Architectural Management

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title: Architectural Management

author: Nicholson, M. P.
publisher: Taylor & Francis Routledge
isbn10 | asin:
print isbn13: 9780203298497
ebook isbn13: 9780203223376
language: English
subject Architectural practice--United States--Management,
Architecture--Management
publication date: 2003
lcc: NA1996.A729 2003eb
ddc: 720/.68
subject: Architectural practice--United States--Management,
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Architectural Management
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cover next page >
Cover
title: Architectural Management

author: Nicholson, M. P.
publisher: Taylor & Francis Routledge
isbn10 | asin:
print isbn13: 9780203298497
ebook isbn13: 9780203223376
language: English
subject Architectural practice--United States--Management,
publication date: 2003
lcc: NA1996.A729 2003eb
ddc: 720/.68
subject: Architectural practice--United States--Management,
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Page ii
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Architectural Management
M.P.Nicholson
Director of Architectural Management
University of Nottingham
London · New York · Tokyo · Melbourne · Madras
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Page iv
Published by
E & FN Spon, an imprint of Chapman & Hall, 2–6 Boundary Row,
London SE1 8HN
Chapman & Hall, 2–6 Boundary Row, London SE1 8HN, UK
Van Nostrand Reinhold Inc., 115 5th Avenue, New York NY10003,
USA
Chapman & Hall Japan, Thomson Publishing Japan, Hirakawacho
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Japan
Chapman & Hall Australia, Thomas Nelson Australia, 102 Dodds
Street, South Melbourne, Victoria 3205, Australia
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Madras 600 035, India
First edition 1992
This edition published in the Taylor & Francis e-Library, 2003.
© 1992 M.P.Nicholson
ISBN 0-203-22337-3 Master e-book ISBN
ISBN 0-203-29849-7 (OEB Format)
ISBN 0 419 17780 9 (Print Edition) 0 442 31598 8 (Print Edition) (USA)
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Page v
This book is dedicated to
All those brave young men and women
who survived an
Insight into Architectural Management
course and still wanted more.
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Page vii
Contents
Chapter One Architectural Management and Practice 1
Architects in a changing environment 2
M.P.Nicholson and W.B.Jepson
Data on the managerial tasks and needs of architects 8
R.E.Finnigan, R.F.De La Mare and S.H.Wearne
Communication and clarification between designer and client: good practice and 22
legal obligation
A.P.Lavers
Learning from Detroit: architecture, mass production and the car re-visited 29
A.Clelford
Chapter Two Design Management 39
The price of the independent design 40
A.G.Doree
Planning and estimating design work—a review of British practice 55
D.J.Blackwood, S.Sarkar and A.D.F.Price
The management of building flexibility in the design process: a design decision 65
support model for optimisation of building flexibility in relation to life-cycle costs
M.Prins
Planning building design work 77
E.J.Coles
The management of the design process 84
B.Sawczuk
Managing the construction process through a framework of decisions 90
M.Loosemore
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Page viii
Constructability evaluation during detailed design phase 104
S.Alkass, G.Jergeas and A.Tyler
A total cost performance index for buildings 118
M.J.Packham
Chapter Three Project Management 133
Construction contracts and risk 134
R.F.Gibson
Constructability and the conceptual design 145
K.Th.Veenvliet and H.G.Wind
Design and build—The role of a project manager 160
M.A.Cairney
Chapter Four Facilities Management 169
Specification writing for preservation and maintenance works 170
D.Bosta and A.Ciribini
Building pathology and maintenance management: methodology and tools 179
M.Moroni
Post occupancy evaluation method for effective management of office facilities 190
H.Nakagita
Optimising premises performance through pro-active premises management 198
B.J.Varcoe
Chapter Five Value Engineering and Quality 209
Development of models and methods for the management of the building 211
process and design
R.Vinci
Value management enhances professional development 220
J.E.S.Dale
Value management—Its relevance to managing construction projects 235
M.F.Dallas
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Modern value engineering for design and construction 247
H.Ellegant
Value engineering during design: new directions in research 256
S.D.Green
Value management from a global perspective 268
W.F.Lenzer
Chapter Six Computing in Architecture 281
Data transfer—Designs on the move 282
C.R.Coleman
Taking control of I.T. 297
M.Leith
CAD Utilization and issue at NTT—Data coordination 306
T.Nishimura
Coding for computerisation of building maintenance data 314
A.Spedding
Chapter Seven Education 323
Development of a distance learning MSc in construction management 324
R.F.Fellows and T.D.Bilham
Education in the role of management 336
G.M.Cairns
Open learning as a contribution to continuing professional development in 341
British architectural practice
M.Hatchett
Chapter Eight Human Resources 349
Managing change within the professional firm 350
P.Barrett
The impact of cyclical trends on human resource requirements 362
J.Sommerville
Interdependent group activity in architectural management 370
R.A.Fraser
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Chapter Nine And To The Future … 379
Future organization of the building process 380
I.R.Wim Bakens
Index of Authors 383
Index of Keywords 384
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Page 1
CHAPTER ONE
‘Running a business calls for all characteristics we admire in our folklore heroes, and yet it never
occurs to us that they are to be found in the leaders of our small companies. Courage and
compassion, vision and imagination, determination, persistence against adversity, creativity and
wisdom are all called upon. Yet we persist in thinking of this occupation, which still employs one in
five of our working population, as being dull, bureaucratic and for lesser mortals.’
John Harvey-Jones

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Architects in a changing environment
M.Paul Nicholson
Visiting Professor, University of Bio Bio, Chile
Professor W.B.Jepson
Emeritus Professor, University of Aston, UK
Abstract
The profession of Architecture and the services which its provides have gone full circle. The early
close relationship with the building process was curtailed for about one hundred years. It has only
been during the last decade that designers and builders have been allowed (by lifting their self-
imposed constraints) to come closer together. This has encouraged the Design and Build contracts
and the Management Fee contract procedures to flourish and come into common use.
Keywords: Architectural Management, Professional Development, Architect’s Appointment.
During the past 250 years the nature of demand for the products of the building industry has
changed dramatically, and that for architectural services has come almost full circle. It has come
from the master builder informed in the classical styles of architecture, or some dialect of them, to
that of the master builder capable of delivering a building at a price whose performance equates with
a user-need (which may be commercial, industrial, monumental or domestic).
The industrial revolution expanded the building market. It introduced new clients—developers,
industrialists, the investors in docks, harbours and railways, public corporations and many more. At
first the work called only for the traditional craft skills with which architects were familiar, but as new
techniques and materials came into use and called for engineering design skills in order to fit them
for construction, new professional associates entered the field.
Occupations which were formerly the province of the upper streams of society began to expand to
meet burgeoning opportunity. Professional institutions and new centres of learning expanded the
scope for those with, ability to serve society. Architects faced a situation in which the demand-led
expansion created scope for exploitation by unscrupulous developers and builders. In an attempt to
maintain their image as a profession they debated whether to retain in their number the measurers,
developers, contractors and others, some of whom also offered design services (see Architectural
Magazine, Vol.1 1834). They decided on exclusion. The role of the architect as the independent,
educated, gentleman designer became the model of the 19th century. It eschewed speculation and
fee competition, and claimed the independent status permitting action as an impartial arbitor
between client and contractor.

Page 3
There were consequences. Associated professions, which also had concern for status, identified their
own professional role and the standards to fulfil. Their expertise developed in isolation. Its
exploitation was their justification as a practice. The pace and pressure of technology, spurred by
concern for economy, exacerbated the process of fragmentation. Undergraduate studies were later to
reflect the patterns of professionalism.
It was Philibert De l’Orme in the 16th century who felt that during his time the profession of
architecture was becoming more specialised, that it was more clearly defining its responsibilities and
privileges (A. Blunt). It is interesting that De l’Orme criticised the patrons of his time for choosing
master masons and carpenters and even painters to design their buildings, rather than architects.
It took such people as Paladio, Michelangelo and Bramante to create awareness of the distinction
between designers and craftsmen/ constructors so that, by the end of the 16th century, Alberti was
able to write ‘‘the craftsman is merely an instrument of the architect.” (Campbell).
No clear pattern had emerged by the 18th century. In 1747 Campbell wrote of architects as either
agreeing with the client to build for a fixed price, or to be paid for supervising tradesmen who were
to be selected by the architect. In both cases, the architect (who may have been a master
tradesman) was responsible for the employment and dismissal of the workforce.
It seems that during the 19th century also, the role and definition of an architect was undefined.
Many architects acted as developers and designed, constructed and financed vast areas of new
housing in the industrial cities. Men such as Cubitt (1785–1861) in London, and Watson Fothergill
(1844–1928) in Nottingham, proved that the architect could retain his stature as a designer whilst
involving himself in the business of construction. Many fine examples of their work exist to this day.
Being at the sharp end of the construction process must have allowed the contemporary 19th century
architect to observe at first hand the activities of the construction operatives. They would have seen
the individual craft lodges develop into united single-trade unions, and in 1831 or 1832 (Place MSS)
the formation of a General Union (Houldsworth). The formation of The Builders’ Society in 1834 must
have further isolated the architects from the rest of the construction industry, and in 1835 the RIBA
was founded.
Whilst the early builders’ associations were essentially ‘reactive’ institutions which were formed in
hurried response to crises in industrial relations, the RIBA appears from the outset to have had
crusading motivations. It imposed constraints on the professional standing of the Institute.
Restrictions from practicing all activities outside the confines of the design and supervision of that
design were imposed. No more the Master Builder; no more the Developer; no longer a natural
involvement in the construction process. In short, architects isolated the design function from the
very products of their own efforts—buildings.
The early RIBA addressed itself to the full comforts of protectionism. A mandatory fee system was
imposed on the members. The numbers of young men and women entering the profession were

Page 4
monitored and controlled through the Institute’s entry procedures. Codes of conduct of the members
and conditions of engagement were cheerfully accepted by the architectural fraternity. The architect’s
unique position within standard building contracts was established, which allowed him to be an agent
of the employer whilst at the same time he could be the arbitrator of disputes between the
contractor and the employer.
The pattern was set for architects to devote their energies to the production of fine architecture.
Work was plentiful, particularly between the wars. All of this amounted to a situation where British
architects did not have to concern themselves with commercial matters, with finance, organisation
and management. Their profits were assured and their future appeared healthy.
There was an error in the reasoning. In the 20th century the centres of largely labour-intensive
industry extended to accommodate a larger and more mobile population. The distribution of electicity
and the availability of the motor car gave flexibility for the development of land which had, hitherto,
not commended itself. The road network grew and did not suffer the limitations of the rail systems
and canals that preceded it as the principal arteries. Again, the architect allowed other parts of the
industry to exploit the opportunity, and the acres of semi-detached houses, the council house estates
and much industrial and commercial development proceeded without their influence.
Ribbon development, the control of which abuse led to the creation of housing estates, was the only
planning constraint on the random development of urban facilities to accommodate the new
communities. The product has been much criticised. At the end of the Second World War the need
was expressed to introduce a system of town planning. In the event the nature of the legislation was
bureaucratic, it gave little if any scope for a creative approach to the architectural treatment of
towns and cities. Its structures were dictated more by the traffic pattern and the client’s return on
investment than future townscapes. Yet another profession (that of Town Planning) emerged.
The manner in which architects dealt with the individual commissions, particularly in the building
boom of the late ‘60s and early ‘70s, gained few plaudits. Failure to establish their influence at the
pinnacle of public need led to its decline to the point when associated professions believed that their
training and experience was more nearly aligned to the principal components of client demand. The
aesthetics of building had become subsidiary to its site occupancy and its technical economy. Much
of the investment was public. Concern led to criticism.
This concern about the construction industry in general and the design professions in particular, has
been shown by a number of British governments. The Emmerson Report was the first to notice the
gap between those who design and those who actually build and who recommended, in order to
improve efficiency, that ways should be found which might bring the two processes closer together.
In 1964 a further Government committee under the chairmanship of Sir Harold Banwell stated:

Page 5
(a) As the complexity of construction work increases, the need for a design team at the outset, with
all those participating in the design as full members, is vital.
(b) Restrictions on the activities of members of the professional institutions needs to be re-
examined.
(c) The use of unorthodox methods of contract procedures has advantages which should not be lost
to members of the Public Sector through rigid adherence to outmoded procedures.
It appears that the RIBA (which was the main target of the Banwell Report, found little cause to
pursue the recommendations. In an act of further concern the UK Government published a follow-up
report in 1967 mistitled ‘Action on Banwell.’ This spelt out the inaction arising from the 1964
recommendations.
Change, nevertheless, was inevitable. During the following twenty years local authorities (such as
Nottinghamshire, which pioneered the CLASP system) experimented with new techniques and
management systems. Contractors undertook Design and Build responsibilities. Project Management
was applied to major construction processes. Management of works for a fee by a management
contractor became acceptable; indeed, it was welcomed by the large chain stores, commercialists
and industrial clients. The architect’s role consequently shifted with each new opportunity.
The architects began not only to lose their traditional position as leader of the construction team, but
to find that they were faced with competition from outside as well as from within their ranks.
Building surveyors, construction technicians and many others offered design skills to the public for a
low fee. The RIBA could no longer impose its recommended scale of fees and the cold wind of
competition began to erode the vestiges of comfort and security.
The decline of the economy in the late 1970s and the accession to power of a government with a
harsher view of social responsibility and practices in restriction of trade led to a severe building
slump. The industry sought new fields. The oil-rich countries had little patience with the idea of client
participation in the minutiae of the building process; they wanted a satisfactory functioning building
at a price and on time. The architect and patron model was dismissed for that of the designer and
supplier of a product. The climate was ripe for the development of project management extending
from inception to completion.
It has only been during the past few years that social and economic pressures have created a climate
in which Banwell could flourish. In an act of unprecedented courage, the RIBA abolished, in 1983,
the scale of mandatory fees. This, it must be said, followed a criticism from the Office of Fair Trading
and also a Monopolies Commission Report on advertising by solicitors, vets and accountants.
The fee scale was not the only thing to go; restrictions on advertising were lifted; the ‘directors rule’
was also abolished. Architects could again practice the art of building as well as the skill of design.
Architecture as a profession had returned (if it wanted) to the status of a Master Builder and could,
after a lapse of one hundred years, be totally involved in the full production of buildings.

Page 6
During 1983 two important publications were produced: ‘Faster Buildings’ and the ‘Manual of the BPF
System’, both illustrating the degree of experimentation which was taking place at that time. The
former analysed the differing management techniques on five thousand industrial contracts with a
variety of roles for the architect. The latter suggested an unorthodox approach to the management of
both the design and construction processes.
Not only were dramatic changes taking place in the UK, but other countries were also involved in this
revolution. The main conclusion of the 1984 Conference of Architects in the Commonwealth Countries
was that architects were performing management functions which were beyond their basic
architectural education and experience Architectural education was, and still is, design-centred with
little regard for the management of the design process. Furthermore, few schools of architecture take
seriously the whole subject of ‘Architectural Management.’
John Carter in the Architects Journal, was one of the first commentators on the new roles of
architects—he said “that the new-found (1981) freedom of architects to initiate speculation or to
direct building or component companies, must be used to broaden and deepen the profession’s
educational base.” Regrettably the RIBA, whilst allowing the practitioners to have freedom of
operations, has not yet revised its traditional thinking on educational parameters for future architects.
The full circle therefore has been turned—practice and educational training need to rethink the
traditional values and look towards a new and vital industry. Alan Meikle, the former County Architect
of Hereford and Worcester County Council, in supporting the then proposed Code of Conduct said,
“So, if we are to retain the initiative in our affairs, we must react to these changes in our work, the
building industry and the society in which we live.”
References
Architectural Magazine. (1834) 1, pp. 12–16.
Banwell, Sir Harold. (1964) Report of the Committee on the Placing and Management of
Contracts for Building and Civil Engineering Work. London, HMSO.
Blunt, A. (1958) Philibert De l’Orme. Zwemmer, London.
Building Economic Development Council. (1983) Faster Building for Industry. London, HMSO.
British Property Federation. (1983) The British Property Federation System for Building
Design and Construction. Manual of the BPF System, London.
Campbell, R. (1747) The London Tradesman. London, p. 155.
Carter, J. (1981) The Code is Dead: Long Live the Code. Architect’s Journal, 194(43), pp. 282–
83.
Emmerson, Sir Harold. (1962)Survey of Problems before the Construction Industries, Report
prepared for the Minister of Works. London, HMSO.
Houldsworth, K.H. (1983) Building Industry Employers and Trades Associations 1833–1884.
M.Phil. Thesis, University of Nottingham.

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National Economic Development Office. (1967) Action After the Banwell Report. London, HMSO.
Meikle, A. RIBA Code of Conduct—FOR the Proposed Changes . Architect’s Journal, 171(26), p.
1228.
Place MSS.27, Brit. Lib., 799, p. 124.

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Data on the managerial tasks and needs of architects
R.E.Finnigan, R.F.De La Mare and S.H.Wearne
Technological Management Unit, University of Bradford, UK
Keywords: Architects, RIBA, Practice Management, Project Management, Construction Management,
Future Careers, Education, Training, Survey Method.
1. Introduction
A survey of members of the Royal Institute of British Architects carried out in 1986 indicated that
architects of all ages recognised that they had a great need for ‘managerial’ knowledge and skills
(Finnigan et al, 1986). In this survey data was obtained by sending a questionnaire to 1 in 20
members in the UK, and some were also interviewed.
The data obtained indicated that architects of all ages have a great need for managerial knowledge
and skills, and that most of them believe they have been insufficiently prepared, by way of formal
education and training, in many of these, particularly in the human relations, financial, organization
and contractual skills.
The detailed results indicated the relative importance of expertise in estimating, planning, marketing,
organization, contracts, law, safety, work study and other managerial subjects. The data showed how
the use and need of this expertise varied with age, level of responsibility, type of employer and size
of organization, and whether the members sampled had received any training in the subjects needed,
what training they saw as needed, and what were their problems in construction management.
The survey provided a basis for policies on how much tuition and guidance on managerial subjects
should be included in courses and training at various stages in architects’ careers. This paper
recommends that the profession should consider repeating such surveys regularly in order to provide
up-to-date data and to be able to identify trends in the profession’s needs.

Page 9
2. Survey management
The 1986 survey was carried out by the Technological Management Unit of the University of Bradford
with assistance and advice from senior members and staff of the RIBA.
The costs of employing research staff to prepare the questionnaire, supervise its distribution, prepare
the answered questionnaires for data processing, analyze the results, interview some respondents
and help draft this report were met by a grant from the Science and Engineering Research Council
under their specially promoted programme for research in construction management. The RIBA
undertook the work of selecting a sample of their members, provided postal labels addressed to
them, and gave comments on the results and drafts for this report. The University met the costs of
coordinating the survey and of the data processing.
3. Purpose
The survey was designed to obtain data on:
- The relative importance of expertise in estimating, planning, marketing, motivating, organizational
and contractual relationships, law, safety, work study and other managerial subjects.
- How these needs vary with age, level of responsibility, type of employer and size of organization.
- Whether training had been obtained in the subjects needed, either initially or later in careers, and
what training was needed for future responsibilities.-
- What were their problems in construction management.
- What were their comments on such a survey.
4. Survey method
Posting a questionnaire to a random sample of the RIBA members was chosen as the main method
of obtaining data, followed by interviewing of a few respondents. This choice of method was based
upon experience gained by us in a series of surveys of the managerial needs of engineers and
builders (See the reports listed at the end of the paper).
4.1 The questionnaire
The scope and wording of the questions appropriate for RIBA members were decided as a result of
exchanges of drafts and two meetings with the Institute’s staff. In particular we agreed that we
should obtain data and comments from those in small practices and be able to compare their needs
with the larger organizations.
Our questionnaire asked for detailed data on the skills and experience listed in the table attached as
an Appendix at the end of

Page 10
this paper. Respondents were asked to indicate whether each was required in their present post,
whether required in future career, and whether instruction in them had been received up to
qualifying as an architect or in subsequent training.
The questionnaire included specific questions requiring ‘Yes’ or ‘No’ replies and open questions
requesting respondents to write in their own answers. They were also invited to end by adding any
general comments.
A specimen copy of the questionnaire is reproduced in the report.
The RIBA runs surveys to obtain data on employment and earnings, and these are sent to 1 in 5 of
architects on the Registration Council’s register. Our questions duplicated them only to the extent of
asking for data on type of employer and age. For our purposes this data provided a basis for
assessing whether the respondents to our survey were comparable to the larger number of architects
covered by their employment and earnings survey.
4.2 Questionnaire response rate
Number of usable questionnaires received: 382
Number sent out: .. .. .. .. .. 1,104
Net response rate: .. .. .. .. .. 35%
67 of the questionnaires received were not usable because they were from retired members or the
answers were not complete.
4.3 Interviewing
The purpose of interviewing some respondents was to explore their perceptions of their work and
ascertain whether they felt that the questions we had asked had enabled them to give an accurate
description of their managerial needs. It was limited to those who indicated in replying to the
questionnaire that they were willing to be interviewed.
The interviewing was semi-structured, covering the following points:-
Thanks to the respondent for helping with the survey.
Statement of the purpose of the interview.
Discussion of their answers to some questions.
Discussion of any general comments added at the end of the questionnaire.
An invitation to respondent to give views on the survey and its purpose.
Any other points.
4.4 Presentation of data
The data obtained in the survey was presented in five sections in the report, as follows:
Qualifications, ages, employment and place of work. This was ‘demographic’ information on who
responded.

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Managerial content of the respondents’ jobs, most difficult or demanding aspect of job, autonomy,
coordination and solution of problems.
Relevant training and future training needs.
More detailed data on the managerial contents of jobs compared with level of responsibility, age,
type of employer and size of firm.
A summary of the results of the interviewing.
A review of general comments from respondents.
5. Data obtained
20 pages of the report display the data obtained. Here we have space for extracts and the main
conclusions.
5.1 Employment
The range of ages of respondents had a median value between 40 and 49. Office employment
predominated, as would be expected. There was quite an even spread of size of employing
organizations, but with less respondents in those employing 10 to 199 people. Approximately half the
respondents had been in the same organization or post for ten or more years.
5.2 Managerial extent of posts
As indicated by the detail shown in the Appendix to this paper, the questionnaire was designed to
obtain data on the extent that the respondents’ present posts required managerial skills and
experience.
The answers showed that aspects of project and office management were considered to be much
more difficult or demanding than design. As stated in an interview, the items listed do not necessarily
create insurmountable problems. Also they may not be dominant in the respondents’ work. The
answers indicate that expertise in professional and contractual relationships, personnel, finance,
commercial management and obtaining new work may be vital if only occasional needs.
The work of a quarter of the respondents was predominantly architectural or technical. On the other
hand, the answers to this question show that the majority of respondents’ work was partly or
predominantly administrative or managerial. The data indicated that 75% or more of members
required expertise in:
Negotiate with other professions
Negotiate with contractors
Establish feasibility (of job or project)
Plan and control preparation of brief, sketch plans, scheme design & detailed design
Direct supervision of others
Negotiate with clients
Negotiate with public authorities (not as clients)
Review project costs

Page 12
Establish viability (of job or project)
Motivation of others
Review construction performance
Plan and control budgets (of office or practice)
Nominate sub-contractors
and that 50% or more required expertise in:
Establish cost ceiling/range (of job or project)
Negotiate with others
Establish needs and resource availability
Select personnel
Draft contracts
Plan manpower requirements
Business planning
Plan construction
Evaluate project viability
Marketing of services
Establish policy on fee payments
Taking responsibility for planning matters
Identify potential projects
Negotiate with employees
Train employees—professional
Advise on organizing building procurement
Accounting
In the above and later lists the items appear here in descending order of the percentages of
respondents stating that they required them.
It should be noted that at least 50% of the respondents required expertise in all the items listed
under ‘Traditional Job or Practice Management’ except Computing/I.T.
As might be expected, less than 25% of the respondents required expertise in:
Use company law
Programming, design and construction in relation to sales
Trading as property developers
Trading in land/buildings
Trading as contractors/sub-contractors
Acting as house or estate agents
Trading as manufacturers/suppliers to the construction industry
Acting as auctioneers
5.3 Training received
Discussions in the interviews showed that the answers on training given in the questionnaire might
not be as accurate as we would have wished because of varying interpretations of what training and
experience was relevant. Also there could be duplication in the content of instruction received by
individuals before or after qualifying, or the instruction received might not be appropriate for

Page 13
the working needs. Allowing for these doubts, the respondents as a whole indicated that they were
inadequately trained.
Considering the items noted earlier as required by at least 75% of the respondents, the data
indicated less than half that percentage were trained in:
Establish feasibility
Negotiate with public authorities
Establish viability
Plan and control budgets
and similarly with most of the expertise required in their present posts by at least 50% of the
respondents.
Generalizing from these results it appears that they were least well prepared in the following
categories of expertise:
- Personal skills of motivation and supervision
- Formal skills of negotiating
- Project identification, evaluation and selection
- Manpower planning and selection
- Business planning and marketing
- Budgeting, fee policy and accounting
- Project costing, planning, reviewing costs and construction performance
and relatively well prepared in:
- Planning and controlling preparation of briefs, design, etc
- Drafting contracts and nominating sub-contractors
Generalizing even further, the survey showed that the greatest need may be for skills in managing
people, as has been observed to be a common need in the construction industry (Fryer & Fryer,
1986).
5.4 Most difficult or demanding aspect of job
Professional/Contractual relationships 15%
Personnel management .. .. .. .. 14
Commercial management/development; obtaining new work .. .. .. .. .. 13
Financial management .. .. .. .. .. 11
Self-management .. .. .. .. .. .. 9
Public relations; politics/bureaucracy 9
Design .. .. .. .. .. .. .. .. 4
Updating .. .. .. .. .. .. .. .. 2
Miscellaneous .. .. . . .. .. .. .. 13
None.. .. .. .. .. .. .. .. 12
Note: The items listed are our classifications of the statements made by respondents.

Page 14
5.5 Management courses and formal qualifications
None of the respondents had gained the MBA or DMS levels of formal study for management, and
that only 3% had taken any management courses. These were less than figures for other
construction industry groups (Faulkner & Wearne, 1984; Finnigan et al, 1986). This result was
consistent with the much criticised UK reliance on responsibility for generating competence (Coopers,
1986).
5.6 Needs for future careers
In contrast to this last result, the data obtained showed that the respondents to the survey expected
to require a wide range of items of additional expertise for their future careers. Most required were
the following:
Computing/I.T.
Develop entrepreneurial expertise
Research into market conditions
Identify sources of funding
Identify potential customers
Analyze project risk
Data processing
Accounting
Use company law
Select personnel
Use employment law
The above were those stated as future requirements by at least 20% of the respondents. Most of
these and the other items stated as more required are not what is called traditional job or project
management.
5.7 Variations with type of employing organization
The respondents’ statements of the most difficult or demanding aspects of their jobs varied between
categories of employer.
The detail indicated that professional and contractual relationships were easier in multi-profession
organizations, a result to be expected if most or all the specialists required by projects can work
together in these firms. Other results to be expected were that commercial and financial matters
were less significant in public organizations, but their public relations or political and bureaucratic
problems were greater.
Multi-professional organizations appeared to achieve less complexity in architectural and technical
matters, but correspondingly more administratively and managerially, as might be expected. Items
such as business planning, accounting and negotiating with clients etc. mostly involve respondents in
private practice. Those in multi-disciplinary organizations were more involved in organization &
methods, computing, funding and sales, but less in project feasibility and viability, drafting contracts,
planning and

Page 15
negotiating. Those in public services show generally less involvement in many items, particularly in
office or practice management, advising on building procurement, contracts, construction,
negotiating, and in non-traditional areas of work such as entrepreneurial and marketing skills, as
would be expected.
The least differences between these three main categories of employment were in the items of job
or project management, though in public service there was clearly less involvement
5.8 Variations with size of organization
There were some differences in the most difficult or demanding aspects of jobs in different sizes of
organization.
Professional and contractual relationships seemed to be less difficult or demanding in organizations
employing between 20 and 99 people. This may be because this size of firm is large enough to make
specialization possible without relationships having to be predominantly formal, but it should be
noted that in the data there was no clear change in the significance of personnel management over
the range of sizes of organization shown except that it was insignificant in the smallest ones.
Commercial management, development and obtaining new work appeared to be relatively more
difficult or demanding for the organizations employing less than 20 people. If anything the data
indicated the same for financial management, but both the above results may have been influenced
by the respondents’ lesser involvement in those matters in the public offices that were likely to be
amongst the larger organizations.
Public relations, politics and bureaucracy appeared to be most difficult or demanding in the smaller
and in the larger organizations, but it seems likely that they were demanding in very different ways.
In the smallest this result may be related to obtaining new work, but in the larger offices may be
related to political control.
Only 4% of all respondents stated that design was the most difficult or demanding aspect of their
jobs, but this was particularly demanding in the larger offices.
5.9 Variations with level of responsibility
The detail indicated that the respondents in the more senior posts had the greater needs for
managerial expertise. This trend was least in the ‘Traditional Job or Practice Management’ items. It
was more marked in the other sets of items, but it should be noted that the following were required
by more than 50% of respondents whatever their level of responsibility:
and most of the ‘Traditional’ items.

Page 16
5.10 Variations with age
Overall the peak of needs for managerial skills and experience in their current posts occurred to
respondents aged about 40 years. There was a drop in the total of difficult or demanding problems
after a peak in the age range of 40 to 49.
Considerable variations were found in how the respondents’ statements of the most difficult or
demanding aspect of job varied with their age. Professional and contractual relationships and self-
management were more dominant in the statements of the younger respondents. Personnel
management, commercial management development, obtaining new work, financial management
and public relations, politics and bureaucracy were more dominant in the middle ranges of age.
Many of the items listed were shown to be needed by most at all ages. Including the youngest
respondents more than 50% of all ages needed expertise in the following:
Plan and control preparation of brief, etc
Negotiate with public authorities
Establish viability
Establish cost ceiling/range
Plan construction
Most of these were items listed under ‘Traditional Job or Practice Management’.
Only the following items in the table were most required by respondents aged over 50:
Accounting
but as noted above this last item was required by at least half of those at all ages.
One item was most required by the youngest age group:
but again was required greatly by all ages.
5.11 Variations in future requirements with age
Respondents’ statements of the expertise required for their future careers varied with their age at the
time of answering. Their views of requirements decreased generally with age. This is to be expected

Page 17
as expertise will have been acquired with experience. The greatest future needs were overwhelmingly
those of the respondents not yet 35. This may indicate that they perceived that the greatest
requirements come around the age of 40, as noted above. A decrease in further requirements after
that age would therefore be expected for this reason alone.
6 Results of the interviewing
A large number of respondents (199) indicated in answering the questionnaire that they were willing
to be interviewed to help with the survey. We were therefore able to select 18 drawn from the main
categories of employment, size of firm and ages of respondents who were located in different regions
of the country. No one approached by us declined an interview. All were interviewed at their place of
work.
Discussing the respondent’s present post and type of organization was often a convenient way of
starting the interview. Some amplified what they had written. None stated that their written answer
needed correction, except one minor correction from one respondent.
Two had changed to different posts. In these cases we discussed the needs of their posts at the time
of answering the questionnaire.
Interviewing was the opportunity to ask respondents about their description of the most difficult or
demanding aspect of their post, as a means of checking what we thought was meant by their written
answers to this open question. None of their replies in the interviews showed that we had
misunderstood them. Two respondents stated that the most difficult or demanding aspect of their
work was not necessarily typical or frequent. Another commented that his statement about settling
the final account for a contract was the most demanding aspect of his post did not mean that it was
not done well. One in teaching remarked that administration was a growing and the most demanding
aspect of his work in a technical college because staff were not recruited, trained or rewarded for it.
Managing one’s own time was stated or implied in several answers discussed in the interviews, but
the main problems mentioned were: contractual and professional relationships, personnel
management, getting new work, business planning and financial control.
The majority of the respondents interviewed stated that many of their answers about training
received indicated that skills, etc had been acquired by experience or through informal guidance at
work. Some had obtained instruction in formal in-company seminars, but more at external short
courses. One respondent commented that he had learnt much by part-time lecturing.
One respondent who had indicated no training needs in the questionnaire stated that he expects he
will require non-traditional skills such as entrepreneurship for his future career.

Page 18
7 General comments from respondents
7.1 The survey
Several respondents stated that the survey was welcome as it showed that the RIBA were interested
in their members’ needs and was potentially valuable in indicating what was happening to the
profession. One stated that he had replied to the questionnaire because it wasn’t selling anything.
One respondent suggested that the questionnaire should perhaps have been sent to a sample of all
architects on the Register, particularly as the younger ones may therefore be under-represented, but
appreciated that it is the RIBA who can use the results to initiate actions. One commented that he
thought the questionnaire reflected a bias in the RIBA towards the larger practices.
Several respondents gave the view that architects need to be more business-like and entrepreneurial,
especially to take the lead in conceiving and promoting new projects, rather than leave these to
other professions and less qualified groups. One stated that the profession should concentrate on
design conception and the coordination of projects, but others supported the view that they needed
to be better managers.
Two commented that it was important to note that much of the work now available consisted of
small jobs, conversions, refurbishment and interior cosmetic detail, and that financial limits demand
‘more for less’ from architects and contractors.
Several respondents commented that relationships and the scope for speculative work were much
more formal or limited in public organizations compared to private practice, but were more
predictable. Two in public organizations anticipated that their future may be to go into practice on
their own.
7.2 Training
Training up to qualifying was criticized by several as being limited by the experience of teachers and
attitudes of senior architects, resulting in ‘gaping holes’ compared to working needs. They
recommended that students should at the least be introduced to accountancy, contracts and job and
practice management, when at Schools of Architecture, and two commented that courses they had
taken in social sciences and motivation were very useful.
All who expressed a view on this stated that learning by experience alone was narrow and
inadequate, and that mistakes due to this were expensive compared with formal training.
Postgraduate courses were not considered to be the remedy, because of their cost, but one
respondent stated that he was planning to take a part-time MBA.
The use of short courses as run by the Institute for Advanced Architecture Studies was mentioned
favourably by three respondents, but with comments that more was needed and that local courses
were needed to limit their expense. Several respondents commented that short courses run by
various organizations had been too elementary or not in terms recognized as relevant to the
profession.

Page 19
7.3 Role of the RIBA
The interviews indicated that members expect the RIBA to be more than a club, to take the lead in
action on all the results of the survey, and particularly to help those in private small practice and
distant from London or other major centres.
Actions to raise standards and to protect the profession were also expected, to give individuals more
benefit than obtained by being on the Register, for instance by lobbying Parliament and actively
representing members. In one country abroad the state guarantees the payment of fees due.
8. Conclusions
8.1 Survey method
The use of a postal questionnaire enabled us to obtain a large amount of data in a relatively short
period of time. This method has limitations in producing qualitative information and certainty about
the meaning of words used, but the interviews though few in number had the value of indicating
that the results obtained from the questionnaire were not misleading.
From an inspection of the data obtained we have no reason to doubt that the sample of RIBA
Members was representative, and many of the answers accord with what would be expected. One
might conjecture that the Members with more managerial jobs or aspirations might tend to be those
who answered the questionnaire. The few respondents who were interviewed did not confirm this.
We hope therefore that the high rate of response achieved may mean that the membership was
represented sufficiently well for our purposes, although the possibilities of error or bias should be
borne in mind when using these results.
8.2 Need for managerial professionalism
The data indicated that the work of the majority of RIBA members requires expertise in personal
skills, negotiating and many other aspects of job, project and office management for which they
were not trained formally and are thus expected to learn by experience. This conclusion is consistent
with the lack of concern for professionalism in training in the skills and knowledge required for
managers in the UK which has been so severely criticised.
Although data obtained from current employment should not be taken as entirely relevant to future
needs, it does provide a start to discussing what may be needed. The data obtained in this survey
may be most relevant in indicating what is needed by the youngest members. Expertise in many of
the items listed in the Appendix to this paper is clearly needed early in careers, before being in a
post that is predominantly managerial. In discussing the actions needed in the qualifications of
architects, a distinction can therefore be made between the instruction initially required in these
‘managerial’ subjects and the further training required as a manager.

Page 20
The data obtained indicated that most training for management needs to be completed by about the
age of 40, if it is to be of most use. The detail indicated that many of the subjects listed were
required, but we think that the content of skills and experience required in them will be different
from those required early in careers. The data obtained also indicated that the needs which
respondents thought they required varied with size and type of employment, but it should be noted
that those interviewed in private and public offices stated that the needs were now broader than the
traditional ones and demanded that personal skills and business expertise should be gained faster
and better than by experience alone.
8.3 Repeating the survey
A repeat of the survey would produce up-to-date data on architects to provide a guide to their needs
in their jobs and careers. If repeated it would also indicate trends, and so help make predictions. We
do not have the resources to undertake another survey, but we would be willing to assist with
planning any further work. The questionnaire is freely available for re-use and all the data obtained
is accessible for further analysis.
9 References
Coopers & Lybrand Associates (1986) A Challenge to Complacency: Changing Attitudes to
Training. Report to the Manpower Services Commission and The National Economic Development
Office.
A C Faulkner & S H Wearne (1979) Professional Engineers’ Needs for Managerial Skills and
Expertise. Report TMR 15A, Technological Management, University of Bradford.
A C Faulkner & S H Wearne (1984) Civil Engineers’ Needs in Construction Management—
Report of 1984 Survey. Report TMR 153, Technological Management, University of Bradford.
R E Finnigan, R F de la Mare & S H Wearne (1986) Managerial Needs of Chartered Builders.
Report TMR 154, Technological Management, University of Bradford.
R E Finnigan, R F de la Mare & S H Wearne (1987) Managerial Needs of Architects. Report TMR
155, Technological Management, University of Bradford.
B and M Fryer (1986) Managing people in the construction industry. Int. Journal of Construction
Management & Technology, 1, 1, 5–20.
Royal Institute of British Architects (1986) Architects’ Employment and Earnings.
S H Wearne (1981) Engineers’ managerial tasks. Journal of European Industrial Training, 5, 6,
22–24.
S H Wearne et al (1984) Managerial Skills and Expertise Used by Samples of Engineers in
Britain, Australia, Western Canada, Japan, The Netherlands and Norway. Report TMR 152,
Technological Management, University of Bradford.
* Copies of reports TMR 152, 153, 154 and 155 are available at £10 each (including postage) from
the Technological Management Unit, University of Bradford, Bradford BD7 1DP.

Page 21
APPENDIX
In the questionnaire respondents were asked to indicate whether skill and expertise in any of the
following were required in their present post, whether any were required in future careers, whether
instruction in them had been received up to qualifying as an architect, and whether in subsequent
training:
OFFICE or PRACTICE MANAGEMENT
Business planning
Accounting
Work Study (method study)
Data processing
Organization & methods (O & M)
Select personnel
Use employment law
Use company law
Train employees—clerical
Train employees—professional
Train employees—managerial
Computing/I.T.
TRADITIONAL JOB OR PROJECT MANAGEMENT
Establish cost ceilings/range
Establish viability
Plan and control the preparation of:
Brief
Sketch Plans
Scheme Design
Detailed Design
Advise on organizing building procurement
Draft contracts
Plan construction
Plan maintenance
Negotiate with public authorities (not as clients)
Computing/I.T.
OTHER AREAS OF PRACTICE
Develop entrepreneurial expertise
Research into market conditions
Identify potential projects
Identify potential customers
Analyse project risk
Establish policy on fee payments
Identify sources of funding
Taking responsibility for planning matters
Programming, design and construction in relation to:
funding
marketing
sales
Acting as auctioneers
Acting as house or estate agents
OTHER ACTIVITIES
Trading in land/buildings
Trading as contractors/sub-contractors
Trading as manufacturers/suppliers to the construction industry

Page 22
Communication and clarification between designer and client: good practice and legal
obligation
A.P.Lavers
Oxford Polytechnic, Oxford, UK
Abstract
The author considers the relevance of communication between designer and client at the design
stage to the avoidance of failures which may lead to disputes and, ultimately, claims. The benefits of
clarification of the design brief are examined. It is concluded that such clarification constitutes good
practice. It is further contended that it is part of the legal obligation normally undertaken between
architect and client where the former is the principal designer and the latter the building owner. The
author’s general conclusion is that insufficient attention is often given to improved communication as
a means of eliminating disputes and potential claims.
Keywords: Law, Legal Obligations, Professional Negligence, Design Liability, Clarification of Design
Brief.
1 Introduction
Disputes arising from building failure often derive wholly or partly from a mismatch of knowledge and
expectation between building owner/client and professional designer. Even the term ‘building failure’
is a loaded one, since the perception of non-performance or under-performance may not be shared.
The mismatch may derive from a number of factors. There may be disparate degrees of experience
and expertise between client and designer. Given that there is a wide range of experience and
expertise as between categories of client, this disparity is very likely. Chiefly, this will consist of an
inexpert client, an individual or a non-property company undertaking a project (or one of the type in
question) for the first time, working with an experienced and knowledgeable architect. The mismatch
could be the converse, although it is suggested that this would be comparatively rare, viz. an expert
client and an incompetent designer. Related to, but not always co-extensive with, the question of
knowledge is that of expectation. Clients form expectations which are either inconsistent with those
of the designer or even inconsistent with what any designer might accept as realistic. Some of these
expectations are formed in good faith but grounded

Page 23
in ignorance. This may be ignorance of what this designer can do, ignorance of what any designer
can do, ignorance of the relationship between cost and quality, ignorance of the relationship between
time and quality, ignorance of the properties and life of materials. Other expectations may be
grounded in greed or self-deception; a belief that something can be had for nothing or very little, or
that designers can be expected to find ‘miracle’ solutions to insoluble problems.
Designers, too, on the other side of the equation form expectations. They may expect too much of
clients, especially inexpert clients. This is particularly so when it comes to limitations of products or
design solutions. Where the design is severely constrained by the client’s budget, it may be self-
evident to the designer that lower standards of performance and/or life are the natural sequitur. The
architect has a better chance than most clients of making an accurate prediction of the life of any
product or building. The same is true of risk. Architects, while they are not building scientists or
chemists, are still better placed than most clients to advise of the degree of risk in specifying a
product.
There is nothing inherently wrong in the existence of such a mismatch. Initially, at least, it must be a
common phenomenon. But it is the role of communication to reduce the disparity in knowledge by
diffusion, i.e. from where there is more to where there is less. It is the role of communication to
bring closer together the expectations of the parties, so that the designer better understands the
client’s aspirations and beliefs and can respond to them in what he produces or can seek to modify
them if they cannot be met.
If that communication does not take place, or is significantly imperfect, the mismatch of expectation,
of purpose, even, is likely to persist through and after the project. The consequences of this
continuation are considered below.
2. Increased risk exposure through mismatch of expectations as between client and
designer.
Paradoxically, the greater the ignorance and/or inexperience of the client, the greater is the trust
likely to be placed in the designer and the less is likely to be the client’s appreciation of the need for
efficient communication to articulate design objectives. Trust, while generally positive, may here have
the negative consequence of encouraging the designer to make assumptions or even decisions which
are not compatible with and are increasingly divergent from the client’s badly explained wishes and
beliefs. The designer does this by no means always because of the arrogant belief that he knows
better than the client what the client wants. The reason may be a (superficially well-intended) desire
to give the client the benefit of superior knowledge/experience. It my be a desire to improve
efficiency by avoiding frequent reference back. The consequence, however, is nearly always
divergence between the understanding and position of the

Page 24
respective parties, exacerbated by the fact that the inexpert client may not know enough to be pro-
active. They may not ask the right questions.
The divergence of the perceptions of the parties may come sooner rather than later, as the design is
implemented. While the effect of this may be an unwelcome altercation and the need for reappraisal
and perhaps improvisation, an early realisation of differences is preferable, while they can still be
reconciled or at least modified. Put crudely, the problem may still be acute, and arguments may
develop about money, but while the contractor is still on site, much may be achieved.
The divergence is not, however, always discovered sooner rather than later. Clients may only become
aware of the performance capabilities of a building when they try to use it, or try to use it fully. In
the recent contractors’ negligence case of Department of Environment v Thomas Bates1, the office
building was quite capable of bearing its imposed loading despite the deficient cube strength (bearing
capacity) of the concrete. It was when the tenants proposed using it to full capacity that a problem
became apparent, because the inadequate concrete was not capable of bearing its design load. It is
axiomatic that many defects in buldings are latent. In the case of Pirelli General v Oscar Faber and
Partners2 the deficient product specified by the defendant consultant engineers caused damage
shortly after completion of the industrial chimney in 1969. But the damage was only discovered upon
a routine inspection in 1977.
Designers would be ill-advised to derive much comfort from the successful running of the limitation
defence in the Pirelli case. The reality is that appearance of damage arising from latent defects, or
the discovery of damage which is itself latent, will result in the opening up of disputes and
(potentially) claims in projects which have long since been completed. The same is especially true of
deficiency which consists in what the client regards as a product or building failing to achieve its
expected life. The commencement of acrimonious contact and the issue of proceedings is delayed,
not avoided.
Thus far, discussion has been centred upon the client’s ignorance and its consequences. But there
may be circumstances where the designer’s inadequacies are the source of dispute.
Designers have limitations, like all other professionals. They may be inhibited from discussing those
limitations with their clients, especially in times when competition for work is such as to encourage
the most positive portrayal of the expertise available. Yet failure to make clear the limits of
competence, may have the most serious consequences, in terms of the achievement of the desired
result and in terms of potential liability. The client is encouraged, explicitly or implicitly, to place
confidence in one who cannot justify it. Clients are likely to feel betrayed and resentful. It need not
be risk of failure on the part of designers working at and beyond the limits of their competence which
is the cause of dispute. It may be risk of failure, rather, of the design or some element of it. That
design or element may be seen by the designer as ‘client-led’, in the sense that the client has

Page 25
encouraged or even sought to insist upon its use. The failure of communication lies in the failure to
spell out the degree of risk and the potential consequences of failure.
It is a feature of the phenomenon of disputes arising some time after performance that the
respective memories of the parties differs sharply as to what was agreed, in the absence of formal
record. This is partly attributable, no doubt, to defective recall, but also partly to a form of wishful
thinking, a selective recall which imbues the remembered events with a character favourable to the
party in question and to the version of truth for which they are now contending. It will be suggested
below that improved communication only helps to avoid this consequence if it is reliably recorded in
writing. It is sufficient here to suggest that a divergence in expectation between the parties is likely
to be exacerbated by a divergence in recall as to what was agreed.
3. The obligations of communication and clarification
Thus far, the question of good communication has been discussed implicitly as a matter of good
practice, in that absence of it is identified as one of the factors which is productive of disputes and
claims. There are comparatively well-documented cases where it is contended that proper
communication between client and designer could have avoided the problem which was the subject
of the dispute. Delegation of design by the principal designer is a feature found commonly in such
cases. It is axiomatic that designers in a complex project will be unable physically to undertake the
design of every element personally. This encourages the use of procurement systems which
anticipate the delegation of design tasks of different elements of the building. But where an architect
or other consultant undertakes the role of principal designer (lead consultant), delegation of parts of
that role becomes more problematic. In Moresk Cleaners v Hicks3 the plaintiff cleaning company
employed the defendant architect to draw up plans and specifications for building a laundry
extension. The architect, who was unused to working with reinforced concrete, delegated part of the
design task to the contractor. When the structure suffered damage due to an error in design, the
client sued the architect. The Official Referee criticised the architect’s decision to delegate unilaterally
saying that ‘‘If he wished to take that course, it was essential that he should obtain the permission
of the building owner before that was done”. Similarly in the Canadian case of District of Surrey v
Carroll-Hatch and Associates4, the British Columbia Court of Appeal held both an architect and a
consultant structural engineer liable to their client, a municipal authority, following serious subsidence
caused by negligent foundation design. The engineer, conscious of the volatile soil conditions,
advised the architect of the need for a proper soil investigation. The architect replied that the client
would not pay for such work. Crucially,

Page 26
this request by the engineer was not communicated by the architect to the client. This omission to
communicate such a vital request ensured that the architect would be held liable. It may be observed
that the engineer also held laible because he allowed his very limited notes to be transmitted to the
client without clearly warning of their inadequacy. Again, a duty to be pro-active in communication
had been neglected with disastrous consequences.
Indeed, the duty to be pro-active in communication is a recurring theme in design liability cases.
Perhaps this duty is most acute where the designer is working at the upper limits of his knowledge or
knowledge generally. In EDAC v William Moss5 consultant architects were held liable to their clients
for failure to address obvious ongoing problems in the design of curtain walling of an office block.
The principal deficiency in the architect’s work was, in the words of Judge John Newey QC that
“Morgan (the firm) should have informed EDAC fully of the position and advised what was needed”.
The Judge had no doubt that the client “would have accepted advice frankly given; in any event
EDAC would have had no alternative but to agree to fundamental changes if they were ever to
obtain a satisfactory building. EDAC would, of course, have been put to very considerable expense,
but still a good deal less than they are likely now to incur”. The cause of this deficiency was perhaps
two-fold. First, the architects concerned were working at the limits of their knowledge of curtain
walling. Second, Mr Rae, the project architect, “lacked the firmness of purpose and the assertiveness
required for effective supervision of a large project”. Forthright communication, however unwelcome,
to the client, would unquestionably have avoided the litigation in this case.
It is important that the designer ‘takes the client with him’ in the sense of explaining the degree of
risk in alternative options and advising on choice. In Victoria University of Manchester v Hugh
Wilson6, the design called for a reinforced concrete extension to be clad in red brick and ceramic
tiles, to achieve aesthetic consistency with the existing University building. The tiling adhesive failed
and the clients sued the architects (inter alia). Judge Newey, giving judgment against the architects
emphasised that “Architects who are venturing into the untried or little tried would be wise to warn
their clients specifically of what they are doing and to obtain their express approval”. It needs only to
be added that the warning and approval should be written, as in an exchange of correspondence.
This will remind both parties of what was said and help to avoid a dispute arising from what has
been called euphemistically ‘selective amnesia’.
4. Conclusions: the duty of clarification
The examples of communication failure in this paper are specific, but there is authority for the
proposition that there are general legal obligations upon designers to take the initiative in clarifying
the client’s objectives and thus the design brief. The duty to be positive and pro-active in informing
the client was examined in the important decision of Richard Roberts Holdings v Douglas Smith
Stimson Partnership7 where an architect was held liable in

Page 27
negligence in failing to advise of the unsuitability of the material used for the lining of an effluent
cooling tank. Again there was the feature of reticence in expressing a lack of expertise. As the judge
commented “If the architects felt that they could not form a reliable judgment about the lining for
the tank, they should have informed (the clients) of that fact and advised them to take other advice,
possibly from a chemist’’. The value of this case, though, particularly lies in the court’s perception of
a pro-active and interpretative function of the architect. The defence was that the architects had
forwarded much trade information from potential suppliers to the clients, but the judge noted that
this information was given without analysis and virtually without comment. His somewhat severe
observation was that the architects “were not a secretarial agency for the clients”. In other words,
the architect was guilty of neglect of professional duty in failing to communicate his assessment of
the information. It was not enough to sit back and allow the client to make decisions on materials
unaided.
The most powerful exposition of the obligation to clarify the design brief is to be found in Stormont
Main Working Mens Club v Roscoe Milne Partnership8. The Stormont Main case should dispel any
doubt as to the existence of a positive duty on the part of designers to clarify the design brief. The
factual background of the case is explored by the author in his 1989 Architect’s Liability article.9 The
nub of the dispute between client (club) and architect was whether a games room was intended to
be for recreational games only or to be suitable for top-class competitive and exhibition snooker,
which proved impossible in the finished building because of space constraints. Judge Bowsher was
unequivocal in his view of the architect’s duty (although Mr. Milne was exonerated from a finding of
negligence on the facts): “In making his design, an architect has a duty to exercise due care to
ensure that the design should be reasonably effective to achieve the client’s purpose”. This, of
course, demands that the designer should clearly understand ‘the client’s purpose’. To that end,
Judge Bowsher stated that “if the client has expressed his instructions in terms which leave the
architect in doubt as to what his purpose is, the architect has a duty to ascertain what is the purpose
he is instructed to achieve”. It would be difficult to improve upon this statement as an explanation
both of good practice and of legal obligation. The designer who is unclear as to the client’s objectives
as they appear from the brief can only protect his interests and those of the client by seeking and
obtaining written clarification. The Stormont Main litigation could also have been avoided by greater
adherence to this point. It is submitted in conclusion that good practice and legal obligation converge
to demand greater attention to positive communication as between designer and client.

