aconex connected cost webinar - drive project performance
TRANSCRIPT
CONFIDENTIAL | 1
Featured Project:
Marina Bay Sands Casino Resort, Singapore
Connecting teams project-wide
Aconex Connected CostDrive Project Performance
Guy Barlow
Global Commercial Director
Aconex
20 November 2017
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Current approaches are flawed, wasteful & not sustainable
“A 1% reduction in costs would save the construction industry approximately $100 billion annually”
•Average project cost overrun is 70%•Prices of construction projects have risen faster than the consumer price index
+70%
Increasing Overruns & Costs
•Share price drop of 12% after a significant negative project event •Infrastructure projects are more exposed to political & economic risks
-12%
Growing Risks
•Only 1% in productivity gains over 20 years
•Reasonable productivity growth could add $1.6T to the industry
+1%
StagnantProductivity
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RFIs Change Orders & Variations
Payment ApplicationsTransmittals & Doc Distribution
Checklists & Punch ListsBid & Tender Management
Inefficient & Broken Processes
Disconnected, substandard project controls leave youuncertain and exposed
InformationSilos
Poor/FailingPerformance
CAN’T make informed decisions or take action
➕ =Estimates
Budgets
Actuals
Commit-ments
Schedule
Contracts
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Collaboration drives productivity & efficiency
As organisations evolve and collaboration platforms are adopted, there is clear evidence that processes become more efficient.
• Reduced costs• Shorter time• Lower risk
Evolution of the ANZ and Asia region’s airport project network – 173 projects, 3,529 participating organisations and 5.2M mails. This graph demonstrates how RFI processes have improved over a 7 year period.
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Are you confident and in control?
5
• Capture all project processes?
• Is information credible?
• At the right level?
• Real-time?
5.4%of projects meet
“best in class” for cost and schedule
Source: “Correcting the Course of Capital Projects”, PwC, 2016
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Manage, measure & report on project performance with confidence
•Every project member connected through key processes
•Accessible from anywhere – the office or the field
•Easy to use, intuitive and dynamic
Project-wide Collaboration
1
•Line-of-sight into issues; red flags are raised early•Quickly build customizable reports•Measure performance at the project and portfolio level
Early Warnings & Predictive Insights
3
•Full cost capabilities – budgeting, forecasting, variance, payments, etc.
•Flexible contracts & change management processes
•Planning & scheduling integration
Integrated Cost Controls
2
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Owner
GC
Subcontractors
Suppliers
PROJECT-WIDE COLLABORATIONA complete view of cost across the value chain
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INTEGRATED PROJECT
CONTROLSPLATFORM
Roy Hill Mine| Newman, Australia| US$10 billion
Schedule Integration
CostManagement
Handover to O&M
Bids &Tenders
ConnectedBIM
Design Document Reviews
Inspections, Quality & Safety
Submittals & Transmittals
Shop Drawing Reviews
Daily Site Reports
Requests For Information
Construction
Process
Platform
Insights & Reporting
Workflow Management
CONFIDENTIAL | 9Roy Hill Mine| Newman, Australia| US$10 billion
EARLY WARNINGS & PREDICTIVE
INSIGHTS
Monitor & Manage
KPIs
Dynamic & Timely
Reporting
Discover & Action
Key Analytics
Configure & Rollout
Dashboards
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Every project member on a connected platform with a single view
Project-wide Collaboration
Line-of-sight into issues
Early Warnings & Predictive Insights
Unified project controls for a single view of project performance
Integrated Project Controls
Connected Cost: Measure performance with confidence A modern collaborative project controls solution integrating cost, schedule, contracts & project information portfolio-wide.
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✓ Contracts administration
✓ Payment applications✓ Change management✓ Month-end
coordination tools✓ Back-end integrations
Contract Management: Keep projects moving with a single view across all contracts
• Avoid disputes with streamlined subcontractor management
• Minimize month-end chaos
• Focus on strategic activities & productivity
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✓ Actuals & commitments✓ Approved &pending contract changes✓ ETC & EAC✓ Variance✓ Percent complete: schedule,
cost, hours
Budgeting & Forecasting: Minimize project delays and cost overruns
• A single view across budget, changes, cost, & schedule
• Forecast accurately with unified processes & captured change
• Avoid duplicate data with ERP integration
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✓ Progress tracking at any level of the WBS
✓ View current period, to date, & at completion
✓ Performance metrics, including earned value
Variance Analysis: Measure program performance with confidence
• Early warnings to fix problems before they get out of hand
• Identify red flags at any level of detail
• Configurable variance thresholds
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Reporting & dashboards:✓ Actuals, changes, commitments✓ Control accounts✓ Rules of credit✓ Time phased data✓ Variance
Reporting: Gain early visibility for better decision making
• Industry standard reports with user-defined parameters
• Create reports in minutes with the point-and-click builder
• Gain insights across cost, hours, variance, and progress
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1. Single source of the truth – reality sets in when it’s time to report out
2. Connect schedule and cost – without it, the true effect of change is impossible
3. Flexible and scalable systems – your projects and business will change over time
4. Effective change management – manage change, from initiation to resolution
5. Informed decision making – get the facts, real-time & take the time
5 Ways to Minimize Complexity
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Featured Project:
Marina Bay Sands Casino Resort, Singapore
Connecting teams project-wide
Thank you.