The Obstacle Is The Way

A Thought Experiment – A Built Environment Consultant Fit For Purpose

Let’s be honest – there is a lot going on right now. We have a continuation of a digital revolution, we have the pandemic and its various impacts on our lives, and we have climate change which is driving huge change across industry and investment strategies (at last).

It feels like we are on a conveyor belt, we just do the stuff while the things happen around us. Is it meaningful and are we making an impact - truthfully? Maybe it's easier to just keep doing the stuff, time will pass of course and we can retire and let others worry. What if we are the ones who need to make an impact though, how can we if it seems so difficult?

Luckily all we have to do is the difficult thing! Question the standard churn of work that delivers designs which would not look out of place in 1996 (in a functional sense). Consider how our firms can actively use technology, knowledge and process to change how things are done. Don't get sidetracked by people telling you that your work is 'commoditised' as it isn't - you are just in the wrong market. Step up, look around, identify what is not being done in the best possible way and seek to fix it.

Yes - It’s a lot to take in and there is lots of talking and lots of bluster abound. But what does the built environment consulting firm need to do in response to ever changing societal pressures as well as to satisfy the ambitions of its talented staff. Not to mention its response to the Paris Accord and the latest quite damning IPCC report on our progress on the agreements thus far?

When you dig deeply into this question the answer is ‘quite a lot’. Firms have been going through the motions for a considerable amount of time, while contracted outcomes are met (generally) it is usually at a low-risk point which is to be expected. The challenge being that without risk is it possible to really achieve difficult goals? Another thing to consider is are clients getting what they actually need or are they getting a service which ticks the boxes and no more……

As an initial example how many of us experience instances where consultants aggressively design concrete foundations to minimize cost and embodied carbon? Far less risky to meet code requirements and let others consider this if, and only if, there is a value engineering solution required. All the while the (perhaps) unnecessary carbon is emitted….

What follows is a thought experiment of what the consulting firm of 2021 could and should be using the construction lifecycle as a basis.

Initiation

At this stage a client will seek some level of surety on investment and returns. The consultant will be providing feasibility reports and massing studies in a BIM environment from the get-go. The dynamic database used to support will provide the client with all sorts of metrics from cost to embodied carbon depending on materials used, location and orientation of the building. The latter being optimized by a machine learning algorithm in a digital environment. Every permutation of shape, orientation, size, shading, plant, and equipment strategy can be optimized at this stage at a high level in order to provide details on capital and operational costs as well as, importantly, carbon emissions caused by the construction and materials (embodied) as we as during operation.

Using BIM at this stage the consultant can also develop people movement, traffic, and transport studies where necessary dovetailing into a wider digital network of transport data depending on the type and development location.

Outcomes at this stage are more robust data on cost of capital as well as cost of operation, providing a rounded cost of investment at the initial stage.

Critically carbon is being monitored from the start in an embodied and an operational sense. This allows metrics to be used on type of development and adherence to ESG for the business. Decisions can be made across numerous fronts to direct the project and its construction to the highest benefit point for the client, the customer, and the planet.

Project Planning and Definition

This is usually the main entry point for the consultant who will take on the design of an outline scope defined in the earlier stage. If the consultant has had no input to date, there is a risk that the benefits outlined previously will not be realized. For this thought experiment let’s assume they have, I will also take the liberty of splitting this stage into time, cost, and quality to make the reading easier. First though to the payment of the consultant.

The data model which was created at the very start of the process will exist in a networked location fully accessible by the client. This means that progress of the model is visible and easily understood, the model progress and activities therein are linked to a dynamic program (agreed when the two parties contracted with each other).

What this does then is two things. First it means the client has full visibility of progress and not just be limited to getting documents at a milestone. Reporting upstream becomes easier and the value of the work being done becomes clear while also removing the worry of whether people are actually working, second it opens up new payment streams in which blockchain can be leveraged. If the model progress is visible, if it is aligned to a plan, it means monthly payments can be made on progress. This enhances cashflow for consultants and can simplify payments for clients also since the nature of the agreement becomes a total price divided by monthly payments.

Security of value can be administered using a blockchain system where verification of actual work is done automatically, and payments settled accordingly. Admin time is reduced, and all parties can focus on the actual project and its delivery.

Cost (dollars and carbon)

We spoke about risk at the start, and it is now that the consultant should be stepping up to deliver what is needed.

Using the digital model, the consultant will be building the data model in a way that reflects construction. they will know how things are built and can factor the necessary elements into the design model. Knowing what is important to the client the consultant can be consistently looking for ways to save on embodied carbon and / or in dollars as the design progressed to a pre agreed strategy

Linked to a dynamic cost database the model development will allow transparency on costs throughout the design process and we move away from the problematic static process. This usually involves a design being finished at a certain point with 2D information sent to a cost consultant. They cost for a duration of time all the while the design continues to develop – the information is consistently out of date and adds risk and stress to the project.

