1. Getting the Best Value for your
Building Dollar
How we can help!
Abhi Basu
Basu Technology, Inc.
abhibasu@basutech.com
856 245 9082
2. Introduction
Basu Technology, Inc.
Small and Focused
SDBE / MBE
Expert Team
2
(C) Basu Technology, Inc. 2008
3. Background
Over 30 years of experience working on
major capital expansion programs in the
region
Experienced in all facets of project delivery
cycle
Geared specifically to Facilities Construction
Working only with Owners
3
(C) Basu Technology, Inc. 2008
4. Project Experience
Columbia University
Princeton University
AT&T
Brookhaven National Labs
Rutgers University
Others
4
(C) Basu Technology, Inc. 2008
5. What we provide
Top down look from the Owners Viewpoint
Objective advice
Subject Matter Expertise
Technology Implementation
5
(C) Basu Technology, Inc. 2008
6. Our Mission
Empower the Owner with Critical Information
To make better decisions
To be proactive
Save cost and time
Manage Risks
6
(C) Basu Technology, Inc. 2008
7. Services
Project Audit, Process Audit
Project Monitoring & Peer Reviews
Risk Management
BIM Implementation
Set Up and Training
Project Controls
Metrics
Process
7
(C) Basu Technology, Inc. 2008
8. Industry Observation
An Owner can be his/her own worst enemy
Owners have the ability to set the tone for
each project and the potential for a
successful outcome for all stakeholders
FMI – CMAA 5th Annual Survey of Owners
8
(C) Basu Technology, Inc. 2008
9. Cost & Schedule Overruns
Owners identify main causes to be:
Incomplete drawings
Poor Pre-planning process
Escalating cost of Materials
Lack of timely decisions
Excessive change orders
FMI – CMAA 5th Annual Survey of Owners
9
(C) Basu Technology, Inc. 2008
10. Program Governance –
What Owners Can Control
Opportunities and Choices
30% cost & schedule difference
Project vs Program, Life-Cycle Costs
Standards
Scope
Ancillary Scope, Scope Creep, Dark Scope
Alignment
Scope, timing, stakeholders, contracts
Organization
Delivery, Change Control, Communications
Metrics & Reporting
Making business sense
10
(C) Basu Technology, Inc. 2008
11. Improving Program Governance
Identify total scope and stake holders
Create comprehensive framework for
planning and executing
Create standards, establish gating
Align multiple projects and processes
Set up metrics and reporting on Owner needs
Monitor and audit
11
(C) Basu Technology, Inc. 2008
13. How we can help …
Supplement your in-house staff with expert
knowledge and skills
Help set up your Program Management
Office
Immediate ramp-up of critical scoping,
planning, scheduling, risk management and
communications tasks
Help streamline your project delivery process
for maximum benefits
Provide the infrastructure and tools to take
full advantage of information technology
13
(C) Basu Technology, Inc. 2008
14. Specific Areas
Scheduling / Peer Reviews
Project Monitoring / Audits
Risk Management
Claims Analysis
BIM for Owners
14
(C) Basu Technology, Inc. 2008
15. Implementing Technology
Project Management and Project Control
Software
BIM
4D Scheduling
Training
15
(C) Basu Technology, Inc. 2008
17. Construction Cost-Project Cost-Life Cycle
Cost
Building First Costs
Project first costs are only about
Financing / Legal /
15% of Life Cycle Costs
Insurance
100 22
Land
10
80
8
For every dollar of First Cost
6 Furnishings
60
additional 5.67 dollars are spent
AEC
40 54
20
over the Building Life Cycle
Construction
0
1
Dispose
Building Life Cycle Costs
le
yc e
ec us
Re
/R Renovations
De
20
si g
100 Financial / Legal
n
Renewal
15
80 Taxes
17
Maintenance
60
tion
15
Operation
truc
40 18
Op
s
Construction
er
Con
at 20 15
io
ns
/U
0
se
1
17
(C) Basu Technology, Inc. 2008
18. Project Delivery Phases –
Cost of Making Changes
Conceptual Schematic Design
Planning
Design Design Development
Cost of Making Changes
Ability to Make Changes
Construction
Procurement
Documents
Commissioning
Construction
Closeout
Time
18
(C) Basu Technology, Inc. 2008
19. Front-End Planning
A change
here
Which should
have been
made here
19
(C) Basu Technology, Inc. 2008
20. Savings attributed to thorough concept
definition
Study Sample – 62 projects (CII)
Metric – Final TPC / Estimated TPC
Findings
Impact of Poor Design Drawings
20
Over Runs
15
% Cost Over run
10
5
0
High Medium Low
-5
Degree of Definition
20
(C) Basu Technology, Inc. 2008
21. Owners Fail to Track
Total Project Scope
Only part of the scope
is tracked in project
metrics
21
(C) Basu Technology, Inc. 2008
22. Mismatches in Cost Scope and Schedule
Scope
22
(C) Basu Technology, Inc. 2008
23. (Mis)Alignment of Responsibilities
Bilateral Contracts in a multi-lateral
framework
Stakeholder participation
Communications - Lost in translation
23
(C) Basu Technology, Inc. 2008
24. Major Players causing Project
Delays/Overruns
Factors Causing Cost / Schedule Overruns
Scope Changes
by Ow ner
Other Factors
19%
24%
AE Delays
8%
Delays by
External
Agencies
10%
Contractor's
Poor
Performance
39%
24
(C) Basu Technology, Inc. 2008
25. Cost of Rework
Project rework costs average 12.4% of TPC
80% caused by Errors & Omissions in Design
Documents
20% caused by poor construction practices
50% of construction change orders caused
by errors in design documents directly related
to uncoordinated drawings
Change orders cost 0.8 to 3.4% of TPC
Discipline interface review of documents
during design costs 0.1% of TPC
Payback ratio - $8 to $34 for every dollar
spent
25
(C) Basu Technology, Inc. 2008
26. Cost and Schedule Savings with BIM
26
(C) Basu Technology, Inc. 2008
28. Seeking to be a member of your core team
Basu Technology, Inc.
Abhi Basu
E-mail: abhibasu@basutech.com
Phone: 856 245 9082
We would be happy to come in and present to
you specific ways we can save you money
28
(C) Basu Technology, Inc. 2008