Ken Eickmann Director Construction Industry Institute What Can CII Do For You? First-Time Attendee Orientation Ken Eickmann Director Construction Industry Institute Annual Conference 2001

CII Mission To improve the safety, quality, schedule, and cost effectiveness of the capital investment process through research and implementation support for the purpose of providing a competitive advantage to its members in the global marketplace.

CII Owner Members 3M Abbott Labs Air Products & Chemicals Anheuser-Busch Aramco Services BP Amoco Bayer Boeing CITGO Cargill Celanese Chevron Conoco Dofasco Dow Chemical DuPont Eastman Chemical ExxonMobil FPL Energy GSA General Motors GlaxoSmithKline Huntsman Corp. Intel

CII Owner Members Eli Lilly and Company NASA NAVFAC Ontario Power Generation Phillips Petroleum Praxair Procter & Gamble Reliant Energy Rohm and Haas Shell Oil Smithsonian Institution Solutia TVA Texaco U.S. Air Force Research Lab U.S. Army Corps of Engineers U.S. Department of Commerce/NIST U.S. Department of Energy U.S. Department of State U.S. Steel University of Texas System Weyerhaeuser

CII Contractor Members ABB Lummus Global ALSTOM Power BE&K BMW Constructors Baker Concrete Construction Bechtel Group Black & Veatch Burns & McDonnell Burns and Roe Butler Manufacturing CDI Engineering Chicago Bridge & Iron Day & Zimmermann Dick Corporation Dillingham Construction Eichleay Holdings Fisher Controls Fluor Daniel Foster Wheeler USA Graycor Hilti Honeywell

CII Contractor Members Integrated Electrical Services Jacobs Johnson Controls Kellogg Brown & Root Kiewit Construction Kværner M. A. Mortenson Murphy Company PSEG Energy Technologies Parsons Energy & Chemicals Petrofac LLC Primavera Systems Rust Constructors S&B SAP America SMS Demag Shaw Group VA TECH Walbridge Aldinger Washington Group H. B. Zachry

CII Core Processes Research Implementation Education Benchmarking & Metrics Globalization Breakthrough

Research

Research Process Topic Selection RFP Board of Advisors approval “Needs” Survey Workshops RFP Board of Advisors approval Team creation

distributed to members Research Products 82 Research Summaries 146 Research Reports 57 Implementation Resources Compact disc distributed to members

Best Practice A process or method that, when executed effectively, leads to enhanced project performance. To qualify, a practice must be sufficiently proven through extensive industry use and/or validation.

Best Practices Pre-Project Planning Alignment Constructability Design Effectiveness Materials Management Team Building Partnering Quality Management Change Management Disputes Resolution Zero Accidents Techniques

Safety Performance Owners & Contractors 16 14.30 14.20 14 13.00 13.10 12.20 Industry 11.80 12 10.60 9.90 9.50 10 8.80 Est. 7.71 8.21 Recordable Incidence Rate 8 7.19 6.12 6 5.32 CII 4.31 3.44 4 3.00 2.66 2.30 1.67 Prelim. 1.06 1.60 1.59 2 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 325 413 477 497 527 613 644 770 518 765 995 864 Note: Industry based on OSHA SIC 15 Year and Work-hours (MM)

Safety Performance Owners & Contractors 8 6.80 6.79 7 6.10 5.80 6 Industry 5.50 5.50 4.90 5 4.50 4.40 4.00 Est. 3.55 Lost Workday Case Incidence Rate 3.67 4 3 1.90 2 1.55 1.45 1.14 CII 0.81 1 0.63 Prelim. 0.26 0.55 0.45 0.31 0.41 0.27 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 325 413 477 497 527 613 644 888 591 763 1,122 864 Note: Industry based on OSHA SIC 15 Year and Work-hours (MM)

Current Research Projects Electronic Simulation in Construction * Integrated Loss Prevention Programs Engineering Productivity Measures * Making Zero Accidents a Reality * Executing Small Projects * Evaluating On-Site Design Project Delivery and Contract Strategy * Making Virtual Teams Work * * presenting at this Annual Conference

Current Research Projects (continued) Construction Supply Chain Performance Modularization, Preassembly, Off-Site Fabrication Update Construction Technology Needs E-Commerce Applications Risk Analysis - International Projects Shortage of Skilled U.S. Craft Workers Design Practices to Facilitate Automation Value Engineering Toolkit Innovative Crew Scheduling

CII Core Processes Research Implementation Education Benchmarking & Metrics Globalization Breakthrough

CII Today Over 15 years of research results. Research benefits the entire industry. Over 300 products. University short courses offered. Leveraged funding available. Membership expanding and growing.

Benchmarking & Metrics

CII Benchmarking Database 1200 300 $52.2B Owner Contractor 290 1000 $49.5B 250 $39.8B Owner Contractor 800 200 529 Number of Projects 477 187 600 Number of Projects $26.0B 392 150 145 400 100 132 215 $11.6B 200 424 460 94 353 50 74 227 55 54 52 115 1996 1997 1998 1999 2000 < $15MM $15MM - $50MM - > $100MM $50MM $100MM 350 342 300 International 294 250 Owner Contractor 229 200 Domestic Number of Projects 150 760 100 130 50 63 34 42 38 46 Buildings Heavy Infrastructure Light Industrial Industrial

Value of Best Practices 0.4 0.3 0.2 Better 0.1 Performance -0.1 -0.2 4th Quartile 3rd Quartile 2nd Quartile 1st Quartile Low High Practice Use

Pre-Project Planning Practice Use 4th Quartile 3rd Quartile 2nd Quartile 1st Quartile -0.2 -0.1 0.1 0.2 0.3 0.4 Project Cost Growth Low High Pre-Project Planning Practice Use

The Bottom Line Increased use of Best Practices Better project performance The ability to quantify the savings

Implementation

Implementation Company responsibility Implementation Strategy Committee guidance CII staff support Education program Implementation teams

Implementation Support Programs Implementation Champions Experienced Users Fast Start User Program Virtual User Groups PDRI

Education

Education Tools Education modules Technology Assisted Learning CII Short Courses: Arizona State University Clemson University University of Texas-Austin

Committees and Alliances

CII Standing Committees Executive Benchmarking Education Finance Implementation Strategy Membership Nominating Research Strategic Planning Annual Conference CPI Conference Knowledge Structure

CII Alliances American Bar Association AIChE Engineering & Construction Contracting (ECC) Conference Associated Builders and Contractors European Construction Institute Mechanical Contractors Assn of America National Center for Construction Education & Research Project Management Institute

Leveraged Funding Cooperative R&D agreements NSF Advanced Technology Program Sloan Construction Program/ UT Austin NIOSH Others