Month: November 2021

Construction Management

Working In and With 3D Environments to Deliver Better Outcomes for Lomans’ Clients

November 23, 2021 Gerri Nielson

Lomans are an end-to-end installation company in the Netherlands who work today on the smart buildings and sustainable installations of tomorrow. They have all construction specialities under one roof: electrical engineering, mechanical engineering and smart buildings. Their market extends to all types of buildings and their focus is on the long, and therefore, sustainable term. Lomans are familiar with all phases of the installation process when it comes to construction projects – from the design phase to operations and maintenance keeping a clear vision on implementing sustainable, innovative, and creative solutions. With mechanical, electrical and plumbing specialists in one place, the team at Lomans have experience working on a range of projects extending from distribution locations and offices to residential accommodation.

Company growth and different ways of working

Lomans have approximately 400 employees with an estimated 250 colleagues working in the field on construction project sites. Over the last few years, the company has seen stronger growth with more and more projects being added to their portfolio. However, this expansion created some issues when it came to managing their day-to-day processes on projects. Bas Spaan, Data and Information Manager for Lomans, says: “With our company growth it soon became clear that there was no standardised approach to the way in which we implemented and used digital solutions on our projects. We have a number of different departments here at Lomans and many of them were working in entirely different ways.”

For Bas, managing project data and ensuring teams had access to the most up-to-date and accurate project information became challenging. “In some cases email became our single source of truth for the project teams at Lomans but this was not at always reliable nor sustainable.” At a minimum, Bas estimates that most of the project document was saved in at least two different locations – ranging from local network drives to different collaboration platforms and document sharing websites.

Lomans splits their company into customer teams who focus on the end-to-end project delivery processes. Working in this way means all project collaborators engage directly as one group – for example commercial, maintenance, engineering and bid teams, bring the overall construction process together smoothly. They work on a variety of big and small projects. “Our teams were collectively brought together in a deliberate move to focus more on the outcomes we deliver as opposed to the disciplines we belong to. However, this process showed us even more acutely that we needed better tools to support us to work more collaboratively and started our journey towards digitalisation,” affirms Bas.

Lomans were already using Revit, one of the design products in Autodesk’s AEC collection, for their 3D modelling and coordination. Bas found that Revit provided data rich models which provided vital project insights, but this important information was not always accessible to everyone on a project.

“With the exception of modellers, the wider team members were completely blind when it came to the insights they needed on our projects.”

—Bas Spaan, Data and Information Manager, Lomans

“So, we needed to find a way to better share important project data in a straightforward way that didn’t add too much time and complexity,” says Bas.

“Prior to implementing Autodesk’s Construction Cloud platform, Lomans worked with several manual processes. We had team members who printed off 3D drawings and worked in a 2D way using 3D information, which was clearly not the vision we wanted for the company,” says Bas. “The process was time consuming and lengthy and, team members couldn’t always be sure they had u accurate and up to date project information. Getting our hands on key project insight was more complex than simply looking at a drawing.”

Choosing the right solution

Over the last few years, Loman’s set out their 2030 future vision to focus on using cloud solutions for their construction project data to collaborate seamlessly internally and externally on projects. The team started using Autodesk Construction Cloud’s BIM 360 platform as their common data environment in 2019. “Our long-term plan has always been to align and use Autodesk Construction Cloud products so when Autodesk Build was launched, we knew that was the direction we wanted to travel in,” says Bas.

“We know that in the future we’ll be working differently with technology. Soon, the computer will be telling us the best way to work, not the other way round! We have realised that working in a cloud environment is a fundamental element to moving closer to this reality.”

—Bas Spaan, Data and Information Manager, Lomans

“Autodesk’s reputation in the market gives us the assurance we need that they are the right cloud software provider for us,” says Bas. “Seeing the capability of Autodesk’s cloud and the work they’re involved in when it comes to shaping the future of our industry, it was totally clear that this was the right company for us to work with.” For Lomans, other providers offered them an end point solution but not a solution that enabled collaboration between the design, construction, and operation phases of their projects.

Sprinting to standardisation

The team at Lomans began using Autodesk Build in early 2021. They started by rolling out the technology on a team-by-team basis. “We actually started with the least digitalised team at Lomans when it came to the rollout of Autodesk Build,” says Bas. Rather than implement the technology on all projects at once, Bas and the team introduced the technology by adopting a ‘sprint’ methodology. This allowed the team to get familiar using one particular digital workflow or process in depth at a time and then move on to the next process from there. “Rolling out the technology in this way helped to reduce disruption to our current projects and enabled us to learn from the cloud environment and from each other,” says Bas.

All new projects were implemented using Autodesk Build’s cloud environment. The first team to use the technology worked on small retail projects which were usually shorter in length than some of Lomans’s bigger projects. Bas reflects; “We could iteratively use the digital workflows and build our knowledge out bit by bit. We were also able to test some of the more complex workflows like markups and revisions on smaller projects and learn quite quickly about what did and didn’t work.”

Getting the basics right

By adopting this approach Bas and the team could quickly identify the best practices Lomans wanted to take forward. They started with getting the basics right with document management, then built on workflows like revisions, markups, checklists and issues management. “Using small steps and starting with the basics when it came to document management has meant that we’ve been provided with invaluable learning time,” says Bas.

The team at Lomans now use Autodesk Build for all new construction projects. Project data is structured in a standardised way which means any new team members joining an ongoing construction project know exactly where to go in their common data environment for the relevant information to get up to speed. Bas aims to be able to support construction teams use the permission sharing features when collaborating with external partners. This will remove the risk around data regulations and ensures the internal project team at Lomans can feel confident that the right people have access to the right information at the right time.

“We decided to use Autodesk Build for an annual process we carry out in our retail teams,” says Bas. “This involves emergency lighting checks for over 800 shops that we manage. Prior to implementing Autodesk Build, this was an entirely paper-based process which was not only time consuming but also risky, as important information could be lost during this process.”

chieving the 2030 vision starts today

Looking to the future, Lomans plan to use more and more of the features and functionality that Autodesk Build offers including automating annual processes. Lomans are also investing in the optimal tools for their team when it comes to using Autodesk Build, which includes providing employees with laptops and smart devices. “The time our team has saved using the solution already has been immense,” says Bas. “Searching for documents is not only time consuming but also frustrating. The thinking that goes into this activity has also been removed,” reflects Bas. “Our teams can now focus on the value-added activities like making sure our projects are delivered to the best quality. We can also focus on more robust quality checks rather than wasting time on administrative tasks,” says Bas.

The vision for Lomans is that all projects will be live on Autodesk’s Construction Cloud and time will not be wasted searching for documents, looking for data or waiting for information to be provided. “For our team at Lomans, we’ve removed the need to search for documents on a project; they’ll be exactly where you need them to be,” states Bas.

For Bas, happy customers drive business growth so focusing on quality and implementing smarter ways of working will be invaluable for the team at Lomans. “Ultimately, our team’s expertise can be used to the best of their abilities. We can better support our customers to address their needs and solve their problems for improved outcomes,” says Bas.

The post Working In and With 3D Environments to Deliver Better Outcomes for Lomans’ Clients appeared first on Digital Builder.

Did you miss our previous article…
https://www.dennis-construction.com/?p=1208

4 Ways to Avoid Profitability Traps That May Be Costing You

November 23, 2021 Gerri Nielson

Maintaining profitability on any given project is a challenge that many AEC firms face. It’s no secret that the construction industry has some of the lowest margins out there; data from Camino Financial states that the construction industry has an average net profit margin of just 5%.

For this reason, teams are under immense pressure to meet project budgets. However, doing that can be a major challenge because construction projects face several profitability traps. These traps are present at all stages of a project and come in many forms—including inaccurate forecasting, data silos, lack of accountability, and so much more.

Image from Autodesk University 2021 session “How to Exceed Project Profit Margins by Maximizing Data and Workflows”.

To avoid these pitfalls, teams must centralize their workflows, standardize their practices, and connect project data to critical processes. In doing so, you can improve productivity and reduce delay, which ultimately results in higher profits.

One firm that’s gotten good at avoiding these profitability traps is BL Harbert, a construction firm based in Birmingham, Alabama. BL Harbert brings in about $1 billion in annual revenue and employs 8,000 staff members across the globe.

Dane Pemberton, the firm’s US Group Construction Technology Manager, delivered an very helpful industry at AU 2021 where he discussed how BL Habert improved profitability by maximizing data and workflows

Dane spoke with Esteban Corrales, Manager of Technical Solutions for Construction at Autodesk, and outlined the steps that the company took to streamline its process and maximize profits.

1. Create efficient processes to eliminate bottlenecks

There are plenty of bottlenecks that can slow the progress of construction projects. It could be a case of stakeholders unable to quickly find the info they need. Other times, there’s a lack of alignment between teams.

Whatever the situation, bottlenecks cause delays, which lead to higher costs and lower profits. As Dane puts it, “Bottlenecks affect productivity. And if your productivity is affected, your profit margins are affected as well.”

“Bottlenecks affect productivity. And if your productivity is affected, your profit margins are affected as well.”

