Reducing Costs and Increasing ROI: Project Management in the Clouds

Given by:

Shawn Pressley, VP Project Management Systems, Hill International

Leigh JasperCEO, Aconex

April 20th, 2011

What you’ll learn

• Why streamlined project team communication and collaboration are crucial to delivering projects on-time and on-budget.

• How online collaboration and project management systems drive the successful management of projects like New York City Hall.

• How quickly and easily a project collaboration system can be deployed—typically within 24 hours—to provide immediate value to your project.

Agenda

1. The Challenge: Construction Complexity & Risk

2. The Solution: Information & Process Management

3. The Benefit: Reduced Risk, Improved Returns

Agenda

1. The Challenge: Construction Complexity & Risk

2. The Solution: Information & Process Management

3. The Benefit: Reduced Risk, Improved Returns

Hill International projects

Road and railways

Resorts and hotels Research and healthcare facilities

Renewable energy sources

Community spaces

National landmarks/Government facilities

Complex project teams

SubcontractorsSubcontractors Subcontractors

Subcontractors

Architect/ Engineer

Town Planners

Quantity Surveyor

Services Consultants

Engineer

General Contractor

Project Manager

Client

Geotechnical Engineers

Complex information flows

SubcontractorsSubcontractors Subcontractors

Subcontractors

Architect/ Engineer

Town Planners

Quantity Surveyor

Services Consultants

Engineer

General Contractor

Project Manager

Client

Geotechnical Engineers

New York City Hall project snapshot

Project Team:• 3 city agencies• 3 general contractors• 12 subcontractors• 1 construction manager

Project Information:• 45 project team members• 18,000 project mails• 6,000 project documents

Project:• Houses Mayor’s Office, City Council• Standing since 1803• Last update in 1950s • Major structural renovation needed

Information can be a liability

Efficiency: “I can’t find it. I have 400 new emails…”

Accuracy: “Who has the latest version?”

Security: “Why was HE cc’d?”

Loss: “Did I forget to cc you?”

Project risks are a growing problem

Security

Legal Claims

Efficiency

• 700% over budget ($3B - $22B)• 5 years behind schedule• $150 Million in claims

Poorly-managed risk makes headlines

Agenda

1. The Challenge: Construction Complexity & Risk

2. The Solution: Information & Process Management

3. The Benefit: Reduced Risk, Improved Returns

The Solution: Online collaboration platform

Information & Process

Management

Online

Collaboration

Project

Reduce risk by managing information capture, control and

complexity

MaximizeCapture

ImproveControl

ManageComplexity

Online collaboration delivers better results

Neutral online platform Secure information management Flexible for users to employ their own processes Auditable data trail Unlimited users Unlimited document storage and distribution Powerful search functionality

SentInbox

DocumentRegister

SentInbox

DocumentRegister

SentInbox

DocumentRegister

Online collaboration is neutral & secure

Sent

Inbox

DocumentRegister

Sent

Inbox

DocumentRegister

Client

Contractor

Subcontractors

Consultant

PM

Architect/Engineer

SentInbox

DocumentRegister

Flexible to manage multiple parties & processes

Enterprise

systems

Easy and fast to deploy

Industry specific functionality

SharePoint 2010

Web Services APIs

Subcontractor

Subcontractor

Subcontractor

Subcontractor

Cost Consultant

Quantity Surveyor

Engineer

ServicesConsultants

Architect

Provides Complete Project Data Capture

Client

PM

General Contractor

Provides unlimited storage, training & support

$

Unlimited

Training &Support

Usage &Storage

Licensing

Training &Support

Usage &Storage

Licensing

$

Unlimited

Training & Support

Usage & Storage

Licensing

For unlimited users on a project

Complete record for facility management

Facility Manager

PM

Return on investment: $2.6m saved, review cycles cut by 68%

Using FTP site Using Aconex

Savings with Aconex: $2.6m

• Large contractor

• $800m office/ retail project

• Saved 17 mins per review

• 180k reviews (est 10% of all docs/ correspondence)

• Saving: 180,000 x 17/60 x $40 hourly rate = $2,040,600

• 220k less hard copy prints @$2.72 = $598,400

25 minutes

8 minutes

- 68%

Review time per document

Client example

Using previous internal doc control system

Using Aconex

Return on investment: 84% saving in doc control costs

Savings with Aconex: $628k

- 84%• Multi-disciplinary PM

and engineering firm

• $268m industrial project

• Labor saving of $628k on specific, measured processes

• 40 month term

• 10,124 hours saved x $62 hourly rate = $627,688

11,997 hours$743,814

1,873 hours$116,126

Document control hours and cost

Client example

Using previous internal doc control system

Using Aconex

Savings with Aconex: $6m

- 66%

• Government infrastructure agency

• $6.7 Billion Rail & Transit Program (25 projects)

• Labor saving of $6m on document collection, update and distribution tasks

• 299,520 hours saved x $20 hourly rate = $5,990,400

449,280 hours$8,985,600

149,760 hours$2,995,200

Document control hours and cost

Client example

Return on investment: $6m savings in doc control costs

Project team benefits & reduced risk

• Easier communication and collaboration between staff and project team members

• Fewer redundant work efforts to distribute information quickly and get responses to information requests

• Reduced risk of project error due to miscommunication or working from wrong document versions

• Clearly articulated responsibilities and action items in workflows

• Shorter ramp-up time

Project stakeholder benefits & reduced risk

• Reliable protection of profit margins• Improved services and staff resourcing

efficiencies, creating capacity to attract new clients

• Secure intellectual capital• Reduced regulatory burden and risk of

non-compliance • Reduced risk of claims and losses, with

complete project records and audit trails

Increased returns

Less time spent searching for documents Fewer administrative man-hours Faster critical responses to project

information requests

Return on investment: $1.2m saved searching for docs

Using multiple locations for file storage

Using Aconex

7,786 hours$584,000

Savings with Aconex: $1.2M

• $1.2m savings searching for information in 4 years

• Search time cut by 60%

• Savings: 233,600 document searches 15,574 hours saved x $75 average hourly rate across project

23,360 hours$1,752,000

- 60%

Time spent searching for documents

Return on investment: $21k savings on one admin task

Using multiple locations for file storage

Using Aconex

160 hours$5,280

Savings with Aconex: $21K

• $21k savings on just one administrative task

• Saving: 640 administrative hours saved x $33 hourly rate = $21k

800 hours$26,400

- 80%

Project record assembly cost

Return on investment: 40% faster responses to RFIs

Using multiple locations for file storage

Using Aconex

Savings with Aconex: $TBD

• Creates potential savings in man-hours and promotes faster, more efficient project delivery.

10 days

Wait time for FRI response

- 40%

6 days

Online collaboration brings measurable results

By streamlining project team communication and collaboration, we can:

1. Positively affect efficiency to ensure on-time and on-budget completion.

2. Reduce and mitigate risk associated with project complexity, team complexity, and information management.

3. Provide immediate value to a project by getting project teams working together quickly and keeping them productive.

For discussion

• What are some inefficiencies on your projects?

• What kinds of information bottlenecks do you have?

• What processes would you like to be faster in your project workflows?

• Do you have any data security concerns?

Thank you!

Shawn PressleyVP of Project Management, Hill International

Leigh JasperCEO, Aconex