CII – CMAA Best Practices – Best Practitioners Wayne A. Crew Director, CII CMAA 2010 Owner’s Forum Atlanta, GA May 4, 2010

A consortium of leading owners, contractors & suppliers, and academia working to improve the constructed project and the capital investment process. An organized research unit of the Cockrell School of Engineering at The University of Texas at Austin

History Established as a recommendation from The Business Roundtable Construction Industry Cost Effectiveness (CICE) Project to address: –construction research –fragmentation of the industry Founded in 1983 by 28 companies; now over 100 members. First to bring research to the engineering-construction world. First owner-contractor-academic research collaboration for the constructed project.

Mission Enhance business effectiveness and sustainability of the capital facility life cycle Expand the global competitive advantage of its members through: –active involvement and participation –effective use of CII research findings, including CII Best Practices. Purpose To measurably improve the delivery of capital facilities.

CII Principles Place a premium on safety, ethics, continuous improvement, and leadership. Owner/contractor member balance. Promote a high level of knowledge transfer. Provide leadership development through member participation. High member involvement; small professional staff.

Owner Members Abbott Air Liquide Air Products and Chemicals Alcoa Ameren American Transmission Co. Anheuser-Busch InBev Aramco Services Archer Daniels Midland Barrick Gold BP America Bristol-Myers Squibb Cargill Chevron CITGO Petroleum Codelco-Chile ConocoPhillips Constellation Energy DFW International Airport Dow Chemical DuPont Eastman Chemical Eli Lilly ExxonMobil GlaxoSmithKline Hovensa International Paper Kaiser Permanente Marathon Oil NASA Naval Facilities Engineering Command NOVA Chemicals Occidental Petroleum Ontario Power Generation Petrobras Praxair Procter & Gamble Progress Energy Saudi Basic Industries Corp (SABIC) Sasol Technology Shell Global Solutions US Smithsonian Institution Southern Company Sunoco Tennessee Valley Authority TransCanada Corp. U.S. Architect of the Capitol U.S. Army Corps of Engineers U.S. Dept. of Commerce/ NIST/Building & Fire Research Lab U.S. Dept. of Energy U.S. Dept. of Health & Human Services U.S. Dept. of State U.S. General Services Administration

Contractor Members Aker Solutions Alstom Power AMEC Atkins Faithful + Gould AZCO Baker Concrete Construction Barton Malow Bateman Engineering Bechtel Group Bentley Systems BIS Frucon Industrial Svcs. Black & Veatch Bowen Engineering Burns & McDonnell CB&I CCC Group CDI Engineering Solutions CH2M HILL CSA Group Day & Zimmermann Dresser-Rand Company Emerson Process Mgt. eProject Management Fluor Foster Wheeler USA Grinaker-LTA/E+PC Gross Mechanical GS E & C Hargrove E & C Hilti Jacobs JMJ Associates KBR Lauren E & Constructors M. A. Mortenson McDermott International Mustang Omniware Oracle USA Parsons Pathfinder Pegasus Global Holdings R. J. Mycka S&B E & Constructors The Shaw Group Siemens Energy SNC-Lavalin Technip URS Corporation Victaulic Company Walbridge Wanzek Construction The Weitz Company WorleyParsons Zachry Zurich

University of Alabama Arizona State University Auburn University Bucknell University University of California-Berkeley Carnegie Mellon University University of Cincinnati Clemson University University of Colorado-Boulder Colorado State University Columbia University East Carolina University University of Florida Georgia Institute of Technology University of Houston University of Illinois Iowa State University University of Kansas University of Kentucky Lehigh University University of Maryland University of Michigan Mississippi State University Universities involved University of New Mexico North Carolina State University North Dakota State University Oklahoma State University Oregon State University The Pennsylvania State University University of Pittsburgh Purdue University Polytechnic University San Diego State University San Jose State University Stanford University State University of New York-Albany Vanderbilt University Virginia Polytechnic Institute and State University Texas A&M University The University of Texas at Austin (CII headquarters & founding university) University of Washington University of Waterloo University of Wisconsin-Madison Worcester Polytechnic Institute

CII Knowledge Processes Knowledge Management Knowledge Assessment Knowledge Dissemination Knowledge Creation Research to define best practices, breakthroughs, and industry norms. Dissemination through publications, implementation guides, educational materials, workshops, and conferences. Assessment of the impact of CII practices through benchmarking. Management, organization, and assessment of the 500-plus CII documents and publications.

