visit www.cmaanet.org/cm-ejournal.

AN OPPORTUNITY FOR YOU TO BE PUBLISHED!

Chairman of the BoardMilo Riverso, PhD, PE, CCM, STV, Inc.

President and Chief Executive OfficerBruce D’Agostino, CAE, FCMAA

EditorJohn McKeon

DesignTGD Communications, www.tgdcom.com

CM eJournal, published quarterly by CMAA, reports on and follows the industry as a service to its members. Submission of articles, ideas and suggestions is appreciated and encouraged.

7926 Jones Branch Drive Suite 800 McLean, VA 22102-3303 USA [email protected], www.cmaanet.org

CMAA ©Copyright 2014 ISSN 1084-75327 Reproduction or redistribution in any form is forbidden without written permission of the publisher.Advertising opportunities are available. For information, contact Mark Gedris at [email protected]

FROM THE CHAIR

Evaluation of Contingency Allocation Methods for Transit Projects in the U.S. and U.K.

Payam Bakhshi, Ph.D.

System Dynamics Applied to Outsourcing Engineering Services in Design-Build Projects

Stephen D. Lisse, P.E.

Gender-based Compensation in the Construction Industry

Angela Smiley, BSEE, MBA, PhD

Constructibility Reviews

Stephen R. Pettee, PE, CCM

3.2014

CM eJournal, May 2014 4

6 THE ART OF FORTUNE TELLING: IS YOUR SCHEDULE UPDATE TELLING YOU WHAT YOU THINK IT IS?Many projects finish significantly late in spite of repeated schedule updates showing that all is well. What are the root causes of these misleading updates and how can you make your project schedule more trustworthy?

9 GOING DIGITAL AT DFW INTERNATIONAL AIRPORTThe Dallas-Fort Worth Airport Terminal Renovation and Improvement Program developed an innovative system to store documents in the cloud and access them via iPads and other devices. The result was a $5 million plus savings and an ambitious plan for the digital “next steps.”

12 EMOTIONAL INTELLIGENCE: THE FUTURE OF COLLABORATION PRIMAL SAFETY: A GUT LEVEL APPROACHThe present system to ensure project safety is a command and control approach where strict safety rules are implemented. This approach has been marginally successful, but we have reached the limit of its success.

14 THE OWNER/CM RELATIONSHIP: CLOSE THE CONSTRUCTION PRODUCTIVITY GAP WITH COLLABORATIONBy leaving a legacy of best practice for the owner, CMs are actually contributing back to the owner’s budget, allowing the owner to build more projects, resulting in more opportunities for the CM.

TABLE OF CONTENTS

CM eJournal, May 2014 5

BRENT DARNELL a mechanical engineer and a graduate of Georgia Tech, is a leading authority on emotional intelligence and a pioneer in its use in the construction industry. He is an adjunct professor at Auburn and Penn State, and his book, The People Profit Connection, was written specifically for the construction industry.

A U T H O R S

ERIC LAW is the founder and CEO of EADOC LLC, provider of a

complete, collaborative CM application. Earlier,

Law was North American Director of Professional

Services for an enterprise information management

software firm, and served as a project engineer for Kiewit Corporation. He holds a BS in

Mechanical Engineering from California Polytechnic

State University.

CHRIS PAYNE, PE, CCM has more than 26 years’ experience in construction management and design, specializing in resolution of construction disputes, including analysis of delays. As MBP’s manager for the northwest Virginia region, he oversees a variety of building and transportation programs, providing direct client coordination and quality assurance for a staff of more than 80 construction professionals.

BEN BRINGARDNER is a BIM Manager with Balfour

Beatty Construction for the DFW International Airport TRIP

Project. In addition, he is a regional technology resource

working to increase the capabilities of Balfour Beatty’s

central region staff and to facilitate organizational change. Ben is focused on helping teams

access project information as quickly and easily as possible.

CM eJournal, May 2014 6

CONSIDER THE FOLLOWING SCENARIO

You are managing a project on behalf of an owner. The project contract requires that the contractor prepare a detailed CPM schedule which includes cost-loading, and then submit monthly updates with updated costs and projections of work to be completed. Like any good construction manager, you perform a detailed review of that baseline schedule and its subsequent updates.

