Construction Field Operations Management Automation

1. Construction Field Operations Management Automation Igor Starkov, Vice President, Latista Email: istarkov@latista.com 703-391-1070 extension 116 www.latista.com

2. Why Focus on Field Operations Automation? Demands for higher worker productivity and/or cost cutting • More work is demanded of fewer qualified subcontractors and employees because of either constraints of a growing market or emerging cost cutting initiatives by builders. • Fewer workers require higher levels of quality and safety because reduced error rates lead to freed up resources to focus on building. • Fully 84% of best-in-class companies said that they are striving to do more with less. • More work with fewer field workers is only achievable through waste reduction and increased productivity per worker. Source: Aberdeen Group, December 2005

3. Why Focus on Automating Quality/Safety at Jobsite? Government compliance can be enhanced through standardization of processes, procedures, and documentation to help meet OSHA, LEED, SPIRIT, and new regulations and guidelines in addition to state and local and foreign governments regulations Government penalties can be reduced in certain areas of construction if company is proven to have implemented systems for quality and safety improvements Litigation support and avoidance through the use of digital images (properly formatted and coded) and documentation Insurance premiums may be reduced through improved reporting, analytics and resulting improvements in performance for safety / quality functions Governments Compliance and Penalty Reductions, Litigation Support, Insurance Premium Reduction

4. Automate Field Operations Management to Reduce Rework Measuring and Classifying Construction Field Rework: A Pilot Study - Department of Civil and Environmental Engineering University of Alberta May 2003

5. Why Focus on Work Order Management? Faster response times and more first-call resolutions are building blocks of increased field technician productivity. Fast and efficient work order resolution improves profitability Source: Aberdeen Group, December 2005

6. Impact of Poor Field Operations Management

7. Critical Success Factors in Jobsite Automation Solutions • Issue (error) or Corrective Actions Capture: • Fast, accurate and easy • Standardized descriptions • Issue or Corrective Actions Resolution: • Automatic checking and rechecking to ensure completion • Tracked and noted for cycle times and redundancy • Communications: • Automatic and full-proof wireless synchronization • Take into consideration locations w/out Internet (local client with synchronization capability) • In native language of subcontractors (i.e. Spanish) • Two-way (both builder and sub have involvement) • Involves customer (if appropriate) • Equipment Should be Tailored to Environment: • Outdoors – used in direct sunlight and rain • Rugged – expect drops on concrete and tough treatment • Enterprise Approach: • Organizational-wide involvement (reporting, status) • Allows for coordination of schedules and effective dispatching • Must integrate into your existing back-office systems

8. Which Device is Best for Field Operations? Sources: Gartner, Forrester * Other cost issues: lost additional income during training, wide availability of additional software for Tablet PCs, easier upgrades for Tablet PCs, etc. Note: Smart Phones and BlackBerry-like devices are useful for work order notifications for subcontractors and superintendents, where small screen is OK

9. Rugged Equipment and Mobility • Used in bright sunlight conditions • Wireless synchronization with back-office systems • Water tight (can handle pouring rain, submersion) • Handles extreme shocks (drops plywood, concert) • Handles extreme climates (temperatures) • Full PC functionality • Supports Industrial Use Including Unique Docking Stations, Carrying Options, Hand Straps, etc. • Handles Future Needs Such as Integrated GPS, Bar Coding

10. Latista:Field Solution Overview

11. Latista:Field Framework Tablet PC-based solution (local client) for field related personnel that synchronizes wirelessly with a HQ server web-based solution for office personnel and dynamically generates work-orders to be sent via fax and email (and optional vendor portal) in English-Spanish to subcontractors **

12. Latista:Field Core Features

13. Case Study: Clark Construction – Galen Center • Project: Galen Event Center • City: Los Angeles, CA • Owner: University of Southern California • Cost: $100,000,000+ • Size: 210,000 SQF • Summary: Phase two of the project - construction of the Athletic Pavilion, consists of a 75,000-square-foot, two-story structure with coaches’ offices, administrative space, meeting rooms and storage space on the lower floor. The upper floor will house practice courts. The Pavilion will connect to Galen Center at both levels.

14. Case Study: Clark Construction – Galen Center • Contractor: Clark Construction • Description: Founded in 1906, Clark Construction Group, LLC is today one of the nation's most experienced and respected providers of construction services, with over $2 billion in annual revenue and major projects throughout the United States. • Field Management System: Latista:Field • Application Areas: project closeout, punchlists, work orders management, quality control checklists, etc. • Some Facts: • More than 20,000 issues recorded in the field • Issues dispatched wirelessly to the central office • Work orders generated at midnight and emailed/faxed to subcontractors • Extensive use of digital pictures embedded into issue description within the work order • Results: • Closeout Phase reduced by several days • Improved quality of construction

15. LATISTA - Company Overview • History: Doubling in size every year since founding in 2001 • Industry Focus: Construction and Real Estate • LATISTA Focus – number one in field operations automation software solutions for construction • LATISTA Services – Consulting, Software, Customization, Training, Implementation and Support