Washington, D.C. June 18, 2002

1
Washington, D.C.June 18, 2002
CURT Local User Council Summit

• Les Prudhomme
• Associate Director
• Construction Industry Institute

2
Objective

• Start a renewal process for collaboration between
  CII and CURT.
• Suggest mutual agreement to a joint statement to
  characterize this renewal.
• Work together to solve the problems of the
  industry and improve industry performance.

3
CURT CIIJoint Statement of Cooperation

• Working Together to Improve Performance and
  Competitiveness of the North American
  Construction Industry

4
CURT-LUC CIIThe Opportunity

• Working together to identify major trends and
  issues in the industry.
• Collaboration on research, implementation, and
  education.
• Leveraging the commonality of membership.
• Creating opportunities where membership is not
  common.
• Leverage the differential opportunities of CURT
  and the LUCs.

5
Construction Industry Institute

• A consortium of leading owners, contractors,
  suppliers, and academia interested in improving
  the constructed project and the capital
  investment process.

6
CII Mission

• To improve the business effectiveness of the
  capital facilities life cycle, including safety,
  quality, schedule, cost effectiveness, security,
  reliability, and operability. Participation in
  CII provides members an opportunity for a
  competitive advantage in the global marketplace.

7
CII Vision

• CII is the recognized principle national forum
  for improving the life cycle effectiveness of
  capital investments and increasing the business
  success of member organizations. CII initiatives
  often lead to breakthroughs in the capital
  investment process. Construction industry
  leaders choose to be active CII members.

8
CII HistoryThe Connection to CURT

• The Business Roundtable Construction Industry
  Cost Effectiveness (CICE) Project recommended
  establishment of CII to address
• construction research
• fragmentation of the industry
• CII founded in 1983 by 22 companies.
• CII has evolved into a principal national forum
  for the construction industry as recommended by
  the CICE

9
CII Owner Members

• Dofasco
• Dow Chemical
• DuPont
• Eastman Chemical
• ExxonMobil
• GSA
• General Motors
• GlaxoSmithKline
• Intel
• Eli Lilly and Company
• Marathon Oil
• NASA
• Naval Facilities Engr Command

• 3M
• Abbott Labs
• Air Products Chemicals
• Allegheny Energy Supply
• Anheuser-Busch
• Aramco Services
• Bayer
• BP Amoco
• CITGO
• Cargill
• Celanese
• ChevronTexaco
• Conoco

10
CII Owner Members
Solutia Sunoco TVA U.S. Air Force Research
Lab U.S. Army Corps of Engineers U.S. Dept. of
Commerce/NIST U.S. Dept. of Energy U.S. Dept. of
State U.S. Steel Weyerhaeuser Company

• Ontario Power
• Petrobras
• Pfizer
• Phillips Petroleum
• Praxair
• Procter Gamble
• Reliant Energy
• Rohm and Haas
• Shell Oil
• Smithsonian Institution

11
CII Contractor Members
Chicago Bridge Iron Day Zimmermann Dick
Corporation Dillingham Construction Eichleay
EC Emerson Process Management Fluor
Daniel Foster Wheeler USA Fru-Con Graycor Hilti
Honeywell Jacobs

• ABB Lummus Global
• ALSTOM Power
• BEK
• BMW Constructors
• Baker Concrete
• Bechtel Group
• Black Veatch
• Burns McDonnell
• Burns and Roe
• Butler Manufacturing
• CCC Group
• CDI Engineering
• CH2M HILL

12
CII Contractor Members
SB SMS Demag Shaw Group Siemens
Westinghouse Structural Group Technip USA Turner
Construction Walbridge Aldinger Washington
Group Williams Group H. B. Zachry

• J. A. Jones
• Johnson Controls
• Kellogg Brown Root
• Kiewit Construction
• Kværner
• M. A. Mortenson
• PSEG Energy Technologies
• Parsons Energy Chemicals
• Primavera Systems
• Rust Constructors

13
Participating Universities

• -Arizona State
• Auburn
• -Cal-Berkeley
• Carnegie Mellon
• -Cincinnati
• -Clemson
• -Colorado
• Columbia
• Drexel
• -Florida
• -Georgia Tech
• Houston
• Illinois

-Polytechnic NY -Purdue San Jose
State -Stanford -Texas -Texas AM -Virginia
Tech UNLV -Washington -Wisconsin Worcester
Polytechnic Xavier
-Iowa State Kentucky Lehigh MIT Nevada New
Mexico North Carolina State -No. Dakota State
-Oklahoma State -Oregon State Penn State

