Tag Archives: consulting

Spaced Out and 5 other mega trends in the property sector

Morocco and Spain (NASA, International S by NASA

Last week I attended the Green Building Council of Australia’s Green Building Day in Sydney. One of the notable changes in the professional development events held by the GBCA over the last year has been the broad range of topics impacting upon the design, construction and property industries which are being discussed at these kinds of events – I think this is really great to see as in my view there is a shortage of good professional development and training events available for architects and designers. (Green Building Day is also great for scoring your GreenStar accredited professional CPD points – you can get a whole years worth in just one day.) This year the keynote speaker was Bruce Precious from The GPT Group, speaking on Global Mega Trends and the Property Sector. I’d seen Bruce speak before on the GPT offices at MLC (and blogged about it here) . As I’d enjoyed his previous presentation and I was in need of a few more CPD points I signed up for the morning session. As I got so much just out of Bruce’s presentation and the panel talk following it, I’m going to focus on just that part of the morning. If you missed the day and were hoping for a full wrap, sorry but you will have to hunt elsewhere in the hope someone else has blogged about the rest! (Trust me I’ve picked the best bit for you)

Bruce’s presentation was covering research that The GPT Group undertook in conjunction with CSIRO looking into mega trends affecting property industry. The aim of The GPT Group in looking into these mega trends is to be able to convert threats into opportunities. Bruce noted that if there is evidence of a trend it has already happened, it is historic and doesn’t guarantee the future. I’d also note that if the research has gone this far and now being pushed out to the public its probably not the cutting edge trends of the minute – but then thats part of the point isn’t it, a mega trend is one that tends to last as while as well as have a large impact.

As so often is frequently commented upon in social and technology circles, Bruce commented on the fact that the world is accelerating, the pace of change is ever increasing. Does this mean we can still identify long term trends? This one is my question – but I think when we get to what are the 6 mega trends you will probably agree yes we can.

As well as long term trends there are shocks and tipping points, man made and natural. Whilst these can have just as much impact as the longer term mega trends, they are not something we can predict or our businesses can plan for. Although sometimes these shocks or tipping points could perhaps have been predicted? My question – Global Financial Crisis – shock or trend? But lets not go there – lets go now to what are the six mega trends which The GPT Group identified as having the most impact on their business, the property sector in Australia. Now see if you can guess what they actually mean…I love the names, great idea whoever came up with these catchy sayings.

1. Spaced out
2. More from less
3. The orient express
4. Behind the scenes
5. Tangible intangibles
6. Forever young

Spaced Out
No it’s not about the fact we have less office space per person than ever. It’s about tech savvy people, being constantly connected, the change in how we communicate and what information we have available to us due to the massive changes in technology over recent years. It includes big data, but as Bruce pointed out we have to get from big data to big information, perhaps he thought we can then get to big knowledge but will big wisdom ever exist?

In practical terms, GPT are developing apps based around the concept of the shopping centre as the community hub. The apps not only display info about the centre but link social networks. In future,sensors will personalize this experience even further.

In the workplace, technology allows flexibility and movement – the freerange workplace. The empty desk could be used by anyone, not just someone from our own organisation. GPT has invested in Liquid Space – a start up company base on a concept similar to Airbnb and are now trialing spaces in Sydney and Melbourne.

More from less
This one has the most obvious title – using less – less water, less energy, less materials. Bruce took it in an interesting direction beginning with a discussion of the growing intellectual potential of the world is due to world growth, growing affluence, and participation of women. (I thought it was a great rant by the way!)

GPT are looking at cutting use of natural resources – reducing water, waste, energy etc. Bruce discussed recycling and the possibilities of improving recycling – upcycling rather than downcylcing. Eg rather than grind glass up into road base, can it be used as something higher? Aparently there is a company upcycling dirt from street sweepings which contains a high amount of precious metals, as apparently do old mobile phones! These are generating new possibilities for mining resources.

