Questioning the Current Process: Is the Status Quo the Best way to Build?

The construction industry is notorious for working in information silos, leading to poor communication, collaboration, and project outcomes. The organisational and cultural factors creating silos can be hard to change in the short term. However, following over 150 interviews with construction professionals across Aotearoa, several ideas have emerged to help reduce the impact of silos on productivity.

Managing Information Overload The ever-growing number of stakeholders for today’s projects is creating an exponential increase in the number of people involved. This surge has made communication and coordination across all groups a significant challenge. Traditionally, architects and more recently project managers, have been tasked with this role, but the growing workload has made this expectation unrealistic. While technologies such as BIM can assist, they do not reduce the communication load or solve collaboration with all team members.? ?

Projects and programmes of work need a way to curate various types of information sources so that core messaging is universally understood.

In today's fast-paced project environments, it is crucial to streamline information sources and eliminate redundancy. Often, projects are burdened with multiple systems that perform similar functions, creating unnecessary complexity and inefficiency.

At RCP, we advocate for an integrated approach to information management while recognising the use cases of various technology platforms. If project teams are able to eliminate duplication, reduce redundant efforts, and have access to a common data platform as appropriate, they can see a significant improvement in efficiency. By removing the noise and focusing on structured data, the risks associated with disconnected and/or incomplete information can be reduced, resulting in improved decision making and proactive controls.?

Where projects can utilise methodology which involves the automation and aggregation of information flow, there will be improvements in both the system of design and delivery. A core objective should be connecting and centralising information sources without adding more complexity for teams and clients.

No One Wants RFIs - How Do We Reduce Them?

Requests For Information (RFIs) occur during construction projects because not enough design information has been provided, the information is incorrect, or the project has changed in some way. Every time an RFI is raised, there are costs incurred by the consultant, builder, project manager, and the client. No one wants RFIs, and yet, they continue to plague every project. The reality is the year-on-year RFI’s are increasing for a myriad of reasons which are outlined in my previous articles, “Creating Value in Construction” and “Is BIM working for the NZ Constuction Market?”

A solution to reducing RFIs is to focus on pre-construction, challenging the quality of design from project outset and utilising subject matter experts whilst increasing the coordination between design silos via credible technological means.

Scaling buildings appropriately

As the requirements for building services and the need to seismically restraint these services grow, it is getting harder and harder to fit everything in the confined spaces designed for them, whether that is a ceiling cavity, or the myriads of service rooms required. This lack of space is a contributing factor to design issues on site. As there are multiple service engineers, they each design for their respective requirements within these challenging spaces. It may not be apparent, until construction begins, that the combined services and the associated seismic restraint bracing will not fit. This may be due to unexpected downstream design clashes, material availability, or the inability to execute the design in the space provided in the first place. On the other side, there are projects with the opposite whereby the service voids are overtly large.

Therefore, a solution is to challenge and support the respective designers by providing robust preconstruction scrutiny and credible advice to ensure value for money is achieved from scoping of design to handover.

Do Bill of Quantities (BoQ) have a place in NZ?

A Schedule of Quantities (SoQ – or BoQ abroad) is a document prepared by a quantity surveyor or cost estimator that provides project-specific quantities for the items identified in drawings and specifications for a project. To prepare a robust schedule of quantities, the design needs adequate information including a consultant specification from concept stage onwards.

SoQs are commonplace in the UK, Middle East, and Asia. Specifications are updated at the end of each design stage, keeping a track on expected spend, providing project owners with credible cost control and cost predictions. SoQs are beneficial for ensuring an accurate and fair bidding process as it means that competing contractor’s price the project on the same basis. This process is also helpful as contractors can then provide their input during the tender process from which point the Client can use this process as an additional QA measure to cross check the original SoQ whilst comparing (normalising) contractor proposals.

SoQs are not commonly used in New Zealand. Instead, we tend to provide a looser elemental based approach which typically does not provide a robust detailed specification until the latter end of the project. This can place the project at considerable cost risk with potentially unwanted value engineering works well down the design stage.

Learning from the UK market, it makes sense that greater attention should be applied to the preconstruction and the design process. Moreover, making better use of the available technological means would certainly be beneficial for the project also. For example, 5D BIM cost control for projects would provide a completer and more integrated BIM model. The interesting thing here is it so easy to do, yet this is another example where technology is not being implemented to its full potential in New Zealand.

The outcome for allowing for a detailed SoQ would provide a fairer tendering system, as the more accurate the SOQ, the less risk is passed to the contractor. In addition, a SoQ can create a platform for tracking and measuring costs, reducing the need for revisiting designs and removing value engineering aspects when costs exceed budget.

Depending upon the project, the use of a SoQ provides another layer of transparency. This can help improve information flow and communication across silos. This potentially would assist most risk falling to the contractor, and therefore sharing risk more evenly across the industry.

When should Early Contractor or Subcontractor Involvement be used?

Early Contractor Involvement (ECI) engages a contractor during the design and planning stages of a project, to leverage the contractor's expertise in constructability, cost estimation, and scheduling and other measures to improve the overall project outcomes.

The theory is good; however, the market feedback is hit and miss. The project’s success becomes highly dependent on the contractor’s expertise and input, therefore choosing the correct contractor, and or credible super sub(s), with sufficient experience and the ability to provide valuable insights, is essential. ECI contractors also need to be given quality briefs that allow them to add value to a project.

Unfortunately, the higher initial costs are a disincentive for many, as the higher upfront costs are hard to justify in a market that works with very tight budgets, even though these costs are often offset by savings later in the project.

ECI can result in the absence of a competitive tendering environment which could lead to less favourable terms for the client. There can be potential conflicts of interest, as the contractor’s commercial interests might conflict with those of the client. This can occur when a contractor produces a design that cuts out the competition and so managing scopes carefully from the outset and negotiating contract terms is paramount.

The benefits of Early Contractor involvement can be realised through well prepared and managed contracts.

Summary

In the construction industry, traditional methods often create information silos that lead to communication breakdowns and inefficiencies. Our recent consultations with over 150 construction professionals across Aotearoa have highlighted that while overcoming these silos is challenging, effective strategies can significantly boost productivity. One major issue is managing information overload, exacerbated by an increasing number of stakeholders. Although technologies like Building Information Modelling (BIM) help, they do not fully address the need for accurate and timely information sharing. To improve this, we advocate for an integrated approach that streamlines communication and reduces redundancy, ensuring that all stakeholders have the right information when needed.

A unified approach to information management, achieved by leveraging technology to create a cohesive data platform, can assist. This strategy helps eliminate duplication, minimises redundant efforts, and clarifies communication channels, thus preventing outdated or incorrect information from impacting project outcomes. Having a focus on clear, point-to-point communication and a project-specific strategy enhances collaboration between designers and contractors, setting higher standards for efficiency and integration in the construction sector.

Moreover, addressing common issues such as RFIs and design scaling challenges is crucial. By investing in thorough pre-construction reviews and advanced technology for design coordination, the industry can aim to reduce RFIs and avoid design conflicts. Implementing detailed Schedules of Quantities (SoQs) improves cost control and transparency, while Early Contractor Involvement (ECI) ensures valuable contractor insights during the design phase.

At RCP, our Design Assessor team bridges the gap between designers and construction teams, leveraging their expertise to enhance efficiency and minimise RFIs. If you're interested in how our cost-effective Design Assessor service can benefit your next project, contact us today.

Written By Jason Ward - Senior Design Manager at RCP