Construction disputes: are extranets the answer?

A few weeks ago, I was interviewed by a journalist for a UK construction trade magazine about Multiplex’s problems at London’s Wembley Stadium. The key issue she wanted to explore was whether having an ‘extranet’ would have prevented the disputes between Multiplex, the client, Cleveland Bridge, etc. The short answer was, I’m afraid, no.

Like many construction industry people, I followed reports of court proceedings with interest and there was lots of talk about strategies being hatched via internal emails.

Some construction collaboration vendors provide email-like communication functionality within their platforms so that all such messages are captured, time- and date-stamped, and form part of the audit trail. However, using conventional email allows users to easily bypass the system (though there is a thriving market for solutions to manage and interrogate email archives).

Some construction collaboration systems do provide for a level of integration with email, but I believe users have to consciously link each email to the project (and the collaboration system used) in question. Internal email conversations relating to potential legal disputes would, I suspect, be highly unlikely to be "opted-in".

More fundamentally, the key issue is not about the technology. As I have said on numerous occasions, successful use of construction collaboration applications is only 20% about technology, it’s 80% people and processes. If the people involved are not committed to working in a collaborative way, then they will clearly only use the technology when it suits them (for exchanging files and managing routine processes); anything that might threaten their bargaining position will not be shared with other participants.

However, the Wembley project was/is perhaps an extreme example. There are certainly benefits to be gained from using a collaboration system.

First, simply knowing that a system is in place capable of delivering an audit trail of communications and system interactions can be a tremendous incentive to project team members to comply with their contractual obligations, meet their deadlines, etc – thus preventing disputes arising in the first place.

Second, should a potential dispute arise, the audit trail presents a clear view of what information was produced, for whom and when. This means team members can move beyond arguments about who did what and focus on resolving the dispute.

Third, the process of producing that audit trail is much faster and less expensive (no need to search through filing cabinets full of paper documents or to investigate the contents of different email systems); potential disputes can be resolved more quickly, before the costs involved lead the parties involved to adopt entrenched positions.

This final factor is often overlooked until a major dispute looms. For example, in the US recently there was a tragic incident in Boston where a section of tunnel lining fell down, crushing a car and killing one of its occupants. Apparently, there are 62 boxes of paper documents relating just to tests carried out on the fixings – using digital documentation would not prevent the tragedy, but it would dramatically simplify investigations into its causes (see Big Dig Tragedy Compounded by Lack of Digital Documentation).

Permanent link to this article: https://extranetevolution.com/2006/07/construction_di/

Clients increasingly require ‘Extranet expertise’: NCCTP research highlights benefits of using collaboration systems

The UK ‘project extranet’ vendors’ association, the Network of Construction Collaboration Technology Providers (NCCTP) has today published its market research report, Proving Collaboration Pays. The research was undertaken by an independent market research consultancy, Benchmark Research, and is – to the best of my knowledge – the biggest ‘extranet’ user survey ever undertaken, certainly as far as the architecture, engineering and construction (AEC) sector is concerned. Benchmark interviewed 272 people (from 195 different organisations), all users of the leading UK systems.

Mind you, I chaired the NCCTP market research steering group, and drafted the news release, so am probably more than a little bit biassed, but I think this is a significant report. The key findings are:

  1. Three-quarters of clients increasingly favour contractors with ‘extranet’ experience (a view supported by the non-clients in the survey)
  2. Average drawing review periods reduced by 26%
  3. Users claim greater control over projects undertaken using extranets
  4. The technology has significant traction – more than half of all users want to use extranets on most or all future projects
  5. It’s not about time and cost savings – control, communication and collaboration benefits are rated more highly
  6. Benefits rated as “substantial” include:
    • round-the-clock online availability of documents, drawings and other project data
    • holding all project data in a single central repository
    • reduced expenditure on couriers or post
    • less chance of losing important documents or drawings
    • improved audit trail

But judge for yourselves…. Here are links to the full "Proving Collaboration Pays" report and a PDF version of a PowerPoint presentation (both are also available for download from the NCCTP website). If you have any comments about the research, please let me know.