For GPT and the property industry in Australia energy savings have been a key change in recent years. GPT is part of the The Better Building Partnership which consists of many leading property companies in Sydney. Romilly Madew, the CEO of the GBCA is quoted on their website as saying “Partnership is the new leadership”, Bruce questions could mankind’s new force be cooperation? We now have a database of water, waste and energy covering a large chunk of the local Sydney commercial building market. This is a great resource for the Sydney property market and others moving forward.

The orient express
The growth of China and other eastern population centers – a scale of populations that is unimaginable as an Australian. A company sales conference of 3000 people came to Sydney, this was just their top people! They booked the bridge climb for days solid! Can we even visualise this scale? Bruce recommended Gapminder.org as a way to visually see the changes and development of the world across many measures of large population centers. (There is a great gapminder TED talk too).

Behind the scenes
Supply chains and logistics are changing – both due to the internet and globalisation. I think there might be a lot more interesting stories behind this one.

Tangible intangibles
We are moving beyond consumerism as product consumption and into experience consumption – for example travel. Shopping centres for example are now experiential as well as for the function of shopping. Community spaces, outdoor spaces, gathering spaces.

Forever young
The impact of ageing and disability on design. The space requirements for motorized scooters and wheelchairs.

I thought the last 3 trends could have been discussed further, all of them will impact on design and could be quite interesting. I can see why the trend More with Less was a focus at a sustainability event, but it did seem that maybe Bruce was running out of time at the end – I would have been quite happy to listen to more. Bruce’s presentation was followed by a panel discussion moderated by Romilly Madew with Bruce, Siobhan Toohill (Westpac) and Richard Palmer (WSP) who brought some interesting perspectives as well as answering audience questions on the topic of mega trends and the property industry.

What stories would you add to these last 3 trends? What do you think are the mega trends affecting the property industry? CSIRO apparently came up with eight of which GPT chose to focus on six. Do you think the trends elsewhere are the same as in Australia? Some of the other interesting trends raised in the panel discussion following were the social and sharing economy and the rise of the city.

It is mandatory that external walls are waterproof: What do client design guidelines, specifications and requests for tender have in common?

Red boat - Venice by MorBCN, on FlickrSeriously I am not joking – this sentence came out of a client design guideline document. I am a little worried about the standard of their existing building given that they feel the need to write this out for their future architects to read. Surely for any building waterproof external walls is a pretty basic design expectation? The client shouldn’t have to ask for it. If the walls aren’t waterproof I’d say its a pretty big mistake, I’m pretty sure it’s negligent either on the part of the architect or the builder – so why write it down? It’s also pretty unlikely that it was deliberately designed that way, so putting it into a design guideline isn’t going to fix it. All it does is create work for someone to write it (the client organisation probably paid an architect to write this down) and more work for their next architect to read it. And whilst we all want more work,I think as architects and designers we would rather our clients were paying for something of value – for example our design skills – than this kind of bureaucratic process that wastes everyones time and in the end achieves nothing.

Originally when I started thinking about this post I was only thinking about client design guidelines, but then I realised that a similar problem exists with the specifications we write for builders, the briefs we or our clients write and request for tender or proposal documents written by our clients. We all spend a lot of time writing down things that are obvious, standard practice or a stautory requirement. How often have you read any one of the above documents that says the building has to comply with the BCA (Building Cde of Australia)? Doh – of course it does (assuming its in Australia!). What is much more important or relevant is specific details of how this building needs to comply – such as the levels of fire rating required. But that’s not defined. It’s left up to the project team to resolve – no problem, but they would have done that anyway without being told the building had to comply with the BCA.

All of these documents are often necessary and valuable documents for communication between parties in a construction project – but frequently seem to provide no value – just waste everybodies time.

In looking at client design guidelines what I like to see is actual requirements and details. For me, dealing mostly with interior design guidelines, I find that usually finishes, furniture and signage requirements are reasonably well defined, not surprising, as this is the look and feel as well as interchangeability of components – one of the main reasons for a large client organisation to have design guidelines in the first place. However, even with these items, often you start to get into the finer detail and things like materials or construction are not so well defined – is that Parchment white laminate table on 25 or 33mm thick board. And the thing is, if a client has gone to the trouble of having a design guideline more than likely they care about this level of detail, so then I have to ask what seems like a million questions.