—Dane Pemberton, US Group Construction Technology Mgr, BL Habert

One of the best ways to overcome project bottlenecks is to get all stakeholders on the same page using a common data environment (CDE). Avoid using point solutions or disconnected systems, as this will create silos and reduce efficiency. Instead, centralize your data and workflows and ensure that teams can access everything they need from a single platform.

“Centralizing our model and pulling everyone into a common environment was really important to us,” explains Dane. “And so Autodesk Construction Cloud, and the unified platform it provides, has been key in helping us in our centralization effort.”

You can also eliminate bottlenecks through standardization. By making sure that teams follow the same procedures—and those processes are carried out on the same platform—you can keep things moving along more smoothly.

As an example, Dane shares their previous process for handling RFIs, which involved a lot of back-and-forth between various stakeholders.

“We would encounter an issue on the job, and then a superintendent would pick up the phone to tell the project manager. That person would then write the RFI and relay it to the vendor or subcontractor, who’ll use their own system and coordinate with other stakeholders. Then they’ll turn around, and send it back to us.”

The process was quite disconnected and left plenty of room for miscommunication. So, the company adopted digital tools which streamlined the RFI process.

“Now, with Autodesk Build and [Autodesk] Construction Cloud, we have a more concise workflow. We have at least a central source for all the data to live. We have the connected workflows inside of Build that help us take a pen off a sheet, immediately click on that, create an RFI, send that out.”

Dane continues, “And the tracking process is seamless. We send it to users that are already in the system. They get notified via email or notification on their phone. And they can immediately answer or share it with other team members. It has helped create efficiency through connecting all those workflows together, plus centralizing and standardizing what the RFI form looks like, and what the process looks like.”

2. Establish clear accountability across teams

Promoting accountability ensures that project tasks and milestones are met. When everyone knows what they’re responsible for—and they are empowered to fulfill those responsibilities—projects run smoothly and you fall into fewer profitability traps.

One way to achieve better accountability is to improve visibility within your projects. As Esteban points out, “When all teams have visibility into what others are doing and what they need to do to hit their schedule marks and their budget, it creates accountability into a shared project goal.”

So, how do you promote higher visibility for your teams? Dane recommends establishing consistent project inputs and processes.

“All of our projects teams typically have a senior leader or project executive assigned to multiple projects. And so what we found is [that] building consistency across our projects helped tremendously in reducing audit time.”

Dane adds, “Now that they have consistency, they know exactly what they’re looking at. They can go right to the things that make sense. We have common filters and common sorts, and we can leverage the database to give us the information in a consistent manner. And that’s been tremendous.”

When BL Harbert implemented more consistency in its projects, the company achieved better visibility of issues and action items.

According to Dane, “Now any issue or any action item that is generated on a job happens in one central location, and has one very similar look. And we can break those types down—i.e., if they’re a coordination issue, a safety problem, or a quality issue. We have all that at our fingertips.”

3. Digitally connect workflows and data to cost activities

We can’t talk about profitability without discussing cost management. Properly managing project expenses leads to wiser spending, cost savings, and—you guessed it—higher profits.

One of the best things you can do to improve cost management is to do it all from a centralized and connected platform. By connecting workflows and data to cost activities, teams can find important financial data much quicker, thus enabling them to make smarter cost-based decisions.

At BL Harbert, Dane shares that they connected Autodesk Construction Cloud with their ERP system, and this allowed them to unlock massive efficiency gains and profitability.

“It’s extremely important to have consistency, especially when you’re managing cost,” says Dane, who recalls how they used to manage their costs using Excel and other disconnected tools.

“We used to have an Excel spreadsheet to manage projections. We would have calculations off to the side on a sheet of paper. We’d have invoices in a different system, trying to backtrack and figure out where costs went or where something got coded.”

Now, the teams at BL Harbert use Autodesk Construction Cloud. “We built an integration to our ERP system, and we’ve connected all of those aspects together. And just by going through some clicks in the system, and drilling down on certain areas inside the Budget tab of the Cost module, we’re able to drill down to some of those things.”

“We don’t have to print out a dozen reports, and enter in a different job number to then go and pull an Excel file. So it’s been extremely valuable to connect all those workflows together. That one is probably one of the biggest efficiency gains, in and of itself, that we’ve seen.”

4. Analyze data to proactively mitigate risk

A key benefit of connected workflows is better data visibility. Armed with the right data, teams will be able to gain useful insights that they can use to mitigate risk. The teams at BL Harbert use Autodesk’s Insights tools to bring data together in one place, which helps them understand project health and potential risks.

They can, for example, use AI and machine learning to identify RFI risk factors and use those insights in their decision-making.

And according to Dane, this is just the beginning. They intend to double down on data so they can further leverage it to grow the business.

“One of our biggest goals for the future is expansion. We want to continue to grow our technology footprint,” he shares.

“We want to continue to grow our utilization. We want to take advantage of what we know we have inside these systems, and really leverage the analytics to resolve company problems.”

Is Autodesk right for your projects?

Low profits don’t have to be the norm in your construction firm. You can unlock extensive profitability gains by streamlining and connecting your processes, promoting accountability, and leveraging data.

Autodesk Build can help you do all of the above and more. Request a demo today and someone on our team will get in touch. We’ll talk through where you’re at, where you want to go, and how Autodesk Build can help you get there.

The post 4 Ways to Avoid Profitability Traps That May Be Costing You appeared first on Digital Builder.

Construction Budgeting 101

November 18, 2021 Gerri Nielson

Your construction budget is one of the most important things to get right in any project. Poor budgeting leads to inaccurate estimates and error-prone forecasts, which can result in unfavorable project outcomes.

The lack of proper budgeting practices can also lead to communication breakdowns and misalignment. When your team members can’t get on the same page on project spending, you’re more likely to run into design, construction, and admin errors.

Ultimately, an inadequate construction budget leads to cost overruns, wasted time, and lower profit margins. For this reason, it’s important to understand and implement cost management best practices. It also helps to equip your teams with tools that can help keep your project’s financials in check.

In this post, we’ll go over all these points to give you a better understanding of construction budgeting and how to implement it. You’ll walk away with a solid grasp of budgeting fundamentals, along with tips to help you maintain strong profit margins throughout the lifecycle of your projects.

Construction budget basics

To successfully create your budget, you need to have good data, a reliable team, and a thorough understanding of the scope of work. When these components are in place, you’re better equipped to come up with accurate budgets and estimates.

Have access to the right data

You need to get your hands on accurate and up-to-date data; otherwise, you won’t be able to produce reliable estimates and projections. To that end, strive to create easy access to the most recent and relevant data possible.

Work with strong team members

The people with whom you collaborate can have a massive impact on the amount of money and time you spend on a project. See to it that you’re working with a qualified team of contractors and subcontractors.

Build relationships with people who are honest, transparent, and good at communicating. In addition to ensuring that you get the most accurate figures, these types of individuals make collaboration much easier. You’re less likely to run into miscommunication, which helps to avoid issues such as misaligned expectations and change orders.

Iron out the scope

Scope out the work as thoroughly as you can. Conduct a proper site inspection, and don’t shy away from asking detailed questions before drawing up an estimate. Get down to the nitty gritty if you have to. For example, make it a point to verify any unit prices on the budget that you can. The more accurate your estimates, the more satisfied everyone will be with outcomes because expectations were better set from the beginning. For best results, work closely with all stakeholders to determine the objectives, timelines, and deliverables of the project.

It takes a bit more work up front, but spending this time and effort in defining a job’s scope will enable you to create a detailed and accurate budget that’ll serve you and your teams as you go through the project lifecycle.

Preconstruction budget planning

A lot of budget-related activities take place during the preconstruction phase, and for good reason. Effective budgeting means planning your expenditures in advance and allocating your resources accordingly. By managing your budget during preconstruction, you’re able to consider the entire building process before breaking ground, ultimately helping you mitigate risks and cost overruns.

How preconstruction budget planning works

Generally speaking, the preconstruction budgeting process involves the following steps.

Conduct initial meetings: Teams kick off a project by holding a meeting (or a series of meetings) wherein the client and contractor discuss the objectives and other details of the particular construction project. The client may share an initial budget or figure that they have in mind for the job.

Come up with project estimates: This figure isn’t set in stone. The contractor must evaluate the details of the project—including specifications, market rates, and historical costs—to determine whether or not it’s feasible to complete the job with the given amount. At this stage, the contractor also needs to consider factors like material costs, subcontractor and labor expenses, and other contingencies to figure out how much they’re likely to spend.

Implement value engineering: Teams can also implement value engineering—the practice of maximizing value by optimizing each project’s component in relation to the cost. Contractors implementing value engineering must assess the functionality or value of different aspects of the job and allocate resources accordingly.

For example, if a client values sustainability in their projects, the contractor could optimize the budget so that it allocates more resources to the components that make the building eco-friendly, while at the same time finding cost-savings in other areas.

Different types of costs to consider

During the preconstruction budget planning stage, the costs that contractors have to consider typically fall into the following categories.

Administrative: Admin expenses cover design and engineering costs, along with other activities related to the management of project affairs (e.g., securing permits, drawing up paperwork, etc.)

Labor: Specialty contractors and the site crew all need to be paid, so ensure that you properly account for labor costs in your budget.

