CIIA Taskforce Report

1. CIIA Taskforce Report Improving the uptake of Information Technology in the Construction Industry

2. Task force membership • Terry Bulmer, Thiess (Chair) • Graham Brewer, University of Newcastle • Prof. Chen Swee Eng, University of Newcastle • John Eden, DPWS - NSW • Peter Hardaker, Baulderstone Hornibrook • Kay Janis, DPW - QLD • Prof. Denny McGeorge, University of Newcastle • Bill West, Leighton Holdings Limited

3. Overall Research Project Objective To provide the framework and knowledge to assist in the effective uptake and use of IT throughout the Construction Industry

4. T a s k F o r c e I n i t i a l T a s k F o r c e R e v i e w a n d I n i t i a t i o n ' i n p r i n c i p l e ' s i g R e v i s e a n d F o r m u l a t e U n d e r t a k e r e s e a r c h f i n a l i s e T a s k c o n c e p t u a l a n d p r e p a r e d r a f t F o r c e r e p o r t f r a m e w o r k r e p o r t Task Force Program - Stage 1 T a s k F o r c e T a s k F o r c e O v e r v i e w F i n a l R e v i e w a n d C I I A C o n f e r e n c e n o f f S y d n e y B r i s b a n e B r i s b a n e M i d A u g u s t O c t o b e r M i d J a n u a r y E n d M a r c h 2 0 0 0 2 0 0 0 2 0 0 0 2 0 0 0

5. The Problem • Technology is available, but uptake is patchy • Problem is exacerbated by: - high degree of fragmentation - low profit margins - large number of participants - poor understanding of how to realise benefits • Coercion is not the solution

6. Key Influences • The forces acting upon the industry in respect to IT implementation are twofold: • Cultural • Technological • The industry is being pushed forward by technology and pulled forward by cultural imperatives

7. Culture and Technologies

8. Technological Push • Business process re-engineering enabled by: • - object modeling • - web portals / e-commerce • - ASPs • - project web sites • - WAP technologies

9. Cultural Pull • Relationship management • Maturity of Clients/stakeholders • Project partnering • Strategic alliancing

10. Culture and Relationships

11. Resistance to Change • Low industry margins inhibit long term ROI initiatives • Management’s lack of knowledge of technology • Perceived loss of control by HO with BPR initiatives

12. Conclusions • Main impediment is resistance to cultural change • Change needs to be CEO driven • IT solutions should integrate with the organisation’s business objectives • Highly varied levels of understanding of how benefits of IT implementation and integration can be realised • Strategic IS planning is an essential part of overall business planning

13. Recommendations • Adopt change management strategy to overcome resistance to cultural change • CEOs must acquaint themselves with the benefits of IT enabled BPR and ‘walk the talk’ • Align IT investment with business goals • Education at a basic level is required and needs to be made available • Strategic business planning is to be undertaken prior to implementing IT solutions

14. Case Studies - What’s possible • Department of Housing - NSW • Flower and Samios Architects, Sydney • Information Industries Bureau • Bovis Lend Lease • Leighton Contractors, Brisbane • DPWS, NSW

15. Case Study Rationale • Case studies were selected to showcase innovation/best practice in respect of: • Object modelling • Utilisation of collaborative tools • Cultural change among stakeholders • Industry education initiatives

16. Department of Housing - NSW • Business process Re-engineering: a first step • Responsible for the maintenance of 130,000+ properties state-wide, in 108 zones • Issuing over 54,000 job orders and payments monthly, across 22 trades • Transfer of communications from conventional to e-mail • “Low tech” solution initiating cultural shift at smaller end of the industry • Low level technology and skills investment required to participate

17. Flower and Samios Architects, Sydney • Business Process Re-engineering • Investing in and learning to use a system that was powerful enough to do what was required • Recognising that to produce a 3D model was a major task and should in fact be where the design process was carried out • Abandoning drawing boards forever • Placing the 3D model at the heart of all working practices

18. Flower and Samios Architects, Sydney • Potential influence on value chain • Builders working directly from the model • Greater scope for innovation • Less RFIs • Opportunity for real time scheduling (4D modelling) • Engineers working directly from the model • Fit structure and services to model • Electronic communications = reduced costs • Transparency of process = high levels of trust, honesty and confidence

19. Bovis Lend Lease • “ProjectWeb” • Open and instant sharing, visualisation and communication of project information, • applicable across the value chain of a project, • accessible by any project participant, • no proprietary standards or technologies, • no specialised telecommunication requirements, • embrace open industry standards, • be accessible from potentially anywhere in the world, • be modular in design, to allow the integration of many IT based business practices already in use within the company.

