2019 NACA Conference

1. 2019 NACA Conference Park MGM ~ Las Vegas September 9 – 11, 2019

2. Technology GC’s use to improve safety and job site performance & how auditors can leverage technology in their audits Kay Papin Adam Rouse McCarthy BDO USA, LLP

3. Construction industry technology challenges • What technologies are used • How auditors can leverage technology agenda

4. Challenges

5. Large national firms Mid size firms Small/regional firms Who is investing?

6. Silicon Valley investors seizing this opportunity Focusing primarily on: • Collaboration software • Optimize workflow, increase productivity • Offsite construction • Machine building • Big data/artificial intelligence • Prevents big data being wasted Solutions

7. Job Site Tracking

8. Equipment Sensors • Equipment idle on job site, yet billed (billed too early) • Compare hours in operation to billings • Job billed for several thefts • Saved money form tracking via GPS. Auditor discovered equipment recovered, but job billed. • Change Order for utility relocate • $125m claim for down time to relocate. Charged owner, yet geotracking didn’t show equipment near utility Auditor Use

9. Cameras/ Drones

10. Take pictures / videos as event occurs • Determine kind of non-event / event • Work with owner and architect/subcontractor to determine solution if necessary • Show Contractor Progress for Schedule of Value Billings • Show Use of Actual Equipment Use on Site Job site cameras / iPads

11. Drones • ENHANCE SAFETY, SECURITY, AND PROMOTE OVERALL EFFICIENCY​ • Drones with cameras can "walk the perimeter" of facilities, seeing areas an ordinary security camera might not reach​ • Drones can perform safety inspections, perform maintenance and repair functions like fixing a leaky roof, or fly across a campus to retrieve a forgotten tool​ • Using RFID, QR-codes, and IoT, drones can take physical inventory​ • Drones can move small items quickly, reducing the need for forklifts or possibly replacing the conveyor systems often used to transport boxes around distribution centers​ • INSPECTIONS​ • The use of drones is already revolutionizing telecommunication tower inspection, where a drone can implement monitoring activities at a fraction of traditional costs and time​ • Drones can also be used for aerial analysis of buildings and other infrastructure, such as pipelines, solar panels, electric grids, and offshore platforms​ • CONSTRUCTION SPECIFIC​ • The use of drones in construction allows users to map a site and create two-dimensional as well as three-dimensional images​ • Surveyors can survey an entire site in just a few minutes, whereas in the past it’d take them several weeks or months​ • Drones can be used to quickly conduct jobsite inspections and identify potential hazards each day​ • They can also be used to monitor workers throughout the day to ensure everyone is working safely​ •  Drones are being used to take photos of as work progresses to create as-built models of jobsites to keep everyone informed of the changing work conditions each day​ • Drones are also being used to tackle more dangerous jobs, like bridge and building inspections. This won’t eliminate the need for workers, but it will mean that workers will need to be trained on how to use the technology to perform these tasks Drones

12. Construction Applications • Roofing Systems • Wet or missing Insulation / Sealant Gaps around Penetrations • Building Enclosure • Insulation Voids / Shrinking Window Seals • Mechanical • Locates Mechanical Defects • Electrical • Overload or Un-balanced Loads • Plumbing - Leaks • Concrete Slabs - Flaws Infrared / Drone inspections

13. Roofing Building Enclosure Mechanical Electrical Concrete Disbands

14. Drone Examples • Inventory • In total, pay apps had 25% more material than originally estimated. Able to leverage drone inventory tracking • Soil removal • Soil was contaminated and records were poor, was able to use drone & camera feeds to track loads Auditor Use

15. BIM

16. THE PRIMARYCHALLENGES (Communications, Trust and Team Work) • SCALE of Work Relative to OverallSchedule – Start Early • SPEED of Delivery Relative toDecision-Making • MANAGEMENT of Expectations Relative to key ProjectStakeholders – Owner, Architects,GC and Trade Partners • GC facilitate BIM CoordinationMeetings • Lead Electrical/Mechanical Contractor drives CoordinationProcess • GC Self-perform work modeling (ConcretePlacement) • Cloud-basedcollaboration or face to face BIM Building Information Modeling

17. Site Logistics • Fly-Throughs Reality Capture Virtual Mock-Ups BIM Building Information Modeling

18. Changes to the BIM model occur in real time, so any changes or updates to the model are instantly communicated to all team members when they access the model​ • Because the schedule can be simulated, a visual representation of the construction process allows team members to plan out each phase of construction​ • The type of immersive visualization made possible by VR paired with BIM will lead to better collaboration and communication​ • With AR, a project manager or contractor could walk through a construction site and easily view an overlay of a BIM model on top of as-built construction and compare the two

19. Improve safety • Enhance constructability analysis and certainty for site work while reducing risk • Enhance schedule and budget accuracy for the project • Reduce Changes for below surface unknowns Mapping

20. QUALITY LEVEL B Mapping

21. robots

22. Robots in construction

23. PA review - disconnect between project schedule & PA. Brick laying machine recorded the data (materials) Auditor Use

24. Robotic process automation/ AI/ ML

25. 1) Excessive number of change orders- used predictive analysis / risk assessment to estimate where the issues might arise and put mitigation plans in place 2) Used RPA to extract data from subcontractor agreements to verify flow down provisions were added correctly Auditor Use

26. Payment application/ financial

27. software • Requiring contractor subs to use a pay app software – fool proof, less errors, real-time data, easier to identify anomalies • Mobile apps- used @ job site (time cards, expense reports, equipment logs, daily reports)

28. Able to obtain cost level detail – job costing • Generate dash boards • Critical path analysis for change orders Auditor Use