Preparation of the site: Any expenses incurred as part of site preparation should also be considered. These costs may include demolishing existing buildings and removing debris from the site.

Supplies and equipment: Costs under this category include any materials, equipment, and supplies necessary to build the project.

Consider the entire lifecycle of a project

When planning your expenses, it’s important to think about the entire lifecycle of the project and determine how much of the budget will be spent at each stage.

Design: This stage largely involves architects and members of the design team working together to come up with models for the project. Once everyone has signed off on the plans and specifications, the next task is to list the required materials and expenses necessary to procure them.

Preconstruction: Before breaking ground, stakeholders must first ensure that the site is prepared for construction. At this stage, activities such as soil testing, site inspections, and plan reviews would take place. Once these steps are complete, the budget, design, and schedule will be finalized.

Procurement: At the procurement phase, the team secures all the materials, supplies, and equipment required to build the project.

Construction:This is the actual execution of the job. At this point, construction crews make it to the job site to work on the building.

Closeout: Once the building is complete, the project enters the closeout stage. The construction site will be cleared up, equipment rentals will be returned, and the crew will be demobilized.

Common construction cost overruns

Here’s a not-so-fun fact: cost overruns are quite common in construction. KPMG found that just 31% of construction projects come within 10% of the budget, which means the sizable majority of projects exceed their original budget.

You can prevent this from happening by being aware of the most common reasons behind construction cost overruns and taking steps to mitigate them.

Inaccurate project estimates

Inaccurate estimates during the preconstruction process can lead to mismatched expectations regarding the project scope. When you underestimate the time and money it takes to complete a job or activity, you may end up spending more resources than originally planned and go over your budget. This can also negatively impact owner-contractor relationships.

The best way to prevent this is to set realistic and data-backed budget expectations during the preconstruction phase. Collaborate closely with all stakeholders to come up with the appropriate figures and always rely on data when making calculations.

Design errors

Poorly designed, inaccurate, or incomplete plan models will inevitably lead to delays and unnecessary costs down the line. This is why it’s essential for owners and contractors to be on the same page when discussing the scope and objectives of the job. During the design stage, ensure that all stakeholders are kept in the loop with all updates and changes.

It also helps to use technology. Digital models are much easier to update compared to paper documents. What’s more, digital solutions such as construction project management software streamline collaboration, issue detection and resolution, and progress tracking.

Unaddressed design errors can be expected to manifest in costly rework if discovered in any phase following design.

Change order errors

Change orders take place when the owner or contractor implements modifications to the project after the models and budgets have already been approved. Change orders, which can come in the form of new specs, fixes, and requirements, lead to changes in the budget, and often take additional resources to carry out.

It’s not easy to avoid change orders, but you can take steps to plan for them. During the budgeting stage, allocate time and resources for changes or disputes. Construction software can also come in handy here, as there are applications that can simulate scope changes during the preconstruction phase. This will help you anticipate different possibilities and budget accordingly.

dministrative errors

Admin errors are another common cause of construction overruns. Tasks related to scheduling, securing permits, and accounting can be quite complex. And if they’re done manually, it’s common for inefficiencies to perpetuate due to human error..

One of the best ways to avoid admin mistakes is to streamline various activities using technology. Integrated construction solutions, for instance, can automate data entry from one system to the next. In addition, project management software can improve visibility of data for administrators and ensure the accuracy of project documents.

Site management errors

As far as construction projects go, a lot of the action takes place on the job site, as this is where projects come to life. As such, job sites have many moving parts—you have your crew, equipment, supplies, and more.

Failing to manage any of the above components can lead to on-site conflict, delays, and additional expenses. Fortunately, these issues are easily preventable with proper communication. Keeping everyone aligned on the project specs, timelines, and budget will lead to a smoother experience for all stakeholders. When everyone knows what needs to be done and when they need to do it, you have stronger accountability and worker performance on-site.

How to resolve these common cost overruns? Build a good team.

You can have the best tools, materials, and resources at your fingertips, but these things are only as good as the people using them. That’s why it’s important to bring in the right people for the job. Take the time to vet and investigate your subcontractors, particularly in areas like trust and safety. Doing so will enable you to build a strong team from the get-go.

Technology for budgeting

Budgeting for construction projects isn’t easy, and this is where technology comes in.

Whether you need to streamline data entry and cost calculations or require better visibility into the different components of your projects, there are several technology solutions that can assist your workflows.

Bidding and estimating

During the bidding and estimating stage, contractors and estimators gather the necessary project details to form an accurate estimate and submit a bid. This process involves developing quantity takeoffs, gathering material prices, equipment costs, and more.

Bid management and estimating technology is meant to support a smoother preconstruction process. Functionality will depend on who is using it, and there are good solutions in the market for owners, general contractors, and specialty contractors.

Good bidding and estimating technology should:

Combine 2D and 3D quantification into a single solution to help you come up with highly accurate estimates and competitive bids.Quickly access drawing and model-based quantification workflows, so estimating teams can collaborate better.Connect builders and owners so both parties can implement a smooth bid and risk management process.Enable general contractors to discover specialty contractors, qualify them for projects, and manage invites and bid submissions.Enable specialty contractors to view, track, and handle all their bid invites from one place, so they can manage their workload and ensure that no job slips through the cracks.

Project management

Submittals

At the submittals phase, the contractor submits project documents (e.g. submittals package) to the architect and design team. The team will then review the package, and once approved, will share it with field teams.

Managing the submittals process is significantly more efficient nowadays with readily available technology. Without getting too into the weeds, good solutions use AI (algorithms) to read your specs and automatically pull action submittals, product data, and more. This makes generating submittal logs much easier by enabling teams to further streamline their process. They can efficiently coordinate and manage all submittals in a single submittal log in the cloud.

RFI Management

Much like submittals, managing RFIs is very important to budget given its impact on cost and schedule. According to Navigant Consulting Forum, a typical project receives an average of 796 RFIs. It can cost over $1080 to respond to each one of them. That means RFI’s on a single project could impact a project’s bottom line by up to $860,000.

Knowing that RFIs can incur such steep costs and create project delays while the RFI is being responded to, good RFI management solutions should help flag high-risk RFIs so you can prioritize which RFIs need action. RFI management software should also help you catch design issues earlier to improve handover from design to construction and avoid exponentially expensive design issues caught later in the process. Last, RFI software solutions can help you identify risk across multiple projects so you can proactively make decisions about how to handle RFIs before they pop up.

Cost management

Cost management is about controlling costs to keep a project’s budget on track. That’s often easier said than done, but remember that the goal is to stay within budget to achieve max profitability. Managing costs is necessary at all stages of a project and requires having systems in place to ensure that you’re meeting intended targets.

So, what does good cost management software do? It should make navigating cost-related decisions much easier by giving you the exact data you need, when you need it. That often equates to helping you create more dependable forecasts, make better decisions on tighter timelines, and ultimately, give you a stronger handle of a project’s financials at every phase.

To make all that possible, good cost management technology enables you to connect real-time project and field data with cost activities. This increases the viability of cost-related activities because you’re able to understand—and report on—the impact of these activities to your bottom line.

Considering how closely tied cost-activities are to schedule, project management software should also centralize your project schedules and better yet, allow you to connect schedule and cost data. This enables your team to connect the schedule with the entire project and share information instantly to prevent costly downtime or miscommunication.

Ready to level up your construction budgeting?

Construction budgeting can be an arduous task, but it doesn’t have to be.

You can take the stress and hassle out of budgeting and cost management if you work with metric-minded team members and communicate with them openly. You should also establish budgeting processes that are relatively simple to implement. No need to overwhelm your team if you’re just getting your budgeting practices sorted out. There will be an inevitable learning curve and it’s something everyone can benefit from. Finally, equip your teams with digital construction tools that can automate tedious tasks. You’ll promote collaboration, make better decisions, and provide better visibility into the impact of those decisions on construction budgets.

By taking these guidelines, you’ll be able to budget smarter, reduce cost overruns, and improve overall project outcomes.

If you’re looking for robust tools and a strong technology partner to help you improve your budgeting practices, check out Autodesk Construction Cloud. Find out why some of the world’s top construction owners and firms trust Autodesk to power their teams and projects.

The post Construction Budgeting 101 appeared first on Digital Builder.

Construction Services

50+ New Product Updates for Autodesk Construction Cloud

November 17, 2021 Gerri Nielson

Discover the latest updates to Autodesk’s construction software

Our product team continues to pinpoint valuable ways to improve your favorite Autodesk products. I’m excited to share the launch of over 50 new feature releases and enhancements across Autodesk Construction Cloud products.

From creating higher quality designs to speeding up RFI workflows, the latest product updates within Autodesk Construction Cloud can be found below.

Jump to releases by product:

Autodesk Construction Cloud Unified PlatformAutodesk BuildAutodesk BIM CollaborateAutodesk TakeoffBuildingConnected>Bid Board ProBIM 360Assemble

utodesk Construction Cloud Unified Platform

* = features on both Autodesk Construction Cloud unified platform & BIM 360

Dashboards | Additional Partner Cards

Both Autodesk Construction Cloud Unified Platform and BIM 360 users now see new partner cards for Aespada, DAQS.io, Embneusys, Geometrid, Oculo, Pronovos, Safe Site Check In, Structshare, Viact.ai, and WakeCap.

