What Can CII Do For You First-Time Attendee

What Can CII Do For You? First-Time Attendee Orientation Ken Eickmann Director Construction Industry Institute Annual Conference 2001

CII Mission To improve the safety, quality, schedule, and cost effectiveness of the capital investment process through research and implementation support for the purpose of providing a competitive advantage to its members in the global marketplace. CII 2001

CII Owner Members 3 M Abbott Labs Dofasco Air Products & Chemicals Dow Chemical Anheuser-Busch Du. Pont Aramco Services Eastman Chemical BP Amoco Exxon. Mobil Bayer FPL Energy Boeing GSA CITGO General Motors Cargill Glaxo. Smith. Kline Celanese Huntsman Corp. Chevron CII 2001 Conoco Intel

CII Owner Members Eli Lilly and Company TVA NASA Texaco NAVFAC U. S. Air Force Research Lab Ontario Power Generation U. S. Army Corps of Engineers Phillips Petroleum Praxair Procter & Gamble Reliant Energy Rohm and Haas Shell Oil Smithsonian Institution Solutia CII 2001 U. S. Department of Commerce/NIST U. S. Department of Energy U. S. Department of State U. S. Steel University of Texas System Weyerhaeuser

CII Contractor Members ABB Lummus Global Chicago Bridge & Iron ALSTOM Power Day & Zimmermann BE&K Dick Corporation BMW Constructors Dillingham Construction Baker Concrete Construction Eichleay Holdings Bechtel Group Fluor Daniel Black & Veatch Foster Wheeler USA Burns & Mc. Donnell Graycor Burns and Roe Hilti Butler Manufacturing Honeywell CDI Engineering CII 2001 Fisher Controls

CII Contractor Members Integrated Electrical Services Jacobs Rust Constructors Johnson Controls S&B Kellogg Brown & Root SAP America Kiewit Construction SMS Demag Kværner Shaw Group M. A. Mortenson VA TECH Murphy Company Walbridge Aldinger PSEG Energy Technologies Washington Group Parsons Energy & Chemicals CII 2001 Petrofac LLC H. B. Zachry Primavera Systems

CII Core Processes • Research • Implementation • Education • Benchmarking & Metrics • Globalization • Breakthrough CII 2001

Research

Research Process • Topic Selection - “Needs” Survey - Workshops • RFP • Board of Advisors approval • Team creation CII 2001

Research Products • 82 Research Summaries • 146 Research Reports • 57 Implementation Resources Compact disc distributed to members CII 2001

Best Practice A process or method that, when executed effectively, leads to enhanced project performance. To qualify, a practice must be sufficiently proven through extensive industry use and/or validation. CII 2001

Best Practices • Pre-Project Planning • Partnering • Alignment • Quality Management • Constructability • Change Management • Design Effectiveness • Disputes Resolution • Materials Management • Zero Accidents Techniques • Team Building CII 2001

Safety Performance Owners & Contractors Recordable Incidence Rate 16 14. 30 14. 20 13. 00 14 12 13. 10 12. 20 Industry 11. 80 10. 60 10 8 4 9. 50 8. 80 7. 19 6. 12 6 9. 90 CII 8. 21 Est. 7. 71 5. 32 4. 31 3. 44 3. 00 2. 66 2. 30 2 1. 60 1. 59 1. 67 Prelim. 1. 06 0 1989 1990 1991 325 413 477 Note: Industry based on OSHA SIC 15 1992 1993 497 527 1994 1995 1996 1997 1998 1999 2000 613 644 770 518 765 995 864 Year and Work-hours (MM)

Safety Performance Lost Workday Case Incidence Rate Owners & Contractors 8 7 6 6. 80 6. 79 6. 10 Industry 5. 80 5. 50 4. 90 5 4. 50 4. 40 4 4. 00 3. 67 Est. 3. 55 3 2 1 1. 90 1. 55 1. 45 1. 14 0. 63 CII 0. 81 0. 55 0. 45 0. 31 0. 41 0. 27 Prelim. 0. 26 0 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 325 413 477 497 527 613 644 888 591 763 1, 122 864 Note: Industry based on OSHA SIC 15 Year and Work-hours (MM)

Current Research Projects • Electronic Simulation in Construction * • Integrated Loss Prevention Programs • Engineering Productivity Measures * • Making Zero Accidents a Reality * • Executing Small Projects * • Evaluating On-Site Design • Project Delivery and Contract Strategy * • Making Virtual Teams Work * * presenting at this Annual Conference CII 2001

Current Research Projects (continued) • Construction Supply Chain Performance • Modularization, Preassembly, Off-Site Fabrication • Update Construction Technology Needs • E-Commerce Applications • Risk Analysis - International Projects • Shortage of Skilled U. S. Craft Workers • Design Practices to Facilitate Automation • Value Engineering Toolkit • Innovative Crew Scheduling CII 2001

CII Core Processes • Research • Implementation • Education • Benchmarking & Metrics • Globalization • Breakthrough CII 2001

CII Today • Over 15 years of research results. • Research benefits the entire industry. • Over 300 products. • University short courses offered. • Leveraged funding available. • Membership expanding and growing. CII 2001

Benchmarking & Metrics

CII Benchmarking Database Owner Contractor 800 477 600 400 200 0 $49. 5 B $39. 8 B $26. 0 B $11. 6 B 392 215 94 115 227 1996 1997 529 353 424 460 1998 1999 300 Number of Projects 1000 $52. 2 B 250 290 Owner Contractor 200 187 150 145 132 100 2000 50 55 54 52 74 0 < $15 MM - $50 MM - > $100 MM $50 MM $100 MM 350 International 229 Domestic 760 Number of Projects 1200 342 300 294 250 200 Owner Contractor 150 100 130 50 0 34 Buildings 42 38 63 46 Heavy Infrastructure Light Industrial

Value of Best Practices Performance 0. 4 0. 3 0. 2 Better 0. 1 0 -0. 1 -0. 2 4 th Quartile Low 3 rd Quartile 2 nd Quartile Practice Use 1 st Quartile High

Pre-Project Planning Project Cost Growth 0. 4 4 th Quartile 3 rd Quartile 2 nd Quartile 1 st Quartile 0. 3 0. 2 0. 1 0 -0. 1 -0. 2 Low High Pre-Project Planning Practice Use

The Bottom Line • Increased use of Best Practices • Better project performance • The ability to quantify the savings CII 2001

Implementation

Implementation • Company responsibility • Implementation Strategy Committee guidance • CII staff support • Education program • Implementation teams CII 2001

Implementation Support Programs • Implementation Champions • Experienced Users • Fast Start User Program • Virtual User Groups - PDRI CII 2001

Education

Education Tools • Education modules • Technology Assisted Learning • CII Short Courses: - Arizona State University - Clemson University - University of Texas-Austin CII 2001

Committees and Alliances

CII Standing Committees • Executive • Nominating • Benchmarking • Research • Education • Strategic Planning • Finance • Annual Conference • Implementation Strategy • CPI Conference • Membership CII 2001 • Knowledge Structure

CII Alliances • American Bar Association • AICh. E Engineering & Construction Contracting (ECC) Conference • Associated Builders and Contractors • European Construction Institute • Mechanical Contractors Assn of America • National Center for Construction Education & Research • Project Management Institute CII 2001

Leveraged Funding • Cooperative R&D agreements • NSF • Advanced Technology Program • Sloan Construction Program/ UT Austin • NIOSH • Others CII 2001