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Committee Presentation What the Data Tell Us Benchmarking & Metrics Committee CII Annual Conference Committee Presentation What the Data Tell Us Benchmarking & Metrics Committee CII Annual Conference Orlando, Florida July 31 – August 1, 2007 ®

Committee Roster Name Gibson, James B. (Jim) - Co. Ch Company Alstom Power Inc. Committee Roster Name Gibson, James B. (Jim) - Co. Ch Company Alstom Power Inc. Helland, Harold L. - Co. Ch Allmen, Carol Butts, Tom Caggiano, John J. (Joe) Chapman, Robert E. (Bob) Abbott General Motors Corporation CH 2 M HILL U. S. Army Corps of Engineers National Institute of Standards & Tech. Davis, Shari Dove, Ralph Mustang Engineering, L. P. CH 2 M HILL Gokey, Mark E. Green, Charles M. (Charlie) Herrington, Robert A. (Bob) Hile, David G. (Dave) Kass, Howard Neale, David Nielsen, Michael J. (Mike) Orellana, Roberto H. Perkins, David M. Pitcher, Jonathan D. (Jon) Schilhab, Richard B. (Brad) Scott, Danny Slaughter, James Warnock, Stephen D. (Steve) Woldy, Paul N. Bechtel Corporation Aramco Services Company Jacobs Black & Veatch National Aeronautics & Space Admin. Fluor Corporation Merck & Co. , Inc. The Procter & Gamble Company Rohm and Haas Company Eli Lilly and Company CB&I BE&K Engineering Company S&B Engineers and Constructors, Ltd. Washington Group International Inc. Chevron Corporation ®

CII Database 12 Years in the Making! International 292 (19%) Contractors 686 Domestic (44%) CII Database 12 Years in the Making! International 292 (19%) Contractors 686 Domestic (44%) Owners 876 (56%) 1, 270 (81%) ü 1, 562 projects ü Worth > $72 Billion ®

CII Database 69 146 1287 80 80 GR EE NL 70 AN 80 70 CII Database 69 146 1287 80 80 GR EE NL 70 AN 80 70 D 60 50 40 30 A T TROPIC OF CANCER 20 PACIFIC LA T 20 30 40 70 80 80 E 10 30 30 40 A INDIAN OCEAN 10 N 20 10 20 TROP OF CAPRICORN 80 60 70 33 70 80 ANTARCTICA 80 30 40 50 60 70 30 40 50 60 14 9 30 40 50 60 70 C 10 EQUATOR AUSTRALIA 50 60 30 AFRICA 10 20 40 50 40 PACIFIC OCEAN 20 20 TROPIC OF CAPRICORN 30 ASIA 20 IC SOUTH AMERICA 10 50 TROPIC OF CANCER O OCEAN R 30 EQUATOR 10 EU E OP 40 30 N 60 50 40 26 54 70 G 60 50 NORTH AMERICA 80 D AN NL E RE 70 60 10 56 40 50 12 50 60 60 70 70 80 80 ®

CII Database ® CII Database ®

Focus of Recent Years • Metrics Development – Productivity Measurement – Industry Specific Metrics Focus of Recent Years • Metrics Development – Productivity Measurement – Industry Specific Metrics – Performance & Practice Use Metrics • Systems Development – Online Data Collection & Reporting – Electronic Data Entry (XML) – Company Level Rollup Reports ®

2007 Focus – Analysis/Follow-up • What the Data Tell Us – Productivity Metrics Analysis 2007 Focus – Analysis/Follow-up • What the Data Tell Us – Productivity Metrics Analysis – Pharma Metrics Analysis – Value of Best Practices Analysis • Continue Systems Development – Electronic Data Entry (XML) – Downloadable Data Sheets for Company Use – Company Level Rollup Reports – Internal & External Comparisons • Continue Industry Specific Team Development – Pharma – Oil & Gas – Other? ®

