Third-Party Project Optimization
We have a big efficiency problem in the AEC industry. The problem is so big that project overruns have become widely accepted and even considered the status quo.
20%
of construction projects go over schedule
80%
of construction projects go over budget
Source: Imagine construction's digital future, McKinsey & Company, June 2016
And it's mainly the stakeholders that pay the price.
Culprits of Project Overrun
Poor Planning
Poor planning leads to an unclear RFP. And an unclear RFP leads to RFIs and inaccurate bids.
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Poor planning also leads to unrealistic budget and schedule expectations, leading to costly change orders and legal disputes.
#1
cause of project failure
Source: 4 Reasons Why Construction Projects Fail: Builder Storm
Design Errors
Design errors happen all the time. Most of them are caught at the QA/QC stage but some costly ones do get through every now and then.
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Human error and working with inaccurate site information such as as-builts are major causes of design error.
"Contractors who provide quality as-constructed records are in the minority."
CM eJournal: As-built Problems & Proposed Solutions
"When as-builts or record drawings are found, they are of widely varying levels of quality, completeness, and reliability."
ES Engineering Systems: Are Your As-built Markups Appropriately Marked-up?
"30% of data is lost during an average construction project leaving as-builts incomplete."
Autodesk: 6 Next Level Strategies to Improve As-builts
35%
of construction rework is caused by design error
Source: The Impact of Rework on Construction & Some Practical Remedies, Navigant Construction Forum
Change Orders
Some construction companies make a living on bidding low and making their money on change orders. We've all worked with these types of companies before and it can be very frustrating.
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Not all change orders are nefarious however. But reducing these could make a significant impact on the bottom line.
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There are other costs to change orders. The indirect costs such as extra admin and engineering work, and the effects of work stoppages due to change order disputes.
35%
of projects experience one major change order
Source: What is a construction change order?: Autodesk Digital Builder Blog, February, 2020
Communication Issues
Poor communication can take several forms such as:
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Delay in the flow of information;
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Information sent to the wrong person;
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Unclear communication leading to confusion or misinterpretation; and
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Outdated or incorrect information sent.
33%
of project failure is caused by poor communication
Source: PMI Project Management Institute 2017 Survey
Poor Progress Monitoring
Properly monitoring the progress of a construction project is not only good to keep projects on schedule, it's also a good way to catch deviations or errors before they become major problems.
10%
of construction cost is due to rework
Source: The Impact on Rework in Construction & Some Practical Remedies: Navigant Construction Forum
Legal Disputes
Disputes can impact project costs, schedule, and quality.
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Legal disputes will always be part of the AEC industry. The challenge is to keep them as infrequent as possible.
35%
of Contractors say underpricing and inadequate information at tender is a common dispute cause
Source: Global Survey on International Construction Arbitration Highlights Opportunities for Efficiency: The Canadian Bar Association, January, 2021
So, what can we do to mitigate these problems?
We can improve the quality of the information we work with and increase the efficiency of our workflows.
Efficiency
Quality
Cost
We do this by modernizing the way we collect, share, and work with site information, leveraging the best tools technology has to offer.
Two of the fastest growing technologies used to improve construction project efficiency are cloud-based collaboration tools and laser scanning.
#1
Laser Scanning
trend that will shape construction & capital projects
#3
Digital Collaboration
trend that will shape construction & capital projects
Source: Imagine Construction's Digital Future, McKinsey & Company, June 2016
Now, how do we leverage this technology to increase our chances of success?
With Third-Party Project Optimization. Our 5 step system that employs laser scanning and Cintoo Cloud (Digital Collaboration) throughout the different stages of a project in order to improve its overall efficiency from the planning stage to the as-built stage.
Step 1: Planning and Preparation
Before RFPs are sent out
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We capture the project area using laser scanning.
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A project is created in Cintoo Cloud. The project, which is accessible through a web browser, is then shared with you. This can be a great collaboration tool to help plan the construction project.
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A read-only link to the project is then created to allow for quick and easy sharing with people outside the organization. The link can be password protected and include an expiry date.
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This link can be sent to competing engineering firms during the bidding process.
