Construction Management for Owners
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1 Construction Management for Owners General, Critical, and Future Trends 19 February 2010 Larry J. Smith, P.E. CCM, F.SAME
2 Agenda Change General Trends Four Critical Trends Future Trends Professional Construction Manager Recap It s all about Risk Recommendations
3 Change Change is inevitable. Change for the better is a full-time job. Adlai E. Stevenson Change is inevitable-except except from a vending machine. Robert C. Gallagher Change is our friend without t change we would have no friends at all. CPT Pat Healy The world hates change, yet it is the only thing that has brought progress. Charles F. Kettering
4 ASCE Infrastructure Report Card 2006 ASCE estimated $1.6 trillion needed over a five year period ASCE estimates $2.2 trillion is needed over a five year period.
5 Workload The U.S. Army Corps of Engineers' Military Programs mission area is facing its largest workload since World War II. Estimated $40 billion. $10.3 billion Civil Works Program. ARRA of 2009 construction: $2 billion Total funding for the civil construction program is $1.805 billion (2010 PB).
6 Annual Construction in the U.S. USACE - ~ $50 billion (Military & Civil) Industry - Construction at $964.0 billion Annual Rate. U.S. Census Bureau of the Department of Commerce estimate. Private Construction - $649.2 billion. Public Construction ti - $314.9 billion. USACE accounts for about 5% of the Annual Construction spending in the U.S.
7 Trends in Construction Management Changing Project Delivery Methods Our (USACE) goal is to provide projects at a 15 percent cost savings while reducing construction time by 30 percent. Changing Construction Management Strategies of USACE. Recruitment Staffing Talent Shortage over 2,000 critical vacancies in USACE Construction.
8 Project Delivery Methods by Col (Ret) Mike Rossi, P.E. D-B-B. Don't know what you want (design takes care of that); t) Have plenty of time. note: Market takes care of cost. D-B: Know what you want (performance specs at 35%). Willing to take what you get (as long as it meets performance specs). Not a lot of time. note: Pay a premium (cost and time growth) for changing your mind (didn't really know what you wanted or weren't really willing to take what was offered). ECI: Don't know what you want. Need it fast. note: Also,,you want control over what you get, and there's a limit to what you can/will spend. You may pay a premium similar to D-B for changing your mind but may see some give and take over what you get with D-B.
9 Owner s in Transition to Change Federal, State and other Public Sector agencies traditionally deliver projects using Owner CM with common goals: Highest Quality Stay within budget Deliver by the need date. O d i t (CM S i ) Owner s need assistance (CM Services) or transition to Agency CM.
10 Critical Trends by CMAA Chairman, William Van Wagenen, CCM Technology Growing Talent Shortage Evolving and Expanding Project Delivery Strategies Better Recognition and Definition of Construction Management
11 Technology 1/3 of owner s responded they have used Building Information Modeling (BIM). USACE is placing emphasis on Standardization of Designs and seeking LEED Silver Goals for its Military Construction Program. CMAA Standards of Practice now include Risk Management, Sustainability, and BIM.
12 Growing Talent Shortage USACE initiated a pilot for national recruiting for critical disciplines. Identified shortfalls in: Construction Managers Quality Assurance Representatives Project Engineers Area and Resident Engineers Attempt to bridge the gap with new graduates, interns and mid-career candidates from outside the public sector.
13 Growing Talent Shortage CM Services SAME 2008 JETC, panel of experts voice concern that CM Contractors may not be qualified. Improving ourselves set new standards. Obtain CM Certification, improve performance across all phases of the project. Workload exceeds workforce CM Services Contracts supplement workforce.
14 Growing Talent Shortage Today s CE and CM Graduates can consider a wide range of opportunities in planning, design, program & project management or construction management. Aging Infrastructure, retiring baby boomers and an abundance of work (demand on talent) t) will change the way we manage projects today and well into the future.