Dashboards | Send Dashboard as Reports*

Both Autodesk Construction Cloud unified platform and BIM 360 users can now share data from a dashboard within Insight as a PDF report to any external team members. A great example of this is if a general contractor wanted to share a dashboard view with an owner who did not have an account. This broadens visibility into project data and allows teams to create custom dashboards and easily share relevant views. Note: PDF reports of dashboards do not include partner cards in this initial release.

Dashboards | Unified Account Level UI Enhancements

From within the Executive Overview dashboards within Insight, both Autodesk Construction Cloud unified platform and BIM 360 users now see a consistent UI to help indicate that all projects shown on this overview list are pulled from projects across both BIM 360 and ACC. This ensures that executives see a holistic view of all projects, regardless of the product used, and help improve the migration experience.

Desktop Connector | Non-Conforming File Validation*

Autodesk Construction Cloud unified platform and BIM 360 users now have the ability to select specific files, and put them through the naming validation tool to rename them in order to meet the project’s naming standard in Docs.

Desktop Connector | Right-click to Rename Files*

For any file, a user be able to right click and rename a file from Desktop Connector without needing to navigate to Docs in the web browser.

Files | Import/Export of Naming Standard*

As a project admin setting up the naming standard on a project, the admin now have the option to export a .xlsx template. They can also make adjustments to the naming standard attributes in MS Excel for ease of use and import to a single project or multiple projects.

Files | Improvements to ISE File & Folder Operations*

Autodesk Construction Cloud unified platform and BIM 360 users can now take advantage of ISO naming standards validation when moving or copying files from enforced to enforced folders and when making a file “current”. Additionally, users can now have their search results be a method to organize files for selection to move or copy to an enforced folder.

Files | Open and Edit DWG with AutoCAD (web app)

From within Files, users can now right click on a .dwg file type to open the drawing within the AutoCAD web app, exposing the use of native AutoCAD tools (viewing and editing). NOTE: Once the file is clicked, a new tab is opened, exposing the AutoCAD web interface.

Library | Search & Sort

There is a new search bar as well as the option to sort within the account level library in the Autodesk Construction Cloud unified platform. This makes it easier to find library components so that teams can use consistent practices and drive standardization across all projects.

Reports | Issue Summary & Issue Detail Filter by Custom Attribute

Autodesk Construction Cloud unified platform users can now filter both the Issue Summary and Issue Detail reports by any custom attribute. This allows teams to run more specific reports that are catered to the way individual companies track issues.

Reports | Logo Management

Project Admins can now customize the logo that shows up on reports by either selecting the account logo or adding in a net new logo. This allows teams to improve the branding of their reports and provide clarity of ownership when sharing reports externally.

Reviews | Add Custom Attributes to Workflows*

The project admin can now add custom attributes to a workflow so that each review initiated has the custom attribute columns for the approve to complete as needed. Note: For BIM 360 users, only projects created after Mar 23, 2021 will have this feature.

utodesk Build

** = features in both Autodesk Build & BIM 360

*** = features in both Autodesk Build & PlanGrid

**** = Autodesk Docs feature (available across all unified products)

***** = features in both Autodesk Build and Autodesk BIM Collaborate

Note: This list is alphabetical. Please see this blog post for Autodesk Build updates organized by workflow.

Assets | Bulk Edits on Web & Mobile

Within Autodesk Build or the PlanGrid Build mobile app, teams can now make bulk edits to a selected group of assets by simply scanning barcodes, QR codes, or NFC tags in sequence. This allows teams to better standardize information and make updates faster.

Assets | NFC Support

In addition to using barcode / QR code scanning within the Assets tool of Autodesk Build, users can now use Near Field Communication technology to pull up detailed asset information. This saves teams time since they can simply set a device within range of the asset, and all asset related information stored within the PlanGrid Build mobile app will instantly appear.

Assets | RFI References

Within the Assets tool flyout panel, teams now see an added reference option for RFI’s. This means that users can link a specific asset to an RFI, connecting information and making it more accessible throughout both the assets and RFI workflow. Note: Mobile functionality will come by the end of the month.

Assets | Schedule References

Within the Assets tool flyout panel, teams now see an added reference option for Schedule. This means that users can link a specific asset to schedule item which gives visibility into where an asset status is in relation to the broader project schedule. Having this level of visibility helps teams better plan and forecast dates. Note: Mobile functionality will come by the end of the month.

Bridge | Automatic Sheet Sharing

As a follow up to the ability to share sheets across accounts (released in July 2021), team members can now specify certain sheets that they are sharing to automatically update when a new version is published. This ensures teams, even if they are from different companies or using different accounts, are always looking at the most up to date sheet information. NOTE: We are currently working on building up the feature functionality of the Bridge tool. Please watch for more enhancements to Bridge in future releases.

Bridge | Import Functionality

Within the ‘Incoming’ tab of Bridge, Autodesk Build users see a new option to ‘Import’ and select sheets from other projects, in which they are also a member, to add to their current project. This improves cross-team and cross-project collaboration, and gives users the ability to surface relevant information to their teams. NOTE: We are currently working on building up the feature functionality of the Bridge tool. Please watch for more enhancements to Bridge in future releases.

Cost Management | Enhanced Document Review Functionality**

Autodesk Build and BIM 360 Cost Management users can open and edit Microsoft Word documents online directly from the document package section within the items details flyout panel, enhancing and accelerating the document review processes.

Cost Management | Expense Photo References

Autodesk Build Cost Management users can now add photo references (e.g., delivery tickets, receipts, etc.) to expenses, ensuring accounting has what they need to process payments.

Cost Management | Home Page**

Autodesk Build and BIM 360 Cost Management users now have access to a new Home Page within Cost Management, displaying an aggregated calendar view of important dates across the system for increased visibility.

Cost Management | Issue to Potential Change Order

Expanding on the ability to create a Potential Change Order (PCO) from an RFI or Submittal Item, Autodesk Build Cost Management users can generate a PCO directly from Issue. Continuing to help teams capture the origin of change orders.

Data Connector | Photos Data

Autodesk Build users can now extract Photos data using the Data Connector. This is especially important to teams tracking quality and safety and wanting to see details around things like how many photos have been captured.

Data Connector | Progress Tracking Data

Autodesk Build users can now extract Progress Tracking data using the Data Connector. This gives teams the ability to create custom dashboards around the use of Progress Tracking and further analyze installation progress of objects on a project using other BI tools.

Handover | Files & Issues in As Built Export

Autodesk Build users can now export Files and Issues data as a part of the As Built Export tool. This adds to the RFI, Submittals, and Sheets download that was currently available and further improves the handover process by saving time, enhancing documentation accuracy, and improving owner satisfaction. Note: Files data will not be available until the end of November.

Issues | Add reference to submittals, forms, PCOs

In addition to the existing ability to link photos, files, RFIs and assets, user can now also add a reference to submittals, forms and PCOs, directly from the issue. This way, teams ensure even more of the issue’s context gets captured.

Meetings | Upload Attachments Directly from Computer*****

Users can upload and remove attachments directly from their PC. Attachments can be added at a meeting or at an item level. This ensures up-to-date information is shared and reviewed during the meeting.

RFIs | Roles and Companies as Users

Within each RFI, all roles and companies can now be specified as a watcher or co-reviewer. This release improves ease of use when creating, editing, or assigning RFIs.

RFIs | Short RFI Creation on Mobile

Users have the option to create an RFI by simply filling out the information for three fields: RFI title, question, and photos. This feature allows users to save time on RFI creation in the field.

RFIs | Step Back From Manager to Subcontractor

This feature allows RFI managers to request additional information from subcontractors by sending the RFI back to the sub. This release helps to speed up the RFI workflow by making sure necessary changes are made in a timely manner.

Schedule | Add Cost reference

Users can reference cost items from the cost management tool to an activity in schedule.

Schedule | Enhanced iOS support

iOS users can filter schedule information by Activity codes/ Outline codes imported from the schedule authoring tools. Allowing teams to find the right information, faster.

Schedule | Suggestions [coming soon]

Users with the right permissions can now submit an update suggestion on an activity to the schedule manager, improving communication across stakeholders. The schedule managers can review, approve or reject the suggestions. The schedule manager must update the master schedule in the schedule authoring tool to ensure the latest schedule is imported into Autodesk Build.

Submittals | Import Enhancements

During the upload process, Autodesk Build users get a new processing loader which can be referred to as a progress bar. This release supports a friendlier and more transparent import process.

Submittals | Project Home Support on Mobile

Users can now view a submittals work status card on iOS & Android. This allows access to critical and actionable information faster from any device at any time.

Submittals | Report Enhancements

From the Submittal tool, users can generate both the detail and summary reports, and have the option to include specific submittal items when exporting the report. Report enhancements now also include a single item report that can be generated from the action menu. Users can also copy a public link to share the report from the panel once the report has been generated. These enhancements allow customers to have more flexibility when exporting submittal reports.

Submittals | Review & Annotate PDF Attachments

Autodesk Build users now can view and annotate submittals, such as adding an approval stamp (image stamp), text, arrow, cloud, highlighter and various shapes directly in Autodesk Build. This enables a faster and more efficient review process.

