Friday, April 14, 2017

Blockchain Explained




While Bitcoin oriented the video below is a nice succinct description of the blockchain. Personally, I'm leaning towards Dash, a third generation distributor of digital cash on the blockchain, but this video provides a very interesting peek over the horizon.

 

Smart contracts are coming!

Welcome to the Golden Rule Alliance

James L. Salmon, Esq.
Collaborative Construction
300 Pike Street
Cincinnati, Ohio 45202
Summary of Services and James L. Salmon's CV


Office 513-721-5672
Fax 513-562-4388
Cell 512-630-4446
JamesLSalmon@gmailcom












Integrated Project Insurance v Integrated Project Delivery




How does integrated project insurance differ from integrated project delivery?

Posed twice in the last week, I tackled that question via email correspondence with colleagues in the UK and in Canada. A modified version of those two email responses follows.

How does Integrated Project Insurance differ from Integrated Project Delivery?

Integrated project insurance (IPI) protects integrated project delivery (IPD) teams from risks related to catastrophic natural disasters or project related accidents. Integrated Project Delivery, by contrast, is a project centric method for procuring design and construction services from a integrated team that includes designers and constructors. Accordingly, IPI is a risk mitigation tool and IPD is a delivery model mounted on a new - and purportedly improved - legal framework. In the US that legal framework is provided by customized contracts, referred to elsewhere as bespoke contracts, or form integrated agreements offered by ConsensusDocs or the AIA. In the UK and the broader European market purportedly standard collaborative or integrated agreements are offered by multiple entities including the Chartered Institute of Building (CIOB) the Joint Contracts Tribunal (JCT) the Association of Consulting Architects (ACA) the New Engineering Contracts (NEC) and the International Federation of Consulting Engineers (FIDIC). All of these entities, in the US and Europe, offer collaborative agreements that integrated teams tasked with delivering in an IPD environment can utilize as a starting point for a customized agreement. However, none of these instruments can be pulled off the shelf and signed as is. The same is true of insurance products available to integrated teams.

The bottom line is that the legal framework required to support IPI and IPD must be customized to fit the needs of the project and the integrated team delivering the project. Care must be taken in selecting and customizing the insurance products used to protect the project and the team and IPI is the tool / process for doing so. Similar care must be taken to select and customize the legal agreement that details the rights and obligations of the integrated team and a good IPD process engages all key stakeholders in the negotiation of that agreement.

How does Integrated Project Insurance differ from an Owner Controlled Insurance Program or a Contractor Controlled Insurance Program?

After the UK government mandated the use of Building Information Models (BIM) on all projects beginning in 2016, insurers in the UK construction market began exploring alternative methods for insuring those projects. Integrated Project Insurance (IPI) appears to be a response to that mandate. In the US market Owner Controlled Insurance Programs (OCIPs) or Contractor Controlled Insurance Programs (CCIPs) are often used to obtain and administer project insurance on large private commercial projects.

An OCIP is construction wrap-up insurance program whereby the owner procures insurance, freeing constructors on the project from that burden purchasing separate insurance coverage. Wrap-up programs often incorporate safety programs to prevent accidents and injuries, thereby lowering the risk of claims. General liability and workers' compensation coverage are two forms of insurance offered to all enrolled contractors and subcontractors under an OCIP program. Sometimes umbrella coverage for claims in excess of other policy limits may be available as well. In most instances contractors remain responsible liability insurance on equipment and autos.

The goal of an OCIP is to lower costs and increase protection by enabling the owner to control the insurance program and claims process. Project owner can avoid lapses in coverage or inadequate insurance coverage resulting from individual contractors' and subcontractors' purchasing inadequate or improper insurance. Typically, a single insurance carrier processes all claims, increasing efficiency.

A CCIP is another form of wrap-up coverage but here the general contractor sponsors the insurance program. As the sponsor the general contractor secures insurance coverage for the project, pays the premiums and administers the program. In many jurisdictions use of a CCIP is barred on projects contracted by a public entity. 

Properly procured and administered, wrap-up policies save time and money by increasing the efficiency of the insurance program on large construction projects. However, gaps in insurance, sufficiency of limits and other issues must be carefully considered. 

