Efficient Project Delivery Methods for Repair, Renovation, Sustainability, Construction Prepared for Pentagon/WHS-FSD| October 2014 Peter Nicholas Cholakis Leading Software Developer/Marketer Decades of Owner/Contractor Experience RSMeans Data Experts Thought Leadership/Education

“In the long history of humankind, those who learned to collaborate and improvise most effectively have prevailed.” – Charles Darwin

Today’s Topics  Importance and currently available collaborative project delivery methods  Description of key characteristics of a collaborative project delivery method  Roles and responsibilities of Owners, AE’s, Contractors  Importance of standardized information and supporting technology

Economic and Environmental Drivers  Altered World Economic Landscape – AECOO Productivity has DECLINED for over 40 years – Budgetary Pressures  Non-renewable Resources & Climate Change – Built environment is a major contributor

Construction - Fundamental Change Owners pay the bills: Thus, it’s the Owner’s responsibility to drive/require LEAN management processes, education/awareness, and the adoption of supporting technologies to improve construction productivity.

Industry understanding and support of LEAN processes (IPD, JOC, PPP…) and life-cycle management. Factors Affecting Adoption of Efficient Construction Methods Executive leadership & support Human resources Process & Information needs/capabilities Risk perception Financial resources Organizational Issues Standards Market Factors Economics Climate Change Mandates Stakeholder demands BIM Ontology Cloud Computing Integrated Project Delivery Education, Support, & Training

Requirements for Change – Check List  A Robust Ontology (Terms, Definitions, and Associations)  Life-cycle cost focus vs. prevalent first-cost mentality  Migration from linear strategy-design-construction- demolish to multi-faceted, cyclical portfolio management-project delivery-property management model  “Trust but measure” – Owners can’t manage what they don’t measure - Transparency

Lifecycle Management Today’s Focus

Traditional vs. Collaborative Construction Project Delivery Methods  Design-Bid-Build (DBB)  Design-Build (DB)  CM-at-Risk (CMAR) UNPRODUCTIVE ANTAGONISTIC / LEGAL DISPUTES EFFICIENT MUTUALLY BENEFICIAL RELATIONSHIPS  Integrated Project Delivery (IPD)  Job Order Contracting (JOC)  Public Private Partnerships (PPP) INFORMATION SILOS TRANSPARENCY

Traditional vs. Collaborative Construction Project Delivery Methods

What is JOC / JOB Order Contracting  3-5 Year Contract  Construction Delivery Method  A “Better Way” for the Numerous Renovation, Repair, Sustainability Construction Projects  Costs Developed Using a Unit Price Book (UPB) and a Co-efficient  Performance-based  Transparency  Collaborative  Win/Win for Owners/Contractors/AEs

JOC Requirements  Right Teams  Unit Price Book (RSMeans)  Owner Estimates (IGEs)  Performance Bases  Transparency  Supporting Technology  Training

JOC Benefits  On-Time / On-Budget Projects  Fewer Change Orders  Enhanced Communication  Shorter Procurement and Project Timelines  Transparency  Longer Term Relationships  Higher Satisfaction for ALL

 PROVEN – 25-year track within the DOD  EFFICIENT - Reduces engineering, design, & procurement time  LONG-TERM - Typically 3-5 year contracts  PARTNERING – Requires teamwork – owners, contractors, AE’s  PERFORMANCE-based - Contractors selected value / qualifications  CONVENIENT – Construction services from concept to close-out JOC Basics

Shorter Procurement, Fewer Change Orders = Savings

 Track & Manage each project from inception to completion.  Manage a single project, entire contract, or multiple contracts.  All project milestones, concept thru warranty period.  Display status of each project  Maintain a complete cost history  Record all estimates associated with a project.  Review value of all projects awarded on a specific contract, or to a specific contractor.  Report pre-negotiation strategies and post- negotiation summaries. Programming Estimate Estimates from Each Design Stage Final Detailed Cost Estimate Initial Contractor Proposals Technically Evaluated Proposals Final Revised Contractor Proposals Modifications & Changes Orders JOC Process

Supporting Technology Integration of Proven Construction Delivery Methods / Project Management Standardized Cost Data Architectures / Taxonomies (i.e. RSMeans TM – 400,000 line items) Comprehensive Document Management Electronic Visualization / QTO (i.e. eTakeoff TM )