Submittals | Upload Attachments from Files or from Computer

Autodesk Build users can select up to 10 existing files from Autodesk Docs and attach it to the specific submittal item. Now, Document Management and Project Management workflows are even more connected.

Learn more about this month’s product releases specific to Autodesk Build in this blog post.

utodesk BIM Collaborate

****** = features in both Autodesk BIM Collaborate and BIM 360

Change Analysis | Easier navigation

Design changes are now more easily managed and analyzed with a new experience that allows users to select the models they want to compare and quickly apply filters by discipline, category or modification type (shape, property, transform). Teams now have more control over the changes they decide to focus on and how those changes affect them.

Change Analysis | Review of non-consecutive designs

Previously, architects and engineers who review design changes before consuming them could only review the differences between the new design and the last design. Now, any design from the past can be reviewed alongside the latest.

Go Online | Revit Issues Add-In******

Architects, engineers, and BIM managers using Revit can immediately access issues, clash information, and models from cloud applications like Autodesk BIM Collaborate or Autodesk Docs. When an issue gets resolved in Revit, designers can use this quick link to access related files or check their work against other models using the clash matrix—making it easier to create high quality designs.

Model Coordination | Advanced grouping******

Group clash results with a greater level of granularity with advanced grouping capabilities. Now, clashes can be grouped by any property of a clashing object. Choose standard properties or custom ones to group and organize clashes for faster clearing and resolution.

Model Coordination | IFC, NWC, and VUE File Support******

With the added support of NWC and VUE files and extended support for IFC files for automatic clash detection or model aggregation, Autodesk BIM Collaborate offers greater flexibility for BIM managers, design teams, and trade partners to engage in model coordination.

utodesk Takeoff

Snapshots

Autodesk Takeoff users can preserve critical information including sheets and/or models along with associated takeoffs and inventory within a project at a given point in time. Users can access saved snapshots to view prior versions of takeoffs and inventory for a specific milestone or other key events. These stored references provide estimators confidence in their work by citing key information critical to the takeoff detail.

Flexible Output for Takeoff Types

Users can assign a code from both primary and secondary classification system to any output (primary or unlimited “additional” outputs) when creating takeoff types. The classification field is now optional, allowing estimators to create takeoffs faster when needed. The outputs not classified are automatically grouped as “unassigned” to make it easier for users to track and reassign later if needed. Each output can be assigned up to 2 classification codes—one from each classification system uploaded.

Inventory Enhancement

Users can view information from both primary and secondary classifications at the same time in the inventory panel. Multiple outputs can be seen together, grouped by takeoff type, when appropriate. A new grouping has been created in the inventory for “unassigned” outputs. Location information is also surfaced in the inventory panel.

Locations Support

Users can assign takeoffs to specific locations created in the “Project Admin” tool so quantities can be assigned accordingly. Whether you are allocating quantities by Floors, Levels, Phases or Zones, locations are a great way to organize your takeoff inventory.

BuildingConnected

Bid Board Pro

Opportunity Rules

Users can create opportunity rules (“if/then” statements) to help organize opportunities and filter out junk invites by either applying tags or removing followers. This helps to streamline the Bid Board experience and remove unwanted invites automatically.

BIM 360

****** = features in both Autodesk BIM Collaborate and BIM 360

Daily Logs | XLS Report from Field Management******

BIM 360 users can now export the activity log of any daily log. The export includes timestamp, user, activity and before after status which makes it a full audit trail useful in case any disputes arise.

Dashboards | Permission Changes******

BIM 360 users can now control permission to view certain dashboards within BIM 360. This helps drive focus for team members and eliminate unnecessary dashboard views. Additionally, it gives more control to Project or Account Admins to filter only relevant information to team members. For more information view the FAQ on our Help Site.

ssemble

Expanded Support for Special Characters

Assemble has expanded support for Unicode characters for property names and values. Assemble users can now publish model properties names and values with expanded characters from desktop tools as well as Revit models from BIM 360 and Autodesk Docs. Users are also able to sync property values with expanded characters back to Revit.

Model Publishing Improvements

Continuing to build upon the recent enhancement of publishing Revit models from BIM 360 and Autodesk Docs to Assemble without the need of the Revit add-in, Assemble now supports importing Revit Cloud Workshare models as part of the cloud publishing workflow. By leveraging the common data environment, BIM/VDC Managers can ensure that everyone is working from the latest project documents.

Get the latest Autodesk Construction Cloud product updates

The post 50+ New Product Updates for Autodesk Construction Cloud appeared first on Digital Builder.

Construction Management

Autodesk Build Gets 25+ Product Updates, Features, and Enhancements

November 17, 2021 Gerri Nielson

See the latest updates to Autodesk Build

As Autodesk Build continues to support the successful management of projects around the world, we’ve been working behind the scenes to make it more powerful, more useful, and more valuable in its ability to connect teams to the data they need, when they need it.

In the last few months, our team has been preparing to release over 25 new updates, features, and enhancements this month—all geared towards helping you better connect your teams, data and processes. Check out the latest Autodesk Build releases below.

Jump to release details by type:

Highlighted Releases>Assets | NFC SupportCost Management | Home Page**Cost Management | Expense Photo ReferencesRFIs | Step Back from Manager to SubSchedule | Suggestions [coming soon]Submittals | Review and Annotate AttachmentsDocument Management Releases>Desktop Connector>Right Click to Rename FilesNon-conforming File ValidationFiles>Import/Export Naming Standard*Improvements to ISO File and Folder Operations*Open and Edit DWG with AutoCADReviews | Add Custom Attributes to WorkflowsCost Releases>Cost Management>Enhanced Document Review Functionality**Issue to Potential Change Order (PCO)Project Management Releases>Submittals>Import EnhancementProject Home Support on MobileUpload Attachments from Files or from ComputerRFIs>Roles and Companies as UsersShort RFI Creation on the mobileMeetings | Upload AttachmentsSchedule>Add Cost referenceEnhanced iOS supportQuality & Safety Management Releases>Issues | Add Reference to Submittals, Forms, PCOsStandardization Releases>Bridge>Automatic Sheet SharingImport FunctionalityLibrary | Search & SortData and Intelligence Releases>Dashboards>Additional Partner Cards*Send Dashboard as Reports*Unified Account Level UI Enhancements*Data Connector>PhotosProgress Tracking DataReports>Issue Summary and Issue Detail Filtering by Custom AttributeLogo ManagementSubmittals | Report EnhancementsProject Closeout and Handover Releases>Assets>Bulk Edits on Web & MobileRFI ReferencesSchedule ReferencesHandover | Files & Issues in As Built Export

* = features on both Autodesk Construction Cloud unified platform & BIM 360

** = features in both Autodesk Build & BIM 360

*** = features in both Autodesk Build & PlanGrid

**** = Autodesk Docs feature (available across all unified products)

***** = features in both Autodesk Build and Autodesk BIM Collaborate

Highlighted Releases

Assets | NFC Support

Cost Management | Home Page**

Cost Management | Expense Photo References

Autodesk Build Cost Management users can now add photo references (e.g., delivery tickets, receipts, etc.) to expenses, ensuring accounting has what they need to process payments.

RFIs | Step Back From Manager to Subcontractor

Schedule | Suggestions [coming soon]

Users with the right permissions can now submit update suggestions on an activity to the schedule manager, improving communication across stakeholders. The schedule managers can review, approve or reject the suggestions. The schedule manager must update the master schedule in the schedule authoring tool to ensure the latest schedule is imported into Autodesk Build.

Submittals | Review & Annotate PDF Attachments

Document Management Releases

Desktop Connector | Non-Conforming File Validation*

Desktop Connector | Right-click to Rename Files*

For any file, a user be able to right click and rename a file from Desktop Connector without needing to navigate to Docs in the web browser.

Files | Import/Export of Naming Standard*

Files | Improvements to ISE File & Folder Operations*

Autodesk Construction Cloud unified platform or BIM 360 users can now take advantage of ISO naming standards validation when moving or copying files from enforced to enforced folders and when making a file “current”. Additionally, users can now have their search results be a method to organize files for selection to move or copy to an enforced folder.

Files | Open and Edit DWG with AutoCAD (web app)

Reviews | Add Custom Attributes to Workflows*

Cost Releases

Cost Management | Enhanced Document Review Functionality**

Cost Management | Issue to Potential Change Order

Project Management Releases

Submittals | Import Enhancements

During the upload process, Autodesk Build users get a new processing loader which can be referred to as a progress bar. This release supports a friendlier and more transparent import process.

Submittals | Project Home Support on Mobile

Users can now view a submittals work status card on iOS & Android. This allows access to critical and actionable information faster from any device at any time.

Submittals | Upload Attachments from Files or from Computer

RFIs | Roles and Companies as Users

Within each RFI, all roles and companies can now be specified as a watcher or co-reviewer. This release improves ease of use when creating, editing, or assigning RFIs.

RFIs | Short RFI Creation on Mobile

Users have the option to create an RFI by simply filling out the information for three fields: RFI title, question, and photos. This feature allows users to save time on RFI creation in the field.

