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Don Tishman's Real Estate Development and Investing Solutions

Don Tishman has 40+ years experience as a real estate developer and will answer your questions about real estate development and investment

Wednesday, January 6, 2010

Drag building design into the 21st century?

In most every industry before a new product is built, a computer model is created. The new product must pass numerous computer generated tests before the product will be actually produced. Except in the design and construction of buildings. This explains why a recent statistics study shows that construction alone, out of all non-farm industries, as decreasing in productivity since 1964, while all other non-farm industries have increased productivity by over 200% during the same period. Can you imagin a new car or airplane being built before being computer tested?

The construction industry developed “fast track” building permits( starting construction before all the drawings are completed). This was get the buildings in service quicker. Many of these buildings were a financial disaster.

How can we drag the design and construction of buildings from the 19th century to the 21st century?

The process of design, bid, and build is fraught with inconsistencies, lack of available knowledge, and constant confrontations.

A new process called Integrated Project Delivery(IPD) is being developed.  The demand for more effective processes that result in better, faster, less costly and less adversarial construction projects are driving significant and rapid change in the construction industry. Envision a new world where  facilities managers, end users, contractors and suppliers are all involved at the start of the design process … processes are outcome-driven and decisions are not made solely on a first cost basis.

The great expectations of Computer Aided Design(CAD) was that it would solve these same problems.  This never happened. But today a new process in starting to solve these problems. Building Information Modeling (BIM) is an emerging approach to the design, analysis, and documentation of buildings. At its core, BIM is about the management of information throughout the entire life cycle of the building from early conceptual design through construction and into facility management. By information I mean all the inputs that go into a building design: number of doors and windows, cost of materials, the size of the heating and cooling equipment. the total energy footprint of the building, and everything else.  This information is presented in a digital 3D mode that is shared across disciplines, and serve as a centralized design management tool. Working in a model based framework guarantees that a change in one view will make changes in all other views of the model. If you remove a door from your model, it simultaneously is removed from all views and your door schedule is updated. Three dimensional design visualization improves understanding of the building and its spaces.

In the 15th century, drawings were an idea of what the building would look like. The architect was always also the builder. So the drawings were for the sponsor’s eyes to communicate the architects visions. I remember an 1960′s  article in Progressive Architect warning architects that “construction managers” were taking architectural work from the master builder, the architect. The architectural industry ignored this warning. The building process became what it is today.  An Economist article from 2000 identifies 30% waste in the US construction industry; a NIST study from 2004 targets lack of AEC software interoperability as costing the industry $15.8B annually.

Each new buildings has three restraints from the start:

1. The business expectations of the owner.

2. Existing building codes and zoning

3. The budget.

The longer it takes to make decisions concerning these three, the more expensive the process becomes.

Most developers begin the process with the architect and contractor. There is no great incentive for the contractor to invest heavily in this process. The early drawings do not have sufficient detail for a careful estimate. By the time this detail is available, the owner has made a major investment in the process. They are past the point of no return. If the project is over budget, in come value engineering. All this is is less for less. The original concept is no longer controlling. Will this enfeebled substitute have the ability to be marketed at the same price as the originally conceived building?

A sidelight, in considering the sub-prime market, remember 90% of houses built in the US do not use architects.

What arer the benefits of this computer 3D modeling of a proposed building?

The benefit to Owners—Early and open sharing of project knowledge streamlines project communications and allows owners to effectively balance project options to meet their business enterprise goals. Integrated delivery strengthens the project team’s understanding of the owner’s desired outcomes, thus improving the team’s ability to control costs and manage the budget, all of which increase the likelihood that project goals, including schedule, life cycle costs, quality and sustainability, will be achieved.

The benefit to Constructors—

The integrated delivery process allows constructors to contribute their expertise in construction techniques early in the design process resulting in improved project quality and financial performance during the construction phase. The constructor’s participation during the design phase provides the opportunity for strong pre-construction planning, more timely and informed understanding of the design, anticipating and resolving design-related issues, visualizing construction sequencing prior to construction start, and improving cost control and budget management, all of which increase the likelihood that project goals, including schedule, life cycle costs, quality and sustainability, will be achieved. Architects and contractors look at buildings differently. The architect pictures the finished product. The contractor looks at all the parts behind the finshed product.

Through early collaboration and the use of Building Information Modeling (BIM) technology, a more integrated, interactive, virtual approach to building design, construction and operation is emerging. To embrace, master and influence this emerging method of project delivery and to seize the new business and cultural opportunities it offers to the industry, the American Institute of Architects (AIA) is working with other construction industry stakeholders in  related activities to:

1. Collaborate with industry leaders to facilitate the dialogue, share knowledge, and accelerate the rate of change for all those seeking to improve the industry’s current practices by utilizing integrated approaches to the design, construction, and operation processes;

2. Communicate the benefits of collaborative approaches to public and private sector clients, and promote changes to the design and construction procurement process to allow early information sharing;

3. Promote the benefits of developing a virtual model of a project using available technologies, built with interaction and input from an integrated and collaborative team of project stakeholders – owners, designers, consultants, constructors, subcontractors and suppliers;

4. Develop and promote the integration of collaboration techniques and technology into education curricula for architects and architectural students to enhance their design and team collaborative skills;

5. Engage the legal profession and the insurance industry in preparing contracts that support the integration of collaborative models and technology into the design and build industry and offering insurance coverages responsive to IPD; and,

6. Promote documentation of the measurable contributions resulting from implemented integrated project delivery approaches to stakeholders and promote the value and achievements of increased use of integrated project delivery methods.

Designers—

The integrated delivery process allows the designer to benefit from the early contribution of constructors’ expertise during the design phase, such as accurate budget estimates to inform design decisions and the pre-construction resolution of design-related issues resulting in improved project quality and financial performance. The IPD process increases the level of effort during early design phases, resulting in reduced documentation time, and improved cost control and budget management, all of which increase the likelihood that project goals, including schedule, life cycle costs, quality and sustainability, will be achieved.

The ultimate benefits of BIM are still emerging in the market and will radically change the way buildings are designed and built. The focus is shifting from traditional 2D abstractions to on demand simulations of building performance, usage, and cost. This is no longer a futuristic concept

The AIA offers  an excellent Guide to Integrated Project Delivery @ aia.org.

more later

posted by Don Tishman at 11:34 pm  

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