Early in the project, you notice that the contractor’s performance is lagging behind the baseline schedule you’ve reviewed and approved. However, the contractor recognizes that its performance

has not met the goals set forth in the baseline schedule and makes revisions showing how the project will stay on schedule as part of the updating process. This pattern repeats itself for several months, with each successive update revised slightly to show that the project will finish on time, even though actual progress is well behind what was originally envisioned.

While you are encouraged that the contractor continues to take responsibility for the initial delays and report that the project will finish on time, you are now in a dilemma: You start to suspect that the current forecast contained in the schedule cannot be performed, given the

resources and production of the contractor. The monthly schedule submittal continues to indicate that everything is fine—the critical path is reasonable, the remaining work is aggressive but achievable—but your experience tells you that the schedule is not realistic. What do you do? Should you report to ownership that the project will finish late? Reject the contractor’s schedule update?

What should construction managers and owners do about this all-too-real dilemma? Through an analysis of more than 120 actual projects, MBP has identified some common indicators that can help you avoid some of the delusions that construction managers typically possess

THE ART OF FORTUNE TELLING: IS YOUR SCHEDULE UPDATE TELLING YOU WHAT YOU THINK IT IS?By Chris Payne, PE, CCM

CM eJournal, May 2014 7

Figure 1

A Typical S-curve

when reviewing cost-loaded CPM schedules.

COST-LOADED CPM SCHEDULES

For more than 50 years, it has been well recognized in the construction industry that a well-developed critical path method (CPM) schedule is the best tool for managing time on a project. Over the past 20 years, cost-loaded CPM schedules have become increasingly accepted as a convenient tool for determining progress payments and assessing project performance. Typically, an initial or baseline schedule is established at the outset of the project, which includes the assignment of values for each line item in the schedule. This schedule is then updated on a monthly basis to assess contractor progress, establish the basis for monthly progress payments, and to forecast the project completion date based on current progress and any revisions to the schedule that reflect the contractor’s current plan for performance.

Too often, however, projects finish late in spite of these schedules. In many such cases, schedule updates seem to indicate that the project is on schedule or just a week or two behind, even when the project in fact ultimately finishes many months behind schedule.

OUR RESEARCH

Using data from more than 120 projects and more than 2,400 schedule updates, MBP conducted detailed research to see if there were early warning signs that might indicate when projects may be in trouble in spite of favorable schedule updates projecting an on-time completion. We collected cost-loaded schedules from various project types, including horizontal and vertical construction, using various delivery methods, primarily design-bid-build and design-build. We compiled the schedules into a database in order to examine

whether there were consistent trends among the various projects.

Our research supports the following notions:

• Projects frequently finish late.

• Owners and construction managers frequently misinterpret schedules provided to them.

• Increased use of earned value methodologies can reduce misinterpretations and lead to better outcomes.

COMMON SCHEDULE ANALYSIS TECHNIQUES

On projects with cost-loaded CPM schedules, most sophisticated owners and construction managers have procedures in place to review contractor schedule submittals. Commonly used basic techniques include checking for the following items in addition to numerous others:

• Basic schedule quality, including the use of correct relationships among activities, reasonable durations of work, supportable assignment of costs, and overall coherent organization of activities.

• A reasonable critical path that indicates that

progress on the project will be controlled by major operations that are planned to be performed in a logical sequence.

• The absence of negative float, which would indicate that an initial schedule or update implies an anticipated finish beyond the contract completion date.

With cost-loaded schedules, our research suggests that these traditional techniques are inadequate and should be enhanced with additional analysis typically associated with earned value analysis.

EARNED VALUE CONCEPT: THE S-CURVE

While true earned value analysis is complex, the basic element that can be considered is the S-curve, or earnings curve, a plot of cumulative cost versus time derived from the CPM schedule (planned or actual). The curve derives its name from an idealized shape, where progress would typically start slowly, build momentum during the middle of the project, then taper off near completion, thus producing an S-shaped curve. Figure 1

Since CPM schedule activities intrinsically possess float,

0 5 10 15 20 MO

$40M

$30M

$20M

$10M

$0M

In many such cases, schedule updates seem to indicate that the project is on schedule or just a week or two behind, even when the project in fact ultimately finishes many months behind schedule.

