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hi welcome to future trends in construction change becoming a reality uh as we've been discussing in this course i'm tom stevenson and today we get to look at possibilities the way the world is changing how this may impact construction and so i've broken this into two parts we've got eight a and eight b uh so we'll look at eight a right now and we're gonna one of the parts in eight a is really discussing productivity and one of the biggest problems in construction definitely is productivity huge huge opportunity problems can be flipped around to be an opportunity if we reframe things and look at it from a different perspective like i discussed in the first lecture of the course when we're talking about change this can be a big opportunity all right and so we're going to look at some of the emerging trends and digital technology and in this portion of the lecture we'll look at building information modeling so product speaking of productivity construction not great uh a lot of research uh points this out there's a lot of areas that you can look at uh the most of the research comes into a zone something like this you know depending what you look at 32 percent uh waste if we actually look at lean which i'm going to discuss in another uh lecture with you which is adding value and removing waste which is a become a big deal in construction for these reasons uh that lean would say that you have around uh 60 to 70 percent waste but it actually counts this as waste as well but it's necessary waste this is unnecessary waste this is necessary waste but it's still an opportunity if we can do it more effectively more efficiently to reduce it this you know let's face it we need the windows we need the walls we need the roof that's part of the structure that's the building this is like absolute uh this is absolute value-adding you know you do a schedule the client when they take over the building they don't necessarily see the value in the schedule they may appreciate that it finished on time but the building itself is the building right um so well most most people will look at this but when we talk about lean you'll see i'll shift gears a little bit in another lecture but recoverable lost time this is a huge opportunity so i'm not standing here saying that we've got two percent waste in construction how do we get it down to one percent i'm saying we've got 32 big opportunity no matter where you look uh the economist this was from 1997 had a big article on waste in construction and uh improvements in productivity how fast you're able to do something with certain certain inputs what kind of outputs do they produce right and so if we improve on that that means with less inputs we get more outputs and that really ties into the ability to meet schedules the ability to be cost effective and productive in construction and this is what clients expect but we as a industry globally have not been keeping up with the changes in the rest of the world total economy has been improving at about three percent productivity rate per year uh manufacturing closer to four and construction less than one percent uh so uh we have not been keeping pace there is an excellent uh uh report that was put out by the mckinsey global institute i think this link let's just check if it actually works so i'll see if it works [Music] yeah we're okay with that uh so this is uh the productivity report uh which is um showing this is the executive summary this is the short uh just of it if you click on that you will be able to see this report it really sort of ties into how construction needs to improve in productivity and actually has done a lot of research and input into it and where it needs where the opportunities are and so lean plays a big part into the report integrated project delivery type contracts play a big part into it so there's a lot of things we can have influence on in the construction industry where i kind of get into it with my students is usually on the aspect of well what can you influence managing a project site supervision project management purposes and that i'll get into in much more more detail in another lecture for now i just want you to kind of have a broad sense of what's going on and so when we think about this uh from this uh perspective we have a let's say this is a financial statement a high level financial statement this would be an income statement and you have let's say you're a subcontractor and you have a hundred million in sales in a year you have uh your own employees maybe you're an hvac subcontractor or a plumbing or electrical subcontractor you have 40 million dollars that is your own people doing the work the trades you have materials you have equipment you have subcontractors and so if we take that off the top line what we have less if what we call our gross profit our gross profit includes overhead and profit that's the gross profit if we take out the overhead and overhead is things like your office your truck your your cell phone that's expenses you're going to incur whether you had this particular project or not so that is overhead if we subtract that out you have about four million dollars profit and that's four percent of sales people think that construction companies make you know 25 30 profit that is not typically the case usually it's in this range of four to ten percent all right uh so let's say it's four percent well if you improve your labor the productivity of your labor by 10 10 that would then make the labor cost 36 million look what you did to your profit your bottom line eight million you doubled your profit right so now you've gone from four percent to eight percent with a ten percent improvement on your productivity right 10 improvement on your productivity on your own forces in labor that's a big number so a small improvement in productivity gives you a big improvement in profit if you self-perform a fair amount of work like a subcontractor in this case and that number wouldn't be out of line for a subcontractor in that case