Supporting Technology Collaborative Software Application Cloud Computing? Contract Management Project Management Document Management Visualization / QTO Owner / Contractor/AE Modules Integration Collaborative Software Application Cloud Computing? Contract Management Project Management Document Management Visualization / QTO Owner / Contractor/AE Modules Integration

Manage Multiple Contracts

Compare, Evaluate, Negotiate, Award

Visual Estimating / QTO / Pattern Search

Future “WIN-WIN” Integration of best-in- class, new life-cycle focused processes, technologies and services. Proprietary, vendor dependent development Non-proprietary, open standards/development

Storage Costs Approaching Zero  Traditional Databases Dying  Data Never Lost  Information Linkages  Information Reuse

Capabilities/Expertise Technology Cost Estimating RSMeans Data Federal Sector Process Integrated Project Delivery IDIQ Products/Services e4ClicksCeasel Diverse Training

Ceasel Cloud Cost Estimating Ceasel PEOPLEPROCESSINFORMATIONTECHNOLOGY Create, Visualize, and Share Standardized, Accurate, and Reusable Information. Increase Productivity

What is Ceasel? The BEST electronic presentation of RSMeans Cost Data Collaborative Line Item Cost Estimating Solution – Microsoft Azure Cloud Blazing Fast with Multiple Patents Pending A Tool for Connecting People, Information, and Process, Anytime, Anywhere 28

Evolution of Cost Estimating/Project Management Cloud Computing

Benefits – Ceasel Cloud Computing Architecture  Collaboration - users work concurrently on projects in real-time…virtually anyone, anywhere, anytime.  Data Integrity – Information is NEVER deleted. Changes can be “rolled back” at any time by authorized administrators.  Data Protection – You determine how, when, and where to publish data: your private area, as read only to specified members within a private cloud, all members in a private cloud, or publish information to all members in public cloud.

Benefits of Ceasel’s Cloud Computing Architecture  Visualization – Project participants see data earlier in the project life-cycle, driving fewer change orders, faster project timelines, and virtual elimination of legal disputes.  Agility – Rapid deployment, monitoring, and the ability to quickly update processes and policies.  Virtually no resource required of internal “IT” for deployment or applications specific changes, computing power, storage space, etc.

Benefits of Ceasel’s Cloud Computing Architecture  Mobility – Resources can accessed from multiple locations.  Centralization of Information – While information can be gather from distributed locations, consolidation and global oversight is supported to assure mission success.  Business Continuity –Internet access is sole requirement. Data centers provide multiple redundancies.

Ceasel’s Metro Interface

Line Item Modifiers with Full Descriptions in Plain English

Ceasel Roadmap Cloud Cost Estimating Job Order Contracting All Construction Delivery Methods Associated Workflows Supported by Digital Technology Enterprise cloud application and associated plug-ins to assist in collaborative life-cycle management of the built environment. Cost Estimating Life-cycle Modeling & Decision Support Efficient Project Delivery

Ceasel Availability Module1 – RSMeans line item estimating at estimate and project level. Beta Now! Module2 – Full Program, Project, and Document management for JOC, SABER, IDIQ, SATOC, MATOC, MACC, POCA, BOA. (2015) 39

40 “In the long history of humankind, those who learned to collaborate and improvise most effectively have prevailed.” – Charles Darwin

Q&A Peter Nicholas Cholakis 4Clicks Solutions

Presenter Bio  Chief Marketing Officer for 4Clicks Solutions ( leading provider of cost estimating and project management software and solutions to the DOD Sector, and software provider for RSMeans JOCWorks.  Former Senior Consultant for RS Means / Reed Business Information – Strategic partnering with BIM and cost estimating software OEMs as well as large end users.  Established VFA as thought leader in the facilities consulting and condition assessment industry.  Defined the CPMS (Capital Planning and Management Solutions) strategic concept effectively bringing it to a market that VFA dominated for years including the higher education and government segments  Exceptional domain knowledge and expertise in facilities lifecycle costs and total cost of ownership applicable to various market segments including corporate and healthcare  Seminal thinker on TCO (total cost of ownership) applicable to construction and facilities industry associations including FFC, APPA, NASFA and IFMA