CM eJournal, May 2014 8

indicating a range of time in which the various events can occur, it is possible to plot S-curves using early dates (the most optimistic projection of planned activity) and late dates (the most pessimistic). Too often, these curves are overlooked in schedule analysis but provide a rich source of data.

OUR PROCESS

In our research, we converted all costs and durations from the various projects to percentage values to allow for a side-by-side comparison. For example, on a typical project, one might expect that approximately 50% of the cost of the work would be earned after 50% of the time has elapsed, regardless of whether it was a $2 million project to be completed in nine months or a $100 million project spanning two years.

Our strategy was to determine whether there were certain characteristics of successful projects finishing on time that would be identifiable as compared to those that finished late. Our hope was that in comparing hundreds of schedules, we might identify key warning signs of projects going off track.

KEY FINDINGS

We found that better developed schedules tend to correlate with better project outcomes. For example, one indicator for likely success in a project comes from comparing the early and late earnings curves in the planned schedule. Our research indicates that in schedules where there is a wide gap between the early and late curves, the project is more likely to finish late. The appearance of early and late curves too far apart can be an indication of an incompletely developed and/or overly aggressive schedule. If the project starts off slowly, the apparent flexibility in the remaining schedule may mask serious performance issues that wouldn’t readily be detected through

typical analysis techniques. Our research suggests that the curves should be no more than 20% of the time duration apart at their widest gap. Figure 2

A related flaw in many schedules we reviewed was overly steep earnings curves, such as those indicating that a large portion of the work would be performed in a very short period of time. For example, we saw a tendency in the earnings curves of projects that finished late with very aggressive performance of 40 -50 percent of the work in just 10-15 percent of the time allowed on the project. On most projects, it is simply unrealistic for production to ramp up into such a frenzy of activity during a limited time period. When this anticipated frenzied period of activity was scheduled late in a project, the “S-curve” more closely resembled a “J-curve”, and almost inevitably proved unsustainable. Our research indicates that the maximum slope of an earnings curve (% of cost over a % of time) should generally not exceed three.

CONCLUSION

As illustrated in the scenario at the opening of this article, the disparity between the typical CPM data of dates, durations, and floats versus the projected

earnings data can widen over the life of a delayed project. Therefore, it is important that a thorough initial schedule review, incorporating earned value analysis, be done when approving a baseline schedule to verify that the initial schedule presents a sound basis for evaluation. During project performance, these analyses should be repeated to make sure that early warning signs of pending delays are not overlooked. A proactive and robust schedule and cost analysis can be the best way to avoid the delusions that can arise from typical schedule reviews.

Figure 2

Recommended gap in early and late curves

0% 20% 40% 50% 60% 100%TIME

100% COST

80%

60%

40%

20%

0%

<20%

One indicator for likely success in a project comes from comparing the early and late earnings curves in the planned schedule.

Our research indicates that in schedules where there is a wide gap between the early and late curves, the project is more likely to finish late.

CHRIS PAYNE is a Senior Vice President with MBP and can be reached at 800-898-9088 or via email at [email protected]

CM eJournal, May 2014 9

In 2004 when I first set foot on a construction site fresh out of college the most advanced pieces of technology on site were a microwave and a fax machine. Times they are a changin’!

In 2010 when I stepped onto my current job site as the BIM Manager for BARC’s (a JV consisting of Balfour Beatty, Azteca, Russel, Carcon) $1 billion portion of the DFW Airport TRIP project, things had already changed quite a bit. With a sophisticated team we were equipped to leverage the likes of BIM, laser scanning, etc, but the project was still slated to run with good old fashioned paper documents.

Frustrated with the challenge of getting to the information I needed to complete my preparation for the BIM portion of the project, I approached our leadership about ideas for a digital document management system utilizing the iPad and cloud storage. Amazingly, at the same time the airport had begun discussions of similar possibilities and I was given an iPad 1 to share with another developer.