Permanent link to this article: https://extranetevolution.com/2006/07/clients_increas/

2012 Construction Commitments: Olympics projects should exploit collaboration technologies

Construction collaboration technologies should be exploited during the delivery of projects for the 2012 London Olympics Games, says an influential task group of the UK’s Strategic Forum for Construction in its 2012 Construction Commitments (available here; see also the press release).

I was recently appointed to the steering group of Constructing Excellence’s Building and Estates forum (BE), and attended my first meeting this morning. One of the topics discussed was the afore-mentioned recently published document from the Strategic Forum: The 2012 Construction Commitments.

The document, developed by the UK construction industry with the Government’s strong support, is intended to maximise the opportunity to showcase the best British construction practices, using the Olympics as a live example. The ‘Commitments’ cover six key areas of the construction process:

  • Client leadership
  • Procurement and integration
  • Design quality
  • Sustainability
  • Commitment to people
  • Health and safety

Much of the document is aspirational in tone, resembling in many respects the content of partnering charters used on many projects and framework agreements since the mid 1990s, so it remains to be seen how far organisations will feel able to adopt the ‘Commitments’ and what will be taken as evidence of their adoption.

However, given that the Strategic Forum was involved in producing the Accelerating Change report (September 2002), I was pleased to see some continuity from that document which advocated "using an integrated IT approach" (p.10). Under ‘design quality’, the final ‘Commitment’ endorses the use of collaborative technologies, saying:

"IT-based collaborative tools and communication technologies will be exploited."

The ‘Commitments’ are being signed by Mayor of London Ken Livingstone, Government ministers Tessa Jowell and Margaret Hodge, David Higgins (chief executive of the Olympics Delivery Authority) and Peter Rogers (chairman of Constructing Excellence and the 2012 Task Group), and the Task Group is inviting the chairman and chief executive of all organisations wanting to participate in the Olympics delivery programme to join them in signing up.

Permanent link to this article: https://extranetevolution.com/2006/07/2012_constructi/

Cadweb.net 7 released

According to its latest news release, UK extranet vendor Cadweb has, "after 2 years of research and development," announced the release of the latest version of Cadweb.net (version 7). Following a "major database and functionality rewrite", the solution is claimed to be more secure, more customisable and faster.

Things clearly move slowly in Cadweb. While other collaboration vendors/ASPs launch major new releases annually, with intermediate releases every few months, Cadweb.net 7 succeeds version 6, written in 2000. Planning and design for Cadweb 7 apparently started in 2004. Construction of the system was complete by last winter (in November 2005, Cadweb said version 7 would be released in January 2006 – see my post), but system testing and debugging clearly took far longer than forecast – with the new product subject to a six-month delay. However, the finished product is, Cadweb claims "on average, 4 times faster than the current version", and version 7 is expected to support developments through to the end of the decade, it seems.

What do Cadweb claim as their differentiators? First, "the new platform can now be dynamically adapted to suit all the changing information flow conditions that a project will undergo throughout it’s [sic] lifecycle." Second, to guarantee a file’s transfer across the internet, "Version 7 incorporated all the latest ‘network Intelligent’ Internet file transfer technology. This technology is similar to that used by the file sharing and music/film downloading sites such as Napster, Kazaa and BitTorrent." (I am not sure I would be reassured by repeated references to peer-to-peer technologies, particularly some which have been subject to legal challenges for copyright violation; moreover, is Cadweb’s users’ information being stored across multiple users’ hard-disk drives?).

The Cadweb boys certainly sound bullish about their new solution. On the file transfer guarantee, Cadweb’s head of projects and operations, Christopher de Carlo is quoted:

"we are setting the standard that clearly separates the wheat from the chaff. Cadweb.net version 7 shows that all project extranets are not the same. Just imagine! Having certainty that what you send is what is received. If you are using a system that cannot offer such a straight forward guarantee, you might as well save your money and continue using email.”

In a similar vein, Cadweb CEO Chris Newman says:

“We are confident that this is world beating technology, it knocks the spots off anything else I’ve seen out there.”

(Shame the news release is riddled with grammatical errors and spelling mistakes, eg: repeated misuse of "it’s" instead of the possessive "its"; "lightening" (fast as a cake ingredient, perhaps?) instead of "lightning", etc).

