Changing Expectations

IT and the Globalization of Engineering.

From mobile computing devices to n-dimensional modeling tools, today’s technology choices offer tremendous opportunity to an industry desperately searching for a practical framework to meet a new generation of challenges.

Those working in the global market, in particular, face enormous pressure to deliver. These companies are working with clients that expect a bid team to put in place a suite of tools at a moment's notice that can support several thousand workers in multiple foreign cities speaking several languages. “However, in the search for answers, there is a common misconception,” says John Voeller, chief technology officer for Black & Veatch. “It is inappropriate to adopt today’s mindset of managing projects without incorporating the culture of the participants and other global issues that are part of any project. Today’s business leaders must work on knowledge management in a programmatic sense—they must first adopt a communication and collaboration attitude before tackling technology and methods.”

As the industry pioneers like Bechtel, DuPont and Black & Veatch realize, the tools are available, but most times the knowledge to put them together effectively is not. Many still struggle to balance investment with payoff while searching for the ideal mix.

This growing problem, and the understanding that the construction industry lags behind in technology research, development and deployment, has prompted some unique industry initiatives. These include the research and development efforts from the Center for Integrated Facility Engineering (CIFE) and the Construction Industry Institute (CII). Internationally, the Canadian National Research Council (NRC), the European Construction Institute, Finland’s VTT Technical Research Centre, the Engineering Advancement Association of Japan (ENAA) and a new organization growing rapidly in China are also moving the improvement of construction by technology and major process change to new levels.

Perhaps the most comprehensive effort is coming together by Fiatech. With its growing membership of owners, developers and construction firms, Fiatech is focused on finding ways to adapt technology to improve the way capital projects and facilities are designed, engineered, built and maintained. One of its first orders of business has been to create a capital projects technology roadmap, first introduced in March 2003. This roadmap identifies technologies—from wireless tools to construction robots—that can help the industry reduce the time and cost of planning, design, and construction. Ric Jackson, director of Fiatech, emphasizes, “The best part is that all this technology already exists. We don’t have to develop new technology—just figure out how to use what exists. By bringing everyone to the table—the owner, the contractor, engineers, EPC firms—we’re working to find a reliable set of tools that really works.”

Later this year, the next version of the Fiatech roadmap will expand further into the specific technologies as well as the related technical plans.

The framework for working technology frameworks such as these is increasingly critical to the construction industry. Statistics show that engineering skill is global, with engineering talent coming from China and Russia, as an example. Voeller concludes, “We have to recognize that globalization impacts all aspects of commercial society. With technology we can set up communities, leverage local talent and build solid communication and collaboration networks that perform with exceptional speed, safety and efficiency.”

An Emerging Pipeline of Solutions

The call for integration and collaboration is a common refrain. Developers are clearly focused on meeting these needs, introducing a wide range of products designed to support global companies as well as those in the local and regional markets.

Take for instance, Meridian Project Systems. This leading developer of project management solutions is focused on a multi-product, multi-market strategy. Not long ago, MPS introduced Prolog LT, a lighter version of its popular Prolog project management solution geared to the regional and local engineering/construction firms. In October, MPS will launch Proliance, the first enterprise business process management solution for corporate real estate and construction markets. Proliance is targeted to large enterprises who need to design, procure, construct, and maintain large capital construction programs. “As a true enterprise product, Proliance is unique in that it is essentially a tool that project manages at the corporate, program, and project level,” explains John Bodrozic, president of MPS.

For many, the Internet is the communication platform of choice. In recent years, the industry has seen enormous development focused on building tools that work effectively in this environment. Just recently, Timberline Software Corporation and BuildPoint Corporation joined hands to deliver Bid Management, a Web-based application designed to dramatically speed the invitation-to-bid process in the estimating phase. Marketed sold and supported by Timberline as part of its Timberline Office financial and operations software, proponents of the solution say they can complete the invitation-to-bid process in one-third the time.

This Web-based application combined with BuildPoint’s PlanCenter plan posting center has helped construction firms like Washington D.C.-based Kfoury Construction dramatically reduce printing costs. In minutes, Kfoury project teams can post plans, specifications, and other project files to a customized project Website where subcontractors can view and download directly or even order plans from a reprographer. These projects are automatically posted in Bid Management to their Website.

In Bethesda, MD, the Clark Construction Group has found a way to combine its J.D. Edwards accounting system with online project management using a unique data exchange developed by Constructw@re. This custom link has helped Clark significantly improve cost tracking and projections.

Still other solutions continue to emerge. One of the newest, U.S. Cost, developer of SuccessEstimator estimating software, has introduced its Internet-based estimating and cost management system, eSuccessEstimator. This online solution is designed to allow all estimating and cost management team members to work on the same project with the same date via the Internet.

