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Obayashi’s Challenge Towards Construction Industry 4.0

Request for Proposal

1. INTRODUCTION

People over the age of 65 make up a quarter of Japan’s population. This percentage is

forecasted to increase to 40 percent within the next 30 years due to Japan’s birthrate – the

lowest globally.

Casting light on a specific sector will help illuminate the impact of this one-two punch. A

current survey by the Japan Federation of Construction Contractors shows that one-third

of the labor population will retire in the next decade. Rarely has a call for change been

louder. Without a revolution in innovation to boost productivity, Japan’s infrastructure

will deteriorate and in turn cause a broader, debilitating economic impact.

Unfortunately, the current trends are not in Japan’s favor. Productivity in the construction

industry has remained stagnant for decades. While construction methods are stalled, other

industries, such as manufacturing, have flourished through the waves of revolution

starting with “Industry 2.0” to the current “Industry 4.0.”

To drive similar gains in construction, Obayashi Corporation (Obayashi) is issuing an

ambitious search for technologies and innovations – “The Obayashi ‘Construction 4.0’

Challenge.”

2. PROJECT DESCRIPTION/SCOPE

Obayashi is specifically seeking technologies that address one or more of the

following four technical topic areas:

• Autonomous Design (AiD, AiC)

Most of building design is composed of mundane elements such as

repetitive data entry, checking against regulations and checking conflicts

among multiple disciplines. Obayashi is interested in automating design

processes to improve productivity and allow architects to focus their time

on creative design elements.

• Automated Construction Process

Lack of skilled labor is driving the construction site towards automation.

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Obayashi believes that the first area to automate is in-site logistics so that

workers can have access to materials “just in time, just in need, and just

in space”

• Augmented Facility for Users

With IoT., the new value of buildings will be that it can respond to

occupants personally. As a first step, Obayashi is looking for non-contact

technologies that can recognize the physical and emotional needs of

individuals in a building.

• AI Knowledge Assist

Obayashi’s goal is to develop an AI assistant to help young employees

navigate through projects so they can learn quickly and execute without

errors.

Each of these challenges is discussed in detail in following section, “Technical

Topic Area.”

*Even though applicants' technologies/proposals are not directly related to the above four

areas, applicants are encouraged to submit a proposal, since Webcor, one of Obayashi

group company, has broader interests on technologies/innovations such as (a)Sprains &

Strains, (b) Access & Egress, (c) Material Inventory, (d) High Performance Concrete Mix

Designs, (e) Trade Damage, (f) As-built Survey, and (d) Speed of Technology. Your

proposal will be considered as further discussion with Webcor.

3. TECHNICAL TOPIC AREAS

Obayashi is seeking technologies that address an aspect of one or more of the following

four technical topic areas (TTA). Obayashi is interested in innovation across the topic

areas and realizes that a single provider likely cannot fulfill all, or even a substantial

portion of the desired capabilities. Respondents are encouraged to apply even if they only

meet some of these goals.

3.1 TTA #1: Autonomous Design (AiD)

In the last three years, Obayashi has expanded its revenue of domestic design-build (DB)

projects, overwhelming the ability of the design department. From a profit point of view,

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Obayashi would prefer more DB projects1. However, the following several reasons have

prevented the ability to scale up processes, constraining marketing activity.

1) It takes time to train young designers and engineers. New designs must be

checked against multiple disciplines (M/E/P) and regulations, which requires

empirical knowledge and experience to perform efficiently.

2) This type of work can only be outsourced to a limited number of trustworthy and

skilled partners. However, most partners tend to be as busy as our design team.

By reducing the amount of busywork, our designers will have the opportunity to focus on

improving design quality and be more creative.

Need Statement: “Need a way to improve design productivity and creativity for all

designers including architects, structural and MEP engineers, that will achieve high

productivity, high quality, and high creativity despite personal skill and appropriate

human resources.”

Here is the list of requirements and key constraints for an AiD system:

• Automatically check designs against standards and regulations, which are

dependent upon site location.

• Optimize for cost, space allocation, structural performance, and energy

consumption depending on user preferences. The second step will be to optimize

exterior and interior design based on user preferences.

• The primary target for an initial system is to design an office and/or data center.

Future iterations may explore other types of structures such as hotels, restaurants,

shopping centers, factories, dams, bridges, and tunnels.

• These types of rooms must be included: offices, executive offices, conference

rooms, restrooms, closets, copy areas, amenities, elevator shafts, and the

corresponding mechanical, electrical & plumbing (MEP) ducts and pipes.

• Solutions must be compatible with our corporate software: Autodesk Revit and

Tekla.

