1. Best Practice Integrated Construction Planning
International Advisory Council Meeting Rome, October 2009
Jim Earley, URS Corporation
Michael Buss, Intergraph

2. Introduction - Michael Buss
Agenda
Introduction - Michael Buss
Business case for an integrated construction solution
Benefits of an integrated construction solution
Intergraph solution
Industry Feedback – Jim Earley
Facilitated Discussions – Joe Morray
Introduction by Kelli of the speakers and a quick run through the agenda items.
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3. Business Case for an Integrated Construction Solution
Large projects frequently overrun CAPEX budgets on cost and time.
There is no single cause for overruns.
The Construction Owners Association of Alberta (COAA) has identified that the current planning approach contributes to cost overruns and that labor efficiency is low due to planning-related issues.
Various studies have been completed by several institutions focused on construction projects and issues related to delays in large CAPEX project delivery. Throughout these studies a few common points have been uncovered:
Larger and more complex projects are more likely to have cost and time overruns. Why? The more complex projects generally result in more people, disciplines and contractors required to execute the project. This results in a higher degree of complexity with regards to communications between these groups.
Although poor communications is a reason for these cost overruns, it is not the single issue that causes these problems.
Further to this, COAA, the Construction Owners Association of Alberta, one of the leading institutes in studying and applying work face planning principles, has stated that one of the leading causes of these overruns is directly related to construction planning principles employed today.
The pie chart shown is a breakdown of 24 hours in the life of a typical construction project according to the study. 33% of a day is spent on direct work. This is time on tools with actual work being performed advancing the project towards completion. Another 8 hours per day is spent on a variety of other tasks, such as travel to and from the site, meal times, and tool box talks. All necessary, but not directly advancing the project. The study also showed that 32% of a day, roughly eight hours, is spend “waiting”. Waiting for materials, guidance, waiting for equipment or people, waiting for clarification on inaccurate information – just waiting in general. This is an area of opportunity for improvement. An integrated construction solution can help reduce this area by brining the most accurate and up to date information into the field in a single environment to reduce this “waiting” time and increase the “direct work” time spent actually advancing the project.
The point being that no solution will fully eliminate the “waiting and idle time”, but a robust integrated construction solution will add significant value by reducing this area and increasing “direct work” advancing the project towards completion more accurately, economically and faster.
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Opportunity for Improvement
Source: COAA Workface Model, 2006
November 9, 2018