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5. References
1 (1990) 3 Weekly Law Reports 457
2 (1983) 2 Appeal Cases 1
3 (1966) 2 Lloyds Reports 338
4 (1979) 101 Dominion Law Reports 3d 218
5 (1984) 2 Construction Law Reports 1
6 (1985) 2 Construction Law Reports 43
7 (1988) CILL 444
8 (1988) Construction Law Reports
9 Lavers A.P. (1989) Architects Liability 1–3

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Learning from Detroit: architecture, mass production and the car re-visited
T.Clelford
Architect: Tutor, Thames Polytechnic, London, UK
Abstract
This paper reconsiders the analogy frequently made between buildings and the mass production of
automobiles. It accepts weaknesses in the comparison which have already been noted, but suggests
that the analogy may instead have relevance for architectural practice as a model for managing the
design and construction processes and for marketing architectural services to the public.
Keywords: Mass production, Design, Mechanisation, Systems, Marketing, Architectural Practice,
Automobiles.
1 Introduction
When I trained in the 1970s, I attended a school of architecture that prided itself on being at the
forefront of architectural education. Consequently we did actually have management lectures. These
were somewhat simplistic to say the least. The first lecture identified a few large-scale organisations
that had been successfully managed through history: the armed services (not surprising, given the
military background of the management tutor), the roman catholic church and, from the twentieth
century, the management of American early mass production plants for automobiles, where, we were
told, Henry Ford had a lot to answer for.
The mention of Ford may have been misleading. There was volume production of automobiles by
others before him—by Ransom E Olds (presumably of Oldsmobile fame) in America and by others in
Europe—but it does at least indicate the fascination that cars and the manufacturing process that
produces them has had for architects throughout this century.

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2 Mass production, Automobiles & Architecture Then
Those early mass production plants were geared (as the name implies) towards making more of the
same thing. But immediately that concern was extended to making that item quicker, cheaper and
with less resources. This, though obvious, needs to be said because it was precisely these interests
which were considered to be so fascinating to many of the architectural theorists of the early
twentieth century. Those preoccupations, as some of the papers here show, are still with us today.
Let’s briefly look at some examples of lessons leading architects took from the automobile plant and
mass production generally and consider what they did with them. I suggest that these ideas were
important to architectural theorists in three ways.
Firstly the plants were seen as a paradigm for the mass production of buildings and architectural
components or products. The attraction was that if an item could only be made efficiently and in
sufficient quantity then it would be cheap and accessible to all. An obvious example here is Le
Corbusier’s 1920 project for the Citrohan House, a simple house intended for mass production where
even the name is a pun on the name of the french automobile manufacturer Andre Citroen. (As
further evidence of Corbusier’s fascination with the automobile, it’s worthwhile bearing in mind that
his scheme for Paris a few years later was named after another car manufacturer, Voisin.)
Secondly the cars themselves were thought of as examples architecture could aspire to. They were
seen as ergonomically and efficiently designed, engineered rather than just constructed, to much
finer tolerances, using components built elsewhere rather than built on site. An extreme example of
architecture following this model would be Buckminster Fuller’s Dymaxion House.
Running in parallel with that was the idea of standardisation. In buildings this became the theme of
modular construction from standard components which were easily and rapidly put together. As
Russell (1981) points out, this idea was pioneered by Albert Bemis in the USA in the 1930s. He took
his inspiration from car construction and some of his illustrations make the parallel explicit. In the UK
production line buildings using industrial processes took off after World War Two when plants such
as those used for aeroplanes were turned over to making buildings. The Bristol Aeroplane Company
provides a good example: after the war it built AIROH houses and medium-rise school buildings. (As
an aside it’s worth mentioning that the aeroplane industry had already started to experiment with
other types of technology

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and construction during the war: the use of timber in the Mosquito and Barnes Wallis’s work on
bomber fuselages are examples. Mass production is a moving target and mainstream architecture
seems to lag a little behind the ideas as well as the practice.)
So far this has been a fairly conventional overview of the architect’s love affair with the car and the
manufacturing system that produced it. Love affair is a good phrase for the interest because what
architects seem to have felt was essentially a passion, based on an image, rather than a detailed
knowledge of how things were put together. That ignorance shows in the projects. The
manifestations of this interest that come closest to success and are the most convincing work
because of detailed knowledge rather than an interest in the superficial. For example, Charles and
Ray Eames produced an elegant house from mass produced components that was still being praised
and used as a model a quarter of a century later. And one of Norman Foster’s former partners,
Michael Hopkins, more recently developed his own steel framed building system, the Patera building,
having studied the historic system of vernacular timber framed construction while at the Architectural
Association. But while these two prototypes are elegant and eminently feasible, they didn’t go into
mass production. Much of the Eames furniture did, a tribute to their manufacturer and to the passion
with which the Eames understood the manufacturing process and pursued an understanding of
detailed components or technologies such as the jointing systems used.
The third and final influence of the automobile plant on architects is less obvious but far more
interesting from the point of view of this conference because it focuses on how the results were
achieved rather than the plant or the products themselves. The management ideas—typically
Taylorism—used to run the plants were seen as a model that could be applied to other forms of
production, including construction. The hope was that if you planned production carefully enough you
could break the project down into easy, repetitive tasks, each of which could be handled at high
speed by a worker who learned to specialise in that task. An early example of this transfer, Russell
noted in 1981, was the great interest shown by the constructivists after the Russian revolution, who
were influenced by these ideas precisely because they had to rapidly reorganise the labour force and
rebuild a society as well as buildings. They were searching for manufacturing and management ideas
that promised to be modern, fast and efficient, compared to conventional craft-based construction
which was considered inefficient, slow and out-moded. That transfer of ideas from America to
revolutionary Russia after World War One was mirrored by the transfer that took place from America
to Japan after World War Two. We’ll briefly look at a result of

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that, one of the modern products of the Japanese auto industry, later on.
3 Architectural Practice In The UK Today
The influences mentioned above tend to be based on an idealized and sometimes historic view and
have been in circulation for at least fifty years. Before I go on to look at lessons which I think can be
learned today from the automobile industry I’d like to give a brief, personal and jaundiced view of
current architectural practice in England.
There’s not enough work: indeed we haven’t had last year’s economic upturn yet, let alone this
years. People don’t want to buy what we have to sell. Yet we live in a country where the building
stock and infrastructure is old, often of poor quality or badly maintained or stretched beyond
endurance. Maybe that statement should be rephrased as a shortage of clients, will and money.
It’s still a time of high unemployment in the profession yet more and more student architects are
passing through our schools of architecture. To get work there’s intense fee competition between
architects, making us a very cheap profession to employ. Yet people seem to manage quite well
without us—or to at least be ignorant of the benefits of employing architects.
Job costing is often still scrappily done, usually on the basis of putting a notional percentage fee
against a job then working out what resources can be spent against it rather than having a detailed
costing of what has to be done. That’s not surprising when each building is seen as a one-time
solution to a one-off problem.
There’s increasing doubts about the protection we have from the law or insurance to do our jobs yet
we find ourselves taking on more and more responsibilities we didn’t look for about work we have
less and less control over. Arguments about companies versus partnerships, collateral warranties,
supervision versus site visits, even registering as an architect, typify this.
There’s limited standardisation in our work and in the products that go into it. Some use ‘standard
details’ which somehow never quite are standard, lifting a drawing rather than the expertise that
went into it. Meanwhile many architects rush to obtain QAQC, quality assurance under the British
Standard, with systems they’re evolving as they go along.

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Consequently many architects often end up unwittingly cutting their own professional, legal and
particularly financial throats. Many projects make a loss more often than architects would care to
admit, particularly if they take into account interest charges while they wait to get paid.
Meanwhile some architects are busy. They are in demand because they have something people want.
There are architects of signature buildings who don’t need to cut fees. They can instead charge
more. There are architects with specialist skills or know-how that make them essential: for example
one practice has a promise of a commission from five of the six applicants for a broadcasting
franchise. And there are architects who have built up a relationship—and I hope expertise—with a
particular client that is carrying them through the trough of this market.
4 Mass Production, Automobiles & Architecture Now
So if it can help with at least some of the problems outlined above maybe there’s still scope for
architects to learn more from automobile production. Maybe it can tell us something about how we
manage the design process; how we handle construction; and how we can market our services and
sell our buildings to the public. Let’s look at some examples.
It seems to me that automobile design is a paradigm for a design process that is both evolutionary
and carefully researched; that is tried and tested, carefully engineered and functional in the best
sense of the word. Corbusier and Ozenfant’s idea of the ‘objet type’ seems to be a good if
unconscious and rather touching example of this: the belief that a product can evolve to fulfil its’
function and in doing so become beautiful in its’ own right.
In the world of real products perhaps the approach is best summed up by Wally Byams, the man
behind the Airstream caravan, or (as he referred to it) the Airstream Land Yacht. Byams said ‘We
don’t make changes—only improvements.’ His background was in aircraft manufacture and design
and he then applied this know-how to trailer production. The result is a true ‘machine a habiter’ that
has evolved over forty years, changing slightly with each successive model as advances become
possible.
The effect of this approach on architectural practice can be a concentration on developing expertise
with certain components, suppliers or systems to the extent that the architect is able to become
fluent and skilled in them and able to have a constructive technical and creative dialogue with the
manufacturer. The architect is in turn then able to give the client a better and faster response. For
example,

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Foster Associates’ expertise from their Newport School competition entry enabled them to make a
rapid response to IBM’s needs when they had to quickly produce a pilot headquarters office at
Cosham.
Value engineering techniques to reduce costs, time or resources without reducing performance also
become more useful when designs evolve. They are embodied in the architectural urge to do more
with less. Foster Associates again provide an example, although the story may be apocryphal, with
their first Sainsbury Centre commission at the University of East Anglia. At the time it represented the
height of skin panel and gasket technology and Norman Foster allegedly sent an illustration of the
building to his one-time collaborator and guru Buckminster Fuller. Bucky’s reputed response sums up
the next improvement needed: ‘Yes Norman, but how much does it weigh?’
Automobile manufacturing continues to be used as a model for building construction. The idea of the
manufactured building is still with us. It offers a seductive image but also offers the architect more
control if he has the necessary know-how. Richard Rogers has been quoted as favouring it precisely
because the standards of management, manufacturing and control were potentially much higher off
site than on: the traditional construction, management and supervision process on site let him down
in buildings early in his career and he’s avoided it since.
Another aspect is how the car is manufactured. There’s been a swing in automobile production to the
use of teams who make a complete car and who are responsible for its quality. The use of group
assembly has enabled ideas like quality circles to take off, breaking down barriers between different
departments, subcontractors and suppliers. That could be mirrored in building construction—but
examples are rare. One reason why construction project teams function so badly is because at
present they’re sort-lived, limited to the duration of the project.
Finally the automobile industry can be used as a paradigm for the marketing and selling of
architectural services and buildings. In the early years of the century we should note that there was
little or no concern with using the management know-how available to harness the power of the
plants to make a greater range of products or products more closely geared to the desires of the the
customer. Henry Ford’s famous quote ‘Any customer can have a car painted any colour that he wants
so long as it’s black’ was in fact an admonition to his salesmen, who in an attempt to sell more cars
had been guilty of catering to the whims of potential customers. But as more manufacturers have
come into the market it’s become increasingly important to find ways of making the product

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more desirable or attractive to the customer so that you can sell more or charge more.
One way of achieving this is by differentiating between otherwise similar products. That’s done by
creating a range: X, XL, GL, GTi, XR3: we all despise it but we all succumb. And increasingly it’s
taken further, allowing the customer to select options from a range for a particular model: not just
the colour of the bodywork. BMW is a prime example of this. The firm is famous for its tendency to
provide so many optional extras that it’s now reputed that you’d need to compare fifty BMWs leaving
their plant before finding two that were identical. The result is that the customer has a more
personalised product, better suited to his or her wants, which hasn’t sacrificed the image of
engineering excellence. The customer has welcomed the opportunity to inflate the product’s price
and the company’s profit and has done so without disrupting the manufacturer in the slightest.
Wouldn’t it be nice if architecture was like that?
In building the response is less clear but there are examples. Within the public housing sector it can
still be adventurous to let tenants chose the colour of their front doors—although there were
attempts in Camden through PHASSAK (following Habraken’s ideas) to offer tenants a choice of
internal layout. In the private sector the whole DIY industry has grown up, supported by owner
occupiers differentiating themselves from their neighbours. Not by a lot, but by enough to show that
‘I’m the same as you but better’. The commercial sector has responded more directly with the
concept of shell and core construction. That doesn’t have to mean a decrease in quality, as Arup
Associates buildings at Finsbury Avenue and Broadgate in London show. It meant tenants got their
buildings sooner and were then able to employ their own architects to design the interiors for them.
Those architects have been pleasantly surprised when they’ve found that, per square metre, the
fitting-out budget has exceeded the initial building cost.
The final lesson on marketing from the automobile industry is Nissan’s S-Cargo Van. You may not
have heard of it or seen it: that in itself is interesting for a production car from a multinational
manufacturer. The only one I know of in this country was exhibited in 1991 in London’s Design
Museum. It’s unusual and interesting because it pushes the flexibility of production techniques to the
limit. It was produced for a limited market—the youth market; it was produced for a limited period
(from 1989 to 1990) and by only one plant—Nissan’s Pike factory. It was only sold in one,
comparatively small market—Japan itself. In its’ looks it’s an emulation of a competitor: the name is
a pun on escargot, after the snail-like shape (and possibly the snail-like pace) of Citroen’s 2CV, itself
one of the most long-lived production

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models in the world. The 2CV was itself a product of a tight and rigourous design specification and
(it must be said) is still a favourite architect’s car. The S-Cargo emulates it in the most
complimentary way and shows that a short production, carefully targeted product can still be
successful even if it emulates a fifty year old competitor—if you market it correctly. Better
management means mass production increasingly does not mean a mass product. The expertise is
being applied at a smaller and smaller scale. Soon it could reach the level of building.
5 The Architect’s Response
Having noted lessons that could help design, construction and marketing we should look at the
architect’s traditional reply: that he’s designing a tailored, one-off solution. The one-off design takes
time, money and all too often produces one-off problems. Yet the results often aren’t distinctive. In
those cases the client can be forgiven if he or she can’t perceive what value’s been added by the
architect. The architect’s seen as the person who ‘only did the drawings’. The building doesn’t bear a
architect’s distinctive signature and the client in turn has difficulty seeing how it’s different. Yet most
architects still re-invent the wheel with every building. That’s not, surprisingly, often a feature of
great architects: we can trace through an oeuvre the same preoccupations, the use of identical
materials, components from the same supplier, subtle variants on the same plan. Frank Lloyd
Wright’s houses are a good example. Few things are right first time: species evolve and the fit
survive. Why not designs?
As a profession we need to recognise architecture as the product of particular technologies and
know-how that it pays to master. I’ve already cited the transfer of design expertise from Foster’s
Newport School Competition to IBM Cosham. Too often we persist in being jacks of all trades and
masters of none—without even the virtues of a supermarket low-cost piled high ‘me too’ brand.
We need to build up relationships with particular suppliers, subcontractors and manufacturers that
will extend beyond the ‘one site stand’ of a single building contract. Relationships can then be built
up between companies and between individuals which can become dialogues. There’s scope for feed-
back and the gradual improvement of the product and the building in the light of the architect’s use.
And during this process the architect develops a special expertise in particular materials or
technologies—like the Eames’ interest in patented joint technologies we saw earlier or their skill with
moulded ply that gave the World War Two leg splint, a post-war sculpture by Ray Eames and
eventually the

Page 37
classic Eames armchair for Herman Miller. Together these start to give the architect more control
over the project and enable a faster response. And architect, client and contractor are exposed to
less risk because there’s less ignorance. And the knowledge gives us more economic control because
we have an understanding and an influence over more than one contract. Maybe it’ll even give more
of us the confidence to become contractors.
For example, we could develop an expertise in energy efficiency related to a particular building type:
as has happened with the Hampshire school programme. We might concentrate on compatible
component systems like the SCSD schools system in California, where an attempt to produce a
flexible system for school building resulted in a shifted focus on whether different combinations of
sub-systems fitted together, enabling a greater variety of buildings to be created with a wider range
of fittings and fixtures.
One reason to adopt the systems approach to buildings is that because of the varying life-spans of
different systems, identified in offices for example by Frank Duffy, important changes to the building
have to be made after completion at increasingly short intervals. The interaction of different sub-
systems has since become an important factor with the occupants of sophisticated buildings: hence
the rise of facilities management. And as the scale of those changes increases architects will be more
useful if they have the know-how and the flexibility,
6 A Last Example
As I reach the end of this paper I’m aware that many of my examples have come from the hi-tech
school of British architects and projects with large professional teams, even larger budgets and
wealthy clients. Some might be tempted to dismiss the points because of that. But that’s not
essential: the evolution of expertise and therefore control over the design and construction process is
there in elements of the work of Shalev and Evans for example. But to prove my point I’ll take an
example from the opposite end of the spectrum: the work of the late Walter Segal.
Segal once told me that he had developed his system because he wanted to have more control over
the design and construction process. He proceeded to describe the extent of control he had. It was
total. With his system he could do his own structural calculations. He could work without a quantity
surveyor yet was still able to cost his buildings accurately. He could correctly predict the amount of
work he had to do and knew exactly what limited overheads would be involved. Some specification
clauses and calculations could be

Page 38
standardised. For years he didn’t need an assistant and his drawing style consisted of A4 bank paper
traced over a tartan grid and Xeroxed as necessary.
He remarked that any architect who used the standard JCT form of building contract should be sued
by his client with professional negligence. In his system roles were simple and well-defined: he
preferred to use the same team again and again and the contractual mentality of a World War One
sniper was avoided. Because the projects were well understood, with a minimum of uncertainty in
virtually every area, the architect and the contractor could work economically, quickly and profitably.
Just as important, the uncertainties that faced the client in terms of completion date, costs,
appearance, were minimised. And finally Segal’s system was a unique service—that gave him all the
work he ever needed.
REFERENCES
Armes, Andrew (1991) The Wally Byam Paradigm – lecture, Thames Polytechnic
Appleyard, B (1986) Richard Rogers Faber, London.
Clelford, A (1974) Interview With Walter Segal
Clelford, A (1983) Flexibility and Change in Two Buildings by Foster Associates MSc
dissertation, Bartlett School of Architecture, London.
Duffy, F; Cave C; Worthington, J (1976) Planning Office Space Architectural Press, London
Russell, B (1981) Building Systems Industrialization And Architecture Wiley, London

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CHAPTER TWO
‘Design management may be regarded as a vogue phrase, but whatever title is thought to be most
appropriate, the underlying philosophy and the use of appropriate management techniques should
not be disregarded.’
J.F.Drage.

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The price of the independent design
A.G.Doree
University Twente, Enschede, The Netherlands
Abstract
This paper discusses the cost consequences when professional clients use different modes of
contracting out design activities. Three basic modes of design production are compared: in house
design department, contracting out to an independent design firm and the design/construct scheme.
The question stated is: ‘‘Which should be used regarding overal efficiency?” Tentative answers point
to the conclusion that either in house design or the design/-construct scheme should be used.
Contracting out to an independent design firm is not expected to deliver the best solution.
Keywords: Design process, Design procurement systems, Transaction costs economics, Life cycle
costs.
1 Introduction
Now a days only very few clients construct their own builded facilities themselfs. In the whole of the
construction industry “construction” has become a separate trade. When a client needs a building,
contracting out of the pure manufacturing is in general inevitably. As a result many of the known
procurement systems focus on client-contractor relations.
The division between the roles to be performed, and subsequently knowledge and profession, is clear
as far as the roles of the client and the constructor are concerned. However, this is not so clear for
the role and the profession of the designer. Many professional clients still have their in house design
departments; some construction firms have their own design department; independents design firms
operate on the market.
In the past decade in most organizations many management positions are taken up by lawyers and
economists. This trend also occurred in organizations who operate as “professional clients”. This
development often brings about a financial radioscopy of the organization. Questions are

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studied such as: “What should the organization do itself, and what should be procured from
suppliers?” The answer regarding construction work is clear, but what about design activities? Should
clients do their own design work or should the design be procured outside the company? This
question puzzles many professional clients. Often the lawyers and the economists act in a rigid
manner. Design is no “core-business” and should be disposed of.
This paper investigates three fundamental different modes of design acquisition: in house design,
contracting out to independent design firms and the design/construct scheme. The query is which of
the three considered schemes looks best seen from the viewpoint of overall efficiency.
2 A general description of the situation
In the Netherlands much of design and engineering of public facilities is traditionally carried out by
the local and (sub) national public authorities themselves. Up till now the most apployed procurement
method is the general contractor approach.
At this moment however, due to budgetary problems of the national and local administrations,
politicians promote and stimulate reduction of the (national and local) governmental apparatus. This
results in experiments with other types of procurement methods, such as design and construct, and
contracting out design work to independent design firms. The mayor reason for adopting this new
approach is to economize on public expenses. The main tendency is towards more and more
contracting out of design activities, which is supposed to result efficiency improvement due to savings
on the total sum of designers salaries.
The prime underlying supposition is that public agencies are operating less efficient than private
firms. A design acquired from the market is perceived as less expensive as a design acquired in
house. Since public agencies tend to be more bureaucratic than privately owned firms the former
statement is commonly accepted1. Subsequently many see the contracting out of design activities as
a positive contribution in the reduction of public expenses.
1 Williamson [1985] argues that internal production lacks competition. Internal production needs
another incentive structure. This alternative incentive structure is less effective as the outside
competition incentive. As a result internal production has to be less efficient (c.p.). Bokkes [1989]
supplies this argument. He states that public production has more than just a strait forward
financial objective. In pursuit of this multiform objectives concessions on efficiency have to be
made.

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3 The perceived problem
If economizing on public expenses is the main purpose, the question arises whether design should
still be done out “in house” or whether it should be partially or completely commissioned out. The
main problem can be stated as:
- Regarding the point of efficiency, when should the design be produced in house and when should
the production of the design be contracted out?
4 Answers found in literature
When we look for answers in the established procurement systems literature, especially to those
books and essays which compare different procurement systems, the next insights emerge.
Franks (1984) compares six types of management systems and uses five performance requirements.
Although contracting out of design activities is obvious in case of package deal and design/construct,
none of six described management systems refers to in house design. Furthermore Franks only uses
one financial criterium called ‘‘economy”, which should be interpreted as project costs.
The EDC publication “thinking about building” compares nine alternative procurement systems (in
four classes) and uses nine criteria. Also no distinctive difference is given concerning the design
procurement system, and one financial criterium “price certainty”. The questionnaire makes notice of
“controllable variation”. When variation is not controllable they advice not to use design and
construct.
The NEDO publication (1974) describes both the consultant approach and the design and construct
approach. Little attention is given to in house design acquisition.
Walker (1984) states in his book that in analyzing and designing organizational structures
relationships of people in the organization are of importance. He mentions the roles of the people,
the decisions they (are allowed to) take, and their relations in arriving at decisions. Knowing that the
design process is a decision making process, than the points Walker addresses underline the
importance of evaluating the distinction between “in house design” and “contracting out”.
Rougvie (1987) also makes no distinction between in house design acquisition and contracting out to
independent design firms. He compares nine procurement systems on seven criteria. Design and
construct score best on the lowest overall cost (project costs) and worst on flexibility.
Singh (1990) presented a paper on the last CIB W92 meeting, which showed a selection tool for
procurement systems developed on the basis of an elegant research project. Nine

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procurement systems are compared on eight criteria. But he also does not distinguish between in
house design acquisition and design from a independent design firm.
Bennett (1985) distinguishes three types of organization: programmed, professional and problem-
solving. These types are respectively suited for standard constructions, traditional constructions and
innovative constructions. Although he does not differentiate regarding in house versus contracting
out of design activities, he emphasises the role of the client and the decisions the client has to make.
“When the client does not carry them out {the essential aspects of his role}, another team within the
project organization will do so but not necessarily, or indeed not even probably, in the way which
meets client’s needs”.
This overview shows it is hard to find answers to the stated question. Most of the literature refers to
procurement systems without distinguishing between in house design acquisition and acquisition of
design from independent design firms. The authors often implicitly suppose the participation of
independent design consultants. Furthermore seldom is looked beyond the horizon of the project.
Most criteria used to evaluate the different procurement systems concern the project itself. Although
we probably all know the proof of the pudding is in the eating, little attention is given to the use
aspects of the building (such as value and costs).
5 Working towards an answer
Since literature gives no strait answers a more theoretical approach is needed. In general, selecting
among alternatives cannot be done without measuring relevant aspects of the individual alternatives,
and comparing the individual scores per alternative with the specified targets. This approach will also
be followed for the stated problem concerning the contracting out of design activities.
Comparing in house design with contracting out, in the context of efficiency of public expenses, can
be done on several levels of observation. The fundamental layer of comparison is production
efficiency: which is more efficient, in house production or the production of the supplier.
But it would be wrong to decide on matter of contracting out on the basis of production efficiency
only. On top of the layer of production costs is a layer of transaction costs: contracting out may save
on production costs, but additional costs have to be made. These are costs such as the costs of
finding and selecting a suitable contract partner, negotiating, drafting the contract, and last but not
least monitoring and assuring the progress and the result of the design. These costs of contracting
out have

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to be included in the evaluation of the different design procurement systems.
In the evaluation concerning contracting out the two mentioned financial layers are mostly
considered, but one other aspect is often overlooked. When financial effects of contracting out are
analyzed, consideration has to be given also to opportunity costs and opportunity losses. These are
the expected costs and value parameters of the building (when realized) when it is designed in the
alternative design procurement situations. These opportunity costs and losses should be included in
the consideration.
Ergo for the choice between in house design versus contracting out, three financial aspects have to
be considered:
- production costs (for producing the design).
- contracting costs (costs of the contracting).
- opportunity costs (costs which are unnecessary, and which could have been prevented).
Through their design-decisions designers directly and indirectly influence these three cost categories.
As being part of the production system which has to be paid for, their wages directly influence the
production costs of the building. Since designers decide on form and substance of the building, which
has to be manufactured they indirectly influence the production costs of the building. Furthermore,
by not making the right decisions the may cause opportunity costs and losses. The next paragraph
extends this notions.
5.1 The role of the designers
Designers play a crucial role in the building development process. They operate in between the client
and the manufacturer. Designers combine two specific sets of knowledge: (1) knowledge of the way
building characteristics support certain client-processes, and (2) knowledge of constructing buildings.
Each time they make a design they do it for a specific situation. The specific situation is described by
the client in a program of requirements and wishes, supplemented with constraints on time and
money2. For the designers this document identifies the design problem. During the design process
(intermediate) solutions are sought and the problem is restated (all in a cyclical manner). Alternative
solutions will be generated, and will be evaluated and selected regarding the stated program of
requirements (various authors).
Designers are professionals who can operate independent
2 referring to the project management literature which promotes the control parameters: Money,
Time, Quality, Organisation and Information [various authors].

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or who can operate together3. The main function of the designers is to translate client’s
requirements and wishes into a buildable design and (even more important) usable building. Ideally
designers communicate, on the one side with the client over his requirements, wishes and
constraints, and on the other side with constructors over practical solutions. As professionals they
diagnose the problem and select a program leading to solutions. It is expected that the solution will
be more optimal as the designer has more insight in the needs and wishes of the client and more
insight in the possibilities of construction technology. The further the knowledge base of the designer
stretches towards the client side as well as to the construction side, the more balanced and
appropriate the design and the building will be.
The designers determine several value and cost parameters which can be attributed to the building.
These parameters are:
- characteristics of the building, which effect:
• the costs of construction; the main part of the total project costs (often referred to as investment
costs).
• the potential use-ability and value of the building,
• the operational characteristics of the building, and thus the use-costs (operation, heating,
maintenance, security etc.).
- costs of the design: designers have to be paid, so their activities directly influence the costs of the
project. Since designers are part of an organisation, parts of the bureau costs may be attributed to
the operational costs of the “mother”-organization.
The first category contains the product costs (in literature often referred to as life cycle costs4). The
second category contains the production costs of the design. The categories are interrelated.
Ultimately category two costs flow into category one5. The relations between the several costs are
illustrated in the figure 1.
When we realize that design costs vary from 5 to 15 percent of the total project costs, and that the
total projectcosts, calculated as depreciation and interest, vary between 25 and 75 percent of life
cycle costs, then design
3 “professionals” as in Mintzberg [1979] and Bennett [1985].
4 see also Flanagan cs 1989.
5 category two “design costs’’ financed out of project budget, are part of the investment in the
building and will subsequently be part of the life cycle cost (as depreciation and interest).

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figure 1. designer’s influence on several cost parameters

costs amount from 2 up to 11 percent of the life cycle costs. The average value of the design cost
percentage is approximately 5 percent. So design contributes a small portion of the life cycle costs,
but it strongly influences the other 89 to 98 percent of the total costs.
Contracting out of design work may lead to lower design costs, but since design cost are a fraction
the project costs the savings can be no more than a fraction of a small portion of the total life cycle
costs.
Knowing that it seems justified to re-state the former posed question. The question must not be, if
and when contracting out of design activities leads to savings on design costs. More relevant is the
question if and when contracting out of design activities leads to better and/or cheaper objects. The
parameters to be taken into evaluation are the project costs, the use related costs, the life cycle
costs, and last but not least the use value of the object.
5.2 Management of the design process
If the design process is regarded as a production process it is obvious that management is
necessary. For executing effective management an explicit objective is a necessary

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condition6. In practice of governing the design activities the three financial objectives are usually
considered:
1. design production costs (minimize).
2. project costs (minimize investment).
3. life cycle costs (minimize).
The mentioned objectives are not complementary. During the design process trade-offs between the
objectives have to be made: for example initial investment vs. maintenance costs. Because the
objectives are semi-competitive, priority has to be stated7. Otherwise, due to the unclear objective,
effective steering of the design activities will be impossible.
When the design process is regarded as a decision making process, then it seems plausible that
different priorities regarding the financial objectives imply different decisions during the design
process, and thus lead to different designs and buildings. The priorities regarding financial objectives
are related with the organizational context of the design production team. If the design is done on a
lump sum basis by an independent design firm the main objective will be to minimize design
production costs. That is the only way to make a profit (especially in case of price competition).
So it seems plausible that different design procurement systems, lead to different priorities
concerning financial objectives, lead to different management of the design process, lead to different
designs and buildings (even when the designers are completely the same, the organizational context
forces their decision making process in a certain direction).
5.3 Comparison of design acquisition options
The analysis will be restricted to three principal modes of design acquisition. The former introduced
dichotomy in house versus contracting out is elaborated through dividing the last in contracting out
to an independent design firm, and contracting out to a construction firm. Thus the three
6 according to de Leeuw (1988) six conditions have to be fulfilled before effective steering of a
system is possible. The first condition concerns a stated objective; A model of the production
process is needed; Information about state of the system and information out of the environment
are needed; furthermore the management should have sufficient steering variability and
information processing capacity.
7 Ideally object efficiency should have the highest priority. Up till now seldom a financial utility
function is given in a building development project.

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modes taken into consideration are:
- acquisition of design in house.
- acquisition of design as design/construct scheme.
- acquisition of design from a independent design firm.
The key-question is:
• How do the three modes of design acquisition differ regarding the pursued financial objectives,
and how does the difference in priority declaration effect the cost and value parameters of the
building.
design acquisition in house
The design is made by a specialized department of the client organization. In house design
acquisition often leads to the traditional project organization. This is general contractor or separate
trades with ex-ante competition, contracts are preferably lump sum, otherwise unit rate, seldom cost
plus.
The internal design department has the potential for the best integration of use-, operation- and
maintenance data into the design. The intense relation with the client organization creates a strong
learning potential through feedback of user experience to the designers. This process results in a
strong knowledge base concerning the client/-use aspects of the building. The intense relation
guarantees client-designer communication. This facilitates the start of the design activities on the
basis of unstable and incomplete programs of requirements.
The advantages of this structure are: maximum flexibility during design, insight in the client
organization, and insight in the requirements and wishes of the client/users.
The mayor complaint about this structure is that the internal design department tends to
bureaucratize, tends to risk avoidance, and forces design details into the design which are “over-
done” and subsequently to expensive (hobby-horses). Through the absence of the market and the
inevitable survival, the designers experience little to no incentive to innovate.
In day to day practice the design department often is responsible for delivering a project on budget.
Other departments are charged to operate the building. This leads to emphasis on the project costs
objective for steering the design activities. But through the intensive relation with the client
organization to much emphasis on project costs at the costs of higher life cycle costs is often
anticipated.
Conclusion: Although the design efficiency is not as high as in the other types of design procurement,
the “inside” knowledge of internal design department, and the long term relation with the client/user
secures that use-value and use-costs are taken into consideration during design activities.

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design acquisition through design and construct
Design and construction are executed by one organization. The client formulates a program of
requirements, wishes and constraints. This document forms the basis for the design/-construct
contract. The contract can be obtained by negotiation as well as by competition. The pay structure
may be lump sum, unit price or a combination of both.
Characteristic of design construct is the clear division of responsibilities between client and
contractor. This structure facilitates design-construction communication. The advantage concerning
the product is the integration of construction technology knowledge into the design phase. The
designers may built a knowledge base on matters concerning as buildability. The potential
improvement of buildability may lead to substantial project costs savings.
As a consequence of the temporary character of client-contractor relation the designers have limited
knowledge concerning the client organization and the use aspects of the contemplated use-process.
This makes it more difficult to design a building for typical use aspects. Through the choice of
contract the client-designer relation is formalized. The client-designer communication on matters of
design is often difficult. Late or extra specifications often have substantial cost consequences. The
client has often no opportunities, or at high expenses, to influence the design activities. This causes
severe problems in complex projects which are carried out in a political context.
Through strong emphasis on price competition, project costs savings may be pursued at the risk of
more life cycle costs8. The designers are aware that their relation to the client is a temporary one.
They are more concerned in costs saving regarding their chance of getting the construction contract
then in savings regarding the expenses of the client.
Conclusion: Through the emphasis on project costs, design and construct offers an opportunity for
extending buildability efforts, and may lead to savings on project costs. But through the distance in
the relation between user/client and designers less use-value and/or more use costs may be the
consequences9.
8 This can partially be countered by extending the design/construct schema to an design/construct
and operate scheme. Although it is expected that this results in giving more consideration to use-
aspects of the building, this scheme up till now is rarely used.
9 When the life cycle costs consist mainly of capital costs, and a clear and complete requirements
program can be formulated, design/construct may be a considerable

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design acquisition from a independent design firm
The client drafts a program of requirements, wishes and constraints. The independent design firm
designs the building. A contractor constructs the building.
As far as the terminology of procurement systems concerns this scheme looks very much like the in
house design department situation. But there are three fundamental differences.
• Independent design firms combine limited client specific knowledge on use-aspects of the building
with limited specific knowledge on construction technology. In sense of their knowledge base they
are isolated. Furthermore they seldom receive feedback from the use phase. Also they often
exclude quality guarantees and they limit their liability, which transfers risks to other project
participants.
• Acquisition of design from an independent design firm implies introducing a third party into the
project. The clients has a contract with the designers and has a contract with the construction
contractors, but for the flow of work between design and construction no formal contract is
drafted. In case of imperfect or incomplete drawings often conflicts arise between client, designers
and contractor over who is to blame and who has to pay the damage.
• The design firm is often a commercial enterprise which has to make a profit. In order to do so it
will pursue savings on design production costs. The ultimate goal is to deliver more designs with
less costs made, in stead of delivering better designs (measured in terms of life cycle costs and
use-value)10.
There seem to be two typical situations for contracting out design to independent design firms. One
is when the own capacity of the client is temporary insufficient. The other is when the independent
design firm has specific expertise which the client lacks.
Conclusion: Independent design firms tend to emphasize design effort efficiency. They will settle for
a design which is acceptable for the client in stead of a design which is optimal for the client (in
terms of use-value and life cycle costs).
alternative for the traditional procurement systems.
10 Unless reputational effect are effects are considered. In that case they may anticipate that
delivering better designs, lead to a better reputation, which may result in obtaining more orders
and contracts, and subsequently profit and continuity in the long run.

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6 A tentative answer
Now back to our central problem. There are three fundamental modes in obtaining designs. Which is
best regarding savings on public expenses:
- acquisition of design in house.
- acquisition of design through design/construct.
- acquisition of design from independent design firms.
When the alternative design procurement modes are compared on the financial parameters as stated
in figure 1. The next table appears:
trad indp D&C
des.cost 0 – –
prj.cost 0 + –
use cost 0 + +
lifecycle 0 + –/+
value 0 – –
In this table the traditional mode, in house design is given as reference. The scores in the other
columns are relative to the traditional mode. Most important are the two bottom rows. They show
the effect of the design procurement system on life cycle costs and life cycle value.
The scores in the column of the independent design firm show no financial advantages compared to
the traditional way. The last column shows possible savings on project costs, and possible savings on
life cycle costs. In both the columns a reduction of value is expected. The table suggest, that when
the objective is to improve on the over-all efficiency, considerable thought should be given to the
consequences of contracting out of design activities before the design procurement systems is
selected.
The table gives some insight in the effects of contracting out design activities. But, as shown in the
previous paragraphs up till now there is no consistent theoretical framework which explains the
effects of different procurement systems on use and cost parameters of the building. This makes it
difficult to give strait answers in the matter of design procurement systems, so the best that can be
done is stating some tentative answers and indulge in some speculation.
Some tentative answers:
• In house design gives the client maximum flexibility for change orders during the design process,
and gives the client maximum possibility for integration of use related data in design. Although
design departments tend to be less efficient internally, they seem to offer the best opportunities
for controlling and steering on use value and life cycle costs of the building. Through the absence
of competition these design departments lack a

Page 52
innovation incentive.
• Design and construct offers the least in flexibility towards the client, but offers most concerning
buildability and project costs and time control. Design and construct makes it possible to integrate
specific construction technology knowledge and information into the design.
Maximum use of design and construct advantages requires clear, complete and stable programs of
requirements. Furthermore it must be possible for the client to measure and evaluate the life cycle
cost before construction actually starts.
When the portion of capital costs in the total of life cycle costs increases the favour for
design/construct increases.
• Independent design firms probably do best in design efficiency, but they tend to opt for proven
design. They have no direct short cut to information of the client or the construction contractor.
Given the intention to save on public expenses, there are no arguments supporting design
acquisition from independent design firms.
What may happen in the future regarding acquisition of design; A speculation on possible
developments (supposing saving on the public expenses is the aim):
• The public apparatus still is responsible for making their own designs. Especially when it is difficult
to make a clear, complete and stable program of requirements the best solutions seems to be the
traditional way; in house design.
The public design agencies have reorganized their internal process. They employ high educated
technicians and operate at a higher efficiency level than up till to day.
• But when it is possible to draft a clear and complete program of (measurable) requirements, and
their are expected little amendments on that program, design and construct may be a good
alternative (when possible then set up in competition).
• In case of complex buildings or building processes in complex (political) environment, the client
will take care of the design. In more standard situations design and construct offers good
opportunities.
• The independent design firms are hired more by the contractors than by the clients. The clients
hire people from independent design firms only for advise on specific technological matters and for
temporary enlargement of their own apparatus.
• Some cautious experiments will be executed with the most far reaching form of contracting out,
design/construct and operate.

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7 Conclusions
Looking back at the arguments used to support extending contracting out of design activities, we can
conclude that promoting contracting out exclusive on the basis of design production efficiency is
indeed defendable. Independent design firms probably have the best design efficiency. But, it is not
enough to look at design production efficiency only. Contracting out results in transaction costs. The
more difficult it is to draw up a contract and to live up to it, the more transaction costs have to be
expected. And last but not least delegating design activities to other organisations may result in
designs where opportunities to make them better, lower life cycle costs or even more value are set
aside.
Up till now there is no theoretical frame work which describes and predicts the effects of contracting
out design activities on the cost- and value parameters of the building in a valid way. In this paper I
presented some parameters which have to be regarded when contracting out of design is considered.
I made some tentative remarks, comparing three fundamental design procurement systems: in
house, through design/construct and from independent design firm. As it looks now there are no
strait answers to the question which is the best design procurement system. But it seems plausible
that either the design should be made in house, or the design should be contracted out in a design/-
construct scheme. It is expected that for contracting out design to independent design firms a higher
price has to be paid.
references
Bennett, J. (1985) construction project management, Butterworths, London.
Bokkes, W.Th.M. (1989) privatisering belicht vanuit de transactiekostenbenadering, Faculty
of public policy, University Twente, Enschede (NL).
Building EDC. thinking about building, Building EDC.
Eldin, N.N. (1988) constructability improvement of project designs, journal of construction
engineering and management, ASCE, vol. 114(4), pag.631–640.
Flanagan, R., Norman, G., Meadows, J. & Robinson, G. (1989) life cycle costing, BSP professional
books, Oxford.
Frankel, E.G. (1990) project management in engineering services and development,
Butterworths, London.
Franks, J. (1984) building procurement systems, Chartered institute of building; Ascot.
Haselhoff, F. (1988) het kan best anders in de bouw, Stichting Bouw Research publicatie no 166;
Rotterdam.
Leeuw, A.C.J. de. (1988) organisaties: management, analyse,

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ontwerp en verandering, Van Gorcum, Assen.

NEDO. (1974) before you build, nat. economic development office; London.
Rougvie, A. (1988) project evaluation and development, The Mitchell Publishing Company
Limited, London.
Singh, S. (1990) a rational procedure for the selection of appropriate procurement system, CIB
publication 132, CIB, Rotterdam.
Walker, A. (1984) project management in construction, BSP professional books, London.
Williamson, O.E. (1985) the economic institutions of capitalism (firms, markets, relational
contracting), The Free Press, New York.

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Planning and estimating design work—a review of British practice
D.J.Blackwood and S.Sarkar
Department of Civil Engineering, Surveying and Building, Dundee Institute of Technology, Dundee,
UK
A.D.F.Price
Department of Civil Engineering, University of Technology, Loughborough, UK
Abstract
This paper deals with the methods adopted by Architects and Engineers to plan and estimate the
cost of their professional services and reviews techniques used by design managers to predict and
plan the staff resources which are necessary for effective and efficient design work. The paper
considers the significant trend towards fee competition amongst design professionals shows that
there is a growing need for practices to more accurately assess and realistically programme their
staff resource requirements. The paper also considers the extent to which cost control systems
adopted by design managers are used to predict the cost of future design work and will describes a
comprehensive survey which is currently being undertaken to investigate these issues.
Keywords: Design Management, Planning, Estimating, Cost Control, Questionnaire Survey Design.
1 Introduction
In recent years the environment in which Architectural and Civil Engineering design organisations
operate has changed dramatically, partly as a result of changes within the construction industry.
There is evidence of a marked shift from traditional contractual arrangements towards, in particular,
design and build arrangements (RICS, 1991) which radically alters the role of the designer. Design
and build arrangements require a different range of design services from those required under
traditional arrangements; for example, the designer, being employed by the contractor, may be
required to produce fewer drawings and may not be required to be directly involved in contract
administration (Architects Journal, 1991a). Additionally, professional practices which are heavily
involved in design and build syndicates may, through unsuccessful bids, encounter an increased
amount of work which generates no revenue for the practice and expenditure on this work must be
absorbed elsewhere. Consequently, designers require methods other than recommended fee scales to
determine the value of their services.
The relationship between clients and their professional advisors has been fundamentally altered by
external pressures, with the philosophy behind scales of professional fees having been under

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review by the Monopolies and Mergers commission since 1967 (Rowdon et al, 1988), and vigorously
attacked by the Office Of Fair Trading (New Builder, 1991). Although the Restrictive Practices Bill
which would have banned fee scales was not included in the 1991 Queen’s speech, the industry has
in reality adopted fee competition (Architects Journal, 1991b) despite widespread opposition from the
construction industry design professions, (RIBA Journal, 1991 New Civil Engineer, 1991a).
The imposition of greater competition amongst design organisations has also occurred in the public
sector with the new Local Government Bill extending compulsory competitive tendering to
professional services. A further development affecting Civil Engineers was the privatisation of the
Water Industry in England and Wales which resulted in many Local Authority Agency agreements
being critically reviewed and re-defined.
However, the risks associated with allocating design work on a least cost basis alone appears to be
recognised in the recently produced ‘‘Guidelines for the Design of Government Buildings” (Delafons et
al 1991), which noted that “good design can achieve benefits in terms of operational efficiency and
quality of product that are much more significant than a marginal difference in fees”. Furthermore, in
November 1991 a consultation document was published by the Government which proposes a two
envelope system for compulsory competitive tenders for design work whereby financial bids would
only be accepted if they conformed to predetermined quality standards. (New Civil Engineer, 1991b).
The effects of increased fee competition, either through traditional contractual arrangements or
through design and build arrangements, against a background of the need for compliance with
predetermined quality criteria, will inevitably require a higher degree of accuracy in the selection of
necessary design resources and the estimation of design fees for fee bids than had been required
under recommended scales of fees. There can however be no certainty that design organisations’
planning and estimating systems, which have been developed over many years during which fees
were rigorously controlled by recommended scales, will be adequate for the new competitive
environment. It is therefore possible that the inherent quality of construction projects will be
influenced as much by the effectiveness of design managers’ planning and estimating systems as by
the technical expertise of the designers.
Consequently, a programme of research has been initiated by Dundee Institute of Technology in
conjunction with Loughborough University of Technology to identify, and consider the adequacy of,
existing practice with regard to planning design work and estimating design fees as adopted by
design managers in Architecture and Civil Engineering in the UK. This work is being supported
financially by Tayside Regional Council, Water Services Department. The remainder of this paper is
concerned with part of that research programme which constitutes a survey of planning and
estimating practice in the context of design work.

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2 Literature review of existing practice in planning and estimating design work
Literature on planning and estimating design work is scarce with the emphasis mainly on planning
and cost control functions rather than the estimating process. A study of Consulting Engineers in the
UK (Rowdon et al, 1989) suggested that “many professional practices earn substantially less than
they should, due in large measure to ineffective planning and control”, and furthermore “many
managers and supervisors do not plan because they consider their type of work does not lend itself
to planning” Rowdons paper suggested that a work-package approach should be adopted for design
work and that the planned design resources required for each package should be estimated, in
consultation with the staff involved in the design work. Significantly, no methodology was suggested
for estimating these resources. Another study of a multi-disciplinary practice (Davis et al, 1987)
proposed a simulation approach to determine the overall manpower requirements for such practices
but again omitted to describe the means of identifying the resources required for the various design
activities. Standard guide books for design professions, whilst again emphasising the planning and
cost control functions of design managers, contain only an outline of the estimating methods which
can be adopted by design managers. The RIBA Handbook of Professional Practice and Management
(RIBA, 1991b), Section A1.3 makes reference to the fact that architects should be competitive,
competent and adaptable, and Section A4.5 acknowledges that commissions for professional services
will be let through competitive bidding and negotiation. However, the only apparent reference to
assessing resources, which would be a necessary stage in developing a fee bid occurs in Section A8
of the Architects Job Book (RIBA 1988). The approach described would seem to relate to design
work let on a percentage of the value of the project, presumably on a fee scale basis. In the context
of fee competition, such an approach would not be desirable since design resources would then be
allocated to design work in response to the “market value” of the commission. A more appropriate
approach would be to determine the fee bid as a result of a careful consideration of the resources
which would be necessary to provide an adequate level of professional service.
Considering Civil Engineering practice, a guide on the management of design offices (Rutter et al,
1991) identified the following four methods of estimating design resources which were based on:
(i) projected income from the project;
(ii) historic cost data of schemes which are broadly similar;
(iii) process-related data expressed in terms of required design input for likely quantities of
reinforced concrete, weights of connections in relation to the tonnage of structural steelwork etc,
which could be taken as measures of the complexity of a project; and
(iv) the number of drawings required together with an estimate of the necessary man-hours to
produce a drawing.
However, this text did not deal specifically with the means of collection, manipulation and application
of data to produce cost

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estimates although limitations affecting the accuracy of data collected through time-sheets was
discussed.
3. Survey of existing practice in planning and estimating design work.
In order to gain more information on the techniques used by design managers and their frequency of
application, a comprehensive survey of UK design professionals is currently being undertaken. This
work has been divided into three stages:
(i) a series of interviews with practicing design managers in order to verify whether the approaches
suggested by the literature review are being adopted by design managers to plan and estimate
design work. This enabled an appropriate questionnaire to be developed;
(ii) a postal survey of suppliers and producers of software to determine the availability of
commercial software to assist design managers in these functions;
(iii) a postal questionnaire survey of three hundred design managers to test any conclusions drawn
as a result of the series of interviews.
3.1 Interviews with design managers.
Eight organisations, six of whom had previously expressed an interest in the research work were
selected as being representative of a range of construction industry design offices. The sample
comprised:
the head office of a large firm of consulting engineers (800 Staff);
three regional offices of consulting engineers (100 to 20 staff);
the head office of a multi-disciplinary design organisation (200 staff;
the regional office of a medium sized architectural practice (100 staff);
the office of a small architectural practice (20 staff);
a local authority water services department design section (80 staff)
An outline pilot questionnaire was developed consisting of;
(i) a section relating to the type of work carried out by that office;
(ii) a section relating to planning and estimating procedures;
(iii) a section relating to the influence of fee competition on planning and estimating procedures;
and
(iv) a section concerning quality management procedures and the relationship between this and
planning and estimating.
This questionnaire was sent to senior staff in the selected design organisations in advance of visits to
their offices where the senior staff were interviewed using a semi-structured interview based on the
pilot questionnaire. Whilst these interviews gave only an overview of current practice in design
management, a remarkably consistent approach to planning and estimating design work emerged. In
discussing the outline pilot questionnaire, a model of the planning and the planning and estimating
process was developed as shown in

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Figure 1 and this model was consistently adopted by all organisation. There are several features of
interest in this figure which are highlighted below.
It was found that the responsibility for developing an initial estimate of the design resource
requirements and the initial programme of design work was delegated entirely or partially to the
Engineer or Architect responsible for the design of project. It also transpired that a range of
techniques were adopted to estimate resources, and that these were similar to the techniques
identified in the literature review. The techniques mentioned during the interviews were:
a) to make a broad comparison with previous projects of a similar nature with the estimates of the
necessary man-hours of the various grades of engineer being derived by the engineer on the
basis of experience rather than from “hard data”;
b) to estimate, based on experience of projects of a similar nature, of the number of drawings
required for a project and the man-hours associated with a drawing;
c) to make a broad estimate of the cost of the completed works and, through consideration of
recommended scales of fees (with suitable adjustment), determine required man-hours of the
various grades;
d) to apply a central data-base containing data on the necessary resources for specific activities.
Only one of the organisations claimed to to have such a system but admitted that it was not
widely used and that completed projects were not always appraised and therefore the central
data-base was not always up to date and reliable.
All of the organisations interviewed used most of the above planning techniques at some time and
also at some stage of a projects development although technique (d) was considered to be
impracticable by some of the organisations.
The significance of the “commercial decision’’, which is an unavoidable element in the process of bid
formulation was discussed at length in relation to fee competition. All organisations currently consider
that the cost of design work is predominantly estimated as result of a broad estimate of the
necessary resources required to adequately design the project in a professional manner and that this
estimate is then compared to the recommended fee scales as a check on its validity. Furthermore,
the level of the fee bid would be considered against commercial criteria but this would not greatly
influence the bid. If an organisation considered they could not win a project and adequately resource
its design they would decline to submit a bid for the work.
The role of the organisations’ cost control system was discussed at length. It was generally agreed
that traditionally the cost control systems was the main management function since estimates had
been based on fee scales and resources could be selected to match the given fee. However, as a
result of the increasing trend toward fee competition, the organisations conceded that the data
currently used for cost control could be utilised further for estimating future projects. Some were
considering the development of more formal links between the cost control and estimating functions
but there was no

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Figure 1: Model of the planning, estimating and cost control sequence for design work
under competitive conditions.