What is a Collaboratively Controlled Insurance Program?

At Collaborative Construction we advocate the use of Collaboratively Controlled Insurance Programs which blend the benefits of traditional OCIPs and CCIPs and, importantly, provide coverage for design professionals and the IT teams required to administrate BIM on modern projects. Traditional wrap-up insurance programs typically exclude coverage for designers and until the advent of BIM, insurance related to digital disruption was largely ignored in construction. A Collaboratively Controlled Insurance Program tackles the entire scope of the risk and covers key stakeholders and project assets on an as needed basis from inception through completion and beyond. An effective Collaboratively Controlled Insurance Program ought to include coverage for Automobiles, Workers Comp, Liability, Professional Malpractice - aka Errors and Omissions - a variety of IT related insurance products, Construction Risk, Property & Casualty Insurance and others. The cost of administration should be shared on a pro rata basis. 

The image below highlights the integrated nature of the risks against which an integrated team must be protected.


Very few insurance companies or insurance agencies in the world recognize the value of this emerging market, but a few are beginning to pay attention. The scope and nature of their involvement is the topic for another day. The bottom line for IPD teams is that the legal framework that supports your project must be carefully crafted and the legal agreements and insurance products you negotiate are both critical portions of that legal framework. 

An Extended View of IPD 

At Collaborative Construction we actually take an extend view of IPD and advocate its use from the planning phase through to the end of the useful life of the facility and any accompanying infrastructure. 

Below is an excerpt, from a copyrighted presentation, that details how broadly Collaborative Construction views (IPD)X



Thoughts on Dispute Resolution

The first generation of legal agreements intended to support IPD were far too project centric and always required modification. With respect to the waiver of claims and the pursuit of claims Collaborative Construction typically encourages the parties to waive certain claims and agree to certain caps / limits on damages. More importantly, however, Collaborative Construction clients agree IN ADVANCE on the mediator / arbitrator and they pick someone they all know and respect. And that persons is paid a modest retainer to be on call to mediate any disputes the parties fail to resolve themselves. And if mediation fails the mediator becomes the chair of a three person arbitration panel, with one additional arbitrator picked by each aggrieved party. 

Conclusion

The forgoing summarizes the differences between Integrated Project Insurance, Integrated Project Delivery and Collaborative Construction's broader approach to IPD. 

If you or anyone in your organization has any questions about implementing IPI, IPD or the broader version of (IPD)X do not hesitate to call.


Welcome to the Golden Rule Alliance

James L. Salmon, Esq.
Collaborative Construction
300 Pike Street
Cincinnati, Ohio 45202
Summary of Services and James L. Salmon's CV


Office 513-721-5672
Fax 513-562-4388
Cell 512-630-4446
JamesLSalmon@gmailcom












Monday, April 10, 2017

An Exercise in Creation




Reddit hosted a very interesting exercise in creation on April 1, 2017. The link below explains the exercise in detail. Fascinating.


The exercise reminds one of the cathartic nature of destruction and the amazing value of creators and their protectors. As the built industry struggles to find a path forward in the emerging knowledge economy the Reddit experiment may prove valuable.


Welcome to the Golden Rule Alliance

James L. Salmon, Esq.
Collaborative Construction
300 Pike Street
Cincinnati, Ohio 45202
Summary of Services and James L. Salmon's CV


Office 513-721-5672
Fax 513-562-4388
Cell 512-630-4446
JamesLSalmon@gmailcom












Wednesday, April 5, 2017

Smart Cultures Value Trust




Smart Cultures Value Trust
Success lies downstream in trust based cultures. Such cultures breed success while contempt and failure flourish in mistrustful cultures. Elite fighting forces, championship sports teams and successful project teams operate in cultures that value trust and in which individuals often sacrifice to protect others. Teams operating in smart cultures that value trust overcome challenges more easily and deliver better results than mistrustful teams. As a precious commodity in commerce trust drives success where other resources fail. So what happens when trust is broken?
Contact James L. Salmon to learn more.