It tends to get even more poorly defined when it comes to construction of fitout – partitions, doors, door hardware. Again, it seems misty definitions are typical. If you have a standard expectation for how partitions are constructed to achieve a certain level for acoustics – how about instead of referencing the Australian standard you just give me the details? That way you will save yourself getting a different acoustic engineer to give you advice on the same partition construction over and over again.

For some reason building services often seem to be a little better defined, but maybe this is because I’m not getting into the detail of it, and its a similar situation to the furniture. Perhaps some of my readers out there want to comment on this?

The problem seems to be that clients want to have design guidelines but they don’t want to take on any of the risk or liability for the design. They want to tell the consultant architect or designer what to do, but not to tell them too exactly, because then it somehow seems like the architect or designer has some kind of choice or responsibility. This is a ridiculous situation, wasting everyone’s time and money (and one I wonder which would stand up in court if tested anyway). If you as client have certain requirements or ways of doing things that have worked in the past – just tell your architects or designers – and if you do it the same way all the time, have someone write it down.

Moving to the other side though, we architects can be just as bad when it comes to specifications. I usually use Natspec (an Australian standard specification package) to put together my specifications. I want to point out that none of my comments are specific against Natspec but apply to the industry and the way we have come to write specifications generally. To me, specifications basically come into 4 parts – schedules/items of stuff that go into the building, installation methods, standards and submission requirements. So – the stuff that makes up the building, that’s pretty critical, if we don’t specify that we will have a problem. Now how to install it – is that our job or the builders job? And what’s the point of writing ‘install to manufacturers specifications’, that’s pretty obvious? Or even more stupidly why copy out the manufacturers specifications and standard details? As for standards – why do we need to reference them? Shouldn’t it be expected that glazing will comply with AS1288 as that’s the standard that is applicable? As for witness points and submissions, we frequently request loads of items that no one might ever look at. That is, until something goes wrong. And that is the point of most of the specification, it seems to be there for when something goes wrong and isn’t done properly – on many jobs I bet its not ever even read by anyone on the contractor team. It’s a shame we put so much time into something that’s almost just in case.

So what can we do to change all of this? Part of the problem is that our industry, so frequently all of the parties are separated by contracts which seem to actually prevent people from working together to sort things out and do things better, and everyone is trying to pass risk onwards down the chain. Outside of individual projects, when do clients, architects, engineers and contractors actually talk to each other about how to improve the way we work and construction industry productivity? Not so much in terms of making money – but in terms of all of us working smarter. Not very often.

One of the few times I see consultants, clients and contractors together is in the BIM space – although there is still not enough participation across all levels and sectors of the industry – and the lack of collaboration across the industry is has been one of the hinderances to BIM uptake to date. By coincidence, at the same time as I was thinking and writing on this topic, I received an invitation to be part of one of the Collaborate ANZ working groups on Level of Detail – now while Level of Detail might be a BIM issue (read a good explanation at Practical BIM) – in the end, it comes down to the same things I’ve been talking about in this post – making sure that the right information is shared across the industry and across projects with the people who need it at the time they need it. Whilst Collaborate ANZ is BIM focussed, most of the people involved are passionate about improving collaboration and communication across the industry as a whole. If we can get people talking about collaboration on BIM, and if BIM becomes a standard tool across the industry and starts to cover things like client guidelines and specifications – hopefully this will start to solve some of the problems across the industry. If my client could give me a full BIM package – template and families – maybe I wouldn’t have to read through all the irrelevant wordy guidelines and maybe my BIM model could go to the contractor with all the information they needed, but nothing extraneous included – and that could be our documentation. No specifications, no design guidelines. (It still doesn’t solve the problem of requests for tender though does it?)