A world-class leadership program for senior executive candidates in the engineering and construction industry Program Description This intense custom-designed program offers the in-depth knowledge that will allow participants to understand and develop the broad range of leadership skills needed to realize their potential as contenders for the top capital facilities positions in their companies. The program’s innovative curriculum is comprehensive and integrated. It will fine-tune the business acumen of participants, develop executive skills, and enhance their abilities to enrich their organizations’ cultures and drive to profitability. The curriculum focuses on how to: Enhance executive leadership capabilities and strategic business skills. Build collaborative relationships between owners and contractors, and with peers across the industry. Benchmark on best practices and network with leaders from both owner and contractor companies. 10

2010 CII Annual Conference August 3-5, 2010 Over 500 Top Industry Attendees Presentations on: –New CII research –CII product implementation case studies New CII Initiatives –Professional Development –Implementation –Benchmarking –Other Notable Speakers Grand Cypress Resort Orlando, Florida

Performance Improvement Workshop Fall 2010 Focused on: CII Product Implementation Best Practices New Practices Case Studies Networking Houston, Texas November 8-10, 2010

Benchmarking Conferences & Workshops Essential for implementation of reliable benchmarking process. Updates improvements in the online system Explains new metrics and interactive reports Delivers annual training needed to stay in tune with improvements Ensures greatest benefit from this valuable CII resource. June 2-3, 2010 Abbott Park (Chicago), IL Hosted by Abbott

High th Quartile2nd Quartile1st Quartile Practice Use Performance Better 3rd Quartile Low Value of Best Practices

Use of Best Practices Company Level VBP Project Level VBP 15

Corporate Culture Culture Actively Supports the Implementation of Best Practices? –Results of Both Owners and Contractors

Corporate Culture Culture Actively Supports the Implementation of Best Practices? –Results of Both Owners and Contractors

18 Owners’ Use of Front End Planning

19 Owners’ Use of Partnering

20 Owners’ Use of Change Management

21 Owners’ Use of Planning for Startup

22 Contractors’ Use of Constructability

23 Contractors’ Use of Planning for Startup

Capital Projects Leadership McKinsey & Co. (1998) “The management of capital investment has an enormous effect on profitability and competitiveness, yet few companies do it effectively. We believe that the use of evaluation tools, disciplined processes, and best practices can help companies trim capital spending by up to a quarter without reducing capacity or functionality - and improve their operating costs and revenues through better investment decisions.”

CII – CMAA Mission Statement Improve delivery of capital facilities in all settings by promoting the professional practice of Construction and Program Management in conjunction with the broadest possible application of recognized industry Best Practices. 25

Best Practice – Best Practitioner CII Dedicated to organizational transformation. Promotes a culture of high-quality execution in contractor (architect/engineer companies, construction companies) and owner organizations. CMAA Emphasis on individual excellence. Established Certified Construction Manager credential. Solid Standards of Practice. 26

CII – A Legacy of Industry Leadership Total Recordable Incidence Rate (TRIR) 44 Companies Reporting as of July 15, 2009

CII – A Legacy of Industry Leadership Days Away, Restricted, and Transfer (DART) Rate 44 Companies Reporting as of July 15, 2009

The Legacy Continues Best Practices – Best Practitioners

Thank you for your attention! Wayne A. Crew, P.E. Director Construction Industry Institute 3925 W. Braker Lane (R4500) Austin, TX (512)