Signifcantly Reduce the Risk of Major Budget Over-runs · Signifcantly Reduce the Risk of Budget...

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Signifcantly Reduce the Risk of Major Budget Over-runs

Transcript of Signifcantly Reduce the Risk of Major Budget Over-runs · Signifcantly Reduce the Risk of Budget...

Page 1: Signifcantly Reduce the Risk of Major Budget Over-runs · Signifcantly Reduce the Risk of Budget Over-runs ... COST AND ABILITY TO CHANGE . ... AG Araja Construction and Development

Signifcantly Reduce the Risk of Major Budget Over-runs

Page 2: Signifcantly Reduce the Risk of Major Budget Over-runs · Signifcantly Reduce the Risk of Budget Over-runs ... COST AND ABILITY TO CHANGE . ... AG Araja Construction and Development

MEPF Coordination Gives You the Opportunity to Signifcantly Reduce the Risk of Budget Over-runs

By appointing Forsspac, at any time during the creative/construction process, to coordinate your project’s MEPF services you

will beneft from our independence and impartiality as third party construction professionals. You will also have access to our

extensive experience of working on a wide range of buildings, including high-end, high-rise developments.

When managing the risks associated with a building project, there are six basic points of intervention:

1. COORDINATION Coordination of the design at the end of Detail Design phase (Spatial coordination, including 3D clash

detection for all services, and technical coordination including verifcation of all interfaces).

2. COMMISSIONABILITY Commissionability study prior to procurement.

3. TECHNICAL PROCUREMENT Technical Procurement including verifcation of plant selected and package workscope defnition to

eliminate gaps and omissions.

4. MANAGEMENT OF CONSTRUCTION Ensures that the design intent actually gets built.

5. COMMISSIONING MANAGEMENT Making sure the systems are commissioned correctly, operate as required, are fully documented and that

operator training is carried out.

6. TESTING, ADJUSTING & BALANCING Testing, Adjusting and Balancing (TAB) is a vital part of an overall Commissioning plan and is an integrated

process that must be followed to achieve the best possible results.

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The following diagram (McLeamy Curves) shows the relationship over time between cost and ability to change.

COST

AN

D AB

ILIT

Y TO

CH

ANGE

Good ability to change Total committed cost

Cost of changes Escalate

CONCEPT SCHEMATIC DETAIL CONSTRUCTION DOCUMENTS

TENDERING

Alto

most no ability change

CONSTRUCTION

P R O J E C T T I M E L I N E

By commissioning Forsspac, the changes, resulting from due diligence and technical and spatial coordination works, are

undertaken at a time when the cost of change is still relatively low. If changes are left until the procurement is complete or

construction is well advanced, it becomes very expensive, even prohibitively so, to make the changes needed to ensure the

building systems perform as required. This potentially leaves you with a building that will under perform during its entire

life-cycle or having to fund a substantial bill for late changes to the building and systems.

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The ability to reduce budget over-runs signifcantly increases with each trade that is managed When you consider the overall perspective of building costs, you can see that the investment in Forsspac’s MEPF management

service is relatively small, when compared to the dramatic increase in fnal project costs without them.

Final project costs after all changes. Using non-specialist management.

Final project costs after all changes. Using Forsspacs’s design management services.

Project budget after contingency allowance.

What the project should have cost.

INCR

EASI

NG

PROJ

ECT

COST

S

P R O J E C T T I M E L I N E

By commissioning Forsspac’s specialist MEPF management services, budget over-run risk is signifcantly reduced for each

additional trade that is managed. When all MEPF trades are managed together, the overall opportunity to make budget

savings becomes a reality. You will also have peace-of-mind that the all MEPF services will work as intended, or even better.

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Investing in 3D Management can Dramatically Reduce the Number of High Value Change Orders on Your Developments

During construction, the majority of cost over-run is related to MEPF systems and building structures that haven’t been

coordinated during the design process. This means, upon installation, large scale clashes occur requiring rework and a signifcant

increase of high value changes orders.

Clashes between ducts Clashes resolved using 3D modelling

With the BIM process, it is the 3D model / clash detection phase that enables the design of the building to be modifed, removing

large scale clashes long before the IFC / shop drawings are produced.

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Now for the Numbers: For a relatively small investment in 3D, the Return on Investment vastly outweighs the initial outlay.

A signifcant amount of research has been conducted by Dr. Salman Azhar, the Associate Professor and Graduate Program Ofcer

at the McWhorter School of Building Science, regarding Return On Investment (ROI) when using a fully coordinated approach

to design. The table below, included in a paper by Dr. Azhar, shows real-life examples of ROI on 3D modelling and MEPF

coordination for projects undertaken by Holder Construction:

Project Value (US$)

Project Coordination

Cost (US$) Estimated

Savings (US$)

Net Saving after Coordination

Costs (US$) ROI (%)

30,000,000 Ashley Overlook 5,000 135,000 130,000 2,600

54,000,000 Progressive Data Centre 120,000 395,000 323,000 140

47,000,000 Raleigh Marriot 4,288 500,000 495,712 11,560

16,000,000 GSU Library 10,000 74,100 64,120 640

88,000,000 Mansion on Peachtree 1,440 15,000 6,850 940

47,000,000 Aquarium Hilton 90,000 800,000 710,000 780

58,000,000 1515 Wynkoop 3,800 200,000 196,200 5,160

82,000,000 HP Data Centre 20,000 67,500 47,500 240

14,000,000 Savannah State 5,000 2,000,000 1,995,000 39,900

32,000,000 NAU Sciences Lab 1,000 330,000 329,000 32,900

As you can see, in all cases the cost of design coordination was paid back many times over. It was also reported in another paper,

that the majority of projects were completed on time due to the construction schedule being more predictable when coupled

with a competent construction management team.

In this analysis ‘design coordination’ uses the principles of ‘BIM’ in which Forsspac has a proven track record.

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Don’t Just Take Our Word For It, See What Our Clients Think

“ Has been very efcient and supportive in all our concerns,

providing us with insightful recommendations to maximize

our investments. I appreciate more importantly, the after sales

provided where they have been prompt in our queries and

technical support. The investment we have made acquiring

their services has been very cost efcient.”

Redentor Garcia

President

AG Araja Construction and Development Corp.

Rockwell Retail Centre Project

“Phil Thoburn, member of the Rockwell Team that achieved the

impossible! With Sincere thanks for your personal contribution

and that of FPC.”

Peter Gomm

Country Manager

“Forsspac are a professionally driven organization who have

a keen eye for details. Their dynamic approach to Building

Systems Commissioning complements our own desire to deliver

our projects to the highest possible quality. We will defnitely

consider hiring them in our future projects.”

Morris S. Agoncillo

Executive Vice President

Datem Incorporated

Leighton Philippines

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Contact Us Today for More Information or to Arrange a

No Obligation Site Survey

Forsspac Tel: +632 310 5130

2/F Prince Building 117 Rada Street, Fax: +632 310 5134

Legaspi Village, Email: [email protected]

Makati City Skype: forsspac

Philippines 1229 www.forsspac.com

Forsspac is a trading name of eight Pacifc Corporation