Now we are dynamic and the client has the information needed to make decisions analogously with progress and can direct or be advised accordingly.

In addition to the dollar cost of the project there is a critical carbon cost for the project. it is not unreasonable to expect that the digital model is also dynamically linked to an embodied carbon data base. The consultant can advise on embodied carbon and define impacts of certain material choices during the design process.

This added transparency allows consistent tracking of the client’s and the development’s ESG goals

We spoke about risk at the start, and it is now that the consultant should be stepping up to deliver what is needed. However, risk needs to be incentivized and perhaps the onus here is on the client, my suggestion is there is an additional funding process where – as an example – a consultant can get a percentage of capex saved off the initial (or later) budgets. The agreements do not need to remain traditional – incentivize consultants in a way that can get a higher level of delivery by virtue of a new approach to payment….

Using the digital model, the consultant will be building the database in a way that reflects construction. they will know how things are built and can factor the necessary elements into the design model. Knowing what is important to the client the consultant can be consistently looking for ways to save on embodied carbon and / or in dollars as the design progressed to a pre agreed strategy.

Advanced dynamic simulation modeling will be business as usual, and this will define optimum thermal performance of the development as well as optimum servicing strategy.

There are huge opportunities here for parties to realize the benefits of thinking differently. I have spoken before on the benefits of advance thermal modelling. This process can achieve major reductions in capital expenditure on plant and equipment, pipes, and such like. This seamlessly links to a reduction in operational expenditure since plant capacity is aligned to actual loads (therefore efficiency at part load is increased when compared to oversized plant).

It is also critical to note that this aggressive design philosophy unlocks reductions in embodied carbon and we can extend this to transport as well as we need to deliver lighter and smaller equipment. The benefits are massive and if consultants do not have this approach clients should sack them.

But – we are faced with the same risk dilemma. The approach which is fit for the future needs support from clients and new ways of rewarding risk away from a lump sum approach.

Time

Since the consultant understands how things will be built the model created more accurately reflects what will happen. As an example, a floor slab is not built as one large continuum to save time in modelling. It is split to reflect a concrete pouring strategy which could be employed by a builder.

This logically extends to most major aspects of the model and the proposed build. What comes out of this is a digital schedule commonly referred to as 4D BIM.

Why should this matter if the contractor does it anyway? Well, the client now has a more robust understanding of the construction timeline and can remove some of the risk of the unknown. A more accurate understanding of the time means investment and funding arrangements can be developed with far better supporting information.

The 4D model can simulate build processes and identify pinch points and issues which need to be addressed in the tender documents – rather than waiting for the contractor to tell after the fact.

Procurement is built into the model, by that I mean that the data and specifications are built into the model which form the basis of procurement down the line. At this stage the consultant is advising clearly around long lead items and risks in this space, allowing planning and discussions to take place to mitigate before it becomes an issue during the build.

in short, the consultant (the expert) is driving the project and advising clearly on what needs to happen and how long it is going to take. The client maintains the close adviser who is streamlining the process and seeking to de-risk as much as possible at every opportunity.

Driving the actual build at design stage, or at least seeking to simplify, means less time on site for the builder. Less time on site means less carbon emissions, less carbon emissions is good.

Quality

Transparency and visibility with both the consultant and the client mean it is reasonable to suggest that the quality of the outcome is improved.

Clash detection can be demonstrated easily to all parties and since the model is data rich in order to support the time and cost component it means that the front-end work has mitigated the risks of issues downstream when the build starts. Tender and construction documentation can and should be hosted in the data model becoming an immutable source of truth at the point of contracting so supporting a reduction in disputes down the line.

Cost opportunities become apparent with the consultant. How much does it cost to start, stop, publish drawings, do renders, etc. etc. If consultants can provide what is needed in a dynamic virtual environment, then the cost of delivery can reduce for clients which enhancing the overall product quality.

Project Execution

The consultant and the data model continue through the construction period with the model being available to the contractor and remaining open to all verified parties.

The contractor uses the data within the model to being the material procurement phase and uses the data to develop the planning and execution of the project. the outcome being a dynamic and verifiable program which we will discuss shortly. First on procurement:

The specifications and the details for procurement are contained in the model which has been built up in the early project phases. Now the contractor uses this to plan and execute procurement with the important value add being transparency – progress is visible in the model and issues relating to approvals, etc. can be resolved in a manner which suits the program of procurement. What is maintained importantly is a data trail of decisions throughout the process which means all parties can agree on what is the truth at any single point in time.

The dynamic and data driven schedule is now available and can be administered and driven by the consultant. We are no longer in the realm of a weekly contractor progress update via a pdf which is 1 week out of date and in which most data points are questionable.