Meetings | Upload Attachments Directly from Computer*****

Schedule | Add Cost reference

Users can reference cost items from the cost management tool to an activity in schedule.

Schedule | Enhanced iOS support

iOS users can filter schedule information by Activity codes/ Outline codes imported from the schedule authoring tools. Allowing teams to find the right information, faster.

Quality & Safety Management Releases

Issues | Add reference to submittals, forms, PCOs

Standardization Releases

Bridge | Automatic Sheet Sharing

Bridge | Import Functionality

Library | Search & Sort

Data and Intelligence Releases

Dashboards | Additional Partner Cards*

Dashboards | Send Dashboard as Reports*

Dashboards | Unified Account Level UI Enhancements*

Data Connector | Photos Data

Data Connector | Progress Tracking Data

Reports | Issue Summary & Issue Detail Filter by Custom Attribute

Reports | Logo Management

Submittals | Report Enhancements

From the Submittal tool, users will be able to generate both the detail and summary reports, and have the option to include specific submittal items when exporting the report. Report enhancements now also include a single item report that can be generated from the action menu. Users can also copy a public link to share the report from the panel once the report has been generated. These enhancements allow customers to have more flexibility when exporting submittal reports.

Project Closeout and Handover Releases

Assets | Bulk Edits on Web & Mobile

Assets | RFI References

Assets | Schedule References

Handover | Files & Issues in As Built Export

To see the full list of our latest updates across all Autodesk Construction Cloud, please check out this blog post.

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The post Autodesk Build Gets 25+ Product Updates, Features, and Enhancements appeared first on Digital Builder.

Construction Management

Digital Builder Podcast Ep 22: How Specialty Contractors Can Navigate Contracts & Get Paid On Time

November 16, 2021 Gerri Nielson

In a perfect world, a contract should include a clear set of instructions that conveys well-defined expectations to all parties concerned. In reality, it’s often a monster document packed full of legalese that can be difficult to understand. This episode of Autodesk’s Digital Builder podcast addresses the most common challenges with contracts and how simple adjustments can ensure you fully understand what you’re signing. And of course, we cover steps to make sure you’re getting paid on time.

Listen to the episode now

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You can also listen to this episode on Apple Podcasts, Spotify, Stitcher, Google Podcasts, and anywhere else you get your podcasts.

On this podcast episode

Today’s guest, Karalynn Cromeens, Owner & Managing Partner at The Cromeens Law Firm, joins the show to share the steps everyone can take to make contracts more straightforward and less contentious.

We discuss:

The current state of construction contractsThe difference between secured and unsecured debtsHow to protect yourself when it comes to contracting and payment termsBest practices for handling change ordersConstruction technology and the future of contracting and payments

A contract should really be a tool to help everyone in the construction industry; it doesn’t have to be this monster document that you just hold your nose, sign, and hope for the best.” —Karalynn Cromeens, Owner & Managing Partner, The Cromeens Law Firm

4 tips for navigating contracts and getting paid on time

1. Understand the state of contracts and payment terms in construction

The current state of contracts and payment terms in construction leaves a lot to be desired, says Karalynn.

For starters, construction contracts have become increasingly complex, making it hard for all parties to get on the same page.

“The contract is supposed to be a clear set of instructions just like plans and specs, but it becomes this monster document that nobody understands and it’s not conveying expectations clearly.”

—Karalynn Cromeens, The Cromeens Law Firm

Karalynn also brought up the tendency of the industry to pass liability down the chain when drawing up contracts. Owners pass on certain risks (contractually) to general contractors, who may do the same thing when hiring specialty contractors.

These things are common in the AEC industry, particularly since construction professionals want to protect themselves when possible. However, these practices can create rifts in relationships and result in contentious situations.

For this reason, construction professionals must find better ways to craft and negotiate agreements. This starts with using contracts that people can easily comprehend.

“Let’s have a contract and ensure that everybody knows what it says,” says Karalynn.

She recalls her experience speaking with a fellow attorney who had to go through a 129-page subcontract that could have been cut down to ten pages.

“It’s all repetitive, it’s all legalese and there’s no reason for it. The contract should be a tool to help everyone in the construction industry understand the project’s requirements, deadlines, and terms. It doesn’t have to be this monster document that you just have to hold your nose and sign, then hope for the best.”

Karalynn also emphasizes the importance of negotiating who takes on certain risks and liabilities. “I’m not saying that the subs don’t take any liability or the general contractor doesn’t take any liability from the owner; I’m saying let’s negotiate. Let’s meet in the middle. Which is what it’s supposed to be.”

Taking these steps, states Karalynn, helps parties negotiate more equitable contracts and forge better relationships—something that’s crucial, especially since construction is such a relationship-centric industry.

2. Make sense of your contracts

The shifting of risk and liabilities is a very common practice when drafting contracts. After all, everyone is trying to protect themselves. That said, contracting can be done fairly so that relationships aren’t taken advantage of, and risk isn’t pushed downstream.

As the host of “Quit Getting Screwed,” a podcast that focuses on helping contractors build better businesses, Karalynn is well-versed in construction contracts and she offers valuable advice to help contractors understand the agreements that they’re signing.

Know the different types of contracts

There are different types of contracts drawn up between owners, general contractors, and specialty contractors. According to Karalynn, contractors must understand these various documents and how they relate to each party.

First, there’s the prime contract, which is the agreement that sets the terms between the owner and GC. The GC then hires contractors, which is where the subcontractor agreement comes into play.

This subcontractor agreement often “relegates the terms of the prime contract,” says Karalynn.

“What has happened and what has been happening as long as I’ve been reading subcontracts is on the first page of the subcontract, there’s a line that incorporates the terms of the prime contract. So these subcontractors, specialty contractors, or trade contractors are going to be held responsible and liable to the terms of the prime contract.”

The issue, she says, is that subcontractors often don’t see the prime contract so they don’t know what the document says and they’re unable to negotiate its terms.

Karalynn says it’s important for subcontractors to get ahold of the prime contract so they can understand exactly what they’re agreeing to.

Another common type of agreement is the Guaranteed Maximum Price (GMP) contract.

“What this tries to do is shift the risk of material price increases to the general contractor, and then from the general to the subs.”

The GMP contract can cause challenges if it doesn’t allow contractors to increase what they’re charging when material costs rise. For this reason, contractors need to be careful with the GMP agreement and negotiate terms to protect themselves.

Be aware of the “pay when paid” clause

Karalynn recommends being mindful of the “pay when paid” clause, which essentially means subcontractors won’t get paid until the GC is paid by the owner.

“So if you’re a subcontractor and you do the best outstanding job in the whole world and the GC tells you what a great job you did… That by itself is not enough to get paid if you have a ‘pay when paid clause’. You are relying on something to happen that you have no control over.”

She continues, “the owners [have] to pay the general contractor before the general [contractors have] the obligation to pay you, the sub. So really, if you sign a subcontract with a ‘pay when paid’ clause and you don’t negotiate, you should really have enough cash on hand to float that whole contract amount just in case.”

In these instances, you should negotiate and try to split the risk, says Karalynn.

“You can say, ‘If the GC is not paid by the owner within 30 days and it’s not my fault, you’ll pay me 50% of the payout. At least I can pay for my guys and I can make it a little longer without getting paid.’”

—Karalynn Cromeens, The Cromeens Law Firm

3. Learn how credit works in construction

The construction industry runs on credit. Owners often take out loans to fund projects, and they are extended credit to be able to do that. A similar thing happens with subcontractors, especially those working with a “pay when paid” clause.

As Karalynn puts it, “subcontractors and material suppliers supply the labor, supply the material and wait to get paid. And that is credit. You are owed a debt. So, if you work and wait to get paid you have extended credit.”

To ensure that you get paid, you need to understand the difference between unsecured and secured credit. Unsecured credit means the debt is not tied to any collateral. You can collect on the debt by taking things to court, obtaining a judgment, and finding assets to collect the amount owed.

Secured credit, on the other hand, is backed by collateral. A home mortgage is a common example of secured debt. Mortgage companies let buyers obtain a loan to purchase a house, and they hold the property as collateral.

“A mechanic’s lien works the same way,” says Karalynn. “If you do it right in your state and you file it on a project, you are now a secured creditor. The amount that you’re owed for labor and materials is secured by the property that you supplied them to.”

She adds, “You still have your unsecured debt claim against the GC or whoever hired you, but now you have a security interest in the property to the extent that you’re owed money for labor and materials supplied.”

4. Ensure you’ll be paid on time

While laws vary from one state to the next, there are a number of universal tips that you can implement to negotiate contracts and ensure you get paid on time. Here are Karalynn’s top recommendations.

Don’t just sign a contract—make sure you understand it

Even if you don’t want to negotiate, Karalynn says it’s worth having an attorney or legal professional break down what the contract means. “That way, you know what you’re agreeing to and you know what’s expected.”

At the very least, you must “understand what you’re agreeing to, and then you can go from there,” says Karalynn.

She continues, “Please, don’t just sign the contract. From my experience, the subcontract that comes over is the first offer. It is like paying the sticker price for a car. No one does that. And I think part of why subcontracts are in the state that they are in now, is that attorneys draft things that are the best for their client thinking that there’s going to be a negotiation. But subs were so afraid of not getting the work that they just signed the contracts, and now there’s a standard out there that’s one-sided.”

