1. Changes are Occurring Evolutionary or Disruptive? Pat Kiley Kiley Advisors LLC March 26, 2015

2. Competitive Bid Competitive Sealed Proposal (CSP) Construction Manager at Risk (CM@R) Construction Manager as Agent (CM-A) Program Managers Design Build Design Assist Integrated Project Delivery (IPD) Public Private Partnerships (P3) Contracts have evolved to support each of these Delivery Systems Continue to Evolve

3. Accounting and Estimating Plan Rooms and Bidding Systems Project Controls and Project Management Mobile Devices Building Information Modeling (BIM) Beyond BIM – All Data from All Parties – Disruptive? Project Processes are Evolving into Cultures Too Safety Standards, Partnering and Lean Technology Evolves – Can it Disrupt?

4. A Few Facts At this time, skilled craft workers are now retiring at a ratio of about 4-1 versus new entrants. Most of the craft training programs have disappeared over the last 30 years – both for union and open shop contractors. In that 30 year period, the industry in Texas has relied on immigrant labor, many here illegally, and paid in violation of US Labor Laws. The Gulf Coast Area Industrial Projects indicate they are 65% short today of the craft workers they will need by the end of 2017! The Elephant in the Room – Craft Worker Shortage

5. Delayed Projects and Extended Schedules Much Greater Use of Overtime and Per Diem Pay Much Greater Use of Pre-Fabrication The Growing Use of Modularization Can This Shortage Lead to a Disruptive Solution? A Few Current Manifestations