• currently active on CII projects
• CURT member

14
CII Working Alliances

• American Bar Association Construction Industry
  Forum
• Associated General Contractors (AGC)
• Associated Builders and Contractors (ABC)
• Construction Users Roundtable (CURT)
• Engineering Construction Contracting (ECC)
  Conference
• European Construction Institute (ECI)
• Mechanical Contractors Association of America
  (MCAA)
• National Center for Construction Education
  Research (NCCER)
• National Science Foundation (NSF)
• Project Management Institute (PMI) (DPC-SIG)

15
CII Core Processes

• Research
• Implementation
• Education
• Benchmarking Metrics
• Globalization
• Breakthrough

16
Research Process

• Topic Selection
• Needs Survey
• Workshops
• RFP's Request for Proposals
• Board of Advisors approval
• Team creation
• Research
• Publish

17
Current Research Projects

• Zero Accidents Shutdowns/Turnarounds/Outages
• Evaluating Onsite Design
• Construction Supply Chain Performance
• Pre-assembly, Pre-fabrication, Modularization,
  Offsite Fabrication (PPMOF)
• Update Construction Technology Needs
• E-Commerce Applications
• Risk Analysis International Projects

18
Current Research Projects(continued)

• Shortage of Skilled U.S. Craft Workers
• Design Practices to Facilitate Automation
• Owners Role in Safety
• Lean Principles in Construction
• Value Engineering Toolkit
• Innovative Crew Scheduling

19
Proposed New Research Projects

• Optimize the Project Teams Contribution to
  Business Results
• Owners Role in Project Success
• Innovations in Behavior-Linked Compensation
• Learning from the European Labor Market
• Comparison of US/European Construction Practices
• Industry Approaches to Improve Construction
• Do It Right the First Time
• Commodity vs. Value-Added Contractor Services

20
Research Product Examples

• Research Summaries
• Research Reports
• Implementation Resources

21
Current Research Products

• 76 Research Summaries
• 102 Research Reports
• 40 Implementation Resources
• CII Construction CD 4.0
• Products Online
• products are accessible/downloadable by members
  via CII Web site.

Over 50 additional titles have been archived
by the CII Knowledge Committee, most published
prior to 1990.
22
CII Core Processes

• Research
• Implementation
• Education
• Benchmarking Metrics
• Globalization
• Breakthrough

23
Implementation

• Company responsibility
• Implementation Strategy Committee guidance
• CII staff support
• CII Education Short Courses available
• Implementation teams comprised of company
  participants

24
Implementation Support Programs

• Implementation Champions
• Experienced Users
• Virtual User Groups

25
Best Practice

• A process or method that, when executed
  effectively, leads to enhanced project
  performance.
• To qualify, a practice must be sufficiently
  proven through extensive industry use and/or
  validation.

26
CII Best Practices

• Partnering
• Quality Management
• Change Management
• Disputes Resolution
• Zero Accidents Techniques

• Pre-Project Planning
• Alignment
• Constructability
• Design Effectiveness
• Materials Mgmt
• Team Building

27
Safety PerformanceOwners Contractors
16
14.30
14.20
13.10
13.00
14
12.20
11.80
Industry
12
10.60
9.90
9.50
10
8.80
Est. 7.71
8.21
Recordable Incidence Rate per 200,000 work-hours
7.19
8
6.12
5.32
6
CII
4.31
3.44
4
3.00
2.66
2.30
1.06
1.67
1.59
1.60
2
0
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
325
413
477
497
527
613
644
770
518
765
995
864
Note Industry based on OSHA SIC 15
Year and Work-hours (MM)
28
Safety PerformanceOwners Contractors
8
6.80
6.79
7
6.10
5.80
6
5.50
5.50
Industry
4.90
5
4.50
4.40
4.00
Lost Workday Case Incidence Rate per 200,000
work-hours
Est. 3.55
3.67
4
3
1.90
1.55
2
1.45
1.14
0.81
CII
0.26
0.63
0.55
1
0.45
0.41
0.31
0.27
0
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
325
413
477
497
527
613
644
888
591
763
1,122
864
Note Industry based on OSHA SIC 15
Year and Work-hours (MM)
29
Proposed Best Practice

• A process or method that may become a CII Best
  Practice, but has not been sufficiently proven.