After much tinkering, testing, and effort we were able to create a system that we were confident could replace the 60,000 E1 paper drawings projected to be issued during the project’s seven year duration. (As of the end of 2013 we are on track for closer to 100,000 drawings.)

In March 2011 we were given approval by DFW Airport to purchase 15 iPads and to launch the system before the start of phase one of the Terminal A Renovation. This system replaced paper documents, but equally important, it created a centralized record set that could be distributed to teams in real time so that we could finally all be building from the same set of drawings, eliminating unnecessary costly mistakes!

We launched believing that the system could be outdated in a year. In fact, three years later digital docs continues to be a very relevant system, and very cost effective when compared to similar product offerings released since March of 2011, saving the owner a reported $5.1 million across the entire program.

GOING DIGITAL AT DFW INTERNATIONAL AIRPORTBy Ben Bringardner

CM eJournal, May 2014 10

HERE’S HOW IT WORKS

Drawings are stored on the cloud server as PDFs and we connect to the cloud server from both iPads and desktops to access and edit the drawings. For our team we use a “hybrid cloud” called Egnyte™, which has excellent security capabilities (a must for airport projects like ours) and offers a local cloud option that replicates the central cloud locally so your team never has to upload or download anything. As drawings need editing (typically posting RFIs or replacing an old sheet with a new one) project engineers open the files from the local cloud, mapped to the X:\ drive, edit them using Bluebeam and then simply save them. The local cloud automatically reconciles with the central cloud server every 15 minutes.

To connect with iPads we use an app called GoodReader. The Bluebeam Revu app could also be used, and it has some very nice markup tools as well. We establish a sync connection from each iPad to Egnyte’s server using Egnyte’s “webdav” address. Most cloud storage

options have a webdav address and this is the key for connecting the iPad to the server and setting up a sync. Once connected, all our superintendent has to do is hit the “sync” button in the GoodReader app and all the latest and greatest drawings and updates download.

The great thing is that the sync stores the files on the iPad and supers are never left out in the cold when they are in the field with spotty or no internet. They could be on a plane, in a field, a basement, or anywhere, and be confident that they will have the information they need.

Additionally, we have utilized Bluebeam Revu Extreme to automatically hyperlink drawings, so the supers can simply tap on a section cut, detail tag or RFI and the sheet they are interested in loads automatically. With Bluebeam Extreme the process of creating the links that used to take days now takes minutes. Having this linked information available for the field teams is critical since it can be frustrating to have to search through lists of files to get to the one you want... and, after all, we are asking them to view 1,260 square inches of information on a 54 square inch screen.

To date we have 250 iPad users and 450 total users accessing nearly 35,000 project drawings. We have no paper set, and have even set up an area for the code department to store the code-reviewed set of drawings. In fact there are many participants from all sides of the project including the owner, QA/QC, CMAR team, sub-contractor team, code, and designers.

While we are happy with the effort we are not yet satisfied, and as a result we have recently endeavored to go further. In phase two of the Terminal A Renovation we recognized that our system was really just digital paper. We had gone “paperless” but wanted to “go digital” and start to fully leverage the capabilities of digital. For example, the system stores 35,000 E1 PDFs, digitally. But why be bound by the 30x42 E1 size? That is a legacy of the constraints of paper. The new constraint is performance: Will it load in 10 seconds or less on our field teams’ iPads? If it will and it will make information access easier, why not do it?

As a result we stitched together our floor plan sectors into single mega PDFs 30x85. Each floor has ten sectors (pieces of the whole issued on individual sheets) which need not be pieces any longer. This

The great thing is that the sync stores the files on the iPad and supers are never left out in the cold when they are in the field with spotty or no Internet.