Welcome to the Golden Rule Alliance

James L. Salmon, Esq.
Collaborative Construction
300 Pike Street
Cincinnati, Ohio 45202
Summary of Services and James L. Salmon's CV


Office 513-721-5672
Fax 513-562-4388
Cell 512-630-4446
JamesLSalmon@gmailcom












Wednesday, March 29, 2017

Smart Built Culture Event in Orlando



As Collaborative Construction launches Smart Built Cultures we invite you to participate!


Smart built cultures save time, money, lives and careers! Do you believe that an effective enterprise values time and money and the lives and careers of its employees? Does your company value time and money? Is your enterprise committed to safety? What does your enterprise do to demonstrate it values the careers of its employees? If you answered yes to any of these questions you need to sign up and attend!

As the global economy transitions from an industrial economy to a knowledge economy traditional business models fail and new business models emerge. What business model does your enterprise deploy? What is your company's strategy for competing in the knowledge economy? What digital disruptions rocked your industry in the past decade? In the past year? Last month? Last week!

Again, if you cannot answer these questions sign up!

If your enterprise needs help building a smart culture that enables it to compete in the emerging knowledge economy sign up. If your department needs to understand the implications of the knowledge economy schedule to attend today. If safety deserves more attention in your company come to Orlando. If your career is at risk attend!

We look forward to seeing you there!

Welcome to the Golden Rule Alliance

James L. Salmon, Esq.
Collaborative Construction
300 Pike Street
Cincinnati, Ohio 45202
Summary of Services and James L. Salmon's CV


Office 513-721-5672
Fax 513-562-4388
Cell 512-630-4446
JamesLSalmon@gmailcom












Tuesday, March 7, 2017

Analyzing the Impact of Projects on People Profits and the Planet





Lachmi Khemlani, founder and editor of AECbytes, wrote an nice review of a new software program called Autocase which creates a detailed report on the so-called triple bottom line (TBL) of a project from a cost benefit analysis perspective. The article, Autocase: Cost-Benefit Analysis of Sustainable Design, summarizing the benefits of the new program.

TBL refers to the financial, social and economic impact of a project. I often refer to TBL as the 3 Ps, people, profits and planet. As Lachmi points out in the article more and more owners are demanding more detailed analysis of the TBL prior to greenlighting projects and this new software tool appears to enable such analysis.

The current version focuses on sustainability issues and is tied tightly to the USGBC's LEED certification process but one can imagine a modified version of the software that provides three separate reports that focus on people, profits and the planet. Arming decision makers with in depth analysis early compliments the integrated project delivery model well. A report that satisfies the owner, the lender and the environmental regulators / public code enforcement officials all at once makes a lot of sense. Here at Collaborative Construction we will keep a close eye on Autocase.

Welcome to the Golden Rule Alliance

James L. Salmon, Esq.
Collaborative Construction
300 Pike Street
Cincinnati, Ohio 45202
Summary of Services and James L. Salmon's CV


Office 513-721-5672
Fax 513-562-4388
Cell 512-630-4446
JamesLSalmon@gmailcom












Tuesday, February 28, 2017

Creating and Sustaining Innovation




Innovation in business revolves around creation of value. Exercises that fail to add value to an enterprise rarely qualify as innovation. In construction much of what passes for "innovation" involves nibbling at the edges of existing problems. To innovate in construction requires that we tear the broken waste based system out by the roots and replace it with a retooled system. Our broken built environment rewards fragmentation, adversarial resolution of differences and mistrust. A retooled value add system rewards integration, collaboration and builds trust. Creating such a Smart Built Culture requires that the industry innovate. Discarding the Backwards Bike the industry uses to procure planning, design and construction services is a good first step. 

Once a construction related enterprise discards the Backwards Bike and embraces a Smart Built Culture innovation must become second nature and a great way to create and sustain a culture of innovation is to launch an in-house Innovation Center. The concept, described by Andrew Abernathy in the linked article, provide companies interested in innovation with a road map. 

Innovation rarely rears its head in construction as evidenced by the absence of construction firms from the list of THE MOST INNOVATIVE COMPANIES 2016 published by the Boston Consulting Group. Let's change that!