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evidence of any such links currently in operation.
The concept of quality of design under fee competition arrangements was discussed and most
organisations considered that some form of Quality Assurance would be required to ensure that high
standards were maintained. Not surprisingly, all organisations considered that their current Quality
Assurance procedures were adequate but two firms had additionally sought and received third party
certification in accordance with BS5750. Most organisations did not readily perceive a link between
Quality Assurance system and their planning procedures although one company did develop a quality
plan for each project as part of the planning and estimating process.
In general, the interviews provided a useful overview of planning and estimating practice and at this
stage some preliminary conclusions can be drawn which are:
1. because of the widespread application of recommended fee scales, design managers were
traditionally able to work from a known fee to identify permissible resource requirements and
ensured profitability through the application of comprehensive cost control systems.
2. Planning and estimating of design work is still perceived by design professionals to be a “flying by
the seat of the pants” activity and consequently empirical methods not supported by specific data,
such as an estimate of the number of drawings or a broad comparison based on experience of similar
projects have been adopted to estimate design resources.
3. whilst most consultants recognised that, in the current competitive environment, a more rational
approach should be adopted to planning and estimating resources for design work and were
considering changes, none of the companies were actively reviewing their estimating systems.
4. The design managers agreed that the data in their cost control system was not used directly to
assist estimating but most considered that the information would be of value.
Clearly, in view of the size of the sample of design organisations, no definite conclusions could be
drawn at this stage and therefore two postal surveys were developed to investigate further the initial
conclusions.
3.2 Survey of software developers and suppliers
It was apparent at a recent construction industry computer exhibition that a number of software
companies were offering office management packages for professional practices. These included
modules which would deal with contract administration, accounts systems including the issue of fee
notices and sophisticated staff time recording and cost control. In addition, many companies offered
sophisticated estimating packages for contracting organisations but in contrast none of the companies
had an established system for estimating consultants fee bids. As software development is market-led
it can be concluded that the absence of fee estimating systems is indicative of a lack of demand
amongst professional practices for this facility which tends to confirm the preliminary conclusion
above. A survey of software developers and suppliers was therefore initiated and a list of 30
companies who claimed to provide management support software to

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the construction industry was compiled. A letter was sent to each company explaining the overall
objectives of the research project and requesting information on any appropriate software which
could be used by professional design organisations for planning and estimating design work fees. At
the time of writing, responses have been received from twelve companies and the breakdown of
software packages on offer was as follows:
4general planning packages;
3professional office management packages, each with cost control modules but excluding an
established fee estimating system;
4contractors estimating systems;
1contractors accounting system.
The response to date from software companies indicates that cost control software for design
practices is available but fee estimating software is not. This tends to support the preliminary
conclusion that design management is biased toward a cost control approach.
3.3 Questionnaire survey of design offices
In order to further test the initial conclusions drawn from the series of interviews, a questionnaire
survey of design offices has recently been sent out to obtain information from a larger and hence
more reliable sample. Response rates from postal surveys can be be as low as 25% (Oppenheim,
1986) but a previous survey by Dundee Institute of Technology (Jack, 1989) on contractors’ planning
systems demonstrated that if initial telephone contact was made prior to the dispatch of the survey a
response rate of 78% could be achieved. A total sample size of three hundred was adopted and
telephone contact was made with the majority of the recipients. The sample consists of:
100Architectural Practices;
100Consulting Civil Engineering Practices;
100Others, consisting of a combination of Building Services Engineers, Local Authority departments
and Water Companies.
The questionnaires were targeted at individual offices of firms rather than head offices since the
interviews suggested that individual offices would be responsible for their own fee estimating and
cost control. The offices were selected at random but firms with less than 20 employees were
excluded from the survey. The questionnaire was designed to further test the initial conclusions from
the interviews, and the layout generally corresponded to the outline pilot questionnaire. The first
section was designed to gain general information on the respondents office and areas of work. The
second section was designed to determine the frequency of use of the various planning, estimating
and cost control techniques which were identified during the interviews. Three questions in the
second section were specifically designed to establish if there was any formal link between design
managers’ cost control and estimating functions. The third section of the report deals the role of
quality assurance procedures in the planning and estimating process, and the final section seeks to
verify the accuracy of the planning and estimating process model as shown in Figure 1.
Unfortunately, data from the questionnaire survey is not available at the date of publication of this
paper but should be available at the conference.

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4. Conclusions and outline of future work.
Despite widespread opposition from design professions, the construction industry has adopted fee
competition for professional services. This move away from recommended scales is likely to increase
the need for the application of more accurate planning and estimating techniques by design
managers. Whilst final conclusions can not yet be drawn from the survey described in this paper,
initial indications are that design management is generally achieved through the application of cost
control systems which are intended to ensure that design resource input for a given project does not
exceed a pre-determined level. However, the survey suggests that an empirical approach based on
qualitative judgement is generally used in the determination of the required design resource input.
Furthermore, there is little evidence of the application of cost control data to predict the design
resource requirements for future design work.
This must raise doubts about the practicality of accurately assessing the necessary levels of design
resource input and therefore this gives rise to concern about the quality of design work in an
increasingly competitive environment, particulary in times of recession when fee bids are likely to be
particularly keen.
The survey described in this paper forms part of a larger programme of research on the suitability of
design management planning and estimating techniques in competitive conditions. Future work in
this programme aims to both measure the effectiveness of existing management techniques to
develop a planning and estimating system for design work based on data from a cost control system.
This work will be case study based, initially in one sector of the construction industry, namely the
design section of Tayside Regional Council, Water Services Department who are collaborating with
and sponsoring the research programme. It is anticipated that this work will be extended to other
sectors of the industry and the authors would welcome any comments and suggestions from the
Architectural Profession.

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5. References
Architects Journal (1991a) Design and build, Architects Journal, 3 July 1991, 51–53.
Architects Journal (1991b) Recession survey, Architects Journal, 24 July 1991, 9.
Davis C and Cochrane S R (1987) Optimisation of future manpower requirements in a multi-discipline
consultancy, Construction Management and Economics, 5, 45–56.
Delafons J and Jefferson B (1991), Guidelines for the design of Government buildings, HMSO,
London.
Jack W (1989) The extent of use of microcomputers in contractors planning, Unpublished BEng
(Hons) Project, Dundee Institute of Technology.
New Builder (1991) OFT renews war on professional scales, New Builder, 24 Jan 1991, 8.
New Civil Engineer (1991a) ACE gathers fee bid evidence, New Civil Engineer, 17 Oct 1991, 6.
New Civil Engineer (1991b) Quality beats cost as government standard, New Civil Engineer, 7 Nov
1991, 7.
Oppenhiem AN (1986) Questionnaire design and attitude measurement, Glover, London.
RIBA (1988) Architects job book: volume 15th edition, RIBA Publications, London.
RIBA (1991) Handbook of professional practice and management 5th edition, RIBA Publications Ltd,
London
RIBA Journal (1991) Practice, RIBA Journal, June 1991, 25.
RICS (1991) Quantity Surveying 2000, RICS, London.
Rowdon I J and Mansfield N R (1988) What price professionalism? Proc. Instn. Civ. Engs, Part 1, 84,
Feb., 85–93.
Rowdon I J and Mansfield N R (1989) Controlling design practice, Proc. Instn. Civ. Engs, Part 1, 86,
Feb, 189–205.
Rutter P A and Martin A S (1990) Management of design offices, Thomas Telford Ltd, London.

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The management of building flexibility in the design process: a design decision support
model for optimisation of building flexibility in relation to life-cycle costs
M.Prins
Eindhoven University of Technology, Eindhoven, The Netherlands
Abstract
Considering the long life span of buildings, it may be assumed that the usage will change as time
progresses. Different usages require different spatial and material properties of a building. Therefore,
buildings need a certain degree of flexibility. This paper describes a model of a building which makes
it possible to specify the flexibility of buildings in relation to their life-cycle costs. The model can be
used as a design decision support tool to assist in making decisions about flexibility and life-cycle
costs in the different stages of design processes for new buildings and also in making decisions about
the rehabilitation of buildings. The model supports decisions about the number and kinds of building
components, their connections, and their life spans. A case-study is used to demonstrate the
possibilities for practical implementation.
Keywords: Flexibility, Cost Control, Building Economics, Life-Cycle Costing, Financial Economical
Optimisation, Life Span of Building Components, Design Decision Support Model, Design
Methodology.
1 Introduction
1.1 Flexibility
In this context, flexibility is the capacity of a building object to respond to certain events by means of
functional, spatial or material changes. These are events that one can expect to occur, but to what
extent and when is not sure (Brinkman, 1989; Prins, 1989).
In order to specify the demand for building flexibility, a flexibility scenario is required This flexibility
scenario will be used to make prognoses about social, economical and cultural events that one
expects will cause changes in the use of a building. In the case of a specific building, a flexibility
scenario can specify a flexibility demand.
The flexibility demand contains a specification of the required functional, spatial and material changes
of a building during its life span at certain moments, according to the prognoses in the flexibility
scenario, and within the limits of a specified budget The flexiblity demand is articulated as a set of
physical design variants.
The flexibility supply of a building is determined by physical and financial aspects. Flexibility supply
and flexibility demand have to be fitted together, within the context of the flexibility scenario.
1.2 Changes
According to systems theory, a building may be considered as a collection of interrelated elements.
The subject of this study is the flexibility to be realised by changing the material elements of a
building.
Thus, multifunctionality as a specific form of flexiblity is not discussed here. The

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diversity in the supply of building types with its capacity to respond to a changing demand on the
building market is also omitted from this discussion (Tempelmans Plat 1991).
All types of flexibility can be expressed by combinations of six types of change of physical elements
within a building:
- A building element, after its installation in the building, undergoes no further changes during the
whole life span;
- A building element is due to one or more equivalent substitutions;
- A building element is due to one or more non-equivalent substitutions;
- A building element is replaced once or more often within the building;
- A new building element is added;
- A building element is removed without replacement.
It is assumed that the degree of flexibility of a building depends on the number of building elements
to be distinguished The more elements present, the higher the degree of flexibility.
Another important factor determining the degree of flexibility is how these elements are technically
connected together. The more effort is required to disconnect elements from the building, the lower
the degree of flexibility.
A third factor which influences building flexibility is the life span of the elements which compose the
building. The longer the life span of the elements, the less moments there are to adapt the building
to a changing context, without losing money by demolishing elements which are not yet written off.
1.3 Building economics
The flexibility demand of a building is formulated in such a way that every building element has to be
specified by the given types of changes, occurring during the life span of the building.
As a building is composed of parts with different life spans, it is incorrect to depreciate the building
as whole. Each element has its own depreciation period (Tempelmans Plat, 1982). All costs which
have to be made for the investment in a building element, its maintenance, its assembly, for its
removal and also all the costs for repairing the surrounding elements where relevant, have to be
calculated as costs of the building element It is important to distinguish maintenance costs from
costs for replacement and other kind of changes (Bon, 1989). In an ideal situation, depreciation
periods are divided by decision moments.
In order to calculate building costs over the life span of the building, all the costs have to be
allocated to relevant elements and decision periods. An element has to be written off (depreciated)
as soon as it no longer supplies the services demanded of it
Since the appearance of the building will change, it is necessary to relate the costs calculated to the
actual form. The building has to be used (rented) on a monthly or yearly basis, which means that
the costs have to be known over the same period. Therefore, calculations have to be made on the
basis of the annuity calculation. By discounting and accumulating all expenditures of all building
elements during their life span, it is possible to acquire an insight into the real total period costs.
This type of cost calculation is known as “costs in use analysis” or “life-cycle costing” (Flanagan,
1989; Stone, 1975).
1.4 Designing flexible buildings
A designer who wants to offer a building with sufficient flexibility supply, according to a specific
flexibility demand, has to make decisions about the number, kind, life span and use of building
elements and about the relationships between them. If the designer is also given the constraint that
the building must have minimum life-cycle costs, the problem

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becomes even more complicated. In this case, solutions have to be found about, for instance, the
following types of questions:
- Will an investment in the life span quality of an element yield lower life-cycle costs?
- Will another composition of elements (for instance some large or several small elements) result in
lower life-cycle costs?
- What extent of investments should be made in lowering assembling and demolishing costs of a
building element, considering the expected frequency of change?
- What is the optimum choice between investment costs and maintenance costs for a certain building
element?
- If the expected price increase in labour is greater than the price increase for material (or vice
versa), which combination of technical quality and life span quality of an element will give the
lowest life-cycle costs, considering me maintenance costs and me expected frequency of change?
The following paragraphs introduce a building model and a design model which make it possible to
facilitate all these types of questions in the design process.
2. Complex Integral—Building—Object Model (CIOM)
2.1 Order systems
A building object is a system comprising several elements, interrelated in a specific way.
An object analysed with just one specific purpose in mind and described in elements and relations
between them, according to Domain Theory (Trum, 1990; Bax, 1979) may be considered an order
system. Orders are general categories of material and immaterial means for the achievement of
goals and can be seen as a conceptual, purposeful ordering of reality, within which partial plans can
be made. These plans are to be integrated in a total plan and are referred to as order systems.
Sub-systems are hierarchically ordered elements of an order system, distinguished when an object is
analysed within a certain order. The ordering in sub-systems (e.g. the number of sub-systems) is
specific for every order system.
For the purpose of studying flexibility, four orders are distinguished in the building sector: a social
order, a time order, a use order and a technical order. As spatial material or physical elements are
always concerned in a building object, it is adequate to introduce composed order systems: a
physical-social order sytem, a physical-time order system, etc.
Each order system is set of elements whose simultaneous change can be initiated by a common
cause; the nature of the cause, a decision or action, determines the name of the system. Hence, in a
physical-social order system the cause of the change is of a social nature: e.g. a decision about the
division of responsibilities over parts of the building. The four order systems are hierarchically ordered
in aggregation levels: a lower level- (e.g. physical-technical) order system can be aggregated to a
higher level (e.g. physical-use) order system, etc. This means that decisions made on the use order
system are based on the technical order system, etc. Thus, this ordering in levels is relevant for the
phases in a decision making or design process.
In the case of a dwelling the following order systems are described. (Prins, 1991):
- Physical-social order system: The division of a building into elements which are fully paid by
the inhabitant and for which he is held responsible, and into elements about which the community
(city or town council etc.) has responsibility (support and infill structure according to the original
definitions by Habraken, 1985) are characteristic for this order system. Within this order system,
categories of elements can be discerned according to the categories of responsibility. This
distinction of

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elements is especially suited for dwellings. With, for instance, an office building a distinction of an
unchangeable long-term structure and a changeable short-term structure is meaningful.
- Physical-time order system: elements of a building within this order are categorised according
to the time they are expected to be of economic use.
- Physical-use order system: elements of a building within this order are categorised according
to specific use.
- Physical-technical order system: elements of a building within this order are categorised
according to how they are technically connected, and the technical life span.
2.2 Building object model
Thus, a building is considered to be a composition of order systems. (Because all these order
systems are physical in nature, this adjective will no longer be used in the name of the systems).
Order systems are complex within themselves. Figure 1 shows a graphical representation of a
theoretical analysis of an object, described as a set of order systems; the highest level order system
consists of five sub-systems.
Figure 1: Scheme of an order system.

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In this figure, the box-like base-line on the left represents the object as a whole in all its complexity.
The rectangles represent the various sub-systems. The lines between the rectangles are all the
theoretically possible relations between the sub-systems.
The short lines between the rectangles determine the hierarchy within the order system. These types
of relations are of a conceptual nature. The other lines represent the operational relations. These
types of relations can be divided into top-down and bottom-up relations. Operational relations are of
a causal nature. Most of the top-down and bottom-up relations, as far as they have relevance, are
tied to how the sub-systems are technically connected in lower level order systems. These relations
are not discussed in this paper.
The four layers in the scheme represent the four order systems. Together, they compose the building
object model in terms of flexibility. The scheme shows all the theoretically possible relations. Analysis
of a practical situation always results in a selection according to the properties of the object The
scheme may also be used to describe a set of requirements as a starting-point in a design process
(Prins, 1989).
2.3 A building as a composition of order systems
The composition of a building in terms of order systems is expressed according to the rules
governing the aggregation process, a process restricted by the way the order-systems or levels are
matched. There are three options for this matching: ‘full-unity’, ‘unity’ and ‘woven’. Figure 2 shows
an example of these three matching types for two order systems.
Figure 2: Matching between sub-systems for two order systems.

When this match is characterised by ‘full unity’, a set of physical elements (sub-systems) is defined
which is relevant (is equivalent) to all the distinguished order systems
When the match between order systems is characterised by ‘unity’, a sub-system defined in one
order system corresponds with a number of sub-systems in the other order systems. In this situation
the description of an object in order systems corresponds with descriptions of this object at several
aggregation levels.
When the match between order systems is characterised by ‘woven’, sub-systems defined in one
order system do not correspond with the sub-systems defined in the other order systems.
Analysing reality almost always yields situations of the woven type. With design processes however,
the other matching types are more convenient In order to structure design processes, order systems
are made to correspond with aggregation levels. Aggregation levels in turn are made to correspond
with phases in the design processes.
The model for an integral description of a building object as composed of elements (sub-systems) in
all relevant orders is called a ‘‘Complex Integral (building) Object Model’ (CIOM). According to this
model, the integral description of the building itself is called a “Complex Integral (building) Object
System” (CIOS).
In order to make the potentials of an object system operational a new notion is introduced: chains.

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3 Chains
3.1 A building as a tree structure of chains
A chain is a set of physical elements of an object, changing at the same moment, according to a
specific flexibility demand A chain is also defined as a set of sub-systems within an order system (see
fig. 1 and 2), because these changes can be initiated by the same cause (happening at the same
moment).
Chains are discerned according to the order system to which they belong and receive the name of
that system. The content of a chain on the adjacent lower level of a CIOS consists unequivocally of
chains again, when the match between order systems is characterised by “unity” or “full unity”. Thus,
a chain in a social order system is an agglomeration of chains in the time order system, and so on.
Parts of chains are sometimes referred as units; they are always defined on a level lower than that of
the chain itself. The life span of a chain is determined by the shortest life span of its constituing
units.
Figure 3 gives a scheme of a CIOS which corresponds to figure 2. In this scheme, the composition of
an object is shown, represented in a tree structure, in which two order systems are discerned. The
boxes in the scheme represent chains or subsystems.
Figure 3: Scheme of a CIOS as a tree structure of chains.

3.2 Types of chains
According to the CIOM defined in paragraph 2, four types of chains can be defined: ‘social chains’,
‘time chains’, ‘use chains’ and ‘technical chains’. Short descriptions of the four types of chains are
given below:
- Technical Chain: The coherence of the chain is determined by the technically inseparable mutual
connection of its elements. An inseparable technical connection means that, when one part is
disconnected, the remaining parts are technically not repairable, or that the required financial
investment to disconnect a part and repair the remaining parts, is higher than the economic value
of the whole. The units of technical chains are components, which are technically inseparable
elements that arrive on the building site as a whole; they are units of production. It can be
concluded that the technical chain is the smallest chainging part in an object.
- Use Chain: The coherence of the elements is determined by its use and by the technical chains
which are part of the use chain. As a technical chain is the smallest element of change, a use chain
must be composed of at least one technical chain.
- Time Chain: The coherence of the chain is determined by its life span and by the use chains and
technical chains which are part of the time chain.

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- Social Chain: The coherence of the chain is determined by categories of responsibility, its life span
and by the time chains, use chains and technical chains which are part of the social chain.
According to the pre-assumptions of this study, only two social chains can be distinguished, namely
infill and support structure. For the same reason, the infill elements are the only elements which
change within reasonable periods of time. Thus, the division into infill and support elements
determines the border lines for this research.
4 Calculation Model for period costs (CMPC)
4.1 Calculating a CIOS
Given a required flexibility demand (derived from a flexibility scenario), in the building model (CIOM)
presented, the main entrances for optimising the life-cycle costs are formed by the number, life span
and kind of elements of which a building is composed, and the technical connections between them.
In order to calculate the life-cycle costs of a building in a scenario, all cost data of a building has to
be allocated to sub-systems of the CIOS and to the relevant decision periods. This means that the
input for life-cycle cost calculations is structured according to the CIOM. As a consequence, the
calculation model has the same structure as the CIOM
4.2 Levels in the calculation model
The smallest element of change in a CIOS is defined as a technical chain. Thus, in the calculation
model this technical chain is the lowest input level of cost data.
In the calculation model, four levels of aggregation of input and output are possible, according to the
four types of chains defined in paragraph 3.2. However, in a design process, only real cost data on
the technical level is available at this moment
In the calculation model, it is assumed that all levels can be expressed in terms of mutual
aggregation. Thus there must be at least ‘unity’ for the match between the order systems. In the
case of ‘woven’ matches, problems would show up with the division of costs. This problem often
occurs when modelling existing buildings according to the calculation model. In practice, this
situation always means that, with a change of a specific chain, parts of other chains which are not
yet at the end of their life span and are probably also not written off, have to be demolished. This
always causes loss of capital.
4.3 Input and output data in the calculation model
Although energy and other types of running costs can initiate a change process, they do not
influence fee flexibility, and are therefore not implemented in the model. For the same reason, all
types of government taxes, insurances etc. are not implemented. Also, price developments are not
taken into account; they do not influence decisions because the cost-benefit relation is assumed to
remain constant and, in most cases, no valid decision calculations for total average period costs can
be made with this parameter.
If the cost data of technical chains is specified, the costs for all the other chains and for the building
as a whole can simply be calculated by accumulation. Higher level input is possible when cost data
on these levels is generated by previous calculations, using the model. The input of the model on the
technical chain level consists of (Prins, 1990):
- Life span of the building as a whole and of its various elements, the chains according to CIOM;
- Investment in the chains, composed of the costs of materials, equipment and of labour at the times
of investment;
- Maintenance expenditures of the chains;
- Demolishing expenditures and residual value of the chains.

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The output of the calculation model gives the total average period costs for the building. Design
variants, modelled as a CIOS, meeting the same flexiblity demand and the same quality criteria can
be compared The variant with the lowest total average period costs is the optimum one. The output
of the model is always generated on the highest (social chain) level. Additional output can be
generated on all other CIOM levels. Also, real period costs can be generated on all levels.
5 Flexibility and costs in the design process
5.1 General remarks
The main aim of the presented theory is to enable the design of an instrumental model which can
support decisions at different stages in a design process, concerning life-cycle costs in relation to
flexibility demand. In design processes, the flexibility demand has to be derived from a flexibility
scenario. Each specific flexibility demand can be worked out in design variants for the various
moments during the life span of a building, which express the change of its physical elements. For a
building modelled as a CIOS, these elements can be defined as chains. The flexibility supply is
determined by the properties of the building and can also be expressed in chains.
Decisions on design variants can be taken on all aggregation levels of the CIOS. In each case, one
simply has to calculate the average total periodical costs of a variant and compare these to another
variant The cheapest variant is the best in terms of costs and flexibility. By analysing how the costs
accumulate on the lower CIOS levels, the designer can try to find inducements for lowering the costs
in a new design variant.
In the research project, the calculation model described in paragraph 4 is developed as a user-
friendly, fully interactive and menu-guided computer program called ‘Calculation Model Period Costs’
(CMPC).
5.2 Common design strategy
The first thing that has to be done before one can starts designing a flexible building is to formulate
a relevant flexibility scenario.
After the flexibility scenario is written, one can choose for a bottom-up or a top-down strategy
(Tempelmans Plat & Prins, 1990). A mix of these two strategies is also possible.
In the case of a bottom-up process, the financial input of the CMPC exists of real estimated
expenditures of the technical chains.
In the case of a top-down process, the financial input of the CMPC exists of experienced rated input
for a higher level chain, as generated by the CMPC in previous design processes. The more the CMPC
is used in the design process, the more data is generated and the more data is available for the
other CIOM levels.
We now have a common strategy for a design process of a CIOS in which an attempt is made to
optimise building flexibility, and to minimise life-cycle costs, with the aid of the CMPC. The ten steps
of this common strategy are:
1 Write a flexibility scenario in which assumptions are made about all relevant social, political and
cultural events which may influence the use of the building. Write also a financial-economical
scenario in which the expected developments of the relevant parameters are specified.
2 Design a spatial variant which is the basis for the further design of the building.
3 Choose a CIOM level for further design.
4 Write the flexibility demand for the chosen level and specify the chains, their measure, place,
quality and connections.
5 Estimate the expenditures.
6 Calculate the costs with the aid of the CMPC.

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7 Generate CMPC output on all relevant CIOM levels and decide whether the variant is acceptable
or not, depending on the value of the total average period costs.
8 If the variant fits the norm, then decide whether how to continue the design process or stop. If
the variant does not fit the norm, then analyse how the costs accumulate and try to find clues
for lowering the costs in a new variant
9 Proceed to the next level, generate a new variant and repeat steps 1 to 9.
10 Select the collection of design variants of chains, which together have the lowest total average
period costs.
Figure 4 depicts this common design strategy in flow chart form.
This procedure can be carried out both in the design process for a new building and for existing
buildings, and is valid for the building as a whole as well as for its composing elements. The
repeated use of this procedure, in combination with the aggregation of cost data to the higher levels
in the CIOM, delivers general cost data on these levels. This data can be applied in procedures which
are restricted to the higher levels giving a quick insight into the costs related to flexibility in the early
stages of the design process.
6 Case-study
6.1 The object of study and the methodology
The CIOM and the CMPC have been successfully implemented in two case-studies. The subject of the
first case-study was a dwelling project in the Netherlands, in which the complete infill structure was
replaced by a new flexible one in 1991.
Both infill structures, the original and the new one, are seen as variants in a design process. Total
exploitation period is assumed to be 45 years, with a discount rate of 5%. Both infill structures were
modelled as a CIOS and the expenditure data was estimated on the level of the technical chain,
using the commercial Dutch cost data sheets. It was assumed was that only equivalent replacement
would take place, initiated by technical obsolescence.
The subject of the second case-study was a new dwelling situation, for which three variants were
worked out for the realisation of an inside wall in terms of its material and connections. These three
situations were: a wall made of brickwork, a flexible system wall (“Metalstud”), and a wall made of
gasconcrete. The flexibility demand was specified as: a wall in year 0, a removal without replacement
in year 15 and reconstruction of this wall again in year 30. Total exploitation period is assumed to be
45 years, with a discount rate of 5%.
6.2 Results
Case 1.
The initial investment for both infill packages was estimated to be approximately 40,500 Dutch
guilders (approx. US $ 20,250 dollar).
The total average yearly period costs for the old infill were calculated at 2,647 guilders. The total
average yearly period costs for the new infill were calculated at 2,423 guilders.
An analysis on the level of the life span chains makes clear that this difference can partly be
explained by the fact that the investment in the short-term structure (life span less than 20 years) is
lower in the case of the new infill structure. Analysis on the level of the technical chain shows that
labour costs for replacements are also lower in the case of the new infill structure.
Case 2.
By analysing the cost data of the three inside walls, there appaered to be surprisingly only very small
differences in the total average period costs. Due to the relative high initial

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Figure 4: Standard design strategy for designing a flexible building with minimum life-cycle costs with
the aid of the CMPC

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investment, the system wall appeared to be the most expensive at 119.02 guilders yearly. The brick
wall had total yearly average period costs of 109.35 guilders, and for the wall of gasconcrete this
was 108.73 guilders. The initial investment for both of these walls was almost the same. The very
small differences can be explained by the low frequency of change. As only two change moments
were modelled, and because these moments were both in the far future (15 and 30 years), the
differences in demolishing costs and labour costs for the two other flexible solutions, compared to
the brick wall, do not result in really lower period costs.
6.3 Conclusions
The theory of the CIOM and CMPC appeared to be practically applicable for both a full infill structure
and for isolated building elements, and could be used as design decision support tool in the design
process.
Modelling a building dynamically with only replacements according to technical obsolescence, without
using a flexibility scenario gives in itself a good insight in the life-cycle costs of building variants and
their flexibility.
The level concept of the CIOM gives a sufficient insight into the breakdown of the life-cycle costs,
and can be seen as a good tool for generating ideas for new, cheaper design variants. Due to the
level concept of the CIOM in all phases of the design process, decisions can be made, based on real
estimated cost data, calculated to according life-cycle costs, with relatively little effort from the
designer or cost expert for analysing, compared to the existing models.
Acknowledgements
This research is supported by the Netherlands Technology Foundation (STW).
References
Bax, M.F.Th. (1979) Domain Theory, Open House International, vol.4 no. 2.
Bon, R. (1989) Building as an Economic Process. Prentice Hall, Englewood Cliffs, New Jersey.
Brinkman, S. (1989) Flexibiliteit; beheersprocessen en proces beheersing, (Flexibility;
Controlprocesses and Process Control), dissertation Eindhoven University of Technology,
Eindhoven.
Flanagan, R., Norman, G., Meadows, J., Robinson, G. (1989) Life-Cycle Costing, Theory and
Practice. Blackwell Scientific Publications Ltd, Oxford.
Habraken, N.J. (1985) Supports—an alternative to mass housing. Architectural Press, London.
Prins, M., Bax, M.F.Th. (1991) An Integral Relational Design Decision Support Model to Optimize the
Flexibility of Buildings in Relation to Life- Cycle Costs, in Organization and Management in
Construction (eds. Zaja, M.), Gradevinski Institute, Zagreb.
Prins, M., Tempelmans Plat. H. (1990) A Design Decision Support System Based on Different Lives of
Components, in Proceedings CIB Conference on Building Economics and Construction
Management (eds. Ireland, V.), Sydney University of Technology , Sydney.
Prins, M. (1989) Decision making and Flexibility; an Integral Design Decision Support System,
Proceedings CARDO Symposium Quality in the Built Environment (eds. Wilkinson, N.) Open
house International, New Castle Upon Tyne.

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Stone, P.A. (1975) Building Design Evaluation, Costs-in-Use. E. & F.N. Spon Ltd., London.
Tempelmans Plat, H., Prins, M. (1991) Reverse Planning of the Built Environment, Open House
International, vol. 16 no. 1.
Tempelmans Plat, H. (1991) Cost-optimal flexibility of housing supply, in Management, Quality
and Economics in Building (eds. Belzega, A., Brandon, P.) E & F.N. Spon Ltd., London.
Tempelmans Plat, H. (1982) Micro Economic Analysis of the Process of Design, Construction and
Operation of Houses, IABSE Journal J-14/82, Zurich.
Trum, H.M.G.J., Bax, M.F.Th. (1990) The applicability of domain theory in technological design, in
Design in Engineering Educating (eds McCabe, V.J.), Dublin.

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Planning building design work
E.J.Coles
Department of Architectural Services, West Lothian District Council, Scotland, UK
Abstract
This paper discusses an approach to planning and monitoring the work of building design
consultants.
Various factors may increase or decrease the need for the close planning and control of work. Design
team leaders must be involved in planning, but the majority of design tasks need not be planned
formally.
Measures of progress and efficiency are discussed, since these can help managers to decide how to
use the time and man-hours which remain to be spent on a project. Progress cannot easily be
assessed by drawn output. Information inputs, key design decisions and the coordination of design
information should also be taken into account.
Where planning and control systems are introduced or modified, a planner and data analyst might be
needed, together with a “champion” who ensures that everyone contributes effectively to setting up
and using the system.
Keywords: Building, Control, Design, Monitoring, Planning.
1 Introduction
Clients, design practices and construction companies are presently seeking closer control over design
work, to ensure that information produced is adapted to the needs of construction and is timely,
coordinated and provided as cheaply as possible. However, the planning and control techniques
which are applied to construction may be too rigid for design work, where the definition of tasks,
their sequence and the time required to do them, can all be very fluid.
This paper describes how the traditional approach taken by design professionals to planning and
expediting their work, can be reconciled with the techniques of work-breakdown, network analysis
and work-measurement. It condenses material prepared by the author for the Chartered Institute of
Building and the Universities of Reading and Bath.

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2 Control of Progress
2.1 Self Regulation
The greatest value of planning is probably not in the close control it offers to practice and project
managers, but in the way it enables teams to get on with their work in a coordinated way, with a
minimum of outside intervention. By asking team leaders to consider what has to be done, by whom
and in what sequence:
a) agreement can be reached which commits everyone to a timetable,
b) designers understand when and how others are dependent on their work,
c) problems which threaten the programme are more likely to be recognised and dealt with “on the
shop floor’’.
2.2 Management Information
However competent the design team may be, clients, practice managers and project managers have
legitimate reasons to seek information about progress. If work is not proceeding productively and
efficiently, they must take action.
The degree of detail needed to plan a design project and report progress can vary according to
several factors, as below.
2.3 Complexity and unfamiliarity
It is more difficult to plan complex and unfamiliar work and devise accurate measures of progress.
Work can also be harder to control where the client or project organisations are large or complicated.
In general, the more difficult work is to plan, the more important that the work content, sequence,
roles and responsibilities should be discussed in detail and close control of work exercised
subsequently.
2.4 Haste
If design time is compressed, especially if fee bidding is low or there is an overlap with construction
operations, then it is important to be sure that work is done in the right sequence (without rework)
and at the right time (so that no-one waits for information).
2.5 Risk
Competition and fee bids increase the risks of (a) financial loss for design practices and (b) shortfalls
in the quality of the buildings produced. The propensity to ignore or control risk may be influenced
by the organisation culture: whether it is accustomed to running as a well-oiled machine, or happier
as “organised chaos”.

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3 Mechanisms of Planning and Control
3.1 The Work Planning Process
While simple design jobs can literally be planned on the back of an envelope, sophisticated
computing is commonly used on large and complex projects, with a team of people to gather and
analyse data. At either extreme, there is an underlying process of (a) work breakdown, (b)
formulating the duration and sequence of activities and (c) defining how to measure and report
progress.
3.2 Work Breakdown
The complexity of buildings requires that design work is divided “horizontally” between specialists,
“temporally” between design stages and “vertically” into the detailed tasks of design development.
The vertical division of work depends on the actual design which emerges, how it is documented and
the need for specialised advice. This dimension of the breakdown therefore has to be reconsidered at
each stage of the project.
3.3 Sequence of Activities
During design work, information is exchanged between the designers, the client and others, in a
complex pattern of formal and informal communication. The detail of task definitions and sequences
tends to follow rather than dictate this pattern. Clearly, work can proceed faster if design options are
developed and evaluated simultaneously, rather than sequentially, but this necessitates strict control
over the “status” of designs, i.e. it should be clear whether they are merely ideas or to be the basis
of work by others.
3.4 Duration of Activities
Schedules of drawings have been used for a long time to estimate the man-hours needed for the
detail design and production drawing stages. However, production drawings and specifications
represent only the output of design work; more than half of a design process is spent gathering
information, developing preliminary designs and verifying the consistency of work (at all stages). In
scheduling the entire process, this ‘‘silent majority” of the workload must be taken into account.
3.5 Progress Monitoring Points
By adding up the amount of work done on each defined task (research, sketching, calculating,
drawing, specifying, checking etc.), an overview of progress can be obtained. To avoid false claims,
careful attention must be given to the quality of coordination between drawings, specifications and
the cost plan, and the tasks that are not mentioned on the work schedule.

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Before there is significant output, other features of the design process can be used to measure
progress. At the beginning of each stage, when the team discuss their programme, each discipline
should describe the information they require from others and a schedule of dates should be agreed.
In some cases, it may be relevant to include tasks in the planning such as agreeing: the format of
drawings, computing protocols, quality management procedures and so forth.
3.6 Base Plans
Because the detailed analysis of tasks can only be done stage by stage, initial project programmes
appears only in outline. This “master plan” may need to be updated as work progresses, but the
original version, or “base plan” is retained for comparison.
3.7 Network Analysis
Attention should focus on chains of activity that threaten to exceed the time allowed for any one
stage. Either the duration or the dependency of tasks on this “critical path” can be adjusted to reduce
its length. Planning software offers the advantages of quick calculation and clear graphical
presentation. This assists discussions about the need for resources and simultaneous working.
Sometimes, amendments to the actual design are appropriate, for example, adjustable fixing systems
enable structural design work to proceed independently from the design of services and finishes.
3.8 Presentation of Work Planning
Staff will only work to a plan which is easy to understand and bears a clear relationship with what is
happening. Excessive detail is confusing and rapidly gets out of date. It is therefore important to pin
up clear, simple plans where people can scribble amendments on them.
4 Progress
4.1 Key Information
Managers need to ensure that enough time, resources and enthusiasm remain to complete a job.
Timesheet systems have long been used by practice managers to calculate how much of their fee
has been consumed and how much remains. While these systems could often benefit from being
speeded up, the difficult part of monitoring is to produce clear and succinct measurements of
progress and productivity.

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4.2 Productivity
This can be expressed as:
(1)
Where the “value’’ is a percentage of the work in a project or stage of the project. Separate figures
can be produced for each discipline in the design team (as described in 3.5, above).
4.3 Efficiency
This can be expressed as:
(2)
Again, clear definitions of tasks are the basis of measurement, with due allowance for unplanned
work.
4.4 The Need for Corrective Action
This can be highlighted by comparing:
a) productivity so far, against the productivity required to complete outstanding work within the time
remaining;
b) the efficiency of a team so far, against the efficiency required to complete the job within the
planned man-hours.
These calculations are similar. Taking (b), the efficiency needed to complete within budget is:
(3)
If the prevailing efficiency is poor, e.g. 1.1, the efficiency needed to complete the design work within
budget will be less than unity, say 0.9. In this case, the required change in efficiency is
1.1/0.9=1.22, i.e. a 22% higher output. Practical responses to this might include closer supervision,
unpaid overtime or putting more productive individuals into the team.
5 Setting up a Planning and Monitoring System
5.1 Impediments
Obstacles to setting up a planning and monitoring system include:
a) the common belief that design work cannot be planned;
b) the belief that designers are impeded by factors beyond their control;

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c) resistance by designers (especially architects) to having their working methods forced into a
mould which inhibits creativity;
d) the “mystique” of network analysis;
e) the fear that data collection and analysis will consume more time and energy than it is worth.
5.2 Counter Arguments
Answers such as the following can be advanced:
a) Insist that each design stage is signed off, and staff will find that they have no alternative but to
plan ahead.
b) Progress monitoring shows clients and managers where designers are in fact delayed by others,
and they can do something about it.
c) If designers are helped to plan work for themselves, they are free to maximise the time available
for creativity.
d) Network analysis only tests logic by calculation, the theory is simple to pick up. While software
gets more sophisticated, it is also becoming more user-friendly.
e) Planning helps to avoid time-consuming problems and monitoring brings timely help from
managers when it is needed.
5.3 Time for Change
Project managers are skilled at imposing planning and monitoring systems very quickly. Where
planning systems are introduced “internally” by a practice, many months may be needed to define
roles and set up a trial system, before applying it generally.
5.4 New Roles
The introduction of a work planning and monitoring system, or amendments to an existing system
may requires:
a) A champion:
The staff all the design disciplines, who are often in different companies, may need to be
encouraged and cajoled into spending time on analysing and agreeing what they need to do, at
every stage of the job.
b) Planner and report formatter:
It is better if there is someone who understands the logic of network analysis and can stimulate
designers (and constructors) to analyse their work, define tasks, recognise dependencies between
these and guage (staff) resource requirements.
c) Data collector and analyst:
Team leaders may need prompting to produce figures for the (percentage) completeness of
defined activities under their control. Knowledge of design work and the individuals is essential if
these figures are to be

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interpreted intelligently. There may be a need to relate the timesheet accounting system more
closely with the work breakdown used for progress monitoring.
6 Conclusions
Factors such as the project type, scale, complexity, and level of risk should be considered when
deciding how closely to plan and monitor design work. In setting up a planning and monitoring
system, roles, responsibilities, systems and procedures have to be agreed. Software selection may be
influenced by the quality of graphics and ease of use in an interactive way, e.g. to assist discussion.
To monitor progress, a base-plan must be defined. This requires a breakdown of work into principal
stages and design disciplines. More detailed tasks should be identified at each stage of work,
together with critical sequences, which might overrun the time allowed.
It is vital that team leaders participate in detailed planning and agree to “deliver’’ output according to
the resulting timetable. Adjustments to the design itself can disassociate tasks so that more work can
proceed simultaneously and with less need for coordination.
In the early stages of design work, there may be little output to measure objectively. The
establishment of quality systems, information inputs, key design decisions and so forth, can then be
used to assess progress.
It is unlikely that a high proportion of work will appear on design work schedules. Undefined tasks
must always be taken into account when assessing progress.
Key ratios can sharpen the reporting of progress. These focus on the comparison of previous
productivity and efficiency with the productivity and efficiency necessary to complete a design project
on time and within budgeted man-hours.

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The management of the design process
B.Sawczuk
DGI Group plc, Kenilworth, Warwickshire, UK
Abstract
This paper describes how the approach to managing design develops with the age and growth of an
architectural practice. It explains how layers of design management are introduced within an
organisation and how two styles of approach may develop; that of ‘conveyor belt’ design or ‘project
designer’ with back up skills. The paper goes on to discuss the fundamental ingredients of managing
the design process and the importance of managing the client and contractor as part of a larger
team.
Key words: Company Management, Design Management, Client Management, Integrating Skills.
1 Introduction
The approach to Managing Design within an architectural private practice, be it a Partnership or
Company, develops with the age and growth of the organisation. In the early years, the Founder has
a ‘hands on’ approach and lives with the project on a day-to-day basis: often he will maintain direct
contact with the client and carry out the drawings and contract administration (Fig. 1A). As the
organisation grows and matures, the Founder or his Partners/Directors will not be able to handle
each project personally throughout. There becomes a split in workload, with the Partner taking the
initial brief and communicating internally to the Project Architect or Technician to put in hand
drawings and contract documentation (Fig. 1B). Depending on the workload of the Partner and his
own personal skills, he may have a key role within the concept drawing stage but will break away
once the project concept design has been established.
With further growth and maturity, the design organisation will be handling more and more work and
therefore the Partner may take on a marketing and sales role, with less and less input into the design
process and its management. It is at this stage that a new role develops—that of Design Manager—
which becomes the link between the Partners and the drawing office. This role may carry the title of
Associate or may not even have a specific title but the role is developed by those within the
organisation who show managerial skills and can handle organisational problems (Fig. 1C).
Within some organisations, the Partners have mixed skills: some are primarily in Marketing/Sales
whilst others are in design management or even remain on the

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Fig.1. The Development of Design Management

drawing board as concept designers. Therefore, within some organisations, titles may mislead
function and may be more a sign of status than functional role.
It is evident, therefore, that three distinct layers of management are created: within some
organisations they will be distinct roles, whilst within others the roles will possibly change with
workload, individual preferences or company policy. These layers of management are:
Company Addresses corporate matters, resources, finance, policy, design strategy and external
Management influences.
Design Tends to supervise the services in an organisation and will co-ordinate and control
Management design briefings and design reviews.

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Design Projects Responsibility for individual projects and services.
To make these layers of management work, there needs to be a degree of overlap; therefore
company management contains some design management which, in turn, contains some project
design skills.
2 The integration of skills
A totally balanced Designer, with equal strengths in management and design, is rare and, it could be
argued, not ideal because there may be a requirement for star performers in both camps working
alongside each other for mutual benefit. This view can be taken to its extreme and ‘conveyor belt’
design can develop within organisations where individuals are pigeonholed into key stages of the
design process (Fig. 2).
Alternatively, the organisation may develop key members with specific skills that can serve a number
of projects on an ‘as and when’ basis and may include contractual advice, graphics for presentations
or programming skills (Fig. 3). For the smaller organisation, which could not accommodate a back up
service of ‘experts’, team work is important, with cross-fertilization of ideas and expertise from one
project team to another and feedback from one project relayed to all members of the various teams.
Another way to achieve this is to mix or change the team members from time to time, so that
knowledge is shared: this would also prevent ‘islands’ of knowledge building up within the
organisation.
Fig.2. Conveyor belt design
Fig.3. Project Design with back up facilities

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Some organisations will import a manager who is not a trained designer but is a trained manager;
this may have some distinct advantages but the disadvantages may be greater. For success, there
needs to be commitment from the top down, with clear thinking and clear policy and company
approach. Therefore, how can the non-designer manager be committed to something he does not
understand or, indeed, value?
3 Fundamental ingredients to managing the design process
No matter how complex the project or how big the project team or, indeed, how fast the project will
develop, there are four basic ingredients to the management of the design process, these being:
Plan There must be a plan of action. It might follow the RIBA work stages or another in-house
approach. Each work stage will also have its own plan of action.
Action The plan must be actioned in accordance with the plan.
Review At regular intervals during the action process, the action must be reviewed and compared
to the original plan.
FeedbackIf the action is not going according to plan, there must be feedback to modify the plan to
take into account deviations in the action. Also, the action must be put back on course.
This Plan, Action, Review and Feedback process is a continuous process and vital for a successful
project (Fig. 4).
Fig.4. Fundamental ingredients to managing the design process

4 Objectives
The objectives of a designer are different to those of a manager and it is the harmonious existence
within one team of these diverse objectives that make a successful design organisation. If one were
to pick three key objectives for designer and manager, they may well be:
Designer Ideas/innovation
Recognition by peer group
Achievement

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Managers Business Plans/strategy
Profits/growth
Stability
5 Managing the client
The design process revolves around the client’s needs and therefore the client should be part of the
team and obviously requires managing. Up to now, we have considered the internal management
process. This needs to be widened to bring in the client’s contribution, which must be controlled and
timed to suit the design process, so that the correct information is received on time and variations
(which are quite often due to the lack of proper consideration at the appropriate time) are reduced to
a minimum.
At the outset of the project, the interface within the client organisation must be identified, whose
main task is to pass on the brief and sufficient information at the right time to the design
organisation, to enable the design process to proceed. The interface must have a degree of authority
within the client organisation, to enable him to obtain information from other parts of the
organisation and to overcome any obstacles or resistance to the release of such information.
Although not a requirement, it would be beneficial if the interface had previous exposure to the
construction industry and is aware of the need for information at the correct time. If the client
nominee has not previously been involved with the design process or construction, it would be well
worth the investment for the design organisation to spend some time with the client interface to
explain the process and the input required of the client body within that process. The client interface
must feel part of the team, should be involved in regular design review meetings and have an input
and, indeed, agree to the programme and all proposed client actions.
The design process will go through various stages, whether it be the RIBA work stages or a variant.
To give confidence to the designers and the client, it is important to seek acceptance of the
proposals, at each major stage, from the client body. Probably the most important stage in the
design process for all those within the client body to give their acceptance is at the conclusion of
scheme design (RIBA work stage D) and prior to the commencement of detail design and production
information (RIBA work stages E, F, G). At this stage, the design is frozen and the drawings and
specifications produced provide the springboard for the remaining workload.
In an ideal world, all design information is complete prior to construction but when time is of the
essence, design and construction overlap, with design ideally sufficiently ahead of construction so as
not to cause delay. It is very rare that modifications are not required during the construction period,
be it to improve ‘buildability’, to overcome a design oversight or to react and overcome on site
difficulties. It is therefore important during the construction stage to have good communication not
only with the contractor but also with the client, so that the need for modifications can be identified
early, redesigned and endorsed by the client without disrupting on site operations. Furthermore, the
client and contractor should be considered as potential members of the design team during the
construction stage.
In conclusion, it is important to emphasise that the success of a project is greatly

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influenced by its management and the maximisation of the team members’ talents, together with the
managed and co-ordinated input from the client and building contractor.
6 References
Royal Institute of British Architects, (1990) Architects Appointment. RIBA Publications Ltd.,
London.
Sharp, D. (1986) The Business of Architectural Practice. Williams Collins Sons & Co. Ltd.,
London.
Walker, D. Oakley, M. and Roy, R. (1988) Managing Design. The Open University Press, Milton
Keynes.