DFW Airport TRIP Project

1

2

3

TERMINAL RENEWAL AND IMPROVEMENT PROGRAM

- Terminal A & C Renovation (200,000 SM) - 6 Phases in Operational Airport- DART Rail Station

- 7,700 Car Enhanced Parking (300,000 SM)- IT Infrastructure Improvements

6 YEARS (2011-2017) $1 BILLION

1. “I can resolve issues at the issue, it allows me to get more done in the field.” Superintendent

2. “The iPad saves me 1-2 hours every day.” QA/QC

3. “Printing costs were reduced by $2.5 M across the entire project.” Owner

PHASE 1

PHASE 2PHASE 3

TERMINAL A

DART RAIL STATION

Managing Project Information: iPads in the Field

CM eJournal, May 2014 11

reduced the floor plan drawing count from 1,000 to 93. Then a “navigator” was added, a matrix of hyperlinks that allows supers to go from any drawing to any drawing with a single click.

The system cost a fraction of the cost of its paper equivalent. In an ROI study for a typical 200 sheet project we calculated the payback period of iPad deployment with this system to be about three months. The time saved by being able to resolve issues at the site of the issue (as opposed to having to walk back to the drawing set) alone was significant enough to justify the cost.

I want to challenge you to start thinking about going digital! The rewards for the entire team can be significant, and you may find a unique way to apply the same technology that pushes us all forward in leaving behind the old constraints and truly living in our new found digital home.

BEN BRINGARDNER is BIM Manager Balfour Beatty Construction. He can be reached at [email protected].

DFW Airport Project Team

The system stores 35,000 E1 PDFs, digitally. But why be bound by the 30x42 E1 size? That is a legacy of the constraints of paper.

OLD PARADIGM: 10 INDIVIDUAL SHEETS

NEW PARADIGM: 1 MONSTER SHEET

New Paradigm: New Opportunities

CODE INSPECTORS

SUBCONTRACTOR TEAM

OWNER TEAM

CONSTRUCTION TEAM DESIGN TEAM

CM eJournal, May 2014 12

Anyone who has ever been on a project where there was a serious accident knows that horrible feeling in the pit of your stomach when the radio crackles with the news that someone has been badly injured or killed, and you hear the siren of an ambulance in the distance. No matter how successful the project is, that is the one thing that will always be remembered.

SAFETY IS A HUGE ISSUE.

Not only is there a moral imperative to improve safety, but accidents and other safety issues cost the industry billions of dollars per year in high insurance costs, lawsuits, Occupational Health and Safety Administration (OSHA) fines, and image problems. We all know that construction is a hazardous occupation. In the United States, during the period from 1980 through 1995, at least 17,000 construction workers died from injuries suffered on the job. Can you imagine what these statistics are worldwide through 2013?

What is the problem? Do people want to work unsafely? If you ask them this question, their answer is a resounding “NO!” When you ask top managers if they want their people to work unsafely, they answer, “Of course not!”

So what is the problem here? The present system to ensure project safety is a command and control approach where strict safety rules are implemented.

If the rules are not followed, the offending employee is reprimanded or fired. This approach has been marginally successful, but because we have only focused on the objective side of safety, we have reached the limit of its success. To achieve the next level, we must tap into the subjective side and use emotional intelligence.

A LETTER FROM YOUR WIFE

A contractor had five elevator workers that were not working safely. They were not tying off as they should. The superintendent called them into the trailer and had a talk with them. He sent them home and told them to get a letter from their wives saying that it was okay for them to work unsafely. As soon as he had those letters in his hands, they could go back to work. The elevator guys were a little stunned, and sheepishly went home early. The next day, four of the wives visited the project, and the other one called. They told the superintendent that their husbands had a responsibility to their families to come home alive and unhurt each day, and if their husbands were not working safely to please call them, and they would straighten that situation out in very short order. This is a great use of emotional intelligence with regard to safety.

When you think about it, every person on every project has loved ones: a family, a spouse, a partner, a friend. When you look at safety from this highly

EMOTIONAL INTELLIGENCE: THE FUTURE OF COLLABORATION

PRIMAL SAFETY: A GUT LEVEL APPROACHBy Brent Darnell

CM eJournal, May 2014 13

The present system to ensure project safety is a command and control approach where strict safety rules are implemented. This approach has been marginally successful, but we have reached the limit of its success.

personal perspective and make the emotional connections, when you put it in those personal terms, safety becomes much more than rules and regulations. Specifically, social responsibility, interpersonal relationships, and empathy skills are the keys to a safer work environment. But it all starts with emotional self awareness. When everyone is aware moment to moment of their surroundings and are able to discern when they are too tired or too stressed to work safely, then you take safety to a whole new level.