Get your change order costs covered

Karalynn says subcontractors must understand the change order provision in their contract and then negotiate before signing.

—Karalynn Cromeens, The Cromeens Law Firm

“What I like to do in my contracts is, if we can’t agree on a price, we’ll do costs plus a percentage—e.g., 15%, 10%, or whatever is agreed upon. That way, we don’t have this long, drawn-out negotiation. We just build in, ‘Okay. I’m going to give you a price. If you don’t like it, here’s the alternative.’”

Another tip? Before doing the work, have the actual change order form drafted and ensure that the costs for the work are outlined clearly. You also need to assure that all parties have signed it before working on the changes.

“Where most people get into trouble is that they don’t get it signed or they submit it after they do the work. When that happens, you’re just in somebody’s good graces to sign it for you because you’re really not going to get paid for that extra work if it’s not on a written change order,” says Karalynn.

ccount for market volatility

With material prices being so volatile right now, Karalynn says contractors and subcontractors need to account for increases in material and labor costs.

According to her, “you need to put on there that if the material prices escalate more than 2% or 3%, you’re going to be able to change your bid for that.”

“I also have guys that are putting shorter timelines on their bid—like 30 or 60 days—and if it’s not accepted by then, the bid is withdrawn. That’s just because the market is so volatile right now.”

Do an itemized bid

Always do an itemized bid, advises Karalynn. “You don’t want to just bid the whole scope and miss something and then you’re on the hook to do it. Because once you put a bid out there into the world, it is an offer that can be accepted. And once it’s accepted, you’re held liable to those terms.”

Another thing to keep in mind is that your bid can be different from the actual scope of the project. You need to remember that you’re not hired to do your bid, you’re hired to do the scope.

As Karalynn points out, “your bid no longer describes the work you were hired to do. The scope attached to the contract does. If those two things are different, you’re still held to the scope. So one of the things I tell my contractors is to read the scope as if it were a new project and make sure you get the same price.”

Utilize technology to save on attorney fees

Karalynn is all for using technology to help contractors put together contracts and make sure they get paid.

“There are so many great platforms out there that allow you to do everything electronically. A lot of times, you don’t get paid on time because not everything is in there or it’s not submitted correctly so that pushes you back another month. Technology helps eliminate all that. It has everything all in one place.”

Karalynn adds that technology not only helps attorneys do their jobs more efficiently, it could even lower your legal bills.

“I appreciate it so much as a lawyer that I don’t have to go through banker boxes looking for all the paper documents that go with a particular job. If I’m looking for something, I can search by keyword. It saves you so much in attorneys fees too, because I don’t have to spend time searching.”

Final words on contracts and timely payments

Navigating the realm of construction contracts, costs, and risks can be tricky, but understanding these things is key to getting paid on time. Before entering into an agreement, be sure to read and fully understand the terms of the contract, so you can negotiate accordingly.

Doing that is no easy task, which is why Karalynn says it’s extremely helpful to have “an attorney that’s a phone call away.”

“I don’t think people realize how much legal crosses over into the construction world. And often, you need somebody that’s going to answer the phone right away. You can’t wait two days, you can’t wait a week to get an answer. I think an attorney on call that is familiar with construction is a priceless tool in your toolbox.”

New podcast episode every two weeks

Autodesk’s Digital Builder podcast is hosted by me, Eric Thomas. New episodes go live every two weeks.

If you need to learn additional contracting and negotiation tactics, catch the full podcast episode of Digital Builder to hear more from Karalynn.

Listen to the Digital Builder Podcast on:

Apple PodcastsSpotifyStitcherGoogle Podcastsor wherever you listen to podcasts

The post Digital Builder Podcast Ep 22: How Specialty Contractors Can Navigate Contracts & Get Paid On Time appeared first on Digital Builder.

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Manage Changes, Don’t Let Them Manage You

November 13, 2021 Gerri Nielson

Nowadays, it’s not uncommon to be inundated with information highlighting the importance of collaboration and communication in design and construction projects. Naturally, most teams, if not all, have the goal of being proficient in these areas given that it’s key to successful outcomes and maintaining profit margin. However, it is also common for architecture and engineering, as well as general contracting firms, to struggle with precise and timely communication of changes.

An uncommunicated change in the design phase can cause several weeks’ delay resulting in thousands of dollars wasted. The further along the change goes unrecognized the greater the impact with potential outcome leading to stop construction for redesign, and on average of 35% of all construction projects will have a major change, according to Project Analysis Group. To help eliminate these challenges, it is recommended to implement change management. Effective change management enables better coordination leading to less risk in design, and improved quality in construction.

Change management with the Change Analysis tool

The Design Collaboration module in Autodesk BIM Collaborate offers the Change Analysis tool, which enables users to understand the design changes incurred on their projects. Teams can establish watch groups to closely monitor changes, configurable based on user criteria.

For example, a user can select watch groups for teams, models, or objects. Once a watch group is configured, the Change Analysis tool will share notifications automatically to the group about any changes impacting assets relevant to the group. Effectively making it easier to keep up with designs in continually evolving projects.

Change Analysis tool and watch groups in action

So, how does this show up in the real world? Here are a couple of cases studies where the Change Analysis tool and watch groups could have helped prevent negative outcomes.

Scenario #1: Design Phase

Consider an architect working on the design of the façade in a new building. The structural engineer on the same project decided to change the floor slabs, reducing them from 20 to 10cm from the façade edge because less space was needed for rebar.

This change looked pretty similar in the plan, but now the designed facade is 15cm distance from the slab causing a 5cm gap. The design team is using Design Collaboration to share information, but because there was no change management or watch group established, the change was missed when sharing the models with the greater team.

Eventually, when plans went to the main contractor, they realize the problem between the slab and the façade, but it’s too late. As a result, the design had to be updated leading to a 2-week delay.

If change management was implemented in this scenario, when the structural engineer’s new BIM Model was uploaded in Design Collaboration with the new slabs (and new dimensions), the architect would have automatically received a notification that something has changed, since the architect created a slab watch group. This change notification would have prompted the architect to go back to the design, and adapt the façade line to meet the new slabs design. Now, when the information is sent to the main contractor, the design is of much greater value because it’s inclusive of changes—which, in turn, reduces or eliminates delays.

Scenario #2: Preconstruction

Similar to the design phase, change management is equally important to the preconstruction phase. Consider a client went for a site walk, and requested a change to add a door to the facilities room. The architect made the change, and communicated it to the blockwork subcontractor to add the door on site. The architect also updated the drawings, but did not communicate the change to the broader team.

As a result, during model coordination the blockwork in the facilities room was set up as “frozen design”, and the services team were given the green light to start the manufacturing drawings. Because the architect did not communicate the change to the broader team there was no clash, and coordination ultimately missed this change.

This miss required a change order to be made for the design to be redone. New materials had to be ordered to site, and the removal and reinstallation had to be done delaying the project; costing time and money.

How could this negative outcome have been avoided?

In this scenario, it would have been recommended for the services team to create a watch group with the blockwork; let’s say they named the group “Blockwork Frozen”.

While the services team were working in the design, a notification would have appeared in Design Collaboration of a new model from blockwork with a change in the specific area that was “frozen”. The services team could have then requested more information from the blockwork subcontractor and client before going into manufacturing and installation. This approach would have resulted in no delay or unforeseen costs.

New features for change management

As depicted in the earlier case studies, it is imperative to establish a strategy for change management. The Change Dashboard in the Change Analysis tool provides users with a single view pane where they can see the changes as well as dive into details about those changes—giving immediately useful insight and flexibility in design. To further improve the Change Analysis tool, Autodesk just released a few new features:

Comparison of non-consecutive versions allows users to compare any two design versions of a project against one another. This benefit being the ability to track scope change, understand decisions made, and reference outdated designs. This gives the team more power to easily track how a project changes over time.

New viewer experience permits users more control on the comparison workflows and transparency in the selections of models for the viewer. It also offers flexibility to see changes by discipline with the object tree and flexibility to see changes with multiple attributes selected.

Filter improvements have been made to enable users to more easily see different changes by project attributes as well as provide a better experience overall when filtering. Users can now filter by discipline, modification type, and category. Users can also take advantage of the search function that permits filtering based on names of specific objects.

With the Change Analysis tool and these new features, users can now take even more control of the outcome of their projects, de-risk deadlines, and reduce waste. Considering from 2012 to 2015, just 25% of projects came within 10% of their original deadlines, having a tool that helps to mitigate unforeseen delays is critical.

During design and construction of buildings, making changes is an inevitable part of the process. The Change Analysis tool in Autodesk BIM Collaborate has been defined and designed to help users make sense and stay on top of all changes. It makes it easy to find and identify changes with automatic notifications, and the user interface improvements make it more intuitive for users to compare versions. Reach out today for a demo.

The post Manage Changes, Don’t Let Them Manage You appeared first on Digital Builder.

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Key Takeaways from Construction Cost Management Report by Dodge

November 13, 2021 Gerri Nielson

Cost management is key to ensuring construction projects stay on budget and on schedule. Yet many projects, as many as 33% come in over budget, as reported in the Construction Cost Management Report by Dodge Data & Analytics (Dodge). Surveyed contractors note that even among their best-performing projects, one out of five does not meet the budget requirements.