However maybe I am being too optimistic here? What do you think – how can we streamline the way we work and reduce unnecessary documentation? What are the strangest design guidelines or specification requirements you have seen? Or should things stay as they are – are these kinds of documents generating work for architects and designers?

Image Credits:
Creative Commons Attribution-Noncommercial-Share Alike 2.0 Generic License by MorBCN

Is your architecture or design client value for money?

Money by Philip Taylor PT, on FlickrLast week I started a discussion on how the client and their expectations impacts on the cost of design. Whilst there was some hope expressed on linkedin about this next post offering solutions…I’m not really sure I’ve got the answers. As I was originally writing this blog, I found that as I wrote I was moving more and more towards discussion of another contentious topic – competitive tendering. So today, while I continue pondering the impact of the client, this has segwayed into a consideration of the problems of competing tendering.

Often the project brief (or lack thereof) is the beginning of the problem. Whilst developing the brief can be part of the architect or interior designers scope, if it is teamed with unreasonable contract conditions or unreasonable interpretations by the client, significant additional work can be required. I have encountered contracts which expressly forbid the designer from claiming variations due to a prolonged program, limiting the number of meetings or site inspections or from an increased project value. This, to me is incredibly unfair on the part of the client. When the brief is little more than this – design a 5,000m2 fitout in a new building of 5 storeys to accommodate 400 staff in a mix of open plan and enclosed offices with support facilities. To me, the program and budget are key considerations in my scope, the scope is not just the final construction documents. Whilst it is true that the architect or interior designer could increase the construction cost due to design decisions, it is equally true that the client could increase construction costs and the amount of detailed design and documentation required due to their decisions on a higher level of acoustics or particularly extensive and complex joinery requirements as examples. I guess the decision has to be made at the fee proposal stage – do I take this risk of bidding on an very undefined scope and how do I (if possible) cost this into my structure. If the client then gets unreasonable in assessing variation claims, this is a recipe for cost overruns. In the end this kind of client should suffer with reduced quality for their project, but often they don’t, because we as designers still want to do a good job and keep the client happy. And our companies can often somehow think they will be able to make the money back on the next job, but in my experience its hard to make this work if you are dealing with clients who require competitive tendering on every job.

At the other end of the scale I have seen very detailed briefs, which (I thought) set out the clients full expectations of activities and deliverables. I responded to this detailed scope, pricing accordingly. We were even shortlisted for a tender interview. However, it turned out the client was interviewing all the tenderers (there were 3-5 selected tenderers) because there was such a large difference in the fee values (I think it was something like 200%) and they wanted to ask further questions of each party. I thought the interview went very well, but then we didn’t get the job. When we asked for a debrief, we were informed that we were offering a ‘blue ribbon’ service and that the client couldn’t afford this. So apparently the project had gone to someone with a much lesser level of services than they had put the tender out for, and a matching lower price. So much for fair tendering processes. If they didn’t want our ‘blue ribbon’ services, we should have been given the opportunity to price the same as the other company – or perhaps if they weren’t fixed on the services but on the outcome (eg the fitout) then they shouldn’t have specified all the detailed meetings, reports and the like in the tender. Very frustrating.

Although the tender process makes these things worse, even with more involvement with a potential client up front there is still no telling. Just like a job interview, it is a pretty brief time you spend with someone, where both parties are on their best behaviour. Later when things start to get even a little bit difficult or go wrong it could be a different story. Or it could be that the people change, or additional people get involved in the project. Having a user group that violently disagrees with the project manger/property person responsible for delivering the project can be a challenging process to work through for both the architect or interior designer and the client representative.

The most time consuming client I ever had, was one who used to pop into the office every single day for weeks at a time. She had decided to personally take charge of the colours and finishes. Whilst I wasn’t happy with that, the client organisation had agreed she would do this (I think that people thought it would reduce our workload! Little did they know…) If I told reception I wasn’t available she started to ask for the other project team members. She would then ask to come in and look at the samples library – but she wouldn’t just be doing this quietly on her own, the whole time she would be asking the opinion of whoever had let her into the office and they couldn’t get back to their own work. At the end of the project she sent back a removalist size carton of samples. We did actually end up charging the client extra fees, and thankfully in this case, the organisation was reasonable and recognised the additional work we had incurred due to the behavior of their staff member.