Pharma Benchmarking Teams Owner Team • Abbott • Amgen • Biogen Idec • Bristol-Myers Pharma Benchmarking Teams Owner Team • Abbott • Amgen • Biogen Idec • Bristol-Myers Squibb • Eli Lilly and Company • Genentech • Glaxo. Smith. Kline • Johnson & Johnson • Merck • Wyeth-Ayerst Laboratories ® Analysis & Team Development

Pharma Metrics Analysis • What Distinguishes 1 Q Performers? • What is Project Success? Pharma Metrics Analysis • What Distinguishes 1 Q Performers? • What is Project Success? • How to Summarize All of This Data and Make It Useful For Management? ® Analysis

Industry Specific Metrics for Oil & Gas (Downstream) • Complete first round of data Industry Specific Metrics for Oil & Gas (Downstream) • Complete first round of data collection and validation • Perform data review with team • Define & develop reports • Assess and renew • Increase participation Collect/Validate Data & Team Development Current Team Aramco Chevron CITGO Marathon Oil Shell Oil Petrobras

Deliver on Existing & Pending Contracts • COAA – Benchmarking Oil Sands Projects • Deliver on Existing & Pending Contracts • COAA – Benchmarking Oil Sands Projects • NIST Study on Productivity, Technology & Practice Use ® Collect/Validate Data & Analysis

Value of Best Practices Study Joint Committee Team • Benchmarking & Metrics Committee • Value of Best Practices Study Joint Committee Team • Benchmarking & Metrics Committee • Implementation Strategy Committee • Knowledge Management Committee – Kim Allen – CII – Carol Allmen – General Motors – Tom Butts – CH 2 M Hill – Eskil Carlsson – CSA Group – Paul Chinowsky – University of Colorado – Shari Davis – Mustang Enginering – Jim Gibson – Alstom Power Inc – Charles Green – Aramco Services Company – Harold Helland – Abbott – Bob Herrington – Jacobs – Jay Hoover – NASA – Bill Kelly – University of Texas – Sang-Hoon Lee – University of Houston – Bill Mogan – Harper Industries – Mike Nielsen – Merck – Jon Pitcher – Eli Lilly – Danny Scott – BE&K Engineering – Paul Woldy – Chevron

Value of Best Practices Study List of Best Practices • Change Management • Disputes Value of Best Practices Study List of Best Practices • Change Management • Disputes Resolution & Prevention • Front End Planning • Project Delivery & Contract • Constructability • Zero Accident Tech Strategy • Project Risk Assessment • Benchmarking & Metrics • Alignment During PPP • Planning for Start-up • Team Building • Partnering Collect/Validate Data & Analysis

Productivity Metrics Analysis What the Data Tell Us • Quantity Based Engineering Productivity Measurement Productivity Metrics Analysis What the Data Tell Us • Quantity Based Engineering Productivity Measurement Works: The Relationships Are Strong! • Engineering Productivity is Significantly Influenced by Design Quantity: Trend Drivers are Being Identified. • Project characteristics such as project type, contract type, project size and main driver significantly impact engineering productivity. ® Analysis

Productivity Metrics Analysis What the Data Tell Us • Implementation of 2 D and Productivity Metrics Analysis What the Data Tell Us • Implementation of 2 D and 3 D design platforms have a substantial impact on engineering productivity (surprising findings). • Project location affects both engineering and construction productivity • Construction and engineering productivity is impacted by the amount of overlap between the two phases. ® Analysis

2007 Focus – Analysis • What the Data Tell Us – Productivity Metrics Analysis 2007 Focus – Analysis • What the Data Tell Us – Productivity Metrics Analysis – Pharma Metrics Analysis – Value of Best Practices • Systems Development – Electronic Data Entry (XML) – Downloadable Data Sheets for Company Use – Company Level Rollup Reports – Internal & External Comparisons • Team Development of Specific Metrics Programs – Pharma – Oil & Gas – Other? ®