Welcome to the Golden Rule Alliance

James L. Salmon, Esq.
Collaborative Construction
300 Pike Street
Cincinnati, Ohio 45202
Summary of Services and James L. Salmon's CV


Office 513-721-5672
Fax 513-562-4388
Cell 512-630-4446
JamesLSalmon@gmailcom












Friday, February 10, 2017

Sustainability in Multifamily Housing




What can the built industry do to encourage sustainability in multifamily housing complexes in the Cincinnati area?

Join us next Friday, February 17, 2017 as Collaborative Construction and Benjamin Yocum & Heather joined forces with BrainBox and others to discuss Managing Sustainability in Multifamily Units in Cincinnati. 

Breakfast, networking opportunities and lunch provided!

The event runs from 8:30 a.m. to 3:00 p.m. and includes a keynote presentation by Mark Fisher from the Cincinnati Zoo, several additional presentations and a panel discussion on Green Building and Financial Incentives. 



Welcome to the Golden Rule Alliance

James L. Salmon, Esq.
Collaborative Construction
300 Pike Street
Cincinnati, Ohio 45202
Summary of Services and James L. Salmon's CV


Office 513-721-5672
Fax 513-562-4388
Cell 512-630-4446
JamesLSalmon@gmailcom












AIA Digital Documents




I wrote the summary of the AIA Digital Documents below a few years back but it responds well to recent questions I received regarding digital protocols generally. These AIA instruments provide a good starting place for understanding the legal landscape in construction from a digital perspective. 

Another indispensable instrument, the ConsensusDocs 2015 BIM Addendum, deserves close consideration by any team seeking to develop a practical BIM Protocol. Look for a series of blogposts in the near future delving into the nuts and bolts of that instrument.

When the AIA updates its digital suite of documents Collaborative Construction will review those new instruments.

AIA Digital Documents Summary

James L. Salmon, Esq.
October, 2013

In June of 2013 the American Institute of Architects (AIA) released new contract addendums related to the use of building information management (BIM) technology on projects.  In response to ConsensusDocs aggressive updating of its form contracts AIA appears to have accelerated its traditional 10 year update cycle relative to its contract forms.  The update includes four instruments for use on BIM oriented projects:

  • C106™–2013, Digital Data Licensing Agreement
  • E203™–2013, Building Information Modeling and Digital Data Exhibit
  • G201™–2013, Project Digital Data Protocol Form
  • G202™–2013, Project Building Information Modeling Protocol Form

These BIM oriented instruments impose new and substantial contract requirements on all project participants.

The C106™–2013, the Digital Data Licensing Agreement provides that data transmitted from one party to another includes the grant of a limited license to the receiving party to use that data in connection with its work on the project.  The instrument further requires the transmitter to warrant that he enjoys ownership or copyright permissions sufficient to share the data.

These instruments purport to provide a collaborative framework within which project participants deploy digital data protocols.  Central to the framework, the E203™–2013, the Building Information Modeling and Digital Data Exhibit, attaches to the contracts of all project participants.  The E203 facilitates early establishment of principles relative to the use of digital data on the project.  The principles addressed include:

  • Contractual adherence to common digital data and BIM protocols;
  • Establishment of limited licenses, warranties, and proper use of digital data, and BIM models;
  • Identification relevant digital data and decisions regarding centralized management systems;
  • BIM use on the project; and
  • Adoption of a BIM Execution Plan “as soon as practical following execution of the agreement” through the use of forms G201™–2013, Project Digital Data Protocol Form and G202™–2013, Project Building Information Modeling Protocol Form.

Rights and remedies created include third-party beneficiary status of all project participants enabling each to enforce the incorporation obligation as to other project participants if damaged by a breach.  §§ 1.2, 1.2.1.  The instrument waives the right to make a claim for additional time or costs due to the use of protocols unless notice is given within 30 days of receipt of the protocols.  §§ 1.3.1, 1.3.3.  Additionally, unauthorized use of digital data or BIM Model triggers liability.  §§ 3.4, 4.7.

