ACTIONS YOU CAN TAKE TO SHAPE THE FUTURE OF THE CONSTRUCTION & BUILDING REGULATORY PROCESS

1. ACTIONS YOU CAN TAKE TO SHAPE THE FUTURE OF THE CONSTRUCTION & BUILDING REGULATORY PROCESS Robert Wible Alliance for Building Regulatory Reform in the Digital Age at FIATECH Associated General Contractors of America January 25, 2008 - Miami, Florida

2. Forces Impacting Construction & Regulation: Actions That Can be Taken • Share observations - 30 years serving state and local government and nation’s governors building code and public safety interests • Tools developed by the Alliance at FIATECH you can use in jurisdictions where you build / own buildings

3. The Alliance for Building Regulatory Reform in the Digital Age at FIATECH • A Public/Private Partnership of Associations & Government Agencies • NGA, NACo, Mayors, NASCIO, Federal Agencies HUD, DOE, NIST… • FIATECH, AIA, NAHB,AGC,BOMA, …. • Share best practices to improve gov’t effectiveness & efficiency • Provide streamlining materials that have reduced regulatory costs by 40-60 %

4. Alliance Mission • Enhance the nation’s • public safety • disaster resilience and • economic competitiveness • Through • streamlining and • applying information technology • To the nation’s regulatory process • To make it • more effective and • efficient.

5. Forces Impacting Construction And Regulation • Our world is in rapid transformation • We live and work in unique and challenging times: • At no other time in past 30 years have economic & safety pressures been greater on our communities & construction industry • At no other time has public impression of the competency of government been lower • At no other time has technological change been more rapid

6. Forces Impacting Construction And Regulation CHANGE REFLECTED IN EVENTS • 9-ll and war on terrorism • Acknowledgement of Global Warming • Katrina/Rita first region-wide large scale disaster with national economic impact • “The Global Economy” & stiffer competition • By 2050 China will be world’s largest economy • We are entering another recession

7. Forces Impacting Construction And Regulation 6 CHALLENGING FORCES – 1990s to Present • Economic • changing role of nation in global economy / recession • Reduced Resources • demands for downsizing and increased efficiency in govt. • Public Safety • greater demand from natural disasters and terrorism • Demographic • aging population & immigration • Environmental • energy costs, resource depletion & global warming • Technological • rapid changes & new technologies

8. Construction Industry Response to these Forces?

9. Construction Industry Response to these Forces? • “Build faster, better, safer & at less cost” by: • Researching & applying new technologies & materials: • Nano-technology, • Blast, wind, seismic resistance • Sensors • FIATECH accelerate innovation & automation of construction industry throughout life cycle of buildings.

10. Construction Industry Response • FIATECH Technology Road Map

11. FIATECH TECHNOLOGY ROADMAP • Nine Elements: - #1 – Scenario Based Project Planning - #2 – Automated Design - #3 – Integrated & Automated Construction & Supply Network - #4 – Intelligent & Automated Construction - #5 – Intelligent Self-maintaining & Repairing Operating Facility

12. FIATECH TECHNOLOGY ROADMAP • Nine Elements: - #6 – Real-time Project & Facility Management, Coordination & Control - #7 – New Materials, Methods, Products & Equipment - #8 – Technology & Knowledge Enabled Work Force - #9 – Life Cycle Data Management & Information Integration

13. Construction Industry Response • Build Safer, Faster, Better & Less Cost by Applying Information & Other Technologies to Construction: • BIMs (Building Information Modeling) for whole building life cycle - construction thru O & M, renovation & demolition. • Supply chains are integrated into Virtual Building design and construction systems

14. Construction Industry Response • “Build faster, better, safer & at less cost” by Green & Sustainable Building Design, Construction, Operation, & Maintenance • Green Building Council • LEEDs Program • Sustainable communities programs

15. The Government & Regulatory System Response? • Nationwide, only 10% of 40,000 jurisdictions, adopting and enforcingbuilding codes, use IT • Only 2% allow electronic submission of plans • less than 1% do reviews • Less than 4% use mobile inspection technology • Near total lack of interoperability of building data within same jurisdiction • Virtually none between jurisdictions

16. Example of Problem - Virtual Builders Roundtable, 12/05 Conference • More than 20 firms design, build, commission, operate, maintain buildings using BIM – Building Information Modeling • Used 3D & 4D design with data link to construction team - suppliers, contractors, with: • No printed blue prints • No shop drawings • No change orders UNTIL…….

17. Example of Problem from Virtual Builders Roundtable, 12/05 Conference • Until they intersect with the local building department that required: • hardcopy blue prints • several iterations of plans review • shop drawings • inspections/re-inspections • Resulting in numerous change orders/corrections/time delays

18. In Short • We may have “BIM” • With it the construction industry and building owners are beginning to see an increase in productivity • But then “BAM” • We get no overall BOOM in construction in our nation • Because state & local government regulatory systems are not able to interact with, let alone inter-connect with, construction data and systems “Yet we all still have shared needs for greater efficiency “

19. Government & Regulatory System Unprepared to Address Forces: • Economic • changing role of nation in global economy • Reduced Resources • demands for downsizing and increased efficiency in govt. • Public Safety • greater demand from natural disasters and terrorism • Demographic • aging population & immigration • Environmental • energy costs, resource depletion & global warming • Technological • rapid changes & new technologies

20. The Result? • These forces are driving the engine of change down thetrack at increasingspeed • Daily impacting: • All of us who own, live, work, and play in buildings • Because of • Countless inefficiencies and unnecessary costs

21. Impact of Inefficiencies In Construction • Higher construction costs due to inability to use economies of scale for materials • Longer construction time due to inability to adequately schedule the process amongst subs • Countless costly change orders, etc.

22. Impact of Inefficiencies In Regulation • Ineffective & inconsistent code enforcement • Often just outdated codes • Higher than necessary regulatory portions of construction costs • As much as 60% higher than in neighboring communities of same size, construction volume • Causing some businesses to leave town or projects not to be built at all !

23. So why aren’t we outraged? • The costs and impacts of these inefficiencies aren’t noticed because they occur: • one day at a time • one building at a time • one company at a time • In over 50,000 separate jurisdictions across the nation