Addressing the Challenges and the Return on Investment for ...€¦ · Project Objectives •Review...

Richard Duval

Jag MallelaSeptember 16, 2015

Addressing the Challenges and the Return

on Investment for Paperless Project

Delivery (e-Construction)

Project Objectives

• Review e-Construction practices nationwide

▫ Document successes, challenges, and opportunities

• From project advertisement to final project acceptance

▫ Includes central office, field offices and jobsite processes

• Product: Implementation guidance for e-Construction

▫ Identify common barriers and strategies to address them

▫ Document return on investment

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Project Approach

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4

Findings - Summary

Active national interest

Some agencies are holding off

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Benefits/Cost avoidance

anticipated between $1M and

$22M

Dependent on scope

Key Findings (1 of 6)

• Project Delivery Steps▫ Plans, Specifications and Estimates (PS&E)

▫ Bidding and Contractor Selection/Contract Award

▫ Project Collaboration and Management

▫ Project Acceptance and Close-Out

• Return On Investment (ROI) Findings

• Planned Initiatives

• Implementation Challenges

• Lessons Learned

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Key Findings (2 of 6)

Plans, Specifications and Estimates

• Plans commonly PDFs and 2D CAD files

• Electronic (e.g. Vtrans) or paper-markup (e.g. Michigan DOT) followed by scans

• Several agencies exploring the use of 3D models

• Others (e.g. Oregon DOT) using it for a long time

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Key Findings (3 of 6)

Bidding and Contractor Selection/Contract Award• Most “paperless” of all processes

• Most common software: Bid Express and Expedite

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Bid Express, 17

AASHTOWare Expedite, 6

Other, 1

Key Findings (4 of 6)

Project Collaboration and Management

• Major e-construction initiative

• Mobile devices, project management and collaboration software

• Driving forces:

• Easier access to real-time information

• More accurate data collection

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Key Findings (5 of 6)

Project Collaboration and Management

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0

2

4

6

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10

12

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AASHTOWare SiteManager

In-House DevelopedSystems/Databases

ProjectWise SharePoint Primavera 6

# o

f A

ge

nc

ies

Summary of Commonly Used Tools for Project Collaboration and Management

Key Findings (6 of 6)

Project Acceptance and Close-Out

• PDFs or CAD files

• 3D as-built models not in use at any agency surveyed

• System success example: VTrans

• Construction Contract Finals system

• Handles project close out activities/workflow

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Return on Investment Summary

• Most agencies have not yet quantified Return On Investment (ROI); strong interest in using a standardized method

• Agencies that have quantified benefits/savings are looking for a more structured framework

• Notable agencies:*▫ Caltrans▫ North Carolina DOT▫ Oregon DOT▫ Texas DOT▫ Michigan DOT▫ Florida DOT

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* Agencies for which we have obtained information through literature review and/or case studies

California

$11.25 billion program (0.04%)

Estimated cost avoidance of $5

million

Avoid illegibility problems/errors as well as physical bid submittal

Better management of

low-bid contractor selection

Caltrans feasibility report on highway construction bidding system

Estimated through internal

process

Monitor savings on pilot projects utilizing mobile technologies

Ongoing study, scheduled for completion in 2016

Next steps

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North Carolina

$1.5 billion program (0.07%)

Estimated savings of $1

million

Less paper transmittal, no printed manuals, trips avoidance

iPad pilot project

Paper savings

Time savings

Estimated anticipated cost savings based on iPad pilot program

Estimated through pilot

program

Currently updating initial estimate to include additional savings (e.g. field personnel time, contract turnaround)

Next steps

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Oregon

In process of measuring savings

Estimated categories of

savings

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Reduced paper, printing, postage,

envelopes, etc.

Reduced building storage

space

Reduced travel to ship or transfer

documents

Reduced overnight

delivery, FedEx, UPS, etc.