15 Evolving and Expanding Project Delivery Strategies Moving away from traditional D-B delivery. Concerns for quality, final cost and schedule delivered by the lowest bidder. Changes, claims, delays, and a complexity of market conditions are driving i the need for alternative project delivery methods. D-B, CM@R, ECI
16 Evolving and Expanding Project Delivery Strategies Public Sector Owner CM s are struggling with their changing roles. Cannot find, learn or adapt to the skills required to coordinate the efforts of the designer, the contractor, and/or design builder to meet expectations of our partners or customers.
17 Evolving and Expanding Project Key to Project Delivery Acquisition Strategy Delivery Strategies Proper allocation of risk among the parties. 3B Basic Tools DBB, DB, or ECI Risk is: Not staffing and not knowing.
18 Better Recognition and Definition of Construction Management Wake UP training and mentoring is essential. USACE, SAME, & CMAA are jointly working to get more interest in engineering, construction management and technical studies. CMAA is creating paths with it s CMIT program.
19 Better Recognition and Definition of Construction Management USACE is creating a new culture of CM Certification for professional construction managers. CM Certification, standards of practice and core competencies enhance USACE ability to deliver projects. CM Certification becomes the platform for continuing education.
20 Future Trends for Construction Management Charter to Establish Construction Management as a Professional Series Why? Talent Shortage (Workload vs. Workforce) Universities iti and Colleges today are graduating students with Construction Management degrees from ABET and ACCE accredited programs.
21 Future Trends for Construction Management Objective: Professional Construction Manager 1) To establish construction management as a professional series within the federal government that provides equal career opportunities for ABET and ACCE accredited graduates; 2) define the scope of responsibilities, level of activities performed by a construction manager that requires the construction manager to be licensed or certified.
22 Professional Construction Manager Coordinate efforts of everyone on site Represent the Owner Procurement Schedule & Cost Management Contract Plans & Specifications Quality Management Computer Skills Have pride in their work Make a Difference Work long hours Work on call Perform under pressure Understand Risk Management
23 Professional Construction Manager 4-year BS degree from Accredited College or University (Engineering or Construction Management). Registered Professional Engineer or Certified Construction Manager or Certified Professional Constructor.
24 Professional Construction Manager Job Description - The Professional Construction Manager (CM) leads the Government s efforts in managing, administering, and controlling construction projects and programs through all project phases including planning, design, procurement, construction, and post-construction. The CM also leads, supervises, and manages the Government s construction management office and field staff that are responsible for: construction procurement; risk management; construction contract administration; construction management; construction inspection; quality management; and project controls including document control, cost estimating/cost control, scheduling/schedule control, and safety. The CM interfaces with and coordinates construction planning and operations with Architect/Engineering firms, construction companies, tenant activities, abutters to construction sites, and others as necessary. The Construction Manager s duties involve the application of accepted architectural and engineering theories, principles, concepts, and processes.
25 Recap It s all about Risk Change is inevitable How can you do what you are doing better? Technology Requires new training, new skills, and updated standards of practice. Talent Shortage Retire, re-hire hire, supplement staff, grow the workforce. Project Delivery Risk defined by not staffing and not knowing. Construction Management What is it?
26 Recap It s all about Risk Our decisions define outcome both routine and non-routine. Business as usual is not working. Owner s need to raise the bar for professional practice of construction management. Recruit and train talent (Engineers and Construction Managers).
27 Recap It s all about Risk Our decisions define outcome both routine and non-routine. Workload vs. Workforce Both are changing. g Construction Management is vital to delivering projects. Adequate staffing and funding are essential (boots on the ground). D-B, CM@R or ECI require more staffing, not less. Balance Program/Project Management vs. Construction Management. There is an essential difference (knowledge & skill).
28 Recommendations Essential we continue to recruit and train talent. t Outreach to local l college and universities quarterly. We must develop new skills and leadership in Construction Management. Continue our Culture of Certification for Professional Construction Managers. Professional Networking is vital to improving construction management.
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