www.enr.com/articles/19030-why-im-matters-8-golden-rules-to-contain-costs-reduce-risk

Why IM Matters: 8 Golden Rules to Contain Costs, Reduce Risk

October 16, 2009

According to a report by the National Institute of Standards and Technology, about $16 billion worth of inefficiency
and waste in the U.S. construction industry is due to lack of interoperability – people planning, bidding or building off the wrong information.

With plans being such a critical component of any project, general contractors and developers need to pay special attention to who is handling their information, but this is often an area where they feel they can cut corners or leave it up to the designers to choose the best partner. I’ve heard too many stories where millions of dollars of information – drawings, specs, images, schedules
– were wiped out and lost forever due to a lack of digital infrastructure and interoperability. Even if plans are not lost completely, slow or inaccurate postings and distribution can have a cumulative effect, causing great
expense and delays.

Many builders have started taking a “doit- yourself” approach to information management to save money. Ironically, this strategy can backfire into an expensive, and risky, proposition for builders. Traditionally builders have just been in charge of actual construction while architects have been responsible for design. With the advancement of building information management, this line is starting to blur and builders are starting to incur some liability for the accuracy of the design model. This is risky enough without builders also taking on the liability of accurately distributing the information as well. A competent information management partner is also a risk management partner. They can help not only settle disputes, but prevent them. After 30 years of experience working with general contractors and developers on projects large and small, I have seen the classic pitfalls and money traps that builders who attempt to manage their information without a professional partner go through. I have also seen projects completed ahead of schedule and on or below budget thanks to efficient, service-oriented information management professionals by their side every step of the way. Here are the eight most important things to consider when looking for an information management partner:

Gene Klein
Gene Klein

1. Risk management experience


Acting as an impartial third-party manager, your information management partner helps mitigate risk for everyone involved. From the developer’s point of view, their biggest challenge when errors are made is being architect and the builder. Somebody has to pay for mistakes and delays, but who – the architect, the builder, or the developer? A good information management partner is an objective advocate for the truth. They can track all activity related to information on a project, no matter how many complicated addenda, change orders or construction bulletins might be layered on. They can provide litigation support, but more importantly, prevent disputes through accurate and timely reporting. Ask your prospective information management partner about their experience helping customers with risk management and get specific examples. Find out if they carry Errors and Omissions insurance. A strong E&O policy conveys that your document management partner is serious about their commitment to your project and accuracy of information.

2. Robust online planroom functionality

All sorts of Internet-based solution providers have sprung up touting a bundle of useful tools, but these tools are usually disconnected and limited. Don’t get distracted by a flashy Web site. Make sure your information management partner’s plan room is built around an authoritative online system with full tracking and the assurance that the image
on the screen is identical to the print image they are planning and building from. Many reprographers’ so-called planrooms are really just simple FTP sites with a shopping cart to order paper through. While robust tracking
functionality is arguably the most important aspect of an online planroom, other key components include high quality image files for accurate online review; the ability to print files on demand; offering multiple file types to enable interoperability; and a strong digital assets team of professionals behind the planroom that will double check every document for accuracy.

3. Don’t be deceived by a low base unit cost

Most construction professionals are taught to look for the lowest price per nail, wallboard or lightbulb. However, because of the changing nature of construction documents, it can be hard to estimate the quantity of information
you’ll generate. Therefore, the best strategy to control costs is to fi nd providers that give you ways to use information more freely. An all-digital approach, although it may appear more expensive out of the gate, will likely save you more money over the course of the project, especially for complicated, multi-faceted projects. Many reprographers have a low base cost, but may charge onerous fees for using the online tools that don’t lead to print. They may charge you extra fees to create work orders via the online system for online review or for other methods of digital access, creating unnecessary barriers to open information sharing. Knowing what’s included in your rate structure in advance will avoid any expensive surprises that could’ve been avoided.



4. Top notch IT infrastructure and equipment

Savvy builders invest in the latest technology in building materials and processes in other areas, so why should information management be any different? Information transfer speed and reliability are critical to keeping a project on schedule. It is something we take very seriously at BarkerBlue. We have an enormous investment in computers, servers and routers in a very secure server room – our version of Fort Knox – with extensive data and power back up and even backup air conditioning. We are the fiber optic hub for our local business district and have a massive
internet pipe which moves data at 40 megabytes per second. This commitment might seem excessive, but our customers should never have to worry about having their data – complete, current and 100% accurate – arrive on schedule with no surprises. A disaster recovery plan, co-location facilities and integration with other technologies and systems are also important. Request a tour of the facilities to ensure they’ve invested in their IT infrastructure.

5. Commitment to reducing paper and overall environmental impact

How committed are they to reducing paper? For the past several years, BarkerBlue has aggressively been cannibalizing our printing business by making information we host downloadable, printable, and enabling activities
such as digital on-screen take-off for bid sets and other documents. Our customers tell us that by fully utilizing our technology they print between 25% and 50% less on each project. Watch out for reprographers who use their online planroom as a Trojan Horse to secure more print ordering. One telltale sign is a planroom that only shows
low-resolution drawings and doesn’t allow the user to download digital fi les, forcing them to print everything.

Beyond using recycled paper, advanced planroom technology that reduces the amount of printing required, and using an information management partner that promotes other sustainable practices like energy efficiency and renewable energy, could earn a project Innovation in Design credit under the USGBC’s LEED rating system.

6. Educated, professional staff

While cutting edge software and equipment is important, there is no substitute for experienced, professional service. Make sure your information management partner is committed to ongoing staff education and that the people running your jobs are trained in digital document management. This is another reason to make a visit to the facility to get to know the people who will be handling your information. Even in today’s digital age, nothing is more effective in ensuring quality than building face-to-face relationships.

7. Industry leadership and key partnerships

I have spent about a quarter of my time over the past decade helping advance the reprographics industry through ReproMAX, the largest network of independent reprographers in the world. A shop that’s not involved with a leading trade group is less likely to learn about best practices or have access to cutting edge technology. ReproMAX this year forged a technology partnership with McGraw-Hill Construction to develop a set of integrated products and services for document management and distribution for the construction industry. A shop that’s not connected with industry
know-how like this doesn’t have nearly the same capabilities or expertise.

8. Long track record of satisfied customers

As most construction professionals know, the lowest bid you receive usually isn’t the best company to work with. In construction, experience is key. Look for a reprographic firm that not only has experience with the type of project you’re building, but that also comes recommended from other fi rms. If that firm has long-term relationships with clients, you can be more assured that the reprographic company provides great service, technology and at a fair and reasonable price. Much of BarkerBlue’s new business comes from internal referrals within existing accounts. We
find that project managers or directors from other projects will ask for us by name on their new jobs. Clients like Webcor Builders, DPR Construction, Myers Development and Rudolph & Sletten have been with us for over 20 years on average.

With green building, advancements in digital design, plan development and distribution, the construction business is no longer a slow, stodgy industry. As the industry evolves, traditional blue print shops that cling to papercentric processes and refuse to innovate will be left behind. It’s critical that builders have an information management partner that is not only with, but ahead of the times and a leader in their field.

Gene Klein is the CEO and owner of Barker- Blue Digital Imaging in San Mateo, Calif. BarkerBlue has been a leader in bringing cutting edge technology to the blueprint business for more than 30 years. Klein is the past chairman
and current board member for the ReproMAX network.