1. Containing Construction Costs FCUFS March 17, 2016 Happy St. Patrick’s Day Presented by Mike McCormick, AIA Associate Vice President Capital Planning & Development

2. UNDERSTANDING THE COSTS What we Build ~60% How we Build ~40% *average cost over the last five years

3. DRIVING COSTS DOWN *average cost over the last five years

4. CURRENT EFFORTS UNDERWAY What we Build ~60% Project governance Clear goal setting Benchmarking Business plan (pro forma) Portfolio view Shell / fitout approach Building standards

5. What we Build ~60% How we Build ~40% Project governance Delivery method In-house fees Permitting fees Project reporting Collaboration = Culture Change Project governance Goal setting Benchmarking Business plan (pro forma) Portfolio perspective Shell / fitout approach Building standards Project agreement / process CURRENT EFFORTS UNDERWAY

6. GOAL IS TO REDUCE CAPITAL COSTS *target cost without escalation

7. Next Steps Strategic Capital Planning / Campus Planning – portfolio perspective Project governance setup for all projects New pre-design documentation ₋ Goals and objectives- Business plan ₋ Benchmarking- Sources & uses table Revamp Building Standards – more prescriptive & process oriented Revise internal policies & procedures – ensure consistency Training for PM’s (team building, collaborative delivery methods, etc.) Revamp Contracts for collaboration (focus on progressive D/B) New real-time project reporting (PM Web implementation) Shift internal design fees from hourly to state fees