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Managing the construction process through a framework of decisions
M.Loosemore
Department of Civil Engineering and Building, The Polytechnic of Wales, Pontypridd, Mid Glamorgan,
UK
The purpose of this paper is to propose a Universal framework of decisions that is common to all
construction projects. An awareness of a universal framework simplifies the task of management by
focussing upon the most important activities within the construction project organisation.
The following conclusions are drawn:
1) To aid the management of the construction process there is a need to identify common elements
that characterise all construction project organisations.
2) Although construction projects are unique there is an identifiable pattern of decision processes
that is common to them all.
3) There is one type of decision but different types of decision process.
4) There are Technical and Organisational decisions processes and Organisational decision processes
can be classified hierarchically into four levels by the nature of their output.
Key words: Decision, Typology, Systems, Hierarchy.
Managing the construction process:
Managers of construction project organisations are faced with unique problems. The variability of the
Client’s requirements and of the final product means that each project poses wholey different
challenges. In addition to this, Bennett (1985) maintains that the need for a wide range of
knowledge and skills within the construction process creates a complex organisation. Since it is the
manager’s task to create and control this organisational structure, his task becomes arduous. In
addition to the variation of skills, Walker (1989) recognised that project participants can also be
highly differentiated in terms of

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location, timing, employer and profession. Walker (1989) maintained that the level of differentiation
is directly related to problems of information flow within the project organisation. The environment of
the construction project organisation also creates special problems because as Hughes (1989)
showed, every construction project is faced with a uniquely diverse complex and uncertain
environment. Since Lawrence and Lorsch (1967) concluded that “organisation is a function of the
nature of the task to be performed and its environment” it follows that each project should have a
different organisational structure. Finally, the temporary and dynamic nature of the construction
process creates problems of motivation and control and as Lansley (1984) states “the throwing
together of consultants who are not all familiar with each others work methods and weaknesses, has
rarely been challenged”.
The need for a universal framework of decisions:
Hughes’ (1989) work illustrated that effective management is partially achieved through the creation
of appropriate organisation structures. Faced with an increasingly complex environment brought
about by economic and technological changes, the traditional methods of organisation have proved
ineffective and in recent years this has led to a frantic search for new methods of organising and
administering construction projects. Bennett (1991) provides a reason for this recent activity
maintaining that the construction industry has been much slower than other industries in adapting to
the changing world. This proliferation of standard organisational approaches has been accompanied
by general confusion and this has been highlighted by NEDO (1988) which states “the proliferation of
new organisations has aggravated the existing problems of coordination, communication and
motivation both within the industry itself and in its relations with its customer”. To counter the
adverse effects of this increasing complexity there is a need to simplify the manager’s task by
creating a simple conceptual picture of the project organisation. This can be achieved by identifying
and highlighting common elements that run through all construction project organisations and which
are an important influence upon it.
It is proposed that there is a universal pattern of decisions that is common to all construction project
organisations and that the identification of such a pattern is the key to simplifying the Construction
Manager’s arduous task.
The importance of decisions to organisations:
Philosophy, Economics, Mathematics and the Social Sciences have all contributed to the better
understanding of how decisions are made and this reflects its importance as an issue. Walker (1984)
highlights its importance to the construction process when he

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makes the statement that ‘‘the decision making system is the mechanism through which the whole
construction process moves forward”.
Considering its importance it attracts relatively little attention as an area of interest within
Construction industry research activity. Even in the Social Sciences where most effort has been
devoted to the study of decisions, it is still a relatively young and emerging area. Decision making is
commonly tackled very superficially as an integral part of studies that concern other issues. Where it
is tackled as a subject in its own right the approach is either highly scientific or very general. There is
no doubt that its importance to the effectiveness of organisations merits some rigorous attention in
an industry which is attempting to improve its performance.
What is a decision?
Emory and Niland (1968) see a decision as “a point of selection and commitment”. In contrast to
this, Simon (1960) considers decision making as something wider than just a point of commitment
maintaining that it is a process consisting of three principal phases: finding occasions for making a
decision; finding possible courses of action; and choosing among courses of action.
The essential difference between these definitions is that one regards decision making as a process
which occurs over a period of time and the other sees it as a single point in time. This distinction
between the decision itself and the process that surrounds it, is a very important one which is
seldom made.
Types of decisions:
Thompson and Tuden (1963) saw the value of a typology of decisions. They maintained that “the
identification of a typology enables the sorting out of:
1) Aspects of decisions situations that confront decision makers.
2) Actions that decision makers may take in those situations.”
Furthermore, Cooke and Slack (1991) state that “to understand decision making and so to hopefully
make better decisions one must be able to recognise different types of decisions”.
There have been many attempts to classify decisions. The most notable of these was that of Simon
(1960) who classified decisions by the extent to which the stages involved in solving the problem
could be structured. The resulting typology referred to Programmable and Non programmable
decisions. Gore (1962)

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arrived at a three point classification of decisions referred to as Routine, Adaptive and Innovative
decisions. The classification was different to Simon’s (1960) being based upon the nature of the
problem faced. Drucker (1967) made the same distinction as Simon (1960) classifying them as
Generic and Unique decisions respectively. Like Gore (1962), Delbecq (1967) developed a three point
classification comprising Routine, Creative and Negotiated decisions. This typology was based on the
degree of congruence between the values of the contributors to the decision process. Thompson
(1967) suggested four decision strategies each determined by the uncertainty of information which
the decision maker is faced with. The typology was composed of Computational, Judgemental,
Compromise and Inspirational decisions. In recent years Mintzberg has arguably contributed most to
this area. Mintzberg (1973) produced a typology which comprised of Entrepreneurial, Adaptive and
Planning decisions differentiated by the level of uncertainty in the decision making environment.
More recently Mintzberg et al (1976) changed the basis of classification by concentrating upon the
difference in time between the appearance of the problem and the point at which the decision was
made. The resulting typology consisted on Opportunity, Problem and Crisis decisions. Walker (1980)
developed a typology of decisions for the construction process and this has subsequently been taken
further by Hughes (1989). Hughes (1989) developed a four point classification of Policy, Strategic,
Tactical and Operational decisions being differentiated by environment, sub system and
organisational position. The most recent and novel approach to the study of decision making within
construction project organisations has been developed by Bennett (1991). In a natural extension of
Systems Theory Bennett (1991) used the analogy of the human nervous system as a basis for
developing a model. The model developed resulted in a three point classification of decisions based
upon hierarchical positioning within the organisational structure.
Every one of the above typologies fails to make the critical distinction between the decision itself and
the process which surrounds it. Each typology classifies decisions by referring to the nature of the
process which surrounds it and all fail to consider what a decision actually is. In making the
distinction between decisions and the activity that surrounds them both Hughes (1989) and Emory
and Niland (1968) reinforce the opinion that decisions represent points which occupy no time,
resources or space and thus effectively do not materially exist.
Thus decisions are essentially the same in what ever context they are taken, it is the surrounding
decision process that differs, not in its structure but rather in the nature of the information which
flows through it. The conclusion must therefore be that there is only one type of decision but
different types of decision process. The different types of decision process can be classified by the
nature of information that flows around and through them.

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Classification of decision processes:
Decision output can be used as a basis of classification and this view is supported by Mintzberg
(1973) who holds that there is essentially no difference between the jobs of top and bottom
managers, “the only difference is orientation and in the ends to which the managerial activities are
directed”.
Eilon (1971) maintains that “the decision making process is an evolving one which involves the
gradual narrowing down of options” he goes on to identify three types of decision outputs in all
organisations, those that relate to goals, those that relate to measures and resources and those that
relate to means. This universal classification of decision outputs is used as the basis of categorisation
in the new typology proposed within this paper. Hughes (1989) identified an additional type of
decision output which exists within temporary organisations, starting and terminating them.
The resulting typology is shown below;
POLICY DECISION PROCESS: Start and terminate the construction project
STRATEGIC DECISION PROCESS: Establish the organisational goals
TACTICAL DECISION PROCESS: Devise measures needed to attain those goals set at Strategic level
and then select the resources needed to carry out those measures.
OPERATIONAL DECISION PROCESS: Devise the means to enable those resources selected at Tactical
level to attain the goals set at Strategic level.
The arrangement of decision types:
Knowledge of types of decision process is to some extent useful in itself to those studying
construction project organisations. However by relating types of decision process to each other
patterns can be revealed which could be used as a framework to understand and classify
organisational structures in construction projects. Walker (1989) suggests a similar advantage of such
a framework when he states “the essential determinant of the structure of an organisation for the
design and construction of a project is the arrangement of decision points and the way in which the
contributors need to be integrated in order to produce material upon which decisions can be made”.
When an organisation is faced with a complex problem such as the procurement of a building it
copes by fragmentation. In order to reduce its complexity the problem is initially dissected
incrementally in to its component parts. In terms of the building

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procurement problem these will be the project stages. Each Stage represents a sub problem which is
then solved individually by further fragmentation. The fragmentation of each sub problem is achieved
through the hierarchy of the organisational structure, its function, as Cooke and Slack (1991) state
being to ‘‘maintain the focus of the organisation as it grows and becomes more complex”. It is within
the hierarchy that specialist roles develop and it these specialist roles that incrementally solve each
sub problem.
Thus problems are tackled by organisations through both horizontal and vertical fragmentation and
this is illustrated in figure 1.
Figure 1 Horizontal and vertical components of problem solving

Since decisions exist to solve problems it is likely that the pattern of decision making within
construction organisations will have both vertical and horizontal components. It is proposed that each
type of decision process is associated with a particular hierarchical level and the arrangement of the
decision processes within that hierarchy will depend upon the nature of the dependency between
them. The Policy decision process must come both first and last since they initiate and terminate the
whole construction project. To have any purpose and to allow progression from Inception to
Completion, the organisation must have goals and the Strategic decision process sets these down.
The goals can only be attained by deciding upon measures and by selecting resources to carry them
out, this will be decided within the Tactical decision process. Finally, the resources must

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be coordinated in order to achieve the goals set at Strategic level by devising the means of
production and this is established within the Operational decision process. The pattern of decision
making that incorporates both vertical and horizontal components is illustrated in Figure 2. Each
decision process in the hierarchy restricts the one below it. Thus the Strategic decision process must
operate within the constraints set down by the Policy decision process, Tactical decision processes
must be made within the constraints set down by the Strategic decision processes and Operational
decision processes must be made within the constraints set down by the Tactical decision processes.
Figure 2 Patterns of decision making processes

Systems and Sub systems:
The model presented above can be developed further by using systems theory which is based largely
upon the pioneering work of Lawrence and Lorsch (1967) which developed relationships

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between organisational structure and environmental conditions. The systems approach is useful in
that it is essentially a way of analysing complex processes so that the interrelationships of its
component parts and their influence upon the total process can be better understood. Berrien (1976)
defines a system as a “set of interacting components distinguished by a boundary which selects the
kind and rate of flow of inputs from and outputs to the environment”. A thorough analysis of the
literature in this area reveals that sub systems have clear barriers and are differentiated on the basis
of task, contributors, nature of internal exchanges and environment. Thus by the use of systems
theory one is able to identify the component parts of the construction project organisation.
The construction project organisation in the context of systems and sub systems:
The work of Morris (1972), Walker (1980) and Hughes (1989) represent the most recent and
successful, attempts to apply systems theory to the construction process. They see the construction
organisation as a system comprised of a number of interdependent sub systems whose boundaries
are defined by decisions.
The project organisation, which is a temporary one, is created and terminated by the policy decision
processes and thus it is between them that the project system exists. Although the project is a
temporary sub system of the Client’s organisation, for reference purposes this paper refers to the
project as the system. Within the project system there are sub systems which are the project Stages
and these are created and terminated by Strategic decision processes. Strategic decision processes
are responsible for setting goals and thus these Stages will be differentiated on this basis. Each
Stage is comprised of its own sub systems which are referred to as Activities which are created and
terminated by Tactical decision processes. Since Tactical decision processes are responsible for
devising measures and selecting resources the Activities will be differentiated on this basis. Each
Activity is comprised of sub systems which are referred to as Operations and created and terminated
by Operational decision processes. Since Operational decisions are responsible for devising means
these Operations will be differentiated on this basis. Thus the construction project is made up of a
series of Stages, the Stages are made up of a number of Activities and the Activities are made up of
a number of Operations.
Sub system junctions:
At the junctions between the sub systems there are two decision points, one which terminates the
previous sub system and one

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which triggers the next. Like all decisions they occur in an instant and occupy no resources time or
space. Hughes (1989) referred to these as Trigger and Terminal decisions and maintained that they
occur simultaneously , that is that the decision to terminate instantaneously initiates the next sub
system. This paper contends that because every decision is preceded by the convergence stages
there can be a time difference between the two decisions. Furthermore the Terminal and Trigger may
be made by different organisational members.This awareness of systems allows a final expansion of
the decision making pattern and in its full complexity it is illustrated in figure 3.
Figure 3 Patterns of decision making in the construction organisation and sub systems.
Figure 3 presents a very linear picture of decision making within the construction process but in
reality it is not linear because at any point in time there may be many overlapping Stages, Activities
and operations. The degree of overlapping will vary from project to project and NEDO (1983)
suggests that the degree of overlapping will depend upon the duration of the project in relation to its
size and complexity. Furthermore, the model assumes for simplicity sake that all decisions are
sequentially interdependent but in reality Walker (1989) maintains that there is pooled and reciprocal
interdependency to consider.

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Organisational and Technical decision processes:
Policy, Strategic, Tactical and Operational Decisions collectively determine the structure of the
construction project organisation and thus are referred to as Organisational Decisions. The collective
result of these decisions is organisational work which occurs within the Operations at Operational
level. It is the Operations that collectively produce the product which satisfies the goals set at
Strategic level. The Operations do this by using the resources selected at Tactical level in the manner
prescribed at Operational level. As the Operations proceed there is the need for decisions that
determine the nature of that product that is being produced and these decisions are essentially
technical in nature.
Examples of such decisions in the Scheme Design Stage of the construction process would include the
decision to use a certain type of roof tile or the decision to use a Steel rather than concrete frame or
a decision to use cladding rather than brickwork. In the Detail Design Stage they would include
decisions to use a cladding profile and colour or decisions relating to the detailed location of internal
services. These decisions do not influence the structure of the organisation and thus cannot be
referred to as Organisational Decisions and are referred to as Technical Decisions because of their
technical nature. All Technical Decisions such as deciding the nature of a building’s structural frame
will have a major influence upon the costs, time, quality and functionality of the final building. Since
Strategic Decisions set down organisational goals they could be construed as being Strategic
Decisions. However they are not Strategic Decisions because whilst the building is the final product is
not the only product of the construction project organisation. Each Stage of the construction process
has a product and the Strategic Decision within that Stage relates to the Quality, costs, time and
functionality of that Stage’s product.
This paper is primarily interested in the patterns of Organisational Decision processes rather than
Technical Decision processes that can be revealed within construction project organisations. However
any comprehensive model of decision making must recognise the existence of such important
decisions.
The difference in the emphasis of Technical and Organisational Decisions is illustrated in figure 4.

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Figure 4 The influence of Organisational and Technical decision making

Although not important organisationally Technical Decisions do influence the nature of the final
product produced and thus are very important since it is this product upon which the success of the
organisation is often judged. The Technical decisions are more glamorous than Organisational
Decisions and as a result have a much higher profile within project organisations. In contrast to the
less prominent Organisational Decisions successful Technical Decisions are often rewarded by high
profile prizes, awards and prestige. This may be a reason why other models of decision making
within construction project organisations have neglected to consider them as a special case. Although
it is true that without Technical Decisions the product of the organisation would not be produced, it is
also true that without Organisational Decisions the Technical Decisions could not be made. This is
because without Organisational decisions there would be no organisational member to make them.
Consequently Organisational Decisions do merit special attention.
The final typology of Organisational Decision processes:
This paper defines a decision as a focal point for information within an organisation which occupies
no time, resources or space and where an opportunity for change exists. Knowledge of the
component sub systems within the project system permits an expansion of the typology of decision
processes offered earlier in this paper.

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POLICY DECISION PROCESS: The highest level of decision making process and represent the
boundary of the project system.
STRATEGIC DECISION PROCESS: Establish goals and define the boundaries of the Stages.
TACTICAL DECISION PROCESS: Devise measures and select resources to attain the Stages goals.
They define the boundary of the Activities within each Stage.
OPERATIONAL DECISION PROCESS: Devise the means by which the resources selected at Tactical
level will be used to attain the goals set at Strategic level. They define the boundaries of the
operations.

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REFERENCES:
Bennett J (1985) “Construction Project Management” Butterworths; Cambridge.
Bennett J (1991) “International Construction Project Management: General Theory and Practice”
Butterworth—Heineman Ltd, London
Berrien F K (1976) (late) ‘‘A general systems approach to organisations” in “handbook of Industrial
organisational psychology” Dunnette M D (ed) , Rand McNally College Publishing Company pp7
Cooke S and Slack N (1991) “Making management decisions” Prentice Hall, London
Delbecq A L (1967) “The management of decision making within the firm: three strategies for three
types of decision making” Academy of Management Journal Dec pp 329–339
Drucker P F (1967) “The effective executive” Harper and Row, New York pp 122–125
Eilon, S (1971) “Management Control” McMillan, London
Emory W C and Niland P (1968) “making management decisions”, Houghton Mifflin, Boston pp12
Gore W J (1962) “Decision making research: some prospects and limitations” in “Concepts and issues
in Administrative behaviour” ed Mailick S and Van Ness E H, Englewood Cliffs, N J Prentice Hall
pp49–65
Hughes W P (1989) “Organisational analysis of Building projects” PhD thesis, Department of
Surveying; Liverpool Polytechnic,
Lawrence P R and Lorsch J W (1967) “Organisation and Environment: Managing Differentiation and
Integration” Havard University Press,
Mintzberg H (1973) “Strategy Making in three models” California Management review, Winter pp 44–
53
Mintzberg H (1973) “The nature of managerial work” Harper and Row
Mintzberg H, Raisinghani D and Theoret A (1976) “The structure of unstructured decision processes”
Administrative science quarterly, Vol 21, No. 2, pp 246–275
Morris P W G (1972) “A study of selected building projects in the context of the theories of
organisations” PhD thesis: department of Building, UMIST.
NEDO (1988) “Faster building for Commerce” HMSO, London

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Simon H A (1960) “The new science of management decision”, Harper and row, New York
Thompson J D (1967) “Organisations in action” Mc Graw Hill , New York , pp134–135
Thompson J D and Tuden A (1963) “Strategies, Structure and processes of organisational decision” in
Comparative Studies in Administration’’ Thompson J D et al (1963) University of Pittsburgh Press.
Walker A (1980) “A model for the design of project management structures for Building Projects”
PhD thesis, Department of Surveying, Liverpool Polytechnic,
Walker A (1984) “Project Management in Construction” Grananda; London
Walker A (1989) “Project Management in Construction” BSP Professional Books

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Constructability evaluation during detailed design phase
S.Alkass
Centre for Building Studies, Concordia University, Montreal, Canada
G.Jergeas
Revay and Associate, Calgary, Canada
A.Tyler
Civil Engineering Department, Loughborough University, UK
Abstract
The traditional system of construction, separates the the two main disciplines of design and
construction. Normally the design is carried be a consultant and the construction is carried out by a
contractor and rarely they communicate before the starting of the construction phase of the project.
Designers in most cases lacks construction experiences, and construction expert knowledge is not
available for junior designers, therefore they do not take into account the construction methods
during the design stage of the project. As a result of this the construction industry is suffering from
design complexity, increasing costs and longer construction durations. To overcome this problem, it
is necessary to incorporate construction knowledge as part of process of design. Artificial intelligence
(AI) and expert system techniques can be applied to make the construction knowledge available to
assist the design engineer in evaluating the constructability of a selected design detail. The use of
Expert Systems in construction is not new. These systems have been developed either as stand alone
modules or integrated with commercially available algorithmic software systems. This paper focuses
on integrating construction expertise with the design process at the detail design phase. It also
describes the development of a PC-based expert system for the assessment of the constructability of
a design detail. Knowledge for this particular domain was gained from design engineers, architects,
and field practitioners such as site and planning engineers. The development of the appropriate
knowledge acquisition and integration techniques are covered. The system is tested with practitioners
and novices and the concept of consultation is validated.
Keywards: Constructability, Buildability, Expert systems, Design details
Introduction
Constructability/Buildability is a relatively new term in the jargon of the construction industry, but the
concept of constructability, however, goes back many years.
The study of constructability suggest that the traditional separation of the design and construction
processes is primarily responsible for the less efficient performance at current construction projects.
It also suggests new approaches for the design and construction processes and that the achievement
of good constructability depends upon both designers and contractors being able to see the whole
construction process through each others’ eyes (CIRIA1).
Constructability is generating good interest within the construction practitioners, even though it is a
relatively new term in the jargon of construction industry. The concept of constructability however,
goes back many years.
Construction techniques have evolved over the centuries relying mainly on labour-intensive methods,
material and equipment. As construction techniques have become more sophisticated so the
separation of design and construction has increased.

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In the traditional approach typically design is carried out first by a consultant and is constructed later
by a contractor. Normally these two parties do not communicate prior to the construction stage of
the project, despite the fact that most design engineers lack adequate construction experience
(Gray2). As a result, important construction knowledge are missing during the design stage, leading
to impractical, complex and costly design.
Constructability planning pursues the optimum integration of construction knowledge and experience
with the engineering design to achieve the overall project objectives (O’Conner et al.3). In practice,
this knowledge is generally held by few experienced practitioners and therefore accessible only in
piecemeal manner.
Although the study of constructability highlights the inherent problems arising from the separation of
design and construction processes, there has not been a clear understanding of how to formally
incorporate the construction expertise as part of the design process (Jergeas4). A development of an
expert system in this domain is an attempt to overcome these problems by acquiring construction
knowledge, storing it in a computer system structured in a manner that facilitates-system
consultation process in an environment that is largely judgment dependent.
In recent years, Expert Systems have been used in the construction industry. They have been
developed either as stand alone modules or integrated with commercially available algorithmic
software systems, performing various functions including: scheduling, estimating, cost control,
database management, accounting, drafting, and word processing. This paper describes the
development of an integrated prototype system that combines design procedures with the selection
of design details. It is called Constructability Assessment for a Design Detail System (CADDS). The
system integrates both data and knowledge gained from experience in designing and constructing
different projects. Knowledge is first gathered from a number of experienced design and planning
engineers and then structured and coded in a form suitable for manipulation and processing by the
various functions within CADDS. The approach relies on well founded principles and experience-
based knowledge collected from literature and field surveys. An example application of a retaining
wall design selection is presented to illustrate the features of the system. The system will assist the
architects and structural engineers in selecting the most appropriate and easy to construct design
details. This enables owners and contractors to save time and money and avoid costly legal disputes.
This paper focuses on Contractor’s design difficulties experienced on construction sites. It explores
contractor’s viewpoints and identifies specific problem areas, specifically drawings, foundations,
structural frames, floors, reinforcement and formwork.
Definitions of Constructability
In 1979, The Construction Industry Research and Information Association (CIRIA) started a research
program aimed at investigating the major problems of current U.K. construction practice. This
renewed interest in the concern for the interrelationship between design and construction which had
followed previous reports since the early 1960’s. Interest focused on the concept of buildability and
suggestions that present designs were not providing value for money in terms of the efficiency with
which the construction process is executed.
Constructability/buildability was defined for the first time in the U.K. by (CIRIA1) in 1970 as:
“The extent to which the design of the building facilitates ease of construction, subject to the overall
requirements for the completed building”.
CIRIA’s somewhat simplistic definition inherently suggests careful consideration of design detailing to
present a design solution assisting the construction phase whilst meeting desired performance and
quality requirements within planned cost parameters.

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Whilst CIRIA appreciates that ease of construction may be influenced by many organizational,
technical, managerial and environmental considerations, the major contribution was thought to lie in
those factors which fall within the influence or control of the design team. (Griffith5)
It is wrong to associate constructability purely with the aspect of design, as there is increasing
recognition for the contractors role and contribution of other parties in promoting ease of
construction.
CIRIA states that the problem of constructability exists, and puts it down to: “…. the comparative
isolation of many designers from the practical construction process. The shortcomings as seen by the
builders were not the personal shortcomings of particular people, but of the separation of the design
and construction functions …..”
For the purpose of this paper, the following definition of constructability produced by the
Constructability Task Force of the Construction Industry Institute at the University of Texas is
adopted.(3)
“Constructability is the optimum use of construction knowledge and experience in planning,
engineering, procurement and field operations to achieve overall objective.”
DESIGN DETAILS AND CONSTRUCTABILITY
Important factors such as easy to construct design details and functionality must be carefully
considered during the design details stage of a project. Both functional and constructional aspects of
detailing influence its overall performance. For example, different forms of exterior wall construction
must fulfil basic requirements pertaining to aesthetics, durability, energy, fire resistance, acoustic and
structural strength. In addition, compatibility with surrounding components, and installation, time and
cost should be considered. It is not sufficient to have details which are aesthetically pleasing,
functionally satisfactory but not thought out in terms of the construction-related aspects, including
feasibility, and impact on cost and schedule.
In spite of the apparent importance of constructability on design, it is often ignored. As a result,
problems arise during the project’s construction phase causing schedule disruption and leading to
costly legal disputes. This means that the extent to which the design of details facilitates ease of
construction should be carefully considered. Furthermore the implications of using a specific design
detail have to be identified for future improvement to obtain full performance satisfaction.
Constructability as a concept is not new in the construction field (Eldin6 Tatum7). The importance of
its improvement has been emphasized in project plan, site plan and major construction methods.
Data collection for performing constructability improvement data collection techniques is well
documented (O’Connor et al.8). Although constructability concepts have been identified to be a major
factor in evaluating design alternatives, there have been no significant efforts made to devise a
systematic approach to assess and catalogue construction details. Computer technology may be used
to capture and code field experience to be presented later to design engineers in an easy to use
computer programs will contribute to devise such an approach. This is an area where Knowledge
Based Systems can be applied.
Data collection and surveys
Having established that a problem existed, a serious of actions were undertaken to identify the
problem including: review of literature, interviews and postal survey with 26 contracting
organizations and 30 consulting engineering practices within the construction industry in United
Kingdom. A review of the literature on constructability of the

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American experience was also under taken. Based on the survey the following point of views were
concluded:
Contractor’s Views
It was stated several times by some of the contractors interviewed during the research at the that
generally they have no complaints about the concept of a design, but rather the details that it
incorporates. Design detail difficulties, however, are prevalent, and, according to the contractors
interviewed, are present on every contract. The nature of the difficulties are as follows:
1. Design details seem to be drawn in isolation with little thought given to the incorporation of the
details in the construction process.
2. Over complex designs which are often costly in construction time and cause disruption.
3. Poor quality information provided for construction—from site investigations to construction
drawings.
4. Not enough consideration is given to the practicality of details, nor to the effect they may have on
the construction as a whole.
5. Superficially economic designs are often more costly due to their complex shapes or processes of
construction.
6. The contractors often choose to give away some material costs in order to save on plant and
labour costs.
7. Poor sequencing of operations forced upon the contractor by the design. Design detail difficulties
have been grouped under the following categories (Jergeas4).
1. Drawings
Drawings were considered by some of those interviewed as not always being suitable for site
operatives. Drawings were frequently criticized for poor quality which generally meant a lack of
clarity and content.
Some of the examples given included the following:
i. Conflicting information and lack of coordination which produced contradictory information from
different design sources such as Architects, Engineers, and Mechanical and Electrical consultants,
ii. Unfinished details; the designers completing part of the design and leaving the contractor to
finish it.
iii. Information not being sent to site but available at the design office,
iv. Dimensions scattered over several drawings. The Architects’ dimensions are frequently not tied
in.
v. No grid lines or datum levels making setting out difficult,
vi. Minor details included with other unrelated details,
vii. Wrong bar bending schedule on the drawings,
viii. Poor information, often making it difficult to understand how the job should go together.
2. Foundations
Difficulties regarding foundation design arose due to:
i. Contractor’s method of working not being taken into account at design stage, specifically on
excavations such as stripping the site to a reduced level in one operation rather than individual
areas excavated in isolation.

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ii. The use of small quantities of materials at the expense of additional labour and plant time such
as small concrete details requiring extra formwork and labour for fixing, striking and placing
concrete.
An example of this is that individual pad foundations, especially if closely spaced and numerous,
are not necessarily a cost saving if individual areas are excavated in isolation, rather than
stripping the site to a reduced level in one operation.
A similar principal applies in constructing a service reservoir, for instance, where additional
thickening of ground slab may be required at the column positions.
iii. Over-complex shapes, such as where the foundation is designed as piles supporting very heavy
ground beams between which spans the ground slab.
3. Structural Frames
The main areas of difficulty regarding frame design were identified as:
i. The mixing of trades within the structural elements and poor sequence of operations. A ground
slab detail is presented as an example of poor operational sequences. The blockwork was detailed
as overhanging the floor slabs. Therefore, the floor slab had to be constructed before a start
could be made on the inner blockwork.
ii. Little consideration given to speed of erection by the designers when detailing frame related
structures, such as the use of insitu staircases and making openings through structural elements.
There are several problems with openings in concrete walls:
a) Reinforcement fixing is less straightforward.
b) The fixing of the box-out sections to the formwork take extra time and cost more.
c) Compaction of concrete under a square box-out is difficult to achieve and often leads to a poor
finish requiring remedial work. If a hole is required, a circular one lends itself to a better finish.
4. Reinforcement
The difficulties with reinforcement commonly arising from the need to allow prefabrication. Steel
reinforcement for beam and slab floors lend themselves to prefabrication. The beam cages can be
fabricated at ground level, then lifted and dropped into place, with continuity and splice bars placed
insitu through the column and beam junctions.
There is one important aspect to prefabricating such reinforcement and that is to allow generous
cover, particularly end covers.
It is no good prefabricating cages if, when they are placed, there is insufficient cover so that the
cage has to be taken out and prefabricated again. Tolerances must take account of the variations
which might occur.
5. Formwork
The main areas of difficulty with regard to formwork were identified as:
i. Difficulties in the re-use and repetition of design.
Many consultants design the lift shafts of buildings as the bracing. However, as a temporary works
designer will point out, that becomes the critical item on the construction of the floors. The four
walls of the shaft form a nice box, but boxes are not easy to build The construction is slower,
access is difficult for men and materials, and the next floor cannot be started until the walls (lift
shaft) are completed
Considering the shutters themselves, the main difficulty is that the inner shutters all have to be
cut to the correct lengths.

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ii. Not designing for the maximum use of mechanization to reduce labour costs. An example of that
is where the formwork designer could not recommend a Table form or Flying form because the
columns on the outskirts of the building were larger than the inner columns.
iii. Complex shapes seem to arise out of the belief that the minimum amount of material means the
minimum cost. When dealing with concrete this is rarely the case.
EXPERT SYSTEMS AND CONSTRUCTIBILITY
Expert systems and their application in construction in general have been extensively described in the
literature, (Mohan9; Alkass10; Alkass et al.11). Their application to evaluate design details for
building projects and evaluation of design alternatives have been also considered (Cornick et al.12,
Maver13).
While ease of construction may be influenced by many organizational, technical, managerial and
environmental considerations, the major contribution is thought to lie in those factors which fall
within the influence or control of the design team. Therefore, the emphasis is better implemented on
integrating construction experience during design.
Because of their attributes of combining factual knowledge with judgment, including the ability to
handle incomplete and uncertain data, and communicate with their users in a language like English,
such systems could have a special appeal to the construction profession. Expert systems however,
are not a total substitute for experts, but they do help to conserve construction related expertise
including information on constructability and are used to make expertise more widely, easily and
quickly available for assistance in the decision-making process.
Constructability assessment when considered as a part of the design process is partially subjective
and seems to rely mainly on personal knowledge and experience. The rules of constructability are
based upon the construction ease and performance implications of the detail components and how
these satisfy various functional criteria. The assessment input could be a partially or completely
specified detail design and the result is usually a recommendation for improvement. Two main
problems promptly arise in developing knowledge-based systems to assess constructability. The first
lies in the formalization of the assessment criteria and the second in developing the interface
between a syntactic approach of the graphical representation of the given design detail and the
semantic representation of a knowledge-based system (Gero et al.14). This means that an approach
to translate design description in the form of graphical representation into appropriate form of
knowledge base description (i.e. from syntactic to semantic representation) is necessary to facilitates
the development of an integrated system. The integration is most suited for the construction
industry, where much appropriate software already exist to aid the personnel involved in decision
making process for example design, drafting, scheduling, estimating, cost control, database
management, electronic accounting, and word processing which could usefully be incorporated in any
future new system and so possibly avoid some of the additional retraining of staff and new
equipment when introducing a new system and also help counter the negative momentum generally
engendered with the introduction of new technology. An integrated system might also include an
Expert System containing experimental knowledge and engineering judgment to facilitate the
decision making process. Clearly a successful outcome would depend on the economic integration
with existing systems.
A PROPOSED INTEGRATED SYSTEM
The proposed system is designed to demonstrate how construction knowledge and experience may
be most effectively presented and used during the detailed design phase of the project. CADDS is
designed in an integration environment. It combines design

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procedures with construction methods to arrive at the selection of appropriate design details for a
specific case based on ease of construction at optimum cost. The system comprises the integration of
expert system with existing management software tools.
The knowledge-base of CADDS is build by first eliciting related knowledge from architects, structural
engineers and construction practitioners through lengthy consultation with with known facts on
construction methods, weather conditions and cost data. The knowledge is then organized,
structured and coded to facilitate its use by non-expert considering that the inference mechanism
being forward-chaining and knowledge being represented as rules. The mode of operation consists of
series of questions linked by IF THEN logic, the logic tree being set of rules arranged to reflect the
reasoning of the expert practitioner. The approach relies on well founded principles requiring the
constructability of the design be carefully evaluated after which the appropriate design details are
selected using rules of thumb ie. type of knowledge acquired from domain experts and stored in an
expert system. Data base information, graphical knowledge representation and algorithms for making
routine calculations are linked to the system, to enable comprehensive consultation.
CADDS is divided into three main modules, the first deals with the selection of a detail to conform
with the user particular requirements stated during the query session whilst the second assess the
constructability performance of a selected detail. This is done based upon the detail characteristics
and its construction requirements, the system rules and the user preference of a set of goals. The
third module identifies the cost implication of using the selected detail. Fig.1, illustrates the system’s
architecture and Fig.2, depicts the integration of the expert system with external programs.
During the selection criteria of a detail (a retaining wall in this case), attention is paid to set of
characteristics pertaining to performance, construction aspects and constructability which may
include:
1. The retaining wall system self weight.
2. Resistance to lateral loads.
3. Deterioration of the retaining wall components.
4. Installation of all the services’ components within the wall
5. Dependence of the wall construction on weather conditions.
6. Degree of inspection required.
7. Type and complexity of the formwork used.
Designers first specify the characteristics of the desired wall system and according to their
preferences with respect to previously mentioned selection criteria, CADDS then will advise on the
selection of the best wall system. Once the user is satisfied with the decision, he or she may acquire
more information on the system generated detail by selecting an icon from a menu. CADDS will then
provide the user with the following informations:
1. The outline geometry of the detail
2. The position, shape, size of each component in the assembly.
3. The attachment type of each component
4. The cost of each type.
This information is held in a file within the system’s data base and the syntactic representation of the
drawing is converted to semantic representation to enable processing of the expert system. This
approach minimize the number of question posed by the system. Information attached to each
stored detail may include:
1. Number of components.
2. The attachment description of each component.
3. Number of trades involved in construction of the detail assembly
4. Type of required site supervision and inspection effort
5. Number of key features in the detail which become quickly hidden behind other layers of
construction.

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Fig. 1 Schematic Diagram of ‘‘CADDS” Prototype System Architecture (ref. 17)

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Fig. 2 The Interaction of The Expert System With External Programs

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6. Advantageous and disadvantageous characteristics of the detail.
7. Total costs of construction (i.e. labour, material and equipment costs).
The user is requested to input his or her relative importance of the attributes associated with a
particular design by assigning numerical values to or selecting from multiple-attributed criteria
presented by the system in the form of Great Importance, Fair, Moderate, Minor and, Not at all. Fig.3
illustrates the constructability assessment for a wall system.
At the end of the consultation, advice on a selected detail is presented to the user followed by three
explanation reports. The first deals with the detail selection, in this case a wall system, the second
report deals with constructability assessment of a given detail which is presented as a ratio of the
total relative importance input by the user for all attributes considered. The third report shows the
implications of the selected detail design.
EXAMPLE APPLICATION
To illustrate the manner in which construction details can influence constructability and performance,
the following example [adapted form (Jergeas15)] a retaining wall section is shown in Fig. 4a.
Presumably this detail was designed in this way to take advantage of reducing earth pressures
higher up the wall. It was detailed to be cast in five separate pours. The system compares this detail
with the one shown in Fig. 4b which meets the designing requirements of that of the first one except
the later is different in shape and could be cast in three pours making it easy and quick process.
Even though detail B needs more concrete, there has been a saving of 17% in cost that is not to
mention the time saved in the process. Table 1 shows cost caparison between the two details.
Another illustration of the manner in which construction details can influence constructability and
performance, is shown in the following second example [adapted form (Drysdale et al.16)] of
designing a simple detail is presented. In this example a major decision in the design of the shelf
angle carrying the brick veneer in a cavity wall system is to what extent its position should be made
adjustable. If the shelf angle is fixed in position at the time of concrete placement of the structural
frame, its location both vertically and horizontally is tied to the construction tolerances of the frame.
Such a method of shelf angle attachment presents some advantages and disadvantages with respect
to constructability and required performance. On one hand, attachment to the frame usually by
means of a cast in strap anchor is secure (i.e.performance). Also the construction is simple and
straight forward and hence can proceed with a minimum of potential slipups and a minimum of site
supervision and inspection effort (i.e. satisfying constructability requirements).
On the other hand variation in the vertical position of the shelf angle can result in either too large or
too small a gap for the joint movement beneath the angle and thus, violating the structural
requirements for joints movement. Such variation in the horizontal position of the shelf angle can be
accommodated by varying the bearing area of the brick on the shelf angle from one floor to another
which in turn, is constrained by a limited projection equals to 1/3 brick width (Building Codes
requirements). In addition it is important that existing construction be measured up (e.g. Concrete
slabs edges, Alignment and Spacing) and problems resulted be resolved before actual construction of
the wall system begins (i.e. constructability).
Alternatively, an adjustable shelf angle attachment is possible by means of cast in or drilled-in
anchors. By using this method vertical adjustment is possible by means of slots in the shelf angle
and horizontal adjustment is achievable by means of shims. Cast-in anchor bolt location may not
however, match the shelf angle slots (i.e.constructability). Consequently, greater construction care
and inspection effort are required to ensure proper alignment of the shelf angle, proper use of shim
plates and proper torque of

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Fig. 3 The Detail Alternatives for The Shelf Angle Attachment

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Fig. 4a Example Application a Reataining wall (ref.15)

Item Detail A Detail B %Different
Formwork $6072.94 $3799.48 37.40
Concrete $5477.68 $5755.18 4.82
Stop Bar $1226.35 $835.16 3.10
Kicker $1117.46 $0.00 0
Reinforcement $11889.10 $11338.03 4.6
Scabbling $701.40 $465.16 33.6
Extra Tanking $403.20 $0.00 0
Total $26887.14 $22193.03 17.445
Fig. 4b Cost Comparison Between Details A & B (ref. 15)

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friction connection created by tightening the nuts on the anchor bolts (i.e. constructability).
The example considered has demonstrated how the selection of the type of attachment should be
performed with respect to constructability and performance, considering several aspects or attributes
based on design and construction knowledge. Therefore it is quite beneficial to base the selection on
a thoughtful assessment. A consultation will advise on the best alternatives and the results are
presented within three reports present the detail graphically as illustrated in Fig.3.
CONCLUSIONS
Design details for construction projects depends largely on skilled judgment that accounts all likely
variables. Much of this knowledge is held by experienced practitioners and is unlikely available to
inexperienced personnel.
The most optimal for improvement comes from exploring alternatives to the construction techniques
dictated by the engineer. Also the timely engineering information availability is a more serious
problem than understandability.
Constructability improvement in a project appears in the form of of construction-sensitive designs,
effective communication of engineering information, optimal constructor-originated techniques,
effective construction management standards and construction input to design.
Constructability improvement of a design detail in a project can be achieved by effective design and
construction integration. This requires either either the involvement of the construction experts from
the outset, with or making their knowledge available for design engineers. CADDS attempts to
provide the later alternative, capturing the knowledge and representing it in an efficient graphical
form to the user.
The potential uses of the prototype system for design detail assessment and selection are clearly
manifold, but most importantly, results of trails with users indicate that the concept provides a
disciplined method of transferring knowledge and expertise to young design engineers.
REFERENCES
1. Construction Industry Research and Information Association (CIRIA), “Buildability: An Assessment”
, Special Publication 26, 1983. UK.
2. Gray, C. “Buildability—the construction contribution. Occasional paper No. 29, The Chartered
Institute of Building 1983, England.
3. O’Connor J. and Tucker R., “Industrial Project Constructability Improvement”, Journal of
Construction Engineering and Management, vol. 112 1986.
4. Jergeas, G. “Detailed Design and Constructability” a Ph.D thesis, Civil Engineering Department,
Loughborough University, 1989, England.
5. Griffith, A., “A Critical Investigation of Factors Influencing Buildability and Productivity’’, A Ph. D
Thesis, Heriot-Watt University, Department of Building, 1984, UK.
6. Eldin, N., “Constructability Improvement of Project Designs”, Journal of Construction Engineering
and Management, vol 114 No. 4. Dec. 1988.
7. Clyde B. Tatum, “Improving Constructability During Conceptual Planning”, Journal of Construction
Engineering and Management, vol 113 No. 2. June 1987.
8. O’Connor J. Larimore M., and Tucker R.,“Collecting Constructability Improvement Ideas”, Journal
of Construction Engineering and Management, vol 112 No. 4. Dec. 1986.

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9. Mohan S “Expert Systems Applications in Construction Management and Engineering”, Journal of
Construction Engineering and Management, vol 116 No. 1990.
10. Alkass S “An Expert System for Earthmoving Equipment Selection in Road Construction” a Ph.D
thesis, Civil Engineering Department, Loughborough University, 1988, England.
11. Alkass S and Harris F “An Expert System for Earthmoving Equipment Selection in Road
Construction” Journal of Construction Engineering and Management, vol 114 No.3 1988.
12. Cornick, T. and Bull, S., “Expert Systems for Detail Design in Building ”, CAAD Futures ’87,
Eindhoven, The Netherlands, 1987.
13. Maver, T., ‘‘Software Tools for the Technical Evaluation of Design alternatives”, CAAD Futures 87,
Eindhoven, The Netherlands, 1987.
14. Gero, J., and Maher, M., “Future Roles of Knowledge-based Systems in the design process” CAAD
Futures ’87, Eindhoven, The Netherlands, 1987.
15. Jergeas, G. “Constructability: Definitions, Concepts and Principals” an internal report, Revay &
Associates, 1990, Canada.
16. Drysdale, R.G., Suter, G.T., Advisory Document, part 2 “Seminar on Brick Veneer Wall systems”,
sponsored by CMHC CCRB, ABGC, MBEC, OBEC, June 12–14, 1989.
17. Alkass S., Moselhi O and Abdou A. “An Integrated system to Aid Design Engineers in Selecting
Easy to Construct Design Details”, Civil-Comp 91, the Second International Conference of Artificial
Intelligence and Civil Engineering Oxford UK.

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A total cost performance index for buildings
M.J.Packham
Managing Associate, BWA Project Services, Bromley, Kent, UK
Abstract
This paper examines the concept of total cost in buildings and investigates the feasibility of producing
a Total Cost Performance Index. To do so it:
• Identifies the components of total cost and examines their units of measurement to ascertain
compatibility
• Investigates existing sources of information for each component
• Investigates the relative importance of the components one to another
The paper closes with an examination of outside factors impinging on total cost for which allowance
should be made in any model.
Keywords: Total Cost, Total Cost Performance Index, Initial Cost, Renewals Cost, Occupancy Cost,
Functional Use Efficiency/Cost.
1 Introduction
This paper is based on research originally carried out as part of a masters degree dissertation
submission. The original aim of the study was to examine the concept of ‘value’ in buildings with a
view to establishing an objective method for its assessment. Examination of various definitions of
‘value’ quickly established that to ascertain ‘value’ one must first be able to measure ‘cost’. The
whole emphasis of the study therefore changed direction such that it became an investigation of the
practicality and methodology of compiling what has, for the purposes of this exercise, been termed a
Total Cost Performance Index (TCPI) for buildings.
Having established the direction that the study was to take, the next task was to set parameters for
its

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execution. Thus it was decided that so far as was practical, existing bodies of information and
techniques familiar to the majority of property professionals should be utilised. By minimising
development costs and making ‘user friendly’ it was envisaged that any systems suggested by the
research would be more readily adopted by the industry than might otherwise be the case.
Finally, the methodology of carrying out the study itself was identified in stages as follows:
a) Definition of total cost
b) Identification of the components of total cost and examination of their units of measurement to
ascertain compatibility.
c) Investigation of existing information sources with regard to each of the components.
d) Investigation of the relative importance of the components one to another.
e) Investigation of the practicality of producing a model combining each of the components into an
overall measure of a building’s total cost.
f) Examination of outside factors impinging on the components
The remainder of this paper is presented broadly in line with this sequence.
2 Definition of Total Cost
Traditionally a building’s cost was thought of as the summation of land acquisition, construction and
finance charges together with the associated legal, agency and design fees. During the 1960’s and
70’s this definition was widened to include what came to be termed ‘life cycle costs’; these include
such regularly recurring items as fuel costs as well as intermittent costs for the replacement of
building elements at the end of their useful lives.
Subsequently the definition was broadened still further with Fuller, for example, [see Fuller R, 1982]
suggesting in the early 1980’s, that a more comprehensive approach’ also considers the
organisational costs of the users of a building and assesses the effectiveness and economic efficiency
of the facilities related to the functions of the user body’. This definition was endorsed in 1987 by
Ward [Ward R, 1987 b] who stated that the ‘one category of cost.....notably absent from most life
cycle analysis (was) the costs associated with performing intended occupancy functions and activities
within the facility’.
In a subsequent paper, Ward [1987 a] went on to define total cost as follows:

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Where the Total Life Cycle Cost (TLCC) is equated to the sum of
a) Initial (I) cost (eg: land, construction etc)
b) Operating (O) cost (eg: fuel, maintenance, renewals etc)
c) Functional Use (FU) cost (eg: the cost of organisational activity functions which are in essence an
organisation’s overheads or administration costs)
This definition forms the basis of the study although for discussion purposes the ‘O’ cost component
has been split to differentiate between renewals costs and occupancy costs.
3. Initial cost
When considering the cost of any article, the first thing that comes to mind is its purchase price
which is almost always expressed in terms of a lump sum. In the case of a building this remains
basically true. The purchase price is made up of four elements: land acquisition, construction, finance
and fees and it is not unusual for both land acquisition and construction to be expressed as lump
sums. They are however by their nature readily convertible into costs per unit of superficial area, in
the case of land usually per acre or hectare and for construction per square metre of built area.
Finance charges and professional fees are applicable to both land acquisition and building cost.
However, for the purposes of this study, they can be ignored as under the suggested method of total
cost computation (see Section 7), they would appear on both sides of the equation and by so doing
cancel each other out.
The cost of land varies considerably and depends on demand/supply, location and use. It can also be
highly volatile and thus information can quickly become dated. This is the biggest problem to
assembling a land value database. However, the Property Market Report [see Property Market Report
1990] has already gone some way towards providing such by publishing at six monthly intervals a
range of land values for different uses.
The information is however, regionalised rather than localised and would need to be updated more
frequently to be of use in this context. One suspects that the leading estate agencies already have
such information to hand, and the requirement is simply for it to be made more freely available.
With regards a construction cost database, the Building Cost Information Service (BCIS) has now
been in existence for more than twenty years. Over this time sufficient information has been received
for them to publish at three monthly intervals a Study of Average Building Prices

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(Section KB). The information provided covers a wide range of building types and sub-types and
these costs can be easily updated to take account of inflation, wage increases and the like using the
Building Cost Indices which are also published regularly by the BCIS. Similarly, regional variations can
be catered for by using their location factors and as an added refinement, it is also possible, knowing
the quality of the building required, to assess its cost against, for example, an upper percentile rather
than the mean.
4. Renewals Cost
The term ‘renewals’ is used here to describe those intermittently recurring costs associated with the
replacement of items at the end of their useful lives. The number of components subject to such
deterioration is quite considerable particularly if the measure is over physical as opposed to functional
life. Indeed, the only items not likely to require replacing are the foundations and the structural shell.
Valuation of the cost of renewals is an integral part of life cycle costing and has therefore been
known in this country for over twenty years. The technique has not however, been so widely adopted
in this country as it has in the United States and consequently there is a shortage of suitable
published information.
The procedure involves the summation of the present values of the replacement costs of each
component over a building’s life. Thus, for example, taking a component with an average life of
fifteen years and a replacement cost of £10,000 in a building with a physical life of sixty years, the
renewals costs would be calculated as follows.
Year Present Value Factor at a Discount Rate of 10% Replacement cost Present Value
£ £
15 0.2394 10,000 2,394
30 0.0573 10,000 573
45 0.0137 10,000 137
Renewals Cost £3,104
For a particular building, derivation of the information required to carry out this exercise is relatively
simple. The replacement costs can be extracted from the estimate prepared to arrive at the
‘construction’ cost whilst the component lives can be derived from any one of a number of

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published sources [for example see ‘Life Cycle Costing’ Dell Isola A J and Kirk S J 1983].
To arrive at the overall renewals cost this exercise is repeated for each item that will require
replacement over the building’s life.
Renewals cost is therefore, as with initial cost, normally expressed as a lump sum at to-day’s date
and is similarly easily convertible to a cost per superficial unit usually per square metre of built area.
5 Occupancy Cost
In his book ‘Premises Audits’ Bernard Williams [Williams B, 1988] describes occupancy costs as ‘the
total cost of running, maintaining and modifying the fabric and services of a building excluding rent,
building rates and major works for fitting out and replacement of components’. From this it is clear
that occupancy cost is a term used to describe items which recur regularly throughout the life of a
building as a result of its use; these include
(a) Energy—eg: for heating, lighting etc,
(b) Cleaning—eg: daily office cleaning, window cleaning etc.
(c) Maintenance—costs associated with maintaining the building at its current standard
(d) Service Charge—this cost centre relates primarily to leasehold premises and varies considerably
from building to building, and from landlord to landlord. Items allocated to it typically include,
for example, cleaning of common areas such as staircases and toilets.
(e) Security—again highly variable being dependent on individual organisations and their security
requirements which can range from a simple door answer phone system through to sophisticated
anti-intruder devices.
(f) Insurance—cost varies according to type of cover required
(g) Fitting out—this cost centre does not usually appear on the list of occupancy cost categories. It
is included here to cover those minor enhancements which every building occupier carried out
(eg: minor partition alterations) but that do not readily fall into either the maintenance or
renewals categories.
Once allocation between cost centre has been decided it is a relatively easy exercise to calculate
annual costs for each of them and derive the total occupancy cost for the building. If required this
can then be converted to an annual cost per superficial unit of built area.
Several databases of occupancy cost are published but probably the best known is that produced by
Building Maintenance Information Ltd (BMI) in the form of their

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‘Study of Average Occupancy Costs’. Whilst not as detailed as the Average Building Prices published
by BCIS, they do form an adequate benchmark against which comparison can be made if required.
There is also the added advantage that update indices are published at regular intervals.
Other databases are published by leading estate agencies (eg: Savills and Jones Lang Wootton) but
these primarily relate to office occupancy costs.
6 Functional Use Cost
Functional use costs are essentially human costs ie: staff salaries, but they also include the materials
and other items required to perform the function of an organisation using a building. They constitute
in most instances the largest component of total cost as was strikingly demonstrated by R. Ward
[1987 b] in his paper ‘Office Building Systems Performance and Functional Use Costs’ which shows
that they can outweigh the combined total of initial, renewal and occupancy cost by a ratio as high
as 9:1. Despite this very little cost information has been published on this subject primarily owing to
major difficulties in devising a system for its assessment.
Measurement of functional use efficiency (and hence cost) is highly problematic as it requires the
analysis and assessment of subjective or intangible concepts which cover a wide spectrum of
different topics; some examples of these would include:
(a) Increased productivity arising from better lighting
(b) A poor location which makes it harder to get suitable staff unless premium salaries are paid
Methods have been devised that suggest such assessment is possible and one such is contained in
the ORBIT-2 report.
This looked at trends in organisational change, information technology and building design and
technology. It identified seventeen key issues relating to them and then devised a points system (ie:
1–9 with 9 being the highest rating) to enable an organisation to objectively and consistently rate a
building in terms of how well it performs in resolving these issues. It went on to identify six aspects
from which each of these issues should be viewed.
This resulted in a matrix arrangement which, it is suggested, could be modified to provide a method
of assessing functional use cost. The suggested modified matrix structure is shown overleaf. It
attempts to demonstrate that the relative importance of each ‘aspect’ within an ‘issue’ varies and
that in some instances a particular aspect is not relevant to a specific issue. Additionally, it should be
recognised that any calculation of Functional Use Cost must also provide for a ‘weighting’ of the
‘issues’ one to another.