4. Business case for a integrated construction solution
Agenda
Business case for a integrated construction solution
Benefits of an integrated construction solution
Intergraph solution
Industry Feedback
Facilitated Discussions
Now that we have determined a need for an integrated construction solution, let’s see what benefits can be achieved from using a comprehensive solution specific for the construction industry.
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5. Benefits of an Integrated Construction Solution
Reduced Project Delivery Cost
Without SPC
With SPC
Budgeted TIC
USD 1,000 M
Total Engineering [10%]
USD 100 M
Total Procurement [60%]
USD 600 M
USD 600M
Field Construction [30%]
USD 300 M
USD M
Revised TIC [based on 12.5% Field Construction savings]
USD M
TIC Savings [Est]
USD 0
USD 37.5 M/3.75%
These various studies have indicated that a 20 to 30% savings in Field Construction can be gained through the use of an integrated construction solution utilizing work packaging principles. Work packaging is a method to divide larger areas of work into a more manageable and trackable set of instructions for a field crew to complete in a shift – roughly 1,000 to 2,000 man hours of work. This has proven to be an effective method where better planning improves performance in the field by increasing the field work productivity and reducing the “waiting and idle” time.
In this example we are showing the impact of improving field work productivity by only 12.5% on a sample $1B CAPEX project. This is roughly half of what work productivity gains can be accomplished according to the studies. The net result to the overall Total Installed Cost of a project, assuming all engineering and procurement costs remain equal, is a $37.5M savings on the overall total installed cost of a project JUST BY IMPROVING INFORMATION INTEGRATION AND HAVING A BETTER PLANNING TOOL SPECIFICALLY FOR CONSTRUCITON. Further to this is the owners gain In revenue by receiving a plant sooner and moving the plant from construction into operations allowing for revenue generation to commence sooner.
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6. Benefits of an Integrated Construction Solution
Who Benefits?
Project Managers / Executive: Integration with a 3D model allows for visual representation of project status in planning and completed construction phases.
Work Package Planners: Direct integration with source systems reduces time and improves accuracy
Materials Management Personnel: Greater visibility to forecast materials needs allowing for improved expediting and procurement efficiencies
Field Labor: Access to “live” information from all source systems to ensure field work is completed per best information available
IT: Single point solution for integration which is easier to manage and control
Virtually all parties involved receive a benefit from an integrated construction solution.
By integrating the work planning area with a 3D model the project managers / executive level can “see” in the model work as it is being planned and completed. This provides a platform for greater visibility and tracking of status for both the construction company and the owner.
Work Package Planners benefit through the direct integration from all required source systems. Keeping accurate updates of the schedule from a master schedule system [such as Primavera], access to “live” materials management information ensuring work package components required can be easily tracked and dynamically updated as materials are ordered and received greatly assists the planners to reduce and eliminate bottlenecks in the project before they become critical.
Materials Management personnel have much better visibility to what construction is being planned and to the specific time frame in which it is being planned. This enables them to more efficiently procure and expedite materials to reduce material related delays and reduce costs.
Field Labor benefits through an integrated construction planning tool by having access to work packages electronically enabling them to quickly receive the most accurate and up to date drawings and materials information available when they start the job. This significantly reduces field rework and provides valuable engineering information to the field sooner than with conventional means.
Lastly, IT has a single point system which is easier to manage and maintain leading to a reduction of overhead costs required to provide a successful IT platform in which to effectively execute a project.
An integrated construction solution is a benefit to virtually every department involved in a construction project and is an enabler to reducing the time and cost of a project, while increasing accuracy.
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7. Business case for a integrated construction solution
Agenda - Michael
Business case for a integrated construction solution
Benefits of an integrated construction solution
Intergraph solution
Industry Feedback
Facilitated Discussions
Now that we have determined a need for an integrated construction solution, let’s see what benefits can be achieved from using a comprehensive solution specific for the construction industry.
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8. Intergraph Solution
Evaluated products available in the market and elected to build a new solution on advanced technologies
Engaged with Premiere Partners to develop a solution based on global industry best practices
In an overall project lifecycle Intergraph has been an industry leader in supplying the tools to cover the “E”, the “P” and the “Owner / Operator” areas in the EPC and Owner / Operator areas of a project life cycle. We are now launching a product to cover the “C” allowing SmartPlant Enterprise to become the all encompassing solution provider to the Process, Power and Marine industries.
We initially started reviewing available construction solutions which were for sale in the market in After a thorough evaluation we determined the best approach was to create a new system incorporating of the most advanced technology on the market rather than build a solution on a dated platform.
To do this we engaged with some of the leading global construction companies to create a new solution specific to the construction industry. These partner companies led Intergraph in developing a solution that was created by the industry for the industry. Each of the companies invested time and effort from across the spectrum of disciplines required to develop a fully integrated construction solution. This included experts from engineering, materials, field foremen, project managers, executive level and even field labor personnel who would be users of the tool.
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9. Integrated Construction Planning
Engineering Schematics
3D Model
Workface Planning
Construction Status & Visualization
3D Model Filters
4D Animation
Materials Availability
Internationalization
Drag and Drop
Materials Management
SmartPlant Construction
SmartPlant Construction
Schedul e
Michael
One of the key things to bring out is that the majority of this work is being done today, but in a non-integrated environment. This causes delays and errors in communications. We are not changing what the industry does – we are just making it faster, easier and more accurate to do the work.
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Fabricated Piping
Fabricate d Steel
November 9, 2018 9

10. SmartPlant Construction In Action
Michael
I want to turn this back over to Jim Matteson for a more comments on the product we have developed.

11. Business case for a integrated construction solution
Agenda – Jim Early
Business case for a integrated construction solution
Benefits of an integrated construction solution
Intergraph solution
Industry Feedback - Jim Earley
Facilitated Discussions
Now that we have determined a need for an integrated construction solution, let’s see what benefits can be achieved from using a comprehensive solution specific for the construction industry.
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12. The URS-Intergraph Connection
Intergraph sought the input of construction users, one of which was the Washington Division of URS
URS embarked on our SmartPlant journey in June, 2006
Our input was focused on specific requirements for SPC to assure that URS would be successful in translating engineering work products into constructed projects characterized by:
Cost Effectiveness
Consistent and Dependable Quality
Schedule certainty

13. The Result: SmartPlant Construction (SPC)
URS sees not just a work-package planning application – incorporating the specific geography of the task – but a Construction Planning and Management tool.
“All of the disciplines employed on a project are tied together in an integrated manner from design through commissioning and start- up in one user friendly application”

14. The Value Proposition
Perhaps the biggest advantage that SPC provides is integration of data from all Functions for use in the right format (tabular or graphic) integrated with other data for making the right decisions.
SPC is built on top of SPF and thus has access to all data in SPF – uses the existing investment in SPF.
All SPC data are exposed to SPF functionality.
Integration with P3 schedule data is a good integration example… for viewing construction planning scenarios in a temporal form to make decisions and iteratively develop the construction plan(s).
This results in the tool being such a good planning platform.
Reflecting those decisions to the other functions (e.g. reservation of materials, earned value) without doing anything different…i.e. the knowledge sharing becomes a byproduct of what you already do.

