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  1. Burger Consulting Group Presentation To

  2. Introduction • Evolution of contractor risk and technology • Changes in construction • Systems and technology • Implementation • Organizational considerations • Questions

  3. Sources of Risk • Claims • Subcontractor failure • Performance • Cost overruns • Change management • Asset management • Resources

  4. 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

  5. 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

  6. 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

  7. Systems and the Reduction of Risk

  8. Job Cost • Visibility of cost to budget • Timely forecasting • Change order status • Productivity • Units of production • Performance • Job type • Superintendents • Project managers

  9. Project Management • Change order management • Earlier • Greater visibility • RFI audit trail • Collaboration provides better audit trail • Standardization

  10. Billing • Cost-based billing tied to job cost • Contract management tied to change management • Invoice formatting capability • Unit billing tied to engineer’s quantities

  11. Subcontract Management • Administrative compliance • Connected to AP • Change order management • Billings and commitment • Prequalification

  12. Purchasing • Commitments against budget • Terms and conditions • Receiving function • Agreed-to price • Control over material buying • Movement to debit cards

  13. Cash Disbursements • Positive Pay • Electronic signature • Tie-in with Subcontracts and POs • EFT

  14. Human Resources • Safety administration • Training • Asset assignment • EEO compliance • Leave administration

  15. Scheduling • Sequencing • Cost of delay • Claim documentation • 4D, clash detection

  16. 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

  17. Inventory • Fuel tracking • Scaffolding • Forms • Small tools • Equipment parts • Bar coding/RFID

  18. 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

  19. Document Management • Storage and retrieval of documents and files • Search on key words • Discovery • Need document retention policy

  20. Collaboration • Speedier communication • One platform for overall project communication • Better audit trail • Requires participation from subcontractors and architects

  21. Infrastructure • Performance from the field • Adequate backup, redundancy • Disaster recovery plan, tested

  22. Estimating/Bidding • Database of costs • No spreadsheet errors • Use of assemblies and crews • Easier to audit • Automated transfer of quantities

  23. 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

  24. Organizational Considerations • It’s use not ownership • Fear of systems is real for some • Change is difficult for some • Executive sponsorship • Super-users