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Location & Bldg Shell Major Bldg. Local Dist’bn of Fit Office
Tenure +Form Serv. Serv. Out Furn
Organisational Issues:
• Change of Staff size * * * + + +
• Attract/ Retain * * N N * +
• Communication of N * + N * *
Status
• Relocation of Staff N + * * * **
• Informal Interaction * * N N * *
• Human Factors N N * * + +
• Outside Image * * N N * *
• Security * * + + * *
IT Flexibility + + * * + +
• Key: * Important
+ Of less importance
N Not applicable
(Note: The ORBIT-2 study was sponsored by eighteen major North American organisations and was
carried out by representatives of three consultant firms: Facilities Research Associates, Ithaca, New
York, DEGW, London and the Harbinger Group, Norwalk, Connecticut—Summaries of these reports’
findings can be found in ‘Growing Concerns [Duffy F and Stansall P, 1985] and ‘ORBIT-2 Know Your
Buildings IQ’ [Duffy F, 1985]).
7 Computation of Total Cost
In summation of Sections 3–6, it can be seen that as one progresses from Initial through to
Functional Use cost the body of information available reduces dramatically such that, for the latter,
there is no recognised method of calculating quantum. Section 6 does however demonstrate the
feasibility of producing a suitable method of measurement.
The following table lists each component of total cost and the units by which they can be measured.
In so doing it clearly shows the lack of compatibility between them.

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Component Unit of Measure
Initial Cost [ £/hectare (Land)
[ £/m2 (Building)
Renewals Cost £/m2
Occupancy Cost £/m2 per annum
Functional Use Cost Points rating
To overcome this it is suggested that each component could be converted to an index. For Initial,
Renewals and Occupancy cost this can be done by comparison with a base derived from published
data. Thus, for the land acquisition element of Initial Cost the price paid for the site would be
converted to a cost per hectare. This would then be divided by a current average price per hectare
extracted from a database of localised land values and multiplied by 100 to give a Land Index ie:
(An Index of less than 100 would therefore indicate that in terms of the Land component of its total
cost the building performed better than the average).
A similar exercise could then be undertaken to derive a Construction Index for the building element
of Initial Cost using the Study of Average Building Costs and adjustment indices published by BCIS as
demonstrated below.
The Land and Construction Indices would then be combined using a weighting to produce the overall
Initial Cost Index.
For Renewals and Occupancy Costs similar procedures could be adopted to convert them to Indices.
However, for renewals costs, there are no published averages with which to make comparison and it
would be necessary to create a ‘designer’

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average for the type of building being examined. This could be done by selecting a representative
sample of say ten buildings from the cost analysis also published by BCIS. This would be a relatively
quick exercise once a standard spreadsheet had been set up on a computer although in some
instances the cost centres contained in the analyses require further splitting down to get to the pure
renewals costs. For example, the roof element combines the cost for both the roof structure and roof
finishes and whilst the latter will require renewal, the former will not.
With regards functional use cost the position is different in that it has been suggested, in the
absence of published information, that it should be measured against a points rating system. A pro
forma similar to that shown below could therefore be used to convert it to an index using the criteria
for scoring and weighting as already briefly discussed in Section 6.
Issue (a) (b) (c) (d) (e)
*Average Score (1–9) Actual Score (1–9) Issue Weighting (a)x(c) (b)x(c)
Staff Size Change 5
Attract/Retain Workforce 5
Comm. of Hierarchy 5
Relocation of Staff 5
Informal Interaction 5
Ambient Environment 5
Image to Outside 5
Security 5
IT Flexibility 5
(* On a points rating system of 1–9 this will always be 5)

The indices derived for each of the four components of total cost would then need to be combined to
produce the Total Cost Performance Index that is the subject of this paper. Again, it is suggested
that this would best be carried out using a weighting system and the somewhat sketchy information
currently available seems to indicate an average

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ratio, for example, for offices of I (Construction cost only?) :O:FU of 5:5:90. A suitable pro forma is
shown below.
The procedures proposed in this Section may appear cumbersome. It is believed however that they
are far more difficult to describe than to actually carry out. No complicated mathematics are involved
and the use of a computerised pro forma would drastically cut calculation time.
8 Other Factors to be Considered
Any model must make allowance for all outside factors which can impinge on the components from
which it is derived. In the case of the TCPI these can be grouped under three main headings:
– Client Type
– Taxation and Grants
– Depreciation/Obsolescence
8.1 Client Type
In their report ‘The Performance Evaluation of Office Buildings’, G. Williams and B. Middleton [1987]
identify four major client groupings:
Client Types – Developer/Trader
– Investor
– Owner/Occupier
– Tenant
Each of these groups clearly have different expectations from a building and the same building will
therefore in all probability have four different Performance Indices.
To the developer/trader buildings are simply merchandise and he is primarily interested in the
difference between acquisition cost and the anticipated market value. Traditionally this type of client
has paid little attention to the occupancy costs of his buildings and none to their

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functional use costs.
The investor judges a building against different criteria and looks to long term security rather than
short term profit. He is therefore primarily interested in long term performance both as a means of
providing some protection against inflation and as a method of increasing capital value through
rental growth. To achieve the desired high levels of rental growth the property must therefore be
capable of attracting and keeping tenants.
Of the four client types identified, the owner-occupier is the one most likely to be interested in all of
the components which go to make up total cost. His interest is not limited to his initial expenditure
but extends to the use to which the building can be put and its functional efficiency in executing that
use.
The tenant takes a radically different view from his counterparts. In this case initial cost is of no
importance and the model must be flexible enough to reflect the switch of interest to rental levels.
Many of the countries leading agencies publish information on rental levels and thus the compilation
of a database to enable inclusion of rental in any model would not be too difficult.
In addition to the four main client groupings, it is suggested that further client classification should
be incorporated into the model to distinguish between the public and private sectors which it is felt
can sometimes take differing viewpoints.
8.2 Taxation and Grants
The world of taxation is a complex one. Fortunately, the working of the system itself simplifies
matters considerably as it is geared primarily to the status of the individual or company rather than
to that of any building which they might own. On this basis the aspects of taxation that do need to
be considered can be limited to Capital Allowances and Value Added Tax.
Capital allowances only apply on new buildings in a small number of strictly limited instances. More
importantly however, they are also claimable in a large proportion of cases on ‘plant and equipment’
which, because it can amount to a considerable portion of a buildings initial cost, can be highly
valuable.
For most organisations VAT is simply a book-keeping exercise, however some organisations, eg:
charities and institutions are either partially or completely exempt from the VAT system and thus any
VAT paid cannot be reclaimed. Another factor for consideration is that under the current VAT system,
listed buildings are zero-rated; as existing buildings they would normally attract VAT at the standard
rate. More recently new legislation has introduced the concept of the ‘Option to Tax’ which gives the
right, subject to certain exemptions, to elect to waive exemption from VAT on otherwise exempt
supplies of interests, etc in land. This has complicated the matter quite considerably

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and makes the inclusion of VAT in any model that much more difficult.
So far discussion has essentially been limited to the effect of taxation on ‘initial’ cost but as will be
realised it is equally applicable to both ‘renewals’ and ‘occupancy’ cost. With regard to the latter,
amounts spent on maintenance, repairs, heating, lighting and the like are regarded as business
expenses and as such are deductible from profits before the application of tax. They are, therefore,
effectively tax free. For ‘renewals’ costs, capital allowances are available for the replacement of plant
and equipment, on a similar basis to that outlined above.
These comments are made in relation to standard rate tax payers. There are of course many
variations primarily dependent upon the tax status of the organisation concerned and any model
must be flexible enough to incorporate all permutations.
Whereas the world of taxation confuses by its complexity that of grants can bewilder by its sheer
variety. This is demonstrated by a quick look at FRED (Financial Resources for Economic
Development) [Institute of Local Government Studies, 1983–88], which shows that not only is there
a wide variety of assistance on offer, but that it is available from a number of different sources.
Despite the number of grants available, the majority of projects go ahead without any assistance,
even so it is suggested that it would be prudent to make provision for them in any model.
8.3 Depreciation and Obsolescence
As buildings grow older they depreciate and as a consequence do not perform so well financially.
Thus, as buildings age rental growth slows and the increased requirement for repairs leads to
unexpected capital costs. It can be seen therefore that depreciation is as much part of a building’s
total cost as its construction or occupancy cost.
Depreciation and obsolescence are sometimes regarded as being synonymous, however, more
correctly, depreciation of an asset arises directly out of its use over the passage of time, whereas
obsolescence results from changes external to the asset itself. Thus, an asset may not have
depreciated but it could have been rendered obsolete by, for example, technological change.
The study ‘Obsolescence—The Financial Impact on Property Performance’ [Jones Lang Wootton 1988
a] dramatically demonstrates the effect of obsolescence by suggesting that the rate at which an
ageing property’s equivalent rental value falls behind full market rates can be as much as 2.7% per
annum.
When considering depreciation and obsolescence it is important to remember that we are dealing
with two assets. For the building any model must take cognisance of its propensity for:

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(a) Physical deterioration
(b) Obsolescence – Economic
Functional
Aesthetic/Visual
Legal
Social
Environmental
For land, the factors to be considered are more complex and could include, for example, the effect
of:
(a) A relaxation of planning controls
(b) Tax changes and incentives or grants
(c) Population changes
(d) Changes in levels of economic activity
(e) Changes in industrial operational methods
(f) Social change
(f) Infrastructure change
From the above it should be clear that the majority of factors affecting depreciation and
obsolescence are subjective or intangible and as such are difficult to measure for inclusion in any
model.
However rates of physical deterioration can be controlled by use initially of a high standard of
materials and regular and thorough maintenance procedures. These measures would almost
inevitably lead to higher initial, renewals and occupancy costs and would therefore be catered for by
the mechanisms described in Section 7 for these components of total cost.
Similarly buildings with an in-built high degree of flexibility will be able to accommodate change more
readily and as such will be more resistant to becoming obsolete. Flexibility is of course a key
component in the assessment of functional use cost as demonstrated by Section 6.
9.0 Conclusion
As stated in the introduction to this paper, its contents are based on research originally carried out
as part of a masters degree dissertation. Obviously this original document was much longer and I am
conscious that, in attempting to abbreviate it, certain areas may appear to have been dealt with
superficially. Hopefully however it has been clearly demonstrated that production of a means of
measuring a buildings total cost is feasible.
It is suggested that the most appropriate method of deriving such is by means of a weighted index,
primarily as this overcomes the problem of compatibility between the units of measure of the four
identified components of total cost.
Finally, whilst the paper ascertains that the production of a model to calculate total cost is possible it
also identifies areas where further major research is required if it is to become a reality; these relate
specifically to:

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(a) Measurement of functional use cost
(b) The weighting of the components of total cost one to another
References
Building Cost Information Service [1988.a] Study of Average Building Prices, Building Cost
Information Service, Kingston-upon-Thames
Building Cost Information Service [1988b] Regional Trends, Building Cost Information Service,
Kingston-upon-Thames
Building Maintenance Information [1985] Study of Average Occupancy Costs, Building Maintenance
Information Ltd, Kingston-upon-Thames
Dell Isola A J & Kirk S J [1983] Life Cycle Cost Data, McGraw Hill book Company Inc. USA
Duffy F [1985] ORBIT 2—Know Your Building’s IQ. Facilities (Volume 3 No.12) December 1985 pp
12–15
Duffy F & Stansall P [1985] Growing Concerns, Designers Journal, Octoner 1985
Fuller R [1982]—Life Cycle Costing, A Comprehensive Approach, in P S Brandon, editor Building Cost
Techniques: New Directions, E&FN Spon Ltd, London
Institute of Local Government Studies [1983–1988] Financial Resources for Economics Department,
Institute of Local Government Studies, Birmingham
Jones Lang Wootton Papers [1988a] Obsolescence, the Financial Impact on Property Performance,
Jones Lang Wootton, London
Property Market Report [1990] Property Market Report Autumn 1987, Valuation Office Inland
Revenue Surveyors Publications, London
Savills [1987] Property Management Cost, Savills, London
Ward R [1987a] an Economic Framework of Total Functional Value for Advanced Comfort Systems,
Massachusetts Institute of Technology USA
Ward R [1987b] Office Building Systems Performance and Functional Use Costs, Paper All
Proceedings of the Fourth International Symposium on Building Economics, Danish Building Research
Institute, Copenhagen, Denmark
Williams B [1988] Premises Audits, Bulstrode Press, London

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CHAPTER THREE
‘Project Management today must operate in a complex constraining, and uncertain environment. As a
result, the project management task is itself more difficult and complex. In this more complex
environment control is today treated in its broader context of the planning and monitoring of the
total project process.’
P.W.G.Morris

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Construction contracts and risk
R.F.Gibson
Department of Civil Engineering, Paisley College, Scotland, UK
Abstract
This paper examines traditional contract approaches to risk apportionment. The ideas of risk
management are examined leading to a discussion of an approach to determine an expected value
for the contract sum and the contract duration based on frequency distribution.
Keywords Risk management, Contract Risk Simulation
1 INTRODUCTION
The construction of a building to a defined price, time and quality is a complex risk activity, requiring
organisational skills, knowledge, time and resources outwith the possession of the average person or
organisation ie the ‘‘promoter” or “employer” who requires the building. Thus, the promoter requires
a builder or a “contractor”. However, by relying on a builder to deliver the building to cost, time and
quality the promoter requires a contract to protect his objectives. Likewise, the builder requires a
contract to ensure payment.
It is perhaps worthwhile considering the uniqueness of a construction project. Even if the
superstructure is identical to previous projects the substructure may well be different. The logistics
involved with acquiring resources to time, price and quality will be different. The climatic, political
and economic regimes may be different. Finally, the contractors organisational team and sub-
contractors may also be different. But of course superstructures are rarely identical, so in addition to
the above risk factors can be added all the risks associated with the construction of a prototype. A
thorough analysis of the distinctiveness of construction projects can be found in Hillebrandt (1974).

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2 Building procurement models
Due to the technical complexity of both building design and construction the delivery of a building
requires three distinct rôles, a promoter, a designer and a builder. However, these rôles may be
separate or combined. From this five procurement relationships result as shown in figure 1:
Traditional
Design and Build
Self Build
Employer Designs
Kit Build
Figure 1 Procurement Relationships

However, it should be noted that not all yield contracts between a promoter and builder. For
example, Self Build generates no contracts while Kit Build involves a sale of goods. Interestingly, if
the delivery of a building is considered as an organisational process a fourth factor, management, is
required. This in turn yields procurement types such as:
Project Management
Management Contracting
Construction Management
These procurement models with their emphasis on ideas such as the management of the
construction process and the need for single point responsibility are thought to be more suited to the
achievement of the goals of cost,

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time and quality (Franks 1990).
3 Contract type and the determination of the contract sum
The law of contract suggests that the price to be paid is agreed between the contracting parties at
the time of contract. However, because of the difficulty in determining, even in the most carefully
planned project, either the quantity or quality of work actually to be undertaken or because
construction must commence prior to completion of design, the contract sum to be paid may be
either unknown or different to that agreed at the time of contract signing. Because of the difficulty of
the promoter and his design team being able accurately to determine the quality and quantity of the
contract works at the time of contract signing a number of contract types have been designed to
address this problem:
Fixed price contracts
Lump sum: This is the only contract which yields the final contract cost at time of signing. Once
signed such contracts do not permit design changes. Normally, these are only suited for small works.
Measurement: This is a fixed rate based on items in the bill of quantities and thus produces a
contract sum. However as the total quantity of work as built is usually different to that in the
contract documents the contract sum incurred by the employer may well be different from that
produced at the contract signing. These contracts permit variations in bill items and thus offer a
mechanism for design changes.
Schedule of rates: This is a fixed rate for what at the time of contract signing are undetermined items
and quantities. Associated with this type of contract is an approximate quantities contract. These
contracts can be used for maintenance where the scope of the works will often be very uncertain.
Neither of these produce a contract sum.
Cost reimbursement contracts
Cost+fixed fee: This is the reimbursement of all the prime costs for labour, plant and materials
incurred by the contractor plus a fixed management fee for overheads and profit.
Cost+% fee: As above except the management fee is a percentage of contract costs.
Cost+fluctuating fee: As above except the management fee varies with performance. The fee
becomes a target increasing inversely with contract

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costs.
Cost reimbursement contracts enable construction to commence in parallel with design (Griffis,
1988). However this demands that the employer must sanction the use of cost, time, resources by
the contractor. In such contracts the employer has an adminisrative burden and carries considerable
risk. Nevertheless, cost reimbursement contracts when used in conjuction with construction
management enable ‘Fast Track’ construction (Sabbagh, 1989).
Bill of Quantities contracts extend project times and costs by placing design and construction in
series, and construction costs are further increased by the production of a bill. Furthermore, all
contractors competing for a tender incur estimating costs, thus, as a result, national construction
costs are increased. Nevertheless, this traditional type of building contract is popular with employers
as they feel it offers a rational basis for competitive comparison of tenders and minimises contract
risk. However, because contractors often have to produce tight margins to win contracts they then
attempt to augment the contract sum by subsequent claims; for example, loss and expense on the
inevitable variations (Horgan & Roulston, 1988). The British Property Federation (BPF) in the manual
to their own contract form produce a powerful critique of this traditional contract form. The BPF say
that traditional procurement methods result in poor design, inadequate supervision, insufficient
choice of materials and increased costs and time delays. Furthermore, the use of a bill of quantities
apart from being time consuming may even dictate the design. Finally, the BPF claim that traditional
methods lead to a confrontational attitude between employer and contractor. Later in this paper, an
alternative approach to fixed price contracts will be considered. This new approach, which is based
on the uncertainty of the construction process, will develop expected values for contract sum and
contract duration.
4 Risk and ‘Consensus in Idem’
A fundamental principle of the law of contract is that of ‘consensus in idem’ ie both parties must
understand and agree to the same terms (Burns, 1966). This should mean both parties agreeing to
the same price, time and quality. However, when drawing up the contract the potential risk should
be identified and apportioned between builder and employer. If this can be done it will be an
important safeguard as it prevents the employer from resorting to expensive arbitration or litigation
and enables the builder to produce a

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competitive yet profitable contract sum. The contract sum determined by a contractor is priced on
the basis of resources (labour, materials, plant) overheads, profit and a margin for risk. Standard
contract forms do much to state risks and to state which party is liable for carrying the risk. For
example, contract forms state what procedures are to followed if antiquities are encountered or war
is declared. In addition, the Standard Method of Measurement in conjunction with the Common
Arrangement of Work Sections provides a risk reduction rôle; for example, excavation rates are based
on a particular soil type and ground water level. Thus all contractors pricing a contract can in theory
do so with a much clearer idea of the construction liability to which they are exposing themselves.
Likewise, the employer will get a better idea as to the financial liability to which he will be exposed.
It is worth noting that this reliance on legal obligations for building delivery is not universal. For
example, Japan, with a population about twenty five times greater than that of Scotland and with a
construction output which is about thirty four times greater than Scottish construction output, is
reputed to have roughly the same number of lawyers as there are in Scotland and no quantity
surveyors!
5 Types of contract risk
Contract risk has been classified by Jones (1980) into four useful categories:
Fundamental Risk—catastrophes affecting society eg War damage, Nuclear fall out, supersonic bang
damage. JCT 80 Clause 21.3 defines risks such as Nuclear fall out as ‘excepted risks’. These risks are
not borne by the contractor. In these cases the promoter would presumably seek recompense from
the government.
Pure Risk—these are risks related to projects eg fire, lightning, storm. As with fundamental risk the
probability of occurrence is slight. JCT 80 Clause 22 deals with these by requiring either party to fully
insure against their occurring. Such risks are readily and cheaply insured commercially.
Particular Risk—These are associated with specific construction activities eg collapse, subsidence,
vibration, lowering of ground water level. Again this is a risk which is a potential loss to the
contractor. JCT 80 Clause 21.2 requires the contractor to formally maintain insurances in the joint
names of the parties.
Speculative Risks—eg ground conditions, weather, inflation, material supplies, technical risks. These
are risks which offer the possibility of profit rather that just loss to the contractor. Thus a skilful
contractor

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should be able to use this risk to his advantage. These risks are best dealt with by careful pre-
contract planning and the production of clearly thought out method statements.
6 Principles of Risk Management
This is a relatively new aspect of construction management but it offers considerable potential to the
construction industry. Traditional tendering procedures by contractors have concentrated on
determining the cost, time and resources of a project. With Risk Management rather than pricing the
cost of putting a nail into a wall the potential liability and associated probability of risk, of the task
must be identified. Such an exercise might well identify possible risks such as, power cuts, damaged
plaster, burst pipes or even death. It can be seen from these simplistic examples that the
establishment of Health and Safety requirements for a safe system of working is merely a subset of
risk management. The production of a successful method statement by a contractor may well depend
on the conscious or subconscious application of risk management principles. It can be seen that if
risk management is important to successful new build it may also be crucial to other building
activities such as refurbishment.
The principles of risk management were summarised by Perry (1986) as follows:
Identify risk sources
Identify risk effects
Identify risk probabilities
Minimise risk
Of these the minimisation of risk is the approach which develops a risk reduction strategy. If the risk
of winter building operations is considered, a risk reduction strategy would have three options:
avoid risk, eg no winter building;
carry risk, eg invest in winter building equipment;
contract out risk, eg engage a subcontractor for all winter building activities thus transferring winter
building risk to the subcontractor
In essence, the greater the risk borne by the contractor, the greater the required financial return by
the contractor. For example, in the world of business, the lowest commercial return is that obtained
on UK gilt edged stocks. Because of their certainty of income payment they are considered as risk
free investments. Thus no construction project should have a yield which is

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less than that obtainable from a gilt which will be redeemed by the end of the contract period.
However, as most projects have risk, the return sought by a contractor should be considerably in
excess of that of gilts. The establishment of a risk/return relationship is a worthwhile exercise for all
involved with the construction process. The simple interpretation of this is that the greater the
contract risk the greater the margin of safety in pricing the tender by the contractor Much useful
work on risk return has been developed in what is known as portfolio theory (Lumby, 1984).
Unfortunately, the competitive world of construction contracts prevents contractors adopting risk
return theories when pricing contracts, thus competitive contract bids expose contractors to an
inadequate risk return relationship. When this is allied to a capital structure which is often under
capitalised we see how exposed the contractor is to a cash flow haemorrhage and a possible
liquidation.
7 Contract cost time relationship
The cumulative cost time relationship of a contract can be represented by the contract S-curve, as
shown in figure 2. The vertical axis is cost and the horizontal axis is time. The bottom of the S-curve
starts at the
Figure 2 Contract S-curve

origin while the top of the S ends at the coordinates of contract completion and contract sum. In bill
of quantities contracts, quantity surveyors have produced these graphs from monthly measurement.
In an effort to reduce these monthly costs of measurement incurred by the employer much work has
been done on developing mathematical functions to generate the S curve (eg. Tucker, 1988;
Miskawi, 1989). However, the concentration on the determination of the S curve may be criticised
because:
a A linear function in most cases would be a reasonable approximation of the cost time relationship.
The error which will arise will be an

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element of front end payment to the contractor thus reducing cash flow risk.
b It does not tell us a great deal about contract risk.
c It concentrates on the rate of payment rather than the range of likely values for contract sum and
duration.
8 Determination of contract sum and duration based on uncertainty
A criticism of the fixed price building contracts is that their emphasis on contract sum and duration is
too deterministic. Construction projects are based on many activities. Each of these activities will
have a variety of risk factors yet traditional approaches to estimating tend to concentrate on a
mechanistic determination of a specific value for activity cost, time and resources. From this, an
overall project cost and duration can be obtained. No wonder that if built on running sands the
building may well fall down!
Perhaps as construction professionals we should look at the Uncertainty Principle of our physicist
colleagues. In essence, Heisenberg the author of the Principle said that the deterministic model of
the atom with a nucleus of so many positive protons with an equal number of negatively charged
electrons orbiting the nucleus was misleading. All that can be said is that the parts of the atom have
probabilities for position and charge. Thus in physics measurements cannot be made with certainty.
If construction is viewed from the standpoint of uncertainty then it can be seen that project activities
have a range of costs and durations. Thus when these activities are aggregated the resulting values
for project cost and duration inevitably yield a frequency distribution giving expected rather than
specific values for project cost and duration.
In order to arrive at these distributions the following procedure similar to that used by Bowers
(1988) can be adopted:
a Determine project activities
b Determine project network in arrow diagram or precedence form
c For each activity produce the following matrix of activity cost time estimates. It should be noted
that three estimates should be obtained for each component. Although similar to the Project
Evaluation Review Technique it is different.

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Activity Cost Time Estimate Matrix
Activity Optimistic Likely Pessimistic
Duration Days Days Days
Variable Cost £/day £/day £/Day
Fixed Cost £ £ £
d. Using a computer simulation based on random values of these activity cost and time estimates,
discrete frequency distributions for project cost and time can be produced. These distributions will
probably be skewed and may even be bimodal.
Thus, by estimating possible values of activity cost, time and resources, the project cost and
duration, can be predicted within confidence limits in terms of probabilities rather than unrealistic
certainties. In addition, because cost is recognised as having fixed and variable characteristics, this
technique assists with marginal analysis of projects. Similarly, a sensitivity analysis can be undertaken
to determine those activities which cause the greatest change in either project cost or duration.
However, the greatest potential in modelling project parameters lies with the application of Expert
systems and in particular the representation of activity probabilities using fuzzy set theory (see Alty &
Coombs, 1984).
It may seem that this approach requires complicated computing. However, computer simulation of
project parameters is much more straightforward than the computerised 3D visualisations or finite
element analyses of structural and thermal performance which increasingly are becoming an
accepted part of the design stage. Finally, it may be contended that computer simulation of the
project parameters, apart from being easier to understand, are possibly far more cost effective than
other types of design stage computer software.
9 Other methods to safeguard against project risk
Three other methods are possible to indemnify the employer against delivery of a project with
unsatisfactory time, cost and quality parameters. These are:
Performance bonds
Professional Indemnity
Collateral Warranties

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All of these are legalistic and based on deterministic models of contract performance. The cost of
these are borne by the construction industry and thus ultimately the consumer.
10 Conclusion
Construction projects are risk exercises involving the management of uncertainty. They require
considerable manhours of organisational activity, decision making and communication between an
employer, designer and contractor. The law of contract, rather than assisting directly with this
complex exercise, tends to offer the promoter a basis for subsequent litigation in the event of any
default. As a consequence, it is argued, that perhaps the current legalistic and often adversarial
framework existing between the promoter, designer and contractor could be replaced by one which
places emphasis on ethics and uncertainty, rather than jurisprudence based on certainty.
11 References
Alty & Coombs (1984) Expert Systems Concepts & Examples, NCC Publications, Manchester
Bowers J (1988) Project Risk Analysis, Paper to Institute of Mathematics and its Applications,
Glasgow College
British Property Federation (1983) Manual of the BPF System
Burns C (1966) Commercial Law of Scotland, Hodge & Co, Edinburgh
Franks J, (1990) Building Procurement Systems, CIOB
Griffis FH, (1988) Case for Cost-Plus Contracting, Journal of Construction Engineering and
Management, 114, 83–94
Hildebrandt P, (1974) Economic theory and the Construction Industry, MacMillan
Horgan & Roulston, (1988) Project Control Spon, London
Jones GP, (1980) A New Approach to the 1980 Standard Form of Building Contract, The
Construction Press, Lancaster
Lumby S, (1984) Investment Appraisal, Van Nostrad Reinhold, London
Miskawi Z, (1989) An S-curve equation for project control Construction Management and
Economics, 7, 115–124
Perry, (1986) Dealing with risk in contracts, Building Technology and Management, April 1986
Sabbagh K, (1989) Skyscraper the making of a building, MacMillan, London
Tucker SN, (1988) A single alternative formula for Department of Health and Social Security S-curves

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Construction Management and Economics, 6, 13–23

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Constructability and the conceptual design
K.Th.Veenvliet and H.G.Wind
University of Twente, Civil Engineering for Technology and Management, Enschede, The Netherlands
Abstract
Input to all project phases of both the ability to construct and the importance of construction, in
particular the conceptual design phase, is one of the factors which leads to an optimal use of
available knowledge, money, and time, in respect of functionality, safety, durability (see also Tatum,
1985). In order to be able to integrate constructability in the design phase the present management
methods often fall short. Usually selection of alternatives is based upon decision methods and
decision techniques like ‘rating and weighting’ method, ‘datum’ method (Pugh, S.), etc. The
shortcoming of these methods is that constructability is but one of many selection criteria and allows
constructability only partially to take into account. The use of grouped criteria such as is the case for
the s-diagram, Kesselrings method, seems more appropriate for this aim.
In this paper an analysis is made of the proposed theoretical concepts and a study is presented of
the conceptual design process of seven large civil engineering construction designs. Particular
attention is paid to the suitability of the proposed selection methods in design management, as far as
constructability is concerned. It is found that in the conceptual design phase four steps can be
envisaged: selection of alternative designs, selection of feasible designs, selection of promising
designs, preparation of conceptual designs. The decision methods applied in the first three steps are
rather simple. In the investigated projects, constructability was assured, because of the design and
construct approach.
Keywords: Constructability, Conceptual design, Decision methods, Decision techniques.
1 Introduction
In the (conceptual) design process of buildings and structures use is made of various sources of
information. One of these sources is constructability. Jortberg (1984)

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describes constructablity as ‘construction knowledge and experience in planning, engineering,
procurement and field operations’. This definition contains a management aspect and a constructive
aspect. The management aspect deals with topics as project plan, major construction methods, lay-
out of the site, logistic problems, entrances to the site etc. The constructive aspect is related to
mechanical and material aspects of building. In a (conceptual) design process both management and
constructive elements are important. This importance is highlighted in the study of Tatum (1985),
where he finds that introduction of constructability in all phases of the design will lead to optimal use
of available knowledge, money and time in respect of functionality, safety and durability.
In order to be able to achieve such high standing objectives, designers have various methods at
hand. First, there are a series of management guidelines as outlined in Tatum (1985) to assure
constructability input. Second, a wide range of decision methods, for instance the ‘rating and
weighting’ method and the ‘datum’ method, is available for the designer to support the decisions he
continuously has to make. A shortcoming of these methods in projects where constructability is a
major issue, is that constructability is only one of many selected criteria and allows only partially to
take constructability into account. In chapter two of this paper this topic is taken up again.
In 1990 a unique opportunity was offered to study the use of selection methods and the input of
constructability in civil engineering design. The Minister of Public Works of the Netherlands invited
five contractors to develop a competitive design and give a price for a storm surge barrier near the
port of Rotterdam.
As one of the contractors presented two designs and the Public Works Department developed a
‘shadow design’. A total of seven conceptual designs were presented.
In this paper an investigation is presented of the selection methods used by the various design
teams. In chapter two an outline of these methods is given. In chapter three the storm surge barrier
project is presented. The steps in the design process and the selection methods of the seven design
teams are presented in chapter four, with particular emphasis on the input of constructability. Finally
some aspects of the selection of the ‘most suitable’ design are given in chapter five and the paper
ends with a discussion. This study confirms the statement that in order to realize the opportunities
for constructability improvement, owners must insist on it and contractors must compete on it.
2 Theoretical framework
In the design process continuously decisions have to be taken. In 2.1 the steps in such a decision
procedure are

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briefly recalled. A key issue in the design process are criteria and their rating scales. This topic is
treated in 2.2. A birds eye view of decision methods in the design process is given in 2.3, followed in
2.4 by a discussion on the input of constructability in the decision methods discussed before.
2.1 Strategy of the evaluation of alternative designs
The importance of a structural description of the selection of ‘the most suitable’ design, in particular
for complex problems is pointed out by various authors, e.g. de Boer (1989). He describes the
following seven-step pattern to evaluate ‘few-alternatives’.
0 Include ‘ideal’ and/or reference alternative(s) if needed;
1 Establish criteria, including their rating scales.
2 Establish weighting factor per criterion;
3 Determine the decision rule that will be followed;
4 Determine scores per criterion and total scores;
5 Examine the (sub-) scores of the alternatives;
6 Decide on one alternative (based on the decision rule).
In literature several selection techniques are prescribed for each phase except for phase 0 and 6 and
are summarized in the appendix A.
2.2 Criteria for the evaluation of alternative designs
Application of the selection techniques mentioned in 2.1 to the conceptual design phase implies that
both quantitative and qualitative criteria are required. Pahl & Beitz (1986) give a list of aspects, which
are suitable to formulate criteria with accents on ‘operation’ and ‘realization’. Table 2.1 shows these
aspects and accents:
Table 2.1: Design criteria following Phal & Beitz (1986)
Aspect Accent
‘operation’ ‘realization’
1Functional X
2Effective X
3Compilation X X
4Safety X
5Shape X
6Manufacture X
7Control X
8Assembly X
9Transport X
10Use X
11Maintenance X
12Recycling X
13Expenses X X

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The criteria should be evenly distributed over ‘operational’ and ‘realizational’ accents. This grouping
of criteria allows for highlighting constructability and, what is more important, improvement of
constructability during the design process. If grouping is not applied, constructability is but one of the
criteria and can easily be underrated. It is important to define not less than 8 and not more than 15
criteria based on the constructability concept in the conceptual design phase (Phal & Beitz(1986)).
Each criterion should have the same importance and should be qualitative. The suggested rating
scale should be from 0 to 4. The use of weighting factors in the conceptual design phase appears to
be of little use.
The procedure outlined above seems to be rather straight forward, however the application of this
procedure to the alternative designs revealed some drawbacks. In the discussion this point will be
taken up.
2.3 Evaluation of alternatives
Decision methods and techniques based on grouped criteria, like the s-diagram (VDI 2225), are
suitable to help recognition and consideration of constructability as an important means to achieve
project objectives on evaluating concepts and alternatives for the conceptual design-phase. Each
alternative is evaluated in two aspects. First, weak spots in the design are searched for by evaluating
the sub-scores per group and per criterium. Second, each alternative is evaluated by comparing each
group of criteria with the maximum score (the ‘ideal concept’). In the following both methods of
evaluation are briefly commented.
A well balanced valuable profile in respect to both ‘operation’ and ‘realization’ criteria is very
important, especially in the conceptual design-phase. A concept with a high value score but with an
unbalanced profile will be treacherous during the detailed design-phase. During the conceptual design
phase it is often less risky to choose a concept with a less higher value but with a well balanced
valuable profile.
The s-diagram is suitable to evaluate alternatives on grouped criteria. The technique is based on
subscores per group of criteria. The subscores are displayed in a two-dimensional diagram, in which
realization and operation obtain equal attention. The original s-diagram (by Kesselring) deals with
‘technical’ and ‘economic’ criteria. The technique is quickly to learn, easy to apply and appropriate for
complex problems. When more than two main groups of criteria can be distinguished one can
prepare an s-diagram for all combinations of two groups. It provides a useful way to visualizing the
total scores per group of criteria.

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The total scores for each alternative can be obtained for instance as fellow’s:
To decide on a more balanced alternative or concept, the hyperbolical decision rule is more
appropriate.
2.4 Introduction of constructability in the design process
All the decision methods presume that constructability is introduced in the design process. However
realisation of this objective is far from simple. Tatum (1985) has found at least three key
constructability issues:1) the project plan, 2) the site layout, and 3) major construction methods.
Each of the three issues indicate important opportunities for meeting project objectives through
improved constructability.
Introduction of constructability in the design-process, in particular the conceptual phase, requires
several management actions (Tatum, 1985):
1) establishing a program (formal or informal);
2) identifying important issues and studies to focus activities;
3) completing necessary pre-construction planning;
4) building an interface with design;
5) reviewing the results;
6) resolving conflicts.
Tatum clearly points to both project management and to mechanical and constructive knowledge and
experience as important aspects of constructability. The approach of Tatum and the suggestions of
Pahl & Beitz link together on the point of application of grouped criteria as outlined above.
3 The storm surge barrier project
In this chapter a brief outline of the storm surge barrier near Rotterdam in the Netherlands will be
given. The presentation of the selection methods and the role of constructability in the designs teams
is presented in chapter 4.

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3.1 The storm surge barrier: an innovative approach
As part of the protection of the surroundings near Rotterdam against a storm surge set-up, the
Ministry of Public Works (RWS) in the Netherlands started in 1987 an extensive study on the
construction of a storm surge barrier near the river mouth of the Nieuwe Waterweg shown in Figure
3.1.
Figure 3.1: Position of the storm surge barrier.

The aim of the study was to find an alternative for the reinforcement and raising of the 354 km of
river-embankments in respect of building costs, construction period and environmental
consequences. In the summer of 1987, the Ministry of Public Works invited, by way of a competition
procedure (design and construct), five consortia of contractors to submit a conceptual design for this
storm surge barrier. The objective of the client was to obtain an innovative design for the lowest
costs, in respect of functionality, reliability, safety and durability. To reach this objective the client
selected design and construct as the contractual approach for this project.
As part of this design the design loads, ballasting system, probabilistic design and quality assurance
had to be worked out. One of the design conditions was that the probability of structural collapse of
the barrier had to be less than 1/1,000,000 in any one year. The plans had to be completed in a
period of three month.
After that period a selection process into three phases followed over a period of 2 years. During this
period the owner had to make a selection out of six concepts submitted by five consortia. To support
the selection process the

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Ministry also prepared a conceptual design. Figure 3.2a shows the clients concept and figure 3.2b the
concept chosen out of six alternatives.
Figure 3.2: Two conceptual designs for the storm surge barrier.
The design criteria, as formulated by the client, are presented in paragraph 3.2.

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3.2 Design criteria presented by the client
The client formulated technical and financial criteria for the design of the storm surge barrier.
The main design topics are summarized in Table 3.1.
Table 3.1: Criteria of the client for selection of conceptual design
Aspect Accent
‘operation’ ‘realization’
1. Functional X X
2. Flexibility X
3. Constructability X
4. Vulnerability X X
5. Quality control X
6. Maintenance X
7. Disruptions for the shipping X X
8. Price X
9. Price risk X
10. Maintenance costs X
11. Operational costs X
12. Cost during construction X
The selection criteria in Table 3.1 are quite similar to the list in chapter 2 mentioned by Pahl & Bietz.
On some points, where needed, a further stipulation of the criteria and priorities was carried out
during the execution of the project.
4 Selection methods and constructability in the storm surge barrier project
The investigation presented in this paper is aimed at the role of constructability in the conceptual
design phase. As has been shown in chapter two, this role can to some extent be related to the
selection methods and criteria used by the design teams. Information on these items was obtained
by interviews and from reports produced by the design teams. The six teams, including the team of
the client, have presented seven designs, hence one team produced two designs. All teams but one,
were available for interviews. The resulting information on selection methods and criteria in the
conceptual design phase will be presented in the following paragraphs.

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4.1 Steps within the conceptual design phase
An analysis of the conceptual design phase, based upon interviews and reports, revealed more or
less the same steps for all teams. These steps were:
a: selection of alternative designs
b: selection of feasible designs
c: selection of promising designs
d: preparation of the conceptual design
This implies that, although the time was very limited, the design teams went four times through a
selection cycle starting from a wide range of concepts and ending up with one or two promising
conceptual designs. Alternative designs included all designs which could lead to the required
objectives of the client. Feasible designs were those alternative designs which were feasible as far
the constructive capability and capacity of the consortium was concerned. Competitiveness of the
designs was particular important in the selection of promising designs. As shown in Figure 4.1., the
uncertainty in the design reduced during each step.
Fig. 4.1: steps in the conceptual design phase

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4.2 Methods and criteria used for selection of feasible designs
Each of the design teams generated in the order of ten to twenty alternative designs (see Table 4.2).
These designs resulted from past experience and innovative ideas. Selection criteria were hardly used
in this first stage of the conceptual design process.
The feasible designs were selected from the set of alternative designs. Information on the decision
rules and the weighing factors is shown in Table 4.3. From this table can also be seen that all teams
used a more or less similar approach. Selection of feasible designs took place based upon the
maximum score. The scores were determined intuitively and the method applied was 1a: grouping.
Table 4.2: Methods and criteria used for selection of feasible designs.
Decision methods and techniques
DesignNumber of Establish Number Establish Range of Determine Determine Examine Number of
team alternatives criteria of weighting weighting decision scores scores feasible
criteria factors factors rule designs
A 20 1a: 3 2b: Equal - 3a: Max. 4a: 5g: Weak 3
Grouping groups score Intuitive spots
Total
12
B 16 1a: 4 2b: Equal - 3a: Max. 4a: 5g: Weak 3
Total
22
C 9 4a: Weak 3
Intuitive spots
Strong
spots
D 15 1a: 6 4a: Weak 3
Grouping groups Intuitive spots
Strong
spots
E 1 Weak 1
spots
Strong
spots
F 29 1a: 7 2b: Equal - 3a: Max. 4a: 5g: Weak 8
Total
32
From a comparison of the feasible designs follows that, although the teams used the same criteria of
the client, the outcome was rather different. This was partly due to the knowledge and experience of
the design teams and partly due to the liberty for innovative designs which was possible within the
posed criteria. For the question, whether at this stage the competition in fact already was decided, is
referred to the discussion.

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4.3 Methods and criteria used for selection of promising designs
In the third selection round promising designs were selected out of the feasible designs. These
promising designs were expected to be competitive and formed the bases for the preparation of the
final conceptual design. The decision rules, the criteria and the weighting factors applied by the
various teams are summarized in Table 4.3:
Table 4.3: Methods and criteria used for selection of promising designs
Decision methods and techniques
DesignNumber of Establish Number Establish Range of Determine Determine Examine Promising
team feasible criteria of weighting weighting decision scores scores designs
designs criteria factors factors rule
A 3 1e: 21 2c: Pairwise1–14 3a: Max. Multi-crit. 5a: 2
Rating score Relative
Weak
spots
B 3 3e: Min. 5g: Weak 1
cost spots
C 3 -> 7 1e: 12 2c: Pairwise1–11 3a: Max. Multi- 5g: Weak 1
Rating score criteria spots
score
1–10
D 3 score/costs Weak 1
spots
Strong
spots
F 8 1a: 6 2c: Pairwise2–6 3a: Max. 4a: 5g: Weak 1
Score Total 32
1–5
In contrast to the first selection round, several teams applied in the second round somewhat more
advanced decision methods. Some teams applied for instance multi-criteria analysis to determine the
scores. Clearly the type of information in the conceptual design phase does not warrant the
application of some of the advanced selection procedures outlined in the appendix A. Table 4.3
shows the use of a relatively great number of criteria and a wide range of weighting factors. In 2.2
Phal & Beitz stipulated that it has no use to take more than 15 criteria and a wide range of weighting
factors.
4.4 Preparation of the conceptual designs
In preparation of the conceptual designs, more advanced selection methods will be used. Information
on this step will be accomplished separately

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4.5 Constructability in the conceptual design
In the design and construct approach, the option of constructability input in the conceptual design is
guaranteed. The constructive capability and capacity in the design team was a determining factor in
the selection of feasible designs.
The importance of the constructability input varies from team to team. Team A made a more or less
systematic grouping of criteria on constructability aspects into ‘operational’ and ‘realizational’ criteria.
The other design teams used constructability aspects implicitly in their list of criteria. Interviews with
members of the different design teams learned that construction input was more or less implemented
in all stages of the design process and most strong in team A.
5 Kesselrings method and constructability
Constructability was felt very important by all teams, but rarely selection methods were applied,
which properly accounted for constructability. More appropriate methods such as the Kesselring
method were not applied. In order to highlight the use of constructability in the Kesselring method,
this method will be applied to the selection of the ‘most suitable’ design. In the storm surge project
the selection of the ‘most suitable’ design took more than one year and included a very careful and
detailed analysis of all the designs. Such a procedure can be supported but not be replaced by any
selection method including the Kesselring method. As the objective of this paragraph is only to
demonstrate the Kesselring method, all weighting factors for the selection criteria have been set to
unity and the conceptual designs of the design teams A through F have been numbered at random
from one through seven.
Figure 5.1: Conceptual designs of the storm surge barrier.

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It follows from figure 5.1 that all conceptual designs ended up in the upper part of the Kesselring
diagram. The differences between the designs result in the distribution of points in Figure 5.1. For a
more realistic analysis of the conceptual designs again the Kesselring method can be applied, but
then the real weights instead of unit weights should be applied.
5.1 Remark on the selection of the ‘most suitable’ design
It follows from table 4.3, that different selection methods are used. The ‘seven-step’ approach of De
Boer completed with the work of Pahl & Beitz seems to be a rather straight forward method.
Comparison of promising concepts could be based on the method just mentioned. The client could
prescribe this method, not as a restriction of the room for innovative design, but to accomplish all
the design concepts. The client should know that the selected ‘most suitable’ design still
comprehends a certain extent of uncertainty.
6 Summary and conclusions
Constructability is one of the important sources of information available to designers. Tatum (1985)
points to both project management and to mechanical and constructive knowledge and experience as
important aspects of constructability. The link between the approach of Tatum and the suggestions
of Pahl & Beitz (1986) is on the point of application of grouped criteria. The opportunity of
constructability input in the conceptual design is strongly available in a design and construct
approach.
An analysis of the conceptual design phase, revealed more or less the same steps for all teams.
These steps were: selection of alternative designs; selection of feasible designs; selection of
promising designs; preparation of the conceptual design. This implies that, although the time was
very limited, the design teams went through a design spiral, starting from a wide range of concepts
and ending up with one or two promising conceptual designs. In the second design cycle the feasible
designs were obtained. All teams used a more or less similar approach. The selection were based
upon the maximum score. The scores were determined intuitively and the method applied was
grouping. In the third design cycle somewhat more advanced selection methods were applied. Some
teams used for instance multi-criteria analysis to determine the scores. Clearly the type of
information in the first three steps of the conceptual design phase does not warrant the application of
some of the advanced selection procedures outlined in the appendix A.
A design and construct contract demands of the contra-

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ctor to provide a structure for a fixed price with a prescribed performance. If the structure does not
behave as expected and leads to small impacts with a high probability, simple arrangements can be
made. Even high financial impacts with a small probability can be insured. However as soon as
societal impacts with a small probability become immanent, this may touch at the responsibility of a
government agency. This becomes even more clear if it is realized that small risks do not necessarily
imply small uncertainties of these small risks. This makes clear the difficult position a government
agency holds in a design and construct approach, where these large impacts with small probability
are at stake.
The ‘seven-step approach’ of the Boer completed with the work of Pahl & Beitz in 2.2 seems to be
rather straight forward. However application of the procedure to a set alternative designs revealed
some difficulties. The method requires a well defined rating method for criteria such as functionality,
safety and durability. Furthermore does the selection require that a trade-off can be made between
the ratings of these different criteria. For non-monetary units this appears to be rather time
consuming and only some support is found in the scientific literature. This comment places a
question mark near the possibility to define ratings and weighting factors before hand, reducing the
selection of the most suitable design to mere arithmetics. An additional disadvantage of such an
approach is that the room for innovative designs will considerably be reduced, compared with the
approach taken for the storm surge barrier.
7 References
De Boer, S.J. (1989) Decision methods and techniques in methodical engineering design.
Thesis presented to University of Twente (Enschede, the Netherlands) at the Laboratory for
Engineering Design in the Department of Mechanical Engineering, in partial fulfilment of the
requirements for the degree of Doctor of Science.
Pahl, G. & Beitz, W. (1986) Konstruktionslehre. Springer-Verlag, 1986.
Pugh, S. (1981) Concept selection—a method that works. Proceedings ICED 81 (Rome 1981),
Zuerich, Heurista, 1981, p. 497–506.
Sriram, D. .e.a. (1989) Knowledge-Based system applications in engineering
design:Research at MIT. Research in Progress, Fall 1989, p. 79–95.
Tatum, C.B., e.a. (1985) Constructability improvement during conceptual planning. Technical
Report No.290, Department of civil engineering, Stanford University.

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8 Appendix A
Results found by De Boer (1989): research on decision methods and techniques:
phase number and name tested easy to apply easy to learn complex problems
technique number and name
1.establish criteria
1a grouping criteria yes ++ ++ +
1b objectives tree yes o o ++
1c determine value functions no – + o
1d determining parameters no o + o
1e rating scales yes ++ ++ ++
1f monetary terms no o o o
1g types of requirements yes ++ ++ +
1h reducing number of criteria no + + o
1i checklists yes ++ ++ ++
2.establish weighting factors
2a intuitive weighting factors yes ++ ++ –
2b groups of equal importance yes + + +
2c pair-wise comparison yes + + o
2d weighting factors in root structure yes ++ –– ++
3.determine decision rule
3a maximum total score yes ++ ++ +
3b highest combined score no ++ ++ ++
3c closest to ideal no o + +
3d profitability no o o o
3e minimum cost no ++ + o
3f majority rule no ++ ++ o
3g lexicographic ranking no ++ ++ ––
4.determine scores
4a intuitive scoring no + o o
4b evaluation against reference alternative no + + o
4c apply value functions no – + o
4d using parameters no o + o
4e dual comparison no o + –
4f costs-benefits no –– – o
5.examine scores
5a relative scores yes ++ ++ +
5b s-diagram no ++ ++ +
5c bar charts no + ++ –
5d pie chart no – + –
5e value profiles no o + –
5f estimating uncertainties no o + +
5g weak spots no + o +
5h differentiation no ++ + +
5i harris profile no + + +
Legend: –– : poor; –: moderate; o: fair; +: good; ++: very good.

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Design and build—the role of a project manager
M.A.Cairney
E.C. Harris Project Management, London, UK
1 Introduction
Under the Design and Build form of JCT Contract there are three named parties—the ‘‘Client”—the
“Contractor” and the “Employer’s Agent”. The key role of the Employer’s Agent is to look after and
protect the interests of the Client. Where in-house expertise might be lacking a professional adviser
is a worthwhile investment to carry out this role.
The Employer’s Agent needs to be sufficiently informed and knowledgeable to be able to rationalise
the Client decision making process from outset to conclusion of the Project. He must administer the
Contract and maintain both financial and programme control on the scheme as a whole. The extent
of this service and responsibility tends to increase greatly as a Project increases in value—it is not as
involved on a £2m simple warehouse on a greenfield site as it is on a £40million Headquarters
complex for an owner occupier Client.
The key to the success of an Employer’s Agent under a Design Build Contract can be summed up
under three key issues:-
Trust between the Client and the Employer’s Agent.
The generation of a Team spirit involving all parties with the Client’s satisfaction in the finished
product being the uppermost priority.
The clear understanding by all parties of the Contractor’s proposals and up front decision making by
the Client.
2 Management Structures
The priorities and need for Professional Advisers varies with the size and scope of Project if the
Client’s interests are to be realistically protected. Core to all of these management structures is the
Client and his Employer’s Agent. The Employer’s Agent tends to be very much the central point of
contact between the Contractor and the Client and therefore his role tends to be one of Project
Facilitator. The professional training of a Project Manager might be from any actual discipline
however he has to be able to deal with the Client, the whole Design Team and the Contractor. This
therefore makes a Project Manager a strong candidate for the Employer’s Agent Role.
Following on are four diagrams illustrating management structures worth consideration in a Design
Build Contract scenario.