Elimination of fax machines

Reduced number of copiers and

toner

Reduced labor Reduced carbon

footprint

A new multi-modal element

– digital highway

Remote FHWA reviews

Reduced paper/analysis

preparation

Lower risk of data loss

Ability to isolate sensitive files

Elimination of FTP site for file

transfer

Texas

$13.3 billion program (0.08%)

Estimated savings of $11

million

Less paperwork, faster and accurate reviews

Mobile inspection technology

A mobile pilot program was conducted as part of the Project Inspection using Mobile Technology research project in collaboration with MnDOTand WSDOT

Estimated through

research project

In process of further quantifying paper savings

Next steps17

Michigan

$1 billion program (1.2%)

Preliminary estimated savings

of $12 million

Plan to include efficiency savings in the future

Includes paper, printing and

mailing savings

$300,000 actual savings

Correlated from the Latson Road

pilot program

More structured feasibility analysis, building upon FHWA project guidance

Next Steps

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Florida

$41.8 billion program (0.53%)

Estimated savings of $22

million

Less paper transmittal, less travel through use of online meeting tools (e.g. GoToMeeting)

Paper printing and job site

travel savings

Applied Michigan DOT’s method for calculating saving to its own work program

Estimated through peer

practice

Refine estimate to include savings from use of mobile devices, field personnel time, faster contract turnaround, etc.

Next steps

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Preliminary ROI Framework (1 of 3)

Benefits (Qualitative)

• Streamlining of key processes (e.g., digital review, approvals, contractor payments, etc.) to reduce overall project and program schedule

• Reduced data entry

• More consistent and better quality data

• Increased transparency and reduced claims with audit trails

• More complete and competitive bid documents

• Standardized reporting

• Easier/better reporting on performance data

• Self-service options for contractors, reducing manual data entry

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Preliminary ROI Framework (2 of 3)

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Benefits (Quantitative)

• Reduced use of paper, printing, and mailing

• Collaborationo Increased collaboration through digital review processo Increased communication and issue resolution

• Productivity and process efficiencieso Reduced trips between the jobsite, field office, and central officeo Increased utilization of existing staffo Faster document access, distribution, submission, review, and approval

Preliminary ROI Framework (3 of 3)

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Costs

• Pre-implementation consultant

• COTS Software Licenses:o Electronic As-Builtso Electronic Biddingo Project Collaboration Tools

o Project Construction Managemento Document Managemento Digital Signatureso Mobile Devices

• COTS Software Maintenance

• Systems Integration Services

• Managed Services Support

• Hardware and Other Technical Infrastructure

• Hardware and Infrastructure Maintenance

• Hardware Refresh

• Agency Staff Cost (During Project and to Support System Ongoing)

• Systems Integration Services for Upgrade

• Contractor Compliance

• Training

Planned Initiatives

CaliforniaPilot project for mobile devices

Connecticut , Michigan, West Virginia

GPS and digital modeling

MichiganElectronic contract award process

OhioPaperless inspection

North CarolinaDigital signature implementation

Oregon, VirginiaDocument management

systems/collaboration tools

MassachusettsEvaluation of options for full e-Construction implementation 24

Implementation Challenges

• Staff time for planning and implementation

• Buy-in from agency staff and upper management

• Determining how business processes could be translated to a paperless environment

• Statutory regulations surrounding digital signatures

• Security concerns for mobile devices and contractor access

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Lessons Learned

• Training for staff ▫ Pre-implementation and ongoing

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• Process review and improvements key for successful implementation/benefits realization

• Need buy-in from all levels of organization

• Peer exchange is a powerful tool▫ Avoid repeating mistakes

▫ FHWA projects/research can help avoid mistakes

• Phased implementation/start with manageable scope

Next Steps

• Identify benefits and prepare guidance on how to quantify them

• Prepare guidance for agencies to use template and update based on their unique requirements/situation

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Thank you!

• Questions/Comments? Please contact:

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Richard Duval

FHWA COTR

• Richard.Duval@dot.gov

Jag Mallela

Principal in Charge

• MallelaJ@pbworld.com

Keyur Shah

Project Manager

• ShahKV@pbworld.com

Doris Lee

Lead Analyst

• LeeD1@pbworld.com