30
Proposed Best Practices

• Leader Selection
• Implementation of Products
• Lessons Learned
• Managing Workers' Compensation
• Environmental Remediation Management
• Design for Safety

• Early Estimating
• Planning for Start-Up
• Design for Maintainability
• Employee Incentives
• Management of Education and Training
• Organizational Work Structure

31
CII Core Processes

• Research
• Implementation
• Education
• Benchmarking Metrics
• Globalization
• Breakthrough

32
Education Tools

• Education Modules
• Technology Assisted Learning
• CII Short Courses
• Arizona State University
• Clemson University
• University of Texas

33
CII Core Processes

• Research
• Implementation
• Education
• Benchmarking Metrics
• Globalization
• Breakthrough

34
CII Benchmarking Database
1200
300
52.2B
290
1000
49.5B
250
39.8B
800
200
529
477
187
Number of Projects
Number of Projects
150
600
392
26.0B
145
132
100
400
215
11.6B
460
424
74
200
50
353
94
55
52
54
227
115
0
0
lt 15MM
15MM -
50MM -
gt 100MM
1996
1997
1998
1999
2000
50MM
100MM
350
International
342
300
294
250
229
200
Number of Projects
Domestic
150
760
130
100
50
63
42
46
38
34
0
Buildings
Heavy
Infrastructure
Light
Industrial
Industrial
35
CII BMM Database
36
Value of Best Practices
0.4
0.3
0.2
Better
0.1
Performance
0
-0.1
-0.2
4th Quartile
2nd Quartile
1st Quartile
3rd Quartile
High
Low
Practice Use
37
Pre-Project Planning
4th Quartile
2nd Quartile
3rd Quartile
1st Quartile
Project Cost Growth
Low
High
Pre-Project Planning Practice Use
38
Project Change Management
4th Quartile
3rd Quartile
2nd Quartile
1st Quartile
0.4
0.3
0.2
Project Cost Growth
0.1
0
-0.1
-0.2
Low
High
Project Change Management Practice Use
39
The Bottom Line

• Increased use of best practices
• Better project performance
• The ability to quantify the savings

40
CII Core Processes

• Research
• Implementation
• Education
• Benchmarking Metrics
• Globalization
• Breakthrough

41
Globalization Forums

• CII has presented forums on
• China (3)
• Brazil
• Far East
• Latin America
• Speakers share project experiences.
• Directory of experts compiled.

42
CII Core Processes

• Research
• Implementation
• Education
• Benchmarking Metrics
• Globalization
• Breakthrough

43
CII Breakthrough Activities

• FIATECH (Fully Integrated and Automated
  TECHnologies) consortium.
• Currently focusing on
• smart chips
• metal melding
• e-business

44
CII Today Providing Members with Value

• CII membership represents the best of the best.
• CII is a principal national forum for the
  industry.
• CII research benefits the entire industry.
• CII provides one-of-a-kind professional
  development to participants.
• CII members are getting more construction for
  the money.

45
Collaboration Opportunities
46
Collaboration Opportunities

• Regional Workshops
• Determine the trends and issues in the industry
• Help develop the annual list of research topics
  undertaken by CII
• Held in 4 Cities around U.S. annually
• Mini Workshop at CURT Conference in Tucson in
  November

47
Collaboration Opportunities

• Coordinating separate initiatives
• CIIs Owners Role is Construction Safety
  Performance
• CURTs Blueprint for Owner Involvement in Safety
  Performance
• CURTs Update of BRT Safety Doc A-3

48
Collaboration Opportunities

• Participation in research and education
  development
• By providing funding for topics of particular
  interest
• PMI (DPC SIG)
• NECA/MECA
• AGC Foundation

49
Participation Opportunities
50
Participation Opportunities

• Technology Assisted Learning
• Internet-based courses delivered by EduNeering
• 24/7
• CII Short Courses
• Arizona State University
• Clemson University
• University of Texas

51
Participation Opportunities

• Product Subscriber Program (PSP)
• Distribution of new products, same as CII members
• 2 Research Summaries
• 1 Research Report
• 2 Implementation Guides
• 1 BMM Publications
• 1 CII Annual Report
• Automatic notification of other CII activities

52
Participation Opportunities(PSP Cont)

• 2 Free registrations to Construction Project
  Improvement Conference (CPI)
• Annually in Austin, TX
• Repeat of CII Annual Conference
• Attendees mostly practitioners
• Open to general public
• Cost
• PSP 4,950 Annually
• CD 4,950 1st CD, 500 Annually for update

53
Participation Opportunities

• BMM
• Input up to 10 Projects
• Get all reports
• Use to compare and improve performance
• Cost
• 5000 Annually

54
CURT CIIJoint Statement of Cooperation

• Working Together to Improve Performance and
  Competitiveness of the North American
  Construction Industry