3.2 TTA#2: Automated bldg./infra. Construction System (Ab/iCS)

The major obstacles to productivity on construction sites are logistics and coordination

issues. This includes (1) moving and distributing the materials to work locations, (2)

1 Please note that the average profit of DB projects tends to be much higher than that of

Design-bid-build projects.

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waiting time to use major equipment such as elevators, (3) cluttering of the floor space

from materials, and (4) waiting for pre-processed work to be done. Pouring the floor

concrete usually triggers many interior and exterior materials to be brought to the floor,

causing congestion for workers and equipment. Thus, improving in-site logistics toward

“just in time, just in need, and just in space,” will have a large potential to improve site

productivity.

Need Statement: “Need a way to deliver/deploy construction materials “just in time,

just in need, and just in space” for construction managers and sub-contractors, that

will not only remove obstacles, but also achieve high productivity.

Here is the list of requirements and key constraints for an Ab/iCS system:

• Automatically coordinate delivery timing and quantity of materials based on

information from the BIM model, master schedule, and subcontractors’ inputs.

• Automatically allocate and deliver materials to the working area, “just in time,

just in need, and just in space”.

• Ability to move and place materials within a site.

• The primary targets are high-rise buildings with steel structures and/or reinforced

concrete structures.

• The target types of materials would be for exterior and interior work such as

prefabricated light concrete (ALC), gypsum board, brick, light steel, glass, door

frame, furniture, and wood. Configuration and weight of each material are varied,

but applicants can presume that each stack of materials are less than 1.0 ton, within

L=3.5m W=1.0m H=1.5m.

• Ab/iCS solution may include material handling robots, AI, self-positioning

technology with high accuracy, coordination system, utilizing BIM data, and

automated obstacle avoidance. If robotic technologies are proposed, weight and

configuration need to be specified to determine whether they can be supported by

other construction equipment (cranes, elevator, etc.).

• Large size construction equipment such as Tower Cranes and EVs can be assumed

to be available at a site. Below is one example of temporary EV equipment, which

has about 1.0 ton capacity and L=4.08m x W=1.065m x H=1.8m. Larger EVs

could be used depending on the construction plan.

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3.3 TTA#3: Augmented Facility for Users

Contract based businesses are commoditizing construction processes and services,

competing with Obayashi and preventing their further expansion in the domestic market.

Obayashi would like to strengthen their presence in the market by offering a new portfolio

of technologies that will allow facility owners and users to interact differently with the

space, deriving more value from the building. With IoT, the new value of buildings will

be that it can respond to occupants personally. As a first step, Obayashi is looking for non-

contact technologies that can recognize the physical and emotional needs of individuals

in a space of a building, in particular, in the meeting room. The accumulated data from

users can then be incorporated into future building design process, such as the AiD system

presented by Team T.

Need Statement: “Need a way to provide A NEW VALUE of the building. A building

will affect people inside to improve their conditions, to increase work productivity,

comfort, etc. This NEW VALUE will differentiate a building from others, which will

lead to Obayashi’s expansion in the market.”

These are the requirements and key constraints for an Augmented Facility:

• Use of automatic, non-contact technologies to recognize the physical and emotional

needs of individuals in a building.

• Automatically change the environment (such as lighting, air-conditioning, music,

fragrance, and color/texture of interior) surrounding an individual based on the

analysis of their physical and emotional needs.

• If there is not improvement by changing his/her environment, the building may

recommend the occupant go to a different place in or around a building such as the

green area, cafeteria, library or therapist.

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• The primary target for this proposal will be around augmentation of the meeting

room. Depending on the purpose of the meeting, users can change the room to

complement their goals such as (1) Productivity, (2) Innovation, (3) Socialization, (4)

Ceremonious, and (5) Comfort & relaxation.

• The primary purpose of this augmented meeting room is to enhance the meeting

purpose set by users and influence group behavior and attitude.

• The solutions may include algorithms to recognize human emotion and behavior

through biometric data.

3.4 TTA#4: AI Corporate Knowledge Assistant

The fatal accident ratio in the construction industry is much higher than the average of

the whole manufacturing industry, even though the total number of accidents is decreasing.

Most accidents are caused by human error, lack of knowledge, and lack of attention. Thus,

the same types of safety accidents are commonly reported. Many counter actions are taken

such as circulating notifications, holding emergency safety meetings, and educating

through e-learning system. However, younger and/or unexperienced people may not be

aware of these important resources. As a first use case of TTA#4, Obayashi would like to

develop an AI assistant that recognizes a dangerous situation and warns users of the

relevant safety concerns. Eventually, the assistant will be a system that can help young

employees navigate through projects so they can learn quickly and execute without errors.

Need Statement: “Need a way to digitalize corporate tacit knowledge and to guide

Obayashi staffs effectively for all Obayashi staffs that will achieve high productivity

and high quality construction despite personal skill and appropriate human resource

assignment and education.”