COMMUNICATION AND TEAMWORK

As we saw in the first article in this series, the typical emotional profile for most construction managers shows lower empathy (listening and communication), lower social responsibility (teamwork), and lower emotional self-awareness. Communication and teamwork are vital to working safely. Poor communication and ineffective teamwork can contribute to poor safety practices.

Controlling stress and burnout can also be a significant factor in preventing accidents. When we are tired or stressed, we have a greater tendency to make mistakes. And mistakes on a construction project can be fatal. We have found that stress is epidemic in the industry. Many of the workers are overweight, out of shape, use alcohol and tobacco frequently, have poor diets, poor sleeping habits, and poor stress management skills. Imagine a guy waking up after a night out with the boys. He’s a little hung over as he wolfs down a couple of cups of coffee and three or four donuts. During the morning break, he chugs a couple of Red Bulls. He’s tired. He’s sleepy. He’s worn out. He’s stressed. Now imagine that this guy is your crane operator. By teaching employees the basics of nutrition, sleep, exercise, and stress, this stress factor that may lead to accidents can be addressed head on.

We have developed a program called Primal Safety, which taps into this emotional side of safety. We have heard of contractors using this approach very effectively, decreasing their Experience Modification Rate to as low as 0.34. These contractors are not only saving lives and reducing emotional turmoil, but they are saving money and improving their bottom line. Imagine if the entire industry used this approach. The potential cost savings would be staggering, but the potential to decrease human suffering due to death and disability would be even greater.

ALPHA MALES AND SAFETY

There was an article in the July/August 2008 Harvard Business Review called “Unmasking Manly Men” by Robin J. Ely and Debra Meyerson. The article focuses on how roughnecks and roustabouts on oil rigs improved their safety by softening their approach and focusing on the safety and well-being of the workers. The supervisors showed the workers that they actually cared about them in a very personal way. According to Ely and Meyerson, “Over the 15 year period these changes in work practices, norms, perceptions, and behaviors were implemented company-wide. The company’s accident rate declined by 84% while productivity (number of barrels produced), efficiency (cost per barrel), and reliability (production ‘up’ time) increased beyond the industry’s previous benchmark.”

The key to this approach to safety is the emotional intelligence of the people on the projects; therefore the typical construction worker profile must be addressed first. We must start with emotional self-awareness so that workers are more aware of their surroundings, their bodies, and their levels of stress and fatigue. Then we should increase empathy skills, relationship skills, and social responsibility. Then, teach them how to manage their stress. That will make these types of programs successful. If we address these core issues, identify them, and take steps to improve them, we can create fundamental change that will help to take safety to a new level.

When people actually make emotional connections and care about each other, they look out for each other and work safer naturally. And when people work more safely, companies will save millions by lowering insurance rates, reducing worker’s compensation claims, decreasing wrongful death lawsuits, and increasing productivity.

We have created a Primal Safety Coloring Book. The book teaches the workers’ children how they stay safe while working. It’s in both Spanish and English, and all profits go to a foundation that helps workers who have been injured and families of workers who have been killed on projects. The kids color the pages, which are laminated and placed all around the project as a constant reminder of what is really important. For more details on Primal Safety, look at the safety chapter in The People Profit Connection.

When people actually make emotional connections and care about each other, they look out for each other and work safer naturally.

BRENT DARNELL is the founder of Brent Darnell International, Atlanta, GA. He can be reached at [email protected].

CM eJournal, May 2014 14

RECLAIMING PRODUCTIVITY WASTE

It’s no secret that productivity in the construction industry is on the decline. In fact, construction is one of the ONLY industries that continues to become less efficient (to the tune of $19 billion in waste each year) due to a lack of interoperability, according to the National Institute of Standards and Technology (NIST)1. On the positive side, this state of affairs provides construction managers the chance to deliver more than the traditional construction management services.

