Achieve competitive advantage through innovative process

management With

Agenda

IntroductionIndustry SuccessLive DemoQ&A

Janet Poses, Aconex Derek Hoffine, Hensel Phelps Hannah Hosch, AconexAll

• Project complexity • Contracting models• Risk profiles• Regulatory requirements• Importance of repeat business

Trends for contractors

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Construction industry: Clear need for actionWide gap in productivity improvement in manufacturing vs construction in the last decades

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Labor productivity index1

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Manufacturing

2.8x

1. P. Teichholz, "Labor-Productivity Declines in the Construction Industry: Causes and Remedies (Another Look)", AECbytes Viewpoint #67, March 14, 2013

1/3 automation2/3 lean approach

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On average > 50% of activities are non-value adding activities

On-site processes

Products Organization

Stocks

Space

Movement

Rework

Waiting

Transport

Waste on construction sites1

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Waste: 56.5%

1. Scope: time series study, n = 29

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Waste should be identified in … Proportion of waste in processes

1 2 3

4 5 6

Schedule Deviations

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Increased system takt

Significant improvements possible with Lean Total cost of ownership (TCO) with 12–30% savings potential

100

90

80

0

100

TCO savingsService business

TCO Standardization and

modularization

Construction site

management

Total EPC savings

Procurement excellence

Process-based end-to-

end management

Savings in %of total cost1

5–15%

2–3%2–4%

1–3%2–5%

10–25% 12–30%

6–8% 4–7%10–20%

Time savings in % oftotal project duration2

1. Calculation of savings based on the following cost shares: 10–15% planning, 50–60% offer processing incl. purchasing, 25–40% project execution2. Construction phase corresponds to 50% time shareNote: Excluding levers "acquisition," "risk management," and "Lean organization and enablement," since they are not connected with direct savings; prerequisitesSource: VDMA study on construction site management 2009; BCG project experience

Optimized service

Economies of scale

Efficient processes Product

optimization

Reduced rework

20–35%Learning effectsIncreased efficiency

Process challenges- Many organizations- Non standard processes- Geographically dispersed teams- A ton of information- Project complexity- Differing client requirements- Siloed systems

Solutions- Process optimization- Standardized automated

processes- Centralized management - Project-wide tools and systems- Flexible tools - Secure accessible platform

Process challenges and solutions

How to standardize in the dynamic construction environmentMulti-tiered standardization

Universal

Project specificProject typeUniversal

Derek HoffineOperations Manager14+ years with Hensel Phelps

“Built to innovate”

Hensel Phelps

– Hospitality– Healthcare – Aviation– Federal– Entertainment

– Correctional– Aerospace– Advanced

technology– Education– Public, etc.

• Founded in 1937 – Greeley, CO

– 8 District Offices Across U.S.• US National General

Contractor• Annual volume over $3 Billion• Employee-owned• Market Sectors:

Company culture

• People: Assign qualified, talented personnel and empower them to make decisions.

• Process: Provide our People with proven transitional and facility management processes and operational procedures to accomplish their tasks and perform their jobs.

• Partnership: Work collaboratively in a partnered approach with existing vendors, suppliers, occupants, clients, and other resources without impacting operations.

• Technology: “We combine innovative technologies with time-tested processes to keep our projects running smoothly through every phase.” 

Overcoming challenges

• Different sectors• Different client requirements (i.e. security)• Project specific processes• Access to information between platforms• Access or availability of end user(s) to partner

Process management at Hensel Phelps

• Company-wide tools• Continuous improvement• Best results for clients• Standardize when possible• Configure when needed

Benjamin P. Grogan and Jerry L. Dove Federal Building• $160 Million Design-Build project for

the GSA.• 380,000 GSF, LEED Platinum Core &

Shell, LEED Gold Commercial Interiors • Tenant: The Federal Bureau of

Investigation (consolidation of South Florida forces)

• Custom design and materials• 902 calendar days to design,

construct, and turn over facility to GSA, FBI, and O&M team.

Handover on a federal government building

Challenges

– O&M team not established– High turnover ratio – Security requirements/clearance– Meeting GSA PBS 100

requirements– Meeting Program of

Requirements (POR)

Solutions

– Handover vehicle that meets client and tenant security requirements

– Simple navigation tool for O&M personnel with ease of use

– Secure vehicle for SBU “smart” documents

Manual handover process

• Design in and build space for physical hand over documents (plans, as-builts, O&M manuals, etc.…)

• Redundant training of personnel • Access to information in a timely

manner • Construction personnel

frequently troubleshooting for user one year after completion of project

With handover tool

• O&M Staff well trained and prepared with the correct tools (i.e. Smart Manuals)

• Efficient and thorough troubleshooting of equipment

• Reduction in non-valid work orders submitted during warranty period

• Effective partnering goals with user and O&M staff at 11-month warranty review

• Summation of final as-builts, approved product literature, etc.