or it wouldn't be out of line for a gc that self-performs on their concrete so you might think 10 a lot all right well 5 5 to give you a 50 improvement on your productivity 2 give you 20 improvement on your product 1 10 improvement on productivity so that will give you an immense improvement in these areas and so that's why the mckinsey global institute report that's why lean construction that's why bim that's why most of the things we talk about in this lecture is a result of trying to improve productivity so we can make better sense of being more reliable reduce variation in the construction process and if we reduce variation in the construction process we are become more reliable and we reduce variability and that improves predictability that means when we price things more likely to happen the way we thought when we schedule things more likely to happen the way we schedule it and if we do that we're going to have happier clients because we're going to be adding value to them and that's going to make us more in demand and we will win the rate of competition because we'll have the competitive advantage so there's a lot of contractors that are moving towards lean construction and the definition of lean construction is adding value while removing waste so in this particular lecture i'm just going to give you these eight components eight types of waste that we deal with in construction in another lecture i'll get into defining these in more detail but defects things that weren't constructed properly waiting uh big thing in lean construction we used the term workers waiting for work and work waiting for workers workers waiting for work is no good the clock is running you're spending money for no reason things getting done ahead of time is no good if you've got basically it's sitting there and on the assignment project that i give many of you i'm getting emails uh sir um we've been photographing this for five weeks and we haven't seen any change in the project that is work waiting for workers so it's not abnormal unfortunately and i'm not surprised uh but that is tying into that transportation of goods how do uh goods uh you know transfer how are we transporting them what's the wait time stuck in traffic are we bringing things from another continent when we could get them close by what are some of those issues wasted motion i can spend i could spend a week on this topic wasted motion inefficiencies in the workforce inefficiencies with the trades uh doing things twice walking uh half a kilometer to a portable wash room and walking back the time that's in wasted motion inventory having too much on site having to move it around multiple times over production doing more of something that is required then is required uh prefabbing a whole bunch of extra stuff and then it sits there and it gets thrown out unnecessary process steps doing things that is not in an efficient way uh so that happens all the time submittals and all the steps that are involved is there a productivity software we can use to improve that incorrect use of talent or underutilized talent not engaging with the people that are working with you you do not know everything they have much more expertise in those areas of skills have you engaged with them to take advantage of that that's a missed opportunity so that's a little quick introduction to some of the lean aspects but i'm going to talk about that more in a future lecture emerging trends in construction role of innovation um really that's what we're trying to do we're trying to do more with less resources that's improving productivity have less work waiting for workers and less workers waiting for work and we can use a lot of innovative tools and techniques some things are very fundamental to be honest with lean some things are fundamental in how we organize stuff and some things don't have to be a high-tech solution but we are at the cusp of humongous innovation and the construction industry is a laggard at adopting it with that said we're at a tipping point where we're going to see massive change in construction and so we're going to talk about some of these things you know what some of these things may not end up being the bl to end all that i may mention here there may be other things that are used in different ways that actually um take advantage in different ways and building information modeling i couldn't six years ago seven years ago uh fully comprehend all the way that all the ways that it's now being used and i still don't comprehend how it's probably going to be used in 10 years fully because it's in the innovative state it's in the growth state but it is not going to disappear so these are some of the topics i mentioned the lean construction adoption if you're if you're a larger company whether you're adopting pure lean principles i don't see how you can not listen to those eight areas of waste when you're planning a project so if you're not you are falling behind in my opinion prefab uh you'll see um some of the advantages so we're going to go through the these in the next two lectures that you'll see prefabrication you know what that's not new we've been pre-fabricating stuff for a long time but it is now at the threshold time with other technologies to be able to do it in a much more sustainable fashion to a higher quality level and a higher certainty that it's going to work with the combination of prefabrication and bim it's helping to drive lower prices by scaling so framing we used to always frame on site and we still frame on site probably for fifty percent of more of the work but most of the production builders don't frame on site they get the panels made and then they can quickly assemble them on site so it shortens the assembly time uh and they'll do it that way so there are a lot of these uh aspects factory-built prefabricated buildings they must require they must meet uh building code requirements when they're put on the actual site and they have to satisfy csa requirements when they're for the components that are built in the factories uh so there