There are the requirements and key constraints for the assistant include:

• Automatically show and suggest relevant information to make a user aware of the

unsafe situation that is nearby.

• Automatically show a warning and suggest how to handle an unsafe situation from

past projects and a “know-how database”

• Automatically suggest the contact information if someone needs to be notified

• Solution ideally includes speech recognition and visual recognition.

• A potential solution might send a warning signal to the operator of a machine and/or

automatically stop the movement of a self-driving machine (such as a shovel)

• Automatically file a safety report based on monitoring data.

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The information may be used for (1) accident archives, (2) regulations, (3) handling

guidance, and (4) contact information.

• The proposed solution should be able to search through many data types such as PDF,

word, excel, ppt, photos, CAD, BIM, and movies.

• Japanese language is preferred; however, English can be acceptable as a starting point.

4. PROJECT DELIVERABLES AND PHASES

Depending on technology readiness and/or approach, deliverables may range from Proof

of Concept papers to fully deployable solutions. Applicants must describe their

technology readiness level according to Obayashi’s phases and what the intended phase

will be at the end of the project. Obayashi defines each of these potential deliverables as

follows:

Phase Deliverables

1 Proof of Concept / Working Prototype (simple test environment)

2 Working Prototype (simple test environment) to Working Prototype

(complex test environment)

3 Working Prototype (complex test environment) to Initial Production

Model

4 Pilot deployment and/or data acquisition

Proof of Concept: Paper documentation inclusive of verifiable test evidence,

technical drawings, software or other proof that the technical approach is sound.

Working Prototype (Simple Test): Simple test prototypes can range from “breadboard”

mock-ups to single test components that demonstrate working technology. An example

of a simple test prototype would be a device user interface that enables basic

communication with and/or control of a device in a controlled test environment.

Working Prototype (Complex Test): Complex test prototypes may not be fully

productized but would be able to demonstrate all features and functions of a technology

and be tested in more complex environments. An example of a complex test prototype

would be a device user interface that enables multi-modal communication with and/or

control of a device in a mock operational environment.

Pilot Deployment: Technologies reaching this level would be fully completed designs

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and reputably provide all proposed features and functionality. Initial production models

would not need to be provided in multiple quantities.

5. AWARD DETAILS

Applicants will include a proposed budget in the application, justifying the amount of

funding that is being asked for. Proposed projects may be in the $100k to $2 million range

depending on scope (part or whole/multipart). Funding for each award will cover a period

of performance of 6-18 months. Successful projects will be eligible for subsequent

funding, subject to negotiations with Obayashi.

Obayashi shall provide the following unique opportunities for selected applicants:

• Awarded applicants can have access to available construction sites and data to test

technologies.

• Obayashi can provide access to their network of sites, sub-contractors, and relevant

parties in order to aid the project.

• Awarded applicants will be partnered with an Obayashi champion who will provide

guidance for both the administrative process as well as further R&D development.

Obayashi and awarded applicants shall file and exchange necessary documents such as

Non Disclosure Agreement, Letter of Intent, and/or Service Agreement/Co-development

Agreement.

*Please note that for inventions conceived solely by an applicant, the applicant will

own the invention (and any patents thereto) subject to a nonexclusive, fully paid-up,

perpetual, worldwide license to the Applicant; (b) for inventions conceived solely by

Obayashi Co, Obayashi will own the invention (and any patents thereto) subject to a

nonexclusive, fully paid-up, perpetual, worldwide license to Obayashi; and (c) for

inventions conceived jointly by Applicant and Obayashi (“Joint Inventions”), the

parties will jointly own and will be free to practice and exploit such inventions (and

any patents thereto)

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6. GENERAL INFORMATION AND INSTRUCTIONS:

6.1 Response date:

Event Time Due Date or Date Due

Kickoff Event 9:00 AM PST* Oct 3rd, 2017

Applications Due 11:59 PM PST* Nov. 12th, 2017

Invitation for Oral Pitches N/A Nov. 22nd, 2017

Oral Pitch 8:30 AM PST* Dec. 6th, 2017

Notification of Application Evaluation Results N/A Jan. 31st, 2018

Closing Date 11:59 PM PST* March 31st., 2018

※ Pacific Standard Time (PST)

※ Obayashi may decide to close the call early/late. If this occurs, Obayashi will

send a notification 7 days prior to closing the call.

※ Applicants can submit their application multiple times right after the kickoff

meeting until the final due date. Applicants can start discussing needs and pains

with Obayashi team members before the due date.

6.2 General Instructions

6.2.1 This solicitation includes a requirement to submit proposals (heretofore

“applications”), subject to the date identified in the “Response Dates” table above,

which will be reviewed by Obayashi and may result in an offeror (heretofore

“applicant”) receiving a request to provide a fifteen to twenty minute (from 15 to

20) oral presentation (heretofore ”pitch”).