According to its website, Cadweb is currently being used on 186 projects.

Permanent link to this article: https://extranetevolution.com/2006/07/cadwebnet_7_rel/

Microsoft to go ‘on demand’ (2)

Reactions to news (eg: here and here) that Microsoft is to release its own customer relationship management (CRM) application as a Software-as-a-Service (SaaS) application range from positive welcomes to derision.

Microsoft’s Dynamics CRM product line will be transformed into a "Live" service when it ships next year. Rival SaaS CRM vendors aren’t worried (Marc Benioff apparently told Salesforce.com staff that the step simply vindicated the SaaS model, and his company’s share price continued to rise), but some analysts doubt that Microsoft will make the transition. Phil Wainewright is particularly scathing:

Microsoft Dynamics Live CRM doesn’t exist. It’s vaporware. This is a fud announcement of a plan to introduce a product this time next year ("in the second quarter of 2007") in the hope that it’ll persuade customers to postpone buying decisions. The ploy was often used by the likes of IBM, Oracle and others back in the 1990s to spread ‘fear, uncertainty and doubt’ (hence, FUD) among competitors. It worked when software applications used to take several years to develop and several more to deploy. What difference would a mere nine months make to anyone’s implementation timescales? But in the on-demand world, the strategy is as redundant as Microsoft’s far-from-Live CRM service. Anyone who’s already thinking about deploying on-demand CRM can have it up and running by the fall, six months ahead of Microsoft’s availability schedule — and that’s before you even start think about implementing the Microsoft application, which shows every sign of being every bit as laborious and time-consuming as it is with the current on-premises software.

His follow-up post, Microsoft CRM Live is a dud, is equally scornful.

Permanent link to this article: https://extranetevolution.com/2006/07/microsoft_to_go/

Aberdeen Group PLM collaboration report

I am sure construction collaboration technology providers can be encouraged by, among others, the experiences of product lifecycle management technology users. Research undertaken by the Aberdeen Group, reported in this AECnewsroom.com article, suggests several best practices – organizational structures, processes, and technologies – that differentiate best in class companies and deliver competitive advantage. According to the Aberdeen report (The Product Lifecycle Collaboration Benchmark Report, June 2006 – available for download here [registration required]), these include:

  • Collaborating externally. Top performers collaborate with customers and suppliers more frequently ….
  • Collaborating across the lifecycle. Top performers collaborate on more topics and more frequently ….
  • Developing a collaboration platform. ….
  • Measuring collaboration results. Leading performers are more likely to measure collaboration performance ….

Recommendations for action include:

  • Support and extend internal collaboration
  • Support and extend collaboration with external parties
  • Develop, extend and integrate standard collaborative process

Permanent link to this article: https://extranetevolution.com/2006/07/aberdeen_group_/

Collaborate to avoid disputes, says BuildOnline

According to a 5 July news item on BuildingTalk, "18 per cent of projects result in serious disputes, which can delay projects and destroy client/contractor relations."

This is apparently the conclusion of research from BuildOnline.

"Poor document management is to blame for creating major lags, with employees wasting over two hours per week searching for documents. 63 per cent of workers also have problems when sharing project plans or drawings with contractors, as they do not work from the most up-to-date versions. This results in major breakdowns in communications and – in many cases – legal proceedings."

Inevitably perhaps, BO believe this justifies greater use of online collaboration tools. Bob Godfrey, managing director, northern Europe BuildOnline says:

"Based on this research, it’s hardly surprising that so many projects are delayed and miss deadlines, such as the Wembley stadium project…. Until organisations embrace collaboration and provide a company culture in support of this, we will continue to see disputes, delays and disappointments."

I looked for further information about the research on BO’s website today, but there’s currently no sign of it (the only other reference I could find was on the website of BuildOnline’s PR consultant: Lewis PR). As a former researcher, freelance-journalist and PR consultant, I want to know more about who did the research, when and where, the methodology, sample, etc (what if a journalist wanted to know more about the research, Lewis?).

Update 17 July 2006: The story was reported by QS News (sister publication of Construction News), here.

