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Managing Uncertainty and Expectations in Building Design and Construction SmartMarket Report Produced in Partnership with: Managing Uncertainty and Expectations in Building Design and Construction Premier Industry Partners: Industry Partners: ■ Design and Construction Intelligence SmartMarket Report McGraw Hill Construction Managing Uncertainty and Expectations in Design and President Construction Kathryn E. Cassino SmartMarket Report About McGraw Hill McGraw Hill Construction Executive Editor Research & Analytics/ Harvey M. Bernstein, F.ASCE, LEED AP Construction Industry Insights & Alliances McGraw Hill Construction’s data, Editorial Advisor and Chief Author analytics, and media businesses— Vice President, Industry Stephen A. Jones Insights & Alliances Dodge, Sweets, Architectural Record, Harvey M. Bernstein, F.ASCE, LEED AP Editorial Director and Engineering News-Record— Michele A. Russo, LEED AP create opportunities for owners, Senior Director, Research & Analytics Burleigh Morton Managing Editor architects, engineers, contractors, Donna Laquidara-Carr, LEED AP building product manufacturers, Director, Research Communications and distributors to strengthen their Michele A. Russo, LEED AP Senior Director, Head of Marketing market position, size their markets, William Taylor prioritize prospects, and target and Reproduction or dissemination build relationships that will win more of any information contained Creative Manager, Media business. McGraw Hill Construction herein is granted only by contract Juan Ramos serves more than one million or prior written permission from Art Director customers through its trends and McGraw Hill Construction. Alison Lorenz forecasts, industry news, and leading Contributing Art Director platform of construction data, Copyright © 2014, AD-BOUTIQUE, INC. benchmarks, and analytics. McGraw Hill Construction, Terumasa Yamada ALL RIGHTS RESERVED Contributors To learn more, Bruce Buckley visit www.construction.com. Deborah Snoonian Glenn Katharine Logan Research Project Manager Susan Barnett, MRA, PRC For further information on this SmartMarket Report or for any in the series, please contact: McGraw Hill Construction Research & Analytics 34 Crosby Drive, Suite 201 Bedford, MA 01730 1-800-591-4462 [email protected] SmartMarket report Introduction erfection is a baseline expectation ■■Better communication and integration when you purchase a product. among project team members scores as ction But as experienced owners of the most effective approach to reducing U building projects know, design the causes and impacts of uncertainty. Pand construction is an imperfect process the objective for this initiative is to onstr c with a variety of inherent uncertainties. advance the level of shared understanding given that reality, what can project teams among owners, design professionals do to identify, anticipate and mitigate the and construction firms about the mutual Stephen A. Jones conditions and factors that drive uncertainty, Senior Director challenges they face in building design McGraw Hill Construction esignand and how can owners adjust their d and construction. this will help to shift the expectations of project team performance conversation from blame and recovery to align with reasonable, achievable metrics for unanticipated problems to proactive ilding that truly benefit the project? U and collaborative ways to reduce their these are the core questions behind this occurrence and to performance metrics Managing Uncertainty and Expectations that foster these behaviors. in Building Design and Construction in addition to the AIA large Firm SmartMarket Report, produced by Mcgraw roundtable, Mcgraw Hill construction Hill construction in partnership with the wishes to thank the other industry leaders AIA large Firm roundtable. Key findings of xpectationsin B who provided support and guidance to this e this research with owners, architects and research in order to bring this important contractors include: study to the market. those organizations Harvey M. Bernstein ■■owner-related issues, such as include the premier industry partners of F.ASCE, LEED AP accelerated schedule, unclear project Vice President AIA, autodesk and dBIA; and industry requirements, lack of direction and Industry Insights & Alliances partners AGC, graphisoft and the lean McGraw Hill Construction involvement, and program or design construction institute. changes, are cited as the leading drivers For more detail on the methodology of of uncertainty on building projects. this report, please see pages 59–60. ■■While only 7% of owners believe perfect construction documents are possible, design errors and omissions are still ManagingUncertainty and considered highly impactful sources of uncertainty. on average, owners say they expect to pay somewhere between 