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Burger Consulting Group Presentation To Introduction Evolution of contractor risk and technology Changes in construction Systems and technology Implementation Organizational considerations Questions Sources of Risk Claims Subcontractor failure Performance Cost overruns

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Presentation Transcript


Burger Consulting Group

Presentation

To


Introduction

  • Evolution of contractor risk and technology

  • Changes in construction

  • Systems and technology

  • Implementation

  • Organizational considerations

  • Questions


Sources of Risk

  • Claims

  • Subcontractor failure

  • Performance

  • Cost overruns

  • Change management

  • Asset management

  • Resources


Contractors Traditional Use of Information Systems

  • Accounting systems, only

  • Silo systems

  • Input, process, output

  • Did not incorporate much workflow or storage

  • Few automated controls

  • Find the data rather than be alerted to the situation


Evolution of Technology in the Construction Office

  • Non-integrated systems to integrated

  • Incorporated workflow and document management

  • More data stored

  • Better analysis tools available

  • Alerts and event triggers

  • Dashboards give greater visibility

  • At times, purchased too much or not well

  • Overestimating the organization


Changes in Construction That Have Added Risk

  • Contracts

  • Subcontractor performance

  • Incomplete drawings

  • Compressed schedules

  • More complex construction

  • Fluctuation in costs

  • Dependence on systems

  • Higher volumes with same resources


Systems and the Reduction of Risk


Job Cost

  • Visibility of cost to budget

  • Timely forecasting

  • Change order status

  • Productivity

  • Units of production

  • Performance

    • Job type

    • Superintendents

    • Project managers


Project Management

  • Change order management

    • Earlier

    • Greater visibility

  • RFI audit trail

  • Collaboration provides better audit trail

  • Standardization


Billing

  • Cost-based billing tied to job cost

  • Contract management tied to change management

  • Invoice formatting capability

  • Unit billing tied to engineer’s quantities


Subcontract Management

  • Administrative compliance

    • Connected to AP

  • Change order management

  • Billings and commitment

  • Prequalification


Purchasing

  • Commitments against budget

  • Terms and conditions

  • Receiving function

  • Agreed-to price

  • Control over material buying

  • Movement to debit cards


Cash Disbursements

  • Positive Pay

  • Electronic signature

  • Tie-in with Subcontracts and POs

  • EFT


Human Resources

  • Safety administration

  • Training

  • Asset assignment

  • EEO compliance

  • Leave administration


Scheduling

  • Sequencing

  • Cost of delay

  • Claim documentation

  • 4D, clash detection


Equipment Management

  • Equipment cost tracking

  • Location tracking

    • Electronic fence (GPS)

  • Preventive maintenance

  • Outsourcing maintenance

  • Proper charging of equipment

  • Utilization reporting

  • Comparison of rental versus owned equipment


Inventory

  • Fuel tracking

  • Scaffolding

  • Forms

  • Small tools

  • Equipment parts

  • Bar coding/RFID


Field Data Collection

  • Labor and equipment reporting daily

  • Reporting of units complete

  • Comparison of units paid versus units produced

  • Recording of material received

  • Reporting back of productivity

  • Safety inspection


Document Management

  • Storage and retrieval of documents and files

  • Search on key words

  • Discovery

  • Need document retention policy


Collaboration

  • Speedier communication

  • One platform for overall project communication

  • Better audit trail

  • Requires participation from subcontractors and architects


Infrastructure

  • Performance from the field

  • Adequate backup, redundancy

  • Disaster recovery plan, tested


Estimating/Bidding

  • Database of costs

  • No spreadsheet errors

  • Use of assemblies and crews

  • Easier to audit

  • Automated transfer of quantities


Implementation/Use

  • Be clear on expectations

  • Plenty of testing

  • Training before—during—and after

  • Be judicious about report writing

  • Little to no custom

  • Adequate infrastructure


Organizational Considerations

  • It’s use not ownership

  • Fear of systems is real for some

  • Change is difficult for some

  • Executive sponsorship

  • Super-users


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