New York Building Congress Task Force on Innovation and Best Practices Message from the Chairman

A REPORT BY THE New York Building Congress Task Force on Innovation and Best Practices Message from the Chairman When I was asked to serve as Chairman of the New York Building Congress, I wholeheartedly agreed, on one condition — that the Building Congress address the issue of innovation and best practices in our industry as part of its agenda. With the City in the midst of another building boom, now is the perfect — and most important — time to devote our attention to building smarter, faster, more safely, and more economically. To accomplish these goals, we must be willing to challenge the status quo, embrace best practices, and implement new ideas and technologies. Over the past two years, the Building Congress Task Force on Innovation and Best Practices has been fully engaged in that process of self-evaluation, thoughtfully considering what we can do as an industry to make us better in everything from procurement reform to building technology and processes, site management, and workforce development. We have found that innovation is all around us, but unfortunately, it hasn’t been as widely distributed and replicated as it needs to be. While many other industries see innovation as a fact of doing business, the building industry has been slow to adopt innovative tools and methods on a broad scale. We continue to build fundamentally the same way we did 50 years ago and arguably even earlier. Yet, imagine going out today and buying a car that was built the same way as the 1965 Studebaker or a computer with 141k of RAM (what a 1965 Univac offered). We are stuck, in part, for the same reason many people get stuck: unquestioned habits. New York City, for example, is the envy of many cities around the world because our two-day cycle per floor enables very rapid high-rise construction. But the two-day construction cycle is so ingrained in our thinking that it can inhibit us from taking a fresh look at other solutions. Entrenched in our ways, we tend to leave untapped the great potential for improving how our built environment is designed and constructed. This report, which provides an overview of the Task Force’s efforts, shines a light on just some of the opportunities for productive change that can raise the bar while also setting benchmarks that are feasible and attainable. It is an initial step toward elevating innovation and best practices in the New York City building community on an ongoing basis by sharing what has been learned so far and offering recommendations for a path forward. I thank the more than 40 dedicated industry professionals who have actively participated on the Task Force. Their leadership and commitment to our industry are, in and of themselves, best practices that we can all strive to emulate. Thomas Z. Scarangello, P.E. Chairman, New York Building Congress and Task Force on Innovation and Best Practices Chairman and Chief Executive Officer, Thornton Tomasetti 2 TABLE OF CONTENTS Introduction: Seeding Innovation and Best Practices .............1 More Progressive Public Procurement ....................................2 Best Practices in Project Delivery ............................................5 Better Sidewalk Sheds, Better Streetscapes ...........................7 Conclusion ................................................................................9 Introduction: Seeding Innovation and Best Practices Building Innovation highlights the work and recommendations of the New York Building Congress Building Innovation is Task Force on Innovation and Best Practices, which spearheaded a intended to inspire continuing, wide-ranging initiative to promote construction innovation and improve collaborative discussions the way New York City builds. across industry sectors. Formed by Chairman Thomas Z. Scarangello in 2014, the Task Force was born out of a growing awareness that the City and the development, product and process and constructed, with examples building industry must do more to innovations, site management, and taken from the work of three remain at the forefront of building improved communications among Task Force committees — the technology and best practices stakeholders. Government Procurement and while helping to realize a 21st Procedures Committee, Building century vision of New York’s built Participants examined topics Technology and Project Delivery environment — one that is greener, ranging from procurement reform, Committee, and Site Management more resilient, and more responsive alternative project delivery, and Lean Committee — whose full reports are to human needs. principles to modular construction, available on the Building Congress construction sheds, and industry website. The Task Force tapped the expertise workforce supply and demand, all of more than 40 leading contractors, with the goal of identifying ways Most importantly, Building architects, engineers, government to increase efficiency and reduce Innovation is intended to officials, and other industry leaders the comparatively high cost of inspire continuing, collaborative and organized six committees to construction in the City. discussions across industry sectors focus on and develop practical to share lessons learned and best deliverables related to building The Task Force prepared Building practices as well as encourage technology and project delivery, Innovation to illustrate the potential the development of a culture of government procurement and for meaningful change in how the innovation within the building procedures, workforce City’s built environment is designed community. Cover: BIM Model of Yankee Stadium, Credit: Thornton Tomasetti 1 More Progressive Public Procurement “New York City government adversarial relationships between As a result, project funding levels agencies are responsible for a large agencies and contractors, such as are established based on limited capital construction program that the City’s divided management of information, leading to major cost has a significant impact on public works projects and approval increases when the appropriate the local economy and on the processes for payments and change consulting work is done and the true ‘state of good repair’ of the local orders; and outdated project cost of the project revealed. infrastructure,” said Mark Blumkin, delivery methods. Director — Capital Projects “The problem starts at the capital Consulting for Deloitte Financial The Task Force drew from best planning phase, because bond Advisory Services and Co-Chairman practices in the public and private financing regulations prohibit the of the Government Procurement sectors as well as experience in use of capital funds to pay for and Procedures Committee. “Often using alternative project delivery design until the overall project is the means by which these agencies methods to create proposals for included in the capital plan,” said procure and manage this capital realistic, achievable reforms that Milo E. Riverso, President and portfolio are hampered by outdated would improve the public sector’s Chief Executive Officer of STV and cumbersome regulations and procurement and capital planning Group, Inc. and Co-Chairman of methods that delay projects and processes so that projects can be the Government Procurement and increase the cost of work to the delivered faster and more cost Procedures Committee. “But asking taxpayer.” effectively. for the funding for construction before putting pen to paper on a concept dooms the budget. Construction managers should be invited to participate during the design period to get the best collaboration possible from the outset so that the design can be completed and the budget formed before going to get the construction funds.” In recent years, the City has taken steps, including appropriating funds, to address this problem with a program administered by the Office of Management and Budget New NY Bridge: Tappan Zee Bridge Replacement, Credit: New York State Thruway Authority (OMB) for Capital Project Scope Development (CPSD) services, Based on various studies performed intensive scope development and by Deloitte and others over the past CAPITAL PLANNING cost estimating services, that may decade, the Task Force identified AND PREPARATION be requested by City agencies key drivers of construction costs for certain capital projects. These and delays on public works projects, Most capital projects procured preliminary assessments enable the including the lack of adequate by government agencies lack City to accurately estimate the true capital planning and preparation; adequate preliminary scoping, costs of selected projects and, if controls that are designed to prevent design, and estimating, largely necessary, investigate less expensive corruption but effectively create due to resource constraints within alternatives prior to capital government agencies and the lack commitment. of funds available for consulting services until the project is funded. 2 Number 1 Subway Line Rebuild Following 9/11, Credit: Patrick Cashin/Metropolitan Transportation Authority The Task Force recommends that these impacts more keenly felt by The Task Force recommends the City expand the CPSD program contractors than in the change order that the City adopt a more to require all agencies in charge and payment approval processes. streamlined approach to project of major capital projects (e.g., any Uncertainties and delays in these management that assigns oversight project with a preliminary budget processes have led contractors responsibility and authority to estimate exceeding $50

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