3%–5% added cost on a building project due to these issues, and consider anything up to 6% to still be acceptable as “good performance.” Stephen A. Jones leads High Performance Construction Harvey M. Bernstein, innovation and sustainability and MHC’s initiatives in BIM and events. Before joining MHC, F.ASCE, LEED AP, has been a currently serves as a member of how emerging economic and Jones was a vice president with leader in the engineering and the Princeton University Civil technology trends are transforming Primavera Systems (now part of construction industry for over and Environmental Engineering the construction industry. Active Oracle), a global leader in project 30 years. Currently, he has lead Advisory Council and the in numerous industry associations management software. Prior to responsibilities for MHC’s market National Building Museum Board research group, including MHC’s (including the buildingSMART that, he spent 19 years in creative of Trustees. He is a visiting thought leadership initiatives in Alliance, the BIMForum, and management roles with top professor with the University of areas such as commercial and Construction Users Roundtable, design firms, most recently as a Reading’s School of Construction residential green building, BIM, Alliance for Construction principal and Board of Directors information mobility, innovation Management and Engineering in Excellence and Charles Pankow member with Burt Hill (now and global construction markets. England. Bernstein has an M.B.A. Foundation), Jones frequently merged with Stantec), one of the Prior to joining MHC, Bernstein from Loyola College, an M.S. speaks at events around the world largest A/E firms in the U.S. served as President and CEO of in engineering from Princeton on the business impact of emerging Jones holds an M.B.A from the Civil Engineering Research University and a B.S. in civil technology and trends. He also Wharton and a B.A. from Foundation. He has written engineering from the New Jersey hosts MHC’s ENR FutureTech and the Johns Hopkins University. hundreds of papers covering Institute of Technology. McGraw Hill Construction 1 www.construction.com SmartMarket Report SmartMarket report Introduction he AIA large Firm roundtable i would like to thank the roundtable’s is pleased to present Managing steering committee for this project: Jay ction Uncertainty and Expectations in Halleran, assoc. AIA, managing principal U Building Design and Construction of nBBJ; ralph Hawkins, FAIA, chairman of TSmartMarket Report as lead sponsor for HKs; James Bearden, AIA, CEO of gresham onstr c this industry study. smith & partners; craig Williams, AIA, the large Firm roundtable, founded principal and chief legal officer of HKs; in 1984, includes leaders of the largest and tim twomey, AIA, vice president and Bryce D. Pearsall, FAIA north american-based architectural and deputy general counsel of RTKl. this Chair, AIA Large Firm Roundtable esignand a/e firms.t he roundtable is committed to project has been led for the roundtable by d Chairman, DLR Group advancing the interests of design firms and clark davis, FAIA, former vice chairman clients of all types and sizes. We undertake of HoK and principal consultant with ilding periodic research about industry issues cameron Macallister group. U and best practices. this study may lead to additional While it’s generally acknowledged research about some of the topics that the design and construction process presented here. We look forward to your isn’t perfect, there has been a lack of real comments and invite others to join us in data about what uncertainty to expect our future work. and how to manage it well. as a result, xpectationsin B e even top-performing project teams AIA Large Firm Roundtable 2014 sometimes end their work with conflict and strained client relationships. after ADD inc. gresham smith and page partners discussing this issue for several years, AECOM pei cobb Freed HGA the large Firm roundtable decided in BWBr architects perkins + Will Harley ellis devereaux 2012 to move forward with this research callison perkins eastman project. We commissioned Mcgraw Hill HDR architecture cannondesign RTKl associates construction’s research & analytics group HKs cBt architects shepley Bulfinch to conduct the work. cooper carry inc. HlW international We believe the study findings will help sHW group corgan associates HMc architects owners, architects and builders manage SOM ManagingUncertainty and HNTB architecture today’s projects more effectively and cuningham group smithgroupJJr HoK improve our industry’s performance in dewberry solomon cordwell the future. this report is intended to be an DLR group Jacobs global Buildings Buenz educational tool for every member of the ennead architects KMd architects stantec architecture project
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