What this does
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Allows you to better visualize the project area while planning the work. This ensures everybody is on the same page.
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Reduces the need for bidders to visit the site in person. Allows them to visit the site virtually and take measurements.
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Can tie-back to RFP to reduce misunderstandings.
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Reduces RFIs.
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Allows for more accurate bids as the whole design team can now visit the site virtually.
A solid plan sets you up for a solid start.
Step 2: A Good Start
Once the project has been awarded
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We deliver an Autodesk compatible point cloud file to the winning firm and project owner.
What this does
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Ensures Engineers have the best possible information to work with by reducing human error. This will lead to less construction rework as drawings will have millimeter accuracy.
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Gives Owner an exact replica of the site before construction begins to store in the archives.
2. The engineering firm is invited to join the full read / write Cintoo project.
What this does
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Allows for better collaboration. The firm will be able to flag issues and add notes, photos, and PDFs directly to the scan data.
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Reduces trips to site.
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Allows people working from remote offices to work more efficiently.
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Great for design meetings between firm and Owner.
A bad start requires you to put in extra work and resources to get back on track. Having the best possible information to start a project will put you in a winning position.
Step 3: Context is King
Once design is complete
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The read-only Cintoo Cloud project link created in Step 1 is included in the RFP package to the bidding Contractors.
What this does
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Reduces the amount of bidders on site.
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Gives more clarity which allows for more accurate bids.
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Allows Contractors to get familiar with the site before they arrive.
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Reduces the numberof Contractors who make their living on bidding low and going after change orders.
Quality information leads to clarity. Clarity improves a team's ability to execute.
Step 4: Monitoring
During construction
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We scan the project area at important milestones.
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We add scan data to Cintoo Cloud where Engineers and Project Owner can do scan to scan comparisons and scan to drawing comparisons.
What this does
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Records exactly where buried services are.
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Records where items hidden in walls are.
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Reduces rework by capturing deviations and clashes before they become a big problem.
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Allows Engineers and Project Owners to virtually visit the site during construction.
Monitor and adjust as you go as it's better to catch problems early. Good communication is crucial at this stage.
Step 5: The Strong Finish
Post construction
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We scan the finished project.
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We review Contractor as-builts on site as a third-party reviewer.
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We deliver detailed third-party as-builts via Bluebeam PDF file to engineering firm with embedded photographic proof of changes.
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We deliver point cloud to engineering firm and Project Owner.
What this does
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Keeps Contractors honest.
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Creates the best possible as-builts.
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Gives the next project a heads start with having accurate as-builts and a scan of the site.
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Laser scan data can be used to build 3D models when the industry eventually moves from 2D to 3D.
Finishing strong is important for a project to succeed. This is not the time to let your foot on the gas.
The difference between winning and losing is the amount of preparation you put in along with having a clear goal and the ability to quickly adjust to unforeseen circumstances.
How this improves six major causes of project overruns
Poor Planning:
Having virtual access to your project site in the planning stage allows all stakeholders to review the site as a group to make better decisions.
Design Errors:
Using laser scanning for design will drastically reduce chances for human error. It will also allow the design team to work with the best possible information. This is a huge upgrade to using as-builts which are prone to errors and rarely updated.
Change Orders:
Fewer design errors equals fewer change orders. And having virtual access to the site will reduce bids from shady Contractors.
Communication
Issues:
Using cloud-based collaboration tools is a good way to improve communication between all stakeholders. It is also a great way to make quicker decisions during meetings and make sure everybody is on the same page.
Poor Progress
Monitoring:
Continuously scanning the project will keep everyone up to date on site conditions. It will also catch deviations and clashes before they become costly problems.
Legal Disputes:
Fewer change orders will lead to fewer disputes. But if disputes do arise, you now have perfect snapshots documenting the entire construction process to use as evidence.
Bonus
Using this 5 step process will also improve the safety of your site and reduce your carbon footprint.
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Having less people on site will reduce the potential for injuries.
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Having less people travel to site will reduce the potential for accidents and reduce greenhouse gas emissions.
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Keeping workers out of hazardous locations is a great way to keep them out of harm's way.