NIST defines interoperability as the “dynamic and seamless exchange of accurate, useful information on the built environment

among industry stakeholders throughout the facility lifecycle.” So clearly, owners and CMs have an opportunity to become more of an “interoperating” force that determines more of how the most efficient processes shake out across the project team and all of its members, and for the duration of the project. To begin, owners and CMs should plan to create repeatable systems and processes. Recreating the wheel on every project just isn’t a good use of the owner’s dollar.

Creating this new owner/CM “force” requires project role adjustments that will take some getting used to. After all, the CM wants repeat business from the owner, and may fear that the establishment of repeatable

best practices may decrease their contract size on the next project. It’s the nature of private business. But in many cases the CM, acting as the “owner’s representative,” has an opportunity to be more than just a chosen bidder for the owner. The CM can advise owners on more repeatable, efficiency-gaining practices that become a standard requirement for the next project, thereby contributing to the productivity of the industry, and their client.

OWNING THE INEFFICIENCY AND THE LONG-TERM SOLUTION

As holder of the project’s budget, the owner unfortunately pays for every bit of waste created across the project’s team members. On

THE OWNER/CM RELATIONSHIP: AN OPPORTUNITY TO CLOSE THE CONSTRUCTION PRODUCTIVITY GAP WITH COLLABORATION By Eric Law

CM eJournal, May 2014 15

the other hand, holding the purse strings give owners the ability to require more consultative training and guidance from their CMs.

CM expertise traditionally includes choosing a contract type and project delivery method, establishing project-wide processes and managing those processes from inception to delivery. To this end, it would make sense for CMs to guide owners in making those processes repeatable, collaborative, and for long-term gain.

For example CMs could help owners by:

• Writing contract requirements that reduce inefficiency across the entire project team.

• Establishing contract specifications with electronic information deliverables (not paper).

• Defining efficient processes for document and communication management that leverage new technologies.

• Providing visibility into common project risks and where they usually occur in process workflows.

In this way, the CM becomes a trusted advisor for the owner and delivers long term value beyond the current project.

LEAVING A CM LEGACY

Though it may seem that delivering long term solutions as part of a short term project may reduce the amount of work available to the CM on future projects, it’s actually quite the opposite. By leaving a legacy of best practice for the owner, CMs are actually contributing back to the owner’s budget, allowing the owner to build more projects, resulting in more opportunities for the CM.

Some re-useable deliverables the CM can leave behind for the owner to carry forward on future projects include:

1. Efficient contract specifications

Contract specifications that drive efficiency include clear definitions of project roles, ownership of workflow steps, and timelines/communications required for documentation like change orders. Some progressive CMs also include definitions of and requirements for data delivery. This allows CMs to define reporting and communications guidelines that eliminate redundancy across multiple parties. Data delivery requirements may also define specific methods for sharing information like

schedules, submittals and close-out materials. CMs may also choose to define acceptable versus non-acceptable RFI submissions, define required response times, and include the ability for the CM or owner to reject an RFI if it does not follow proper format.

2. Technology recommenda-tions that can be re-used across a program or portfolio of projects

As construction managers are typically engaged on a project by project basis, they have the opportunity to introduce their clients to new tools for improving project delivery. This provides the client the opportunity to evaluate tools for a single project, and then decide which ones to continue with. In this way the CM demonstrates expertise in delivering traditional services, while showing the additional value they can provide.

One of the ways to deliver long-term value is to leave the owner with tools to automate, track and enforce contractual requirements. Construction management or project management applications that support all defined contract requirements can easily be implemented on a single project and left behind to manage the client’s entire CIP program. The most efficient systems provide a single source for functional construction management, including cost control, document control, risk management, schedule integration, team communications, automated workflows, and reporting. A single repository for project information is also more cost effective than separate systems that don’t tie all of these pieces of data together.

BUILDING A CULTURE OF COLLABORATIONThree steps to help build a more collaborative team culture:

1. Document collaborative processes and procedures upfront to be used across the team.

2. Develop efficient processes that eliminate redundancy across the team in the following areas: scheduling, cost control, risk management and document management.

3. Choose a collaborative construction management technology that provides efficiency and benefits to all project participants.