The model allows all things to be verified and managed both by the consultant and the contractor. The digital working method can also flag issues and areas of focus prior to when they become a problem. Linked to the procurement process it gives a rounded and transparent view on what is happening on site.

As an example – the schedule (the model simulation) tells we should have installed all doors, but we seem to have missed the date. The scheduler interrogates the model and by selecting the area in question then sees that the first door issued got issued with a non-conformance report and so all subsequent doors have been held. The consultant is notified, the issue resolved, and the process continues. Important to note that while allowing a visual way to understand progress the data is what matters. At the end of it all there is a digital story of the project, here is the true value as we enter the operational phase.

Again – the consultant is not the passenger; they are the driver. The data is being administered and monitored proactively and not responsively. Clients do not simply have seat warmers on projects going out and inspecting things. It is planned, it is digital, it is visible, and it is transparent. All actions have a purpose, and everything is planned, executed or updated when changes arise.

When it comes to costs and payments to the contractor the consultant also administers these via the data model. Progress can be verified in the digital platform and, using blockchain, a payment system is set up to verify the value and issue the payments. A whole process (cost) is removed from the system and the model is powering a dynamic cost approach which is giving the necessary checks and balances to the clients-based truth and real earned value.

An interesting point to note here is that the consultant is adding value to the process and should be acknowledged as such. But there may still be instances where simple inspections are needed to verify an installation. Historically clients are expected to pay a monthly rate for this and so end up paying for certain inefficiencies. This is unfair, I would propose that such labor-intensive tasks would be paid in a similar manner to how contractors are paid. Perhaps on an activity basis with a verifiable ‘uber’ style approach. I.e., you need an inspection then we book an inspection, it is done and it is paid for. What if the inspection shows a fault with the works by the contractor? Well then, the next inspection should be free, well free for the client – paid for by the contractor. It is an interesting notion to consider how such things can start to be considered more deeply as the consultant seeks to provide the ultimate product.

Project Performance, Close and Operations

Digital reporting on progress is simplified since progress is tracked in the model. All metrics and KPIs agreed at the start around embodied carbon and costs are tracked and displayed on a live dashboard available at any time.

Mystery is removed form the process. The consultant is readily able to demonstrate how the build is progressing on construction, engineering, and any other fronts. Dynamic scheduling means that reviews on what is coming can happen before the fact and it can happen digitally. Simulating the plan can allow all parties to regularly come together and iron out any issues which can potentially cause delays to the process.

Risks are calculated dynamically using Monte Carlo simulations always taking in many data points.

Closing out is simplified since all documents are hosted in the data model. All aspects of close out can be digitally tracked and monitored by the consultant ensuring everything is in place to sign off on the completion of the works.

The model moves from a construction model to an operational model and remember that the data flow has been consistent from inception to completion. It is now ready to be used during the operation of the asset.

The consultant remains involved during this stage to be able to advise on any defects and operational challenges. Performance of plant and equipment was defined during design, it was developed during construction and it now forms the basis of the operational baseline.

The embodied carbon of the project has been tracked from start to finish and is now finalized and verifiable in line with what was budgeted for. Now the same process needs to happen for the operational carbon.

The building has a machine learning system which is optimizing the operation of all plant and equipment meaning there is little need for a facilities management company be involved in this aspect. The system performance is managed by the consultant who is on hand, via a continuing subscription agreement, to assist on all aspects of performance and optimization ensuring planned for operational carbon and dollar costs are achieved in operation.

Proactive maintenance is provided via the digital model which has all maintenance regimes loaded and planned. Early warnings are delivered by the machine learning system around potential plant failures meaning investigative works can happen prior to the fact, business continuity is enhanced.

Issues become easier to resolve since the consultant can track the history of the product or system. Did it have any non-conformances, was there any issues flagged at commissioning stage, was there any installation problems which perhaps were not resolved and/or perhaps did not seem important all the time?

The key thing to note is the consultant has driven the process and being a trusted adviser throughout the process. The client now has an asset which also includes all the data used to build the thing. Nothing is lost and the operational value of the asset can now be maintained to match the investment vehicle which allowed the project to happen.

Summary

It is apparent that the opportunities abound are not being taken advantage of even if we kid ourselves that they are. If one strives to be the very best at what they do I am sure they will be mildly disappointed with most firms operating in the built environment. There is a disparity between what firms are capable of, what clients are asking for and what is needed to deliver the needs of the societal pressures which are faced.

It is easy to maintain what is done, do think in the box, to churn through revenue. But who wants to do this? The market is ripe for extreme disruption and while the elements contained previously might seem like pie in the sky, I assure you they are not. It just takes some bravery, a risk appetite and an inherent drive to do things differently. Of course, linking the entirety of the construction process within a digital workflow is a big task it is surely not impossible.

If we are consistently told that the agreements of the Paris Accord are at risk, are we not duty bound to do something if our industry is responsible for 39% of global carbon emissions?