After laying a collaborative framework via the E203, the parties collaborate to further refine the BIM rules.  The G201 addresses specification of specific digital data management protocols for all project participants, including:

  • Electronic data management system usage
  • System requirements
  • Storage requirements
  • Archiving standards
  • Formats for transmitting specific types of information

While not expressly attached to every contract, the G201 supplements the E203.
The G202™–2013, Project Building Information Modeling Protocol Form sets forth the projects BIM rules in finer detail. The G202 serves three primary functions:

1.  Standardize hardware, software, inputs, and management of the model;
2.  Establish the “level of development” (LOD) descriptions for the model in the form of minimum contents requirements for stated phases of the project; and
3.  Address issues related to reliance on the BIM via the Level of Development concept.

The G202 utilizes LOD descriptions to inform users of the extent to which they can rely on a BIM .  Any further reliance, therefore, would be at that participant’s sole risk and expense.  The G202 further requires users of models to notify the model manager of mistakes in models.

BIM and the technologies surrounding it evolve rapidly. These instruments support the effective use and deployment of BIM oriented technologies. Utilizing this new collaborative set of instruments with existing contracts remains a challenge. Anyone involved in a BIM or IPD oriented project should contact James L. Salmon with any questions. 

Welcome to the Golden Rule Alliance

James L. Salmon, Esq.
Collaborative Construction
300 Pike Street
Cincinnati, Ohio 45202
Summary of Services and James L. Salmon's CV


Office 513-721-5672
Fax 513-562-4388
Cell 512-630-4446
JamesLSalmon@gmailcom












Friday, February 3, 2017

Uber Freight Destroys Jobs?



For 200,000 years humans struggled to gather and store enough food and fuel to get through the winter. A rudimentary barter economy emerged among these hunter gathers, but the focus remained on gathering and storing food. Then about 10,000 years ago humans began growing food and a more robust agricultural economy emerged, bolstered by advances in transportation and innovation - think ships and the wheel - freeing artisans and academics to pursue other interests. All those people - 90% of the worlds population - were involved in the production of food and focused on agriculture or related tasks.

About 300 years ago the industrial revolution geared up and by 1950 90% of the world's population was involved in the production of THINGS rather than the production of FOOD. 

In 1950 the electronic information age launched and in 1991 Al Gore invented the internet.  Fast forward to the emergence of truly useful robots, software as a service and the internet of things. By 2050 90% of the world's population will be involved in the creation and manipulation of information and ideas. In that knowledge economy human labor will be redirected and entire new business models and classes of jobs will emerge. Today, drone operators are being trained and anybody that can fly a Bat Bot to collect critical data is likely to be in high demand.

Unfortunately, many existing jobs / sectors of the economy will be violently disrupted by the seismic changes in the economy. 

Very interesting article linked below.


The logistics involved in getting groceries on the shelf and construction materials on site cry out for these kinds of solutions. I've thought about using an Amazon Prime Account for delivery of materials to specific construction  projects and even hiring Uber drivers to make deliveries to the site. This is the logical next step.

All of this, of course, would be further impacted by smart contracts and the tracking of the data via blockchain technology and the payment for services via a cryptocurrency.

Interesting times. 


Welcome to the Golden Rule Alliance

James L. Salmon, Esq.
Collaborative Construction
300 Pike Street
Cincinnati, Ohio 45202
Summary of Services and James L. Salmon's CV


Office 513-721-5672
Fax 513-562-4388
Cell 512-630-4446
JamesLSalmon@gmailcom












Will Bat Bots Revolutionize Construction?




The article and video linked below are fascinating. Imagine the data gathered via a Bat Bot flight over, around and through a complex construction site? I'm imagining the value to lean process advocates interested in studying ways to achieve continuous improvement in construction. 

And as an added bonus, the Bat Bot's skeleton? Printed in 3D and made of light weight carbon fiber and plastic. Click here to read the whole article.

  

Welcome to the Golden Rule Alliance

James L. Salmon, Esq.
Collaborative Construction
300 Pike Street
Cincinnati, Ohio 45202
Summary of Services and James L. Salmon's CV


Office 513-721-5672
Fax 513-562-4388
Cell 512-630-4446
JamesLSalmon@gmailcom