6.2.2 Written applications as described in 6.3 must be submitted in the following e-mail

box by the closing date and time of this announcement: info@svvl-

construction.com. Applicants will receive a reply to the application email

ackngeedging receipt. Pitches will be entertained by invitation based on

applications and are the final evaluation before potential award. Invitations for oral

pitches will be planned on December 6th and/or 7th, 2017.

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6.2.3 Obayashi reserves the right to select for award and to fund all, some, parts, or none

of the applications received in response to this solicitation.

6.3 Application Requirements

6.3.1 To be considered for award, offerors MUST do the following:

Submit a written document in Adobe PDF format including the architectural

Intellectual Property diagram. The total number of pages including the

application and diagram may not exceed 10 pages. Applications must describe

the work proposed and answer for written in section 6.3.2. Applications should

also provide an overview/strategy for the overall effort to commercialize

proposed products. Please note that only content contained in the application

will be considered during the review process. No other documents, videos or

links to information will be considered. Offerors should be alert for any

amendments and changes to this solicitation.

Applicants shall send an email to [info@svvl-construction.com] with your

name and company. If the applicant is chosen to pitch and provides a successful

pitch, we will send an invitation to your email address.

Applications must be compliant with the aforementioned response dates and

other compliance requirements in accordance with good manner. Submissions

not in compliance will be rejected.

There are two steps to select partners for co-developing R&D project. The first

step is that selected applicants conduct a short presentation in the beginning of

December. After the presentation, as the second step, Obayashi will conduct

rolling reviews and anticipate that reviews will be completed within 30 – 60

days after the presentation.

6.3.2 Written applications should answer or address the following:

a. Describe your technology, how it works, and its potential relevance to

the problem outlined.

b. In what ways, does it push the state-of-the-art? What is innovative or

novel about your technology as compared to other solutions?

c. Describe the maturity of the working prototype?

d. How would you apply co-developing from Obayashi to adapt your

product to a use case(s) as described in the RFP call?

e. What milestone achievement throughout the course of a three-to-one

year co-development period should be used to trigger payment of the

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Obayashi investment?

f. What level of outside investment has your company received? From

whom?

g. What is your annualized run-rate based on your current

weekly/monthly revenue? What is your current monthly burn rate?

What is your month-over-month revenue growth rate (USD)? How

much revenue did you book in past 12 months?

h. Are you cash flow positive?

i. How many active customers or users do you currently have?

j. Describe your company – How old is it? Where is it located (e.g.

multiple locations, sales/R&D in U.S. Japan, and other countries)?

Number of employees?

k. Describe the management team – Who are they? What is their

background and history (e.g. previous startups, etc)? Qualifications of

the key project personnel?

6.3.3 The following evaluation criteria written in [www.svvl-construction.com]

will be applied to the application evaluation process, and specific to this call,

applications will be reviewed for:

Ability to help Obayashi operational missions or critical infrastructure

facilities;

Ability of the device technology to operate in diverse and demanding

weather conditions;

Durability and expected longevity of the technology;

Overall implementation costs, including maintenance costs.

Training requirements for operation and maintenance;

Ability to interoperate with and/or supplement capabilities of other

devices

Ability to adapt to potential future technical environments, protocols, and

standards;

Financial soundness of the company, and the business model based on the

technology to be supported;

The scalability and cost-effectiveness of the proposed technology or

solution;

Existing relationships with relevant entities within the industry;

Access to product distribution channels;

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Company and/or personnel experience in the industry or security sectors

applicable to the device environments in which the technology will be

deployed.

6.4 Application Format

There is no formal structure format, applicants must submit a PDF document.

6.5 Pitch Format and Requirements

Applicants invited to present pitches will be limited to fifteen (15) to twenty

(20) minutes for their oral presentations. In addition, applicants making pitches

may provide up to ten (10) slides for presentation in either Microsoft

PowerPoint or Adobe PDF.

6.6 Contractual or Technical Inquiries

All contractual or technical inquiries to this solicitation must be emailed to

info@svvl-construction.com. Emails submitting questions are to include “Q

about Obayashi’s Challenge” in the subject line. Questions will only be

accepted and answered electronically.

7. CONTACT AND ACCESS INFORMATION

URL Website: www.svvl-construction.com

Obayashi Silicon Valley Ventures & Laboratory (SVVL) Office:

Address: 951 Industrial Road, Suite C, San Carlos, CA 94070

E-mail address: info@svvl-construction.com

Staff:

Dr. Tamaki Horii, GM of OIPT

Mr. Hiroto Sato, VP of SVVL

Dr. Takashi Tsuchiya, Development Manager of SVVL