Efficiently tracking construction costs and monitoring risks make a big difference in maintaining budgets. Tracking costs and monitoring risks, however, requires a strong cost management discipline. Insights into current cost management practices can help fine-tune practices to build discipline. In this article, we’ll review highlights from the report and key takeaways to drive your cost management discipline.

Key takeaways

Owners and general contractors alike prefer a single primary tool for cost management, complimented by a limited number of third-party tools.Forecasting costs with real-time field data is the top future need for cost management.Alignment between owners and general contractors is critical to building an integrated cost management discipline, and revealed as an opportunity for both project teams and solution providers.Project-focused staff shows higher capability of being involved in cost management on a more holistic level. One reason is due to the ease in which technology allows this to happen.

Owners and contractors prefer a single cost management tool, yet most use more than one

Overall, owners, general contractors, and specialty contractors use more than one tool for cost management. Forty-four percent leverage more than one tool but lean on one as their primary. Thirty-three percent use two to five tools with none as their primary. Only 21% use one tool alone, while 5% use more than five tools with none as their primary.

For respondents in project-related roles, there is a strong preference for using a primary technology tool for cost-management-related challenges such as establishing a system of cost accounts, status reporting during a project, and identifying areas of the project that require more attention in real-time.

For best results from a primary cost management tool, prioritize ease of access and use.

We can see a consistent preference for having a primary cost management tool, yet just over a fourth of owners and contractors actually use one tool alone. The leading approach to construction cost management relies on a primary tool with supporting tools. For that reason, it’s important to choose a primary tool that allows you to connect your project data to cost activities and schedules. Integrations factor in here too to connect the field and office teams while avoiding data silos.

For best results from a primary cost management tool, prioritize ease of access and use. These solutions should connect to schedule and cost activities over the lifecycle of the project.

The Dodge report also indicates a preference for third-party tools among respondents. About 47% use third-party tools, with around 60% leaning on desktop applications and 40% using cloud-accessible ones. Thirty-two percent of owners and contractors use internally developed tools, and 16% use spreadsheets.

We’ll likely see the number of people using internally developed tools and spreadsheets decrease in the future due to the customization capabilities of third-party tools and the maintenance costs of homegrown solutions. Organizations can generate better cost-related outcomes for all involved partners by focusing on using fewer, more comprehensive tools that engage all stakeholders in a shared approach to cost management.

Success criteria for cost management solutions: what owners and general contractors expect

When measuring cost management success, respondents indicated that they use the following three metrics most frequently:

Turnaround time on processing change orders/variationsAchieving expected profit marginFinal cost compared to budgeted cost

Owners and contractors are split evenly on the subject of spending levels on cost management. Thirty-nine percent believe they are spending more than they should have to, 32% think they are spending the right amount, and 29% say they’re spending less than they should. In the subgroups, variation exists with owners more likely to believe they’re spending too much, especially those in public entities (55%). Contractors, on the other hand, especially those in trades, are the least likely to believe they are overspending (31%).

There is also a significant amount of variation between how owners and general contractors measure the success of cost management solutions. Owners cite the following metrics most frequently:

Final cost compared to budgeted cost (30%)Generating useful data to benchmark for future projects (26%)

In comparison, contractors pinpoint minimal unplanned changes as their top success criteria. These preferences align with the responsibilities of each role but also indicate a lack of synergy on what successful cost management means.

Forecasting costs with real-time field data in top future need for cost management

Respondents selected the most critical future need from 14 cost management practices. Thirty percent selected forecasting critical costs with real-time field data as the most important to improve over the next three to five years. This practice ranked number one across all four regions studied, with the United Kingdom selecting it most frequently (32%) and Canada choosing it least frequently (26%).

Other top future needs were dynamically tracking each dollar in budgets (29% overall) and managing collaborative workflows (26% overall). As with other areas surveyed, we can see variance between the subgroups. Owners are most interested in dynamically tracking budgets and using field data for forecasting. These are two cost management practices that are also beneficial to contractors.

Three times as many contractors (compared to owners) want to improve their future estimates. Twice as many want to benchmark cost performance. Again, these two practices are beneficial to owners yet appear to be more pressing needs for contractors.

Project teams could be more involved in cost management

One area of opportunity for construction firms is the greater involvement of project teams in cost management. The report emphasizes the ability of these teams to participate in an integrated approach to cost management. Dodge’s findings “indicate that project-focused staff are ready and able to participate in a more holistic and integrated approach instead of the traditional office-based function with just discrete, periodic inputs from the field.” This was made evident by project-based staff reporting:

Higher levels of cost management capabilitiesLower levels of difficulty with their most challenging cost management activitiesGreater satisfaction using technology to address them

These responses indicate a significant opportunity to improve cost management practices by involving capable, skilled staff in the process. Doing so will help to integrate the practice into a firm-wide discipline.

Owners and contractors have opportunity to align more

In the Dodge report, there are notable differences in priorities for owners and general contractors. For example, contractors note improving cash flow as a top need. Yet owners are more focused on improving their ability to forecast critical costs with real-time data from the field. Both of these areas require involvement from owners and general contractors. For example, cost flow contributes to the owner’s overall project health, and forecasting critical costs requires contractor participation.

Variations like the one mentioned above represent a need for greater owner and general contractor alignment. Getting on the same page about cost management success, tools, and priorities will power leaner construction and smoother workflows throughout all phases of a project.

From cost management insight to action

To move cost management forward, owners, contractors, and project staff need a comprehensive tool they can rely on to centralize and improve the visibility of related cost activities and risks. This tool should be equipped with capabilities to support the future top need of forecasting costs in the field with real-time data.

We understand how important an integrated, collaborative cost management discipline is to the health and success of your projects. If you’d like to see Autodesk Construction Cloud’s cost management offering,please contact us for a demo. We’d love to show you around.

The post Key Takeaways from Construction Cost Management Report by Dodge appeared first on Digital Builder.

Join Autodesk at The Buildings Show: A Construction Trade Show

November 11, 2021 Gerri Nielson

From December 1 – 3, Autodesk will be a proud sponsor at The Buildings Show in Toronto, one of North America’s largest construction trade shows. We’ll be hanging out on the trade show floor with a 20′ x 20′ booth and also presenting on the Demo Stage about our unified platform. The event is being held at the Metro Toronto Convention Centre and we’d love to answer all your Autodesk questions (and give you some good swag in the process).

The host, Buildings Canada, brings together a world-class construction, building and real estate network of the most established and reputable industry experts. Attend and you’ll enjoy speaker sessions, product demos, innovation awards, valuable education, and more.

The Buildings Show details

Date: December 1 – 3, 2021

Trade show hours: 9:30 am – 5pm ET & Friday 9 am – 1pm

Location: Metro Toronto Convention Centre

South Toronto, Canada

You can register here.

Don’t miss our presentation

One Source of Truth: Autodesk’s Unified Platform Build

Wednesday, December 1 – 11:30am to 12:00pm

Thursday, December 2 – 11:30am to 12:00pm

Autodesk Build delivers a broad, deep, and connected set of field execution and project management tools for builders in a single software platform that is easy to deploy, adopt and use. In our sessions, hear about Autodesk’s vision for construction management software and learn how Autodesk Build delivers field collaboration, project management, as well as document management, cost controls, turnover and insights… all managed together.

Find us on the floor

Make sure to visit us at booth #1613. Our 20’ x 20’ booth will be stacked with swag giveaways, raffles, and Autodesk experts ready to field questions. You also won’t want to miss Phil Deutsch, an amazing mentalist who will be entertaining visitors at the Autodesk booth on Dec 1 from 11:30 – 1 pm.

What is The Buildings Show?

From the event’s website, “Design, architecture, construction, renovation and property management professionals, experts and suppliers have come together at The Buildings Show, consisting of Construct Canada, PM Expo, HomeBuilder & Renovator Expo and World of Concrete Toronto Pavilion, for over 30 years. Get unparalleled opportunities to learn, lead and empower with cutting edge educational programming, product showcases and networking opportunities in a safe and secure environment.”

Why attend The Buildings Show?

From the organizer’s website, “The Buildings Show provides an unforgettable experience as North America’s largest event for products, services, educational programming and professional networking.” Buildings Canada is “proud to host this spectacular event for the design, construction and property management communities for over 30 years.

“You’ll expand your knowledge base, become a leader in your field and earn continuing education credits from BOMA, OAA, BSSB, CAHPI and ARIDO. The Buildings Show will provide opportunities and solutions for the industry to transact, learn and engage year-round through hybrid, online and in person experiences.”

How is The Buildings Show handling safety?

“The health and safety of attendees, speakers, exhibitors and partners is top priority. We will continue to closely monitor the situation around COVID-19 and will update you across our channels. For more information about Health & Safety protocols in place, please click here

“Proof of vaccination will be required to attend the in-person event.

Want to attend The Buildings Show?

You can register here. It’s an event construction professionals from around the globe make a point to attend and we’d love to see you there.

The post Join Autodesk at The Buildings Show: A Construction Trade Show appeared first on Digital Builder.

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