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2.1 Diagram 1
Diagram 1 illustrates a typical management structure which might be employed on a simple small
scale Project where only a superficial amount of change is likely to occur during the contract period.
The cost advice can be limited to an overview at tender stage. It is suitable for Projects where the
selected Contractor and his solution are established and schedule of payments calculated based on
achievement of programme. This avoids the need for detailed valuations of the work.
2.2 Diagram 2
This illustrates a structure applicable perhaps to a medium size Project with a higher level of Client
intervention in the detailed issue and a need to influence matters throughout the construction
process. Under such circumstances a more comprehensive advisory team is recommended. This will
probably generate the need for more detailed cost advice and technical overview from specialist
advisers related to complex issues of the Project in hand (eg. acoustic concerns, M&E concerns).

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2.3 Diagram 3
Diagram 3 indicates an increasingly popular approach whereby the Design Team is employed in
phases, directly by the Client in the concept stages perhaps including the obtaining of a Planning
Permission. The Design Team’s appointment is then novated or suspended during the Construction
Phase and the Contractor establishes a direct appointment. This arrangement tends to ensure a
better continuity of Design intent and clearly establishes that responsibility for the “Design” is not
split between differing Professional advisors.
2.4 Diagram 4
Diagram 4 indicates adding to the Team further to afford a full audit capability to the Client
independent of the Contractors design team. These advisers would be employed in the supervision of
the scheme, to overview and comment in a technical manner on the detailed design and perhaps to
provide a full site presence. This management structure would be recommended to a larger scheme
to ensure that the quality and standard of the completed product conforms to the Employer’s
requirements at all times.

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3 Employers Requirements
3.1 Format and Content
It is no secret that the key to Client’s satisfaction in a design and build scenario relies on the
Employers Requirements being accurately presented with no ambiguity. When preparing an
Employer’s Requirement document it is vital that the areas of key concern to the Client from a
functional, a cost effective and an aesthetic viewpoint are properly quizzed and included.
Dependent upon the size and complexity of the Project in hand the Employer’s Agent often needs to
consult with specialist advisers and other consultants to establish the Employer’s Requirement. This
must be in a format that contains adequate specification criteria for the design and build team to
produce a scheme that satisfies the Employer’s needs.
When preparing the Employers Requirements the level and detail of information to be made available
as the brief for the Design/Build Contract will vary. This might be a full working consultancy team
preparing a concept scheme inclusive of all planning permissions which is handed to the Contractor
for pricing and ultimate detailed design or a brief performance specification possibly related to a
basic outline planning application.
3.2 Client Input
When debriefing a Client in order to prepare the Employer’s Requirement document it is most
important for the compiler to properly understand the Client’s level of technical knowledge in respect
of buildings. A full understanding of any standards that he currently employs must be reached which,
in some ways, may be more onerous than industry norm. Due consideration has be given to any
specialised facilities and their knock on effects (eg. kitchens or specialised manufacturing processes)
and any strong views particularly in respect of image also needs to be quizzed and incorporated.
Often, if a Client is entering into an exercise for the first time for instance, effort will be needed to
educate the Employer in options available and modern architectural solutions. When putting together
the Employer’s Requirement document it is all too easy to not fully consider the ultimate user or
educate the Client sufficiently to ensure that there are no surprises when the Project is concluded.
3.3 The Concept Design Team
It might be appropriate on a project to appoint a complete design team to consider the concept
design alongside the Client before the Contractors involvement. This is particularly relevant on the
larger schemes which might warrant detailed or protracted planning applications to be carried out.
The Client might also be very keen to visualise in considerable detail what it is he is asking the
Contractors to price.

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In these situations a traditional design team management approach can be adopted inclusive of a
Quantity Surveyor who will produce estimates of cost. The detailed Employers Requirements are then
formalised to sufficient detail to seek the Client’s sign off prior to involving a Contractor.
With an agreed scheme in place the Project can be tendered to design build Contractors with design
responsibilities very much restricted to the detailed elements. Alternatively the pre-selection of a
Contractor can be undertaken and a negotiation carried out with regard to price.
There is an increasing popularity in novation and the passing over of the Design Team, particularly
the Architect, as part of the enquiry. The Contractor should always be given due opportunity to raise
objections, but this has a number of advantages. It includes the guaranteed continuity of Client Brief
interpretation, clarity in respect of design warranties and the ability to influence and pre-agree site
supervision levels as part of the Design Team fee structure.
4 Contractors Proposal Document
4.1 The Process
A most important and fundamental aspect of the Employer’s Agent role is to check the contractor’s
proposal documentation against the Employer’s Requirements once the price and details become
known. If the scheme has been worked up in some detail by a full Design Team then it is usual to
get what is in effect the Employer’s Requirement document adopted lock, stock and barrel by the
Contractor as a part of his Proposals. If the drawings and details prepared to act as the Employer’s
requirements are known to satisfy the needs of the Client, this obviously makes the process more
straightforward.
However, if Contractors are to be given room for finding the most cost effective solution, the
Employer’s Requirement Document and appraisal process must be flexible enough to allow design
development to take place during the pricing exercise. All such changes need to be carefully
identified, audited and cleared with the Client as part of the checking of the Contractor’s Proposals.
Other aspects which need to be considered during the appraisal of the Contractor’s proposals is
conformity with the Contract conditions, satisfaction with any proposed Collateral Warranties and a
through check carried out to ensure that any provisional sums, provisional material selections or
exclusions are identified and considered. Always a balance needs to be borne in mind during these
exercises which acknowledges the commercial intent of the builder and is mindful to offer sufficient
flexibility to allow him to engineer and develop the design, however, all parties must be very clear as
to the quality and quantity that is contained in the offer.
Not yet tested in the Courts is the unwritten assumption the Employer’s Agent must be mindful of—
the Contractors proposals will probably take precedence over the Employer’s requirements where
these

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conflict. This again indicates the importance of checking these thoroughly. At the end of the day the
key responsibility of the Employer’s Agent is to ensure that the Client’s ambitions and requirements
are properly met and ultimately achieved.
The size, complexity and nature of the Project to hand will define the extent and depth of
consideration to be given to the Contractor’s Proposals. The more complicated or bespoke the
scheme to a Client’s particular needs and more important it will be to have independent professional
advice to be satisfied the offer of the Contractor is appropriate. Late changes often prove far more
difficult and expensive in this form of contract and any clarification or changes that are identified
prior to it placing are likely to be more favourably priced.
If a competitive tender has been conducted then a series of in-depth technical interviews should be
carried out with each of the Contractors and their Design Team. These should aim to identify any
key differences in the alternate schemes particularly in quality or quantity.
Having identified the differences and considered them with the Client, it can be advantageous to
carry out a balancing process between the competitors. Ask the question what the changes to their
tender figure would be by adding or omitting elements identified as of different quality or quantity.
After such an exercise one can expect to end up with a number of schemes that are technically
similar and which represent the same functional facility. The only criteria for selection will then be
the price and subjective issues; who the team feel the best Contractor for the job is and the
Architecture.
When adjudicating on Contractors Proposals it is most important that the Contractor and the
personalities are carefully considered alongside the scheme proposals and the price. Success on a
design build contract relies very heavily on an open team approach by all parties and the avoidance
of contractural stand off.
One further issue which shouldn’t be ignored during the consideration of Contractors proposals is the
question of running costs of the completed facility and, where appropriate, life cycle costing analysis.
Some times the cheap option can prove to be much more expensive in the long run.
5 Contractor Control
Once the contract is let the role of an employers agent should become relatively straightforward.
This assumes that all of the systems are properly put in place and the checks accurately carried out
during the formation of the Employer’s Requirements and the checking of the Contractor’s Proposals.
If the Project is set up properly at the beginning and all parties understand what is intended, then
the administration, monitoring and control of these functions becomes fairly automatic.

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It is vital that all documentation is in place on day one of the contract and the most important of
these is the Contract itself. If the procedure for checking the Contractor’s Proposals runs smoothly
then in parallel the contract documentation can be prepared. Signature will avoid letters of intent
brought about through pressure of programme. With the contract documentation there should be a
comprehensive set of the Contractors Proposals attached for the avoidance of doubt.
Other matters to be included in the contract documentation is a detailed variation procedure, the
forms of warranty, all legal requirements, copies of planning permissions obtained and all
documentation in existence in respect of statutory authorities.
A feature of the Employer’s Requirement document should be clear directive of the level of
information required in order to satisfy the Employer’s Agent of the programme logic and the
information needed to monitor site progress. With the most comprehensive Employer’s Requirements
set down there is likely to be Client decisions wanted at various stages through at the contract.
These need to be clearly understood and adhered to.
The Contractor will wish to retain the facility for change during the design development process and
is likely to come forward with some proposals for change to the base specification after the Contract
is let. The Employer’s Agent will need to discuss and consider any such proposals with the Client to
ensure that there is no reduction in the value for money achieved. Procedures should be clearly laid
out for the Contractor to follow in order to highlight any such change proposals and for the
subsequent adoption or rejection of them.
Whilst the Project is on site, regular monitoring of quality forms a central feature of an Employers
Agent role. Necessary off-site manufacturing processes should be monitored and the Contractor’s
Professional Team should regularly be asked if they are satisfied with the quality being achieved.
Regardless of the management structure the Employer’s Agent should always insist at the end of a
job that “the Architect” write a letter, (preferably direct but via the Contractor as a minimum) stating
that in his professional view the building is in a state of practical completion sufficient to allow
occupation and use. Within that letter also seek a statement on the overall quality achieved on site
should be included.
As the building comes up towards completion a regime of handover sessions should be established to
ensure the following:
That aesthetic, quality and quantity checks are undertaken and schedules of corrective action
formulated and ticked off. That detailed commissioning of the building particularly from a Mechanical
and Electrical viewpoint is carefully monitored and recorded.

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That the personnel who are to take over the building are properly educated in it’s running and
servicing needs. Detailed cleaning procedures, maintenance procedures and operational drawings,
handbooks and information must be brought together at this stage.
It is a key responsibility of the Employer’s Agent to ensure that these matters are properly covered.
During the course of the works the Employer’s Agent will act as the central administrator between
the Employer and the Contractor. This will involve the organisation and running of regular site
meetings to ensure good communication and decision making. The Employer’s Agent will formulate a
comprehensive record of the scheme throughout it’s life, he will process the valuation/payment
function and generally act as the single point of reference for all parties. It is normal for the
Employers Agent to report to the Client and he may also be required to supply information to other
interested parties such as a Financial House or a Letting Agent.
6 Summary
The Employer’s Agent has to make his first priority the translation of a Client’s needs and ambitions
into an efficient and functional facility. His remit, without doubt, must always be in the Client’s
interest. This position needs to be filled by somebody with a background knowledge of the building
process, coupled with realistic management skills in discussing and resolving the questions and
issues as they arise. Therefore, the position of a Employer’s Agent on a design and build project is
logically fulfileed by a Project Manager.
Inevitably, there are calls for some changes during the course of the contract period and the
Employer’s Agent has to be adept and even handed in negotiations with the Contractor during the
Variation process. The Employer’s agent should be flexible and open minded to the Contractors
underlying desire to achieve programme and find the most cost effective way of fulfilling the
Contractors Proposals. This emphasises the need to ensure that the quality and quantity required is
fully defined in the Employer’s Requirements and then into the Contractor’s Proposals. My belief is
that a Project Manager is ideally suited to the Employer’s Agent role provided he has the right
attitude to problem solving, understands the spirit of a design build contract and has sufficient
background knowledge to offer balanced advice to the Client.
I would add, however, that a Project Manager can come from any professional background. It is the
interpersonnel skills coupled with technical knowledge which is all important in these situations.
Note:
The views expressed in this paper are those of Michael Cairney, they are not necessarily those held
by E C Harris as a Group.

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CHAPTER FOUR
‘There is a dearth of even the most elementary management techniques by those who own, and run
buildings. There are no adequate records, budgetary controls or estimation procedures. Some basic
facts are unobtainable; other important pieces of information came, relatively easily, from quite
unexpected sources. It is certain that no industry, owning capital equipment of similar cost to these
buildings, could survive unless it had more data on its performance.’
T.A.Markus, et al.

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Specification writing for preservation and maintenance works
D.Bosia
Dipartimento di Progettazione Architettonica, Politecnico di Torino, Torino, Italy
A.Ciribini
Dipartimento di Ingegneria dei Sistemi Edilizi e Territoriali, Politecnico di Milano, Milano, Italy
Abstract
This paper considers specification writing for preservation, rehabilitation and maintenance works from
an exclusively methodological viewpoint.
Such a specification therefore is a vital document for introducing quality assured products and
services into worksites and represents a means for communicating information between designers
and contractors who often share the overall responsibility for specifications in a building project
process.
The paper aims at proposing a methodological approach to this matter with regards to its technical
section; part of the total documentation normally required to describe the rehabilitation work.
Contractor estimators, quantity surveyors, clerks of works and site agents must be offered a standard
method of specifying for preservation and maintenance works, to avoid inadequacies and
misunderstandings.
Providing a ‘standard library’ or selecting descriptive rather than performance specifications is for
istance difficult, given the great variety of existing buildings. Investigating the relationship between
technical drawings and technical specifications is also very useful.
Keywords: Quality Management for Rehabilitation Design, Technical Specifications, Preservation and
Maintenance Works.
1 Introduction
The procedural and technical specifying phase is the most critical moment in a building rehabilitation
project process, where role division (except for Design and Build procurement for instance)
eliminates the need for an organic decision making centre to define not only materials and
workmanship but also the exact analysis, diagnosis or conservation methodology or, better, the
choice of equally proven surveying or conservation methods.

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In traditional procurement situation, a specification is in fact the essential link for transmitting project
documentation, graphic and alphanumerical data (which in turn translate into Client and hopefully
End User needs and requirements) to the Contractors responsible for execution of the work.
In this framework, the rather linear and sequential stages of a conventional building process model
add to the more repetitive and interactive phases of the quality management model divided into: 1.
briefing (including procurement); 2. designing; 3. specifying; 4. tendering; 5. constructing; 6.
maintaining (including management) (Maggi, 1989; Cornick, 1991).
The specification therefore becomes the tool for setting the procedures and timing of control activity
requested by the Client, in accordance with the design team, as part of activities closely integrated
with constant feedback.
Since quality management in complex decision making procedures essentially means product or
process quality related data management, the unambigous and non-redudant univocity of project
document data becomes so important as to assimilate building to other production, industrial or
service businesses. The specification becomes a technical/administrative document governing
execution of the work and the contractual relationships between the Client who sets the conditions
and the Contractors who undertake obligations.
Any one specification refers to one specific contract and is therefore prepared individually for each
case. In order to set out the conditions for each work, its materials and execution procedures.
2 The role of technical specifications
The specification plays a vital role in the project building process since it fulfills both contractual and
technical functions: «the purpose of a project specification, in conjunction with drawn, scheduled and
measured information, is to define the quality of the systems, components, materials, workmanship
and the finished work in such a way that the employer, contractor and professional advisers can
have a reasonable degree of certainty that:
– the designer’s detailed requirements will be met, compliance being judged on a definitive basis;
– the contractor’s estimator can price the work with certainty and accuracy;
– the contractor can order materials and components correctly and in good time;
– the contractor can plan, execute and supervise the work in a controlled manner;

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– the contract will be brought to a successful conclusion with the minimum number of
misunderstandings and variations» (BPIC, 1987) .
Contract technical specifications are the information that the Client transfers to the Contractor in
order that the contract be a moment of continuity in the design, production, execution and
management process.
The specification is part and parcel of the contract together with General Conditions and drawings in
Italy, in so far as the procedural aspect is concerned. In the event of legal proceedings, the written
text of the specification prevails over drawings, even when completed with written notes. Its
exhaustiveness and univocity must be ensured in this case, also in compliance with European
Communities Council Directive 440/89 of July 18, 1989. This Directive defines Technical Specifications
as the set of technical provisoes mentioned in particular in the specifications defining the features of
a work, material, product or supply so that they comply with the use that the Client destines them to.
Such features include quality or usage properness levels, safety and dimensions as well as
specifications applicable to the material, product or supply relative to the quality assurance system,
terminology, symbols, tests and test methods, packaging, marking and labelling. They also include
regulations on work designing and calculations, testing, control and receiving conditions of the works
as well as building techniques or methods and all the other technical conditions the Client may
prescribe by general or specific regulations, concerning finished works and with reference to
constituent components or materials.
In so far as the design phase is concerned, the specification has a pre-eminent value; since it offers
qualitative information, it represents an indispensable tool for indicating and checking compliance of
the finished work with the Client’s intention and achievement of the building’s service life by means
of contract clauses. The specification is therefore a document directed firstly at tenderers during the
tendering phase; to the clerk of works, bidder, subcontractors, suppliers, site agent, technical
inspector and quantity surveyor during execution and to post-occupancy assessors and maintainers
during the management phase.
Due to the extreme articulation of the specification, many public and private bodies have prepared
standard specifications capable of ensuring intrinsic low cost as well as the correctness of often
repetitive procedural sections and the technical instructions set out on the basis of previous
experience.
In the United Kingdom (Scott, 1984; Gardiner, 1991; Willis and Willis, 1991) and the United States
(Lewis, 1975; Jellinger, 1981; Ayers, 1984; Meier, 1989; Lohmann, 1992) too, methods have been
commonly adopted for writing

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specifications based on libraries of clauses (a system that approximates the standard italian
specification) or combinations of coded and standard terms and sentences, although the fact of using
«standard specifications is no guarantee of success unless they are rigorously reviewed for the
particular situation of the design in question» (Cornick, 1991).
Interestingly, drawings (differentiated according to the purpose and project work in progress) are
closely correlated to technical specifications, bills of quantities and the Standard Method of
Measurement (SMM, 7th Edition) in Anglo Saxon countries, although often «specifications are not
specific to the project, contain unachievable requirements and, more often then not, end up being
ignored», because «in current building design practice the designers only specify the material and
the workmanship—usually in rather broad general terms» (Cornick, 1991): «as a consequence
Quality Assurance for design must encompass the development of the specification, and we must also
be aware of the complex nature of the building industry» (CIB, 1989).
For Italy, we should like to mention the Capitolato speciale Tipo per appalti di lavori edilizi
among the different standard ones. It was prepared by the Central Technical Service of the Italian
Ministry for Public Works and has been revised recently to make it a dynamic rather than crystallized
and static document as it had been so far.
It must however be recognized that certain experts hold that a standard specification should not be
considered as a basis to be rather limitedly modified with a view to achieve the actual document; on
the contrary, the logic of a guide to writing the specification should be followed.
This paper however only deals with the technical conditions of the specification, namely the set of
the technical specifications that define the quality and types of workmanship upon which the contract
is based; «specifications may be defined as written explanations delimiting the work to be
undertaken and as written instructions regarding materials and methods that are to be used to
acccomplish the work of the project» (Jellinger, 1981); «the project specification is defined as a
document or part of a document, the main purpose of which is to define the materials and products
to be used, the standard of work required, any performance requirements, and the conditions under
which the work is to be executed» (BPIC, 1987).
Specifications should be written in a proper language «hand in hand with the preparation of the
drawings» (Rosen, 1981). In the USA, discussions are in fact on preliminary or outline specifications.
These ensure an adequate technological level of the information content, once they are refined
through contacts with the decision making and operational systems coordinator and the many
consultants who

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contribute to defining project documentation. They must be closely complementary with drawings
and avoid overlappings or redundances since they are «a device for organizing the information
depicted on the drawings» and «break down the interrelated informations» (Rosen, 1981) shown
therein. One of the biggest mistakes made by many maintenance planning offices and conservation
design practices is to postpone the introduction of the specification writer to the project until the
working drawings are nearly finished.
Graphic representation of the project cannot be dealt with separately from the procedures of
expressing the information of other contract documents, technical specifications included. Such
documents concur together to define the contents of the communication to be transmitted to each
party involved and must be made complementary and homogeneous, even though expressed in
different languages. Technical specifications are in fact «written instructions to be used in
conjunction with the drawings so that together they fully describe and define the work that is to be
accomplished, along with the methods and quality that will be required» (Jellinger, 1981).
There are two ways of writing a specification: by description or by performance. The former—the
descriptive specification or system method—has been commonly used in Italy so far. The writer,
usually the designer or specifier in better organized design practices, indicates the exact specification
of the materials and technologies to be used. This facilitates invitations to bid and instructions to
bidders for contractors during the bidding phase as well as controls both during work under
realization and final inspection by professionals appointed to do so. The latter—the performance
specification or results system—is a specification written in a manner that sets forth all the
requirements the installation or product must meet but does not state how. Performance
specifications tend to offer definition and control tools independent of the building practice followed
and the technologies used. They appear to follow the approach indicated in European Communities
Concil Directive 440/89, modifying Directive 305/71 of July 27, 1971, that specifies the need to
establish building contracts based on results instead of detailed technical specifications.
The performance approach, that was born with the advent of system building and the end of
traditional ‘‘workmanship rules”, however presupposes a vast structure of defining requirements and
performance measurement and control. It is in fact very complex and sometimes technically
impossible to establish a priori the exact compliance of “product concepts” as set forth in the
framework of a performance definition with the “products” that physically make up the building and
that as such are subject to mandatory

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morphological description when the specification is rated as a contract document.
The literature strongly suggests not to make too drastic a distinction between the two specifications,
expecially in the presence of procurement routes expressly set to ensure avoiding the search for the
best quotation by low bidder determination, but also using execution times, efficiency and technical
value of the work as well as the life cycle cost. Some Authors hold that intermediate solutions should
be explored by offsetting description of performance propensity based on the “share” of design
activity performed directly by the Client or progressively delegated to the General Contractor or
Subcontractors, i.e. according to the degree of project definition as set forth by the different
procurement routes (Client Build, Design and Build, Traditional Consultant Design, Management
Contracting, Construction Management). The structure of technical specifications therefore derives
from the procurement system the Client chooses in setting contract terms and is gradually more
detailed according to whether it is a preliminary, scheme, detail or working design.
The tender is sometimes formulated on the basis of the detail design or the final specification. In
other instances, technical solutions are presented by the Contractors with reference to specification-
programme included in the pilot project.
Specification technical conditions can anyhow be disaggregated into requirements of the
environmental system, requirements of the technological system, building component and material
features and use procedures.
From the viewpoint of its technical contents, the formulation of a particular specification on the basis
of standard ones conceived as above will therefore consist of the level of detail for the above
technical contents, taking account that the conceptual consistency of the three levels allows of non-
strictly homogeneous structuring that features the simultaneous presence of elements belonging to
the different levels.
The relationship between technical conditions and the schedules of work should therefore be clarified
better. The latter is a descriptive document directed at finalizing bill of quantities which some experts
believe could partially replace technical specifications, as it is pertaining to the design phases.
3 Rehabilitation and maintenance works specifications
A preservation and maintenance works specification presents certain special aspects, as in this sense
the compliance of the finished work with design specifications must not only

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ensure proper works execution but also acts as a strong operational quality management tool (with
reference to the conservation aims of the diagnostic and conservation design as well as maintenance
management).
The peculiarity of the finished work also means that specification writing is more peculiar than
normal. The comprehension of building logics must in fact become a specification in accordance with
local procedures (Bosia, 1991; Ciribini, 1991).
The transfer of specific techniques for the new buildings cannot be automatic since the subject of the
specification concerns treatment technologies rather than the assembly of materials, technical
elements and components. The case of perharps essentially similar administrative clauses is different.
Recurrent doubts on the adequacy of standard specifications have arisen in this connection, because
of the risk of the rehabilitation designer using standard clauses to absentmindedly apply
specifications contrary to the interventions directed at the preservation of existing buildings. These
documents also appear to be quite unsatisfactory from the technological viewpoint, since they hardly
reach a high degree of precision, as the rehabilitation of buildings that differ widely as to year of
construction, building materials and technologies cannot be summarized with rigid standard rules.
This would therefore lead to believe that using the descriptive form for writing the technical
conditions for rehabilitation works specifications would be preferable in the present situation, also
considering the advisability of preparing a diagnostic design specification separately from the
rehabilitation design one. This would prevent the latter from appearing as a sort of document in
progress, constantly under review, with the supplementary costs ensuing from the possible writing of
an addendum caused by lack of design precision with the consequent interruption of works under
way. In this scenario, there would be fewer variant under construction, that will anyhow continue to
occur to a greater or lesser degree.
4 Conclusions
In order to reach correct writing of technical specifications for preservation and maintenance works
in Italy, this paper has examined that Standard Library of Description of Building Works,
prepared in the United Kingdom during the Sixties based on the standard phraseology for bills of
quantities of building works.
This library is divided into sections like the SMM and is based on the mentioned standard method of
measurement of building works. It offers standard terminology for the orderly description of the
building elements and activity

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present in bill of quantities and makes the description of a rather wide range of operations possible.
Because of the method’s extreme terseness and detailedness, this paper will close only by listing the
contents of a technical specifications on a preservation works, for the following topics:
a) location of the work;
b) references to regulations and standards;
c) description of the operation;
d) materials: selection of qualified suppliers, characteristics, certifications and worksite acceptance
criteria based on the method of supplier assurance;
e) description of workmanship, if possible certifiable against UNI standards similar to BS series
8000;
f) execution procedures, with reference to the possible presence of quality assured treatments and
firms (general contractor, specialist contractor or subcontractor) with quality management
certification against ISO series 9000;
g) plant and equipment,
h) environmental and local conditions;
i) operational planning;
l) preliminary operations;
m) safety measures;
n) inspections of work under realization;
o) final inspection;
p) maintenance facilities;
q) obligation to present historical quality data records to assess the reliability, maintainability and
durability of treatments and products.
This checklist must of course be taken account of by the quantity surveyor or specification writer, the
design team coordinator, the structural and services designers, the non destructive examination
operatives, the chemical and physical consultants and the building pathologists especially when
provided with a quality management system, that is anyhow mandatory to obtain formal quality
assurance for the design practice.
The checklist could be used in codes of practice or in guidelines for rehabilitation works, that are
particularly detailed for conservation treatments in Italy and act as a tool to check the technical
correctness of design solutions.
5 References
Ayers, C. (1984, 2nd ed.) Specifications for Architectiure Engineering & Construction
McGraw-Hill, New York
Bosia, D. (1991) Il capitolato speciale di appalto per il recupero Ph. D. Thesis, Università degli
Studi di Genova, unpubl.

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(BPIC) Building Project Information Committee (1987) Project Specifications. A code of
procedure for building works NBS Services Ltd, Newcastle upon Tyne
Ciribini, A. (1991) Per una teoria del capitolato speciale d’appalto nell’ambito delle
discipline del costruito Scholarship Report, ICITE—CNR (National Council of Research), Milano,
unpubl.
Cornick, T. (1991) Quality Management for Building Design Butterworth, London
Gardiner L. (1991, 3rd ed.) Standard method of specifying for minor works: as in the
preparation of documentation for works of repair, improvement and conversion Lewis
Brooks, New Maiden
Jellinger, T.C. (1981) Construction Contract Documents & Specifications Addison Wesley,
Reading (Ma.)
Lewis, J.R. (1975) Construction Specifications Prentice Hall, Englewood Cliffs (N.J.)
Lohmann, W.T. 41992) Construction Specifications Butterworth, London
Maggi, P.N., Croce, S. et alia (1989) Sinossi di fasi e controlli nel processo edilizio Politecnico
di Milano, Milano, unplub.
Meier, H.W. (1989, 2nd ed.) Construction Specifications Handbook Prentice Hall, Englewood
Cliffs (N.J.)
Rosen, J.H. (1981, 2nd ed.) Construction Specification Writing: Principles & Procedures John
Wiley & Sons, New York
Scott, J.J. (1984) Specification writing: an introduction Butterworth, London
Willis, A.J. and Willis, C.J. (1991, 10th ed.) Specification writing for architects and surveyors
BSP, London

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Building pathology and maintenance management; methodology and tools
M.Moroni
Department of Building and Territorial Systems Engineering, Faculty of Civil Engineering, Milan
Polytechnic, Italy
Abstract
The maintenance planning and organization during the whole life cycle of a building is the way to
optimize the technical-economical maintenance management of buildings, but, because of several
reasons this goal is, nowadays, far from being reached. One of the difficulties is recognizable in the
hardly knowable information concerning some time-related parameters. This paper illustrates how
building pathology sciences, (studying the mechanisms of decay of building materials, components
and systems), could allow the development of tools and knowledge that can be very useful to plan
the maintenance process, and, closely, these tools make easier, profitable and more correctly usable
two maintenance strategies: the emergency maintenance and the preventive maintenance.
Maintenance planners need to be able to find out with a high certainty degree the failure causes in
order to perform a correct maintenance intervention; this aim requires efficient methodologies and
tools to investigate the decay process. Furthermore the detailed knowledge of the alteration
mechanisms gives the possibility to obtain information about the steps taken by the components in
their decay process, in order to recognize the different signals of an incipient failure. This recognition
gives the possibility to act before the happened failure.
Keywords: Building pathology, Diagnostics, Maintenance, Performance decay, Service life.
1 The decay process
Diagnostic, which is the basic part of the building pathology discipline, requires, as introduction, the
knowledge of the decay process suffered by the building components.
The decay process can be usefully represented by a model which consists of a flow chart.
This flow chart can easily show the stages of the building component evolving from a performance
condition to a non-performance condition. This model is showed in Figure 1; a

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short glossary is related in the following Table 1.
On one hand, the pathologic decay is always started by one or more errors which might have been
committed during different stages of the building process, whereas the natural decay is started by
aging phenomena, of materials and components.
On the other hand, errors committed in the design or in the building construction cause defects.
These defects can either remain in a latent form or be started by the action of external agents.
Table 1. Terminology
Term Meaning
Error A wrong choice or decision or a choice that was not made during the design process;
the consequence of uncorrect manufacturing or management.
Defect The inadequacy or lack of one ore more elements constituting a system, to perform
their functions. Defects are caused by errors. Furthermore the presence of a defect is
not sufficient to provoke a failure, the presence of external agents is necessary.
Anomaly An anomalous behaviour or phenomenon. The indication of a possible defect. The
anomaly could be a symptom of one or more defects. It could be, itself, a light failure.
Failure A decrease of physical structure or performance, more or less serious and evident.
Performance The reduction, in value, of the performance offered by a product or a component or a
failure system, dropping below the established acceptable limit. (This is the most important
failure in the field of building pathology).
Damage The economic consequence of a failure.
Interaction between external agents and defects is the necessary condition to cause a manifest
showing up of the decay, that is of the failure.

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Fig. 1. The decay process

The failure in building components can either be structural, that is, concerning their physical,
chemical and technological characteristics; or it can be a performance failure, that is, concerning the
drop of their initial performance level below an established acceptable limit; or,

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finally, it can concern both aspects, which is the most common eventuality.
Certainly, the final user of the building object can be aware of the failure in a different way,
according to its nature.
Under these terms, the showing up (called anomaly) through which the user becomes aware of a
failure, can concern both the structure and the performance aspects.
The decay process anyway needs time to develop and it does not immediately cause components to
pass from a performance condition to a failure condition; this is extremely important as to the
possibility of planning maintenance strategies with a preventive purpose.
As a matter of fact, anomalies can show up even before the final failure occurs; when such is the
case, anomaly becomes a sort of symptom which points out one or more defects.
Therefore to study anomalies seems to be an easier way to set up a maintenance program
disengaged from the knowledge of time dependent parameters of reliability, duration of service life,
“mean time between failure” and so on, which are harder to obtain.
So, if on one hand the correct diagnosis of an occurred failure is an important condition to carry out
an effective emergency maintenance strategy, on the other hand the possibility of a correct
acknowledgement of anomalies, when the failure has not occurred yet, is fundamental for a
preventive maintenance planning.
Finally, as the decay involves an economic damage, the estimate of this damage is included into the
process model as the final stage of the representation: in fact the economic damage, although we
cannot establish a strict relation cause/ effect between the failure and the economic damage, is, in
the process flow, the direct consequence of the failure.
2 The diagnostic process
The diagnostic process starts from the observation of an occurred failure or from the
acknowledgement of anomalies that point out the presence either of a defect or of a condition of an
incipient failure.
The diagnostic process develops so as to deal with and methodically analyze all the diagnostic
possibilities which may somehow be related to the failure itself.
The analysis of the anomalies that may be found in the building is a strategic passage of the
diagnostic activity; in fact if we interpret them as symptoms, this will allow us a pre-
acknowledgement of the defects which have caused the failure.
A following confirmation of the prediagnostic conjectures based on a more accurate
instrumental/analytical survey and on a repeated elimination of the conjectures in contrast with

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Figure 2. The diagnostic process and its tools

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data obtained time by time, will finally lead to a sub-group of definitive diagnosis usually
characterised by some degree of certainty.
The presence of different possible diagnosis must be taken into consideration at the moment of the
requalification intervention. Diagnostic, if correctly applied and by adequate tools (operative and
methodological) can carry out the function of optimizing the requalification procedures.
You will find the diagnostic process flow chart, with the tools which may be used to get all the
necessary information, clearly in evidence, represented in Figure 2.
It is remarkable that the redundance of the survey stages, which considers the real difficulty of
getting all meaningful data through only one initial survey, is justified by the essential difficulty of
acquiring data and by the possibility to disregard them when it is not clear yet what we have to
inquire into.
We propose to iterate the survey giving it the purpose to obtain, time by time, data which, from a
quantitative and qualitative point of view, are rather limited; this allows us to involve, for each stage
survey, small quantities of competencies and resources.
In fact, it will give us all and only those information which, time by time, are requested for a
diagnosis confirmation.
3 The ‘‘Fault Tree”
Among the instruments that can be used for diagnostic there are two which are particularly useful as
methodological and procedural guide in view of a systematic diagnosis formulation: the “Fault Tree”
and the “Diagnostic Tree”.
Both can also be used for a coordination of all surveys, analyses and formulation through the typical
instruments normally used by the building pathologist such as non-destructive evaluation methods,
computer simulations by physical/mathematical algorithms, infra-red thermography and so on.
The “Fault Tree” is the first instrument we propose: its purpose is to make evident the interaction
logic between the acknowledged failures and their possible causes.
This instrument can be used to methodically represent all the data related to a certain decay
phenomenon so as to introduce a global picture of the possible diagnostic conjectures.
As each acknowledged diagnostic conjecture closes, so to speak, one of the tree “branches”, we can
infer that the branch represents different evolution stages of a determined pathology.
In this way, the Fault Tree turns out to be a total representation of a certain decay phenomenon
and, as such, it shows its utility during the planning phase and survey

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development for diagnostic, as its structure considers all the possible diagnostic assumptions and
relevant pathologies (decay evolution logic).
Considering that the analyzed processes can be more or less complex, the Fault Tree structure can
lead to sub-trees; in this case the starting event of a sub-tree usually belongs to the third level of
the primary Fault Tree.
In Figure 3 you can see an example condensed for reasons of representation, of a Fault Tree
conceived on purpose of analyzing problems of ceramics floor coverings detachment and raising. The
Fault Tree structure can be divided into 4 hierarchic levels:
1° Failure level This level represents the final decay event, that is, the failure (structure and/or
performance failure).
2° Defect level It represents the hypercritical condition which caused the failure.
3° It contains the list of the check parameters by which it is to be inquired whether
Actions/Reactionsthe overcoming of a certain value has occurred or not; that is, the overcoming of a
level limit condition which starts the hypercritical condition.
4° Error level This is the basic level which represents the possible errors that caused pathological
situations to develop into a complete collapse.
4 The “Diagnostic Tree”
If, on one hand, the Fault Tree is useful for the representation of the critical sequences and of the
possible diagnostic conjectures which lead from errors to failures; on the other hand it cannot
support the diagnosis operator in choosing the branches related to the specific case, that is to say, it
cannot help him in the diagnosis formulation.
The second instrument proposed, that has exactly this purpose, is the Diagnostic Tree.
The Diagnostic Tree is a sort of procedural guide for the development of diagnostic inquiry; it is used
for the specific situation as a procedure tended to the choice of some of the Fault Tree branches:
this choice is determined by answers to linked questions.
Like in the Fault Tree, there will be a correlation between the actions carried out by the context and
the relevant component reaction capacity.
Generally, the diagnosis can tend either towards

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Figure 3. The Fault Tree

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conjectures of exceeding stresses or conjectures of resistance defect.
Both these assumptions can lead to overcome a limit condition, as anticipated by the Fault Tree.
The elements necessary to form a Diagnostic Tree are the following:
1–The failure.
2–Questions which need an answer so as to proceed along the diagnostic tree branches.
3–Decision instruments so as to answer the questions.
4–The primary defects and the conjectural diagnosis.
In short, the two most meaningful advantages of the Diagnostic Tree are the following:
1 – It gives the possibility to order and systematize the diagnostic development.
2 – It prevents from neglecting some of the inquiry developments.
In Figure 4, as exemplification, you can see a part of the Diagnostic Tree concerning ceramics floor
coverings detachment and raising problems related to the Fault Tree in Figure 3.
5 Conclusions
Therefore, instruments and methods of the Building Pathology are finalized to sustain the necessary
decisions concerning the maintenance planning, and many researches and studies following this
same direction are developed by national and international organizations, particularly inside the CIB
Commission W86 “Building Pathology”.
A further impediment which is the formulation of standard formats for the information exchange
between the ‘building pathologist and the ‘maintenance managers’; other researches and studies
follow this direction; particularly inside the Dept. Of building and Territorial Systems Engineering of
the Milan Polytechnic, we are developing an Information Management System which deals with these
topics.
6 Acknowledgements
This paper results from the research work carried out inside the Dept. of Building and Territorial
Systems Engineering of the Milan Polytechnic; particular thanks to Prof. Sergio Croce for kindly
allowing the Diagnostic Tree being published in Figure 4, of which he is the original author.
Particular thanks to prof. Giuseppe Turchini who has participated to the work and to the supervision
of this paper.

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Figure 4. The Diagnostic Tree

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7 References
Croce, S. Moroni, M. and Turchini, G. (1990a) The Diagnostic Tree . Proceedings of the 6th
Meeting of the CIBW86 Malaga.
Croce, S. Moroni, M. and Turchini, G. (1990b) Notes for a state-of-the-art report. Proceedings of
the 6th Meeting of the CIBW86, Malaga.
Van Den Beukel, A. Moroni, M. et al. (1991) Building Pathology: a state-of-the-art report, second
draft. Proceedings of the 7th Meeting of the CIBW86 Malaga.
Molinari, C. (1989) Durabilità dei subsistemi e tipologia dei guasti: un inchiesta per interlocutori
privilegiati, in Manutenzione in edilizia (italian), Franco Angeli, Milano, pp.161–211.

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Post occupancy evaluation method for effective management of office facilities
H.Nakagita
Building Engineering Department, Nippon Telegraph and Telephone Corporation (NTT), Tokyo, Japan
Abstract
One of the effective methods that NTT developed for the office management is based on using a
questionnaire for evaluation of office workers. This paper presents the construction of the
questionnaire , the analysis program, and one of the interesting results in its application at NTT.
Keywords: Post occupancy evaluation, Questionnaire, Office, Renovation, Renewal
1 Introduction
NTT is a telecommunication company whose network spreads to every corner of the country and who
owns more than 30,000 telecommunications buildings with a total floor area of about 20,000,000
square meters. Most of these buildings were constructed twenty to thirty years ago (Figure 1).
Recent rapid innovations in information and telecommunications technology have brought major
changes to the office environment, and the effective management of these building facilities has
become a primary issue. The installation of heat-generating machines like personal computers, the
recent concern for indoor air quality and the problem of building deterioration have prompted us to
improve office productivity by renovating or renewing office space. When doing this, it is very
important to quantify each prevailing conditions of each particular office environment. Based on this
quantified assessment, it is possible to manage office facilities effectively and for office workers to
work more efficiently in improved surroundings.
One method developed for assessing prevailing office conditions used as a tool for managing NTTs
facilities is generally called Post Occupancy Evaluation (POE): in more specific terms, it is the use of a
questionnaire. Significant data used to determine office design has been obtained by applying POE to
our offices.
Fig. 1. Trends in the number of buildings constructed at NTT and their floor area.

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Fig. 2. Classification of elements in an office

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2 Method for assessing the office
2.1 Post occupancy evaluation
Post occupancy evaluation is an effective way of determining the conditions prevailing in an office,
and it has recently become popular to apply POE to office renewal in Japan. Most of these studies
have been based on the results of questionnaires completed by occupants. NTT has developed an
appropriate questionnaire and a personal computer program that can reduce the number of hours
needed to analyze the questionnaire data.
2.2 Questionnaire
The purpose of the questionnaire is to reflect how occupants feel and to evaluate their office area
and working conditions. There are many elements used to categorize an office (Figure 2), and the
questionnaire NTT developed is constructed according to these classifications. To renovate or renew
offices effectively and to work comfortably for workers themselves (office occupants), not only the
office environment but also the workers’ feelings and working conditions must be considered. The
questionnaire NTT developed has 50 items. Five of these concern about respondent’s profile. Another
15 items concern feelings about office facility management. Another 15 items concern work The
remaining 15 items concern the office environment. The response format is based on the semantic
differential(SD) method. The six-point scales used for almost all the items on this questionnaire
enable a precise analysis of and comparison between arbitrary items, (although three- or five-point
scales are generally used elsewhere). Respondents can mark any of the six points, and because a
six-point scale has no neutral point, each items must be rated good or bad. An example of this
format is shown in Figure 3.
Fig. 3. Example of response format.

2.3 Evaluation
A mean response and standard deviation is calculated for each questionnaire. The mean response
simply denotes the general tendency of the office occupants. The standard deviation is used to judge
whether or not a cross analysis is required. For example, different distribution can be reflected in the
standard deviation (Figure 4).
Fig. 4. Sample distributions of responses to questions.

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For the overall evaluation, a deviation is calculated by using the mean response to each category’s
representative 9 questions:
office activity
Service for customers
How to use office
Ease of working
Ease of service trading
Comfort
Efficiency of working
Level of service
Office operation
Since there are many elements in an office, the results of this questionnaire are presented in the
form of the following graphs:
Radar Very effective for easy understanding and for comparison of each questionnaire. Figure 5
chart: is typical chart for analysis.
Bar chart: Shows the ratio of six-point scales’ responses on each questionnaire, see Figure 6.
Cross Shows two questions contrast This is used to evaluate an characteristic of working, see
chart: Figure 7
DistributionVery effective for overall evaluation (Figure 8).
map: The nation-wide average response is used for calculating the point that is shown as
following equation:
According to the comparison between one assessment result and the nation-wide average
response, the level of one assessment can be derived. A final overall evaluation is
presented with the point that is the same distribution as that of an entrance examination
to a university.
Fig. 5. Radar chart for evaluation

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Fig. 6. Bar chart for evaluation.
Fig. 7. Cross chart for evaluation of characteristic of working (5 scales).
Fig. 8. Distribution map for evaluation

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2.4 Personal computer
NTT Offices are located all over the country, and building engineers in each district are responsible
for management of local buildings. To ensure that the same office evaluation occurs in every district,
a personal computer program has been developed. This program provides the following functions:
Editing and printing of the questionnaire
Input of replies to the questionnaire
Statistical evaluation of responses
Graphic display of evaluation charts
Input of the nation-wide mean response and standard deviation for calculating the deviation of each
assessment
Examples of this program’s display are shown in Figure 9. It is possible to cut the required
evaluation time to 20% of that previous required.
Fig. 9. Example display of the personal computer program

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3 An example at NTT
The development of this method was completed in April 1991 and the personal computer program
had been distributed to each district in June. To spread this method efficiently, an explanation note
that shows how to evaluate had been made out and distributed. Before distribution of the program,
this method had been used with representative workers who had been selected from each district
and their evaluation results were used as the nation-wide mean response. Since then, this method
has been used in each district, and this paper presents an example of the results.
Most NTT offices are relatively small with an average area of 100 to 200 square meters On the
average, there is about 1 personal computer for every 2.5 persons in these offices.
The example compares results before and after renovation. The renovation was that desk layout was
modified and carpet and partitions had been installed (Figure 10).
Fig. 10. Desk layout modification.

3.1 Profile
The profiles that show sex, smoking or nonsmoking,and period working in present office is presented
by using bar charts. Profiles are the same in both assessment (Figure 11). The ratio of smoking is
nearly 50%, which is the remarkable characteristic at NTT.
Fig. 11. Evaluation example of profile.

3.2 Evaluation of each category
The evaluation in each category is presented by using a radar chart: the rating of each category was
slightly improved after renovation (Figure 12).

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Fig. 12. Evaluation example in each category

3.3 Overall evaluation
The deviation value after renovation advanced 3 points and the mean response also advanced 3
points (Figure 13). The result in this office was higher than the nation-wide average even before
renovation. Moreover, this renovation was appropriate for this office and its effectiveness was
revealed by the POE method.
Fig. 13. Overall evaluation example

4 Conclusion
The post occupancy evaluation method developed at NTT and based on a questionnaire has been
presented. Building engineers has been continuously using this method in NTTs office until now. For
effective management of office facilities, it is necessary to continue such an assessment and to base
the renewal or renovation of offices on the evaluations obtained from office occupants.
5 Reference
Yoshimura.M (1990) Post occupancy evaluation of telephone offices Environmental quality 90,
England
Yoshimura.M et al (1991) A study on evaluation of corporate office environment level, Proceedings of
annual meeting of the AIJ (in Japanese), Japan, pp. 207–208

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Optimising premises performance through pro-active premises management
B.J.Varcoe
BWA Premises Management, Bromley, Kent, UK
1 Introduction
Premises are a largely unavoidable and integral part of any business or organisation that can have a
fundamental effect on it’s success. Whilst often representing a significant financial asset, their
primary role is that of meeting the business needs of their occupier’s core functions. The intensely
competitive 1990’s demands premises that are managed pro-actively, anticipating changing
requirements and having the flexibility to absorb their effects without detriment to those they serve.
This paper seeks to place premises in their true business perspective, and from that basis present an
approach to premises management that provides a way of creating pro-active flexibility, and thereby
the potential for optimised use, in what is by nature a somewhat rigid and slow-to-adapt entity.
2 The Needs of Modern Business
Who, five years ago, would have successfully predicted and made provision for the vast changes that
are taking place in Eastern Europe. Who fully appreciated the potential of the largely untapped
market place it represents? Similarly, which organisations three years ago correctly identified the
depth of the current downturn in the economy and prepared accordingly? These examples, like
countless others, show that business life in the 1990’s is arguably predominantly about the business
of change. No matter how well one plans, something is bound to happen that upsets the ‘status quo’
requiring a reactive approach and solution.
Modern businesses demand people and systems that not only survive the change thrust upon them,
but are able to take business advantage of it. In achieving this advantage, speed of response is
critical, for success invariably means appreciating the new opportunities, and responding with the
right products and services, ahead of the competition. Being first is what counts. There are few
prizes for coming second.
The response to change, and the time that response takes is not the whole issue, though. Before a
response to change can be made, the change needs to be identified in terms of extent and context.
It is very important to have a knowledge of all the issues at a strategic

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level. Specialist abilities are then put in their correct context and can be reviewed accordingly. The
modern economy, in requiring businesses and organisations to appreciate the strategic and respond
rapidly to the specific, therefore demands businesses and organisations that are flexible.
3 The Business Response
The business response to the requirement for flexibility is perhaps typified by British Petroleum. In
April 1990, the Chairman of BP announced a corporate restructuring eliminating six tiers of
management in reducing the existing eleven to a streamlined five. The flatter structure moves
decision-making authority nearer the business interface, creating an environment more conducive to
providing the flexibility and speed of response necessary.
Business is therefore seeking to streamline the operational procedures of its most valuable asset—its
people.
4 The Significance of Premises
Staff usually represent the majority of a businesses’ or an organisation’s cost of operation The
analysis that is summarised in Figure 1 compares the staff costs of a leading financial services
company to that of the premises they occupy, in terms of its capital, operating and replacement
costs.
OPERATION COST ANALYSIS
- PREMISES COSTS v STAFF COSTS -
FIGURE 1
This comparison tends to suggest that premises are relatively unimportant, and this often manifests
itself in corporate attitudes that regard premises as an overhead cost to be kept as low as possible.
Such an approach does not give due regard to two important facts however. Firstly, business
premises often represent more than 30% of an organisation’s total asset value, as illustrated in
Figure 2. Secondly, and perhaps more importantly, premises have a fundamental effect on the people
that occupy them—the business’s most

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important asset. The primary role of business premises therefore has to be that of supporting at all
levels, from the individual to the strategic, the goals and aims of the businesses and organisations
that occupy them. They must be as ready for change as any other business component, if not more
so, being able to adapt to or absorb its effects with speed and efficiency.
TOTAL ASSETS v PROPERTY ASSETS
I.T.COMPANY plc
FIGURE 2
Just as the market dictates flexible businesses, so the businesses in turn need to demand flexible and
efficient premises. They cannot afford to do without them.
5 Current Practice
Having identified the need for flexible premises that effectively meet the needs of their occupiers,
premises are, as stated previously, unfortunately all too often only seen to be a cost centre that has
to be minimised. ‘Value-for-money’ is all too often identified as being the achievement of the lowest
spend possible. The service that the premises provide as a result of that level of spend, and how
that relates to the real needs of the business, are not considered. Typically, all decisions in respect of
the premises are reactive, items being replaced when they break, or when complaints from staff
reach an intolerable threshold, and relocation options are considered when the staff car park can
contain no more ‘Portakabins’. Similarly, budgets are set year-by-year based on what was spent
previously, as adjusted by the Board taking into account what they consider necessary. Overspends
are commonly only identified at the point of occurrence or, worse, three or four months later when
the accounts department has processed all the orders and invoices.