For me the problems is that these different client attitudes have costs attached and this time can also impact upon the project program. We have planned the project process based upon certain time periods, and its not always a simple matter of throwing extra resources against the project when the client requirements expand the time required. So how do we as an industry change this? We can’t always work for repeat clients that we know and understand, where we can somewhat predict their behaviours and expectations at the fee proposal stage. Particularly when it comes to competitive tendering we don’t have the opportunity to get to know the client. Or if we do know them, we might overprice the job or the opposite, we can win the job by offering a lesser level of service than the tender calls for. In my view, we as an industry need to take some responsibility for this. Architects and interior designers need to be less hesitant about defining scope and claiming variations. All architects and interior designers need to take responsibility for this, as often client attitudes are determined by the other architects/consultants they have worked with in the past. We need to educate our clients. But I also think that large client organisations, who purchase architectural and design services frequently also need to take responsibility. In particular, in Australia, government at all levels is a large user of architectural services, generally uses competitive tendering processes and frequently promotes one sided contracts. Clients need to understand their roles in the process and what has been allowed for in the fees. The staff involved need further support and education. Value for money does not mean cheapest. The conditions at tendering stage need to suit the actual project expectations. Client organisations need to judge project management success on more than just keeping consultant fees down.

If one of our largest clients (as an industry) treats architects and interior designers as not worth being treated as professionals with a high level of skills and value, what does that say about our profession? What is your experience – do you think competitive tendering offers the client the best outcomes? Do your clients understand that program or meeting attendance is part of the scope and can impact on your fees? What kinds of additional services have your clients expected without changes to your fees?

Image Credits:
Creative Commons Attribution 2.0 Generic License  by  Philip Taylor PT 

BIM-onomics: How will BIM change the business of design?

Money by Tax Credits, on FlickrDoes BIM cost your design practice more? How does BIM impact your fee proposals? How does BIM impact your business? These were some of the questions I was recently asked to address in a presentation at the Revit Technology Conference held in Auckland.

Partially as a result of my previous blog posts Architecture and Interior Design is a business, isn’t it? And The art (or is that science?) of architecture and interior design fees, I was invited to address the topic of the economic and financial impacts of BIM on a design consultancy – I think due to being among the relatively small group of industry professionals who understand both BIM and the business of design. I convinced another such individual Rodd Perey – committee member of RTC Australasia who had invited me to do this talk – as well as Principal and Group Design Technology Manager at Architectus, to join me in discussion of this topic.

One of the most interesting things about preparing the talk, was that whilst Rodd and I come from very different practice and BIM backgrounds, much of the time we agreed on the issues affecting a design practice who are using BIM by themselves and for their own benefit. We termed this Lone BIM – as opposed to the benefits of using BIM as part of a larger project process in conjunction with clients, sub-consultants and contractors. This Lone BIM, the efficiencies and impacts on practice, and its opportunities for reducing project risks, were the focus of our talk.

I have attached the slide deck to this blog via Slide Share.

BIM-onomics slidedeck from Ceilidh Higgins

As you will see from the slides, one of the repeated messages was that practice directors, principals and anyone costing or managing design projects need to firstly understand what BIM is actually being used and produced in their office and secondly what BIM outputs will be delivered to the client. How can you calculate your fees if you don’t understand your deliverables?

Right now in the industry and even within individual practices BIM can mean different things to different people. It’s important to understand which BIM deliverables and processes are additional services outside traditional services, and which ones can help you improve your efficiency in providing traditional services. To model every part if a building at 1:1 with full operational and facilities data will certainly cost you more than traditional documentation, but is that what the client has actually contracted you to deliver?