Those at Common Point Technologies, Inc. believe the problems run much deeper. Kathleen Liston, president of Common Point, explains, “The Internet is really not improving the quality of project information, just speeding access. Our customers are looking for solutions to differentiate themselves and improve the quality of communication of information. That’s the value of 4D—it’s not just a tool, it’s a process that forces teams to improve the quality of the information.” Last year, Common Point commercialized its Common Point 4D solution that interfaces CAD, scheduling, and project control information. Liston adds, “Our solutions leverage existing project data to improve the communication of project schedules and related project data.”

These and many other examples continue to emerge in the industry, offering quality examples of the technology payback. Today’s most advanced solutions are working in the real world, helping firms of all sizes better compete, work safer and deliver unprecedented efficiency as the industry shifts to better meet global expectations.

When your company assets are spread across the 48 contiguous states and regularly moved from job to job, it’s critical to have an effective management plan to keep business running smooth. Few do it better than ACME Lift Co. (ACME) of Phoenix, AZ.

ACME is wholesale distributor of aerial work platforms—those long-armed lifts able stretch into the sky well over 200 ft. Rather than buying and servicing this expensive machinery, rental companies rent the equipment from ACME and then re-rent to customers on a job-by-job basis. Revenue for both ACME and the rental company is highly dependent on actual usage of these machines.

To better support these needs, ACME launched an enterprise-wide initiative to incorporate QUALCOMM’s GlobalTRACS multimode wireless equipment management solution into its entire fleet of platforms. The system includes a small weatherproof, ruggedized box equipped with a CDMA and analog, dual mode wireless transmission technology. When mounted onto the lift, the GlobalTRACS system sends regular updates about the lift’s hour-meter reading and location whether or not the machine is operating directly to ACME’s Phoenix office on a daily basis. This information is integrated into ACME’s existing back-end business software system, RentalMan by Wynne Systems.

Woody Weld, president of ACME, notes, “In real time, we are able to see where and how much our equipment is used. That helps us capture actual rental revenue, helps manage maintenance schedules, and improves our ability to meet the needs of our nationwide client base more effectively.”

Currently, ACME has mounted the GlobalTRAC system on about one-third of its fleet of 150 aerial work platforms. It expects to have the entire fleet equipped before the end of 2003. Weld concludes, “We’re already realizing the benefits in more efficient and accurate internal operations and better customer service.”

After nearly 100 years in business, Pennsylvania-based H.B. Frazer Co., a commercial/industrial electrical contractor, has certainly experienced its share of progress. Perhaps its most significant leap, say officials, occurred this past year when the company implemented its first fully integrated project management and document imaging solution.

For the past six years, the company has relied on Forefront Construction Management Software from Dexter+ Chaney to managing accounting and job costing activities. Dan Mistichelli, chief financial officer for Frazer, explains, “This worked great for our backoffice activities. But, as our business continued to grow, we really needed a way to use that same information to manage job status—in short, an integrated project management tool.”

In mid-2002, the company added Forefront’s integrated project management software and document imaging capability. The most attractive feature, say users at Frazer, is the integration of the accounting and project management database. Now all job or project-related data—whether its contracts, invoices, change orders—are available in one integrated resource.

Mistichelli says, “Now when we update a change order, for instance, everything posts where it needs to be. For example, the contract automatically gets updated in A/R and revenue numbers get updated in Job Cost. Before this integrated database, job status reports were seriously out-of-date, translating to slower billings. Today’s technology means we don’t have to wait for the information; the information is there in real time.”

An international, multi-service construction contractor, the Ledcor Group was recently looking to help its estimating team implement a comprehensive solution to meet growing needs, particularly in its industrial operations.

After an extensive software evaluation process, Ledcor selected MC2’s ICE 2000 Estimating Solution and BIDFAX SE bid solicitation software running on a wide area network. Paul Lange, estimating manager–Central Canada/Northwest Territories for the Industrial Division at Ledcor, says his team chose the ICE 2000 solution for many reasons including its multi-discipline estimating capability and its flexibility. The development team was able to import familiar estimate summary forms and processes into the ICE 2000 framework, thus providing a speedier transition for its widespread users.

Ledcor formed an implementation team consisting of estimators and technology experts from each discipline. Each team member also trains his fellow estimators in that discipline. “Although we’re still early in the rollout, the payback is clear,” says Lange. “This solid architecture will allow Ledcor estimators to access our estimating program from any location in the world with high-speed Internet access. The network configuration has been fine-tuned to perform faster than the application mounted on our standard-issue workstations. Our system allows all disciplines to work on the same estimate at the same time.

“We now have a system that is a robust and scaleable estimating solution for projects anywhere from $100K to $1billion. Detailed takeoff time has been reduced significantly and this, in turn, increases the amount of time available to spend on proper tender evaluation, risk assessment and strategies to win the job.

“MC2’s estimating software has become the backbone of our estimating systems and positively impacts many of our other business processes including cost control, operations, procurement and business development.”