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6 Pro-active Premises Management
Premises today need to be managed pro-actively. Those that react to events are not flexible and do
not serve the business interest. For business premises to offer optimum performance through pro-
active management, a good starting point is a written premises policy. Such a document states all
factors of company policy and standards that relate, or should relate, to its building stock. Each and
every company and organisation is unique, and therefore every premises policy will likewise be
unique, reflecting different policies, requirements and considerations.
7 The Premises Policy
The main board of a business exists to ensure the success of the mainstream business function or
functions. As a matter of course, therefore, they imply the basic premises policy by way of the
Business Plan. The premises policy produced by the premises or facilities department needs to
support and be derived from this, and should not itself be a source of influence.
The premises policy, although unique to each occupier, will nevertheless have a common core of
factors that should be included. Typically, these are as follows:
7.1 Location
Location policy should be considered in terms of at least two aspects:
(a) The ‘Macro’ policy, identifying, if necessary, regional, city or town location requirements or
preferences.
(b) The ‘Micro’ policy, stating locational requirements or preferences within the ‘macro’ centres such
as prime sites, secondary, out-of-town, etc.
These two aspects can be considered at whatever level is suitable for the organisation, ranging from
the ‘Group plc’ overview to individual departmental requirements within individual companies.
7.2 Real Estate
Policies and constraints in terms of real estate considerations need to be identified. Given the
proportion of total asset value property typically represents, this is a very important aspect. The
lease/buy mix needs careful appraisal in the light of factors such as liquidity requirements, lengths of
tenure, financing capabilities, market trends etc.
A wary eye also needs to be kept upon the disposability of those premises that have a limited
timespan of use to the organisation, particularly if the standards required of the premises by the
occupier fall significantly short of those generally expected by the market. Short term savings on
specifications and standards can lead to long-term costs as premises prove difficult to pass on,
particularly in a ‘bear’ market as is prevalent today.
Throughout all real estate policy, however, the primary purpose for acquiring interest in property—
namely, that of being a piece of plant that serves the core functions of the

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business—must not be overlooked. It has not been unknown for a business’s real estate dealings to
consistently contribute more to profits than the supposed core function, to the latter’s long-term
detriment.
7.3 Space Management
Effective space management in terms of budgeting and control cannot be carried out without defined
space standards. Ideally, these will be established using principles based on user need and not
status. The standards can be determined at departmental level by way of target averages per head,
but preferably will be set at a more detailed level that considers individual job functions within
departments. Use of Computer Aided Design facilities makes the application of such detailed
information in planning less of a time burden than it might otherwise be.
Once standards are set, a further refinement is the design and incorporation within the premises
policy of workstation footprints, identifying the furniture system components that comprise each
module as well. Such a modular approach if nothing else, should significantly cut down the effect and
cost of ‘churn’ and help to ensure that use of the space resource is maximised. Putting the
importance of efficient space utilisation in context, reducing a maintenance spend by 5% is
insignificant in cost terms compared to occupying 5% more space than is necessary, as shown in
Figure 3.
PREMISES COST ANALYSIS
- PROPERTY COSTS v OPERATING COSTS -
FIGURE 3

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7.4 Spatial Quality
The standard of spatial quality provided is the synthesis of many issues, and can vary by function
within the corporate structure. Areas with a high customer profile may, for example, warrant a more
generous overall quality and quantity of space than data-processing functions. Care has to be taken
to ensure that the standards are consistent and relate across the organisation, though.
Aspects that ought to be considered when establishing policy in respect of spatial quality include the
following:
(a) Information Technology (I.T.) can have a fundamental effect on premises. The full future
implications of I.T. in respect of the business or organisation needs to be fully understood and
established. To be safe, premises should be flexible enough to accommodate as a minimum a
workplace/terminal ratio of 1:1, linked by a Local Area Network (LAN) or multi-user system with
communications links to other remote facilities. This typically demands generous vertical and
horizontal service routes to accommodate cable runs, and air-conditioning systems able to cope
with the large heat emissions such systems generate. Indeed, in such circumstances, buildings
are usually faced with the problem of year round cooling, not heating.
(b) Premises Standards over and above legal requirements in respect of health and safety, fire
regulations etc, should be defined. A company may deem it prudent to standardise on a
minimum level of fire protection measures in excess of the requirements of the fire regulations.
Lighting standards are another area that ought to be identified for the different generic types of
space use relevant to the organisation concerned.
(c) Office Decor can benefit from being standardised to a set of co-ordinated schemes. These should
include statements in respect of matters such as floral densities and passive fabric protection, as
well as the more obvious colour scheme boards etc.
(d) Image, and other subjective concepts that reflect the company style, are difficult to establish,
but benefit from an attempt at definition. They will, of course be reflected in the specifications
and standards identified elsewhere in the premises policy, but specific statements can help
mould technical solutions and requirements to more accurately reflect corporate needs in this
area. For example, ‘conservative’ and ‘flamboyant’ immediately conjure up completely different
images and styles (and probably cost levels as well!) that will render a good selection of
properties in any premises search immediately inappropriate.
For each of these aspects of spatial quality, and any other category or matter that is identified,
specific attention should be paid in respect of high profile areas, such as receptions and foyers,
primary circulation routes, demonstration and customer training facilities, and any other type of
space likely to have an interface with customers or those of business influence.

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7.5 Asset Management
An ‘Asset’ is defined variously as
(i) an item of property
(ii) something advantageous or well worth having
(iii) the property of a deceased or insolvent person, considered as chargeable for all debts.
Asset Management seeks to maintain the first definition in the condition of the second, thereby
hopefully avoiding the onset of the third.
Policy in respect of asset management needs to be fully integrated and co-ordinated with every other
aspect of the accommodation provision. Maintenance standards therefore need to reflect and take
account of spatial standards, for example, so that an organisation trying to ‘squeeze a quart into a
pint pot’ recognises and provides for the fact that the wear-and-tear associated with such intense
use is high, thereby demanding a more intense, and expensive, maintenance regime to match.
Perhaps the most important statement of approach that can be made at this level, however, is that
the management of assets will primarily relate to the premises’ natural life cycle, as illustrated in
Figure 4, and not to annual, or even quarterly accounting
THE NATURAL LIFE-CYCLE OF PREMISES COST
FIGURE 4

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requirements. Whilst overall business affordability cannot be overlooked and ignored, effective
management of premises will only take place if that management, as a basic principle, identifies itself
to, and plans, monitors and controls, relative to overall building life, and the many individual
component life cycles within that. Pro-active management over this time period will provide the
opportunity for the correct macro-decisions to be made, which in turn will lead to the right micro-
decisions to meet the desired business requirements, particularly in respect of budgets.
General policy requirements can be established in a number of ways, ranging from the identification
of target task response times to outline planned preventative maintenance structures and
procedures. Alternatively, or in addition, standards can be established and monitored by way of pre-
set staff complaint levels.
Asset management policy will also specify standards in rather more detail in certain key areas.
Amongst these are security and cleaning. The level of cleaning provided in particular needs careful
alignment with corporate requirements and policy. By way of example, a standard specifying a clean
of all worksurfaces and desk tops every night is not suitable where there is no clear desk policy. The
performance level specified, and probably paid for, in such an instance, in all likelihood will not be
possible to deliver.
7.6 Staff Facilities
Special staff facilities warrant clear identification as policy. Clearly a policy to provide all staff with
the facility of a subsidised hot meal at lunchtime, or a car parking space within five minutes walk of
their building, can fundamentally affect premises decisions and costs.
7.7 Cost Control
A formalised system of pro-active cost control as a policy is a very important pre-requisite for
effective facilities management. There are three main factors that must be present for the proper
control of costs to be achieved—budgetary control, competitive procurement and value engineering.
Budgetary control involves the process of estimating, planning, checking and reporting costs at all
stages, from inception to completion, with the object being to ensure that planned budgets are never
exceeded unless approved prior to the event actually occurring. Carried out successfully, it is
anticipatory in nature, and provides the opportunity to consider a range of options to a problem or
task, affording sufficient time for a carefully considered decision to be made.
Having established the right budget for a given task, the next step is to procure the work in the
correct manner. In this respect, it is always important to ensure that the market is consistently
tested to obtain the best possible price for the performance required. Where this is not directly
possible by competitive tendering eg: with a direct labour force, check quotes should still be
obtained at strategic intervals to provide a monitor. The tax implications of the chosen procurement
path should also be borne in mind. Where, for example, VAT cannot be offset against other business
activities, the 17½% charge on a contract maintenance gang might make the direct labour
alternative appear financially more favourable.
The third component necessary for effective cost control is value engineering—the elimination of
redundant performance. Procedures to test every solution and assumption

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for more efficient alternatives must be built into the cost control function, to ensure as far as possible
that the right level of service is provided, in the most efficient manner, and not too much or too little.
Effective cost control demands all three facets—without one, the other two are seriously impaired to
the point of being ineffectual. For example, a carefully budgeted task that has been thoroughly value
engineered, and thereby represents the right performance level for the operation, might cost 10% or
20% more than it otherwise need to if let on a sub-standard contract based on an inappropriate
‘negotiation’ ..........all cost control is lost.
With all facets of the policy drafted, each then needs to be rigourously interrogated and challenged.
All redundant performance has to be identified and eliminated, and all aspects of the document need
to fully co-ordinate with each other to provide a cohesive and consistent premises statement.
8 The Pro-active Tool
With the premises policy established, the premises department has a tool it can use to substantial
benefit.
Ideally the premises policy, or an executive summary of it, needs to be ratified by the Company
Board, or their equivalent. The document will contain many aspects of policy fundamentally affecting
the business or organisation in terms of how effectively it will operate and how it will be perceived by
the outside world. As such it merits a portion of their time.
The premises policy, by establishing levels of premises performance, even if only generically, will
represent a budget level of premises cost. This needs to be identified and reviewed in respect of
general business affordability, and other measures such as expenditure/profit ratios etc. It is a very
fortunate and probably unique premises department that finds that it’s budget cost level will be
within perceived affordability strictures. The premises policy will provide the means of making the
correct value judgements, however. Decisions can be made as to whether policy performance and
standards can be eased and refined in certain areas to reduce cost levels, or conversely whether
they need to be maintained or even increased where the derived benefit outweighs the expense.
The next logical extension beyond deriving an indicative budget level for premises is where real pro-
active premises management is established, however. The premises policy needs to be the basis for
the generation of a number of business scenario models that reflect possible and probable avenues
of future development and events, as illustrated in Figure 5. Once defined and established, they need
to be checked and updated on a continual basis to reflect changing business or organisational
requirements, as well as market conditions. Incorporated with the premises policy into the centre of
the premises or facilities department’s existence, the models form the basis of any action plans and
are valuable for disseminating a general understanding of the theoretical base.
With a system of premises management established along the lines described in this paper, change is
managed on a daily basis, and provision of the premises resource is

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BUSINESS SCENARIO MODELS
EXPENDITURE v INCREASE IN ASSET VALUE
- COST SUMMARY -
FIGURE 5
continually monitored and adjusted as required to meet business needs. The premises policy, in
identifying the real business or organisational needs, in turn inherently provides premises with the
necessary short-term flexibility required of them, whilst the strategic models exist to identify, plan,
action and meet fundamental requirement changes before their accommodation needs arise.
The establishment of an agreed premises policy, and its use in building and maintaining business
models, provides the vehicle for pro-active management of property. Corporate premises
requirements are established in a manner that promotes the optimisation of the property resource,
and instils management disciplines that predict change and are ready to accommodate it, rather than
react hastily to it in an unco-ordinated ad-hoc manner that is unlikely to meet the constraints of
time, quality and cost.
With a fully developed and utilised premises policy, the pro-active premises department has a heart
that beats.

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CHAPTER FIVE
‘Value engineering is an organised creative approach which has for its purpose the efficient
systematic identification of potential cost savings and the elimination of unnecessary cost. Value
engineering has the greatest effect on savings during the preconstruction phase. It includes
operability and maintainability; a higher investment cost may be prudent when evaluated against
future operating costs.’
The Construction Management Committee of the Construction Division, compiled and edited by
George Stukhart.

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Development of models and methods for the management of the building process and
design
R.Vinci
Sub-Project 3 ‘Quality and technological innovation’ of the CNR’s Progetto Finalizzato Edilizia, Milan,
Italy
Abstract
In the world of construction the necessity of dealing with buildings not only as objects to be built,
but as a complex system to be managed over time has recently becomes evident. The concept of a
finished product is replaced by that of a building as a dynamic object, which might undergo different
processes: changes of its uses, changes in its purposes, management of its different functions,
ageing management, etc.
Thus it is important to obtain buildings not only flexible on the basis of predetermined solutions, but
also buildings able to modify the management parameters as well as to fulfil further technical
requirements which cannot be determined during the first and well-known design stage.
Hence comes the interest in the management. The paper intends to present a scientific undertaking
of the National Research Council of Italy, named Progetto Finalizzato Edilizia, both in its details and
as a whole.
The main aim of Progetto Finalizzato Edilizia is to set up a link between researchers and producer in
order to trigger off a course of actions leading to modifications and innovations in the building field
which can strengthen national experts on the European market.
Keywords: Design, Research, Management, Information.
1 Foreword
To face the topic of Architectural Management it is useful to start by saying that the subject is
presently being completely reshaped throughout all the industrialized Countries and that such a
process is gradually, but steadily changing and that it must rely on two basic considerations:

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- first, the awareness of the role of the final user is changing and he is not willing anymore to
delegate completely the management of the building process to the designer, so, being more aware
and ‘‘instructed” as concerns the building technology, he looks for new opportunities and forms of
direct decision-making intervention.
This attitude does not just aim at improving the control—and sometimes, the cheapness—of the
process, but also at affecting—at the beginning just to improve his own technical knowledge and
awareness—the choices and the possible alternatives for what concerns the definition of space, and
mainly the technical and technological definition of the plan;
- secondly, in the world of construction the necessity of dealing with buildings not only as objects to
be built, but as a complex system to be managed over time has recently becomes evident. The
concept of a finished product is replaced by that of a building as a dynamic object, which might
undergo different processes: changes of its uses, changes in its purposes, management of its
different functions, ageing management, etc.
Thus it is important to obtain buildings not only flexible on the basis of predetermined solutions, but
also buildings able to modify the management parameters as well as to fulfil further technical
requirements which cannot be determined during the first and well-known design stage.
This implies abandoning the classical planning schemens and, sometimes, making all the requirement
of a building fit in a “management” of its own over a period of time which does not expire with the
“end of the building works”, but going on for several decades, thus requiring the application of those
forecasting attitudes that so far have been widely employed in the economic and financial field.
2 The problematic area
Hence comes the interest in the management. The subject matter of Architectural Management
seems to be destined to free itself from a too obedient and monotonous reference to the mere
building and architectural sphere, and imposes to the operators of the process more differentiated
competences and a stronger and stronger disposition to co-operate with the others, so, many of the
possibilities of creating an actual operative synergy will be based on the improved attitude of the
individuals to communicate with one another and, first of all, on the actual availability to understand
each other.
Such a process of re-adaptation has been, for instance, completely assimilated (in the most
advanced production sectors) by the industrial sphere, where the capability of foreseeing the change
of the production activities and their consequences, seems to be economically more important than
the simple initial definition of the activities themselves and, as a consequence, implied the fulfilment
of new competences for a more precise preventive evaluation for what concerns the planning and
the management.

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However, the main “link” between the users’ demands and the building process is still the designer,
but this profession is becoming more and more complex according to a series of factors that, while
contributing to further differentiate the process and the relationships between the operators, has not
so far identified new intermediate professional roles able to cope with it. So, the designer is still the
main point of reference for the whole process, from the identification of a “need” to its solution from
the building point of view.
For instance, the designer is the main link between the technical standard and the building process,
the main operator for the transmission of the information related to the greatest part of standard
contents—in particular the ones concerning the environment and technology—and still this peculiar
professional figure has the task of ensuring the achievement of those results that some time ago
belonged to the rules of practice.
This exacting task gives this traditional figure of the process a new and different importance, based
on new and different responsibilities requiring articulated competences, extensive references and
continuous specialistic investigations (town-planning, architecture, technology, ergonomics, economy,
finance and programming, study of molecular structure, plant-engineering, etc.) in order to mediate
the technological development on the one hand, and the transformation of the social and cultural
needs of the territory and of users on the other hand, forcing him to acquire and manage suitable
instruments of analysis and evaluation. The designer is often induced against his will to forget
obvious and simple factors because they are considered to be already solved, or easy to be solved.
So there arise new needs as concerns the disposition towards the Management: also the designer, if
he wants to realize his own ideas (for instance the “architectural quality”), must find out solutions
implying and enabling the attainment of others’ goals; this consideration leads to the need of
knowing the other operators of the process and to understand their problems, co-operating to solve
them.
A plan can be considered as good when everybody can identify with it in order to provide the highest
contribution to its achievement; in other words, it is a problem of synergy, whose possibility of being
realized and whose efficaciousness are widely demonstrated by experimental applications of the
physical science.
So the designer must show good dispositions to the dialogue and a firm will to co-operate, as well as
a patient awareness about the fact that his role can be realized only if he takes part together with all
the others in the building process.
Nevertheless it is to be considered that planning, even if characterized by independent and specific
methods and instruments, can not be completely affected by the presence and the action of the
other operators of the building process. Planning originates as an interpretation of cultural, social,
political (and red tape), economical, geographical, production and technological components of the
space-time context in which it takes place, but

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it must always be an “interpretation’’ and not a mechanical outcome of these process components,
since each of them can be taken and used more or less frequently, according either to the designer’s
will or to his ability to act as an “intermediary” with reference to the specific needs of the other
single operators.
This way of thinking is a primary element for the comprehension of the designer’s role and it is
certainly independent from what is planned: this means consciously taking on a correct method and
ethical behaviour as to the planning action, that must be able to be extended beyond the limits of
the “construction action”.
If this way of thinking is correctly interpreted it becomes clear that it can be seen as the core of the
management required by the building sector in the short term.
However, if any pattern of traditional building process is carefully considered, it becomes clear that it
shows many faults with reference to the stillness of the sequences between the various stages of the
planning approach:
- the provisional planning, including technological and economical decisions;
- the comparison with the market production reality and the consequent correction of the initial
technological choices;
- the final stage of planning definition and construction, that is meant to be a final synthesis between
the planning will and the production reality, but generated—and often heavily conditioned—by
economic problems.
So there is the need to bring together these aspects, to modify consolidated procedures that
nevertheless are no more an economic solution as to the planning Management that must try and
reduce the negative effects of the excessive breaking up of the process and, particularly, of the
“disconnection” between planning and construction.
In other words, the function of planning must be defined again in the light of an industrial logic, not
as an alternative or a contrast to the traditional way of working, but as a more rational operative
instrument giving a suitable answer to the complexity of the problems to be faced using more
effective criteria and in view of better qualitative results.
So the plan must evolve, actively involving all the operators of the building process whose activities
are however conditioned: in my opinion, the importance and timeliness of Management are to be
found in this apparently little difference between a passive behaviour (typical of the so-called “mass-
production” sequence) and the acceptation of a “sharing” role.
This topic is to be interpreted as an optimization of the relationships between the operators of the
process and, through the interpretation of the designer, it becomes the object of the research
Program—in some of its research and study aspects—that will be briefly introduced in the second
part of this short contribution.
For a better comprehension of the extent of this compelling task, it will be more useful to refer to
the available program and final documents.

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3 The building goal-oriented research programm of CNR
Progetto Finalizzato Edilizia (PFEd), a scientific undertaking of CNR—Italy’s National Research Council
—is a 5-year goal-oriented research programme designed to financially support building
organizations by allocating funds up to a total amount of 115 billion lire (82.14 million dollars). PFEd
has been offically launched in May 1989 and it has undertaken and partly completed now its second
Executive Program.
PFEd’s aim is to act as a link between the research field and the production field in order to foster
actions and processes leading to changes and innovations in the building field and able to forward
the national operators on the European market.
PFEd is divided into three Sub-projects, each involved in specific research trends:
- Sub-Project 1—“Process and procedures”: aims at improving the building process status and its
relevant procedural stages organization.
- Sub-Project 2—“Design innovation”: is meant to provide the grounds for developing tools and
cultural skills that can help designers cope with and manage the design process in building.
- Sub-Project 3 -“Quality and technological innovation”: is addressed to develop innovatory
technologies and to support standardization, experimentation and control.
In particular it has been leading the research programmes to achieve innovatory goals, which in turn
can assure the growth of quality in the building production and construction sector.
The transferability of the results is an important aspect which will undoubtedly affect the Project’s
further choices.
It is no use to try and detect, in the latter phases of the research programs, only the ways to
transfer knowledge, just as it seems as much difficult to expect that this transfer acts outside the
research units that have worked within the field of the Project.
So the transferability is to be ensured during the working-out phase of the programs and achieved by
a part of the operators, within their specific field, which is with no doubt the most fertile as concerns
either scientific or technological receptivity.
The first theory is, in fact, that only through a co-ordinated intervention and through strategic and
even international choices it becomes possible to establish research trends for the solution of many-
sided and complex peculiar aspects, which would otherwise only poorly affect individually the
coherent development of the building field, especially in this moment in which, due to the opening of
the European Market, quality and qualification are going to play a more important role than in the
past. In this sense, this Congress represents a very stimulating and useful chance for a further
confrontation.
3.1 Some of the main expected results
Sub-Project 1 “Process and procedures” mainly aims at clarifying,

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simplifying and innovating the main procedural phases of the process, for instance the relationship
between operators and their relevant tasks, the technical management and the economical and
financial management.
As concerns Sub-Project 2 “Design innovation’’, the main goals are to obtain specific results in the
area of the methods and of the instruments for the planning as concerns both the innovation of the
contents and the planning organization, and the integration of information technologies in the
working practice.
As particularly regards Sub-Project 3 “Quality and technological innovation” all the efforts focus on
setting up a series of innovatory building components and systems in order to improve the qualitative
aspects. Another goal to be achieved consists in the improvement of the organization for the
management of quality, by dealing with the subject-matters related to the technological transfer and
to qualification.
Fig.1. Generalconfiguration of the Executive Program as a handbook for the understanding of

Progetto Finalizzato Edilizia

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The scheme in fig.1 points out the thematic contents of the research Areas included in the three Sub-
projects as well as the Experimentation Area (AS), a study for the construction of 3 intelligent
buildings in a 5-years period which is to be interpreted as an outstanding result of PFEd’s research
activity. These buildings are to be used as a test-bench of the project as a whole. B—management
instruments (technical/structural and economical), concerning the organization of criteria of
knowledge and proposal as regards:
- management of preventives and final evaluation (especially as concerns rehabilitation);
- technical and managerial training for the people involved in the process (new professional figures,
programs and structures, contents and reliability, etc.);
- assessment of production processes and goods (technical certification and standardization as
concerns the innovative and traditional aspects with a view to the future European accomplishments);
- co-ordinated action for the rehabilitation, the recovery and use diversification (for parts of town-
scale, for single buildings or for classes of use destination, etc.).
Generally, SP 3’s main goals concern:
- as regards management instruments (B), the goals range from the feasibility studies and the critical
verification of the existing instruments, to the suggestion of experimental methods and activities
which are outlined in the contents and which can depend on the technical and building sphere,
rather than on the economical and formative one.
Besides, it should be taken into consideration that the evolution trends of the building sector are not
structurally uniform and they have to be approached in a different way by the various operators of
the building sector; it is, nevertheless, through this research activity that a sector is able to sense
and to foresee the changes: this is the reason why inside SP3 some elements have been found,
acting as general reference instruments for the achievement of the specific research goals within the
Project and the sector; these elements are:
- innovation, meant as a process for the promotion of reviews or new solutions, by introducing new
systems and criteria;
- organization, meant as a process for increasing the functionality and the efficiency of structured
and systematic operations.
The main goal, however, remains quality, which is a basic concept, especially during the important
period of transition which will lead to the effective internationalization of the markets and that will
also turn, as a consequence, into an increase of competition on the national market.
In any case, quality, is not only a goal to be accomplished, but a “philosophy” and to comform to it,
means to witness the level of maturity reached by a sector. If this philosophy is fully understood by
everyone, it leads to a great emphasis of the overall results: in this connection, research is one of
the best available tools and it gives a very qualitative chance.
Looking at the building sector, it can be noticed that the

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Looking at the building sector, it can be noticed that the analysis of the quality of the technological
and scientific changes and the interactions existing between them and the strategies of the
enterprises, as concerns the production, allows to underline how science, technology and practice
can be considered as a “whole” representing a single “composite” resource able to develop individual
effects on economy and society.
However, this happens in the building sector to a lower extent than in other industrial sectors.
This consideration underlines the discrepancy between the need of intensively using a resource that
becomes more and more essential and expensive—as know-how is—and the evident impossibility of
attributing to its development and to its evaluation the economic rules that belong to the contractors
activity, bearing in mind that its development is made possible by the contributions of science, which
stands out by virtue of its meaningful and peculiar aspects of self-propulsion and substantial
autonomy.
Anyway, as it has for a long time been underlined, technology is an intermediate moment between
the area of the theoretical knowledge (science) and the area of the practical knowledge (technics). In
this way, technology has an important part to play; it has to orient the scientific efforts toward very
precise targets, and then it has to organize these efforts into a system, programming the use of the
results in order to limit lacks of balance as well as undesired consequences, resorting to rationality
and to the multitude of disciplines. These latter characteristics are, as a matter of fact, the most
meaningful features of technology.
Contractors (which, as a matter of fact, are most interested than all the other different operators of
the building process, in obtaining the results of the research carried out by this Sub-Project) have to
face several practical problems, in order to manage this type of relationship. These practical
problems are generally related to:
- the involvement, which does not always mean real will to provide a practical contribution, which is
often limited to passive interventions;
- the accessibility, which is the equivalent of the available and applied degrees and levels of
transferability of scientific, technological and technical know-how;
- the possibility of getting the results, that is to say, the interest of the individuals to use the results
in an exclusive way by wielding a monopolistic defence.
These aspects can be solved, whenever the general interests are correctly protected by the public
institutions, through the “information management’’, that has a large system of definitions which all
share the peculiar characteristic of flexibility.
It is already known that research, except for few sectors, is a field with no other barriers but
knowledge. It is also known that the technological and scientific community has always been an
“open” system that, by virtue of this characteristic, continuously gets new resources and stimula for
the improvement of the

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acquisitions, through the comparison of the ideas, leading to innovation through an iterative process
of reviews and new solutions, which have been started off by using new systems and criteria.
So, we believe that researchers must undertake to open the “way” as concerns the expectations, the
goals and, obviously, the interests of the various operators involved in the building process in the
field of technological knowledge which, still at present, is a partially unexplored field, but very
attractive and potentially rich as concerns the various applications and the developments of the
research activity.
One of the problems that SP3 had to be faced with, during the introductory phase and during the
first year of activity, was to compare with the heterogeneous category of the operators involved in
the research program (producers, contractors, researchers, professors, experts, etc.). As a matter of
fact, each of these categories has its own peculiar competences and specific criteria to be adopted in
order to approach the research activity, and all these criteria are highly differentiated as concerns
both strategy and the concreteness level of the results that can be obtained.
All these different contributions are moreover very important and useful for the growth of the sector,
and under this principle, it has been tried, as far as possible, to start an Executive Program
concerning the first three years of activity, taking into account all the needs and values, while
privileging the proposals aiming at:
- the actual realization of innovation,
- the experimentation on new technologies,
- the increasing of the working capacity of the structures having a key role within the process,
- the critical analysis of the instrumental areas,
- the pointing out of new contents and tools to be employed for training.
A particular attention was paid to those research goals that could have provided strategic and
instrumental contributions that were already looking forward to 1993 European Common Market.
Within SP3 these contributions have been interpreted in a synergic way with reference to the
procedural backslidings that were assumed in SP 1, and they have been proposed by the producers
and by the bodies concerned with research, experimentation, certification, standardization and
technical training.
So, at the end of the day, the main aim of Progetto Finalizzato Edilizia is to improve the technical
knowledge in the building sector, but also to set up links between researchers and producers in order
to trigger off a course of actions leading to modifications and innovations in the building field which
can strengthen national experts to better “manage” quality on the European market.

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Value management enhances professional development
J.E.S.Dale
The Polytechnic of Huddersfield, School of Architecture, Huddersfield, UK
Abstract
My aim is to show how Value Management sandwiches together Accountability, Buildability,
Creativity, Coordination, Communication and Teamwork in a positive, constructive and organized
methodology, and that it is an additional (rather than an alternative) expertise which all
professionals involved in the design and construction of buildings would find an asset in respect of
their professional development.
Keywords: Value Management, Teamwork, Communications, Creativity, Professional Development,
Architecture.
1 Introduction
“Success” (or, in a depressed market, ‘‘survival”), in business is not based on any single issue. It is a
combination of factors that includes the harmonious integration of time, cost, and quality; and
coordinated management, teamwork and productivity, with highly trained and dedicated people
working together, led by skilled and creative managers. In other words, to achieve both success and
progress, it takes a disciplined approach, an operating methodology, and a work ethic supported by
a committed management/1/. However, “Progress” often means “Change”—a change in the way one
thinks and a change in habit patterns. This is the biggest obstacle to overcome.
The aim of this paper is to show the key elements of Value Management which contribute to the
overall improvement of the design and building procedure, and how a knowledge of the philosophy
and methodology of Value Management can enhance the professional development of the Architect,
Engineer or anyone involved in the design of buildings.
The above hypotheses contains a number of components which form the parameters of this paper,
namely:-
- Value Management—the key elements
- Design and Construction process and procedures
- Value Management related to contract procurement
- the integration of the above factors

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2 Value Management—an overview
The generally accepted definition of Value Management is :-
“Value Management is a Function-Oriented, Multi-disciplined Team and Systematic
Approach to provide Value in a product, system or service” Value Management is not a single
initiative, or even a group of multiple initiatives. It is a methodology that embraces those initiatives
and management skills that make a business successful. It means “the ability to manage value,”
and the word VALUE is a marketing term—not an architectural or engineering term/2/. Only the
Client/User/or Customer can determine the ultimate Value of any facility or product.
Value Management relies heavily on teamwork, good communications and coordination. It has, as its
core, a structured, multi-disciplinary team who are committed to achieving a common goal. It has a
proven record of success. In the design and construction field, it has been proved that the Value
Management Team can produce more ideas, better solutions and better ‘‘buildability” requirements
than the individual disciplines working alone.
A brief description of the key elements of the Value Management approach is set out below:-
2.1 Function Analysis
This is a specific technique or methodology used to establish objectives and to eliminate
uncertainties. It is a means to an end, and not necessarily an end in itself. It focuses the mind on
the precise task in hand, and sets targets for the creative problem solving techniques to follow. It is
often described as the “heart” of Value Management.
2.2 Creativity
Value Management uses Group Creativity as a means to solving problems. It is a recognised fact that
“the use of a multi-disciplined group has been shown to yield from 65–93% MORE IDEAS than from
individuals working alone”/3/. The Creative phase is often referred to as the “backbone” of Value
Management.
2.3 The Multi-disciplined Team
This is not just the design team. It is a team which is flexible, and can extend to incorporate the
Client, the end User (operations and maintenance operators etc.), and the Contractor. This team
does NOT meet for just a few hours once a week in the usual way. It is virtually “locked together”
for an extended period of time—conventionally known as the 5-day 40-hour Study. No other system
contains this concentrated “togetherness” through which a rapport is established between the
members of the team resulting in a “thinking alikeness”. This is the “brain and nerve centre” of
Value Management.

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2.4 Value Criteria
This incorporates techniques such as Cost:Worth Analysis. The use of the multi-disciplined Team
plays an important role here, because each discipline has a different perception of Value, and it is
necessary to evolve a “common value criteria” if communications and coordination are to
improve. The value management team’s goal is to establish this common value criteria.
2.5 The Job Plan
This represents the discipline or structure of the system, similar to the Plan of Work which architects
uses. The VE job plan is universal, and although there are slight variations, the principle elements
and procedures are always present. This is the “life blood” of Value Management which runs
through the whole process linking all the elements together.
From the above we can see that the Multi-disciplined Team plays a fundamental role in Value
Management since the rapport that develops between the individual members throughout the Study
improves; hence communication and coordination skills also improve, due to the structured nature of
the job plan. The Value of these skills, once learnt, will extend beyond the Study itself—they become
an ATTITUDE of MIND.
3 The Design and Construction Process
Now it is necessary to examine briefly the essential elements contained within the design and
construction process.
3.1 Changes in the Building Process
The building industry as a whole has little corporate identity. There are many features which set it
apart from other process industries and which accentuate the need for professional management.
Every project is a “one-off-custom-made’’ product. The team which produces a building is in
existence only for the duration of that particular project, and the members of that team are drawn
from a diverse background of professions and skills.
The NEDO Report/4/ of 1988 stated that:- “of the changes and new trends which now influence the
procurement of commercial buildings, the most important is the increasing fragmentation of the
design and construction process, as more and more specialist inputs are required and
employed...... The industry is not only fragmented in terms of separate businesses, but also by the
diversity of professions and trades, and by the increasing numbers of self-employed people....... The
proliferation of organisations and specialisms has aggravated the existing problems of
coordination, communication, motivation and control, both within the industry itself and
in its relationships with the customer....... the research has shown plainly that management
was all too often inadequate”.

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However, it is interesting to note that a similar situation existed back in 1963 when the Tavistock
Publication was commissioned /5/. The “instability and lack of definitions of responsibility for
members of the building team resulted in a general anxiety among all concerned”. It was this report
that highlighted the communications aspect—“Communications of many kinds constitute the
energising and controlling factor in the development of the building team. It is through
communications that it is conceived, developed and directed in the service of the building
process”/6/. It appears that 25 years later, despite the fact the industry has grown and expanded,
the same situation remains.
3.2 Identifiable components
The two most identifiable tasks in the building process are that of design and construction.
Traditionally these were allocated to the Architect and the Main Contractor, each separately
employed by the Client.
In its simplest form, it can be expressed as follows:-
the Client
the Instigator of the project, without whom it would not exist. This component incorporates the
financial element, and also extends to the user/occupier components.
the Architect
traditionally the leader of the design team—this component incorporates ALL the people involved in
the design of the project
the Contractor
the Builder—incorporating the materials element and all those who are involved in the construction of
the project.
Fig.1 Basic Components of the Design and Construction process
In earlier times the Architect felt technically and contractually secure enough to perform an overall
management function on behalf of the Client. “The growth of new technology and greater prevalence
of court action on professional liability have together reduced his readiness to manage and take
responsibility’’/7/. Over the same period, the work of the contractor has been similarly curtailed in
scope. He is finding it impossible to encompass within his organisation all the technical know-how,
and is becoming increasingly dependent on specialist firms to ensure that the work is done properly.
Figure 1 however, is very simplistic—and is true for possibly less than 20% of all construction work
(one-off houses/small extensions etc). In all but the simplest of projects:-
- the Client—is not the end user of the building;

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- the Architect—is not the sole designer of the building;
- the Contractor does not build the project entirely from his own resources.
Today—THIS (figure 2) is a more realistic diagram of the manpower required to design and construct
a project—and even this does not fully encompass everyone!!
The TEAM has not only EXPANDED, but also DIVERSIFIED. What’s more-this diversification is
increasingly taking place at an earlier stage in life-namely in training and education.
Fig. 2 Interface between Client, Design and Construction

The change has stemmed partly from new market pressures, with the switch to commercial
customers motivated by the need to compete. For them, early completion, attractive designs, user
satisfaction and low running costs were essential. Accordingly, several of them set about improving
the management of their own building projects. At the same time, an increasing number of
professionals and builders saw the market need to provide management services which would enable
the modern building industry to perform better/8/. In the UK, the changes to the Code of Conduct
for Architects in 1981 made it possible for the Architect to take on the role of Developer as well as to
become Directors of building companies. The profession, already in a dilemma since the report by
Lord Esher and Lord Llewelyn Davies, became even more divided. The proverb “divide and conquer”
would have been an appropriate epitaph, for the Architect as leader of the team was reaching a crisis
point. The new role of Project Manager was being introduced in the capacity of team leader and
coordinator of the building process on many of the larger scale and faster construction projects. This
seems to have created even more confusion, especially with regards to control and liability. Hence,
not only was the

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leadership aspect in question, but also the range of contracts available, was also changing and
expanding.
4 Value Management related to Contract Procurement
In the UK there are, basically, 3 forms of contract procurement:-
- Traditional; Design & Build; and Management procurement. Each form has inherent
advantages and disadvantages, and the final selection depends on what is “Right” for the individual
project, i.e. Choose the contract to suit the job: NOT make the job fit the contract!!
In the traditional forms of contract used for building projects the Contractor has no contact with the
Architect until the documents are released for tender purposes. The introduction of Management
Contracting has not only opened the door for contractor participation in the design process, but it has
also insisted contractually that it shall happen/9/. Similarly, the development of the Design and Build
Contract meant that the coordination of the design process and building procedure could take place
at a much earlier stage than it would in the conventional type of contract. Finally, the introduction of
the North American form of Construction Management contract saw yet another way of integrating
the skills of all the design-construction team. Whilst the increased pressures of time (i.e. the need to
design and build faster) influenced the growth of the new forms of contract, it is the “buildability”
factor that has made them work. Detail design cannot be divorced from construction without major
cost and time penalties/10/.
Now let’s look at procurement and procedure together, in terms of the application of Value
Management.
First, the DESIGN & BUILD Procurement method—here, all parties (Client; Architect; Contractor)
are known at the beginning of the project. Hence, Value Management studies can make the best use
of a totally multi-disciplined TEAM - with representatives from all parties. In fact, it would be to the
Design & Build Contractor’s advantage to promote Value Management, since, under this method of
procurement, he is the party who carries most of the risk.
With the MANAGEMENT Procurement method, the situation is slightly different. (This refers to
Management Contracting as opposed to the other forms of Management procurement, such as
Construction Management). Whilst the Client and the Architect/Design team are known at the start of
the project, the time of the appointment of the Management Contractor can vary—though it is usually
recommended to appoint one at an early stage of the design. Secondly, it is the job of the
Management Contractor to MANAGE the project, NOT to BUILD it—i.e. he does not CONSTRUCT the
building. Finally, the various contract packages (often numbering over 100), which represent the
parties who actually BUILD the project, are not usually known at the outset, but are released
continuously throughout the construction period.

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Nevertheless, it would be to the CLIENT’S advantage to consider the use of Value Management at
the stage when the Management Contractor has been appointed, thereby involving the 3 principle
manpower components—as an aid to strategic planning as well as an aid to the design and
buildability aspects-since, (in this form of procurement), it is the Client who carries the risk. Value
Management could also be used at both later stages of the contract, and for individual packages,
since these projects tend to be both extensive and often complicated.
Finally, the TRADITIONAL form of procurement—when only the Client and the Architect/Design
team are known initially. The Contractor is usually appointed after Tender stage, by which time the
design of the project has virtually been completed. Whilst, Value Management can be used during the
construction period, with participation from the contractor, it is more cost effective at the pre-tender
stage, when it can be used to coordinate the design team with the client/user components.
Value Management, therefore, can be applied to any of the procurement methods.
5 Teamwork and Communications
The entire subject of Teamwork, Communications and Coordination within the Construction Industry
covers a vast area. In the United Kingdom, numerous articles and Reports have been written about
this topic—not only recently, as per the NEDO Report/11/ of 1988, but as far back as the Banwell
Report/12/ of 1964. WHY?—The answer appears to be because, even after all the recommendations,
the surveys, analyses and proposals, there is still a lack of Teamwork, a lack of
Communications, and a lack of Coordination within the Construction Industry. The
situation has not yet been resolved.
I have spent 17 very enjoyable years working as an Architect in practice. Like most Architects in the
UK—when you are given a project, you are with it from start to finish—that is, you do the design,
then you produce the working drawings (if you are lucky—you may get some assistance, but not
always) and then you supervise the work on site right up to the end of the job. The same is true, I
think, for most Engineers and Quantity Surveyors. Being part of this gigantic, multi-disciplined TEAM
is stimulating, it’s fun,—and yes, of course, at times it’s chaotic—but it’s still enjoyable!!!
Last year I moved into the academic world—teaching architecture. The first thing that I noticed was
the fact that I was surrounded, almost entirely by other architects (students and staff), and the
second thing was the realisation that these students spend 5 years training to be architects,
surrounded only by other architects, doing one-off projects on their own. Since I am the 5th year
tutor—by the time they have reached this stage of the course—they don’t even like doing a group
project amongst themselves, let alone going to the lectures given by the engineers and quantity
surveyors!! TEAMWORK does NOT EXIST.

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So Figure 2—should really look like THIS.
Fig. 3 The Client: Designer: Contractor: Communications system

I have deliberately chosen the honey-comb—for several reasons:-
First, although the individual disciplines are trained in isolation of each other, they are taught the
principles of the other professions. There is an awareness of what “the Team’’ consists of. Hence,
they do not appear in little boxes—there are routes of access to everyone else—however tortuous it
may appear.
Secondly, like the bees producing honey, we are all working towards the same end—to produce a
building that satisfies the customer. We are all building the same honeycomb. Unfortunately, there is
a tendency to stay within one’s own “cell”—and, as you can see—communication between the cells is
sometimes difficult. The lines of communication are somewhat obscure!!

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Also, the bees carry out their work in a set sequence—they have a Job Plan, a plan of work which is
both structured, and very well coordinated. We have a plan of work—but the COORDINATION
often leaves something to be desired.
Finally, the bees have a common set of “VALUES”—we all have Values—the problem is, we all have
different VALUES—Often, because our education is in relative isolation, we assume that everyone
else’s “VALUES” are the same as our own—and this is not the case.
TEAMWORK relies on good COMMUNICATIONS and COORDINATION NOT on
ASSUMPTIONS!
Fig. 4 Communications—“The Birthday Present”

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This popular cartoon has appeared in various forms over the years., but I have made one slight
alteration at the end. I call it ‘‘the Birthday Present”.
1. The CLIENT.—in the goodness of his heart, wants to give his 6 year old boy a specially designed
Swing for a birthday present. You can almost HEAR the reasoning, the philosophy, the value put on
each design by the various parties involved:-
2. the ARCHITECT—“it is a statement of the grandeur of a momentous occasion, reflecting the
divorce from post-modern, de-constructive asymmetry to the neo-classical revival”.
3. the ENGINEER—“well—how old IS the tree? it could fall down any time, and I can’t take any
chances”.
4. the ESTIMATOR—“you just said “a swing” -1 didn’t think you meant THAT sort of a swing”
5. the ENVIRONMENTALIST—“a tree is a living thing—which should be allowed to keep its own
natural beauty, without human ornament!!”
6. the FIRE OFFICER—“That tree is a fire hazard—2hr fire rating—you must be joking! You won’t
get an certification of occupation..”
7. the CONTRACTOR—(one of the most “creative” persons in a project)—“I thought of a more
buildable solution at no extra charge—and NO, it did NOT fall off the back of a lorry!!”
Seven people with seven valid reasons-
- UNLESS they COMMUNICATE with each other;
- UNLESS they establish a COMMON VALUE CRITERIA:
- UNLESS they act as a TEAM;
- you COULD finish up with 5 swings and no tree!!
And there is one more person who should be considered—one who is frequently left out of the
design and construction process—that is—the END USER—what did he actually WANT for his
birthday?
It is this Team effort approach which needs to be encouraged—an attitude of “our project” as
opposed to “my project”. The value in experience alone, of attending a Value Engineering Study
must contribute towards an appreciation of the advantages of working as a team over that of each
discipline working independently. Encouraging groups of professionals from disparate backgrounds to
seek out answers, to go beyond the obvious, is one way of allaying our natural prejudices.
Two other Art forms rely on this aspect, namely Music and Drama. The orchestra works as a team to
produce the harmony in the desired form under the leadership of the conductor who, in turn,
interprets the score of the composer. The Director directs the actors, actresses and stage
technicians; coordinates the costumes and scenery; and interprets the script of the author to produce
a play or film. Teamwork, communication and coordination are an accepted part of these
activities/13/.
Finally, in 1971, the American Architect William Wayne Caudill, (winner of the AIA Gold Medal for his
contribution to Architecture) wrote/14/,—“The day of the prima donna approach to designing
buildings has passed. The new

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way is by team”. He summarizes by adding that:—“Almost any team can produce mere shelter, but
to produce buildings which possess architecture takes a new kind of team—one sensitive
to human needs and values. The idea of architecture by team has three underlying ideas:-
1. The team is a genius,
2. The client/user is a member of the team, and
3. The team is an ever expanding unit, not limited to the design profession”, and to the above I
would like to add a fourth idea, that:-
4. Value Management as a concept can contribute to the team approach.
6 Accountability, Buildability and Creativity
6.1 Accountability
“All designs have unnecessary costs”. Value Management ensures that all possible solutions to a
design have been investigated, and that the areas containing unnecessary costs are removed. The
Function Analysis phase of a VE Study ensures an in-depth understanding of the project. No other
technique encompasses this methodology in such detail. The recommendations of a VE Study are
given to the Client and the Design team in a fully detailed, unbiased and comprehensive Report
which indicates the advantages and the disadvantages of accepting a recommendation—it is
therefore giving the Client all the facts from which to base his decision.
Architects may argue that they are “accountable” for their designs. Certainly in terms of “legal
liability” this is true. However, with respect to giving the best ‘‘value” in terms of the Client’s
requirements, this can only be a subjective opinion. Value Management offers an objective opinion; it
gives alternatives; and it sets down reasons why those alternatives have been proposed. The Client
can then be assured that all possible solutions to the problem have been investigated before he
makes a decision.
However, the accountability factor also extends beyond the design and construction of a project. To
whom is the Client “accountable”? If the Client is a private concern (i.e. self-financing the project) he
is only accountable to himself—so long as the building remains within his domain. If the Client is, for
example, a Developer, then he should be accountable for decisions which effect the future Life-cycle
costing, Energy efficiency and Maintenance of the building. Finally, if the Client is a Government
(Local or Central) Body, or a Limited Company, then the Client must be accountable to the tax-
payers, rate-payers or shareholders for all aspects of the design—present and future. The public who
see the building in passing should also be considered. Nothing else can offer this degree of
“Accountability” except Value Management/15/.
6.2 Buildability
Buildability has been defined as “the extent to which the design of a building facilitates ease of
construction, subject to the overall requirements for the

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completed building” /16/. The means to achieve this is through teamwork, coordination and
communication. The result is not only “ease of construction” for the project, but it is also a means to
achieve better quality control and at the same time, a means of avoiding adverse relationships, since
everyone is working together on the same team. McGeorge writes that “designs are not produced
just by draftsmen or engineers, but by a system of resources working together as a balanced team…
the engine which drives the design system is the brainpower of its members, and the fuel which
powers it, is information”/17/. In his writing, concerned with design productivity in relation to the
problem of quality, he concludes that “Better and earlier communication with the contractor is
needed”/18/.
It was in 1977 that Barrie and Mulch recorded that, “one of the advantages of successful
Construction Management is the absence of adversary relationship often present between the
Architect/Engineer and the General Contractor….everyone benefits when discrepancies are talked
over internally and straightened out prior to finalization of construction contracts….this same concept
can be applied to the Value Management effort….the emergence of Construction Management, and
the early involvement of the contractor in the design process has fostered the use of Value
Management’’/19/.
It is part of the job of the VE team to determine the facility with which a design can be constructed
and, should this aspect pose a problem, it is their task to investigate alternative ways of overcoming
the difficulty before construction takes place. Often, due to lack of time in the design period, the
actual ‘buildability’ of certain details are not realised until they are about to be constructed. The
Value Management approach in particular highlights the advantages of using the combined
knowledge of the design team and the contractor to create designs which are not only “fit-for-
purpose” but also practical and efficient to build.
It is sufficient to state here that, through a combination of creativity, teamwork, coordination and
intensive analysis, Value Management can contribute towards the improved buildability of a project.
6.3 Creativity
The overwhelming advantages of Group Creativity are well known. Unfortunately, the education,
training and practice of Architects and other Professionals favours singular effort rather than group
effort, and certainly avoids multi-disciplinary group effort.
Architecture is often regarded as an Art. However, the Artist / Designer, given a project to design,
commences the design with sketches which are then worked into a final drawing—after which he/she
then makes the object. In this way one becomes familiar with the material in which one is designing
—be it clay, copper, silk-screen, wood or leather. One learns, very quickly, of both the limitations of
the materials and their potential capacity. Consequently, one learns to design the object taking these
factors into consideration. At an Art College, one builds or makes in three-dimensions the designs
which one has

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created in two-dimensions. There is an awareness of what can and what cannot be Created, and
there is an element of satisfaction in carrying ones ideas through to completion. Creativity is
linked with Buildability.
The Architect produces drawings in two-dimensions, which somebody else then uses to create a
three-dimensional building. The architecture/building is produced by a multi-disciplined team. In this
respect the Architect has the frustration of not actually creating anything, but merely being the
instigator of ideas which rely on other people to complete. Hence Creativity and Buildability are
not linked. Therein lies the dilemma.
Value Management gives the opportunity of creating buildable ideas through the means of a multi-
disciplined team. Hence, the magnitude of the creative solutions which can be generated is
measured, not in arithmetic or even geometric terms, but in logarithmic terms/20/.
7 Summary
Every Saturday, hundreds of people watch sporting events, such as football. THEY all have a
Common Interest—but THEY are a CROWD. It takes hundreds of people to create a building—THEY
all have a Common Interest;—but They CANNOT be a Crowd; THEY must be TEAM.
Good COMMUNICATION and COORDINATION results in Good TEAMWORK -
Value Management creates a Common set of VALUES—by establishing the Value Criteria; through
Function Analysis, it eliminates the uncertainties, encourages conciseness, and greater depth of
thought. Function Analysis improves communications by identifying the individual’s perception of
what is wanted, and the Team then builds on this to establish a “commonality of purpose” or single
goal. And the Job Plan acts as the focal point for coordination and direction.
Good Teamwork enhances the Creative ability to solve problems.
Good Teamwork, together with enhanced Creativity and Problem solving ability results in
Better BUILDABILITY
* * * * * * * * *
Good Teamwork, Enhanced Creative Problem Solving capabilities, and Improved Buildability results in
Improved ACCOUNTABILITY.
* * * * * * * * *
Good Teamwork, Enhanced Creative Problem Solving capabilities, Better Buildability and Improved
Accountability can only result in:-
BETTER VALUE
Fig. 5 The Result of Good Teamwork

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It is evident that Value Management has much to offer both the Architect/ Designer and the
Construction Industry in this country. However, its acceptance will depend on those professionals
already involved in the design and construction of buildings. First, they need to be educated in the
entire philosophy of Value Management, so that they understand it is not a threat to either their
professional integrity or their design ability.
It is the duty of the Architect to provide “good value” in terms of design irrespective of budget. In
Value Management, aesthetics and appearance can be rated in terms of Value. The fact that Value
Management is committed to determining ‘‘good value” rather than “cost reduction”, should therefore
be an encouragement for Architects to promote its development. Seen either as a way to think about
design or as a formalized procedure that helps the Designer to do something he is always trying to
do—give the Client the best possible value—Value Management can be an essential asset. As Senator
Jennings Randolph stated/21/, “it will not solve all the problems of the construction industry”—but it
should go a long way to resolving the dilemma of the lack of communications and teamwork which
currently exists.
Value Management sandwiches together Accountability, Buildability, Creativity,
Coordination, Communication and Teamwork in a positive, constructive and organized
methodology.
It is a philosophy and attitude of mind which anyone involved in the design and
construction of buildings would find an Asset.