CM eJournal, May 2014 16

ERIC LAW is the founder and CEO of EADOC LLC. He can be reached at [email protected].

Further, the owner has more control and visibility into project risk, and with it the ability to act on risk sooner.

To encourage collaboration, CMs may select tools that encourage adoption and use from any location. Web-based systems provide access from any location, which helps to integrate the team. Employing technology that allows unlimited users will also keep costs down while at the same time supporting a collaborative culture where project information is accessible to anyone on the project when they need it.

To foster that culture of collaboration and trust, project participants should always have access to an

export of project data when the project is complete. This allows team members to comply with their own company’s document archiving requirements. Clients also benefit from retrieving their data from the construction management system for their operations and management team to use within their applications.

3. Methodology for efficient communication structures that mitigate potential claims

Leveraging the CM’s expertise with past projects will allow them to provide a great level of insight into preventing claims for their client.

Here are three practices that a seasoned CM will be able to deliver:

• Map project workflows directly to contractual requirements to make it easier for participants to be compliant.

• Set up workflow processes with alerts for actions required in your CM system to prevent missed deadlines.

• Capture all documents and communications from all project participants to create a complete project record. This record serves as the timeline of events and communications to evaluate and defend against claims should they occur.

One way a CM can drive repeatable efficiencies for owners is to establish workflow structures that mirror contractual

relationships and integrate the project team.

REFERENCES

1. National Institute of Standards and Technology, Cost Analysis of Inadequate Interoperability in the US Capital Facilities Industry, 2010.

Workflow Structures

CM eJournal, May 2014 17

Bruce D’Agostino, CAE, FCMAACMAA President

A BETTER GLOBAL VIEW

At our recent Capital Projects Symposium in Baltimore, we staged a special presentation by ProMexico, the arm of the Mexican government responsible for strengthening that nation’s involvement in the world economy. The program focused on the large and growing opportunities in helping Mexico repair, upgrade and expand its infrastructure.

A ProMexico delegation visited CMAA headquarters not long ago for a very informative and productive meeting. In addition, the Mexican Chamber for the Construction Industry (CMIC) is strongly interested in establishing a collaborative relationship with CMAA and facilitating the growth of our Standards of Practice and certification program in Mexico.

CMAA has also begun working to expand the impact of our SOP and certification program in Canada, beginning with a collaboration with professionals at Ontario Power Generation and other organizations.

In addition, I recently took part in ConsMa 2014, the international construction management conference in Seoul, Republic of Korea.

These recent activities reinforce my belief that there is a tremendous worldwide potential interest in CMAA’s Standards of Practice. In fact, our SOP has become the effective world standard for professional construction and program management.

Major owners want the benefits the SOP can produce on their programs, and service providers want to meet this need. Companies located in other nations have

concluded that incorporating our SOP into their operations helps them compete internationally. It demonstrates that they can work to global standards. At the same time, American firms looking for business in other markets often find that having a roster of Certified Construction Managers (CCMs) opens doors for them.

CMAA, with our limited resources, has not mounted a concerted international promotion campaign. We have responded to specific opportunities, for instance when we translated the SOP into Brazilian Portuguese last year (with a big thank-you to Hill International!) A corresponding translation into Latin American Spanish is under consideration for 2014.

We may actually be entering a very favorable environment. The world is at least beginning to “beat a path to our door,” drawn by the promise of better project outcomes based on standards and certification.

The Construction Industry Institute’s (CII)adoption of the CCM as its preferred credential can’t help but accelerate this trend. CII’s corporate members include both owners and contractors with operations all over the world. The CCM offers them a way to standardize these operations—not only across countries but also, most importantly, across project delivery methods.

The interest in new delivery methods is global and growing, and it confronts owners with a bewildering array of options. The Certified Construction Manager, delivering a standards-based professional service, is a true navigational beacon in this stormy sea.

The interest in new delivery methods is global and growing, and it confronts owners with a bewildering array of options. The Certified Construction Manager, delivering a standards-based professional service, is a true navigational beacon in this stormy sea.

FROM THE PRESIDENT

CM eJournal, May 2014 18

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