• Enhanced readable documents and training video’s housed in one vehicle

Process management best practices/lessons learned• Understand your processes and have a way

to measure process performance.• Get everyone on the project team on the

same page and system.• Look beyond the construction phase to

realize full ROI.• Adopt technology solutions that are

adaptable to any processes utilized or required by the project or client.

• Operations is a measure of construction success

– Improved efficiency within the first 6 months of warranty

– Mandatory 11-month warranty walk

Why Hensel Phelps chose Aconex on the Benjamin P. Grogan and Jerry L. Dove Federal Building• Met client requirements

– Implementation of SBU documents – GSA Facility Management Guidelines

• Secure Collaboration System– Meets GSA Firewall Data Workflow

• Project-wide access by all team members• Easy to deploy• Intuitive interface for ongoing maintenance• Collaborative with multiple system interfaces

Hensel Phelps streamlines handover processBenjamin P. Grogan & Jerry L. Dove Federal Building

Challenges Aconex Solution ResultsGSA’s security protocols required Compliance & confidentiality

Physical handover CDs or binders Misplaced handover

information

Special software or training needed for contractor Accessibility =

difficult

Streamlined assemblyDocuments, designs, decisions, and reviews all in one place

Secure handoverAsset info + O&M can’t be lost, 100% accurate, eliminating risk of rework

Instant accessEasily access O&M info from any device = client satisfaction

$30%Time saved in compiling handover materials

Compliance with GSA guidelines and security

0 support calls first 6 months = happy clients

How BIM can accelerate project-wide review cyclesUsing Aconex to your competitive advantage

Hannah Hosch Client Services Manager

Field Inspections

Connecting teams project-wide

OperateConstructDesignBidPlan

Document Control

RFIs & Change Orders

Bidding & Tenders

Workflows &

Approvals

BIMCollaboration

Submittals Handover to Operations

CostManagement

Dashboards & Reporting

In projects executed

on the platform$1+trillion

Documents managed

with complete auditability

1.2+billion

User organizations

Interfacing efficiently

60+thousand

Connected Departments

Design

Cost

Schedule

Safety

Contracts

Project performance depends on connected teams

Connected Field & Office

Subcontractors

Connected Organizations

Owner

General Contractor

Many-CompanyCollaboration

Complex information

exchange between many organizations

Field focus

Optimise forfield specific

processes

Data moving through the

lifecycle

Connected data for better lifecycle management

Insights & Early Warnings

Help users understand where they can do better

and what to focus on

Process driven

Facilitating key processes, including

cost & paymentswith focus on user

experience

Improve the lives of our users in Construction & Engineering

Collaborationbetween many

companies

Workflow & processdriven

Fieldfocus

Insights & early warnings “Digital Twin”

Tools for your job

The audit trail for the industry

Industry-wide network

What Aconex is delivering

Project management challenges

25

53% said lack of timely performance data

drove significant overruns

Captures all project process?

Is information credible?

Right level?

Real-time, reliable?

Project S-curve Measuring project performance across cost &

schedule

Insights at every level

26

Process

Tasks

Project

Portfolio

Connected cost management

Subcontractor RFI with cost

impact

GC raises potential

change order

Forecast includes early

warning

Approve contract

change order

RFI captures

cost impact details

Change order status

Cost impact amount

Point-and-click report

builder

Approved & pending contract changes

captured

A single view across every change order status & the ability

to take action

Manage upstream & downstream contracts, changes, & pay apps

Due dates, status, and days late for each review cycle

Connected submittals

Summary of overall progress

Drill into package: enforce

contractual turnaround timesTrack submission & review status

for each package document

Report on workflow stages

Connected organization

sWho is

accountable?

What’s in your court? What’s

outstanding?When is it due?

What’s the status?

Competitive advantage through innovative process management

OverviewRFIsSubmittalsInsights and reportingHandover

We presented a live Aconex demo. Please get your demo please visit aconex.com/Demo.

$5M in labor savings over 4 years

75% reduction in payment processing time to contractors

75% reduction in design review cycle times

80% reduction in change request cycles times

C$798K projected savings from doc control costs over next 5 years

50% Decreases in RFI turnaround times

50% decrease in document processing times

30%Reduction in time to import handover information

C$4M Savings from printing costs

Leading Organizations Are Seeing The Results Of DigitizationSignificant efficiency and productivity gains from automating key project processes

Delivering your projects with confidence

Client-centered innovation• Product roadmap shaped with industry experience • 200+ strong product development team

Proven engagement model• Global team of industry experts that understand your business• Consistent approach and quality with rapid deployment and scale

The leader in online collaboration• Purpose-built solutions• Proven success delivering projects and programs around the world

Nine of the top 10 global EPCs

23 of ENR’s top 25 global design firms

Every Fortune 500 construction and engineering firm

More successful projects delivered than any other platform, industry-wide

Our thanks to Hensel Phelps

Learn more at aconex.com/

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