is uh but there you're seeing more of this not less of this especially when we want to build real energy efficient tight buildings there are a lot of opportunities if i think that the easiest way to build net zero out is likely coming out of a production builder that is using modularization to accomplish that some of the disadvantages are you have a factory and so you've got a lot of overhead and in a down economy because construction is cyclical that becomes problematic the other problem is getting it to the site so you bring it to the site in sections and assemble it there matami homes a few years ago built the whole project like the houses in their factory and they had some issues with that when you have up and down economies and things of that nature but that doesn't mean that that's not going to still happen people are tweaking things and people are seeing the opportunities and thresholds that these bring prefabricated homes they've been around a long time but you are seeing a renaissance in that and an opportunity and you're seeing a lot of investment being placed into the modulization and prefabrication of condominium units too so i suspect in a few years you're going to see a lot more in that kind of area where you're able to put together larger components and the house gets uh built uh this way this is using trusses and then you can see the prefab components and this looks like a dormer that's built into it i'm pretty sure unless i'm mistaken that might be in kingston there's a house right on the edge of kingston that particular one here's condominium unit prefab units being installed you see that with prisons they do the cells prefab and they them you see that in hospitals so there's a lot of opportunity there there's advantages there's disadvantages but these disadvantages can be really like this one can be really mitigated with better design and bim design that ensures that it's done well so there's a lot of improvements in those areas transportation tends to be the biggest barrier in prefabrication but there's a lot of opportunities in this and as i said it will definitely improve productivity so sustainable construction that's like this is whole courses this is huge i've mentioned net zero in some of my other courses that i do and that zero means that the building produces as much energy as it consumes you know we are living in a planet with ongoing climate change going on this is needs to be done this will be done governments are changing building codes to be constantly more energy efficient so to have economic sustainability environmental sustainability social sustainability this all ties together for sustainable construction costs of building sustainably have gone way down they're continuing to go down and it's just like electric vehicles their usage is going way up car manufacturers are changing things over yes it may take a little bit of time but it's actually these things sometimes it took a little bit of time to get to this stage but then things reach a tipping point where it change becomes very rapid so it's not going to be i sometimes think about lead programs and the certification programs they have at some point they're just going to be building code and that's just the way we do things so involves design management of buildings looking at life cycle costing we talked about in another course what is the life cycle investment in this what's our best mechanism for this build a tight envelope make it very energy efficient that's going to lower the cost of upgrading to more renewable resources as they become more available and cost efficient so there are the these elements that tie to this adherence to ethical standards socially viable environment stakeholder participation make it safe working conditions innovative financing models all of these things work together for us to be able to build more sustainable sustainably and remember the definition of sustainable is that not only for our generation but for future generations the transference of uh the infrastructure that we have is not impacting our environment in a negative manner whereas green building green is just building better than the building code right usually about 25 better than the building code smart building technologies well you know what everything is talking to each other we're in a world where everything communicates with each other and you know originally everything was being wired a certain way for um usage in smart buildings but more and more you're seeing that it's going to wireless technology which actually makes the implementation of smart building smart building technology all that much more easier until intelligent buildings are buildings that through their physical design it installations responsible flexible adaptable um to changing needs from its users and the organizations that inhabit it that's what it's all about so you know it's not about necessarily putting something in that's out of date tomorrow it's about building buildings that are adaptable and flexible in more ways than one and building automation is that integration of communication between your hvac system systems your lighting your building automation systems there's a lot of ways that you wouldn't think that would be such a great deal you know i would i used to think what's what's the point of being able to control your furnace from it if you're not at home it's really kind of cool if you're in another location you can check maybe you're on vacation you want to make sure your furnace is working you can check that you can adjust the temperature uh you can be sent a notification if there's an issue with it you can have your security cameras uh on and you can have as example a nest door buzzer and it's got a screen uh that's um uh a camera onto the street uh a little uh story because usually these things connect with stories so uh just in the last few months there was a murder down the street from where i live and we actually had a nest camera on the street and so the police were canvassing the neighborhood and they were