20. Bovis Lend Lease • Tangible Benefits • Savings of over 400,000 person-hours in document handling • 60% reduction in plan printing • 50% reduction in site paper supplies • 90% reduction in couriers • 95% reduction in chemical photography • 25% reduction in travel • 20% reduction in telephone usage • 80% reduction in printed forms • 50% reduction in plan printing • 30% reduction in internal mail and courier costs • In paper alone it would save 150+ tonnes or the equivalent of nearly 2,500 trees

21. Bovis Lend Lease • Hidden Benefits • Facilitates Business Process Re-engineering • Facilitates alignment with project partners (over 1000 companies have participated in “ProjectWeb” ventures) • Widens access to the value chain (ie international collaboration) • Higher quality and responsiveness in project control

22. Leighton Contractors, Brisbane • Use of Electronic Document Management System to coordinate all project documentation. • Capable of integration into “virtual office”, project web sites, etc. • Secure access and work allocation controlled by login - this is now embedded in company business practice. • Relatively slow transfer of drawings can be addressed by ‘Citrix’ software, plus use of wide bandwidth LAN or leased data lines.

23. Leighton Contractors, Brisbane • Civil engineers still prefer paper drawings, especially on site, but... • Colour on-screen display of drawings seen as beneficial where complex details require differentiation. • Paper driven sub-contractors currently still accommodated but could be excluded in the future.

24. IT Strategies for Best Business Practice • IT short course - currently piloted in Qld. • Commonwealth and State funding • Building and construction industry • 16 organisations from across the value chain • Designed to improve strategic approaches to IT planning and implementation

25. IT Strategies for Best Business Practice (cont’d) • Review business goals and objectives • Identify and review key processes • Identify and assess information needs • Develop IT strategies • Develop IT implementation plan

26. Outcomes • Effective use of IT in business • Improved integration of processes • Efficiencies with partners across the value chain • Competitive advantage through improved productivity

27. Partners • Information Industries Bureau, (Qld Department of Communication, Information, Local Government, Planning and Sport) • Commonwealth Department of Industry Science and Resources • Department of State Development (Qld) • Department of Public Works (Qld) • Construction Queensland • International Alliance for Interoperability

28. Department of Housing - NSW • The Problem • Responsible for the maintenance of 130,000+ properties state-wide, in 108 zones • Issuing over 54,000 job orders monthly, across 22 trades • In receipt of similar numbers of requests for payment • Communication in both directions by diverse conventional methods

29. Department of Housing - NSW • The Solution • E-mail based system, loosely automating a traditionally paper/phone driven process • Job orders, invoices and payments all transacted electronically • No commercially sensitive information broadcast across network

30. Department of Housing - NSW • Issues Arising • “Low tech” solution for procuring recurrent responsive maintenance from pre-qualified sub-contractors • Pre-qualification tenders carried out conventionally (at present) • Low individual value for each work order = low risk • Weekly summary report clearly ensures authenticity of claims for payment • Low level technology and skills investment required to participate • Message content far more important than its appearance (simple .rtf format used for platform independence)

31. Proposed Stage 2 Scope • Desktop study from Stage 1 will form major input to Stage 2 • Establish Australian IT capability: • (a) Survey all industry sectors nationally = research database • (b) Attention to all sectors - SMEs, major contractors, designers, suppliers, subcontractors, operations/maintenance providers, etc • Showcasing – case studies (including other industries): • (a) BPR, include supply chain • (b) Electronic tendering, interoperability • (c) Model projects

32. Proposed Stage 2 Outputs & Program Proposed Stage 2 outputs: • Confirm obstacles and opportunities • Identify and recommend mechanism for improvement • Promote Industry collaboration • Opportunity for competitive advantage • Initiate change Proposed Program for Stage 2: • Estimated 18 month duration