Permanent link to this article: https://extranetevolution.com/2006/07/collaborate_to_/

Taywood profiled in CJ

The latest Contract Journal monthly profile of a well-known construction group looks at Taylor Woodrow Construction. The question about project collaboration tools reveals, unsurprisingly, that it tends to use 4Projects:

"The company was quick off the mark and one of the first to incorporate the use of project collaboration tools. In our experience, web-hosted extranets, such as www.4projects.com allow for rapid deployment of new projects and provide controlled collaboration with the partners and organisations we work with. A collaboration tool is used on all our projects. The divide is 95% using 4Projects, with the 5% balance being made up of projects for clients who must have a specific tool, or where we are in a niche area."

I say ‘unsurprisingly’ not because of the CJ relationship with 4Projects (CJCollaboration), but because of 4Projects’ history. I believe its solution was originally developed for Taylor Woodrow in the late 1990s, and both managing director Richard Vertigan and partnerships director Duncan Mactear had spells in Taywood’s employment (as stated on the 4projects website here).

Permanent link to this article: https://extranetevolution.com/2006/07/taywood_profile/

CAD drawings in your browser – no viewer

At AECnews.com, Randall Newton discusses a new experimental offering from Autodesk Labs (this is Autodesk’s own version of the ground-breaking Google Labs – the technology playground home of, among other things, web-based spreadsheets – see my post). Randall talks about Project Freewheel, which allows users to view DWF versions of CAD drawings in a web-browser without any special viewer application (similar to another product, AfterCAD InSite).

To view and mark-up DWFs and other file formats, most current construction collaboration technology (aka ‘extranet’) platforms tend to rely on third-party plug-in viewers (eg: Cimmetry’s Autovue, Informative Graphics’ Brava! – BIW is the only collaboration vendor to develop its own integrated viewer), but these would become at least partially redundant if DWFs could be delivered direct to the browser.

However, according to Randall, the DWFs would need to be on an open website with a public URL (not something that many project team members would be happy to allow):

Freewheel cannot currently view DWF files which are behind a firewall, are on a private network, are password secured, or are otherwise secured. The service works by downloading a specified DWF (by URL) from the source web server to an Autodesk server, which renders the content and delivers the result to a user’s web browser. Autodesk says the Freewheel server may analyze, process, report on, and cache the DWF data provided to it.

HTML source code is available at the Freewheel site that allows viewing of DWF files on any open website. “To allow people to view your DWF file inside your own web page,” says the documentation, “you first need to make your DWF file available publicly on the Internet (it must have a public URL so that the Autodesk server can retrieve the DWF file and render it).”

Permanent link to this article: https://extranetevolution.com/2006/07/cad_drawings_in/

Business Collaborator parent company to demerge

According to a London Stock Exchange announcement this morning, CodaSciSys, the parent company of Business Collaborator is proposing to demerge. The company’s CODA and Business Collaborator divisions, together with other related trading entities, will become part of a separate group under a holding company, CODA plc, which will be separately listed on AIM. If all goes to plan, the move should be completed later this summer.

Hopefully, this move will make it easier for us to keep track of BC’s financial performance. Since its acquisition by CodaSciSys in 2003, BC’s figures have been combined with the SciSys commercial unit, so the full health (or otherwise) of the collaboration business has been difficult to ascertain.

Various Stock Exchange announcements and trading updates have also underlined BC’s successful involvement in the Suppliers Ethical Data Exchange (SEDEX) programme. This apparently (p.8 of the latest CodaSciSys annual report, year ending 31 December 2005) contributed "to a considerable turnaround in the fortunes of the Division, reporting profits (before goodwill amortisation) of £0.3m against a loss of £0.4m last year (operating profit £nil (2004: loss £1.8m))." It is unclear just how great a contribution comes from the SEDEX initiative, but it is almost ignored in BC’s 2005 operational review (pp.18-19), which mainly focuses on the AEC sector (with case studies on Primark and Thames Water).

The annual report shows the combined division turned over £2.9 million last year (£2.489m in 2004), returning a pre-tax profit of £0.23m (2004: loss of £1.617m).

Permanent link to this article: https://extranetevolution.com/2006/07/business_collab-2/

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