able to access the video so they could see any cars that went up and down that street right uh during that time period they could go in and they could check it and then apparently because the street kind of goes this way there was somebody had a camera going the other way and they could check any cars that went this way so they could actually see any cars that might have gone to that house and that can assist them in tracking down who actually did the murder so again you'd be surprised at the different ways that this technology can be used for good purposes i'm sure there's hacking and things that go on but as we uh learn more and more about how we can better manage things there's opportunities there so building automation is that integration that takes place between the different systems in communicating with each other then we get to bim which is building information modeling and that is the full integration of our building systems in the design and when we're building them there are the six levels of bim which really is level three four five six uh the the three-dimensional four-dimensional five-dimensional six-dimensional three-dimensional is your three-dimensional model which has all of your building systems in it as well as your structural elements and then you can look for clashes interferences ahead of time and you can resolve those issues in the model as opposed to what we do now on the site so that's not good and i say now now on non-bim projects now on bim projects this also opens up the opportunity to do much more pre-fabrication of fancy duct work and things that will actually fit when they arrive on site meaning less rework less people working on site because the installation time is shorter installation time is shorter the schedules are shorter camp schedules are shorter clients are happier because we can fit a construction process into a shorter time frame and they can be utilizing their buildings quicker so that has a lot of opportunities that way as well as quality control as well as you can run energy models time to sustainability through a bim model to see how effective the insulating qualities are of this particular building so not only can you have it for the structural for the building systems you can also have it for operational use so that can have energy modeling done a lot of advantages to those areas with a bim model and a full integration and the client can actually walk through their building before they actually have the building completed so that works so there's good advantages there with building information modeling and this is the way that we are beginning to do things uh any complex project is doing things this way hospitals are doing it this way data centers are doing it this way and more and more projects every day because as the trades catch on and as the consultants catch on and we get better and better at this it's just the way things are going to be done so um it's definitely an emerging trend and it's integrating everyone into that trend nobody is outside of that trend and 4d 3d looks for the clashes provides opportunities for prefabrication how we're going to assemble things as sources 3d 4d is how we schedule it and we can animate the schedule so that we can actually tie it to a timeline 5d is estimating so we can do takeoffs 6d is where we can integrate with the actual uh the actual owners and provide them with a complete database of how their building is going to function operate and be maintained into the future so a lot of advantages to bim with that integration and to help reduce the sort of lack of coordination of fragmentation that we have where we're all of a sudden on-site oh this doesn't fit this doesn't work i was just in another class and i was asked are the consultants do they care about the other areas and you know usually they do because it comes back to them eventually that there's some design error design problem but the ability to integrate on the model definitely helps because you're engaging with the people involved in the project so this is really a big help i talked about lean that's really a big help if we can get more companies working on ipd integrated project delivery where there's profit sharing in the construction process that will be a big help and you tie these things together now you're really moving forward in accelerating uh your productivity rates and reducing waste so direct benefits visualization coordination clash detection prefabrication construction scheduling construction simulation quantity takeoffs and you have a record of the model lots of different software you know software is changing by the day so this is one one listing bim is not a particular software bim is the integration of the various software so don't get hung up on a particular software but it's the integration of the various softwares that ties in lots of different types of models design models construction document models depending on the what's being looked at lead contractor models facility management models so you think about the different ones they're serving different purposes like lead you're looking at energy right so energy modeling better day lighting happier less sick building syndrome architect the various consultants are looking for the models to ensure to ensure that the design is very functional with very little rework so those are some of the different models of how bim integrates now in 8b a lot of the things we'll be discussing besides what we've already discussed is again utilizing that that we can do more things in different ways and trying to reduce uh waste in those eight areas so if we take think about the next section it's gonna be looking at bim it's gonna be looking at integration of the lean principles of waste elimination and what the new technologies can potentially do for us so that's what i wanted to cover right now uh i'm tom stevenson i hope you enjoyed this sort of looking forward on the trends aspect in our introduction to construction course so we'll see you next time and have a wonderful day bye for