We felt that there were a number of key aspects to using Revit (or other BIM software) within your practice that improve your “BIM-onomics”. Aside from understanding what BIM you deliver, you need to leverage the information and automation aspects of the BIM – for example scheduling, keynoting and proper use of materials which allow consistency and automation across the project. Directors and principals need to have some understanding of these concepts so they can question the outputs. However its not all about BIM either – continuous improvement, ongoing training and debriefs are necessary to capture and spread the learnings across your organisation. This needs leadership.

Then we get to really the key thing – BIM impacts all areas of your business delivery model. BIM impacts upon your project workflows, your resources, your programs and your QA. Are these things you are just going to leave to drafters or modellers? You can’t leave your practice to the “revit robots” nor can you buy in the revit “A team” to solve your BIM implementation problems (though it will help). Economically successful BIM relies on the knowledge of your team, the mix of knowledge between software, design, construction and business. Everyone is part of the BIM team. The senior architects and managers may not be on the tools, but need to be able to speak a common language and communicate with someone who can understand both the BIM and the business. Someone needs to direct the BIM process to ensure that over modelling and over servicing is not occurring, a common reason for cost overruns on BIM projects. But one that is more typically related to management practices than the BIM software itself.

BIM will change your project programs. As Rodd pointed out though, that most overused of conference graphics the MacLeamy curve is wrong – what consultant in their right mind would sign up for a process that makes you do the same amount of work earlier in the process, when the client is still most unsure? Both of us agree, that whilst BIM does put some of the workload forward, it will be overall less work – and the project examples we used demonstrated this (the graphs come up later in the slide deck).

Your quality checking procedures also have to change – again this isn’t one for the junior revit modeller in your office is it? But it is another opportunity to leverage your information – you can use BIM to check your BIM. Examples shown include using auotmated drawings to check precast panel details and smoke/fire compartments. The more uses you can find within the BIM itself the more valuable the BIM becomes. The BIM becomes also a risk reduction tool – you get in right during design and spend less time on site, you think things through and solve problems in the design phase. But again senior and experienced project staff need to be part of this process – they need to know what is possible with the BIM, and then they should be asking for it in their own offices.

Both Rodd and I presented a set of comparison projects with an analysis of an AutoCAD project versus a Revit project. Unfortunately it is impossible to ever directly compare 2 projects as every design project has different factors, but we both selected the most similar projects we were able to find. In Rodd’s case, 2 hotel redevelopment projects on the same site for the same client, and in my case 2 office fitouts of a similar size for similar client types. As you can see on the slides Rodd and I examined slightly different project metrics based upon the information we had available. The one metric in common though was the percentage difference between the number of hours and the number of drawing sheets. We both proved the Revit project to be significantly more efficient based on this metric, and amazingly we came up with figures within 5% of each other!

A question from the audience worth repeating here, was how long had the teams been using Revit? For both Revit examples it was between 2-5 years, and it was certainly not a case of having a super BIM team and a crappy AutoCAD team – both myself and Rodd considered the teams also to be comparable. To get a good return on investment isn’t going to be an overnight process.

BIM is a process you need to manage the whole way through your projects – right from fee proposal stage. Its pretty straight forward really…define what you are providing, what others are providing (such as point clouds, parts of models/existing models, BIM standards) and understand what you are costing. If you as the person costing a job don’t understand all the technical aspects, talk to someone in your office who does. Build the understanding between the technical people and the business people – or find people who are able to do so and bridge the gap, becoming the translator and teaching at both ends of the equation.

In conclusion – does the BIM-onomics stack up? If you manage the process, manage the risk and are delivering the same it should cost you less.

Do your BIM-onomics stack up? Do you know by comparing projects? If your BIM is not yet economic, what are the challenges and issues you see as stopping it? If you are a practice director or principal do you know your BIM? If you don’t, do you have someone who can translate for you? Have we missed any factors you consider critical to the economic success of BIM in your practice? Do any of my slides not make sense to you? (if so comment)

You can find my other RTC presentations – What’s in a Room and InforMeDesign on Slideshare.

Image Credits:

. http://taxcredits.net/