15. How SPC was developed
Developed by Construction Professionals for Construction users
URS is one of several “Premier Partners” who had input to the development of SPC
URS representatives participated in determining the functionality required in SPC to the Intergraph team…and then tested that functionality
Intergraph has responded with a robust application that starts to support the project management needs of URS and our clients

16. Cornerstone Applications
URS has adopted many of Intergraph’s suite of SmartPlant products as Cornerstone Applications including the following:
P&ID
Instrumentation
Electrical (in progress) 3D
Materials
Foundation

17. Benefits of SPC to URS
Facilitates integration of construction planning with other Functions
Early scenario analysis & planning
Material Management better integrated with construction
Work Package coding into the engineering phase of the project
Tool planning and expenditures
Craft level requirements
Construction equipment scheduling
Construction Project Management

18. Project Integration
Better coordination between the various functions involved in our projects
Engineering deliverables produced on time for support of purchasing and construction
Scheduling of work to support efficient utilization of resources
Timely delivery of materials to the project and ultimately to the workface to assure minimal craft downtime and increased “wrench time”
Facilitation of change impact analysis

19. Construction Management Advantages
Superintendents
More time in the field supervising trades
Less time in the office obtaining information required to perform construction tasks
SPC’s tie to SPM allows easier and more accurate material requisitioning and reservations
Aids in schedule development and adherence to project budgets
Enhanced visualization of construction work package sequencing and completion

20. Construction Management Advantages - Continued
Field Engineers
Will allow Field Engineers to report on installed quantities using a point and click function
Field Engineers are able to spend more time at the workface solving problems and answering trade questions on a “real-time” basis
Quality should be increased due to the ability of Field Engineers to assure adherence to design specifications instead of pushing paper
Ability to view and print model “sketches” and drawing “blow ups” to facilitate understanding/ communication as needed.

21. Construction Management Advantages - Continued
Project Controls
API under development will allow use of URS and other EPC firms’ earned value measurement system resulting in:
More accurate quantity reporting
Better EAC forecasting
Minimal “lag” in cost reports to accounting systems and reporting to construction management
Assures better adherence to schedules using SPC work packaging

22. URS Roll-out
URS intends to implement SmartPlant Construction on a major Domestic Oil and Gas Project in 2010
Will utilize work package planning feature
3-D Modeling for constructability review program
Project will use SmartPlant Materials in conjunction with SPC work package feature
Quantity claiming feature may be ready to use in conjunction with URS earned value measurement tool “FMS”

23. Key Opportunities Improved methods for schedule linking
Incorporate PDS as an engineering authoring tool
Incorporate engineering package development workflow to integrate with construction planning and progress/readiness of engineering packages for construction
Early thoughts include developing the breakdown of engineering packages, before engineering is started and completed and use these as basis for construction planning and management throughout – thereby better using construction needs to drive engineering.
Extend applicability to more broadly apply to projects not using SmartPlant tools – i.e. that the value proposition is just as compelling for these other projects. This will broaden the application and accelerate the maturity of the platform.
Transform quantity reporting basis for earned value, trending and forecasting and change management.
It’s a new tool – Continued user feedback and mutual cooperation will result in SPC becoming a key tool for URS in future project execution.

24. Business case for a integrated construction solution
Agenda Joe
Business case for a integrated construction solution
Benefits of an integrated construction solution
Intergraph solution
Industry Feedback
Facilitated Discussion - Joe Morray
Now that we have determined a need for an integrated construction solution, let’s see what benefits can be achieved from using a comprehensive solution specific for the construction industry.
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25. Do you feel Intergraph is addressing the right issues.
Question Joe M.
E<>C Communication. What are u experiencing. How we can solve this
Do you feel Intergraph is addressing the right issues.
Intergraph has only contacts to E. What can we do to get C more involved…
How SPC can cross the chasm.
Now that we have determined a need for an integrated construction solution, let’s see what benefits can be achieved from using a comprehensive solution specific for the construction industry.
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