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8 References
/01/ Kaufman, J.J., “The Direction and Growth of Value Management—a Strategy for the 90’s”. 2nd
European Conference on Value Management, AFVNA, France 1990
/02/ Ibid.
/03/ Dell’Isola, Alphonse J., Value Engineering in the Construction Industry. New York, Van Nostrand
Reinhold Inc., 1982, p.47
/04/ NEDO., Faster Building for Commerce. National Economic Development Council, London, 1988.
/05/ Higgin, Gurth, and Jessop, Neil, Communications in the Building Industry. London, Tavistock
Publications, 1965, p.52
/06/ Ibid., p.89
/07/ NEDO., Op.cit., p.10
/08/ Ibid., p.11
/09/ Illingworth, John, “Buildability—Tomorrow’s need?” Building Technology and Management.,
1984, Feb. Vol.22 (2), p.16
/10/ Ibid.
/11/ NEDO., Op.cit, p.10
/12/ The Banwell Report, The Placing and Management of Contracts for Building and Civil
Engineering Work, HMSO. 1964
/13/ Dale, Julia E.S., “Value Management Improves Communications and Teamwork in Design and
Construction”, 3rd European Conference on Value Management, VDI Berichte Nr. 918, 1991, p.190
/14/ Caudill, William Wayne, Architecture by Team. U.S.A., Van Nostrand Reinhold Co. Inc., 1971,
p.ix
/15/ Dale, Julia E.S., Op.cit., p.188
/16/ CIRIA, Buildability: an Assessment, CIRIA Special Publication 26, 1983, p.6
/17/ McGeorge, John, K, “Design Productivity: A Quality Problem.’’ Journal of Management in
Engineering, 1988, October, Vol. 4 (4), p.354
/18/ Ibid., p.350
/19/ Barrie, Donald, S., and Mulch, Gordon,L., “Professional CM Team discovers Value Engineering.”
Journal of the Construction Division (ASCE), 1977, Sept., Vol.103 (C03), p. 431
/20/ Dale, Julia E.S., Op.cit., p.190
/21/ Macedo, Manuel C., Dobrow, Paul & O’Rourke, Joseph J., Op.cit. p.11

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Value management—its relevance to managing construction projects
M.F.Dallas, Director
Hanscomb Value Management, London, UK
Abstract
Value Management is a well established discipline and provides a method of addressing some of the
most crucial areas of managing a construction project to completion within time, to the right quality
and at the right cost. The most common grounds for failure to meet these criteria stem from a
number of well recognised sources, e.g., inadequate brief, ill considered cost cutting, surprises and
variations, poor performance and inaccurate assessment of risk. Value Management, correctly applied
at the right time and involving the right people addresses all of these issues, greatly assisting the
project team in delivering a product which is right for both the client and the end user. Value
Management does not seek to supplant traditional techniques of project control but, rather, offer
support and justification to them. To derive the full benefits of Value Management it is necessary to
follow some essential principles which include senior management support, the full enthusiastic
involvement of a carefully selected team (including client, project team and end user wherever
possible) and to follow a carefully structured method of working, normally referrred to as The Job
Plan. Value Management studies provide a rapid method of addressing strategic or operational issues
in a thorough and objective manner and provide significant benefits for all parties including the
Client, the Project Team and the End User.
Keywords: Value Management, Project Management, Construction Cost, Teamwork Value Analysis,
Value Engineering, Function Analysis, Life Cycle Costs.
1 Project Management Objectives
Project Management has been defined in numerous ways and is one of these terms that tends to be
debased by one frequent use, being applied equally to the supervisor of telephone installation gangs
or the prime mover behind the Channel Tunnel project.
I prefer the definition in which Project Management is equated to the management of change.
In recent years, due in no small way to the efforts of the

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Association of Project Manager, Project Management has become increasingly recognised as a
professional discipline in its own right and Management by Projects has evolved into an accepted
management style.
As a generalisation, the Project Manager’s task is to deliver a project within a number of, often
conflicting, parameters set out by the sponsor at the outset and, frequently, subject to change during
the evolution of the project. These parameters may usually be grouped under four main headings :
Fig. 1. The conflicting parameters of Project Management

During the evolution of the project the Project Manager will be subjected to conflicting pressures to
maximise scope and quality while minimising time and cost.
To achieve a successful conclusion the Project Manager must be able to define clearly the priorities
governing these conflicting pressures and then make decisions and exert controls to guide the
project through a successful conclusion.
In fulfilling these tasks the Project Manager requires considerable diplomatic skills and understanding
to communicate with and involve all the numerous disciplines involved in or affected by the outcome.
To assist him in the successful management of a complex project a number of powerful tools have
been developed and refined over the years. This paper addresses what is possibly one of the less
well understood but, nevertheless, much talked about tools in this armoury, Value Management.
2 Reasons for project failure
In order to consider fully how Value Management may assist the Project Manager it is necessary to
dwell for a moment on some of the key reasons for project failure. These may, of course, be
numerous and complex but the following, either on their own or in combination, probably account for
most problems.
Poor A poorly defined brief is a certain recipe for disaster. Not only is the client unlikely to get
conceptwhat he wants at the ends of the day but the design and construction team are likely to
or brief spend much abortive time and resources in developing solutions which must

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later be rejected (either because they are found wanting or because, more than likely,
the brief changes). Misunderstandings will be rife and delays and over runs on costs
almost inevitable.
Cost Cutting Often estimates of project costs increase as design development proceeds to the point
where they exceed the budget. Cuts, reducing the quality or scope of the project are
simple to impose, however, since the deliverables have been reduced from what was
originally envisaged, many of these items will now creep back in. Late introduction or re-
introductions of an item usually cost more than if they had been included from the
outset, leading to a double penalty and final cost overruns.
Surprises These may stem from may causes, some more foreseeable than others. Some may be
and late due to incomplete information at the outset, or may arise due to inadequate
changes understanding or communications between different contributors to the project. In any
event they will result in disruptions to progress causing both cost and programme
overruns.
Poor Poor performance by key contributors affects not just the area of responsibility of the
Performance poor performer but will often have significant knock on effects to others. The results can
be very costly in terms of quality, progress and cost. Poor performance may arise for
many reasons but inadequate time and budget, coupled with poor selection and briefing
procedures, may be contributory causes.
Over Design Over design can result from allowing for excessive risk due to misunderstandings or lack
of clear instructions as to clients’ requirements. The result is over expenditure (both of
money and resources) in one area, often resulting in cut backs in other, lower risk,
areas.
Value Management, correctly applied at the right stages of the project, can address all
these points, greatly assisting the development and management of the project to the benefit of all
contributors and, not least, the client and user.
3 Value Management

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3.1 Definition and origins
Like Project Management, Value Management has been the subject of many definitions, however the
essence of the discipline is summed up in the following paragraph.
Value Management is a creative, organised, intensive teams effort directed towards the analysis
of functions and focuses on the elimination or modifications of anything that adds cost to an
item without contributing to its function. Put simply Value Management addresses the
elimination of waste.
Credit for the evolution of Value Management is generally given to Larry Miles, working for the
General Electric Company in the U.S.A. in 1947. Larry Miles was charged with maintaining production
of components in the face of severe shortages of traditional materials and evolved a technique of
analysing the functions performed of a component and then seeking alternative ways of fulfilling
those functions. The technique was so successful that frequently components and/or productivity
were not merely maintained but improved.
Over the years the techniques have been refined and usage widened to include almost all areas of
industry business and commerce.
Terminology includes Value Analysis, Value Engineering, Zero Option Analysis and other expressions.
All, however are based of the same fundamental techniques. Commonly Value Analysis is the term
used for the application of the techniques to improve an existing product, process or organisation.
Value Engineering, on the other hand, is applied to the use of the techniques to improve the design
and development of a project which has not yet been implemented. Value Engineering is thus the
more commonly used term when applied to a construction project.
The above terminology is however not universally used, particularly overseas. I therefore prefer the
term Value Management which embrace all the above. This is consistent with the Value Analysis
Glossary, recently published by The European Community Programme for Innovation and Technology
Transfer (SPRINT).
Fig 2. Problem Solving Techniques

3.2 Function based problem solving technique
Value Management is essentially a powerful problem solving technique which differs from classical
techniques in that it is based on the analysis of function. It asks the question “what does it do?”
rather

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than “what is it?” before seeking alternatives.
This functional rather than elemental approach offers a new dimension of freedom to the enquirer
often resulting in an entirely new approach to a problem rather than simply a modification to the
original product.
3.3 Structured Team Activity
Value Management is not, as so often suggested, merely a brainstorming session for generating
alternative ideas. Certainly creative techniques such as brainstorming play a vital part in the
technique, but Value Management is much, much more than this.
Along with the function base, the concept of a close knit and carefully chosen team working to a well
defined and carefully structured job plan lie at the heart of Value Management. Without this structure
the full benefits of the technique are unlikely to be realised.
4.0 The role of Value Management in Project Control
There are numerous very effective means of controlling projects. I outline below merely some of the
more frequently used, to demonstrate that Value Management does not seek to supplant
these but offers support.
4.1 Arriving at the brief
The traditional means of arriving at the project brief is generally an iterative process of meetings
between the key contributors during which an initial outline of requirements is honed into an
acceptable form. All too often key contributors, eg the builder or end user, are not party to this
process and their views may therefore only be represented through a third party.
At the same time the brief often sets out what the client thinks he wants which may, in fact, not
present the true needs of his business.
The structured Value Management approach provides a technique for validating and
defining the project objectives with the minimum use of time and resources including all
key contributions.
Similarly, The use of Value Management leads to a better understanding of the project objectives by
all team members and helps to ensure all elements are considered from the outset, thereby
minimising surprises and variations and improving design solutions.
4.2 Achieving Quality
The standards of required quality are generally defined in a specification developed by the design
teams in response to the brief. Attainment of the desired level of quality in the final product is
ensured by an appropriate system of inspections supported where necessary by tests and or
certification.
Frequently difficulties may arise because the standards of quality demanded are unrealistically high
(or low) and unattainable within the budget or do not represent what the client expects or needs.
Value Management offers a means of establishing the right level of

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quality consistent with the budget and the clients expectations at the outset of the
project. Better team understanding assists the development ofetter solution, simplifying over
complicated designs and reducing the scope for error.
4.3 Programme Control
There are numerous software packages available today which, given the right input, assist the Project
Manager in controlling progress (they do not, in themselves, control the project 1). A Project
Manager will use one of these packages to help him monitor and predict the achievement of certain
milestones and deliverables throughout the duration of a project. Ability to predict problem areas
enables him to take appropriate remedial action.
Value Management assists Programme control in a number of ways.
The involvement of all contributors in the early stages of a project, avoids unrealistic or over
generous targets being set. The identification of Value Management workshops at strategic
Milestones within the programme assists in the definition and quality of the information which needs
to be available at those milestones.
Improvements of understanding and quality reduces the incidence of variations and delays which can
have such a disastrous effect on progress.
4.4 Cost Control
The setting of an initial budget may result from a number of processes Once set, however, it is the
project manager’s primary tasks to ensure the budget is not exceeded.
Various established means of cost control exist, including carefully prepared contract documentation
and tender procedures, regular cost reporting systems and the more sophisticated computer based
Cost/Schedule Control Systems Criteria in which Actual Cost of Work Scheduled (ACWP) is measured
against Budgeted Cost of Work Scheduled (BCWS) and Budgeted Cost of Work Performed (BCWP).
Powerful as may of these control techniques are, none of them addresses the
fundamental question of whether the right budget was set in the first place.
Nothing is easier than to bring in a project within budget if the budget was overgenerous at the
outset.
Too low a budget on the other hand can give rise to insuperable difficulties and a strong temptation
to cut scope and quality.
The use of Value Management techniques enables the project team to ensure that the
right budget is set for the client’s needs. It also ensures that project achieves the designed
balance in short and long term costs.
5.0 The Essential Principles of Value Management
If Value Management is such an established technique and can achieve so much for project control,
how is it that it is not more commonly used? The answer is, of course, that parts of The Value
Management philosophy are widely used even if they are not called

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Value Management.
To derive the full benefits of Value Management, however, it is necessary to employ all the stages in
a carefully structured sequence, although, depending on the type of study and the nature of the
project being studied, the emphasis on the various points of the technique will vary.
In the following paragraphs I outline the essential principles which must be followed for:
5.1 Senior Management Commitment
Full and enthusiastic support of Senior Management, from Board level downwards is essential if Value
Management is to become part of corporate philosophy and be successful in its application.
5.2 Clear Objectives
Before any Study, at a strategic or operation level, can be undertaken, a clear statement of the
objectives of the study needs to be agreed and information pertinent to those objectives gathered
together. The information should be complete and consistent since any results can only be as good
as the information upon which they are based.
5.3 Team Involvement
Careful selection and involvement of the right team is vital for the success of any study. The choice is
important for four key reasons:
– Involvement of all parties who have significant influence on costs or are affected by them
facilitates a balanced approach and, since this includes the client, gives authority and credability to
the results.
– Willing involvement of key members of the incumbent project team (those who have to carry the
project through to completion) is vital if ownership of the study results is to rest with those who
are charged with implementing its proposals.
– The process of value management is a powerful factor in building team relationships and imparting
better understanding of the project objectives. It is important that these benefits are carried
through to the project team.
– Sensitive introduction of external consultants to the Value Management Study Team can enhance
the objectivity of The Study and improve results. It is important, however, that the project team
do not see the Study as an audit of their performance (which it is not).

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Fig. 3. Team Involvement

5.4 Structured Job Plan
The Job Plan is a well defined sequence of activities in carrying out a full Value Management Study
which may be undertaken in three stages, Pre-Workshop, Intensive Workshop and Post-Workshop.
To ensure that best use is made of the resources available a specialist experienced Value
Management team leader or facilitator is selected, who acts as chairman to the study team and
conducts their efforts to best effect—ideas for improvements come from the Value Management team
not the Facilitator.
Fig. 4. The Value Management Job Plan

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Phase 1, the information phase, undertaken mostly pre-workshop, involves defining the
objectives of the study, agreeing a suitable timetable, selecting the study team members, identifying
and assembling the appropriate information, analysing and distributing the information to study team
members.
This information phase is completed at the beginning of the intensive workshop (see below) when
the study team, in group session, undertake a detailed function analysis of the project components
and attribute estimated costs to these functions (Function Cost Analysis). This analysis provides a
powerful overview of project cost distribution and assists senior management to assess whether
money is being spent in the right places.
Not until all this preparatory work has been completed can the study team be in a position to
understand the full nature of the problem they are trying to address or select those parts of the
projects which are most likely to benefit from the study. Unless the problem has been properly
identified it will not be possible to arrive at these best solution!
Phase 2, the Creative Phase, involves the generation of alternatives to fulfil the functions
identified above. There are many creative techniques available, of which the most commonly used is
brainstorming. Here, the team, still in the workshop environment, generate random ideas, without
evaluation, answering the question “what else will do the job?’’
All members of the team are encouraged to participate, regardless of relevance of their discipline to
the problem at hand—very often some of the best ideas can come from those with least experience
(and therefore the least inhibitions!).
A typical creative brainstorming session may generate over a hundred ideas, and in a complete
workshop—involving several sessions—500 to 1000 ideas may be generated.
All ideas, regardless of merit, are recorded and displayed visually to the study team.
Phase 3, Evaluation: Many of the ideas generated above will have less merit than the original
design and may well be downright crazy. In this phase the Team must evaluate the relative merits of
each idea with a view to selecting the best ideas for further development. Ideas are evaluated
against criteria which reflect the study objectives.
Phase 4, Development: Once a shortlist of the best ideas has been selected the team, still in
workshop session, will develop each proposal in sufficient detail to enable the project team to decide
whether or not to implement it or carry it forward for further analysis.

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Phase 5, Presentation of Results: The study results are pulled together (usually by the Value
Management Facilitator) into a detailed written report for presentation to the study sponsor and key
project team members who may not have been present during the workshop itself. The purpose of
the report is twofold—to provide a written record of the Study and to assist the decision makers
within the project team in the implementation of its results.
Sometimes it may fulfil a third very valuable function in supporting an application for funds by
demonstrating that the project represents value for money.
Finally, in Phase 6 of the Job Plan, the Project Team will implement those proposals that, after
validation, are selected for inclusion in the final project. In common with all other activities it is
important that the implementation of proposals is properly organised and managed.
5.6 Total Ownership Costs
Fig. 5. Total Ownership Costs

An important feature of any Value Management Study is that all issues which may affect total
ownership costs are addressed. These include not only initial capital costs and longer term
maintenance and running costs, but also more strategic issues such as tax and marketing
considerations etc. The relative weighting of such considerations will depend upon the project and
study objectives.

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5.7 Strategic and Operational Issues
As a project progresses, so the costs of implementing changes increases and the capacity for change
decreases. It stands to reason, therefore, that the earlier a Value Management Study is carried out
the greater is the opportunity for influencing the outturn costs
Fig. 6. Timing of a Value Management Study

Studies condusted at concept stage are generally of a strategic nature (eg clarification of the design
brief), concentrating on the fundamentals behind a project. Information may not be very detailed or
specific and the study duration fairly short (1–2 day workshops being common).
A study conducted at the end of scheme design (RIBA Stage D) will concentrate on more operational
issues and will be based on much more comprehensive information. Due to the amount of detail to
be studies, the workshop at this stage may well be longer, say 3–5 days duration.
6.0 The Results
The objectives of a Value Management Study may vary. A speculative developer may be looking to
maximise the gross:nett ratio; an owner

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occupier will be seeking to optimise total ownership costs and create the best environment for
conducting his business. In a corporate headquarters quality and aesthetics may be of prime
importance in projecting the company’s image to the outside world. Some improvements in value
may require an increase in cost. It is, therefore, not always easy to quantify the imporvements
resulting from a Value Management Study.
Our practice is to reduce all cost implications to Present Worth values for comparison purposes and
typical savings measured in this way are frequently in the order of 10–20% of the total project cost.
Typically, the total cost of conducting a Value Management Study may be recouped 50–100 times.
7.0 Summary
By focussing on alternative ways of achieving function, Value Management succeeds in eliminating or
modifying only those elements which make no positive contribution and are therefore wasteful or
unnecessary. All the desired attributes are retained and very often enhanced and there is no
pressure to reintroduce those elements which may have been eliminated by thoroughly examining all
aspects of a project at the outset and involving all those who will contribute significantly to it or be
affected by it (ie the end user) a better product is likely to result, accurately reflecting the Client’s
needs, balanced to suit the conflicting requirements of sponsor client and end user and incorporating
features to simplify procurement and implementation.
That same involvement of all key contributors helps build good team relationships and better
understanding all round, leading to better solutions, fewer variations and less waste.
Proper consideration of costs on a functional basis highlights anomolies and provides the basis for
identifying and justifying the right budget for the job.
The structured Job Plan ensures that all significant aspects are reviewed in an objective and
balanced manner at the right stage of the project, within the minimum time and with the use of
minimum resources, generally producing improvements in value which outweigh study costs many
tens of times.
The ability to demonstrate that the project represents good value for money provides powerful
support to applications for funding.
In short, Value Management should not be seen as an audit but as a means by which a project can
be improved to the benefit of all, Sponsor Client, Project and Design Team, Builder and End User.

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Modern value engineering for design and construction
H.Ellegant
Howard Ellegant Associates, Evanston, Illinois, USA
Abstract
This paper explains the essential elements of Modern Value Engineering and how they help clients
with site selection, establish project criteria at the briefing stage, and reduce costs during project
concept and detailed design. Recent studies are presented and the key Modern Value Engineering
techniques used in each explained.
Keywords: Value Engineering, Value Analysis, Value Management, Function Analysis, Total Quality
Management, Cost Control.
1 Introduction
Two years after hanging out my Value Engineering consultant’s shingle, I was still struggling with
what Value Engineering really is. I attended a wedding on my wife’s side of the family, sitting next to
a woman, a distant cousin by marriage. Our conversation turned to vocation after location. I
explained that I worked with groups of people involved with building projects to help them identify
and solve their problems, usually related to excess costs. To which cousin replied: “Oh, you’re a
therapist.”
A therapist for buildings. More precisely for the group or team that designs and constructs them. An
interesting concept. I liked it, because in a sense that is what Value Engineering is about.
Like therapy, Value Engineering is met with varying degrees of acceptance depending upon the
experience of the participant during the process as well as the results achieved.
1.1 Modern Value Engineering and Total Project Management
“Modern” in the title of this paper suggests there is an “Old” Value Engineering. And there is. The old
Value Engineering deals with symptoms. Modern Value Engineering digs deeper, like therapy, to
identify the real problem and even further to find its root cause. In therapy, correcting the real
problem requires understanding and commitment. Modern Value Engineering is the same, requiring
understanding of the process and a commitment to use it. For many in the design and construction
business, Value Engineering simply means suggesting a series of alternative materials and systems.
For others, a Value Engineering study conjures up the image of a group of

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people drastically slashing costs from a design without regard to architectural objectives or client
requirements. Value Engineering has too often been used as the tool of last resort when a project
estimate (or tender!) exceeds budget.
But that is the “old” Value Engineering which concentrates on reducing costs of systems and
materials. Modern Value Engineering helps manage total project cost, quality and performance by
expanding the focus of the VE team to include all aspects of project design, construction and
ownership through an emphasis on the way the project will be utilized rather than on how it will be
built. Modern Value Engineering is a proactive tool to help architects, engineers and their clients
identify and correct project performance/cost/quality imbalances from project inception through
design.
First and foremost, Modern Value Engineering repairs communication breakdowns—the primary cause
of excessive costs and unfulfilled project requirements. If used early enough, Value Engineering
prevents the breakdown. The leader of a Value Engineering study is responsible for facilitating the
free flow of open communication between study team members.
So Value Engineering is therapy for the building project and the Value Engineering study team leader
a facilitator for the people who are involved in defining and carrying out the project. Value
Engineering’s power is its ability to clear away the surface debris, help people dig down to find the
real problems needing attention and then proceed to devise ways to solve them.
1.2 Function Analysis: VE’s Key Technique
The tool Modern Value Engineering uses to dig with is complete Function Analysis. Using it, project
stake holders break down the design into functional performance elements. Costs and benefits are
assigned to each element. The value of each functional performance element is measured by
comparing its costs and benefits. Appropriate changes are made to balance project performance and
cost.
2 Value Engineering Before Project Design Starts
2.1 Function Analysis Changes the Project’s Site
The CEO of a health care management firm asked us to facilitate a top management discussion about
which of three existing suburban buildings to relocate to. We asked the CEO and her top executives
to define why they wanted to move the company. To ‘‘Improve Operations,” was the consensus.
Next we had the team spell out how the new location was expected to help “Improve Operations.”
We gave the team an exercise to build a diagram on which they had to separate their criteria
between performance requirements (functions in VE language) really NEEDED to Improve Operations
and others WANTED to make everything work even better. The team also had to relate the
requirements to each other using a How?-Why? logic. (Figure 1.)

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Figure 1. Function diagramming ground rules.

About one-half an hour into the exercise, the “Aha!” happened. The Human Resources Director
suddenly exclaimed that the company did not have to move just to “Improve Operations.” Operations
could be improved at the current location just by rearranging offices, staff, and equipment. They
were losing business when potential clients paid them a visit as part of proposal evaluation. The
current location did not mirror their excellent capabilities, reputation and track record. Conclusion: a
new site was required to “Increase Sales.” The team agreed. The CEO was delighted.
With this changed focus for their work, the team completed the function diagram in Figure 2. and
specified exactly how they expected the new location could help the company “Increase Sales.”
Figure 2. Function Logic Diagram of Corporate Move

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The team compared and then ranked the importance of their primary performance requirements
(functions) relative to one another. Using an evaluation matrix, they reviewed how well each site
fulfilled each requirement and concluded that none of the sites were appropriate! The team decided
to search for other buildings that could present a more positive corporate image of their company’s
professionalism and capabilities. A bad decision, based on a wrong assumption about why the
company was moving, was avoided.
2.2 Generating Design Criteria Based on the Function Analysis
A secondary benefit of the exercise was development of guidelines to help the architect design each
space and activity area of the new offices. The team created another matrix (a portion is shown in
Figure 3.) They indicated which performance requirements (functions) should be fulfilled by the
design for each major space or activity area, thus creating design criteria for the architect, who
participated in the session, and quickly gained valuable insight into his client’s project requirements
and expectations.
After site selection, the team and the architect determine acceptable typologies of design solutions
that fulfill the criteria for each space and activity area and their approximate costs. This establishes
design and cost targets for the architect to work toward.
Figure 3. Functions Allocated to Activities and Spaces to Create Design Criteria

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3 “All Cost is for Function:’’ What Our Decisions Really Cost
The fundamental, underlying principle upon which Value Engineering’s creator, Larry Miles, founded
his discipline is that “All cost is for function.” It recognizes that consciously or otherwise we spend
our resources (time, money, etc.) to achieve our performance objectives (functions.) Identifying
project functions helps stake holders understand client required performance. Determining what
those functions actually cost is the first step in the process of helping the client decide if they are
getting their money’s worth.
During a Value Engineering review of a new Federal courthouse, the owner-user-architect team
found the estimated cost of dry wall partitions was $238,000. Just over $100,000 of that cost was for
high sound attenuation walls enclosing the jury assembly rooms and offices for Social Security,
probation officers, the U.S. Congressman, marshals and judges.
3.1 Clarifying the Client’s Requirements
Before reviewing project costs, the team constructed the function diagram shown below in Figure 4.
Figure 4. Function Diagram for a New Federal Courthouse and Offices

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Using their function diagram, the team identified “Control Circulation,” “Separate Access,” ‘‘Control
Access,” and “Eliminate Noise” as performance requirements (functions) of the partitions. The sound
attenuation capability of a wall directly relates only to “Eliminate Noise,” a required function NEEDED
to “Protect Judicial Process.” By comparison, “Reduce Noise,” is WANTED to “Satisfy User.”
3.2 Compare the Design, Alternatives and Their Costs
There is a qualitative and quantitative difference between designing for the functions of Eliminate
Noise and Reduce Noise. The quantitative difference, as shown in Table 1 following, ranges between
$35.50 and $77.50 per linear foot of partition depending upon the qualitative level of sound
attenuation specified.
Table 1. Comparison of Sound Attenuation Partition Construction, Costs and Function
RATING/ CONSTRUCTION FUNCTION & PERFORMANCE LEVEL PRICE PER
LINEAR FOOT
FSTC 37 REDUCE NOISE $35.50
1 layer GWB each side Normal conversation audible; loud speech
intelligible
1 layer GWB each side; insulated Normal conversation barely audible; loud speech
audible but not intelligible
2 layers GWB each side; insulated Normal conversation inaudible; loud speech
muffled
FSTC 52 ELIMINATE NOISE $77.50
Double stud wall; 2 layers GWB Normal conversation inaudible; loud speech
each side; insulated barely audible
3.3 Select Systems Appropriate to Required Performance
Based on a discussion of attenuation required to “Protect Judicial Process,” as well as where that
protection was needed, the team agreed to revise the qualitative requirements for the partitions at
the Jury Assembly Rooms, judges, marshall, U.S. Attorney, and congressman’s offices from ones
which permitted loud and normal conversation to be inaudible to a system which muffled loud
speech, and kept only

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normal conversation inaudible. Design criteria for partitions around the other spaces was also
changed to allow loud speech to be heard but not be intelligible, and normal conversation to be
barely audible, but not understood.
Estimated savings from matching appropriate systems with actual required performance levels of
functions was just over $21,600, or nine percent of drywall partition direct costs.
In three days, the team followed four steps to balance total project performance and cost, saving an
estimated $500,000, or 10 percent of estimated construction costs.
Step one, the client defined their performance requirements (functions) and the team diagramed
them.
Step two, the team reviewed materials and systems and identified which functions and what
performance level each was supposed to achieve and why.
Step three, the architect and engineers identified alternative materials or systems, and the costs of
each, to perform the required functions.
Step four, the client selected the systems appropriate to actual levels of required functional
performance.
4 Putting it Together: Functions, Function Costs and Function Acceeptance Helps the
Owner/User Decide What They Really Need!
Before starting the Value Engineering study of a project in or at preliminary design, we conduct a
round table session with project owners, architect and principal users, most of whom will not be VE
study team members. We call the session an Owner/User Attitude Survey. During the session, we ask
participants two open ended questions: What is important to them about this project (what should
be there?), and what problems they want to avoid. We then ask them to rate relative to one another
first the important features and then the problems to avoid.
The results are given to the VE study team after they have completed the Function Diagram and
allocated construction costs to the functions. The team reviews each statement and indicates on the
Function Diagram to which function(s) they agree the statement refers.
When this exercise is complete, the VE team has a total picture of project functions, function costs
and function acceptance. Figure 7 is a photo of the architect project manager and the County
Sheriff’s jail commander in front of the completed function diagram for the new 752 bed, $30 million
Ventura County California jail.
The Old Value Engineering selected targets for improvement by focusing on high cost project
elements. Modern Value Engineering looks for value mismatches—where project functions, function
costs and function acceptance are out of balance.
These may be high cost functions with little client acceptance, (so why are we spending the money
to do them?) or they may be low cost functions important to the client but performed poorly (could
we invest more money to improve performance?) The team may suggest ideas to improve systems,
materials or even change the project baseline requirements.

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Figure 7. Seated in Front of the Completed Function Analysis Diagram, The Architect Project Manager
(left) Discusses the Ventura California County Jail Project With Its Commander
In the Ventura County Jail study, the team defined the overall purpose of the project as “Manage
Sentenced Inmates.” They further identified “Receive, Classify, Release and Confine Inmates” as
functions required to achieve that purpose.
Allocating materials and systems costs to specific functions on the diagram, the team identified
$3,142,000, or 10.5% of the estimated construction costs as the function cost to “Receive, Classify
and Release Inmates.” As the team reviewed the project, additional critical facts emerged. A
significant amount of floor area was consumed by an inmate property storage room, designed to
support the requirements of “Receive and Classify Inmates.” This space, associated circulation and
other areas were being considered for redesign to resolve space and budget problems. Because of a
promise made to the local community, all release and new inmate intake will be done at the existing
main jail, several miles away.
Armed with all the information, the jail commander reexamined the decision to include inmate
property storage in the new jail, and suggested deleting it. Property of inmates confined in the new
facility could be stored at the main jail.
Within two days of the meeting at which the discussion occurred, the construction manager toured
the existing jail with a vendor of property storage equipment. The vendor made a layout and
estimated

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costs for redoing the existing jail’s property storage area to accommodate the additional
requirements.
Estimated first cost savings of $500,000 were reported at the next team meeting. Life cycle cost
savings from eliminating the property storage center staff position and avoiding property storage
equipment maintenance are another $1.3 million. The architect was given direction to eliminate the
property storage area from the new facility. Having the right people around the table speeded up the
analytical and decision making process, helping to create a new jail which will conform to users and
the publics requirements.
5 Conclusion
Modern Value Engineering methodology rigorously applied under the direction of a VE experienced
facilitator helps overcome individual team member prejudices. The facilitator, like the therapist,
makes sure the hard questions are asked and answered. The result is that the study team improves
total project value by balancing performance and costs, and does not just reduce costs
inappropriately.
Modern Value Engineering requires having the right people around the table. In each of the
preceding examples, team members had specific project knowledge necessary to make decisions.
Collectively the team had the responsibility, resources and authority to implement their ideas
whether or not they had final approval of them. Each was a stakeholder in the outcome. A
cooperative spirit was built by working together through the Value Engineering process.
Modern Value Engineering is a formidable project management tool from project inception through
design. It helps clients articulate their requirements, creates total project understanding for the entire
project team and insures cost effective decisions are made in harmony with the client’s needs and
desires.

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Value engineering during design: new directions in research
S.D.Green
Department of Construction Management & Engineering, University of Reading, UK
Abstract
It is argued that the current practice of value engineering lacks a rigorous theoretical base. The
essential characteristics of value engineering are identified and found to be in common with those
which distinguish decision conferences. The connection between value engineering and design
optimisation is also established. Decision theory is drawn upon in order to classify design optimisation
models as either normative or prescriptive. Furthermore, it is suggested that the value engineering
approach depends upon a decision model which is requisite in nature. Requisite models are
distinguished from other forms of decision model in that they are produced by a process of group
consensus in order to establish a common perception of the nature of the decision and the likely
consequences of alternative courses of action. The necessary complexity of the model is dependent
upon the requirements of the situation. The model would be continually revised until the point when
no further insights are generated. Attempts to identify optimal design solutions are seen to be
invalid, the purpose of requisite decision models is to establish a ‘shared social reality’.
Existing approaches to value engineering are deemed to be successful in that they are requisite for
the purposes of the workshop participants, i.e. they ensure that the decision-making process is
explicit and, to some extent, rational. However, the increasingly sophisticated requirements of
construction clients mean that more rigorous methods are urgently required. Several suggestions are
made regarding possible topics for future research.
Keywords: Value Engineering, Building Economics, Design Optimisation, Decision Making.
1 Introduction
The origins of this paper lie in a research project which attempted to record the best of current value
engineering practice. During the course of this research it became apparent that the theoretical basis
of many of the approaches

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used in practice is alarmingly shallow. However, this did not seem to prevent value engineering
studies achieving success. The emphasis of the research project was therefore changed and this
paper represents the preliminary results.
The starting precept is that the majority of publications describing value engineering are theoretically
naive. The primary objective of this paper is therefore to identify an alternative theoretical framework
for value engineering. The secondary objective is to outline a research agenda which will establish
value engineering as a bona fide field of study.
The scope of the paper is limited to the application of value engineering during the design of building
developments. Furthermore, the discussion will be limited to the situation where the value
engineering team leader acts with the existing design team in the role of facilitator. Whilst it is
acknowledged that benefits can sometimes result from the use of a ‘second design team’, it is
considered more important to concentrate research activity on improving design decisions in the first
instance.
Initially, the essential characteristics which distinguish value engineering will be described. Secondly,
it will be argued that the focus on ‘function’ is often a case of semantics rather than a distinguishing
feature. It will then be suggested that value engineering is a form of decision conference.
The objectives of value engineering will be described in order to establish its relationship with the
wider discipline of design optimisation. A number of different approaches to design optimisation will
then be compared to the theory of decision-making. This comparison will lead to a reinterpretation of
value engineering and to the identification of a valid theoretical base. Finally, several suggestions will
be made regarding possible future research topics.
2 The Characteristics of Value Engineering
Value engineering is essentially a structured method of decision making. Whilst different sources
(Dell’Isola, 1982; Macedo et al, 1978; Zimmerman and Hart, 1982) describe the stages of the value
engineering job plan slightly differently, the essential procedural sequence is invariably the same.
Firstly, the nature of the problem is analysed. Secondly, alternative solutions are generated and
thirdly, the best solution is selected. It should be recognised that this staged approach is common to
several methods of creative problem-solving and is by no means unique to value engineering
(VanGrundy, 1988).
The conventional view of value engineering is that it provides a ‘second look’ at design decisions
which have already been taken, however this interpretation is by no

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means universal. It is currently common practice within the UK for the value engineering team leader
to play a facilitating role alongside the existing design team (Green, 1991). Whilst it remains
customary for a study to be initiated in response to a projected cost overspend, it is also increasingly
common for value engineering workshops to be built into the design programme in advance. Perhaps
the key characteristic of value engineering is the group nature of the exercise. It is also distinguished
by the way in which the group members are isolated from their normal activities for the duration of
the study. Value engineering studies invariably involve the active participation of client and user
representatives. This involvement often serves to satisfy the client’s requirement that the decision-
making process is both explicit and rational.
If the above features are accepted as being representative then it is possible to classify a value
engineering study as a decision conference, an approach which is well described in the literature
of decision theory. For example, Watson and Buede (1987) characterise a decision conference as:
‘…the use of a structured process for dialogue and debate amongst the decision-maker and his
experts during an intense, short-term conference. These conferences are best when held away from
the workplace of the decision-maker since total involvement is critical. The objective of a decision
conference is to focus attention on the problem in hand, to identify and evaluate a set of meaningful
and practical options, and to synthesise a group consensus in favour of a single option.’
The only aspect of value engineering which is missing from the above description is the use of
functional analysis. It is therefore meaningful to question the extent to which functional analysis is
distinct from other methods of ‘understanding the problem’.
3 Functional Analysis
It is commonly accepted that the concept of functional analysis is central to the discipline of value
engineering. Indeed, almost every published definition is built around the word ‘function’.
Nevertheless, attempts to implement functional analysis in practice are often confused. This is
particularly true during the earlier stages of the building design process.
Dell’Isola (1982) has defined function as the ‘specific purpose or intended use for an item or design’.
However, as Parker (1985) has pointed out, the interpretation of function is often dependent upon
who is being served. This point has been well illustrated by Palmer (1990), who describes how a
prison door was designed to keep people in, whilst a value

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engineering study revealed that the ‘real function’ was to keep other inmates out. It is therefore clear
that function is dependent upon perception and cannot be considered to be an intrinsic quality of a
design solution.
Given the dependence of function upon perception, it is perhaps misleading to talk of functional
‘analysis’ as if it were a totally objective process. It may well be more meaningful to refer to the
required functions of a design solution. Whilst there is a danger of engaging in semantics, ‘required
functions’ are clearly dependent upon, or even synonymous with, the design objectives.
It is also enlightening to compare the ‘how-why’ logic of FAST diagramming (Dell’Isola, 1982; Fowler,
1990) to the ‘means-ends’ analysis of objectives as described by Cooke and Slack (1984). The two
approaches are essentially the same, the only real distinction is the use of different terminology.
Once the interdependency between functions and objectives has been established then it becomes
difficult to argue that functional analysis is a unique characteristic of value engineering. There would
therefore appear to be no reason why value engineering should not be classified as a form of
decision conference.
4 Objectives of Value Engineering
Value engineering studies are commissioned for a variety of reasons. Early writers tended to
emphasise the benefits in terms of improving productivity (Dunstone, 1973) or, more frequently,
reducing costs (Mudge, 1971, O’Brien, 1976). Inherent in these early approaches was the assumption
that all the alternative design solutions provide the same level of performance (Szoke, 1974). This
assumption certainly applies to the case when value engineering is used to correct a cost overspend
by investigating alternative component solutions. Indeed, it has been suggested that in this situation
value engineering is little different to the traditional cost checking role performed by the quantity
surveyor (Kelly and Male, 1990).
If value engineering is to be applied to the higher-level decisions taken during concept design then
the assumption of ‘equal performance’ is rarely relevant. In these circumstances the design problem
is open-ended in nature and the scope of the study is consequently much wider. It is clear that the
assessment of competing designs will not be made on the basis of cost alone, other intangible
criteria will also be taken into account. Whilst it is all too easy to claim that the objective of value
engineering is to maximise value, major difficulties exist not only in the measurement of value, but
also in its very definition.
The concept of maximising the value of building designs is not unique to value engineering, it has
long been central to

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the wider discipline of building economics. A review of the relevant literature indicates that the notion
of value maximisation has become almost synonymous with that of design optimisation. Szoke (1987)
has argued that the prospects for using value engineering during building design are dependent upon
progress being made in solving the general problems of design optimisation.
5 Design Optimisation
The impetus for the development of design optimisation was originally provided by the techniques of
operational research. However, the difficulty with applying techniques such as linear programming is
that they depend upon the existence of a single function which can be optimised. Wilson (1987) has
suggested that ‘the only true objective for design optimisation is value’. If this objective is to be
achieved then it is necessary to establish an objective function which represents the design’s value.
Building economists have often been tempted by the concept of utility theory, which is based on the
use of numerical measures to represent the value of alternative courses of action. Warszawski (1980)
has suggested the construction of a utility function for a building design which could, in theory, be
maximised. However, there are a number of obvious difficulties with this approach. Firstly, it has to
be established whose utility is being maximised. Secondly, it is necessary to adopt a rigorous
method of measuring utility on an interval scale. Thirdly, the approach is dependent upon the
assumption that the individual’s utility function remains consistent over time.
The notion of utility maximisation has been heavily criticised, not only from the point of view of
practicality, but also in terms of whether an optimal design actually exists. Many authors have
followed Simon (1981) in arguing that an optimising approach is invalid due to the complexities of
the building design process.
Design optimisation has also been used to describe the process of generating a limited number of
alternatives and then trying to choose the solution which is ‘best’. This interpretation clearly has
more in common with value engineering than it does with the traditional techniques of operational
research. Newton (1990) has classified this less ambitious approach as ‘informal design optimisation’,
in contrast to ‘formal design optimisation’ which endeavours to identify every possible design
solution.
Attempts at informal design optimisation have tended to centre upon the use of weighted evaluation
methods (also known as weighted preference methods). These methods are well described within the
building economics literature and are widely recommended for use in the context of value
engineering. (Dell’Isola, 1982; Morton, 1987; Kelly and

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Poynter-Brown, 1990).
The basic approach to weighted evaluation has three stages; firstly, it is necessary to identify the
criteria against which the success of design alternatives are to be assessed. Secondly, the allocation
of ‘weightings’ is necessary in order to account for the different levels of importance of the
established criteria. Finally, each design option is rated against each criterion, the resultant score is
then multiplied by the importance weighting in order to produce a weighted score for each attribute.
A simple average is then calculated in order to produce a ‘utility rating’ for each design solution.
It is apparent that many of the difficulties associated with the utility maximisation model described
above also apply to the use of weighted preference methods. However, the theoretical limitations of
these methods are rarely discussed and, as Johnson (1990) has pointed out, the underlying
assumptions are seldom validated.
It should be recognised that the brief review offered above is not totally representative of the
considerable literature which relates to the concept of design optimisation. Nevertheless, it has
served the purpose of providing a wider context within which to understand value engineering. The
debate regarding the validity of design optimisation has been dominated by a number of controversial
issues. Many of these issues can be clarified by reference to the classification of decision models
which has recently emerged within the theory of decision-making.
6 Alternative Models of Decision Making
Current thinking within decision theory has identified the following four categories of decision model:
descriptive; normative; prescriptive and requisite. An understanding of the nature of these different
models is of considerable benefit in identifying theoretical frameworks for both design optimisation
and value engineering.
Descriptive models are used in order to describe and understand how decision-makers function in
practice. Descriptive models of the design process are therefore used to represent how clients and
designers make decisions in real situations. The contribution of Mackinder and Marvin (1982) is
essentially descriptive and forms a stark contrast with the maximising models of formal design
optimisation.
The concept of optimising a design by utility maximisation is founded on the neoclassical assumptions
of perfect information, infinite sensitivity and maximising behaviour. Decision models which are based
on these assumptions can be classified as normative; i.e. they are concerned with the way in which
idealised, rational, super-intelligent people should act (Bell et al, 1988). The overriding assumption
of normative models is that an ideal solution exists which is

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waiting to be identified. Models based on utility maximisation clearly bear little resemblance to the
way decision-makers operate in practice. The application of normative models to group decision-
making processes (such as value engineering) is also severely limited due to the theoretical
difficulties of achieving common measures of utility.
The third category of decision models consists of those which are prescriptive in nature. Whilst these
models are still concerned with how decision-makers ought to behave, they do not depend on the
unrealistic assumptions of perfect sensitivity and complete knowledge. Prescriptive models are
essentially pragmatic in nature. They are intended to offer guidelines which can be followed, rather
than idealised mathematical formulations. Prescriptive models also differ from normative models in
that they recognise the limitations imposed by bounded rationality.
The concept of bounded rationality was originally described by Simon (1957). It is used to describe
situations were decisions are made in the absence of perfect information by humans who possess a
limited capacity for processing information. The recognition of bounded rationality in decision-making
has raised doubts regarding the meaning of an ‘optimal solution’. An optimal decision based upon the
information which is available at the time may well appear to be much less then optimal in the light
of subsequent information. In the context of building design, perfect information is clearly impossible
to achieve. Even if all cost and performance data could be obtained with complete reliability, the
intractable problem of predicting the requirements of the future (unknown) building users would
remain.
Implicit in the notion of a prescriptive model is the realisation that the manner in which the decision
is framed will inevitably influence the solution. Phillips (1984) has offered a further refinement by
introducing the concept of requisite decision models. Requisite models are produced by a process of
group consensus in order to clarify the decision objectives and identify possible solutions. The group
would be guided in its deliberations by a facilitator skilled in the techniques of decision modelling.
The model would not be intended to represent any sort of ‘universal truth’, but would attempt to
establish a ‘shared social reality’. The complexity of the model would depend upon the sophistication
of the group members. Its usefulness would be judged by the extent to which it achieved: (i) a
common understanding of the problem and (ii) new insights about possible solutions. The model
would continue to be revised up until the point when no fresh insights are generated. The model
would then be considered to be requisite and would form the basis upon which decisions would be
made.

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7 Reinterpretation of Value Engineering
The concept of a requisite decision model which is constructed within the context of a decision
conference provides a new interpretation of value engineering. It also provides an explanation of why
value engineering has proved to be so useful in practice despite the economic naivety of the
literature. Practitioners have developed approaches which have proved beneficial to clients in
illustrating the nature of the design problem and highlighting the implications of pursuing different
courses of action. The only meaningful way to judge the success of a value engineering study is to
assess how useful it was to the participants. If the stated objective of value engineering is to achieve
value-for-money then it has to be recognised that the success of the end result is totally dependent
upon perception. Value-for-money has more to do with psychological comfort than it does with
objective economics.
The doubts regarding the theoretical basis of functional analysis also become less important when
considered as part of a requisite decision model. Not only is function subject to perception, the
validity of the adopted method of functional analysis is also subject to perception. The concept of
requisite decision models implies that if an approach works to the satisfaction of its users then there
is merit in that adopting that approach. However, as clients and designers become more familiar with
value engineering they will demand an increasingly rigorous approach. The research agenda which is
outlined below is therefore intended to ensure that more sophisticated techniques are available when
they become required.
8 New Directions for Research
It was initially argued that the development of a meaningful agenda for research into improved
techniques of value engineering is dependent upon establishing a theoretical framework. This paper
has identified the connection between value engineering and the use of requisite models in decision
conferences. It is now possible to draw on the extensive literature of decision theory in order to
suggest a research agenda for the future development of value engineering. It should be stressed
that the following discussion relates to open-ended design problems where issues of value
preference are dominant. The recommended research topics are of little relevance to those whose
interest in value engineering is limited to the identification of alternative component solutions.
It is suggested that the most suitable starting point for a research agenda is provided by the ‘simple
multi-attribute rating technique’ (SMART), as described by Edwards (1977). This approach is
sufficiently simplistic to be used within a two-day decision conference and yet the basic framework
can

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be employed to incorporate recent developments within decision theory. However, it is important
that participants appreciate that the purposes of the exercise are to help them structure their
thinking and achieve a shared understanding. Decision models cannot be used to automate the
process of decision-making. It must be recognised that the method of analysis will inevitably
influence the client’s preference structure.
Of particular importance in the development of a requisite decision model is the way in which the
problem is structured and the manner in which importance weights are assigned to the identified
attributes. Research is required into the possible application of the analytic hierarchy process (AHP)
devised by Saaty (1980). There is also considerable potential in the use of value trees as a method
of representing design objectives (Pitz and Reidel, 1984). It is interesting to note that value
engineering practitioners who perform functional analysis by means of a hierarchial breakdown have
inadvertently come very close to the value tree concept.
Whilst the scope of this paper has been deliberately limited to the theory of riskless choice, there is
considerable potential for research into ways in which risk preference might also be taken into
account. The application of venture theory (Hogarth and Einhorn, 1990) may prove to be of
particular interest.
9 Conclusion
This paper has offered a reinterpretation of the theoretical basis of value engineering. It has been
argued that the essential characteristics of value engineering are identical to those which distinguish
a decision conference. The concept of function has been identified as being dependent upon
perception and the uniqueness of functional analysis has also questioned. Furthermore, it has been
suggested that the logic of functional analysis is indistinguishable from that displayed by the ‘means-
ends’ approach to the analysis of objectives. It can therefore be concluded that although value
engineering has developed its own distinctive terminology, it is not a unique discipline.
In common with any other method of decision conference, value engineering workshops can be
implemented for a variety of reasons. Simple cost reduction is a valid objective if the workshop has
been initiated in response to a projected cost overspend. However, there is an increasing trend for
value engineering to be programmed into the design programme in advance. Sophisticated clients
are demanding to be involved in key design decisions so that they can be assured that value-for-
money is being achieved. The systematic process of value engineering offers reassurance by ensuring
that the decision-making process is both rational and explicit.
The notion of optimising the value of a building design by

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utility maximisation has been classified as a normative model of decision-making. It has also been
suggested that the approaches to informal design optimisation which are described in the building
economics literature are essentially prescriptive. Value engineering, however, is best understood in
terms of a requisite decision model which is developed within the context of a decision conference.
The sophistication of the model used should reflect the sophistication of the client and of the
designers. Users are likely to react against a model which is too mathematical, they are also likely to
be dissatisfied by a model which they perceive as too simplistic.
The concept of a requisite decision model discredits the notion that value engineering studies can be
used to search for ideal, or optimal, design solutions. The primary objective of value engineering
should be interpreted in terms of providing the client with ‘peace of mind’. This is best achieved by
demonstrating, to the satisfaction of the client, that the decision has been made on a rational basis.
In the final analysis, value-for-money is more of a psychological state of mind than an economic
target which is measurable in any objective sense.
The concept of a decision model being used to generate confidence in the decision process is useful
in the interpretation of current value engineering practice. If the client is satisfied that the value
engineering study has resulted in value-for-money, then it is difficult to criticise the approach
adopted. If the users were satisfied with the model which was used then it follows that the model
was requisite for that particular situation. However, practitioners should not become complacent.
Clients are becoming increasingly sophisticated in their requirements. Whilst they may be satisfied
with the value engineering services they currently receive, there is no reason to assume that this will
remain the case. If practitioners are to continue to provide clients with a meaningful service then
they must aim to increase the sophistication of their techniques. An important first step in this
process is the adoption of the terminology and rigorous approach which has been developed within
decision theory. The application of value trees has been identified as being particular appropriate for
value engineering studies. Perhaps the major challenge for the future is to devise a workable
approach which takes into account, not only value preferences, but also risk preferences. However,
there is one statement which can be made with certainty; in the absence of an active research
programme value engineering will inevitably fall into disrepute.
10 Acknowledgement
This paper is based upon a research project funded by the

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Chartered Institute of Building’s QE II Silver Scholarship Scheme.
11 References
Bell, D.E., Raiffa, H. and Tversky, A. (1988) Descriptive, normative and prescriptive interactions in
decision making, in Decision Making: Descriptive, Normative and Prescriptive Interactions
(eds D.E. Bell, H. Raiffa and A. Tversky), Cambridge University Press, Cambridge, pp 9–30.
Cooke, S. and Slack, N. (1984), Making Management Decisions, Prentice Hall International,
Englewood Cliffs, NJ.
Dell’Isola, A. (1982) Value Engineering in the Construction Industry. 3rd edn., Van Nostrand
Reinhold, New York.
Dunstone, P. (1973) Value Analysis in Building (eds G.H. Hutton and A.D.G. Devonald), Applied
Science Publishers, London, pp 112–126.
Edwards, W. (1977) Use of multiattribute utility measurement for social decision making, in
Conflicting Objectives in Decisions (eds D.E. Bell, R.L. Keeney and H. Raiffa), Wiley-
Interscience, Chicester, pp 247–276.
Fowler, T.C. (1990) Value Analysis in Design. Van Nostrand Reinhold, New York.
Green, S.D. (1991) Value engineering during early design. Facilities, 9, (9), 10–13.
Hogarth, R.M. and Einhorn, H.J. (1990) Venture theory: a model of decision weights. Management
Science, 36, pp 780–803.
Johnson, R.E. (1990) The Economics of Building: a Practical Guide for the Design
Professional. Wiley-Interscience, New York.
Kelly J. and Male, S. (1990) A critique of value management in construction. Proc. CIB 90 Building
Economics and Construction Management, 2, pp 130–139.
Kelly, J. and Poynter-Brown, R. (1990) Value management, in Quantity Surveying Techniques:
New Directions (ed P.S. Brandon), BSP Professional, Oxford, pp 54–74.
Macedo, M.C., Dobrow, P.V. and O’Rourke, J.J. (1978) Value Management for Construction,
Wiley-Interscience, New York.
Mackinder, M. and Marvin, H. (1982) Design Decision Making in Architectural Practices,
Research Paper No. 19, Institute of Advanced Architectural Studies, University of York.
Morton, C.W. (1987) Value engineering and its application to the construction industry, in Building
Cost Modelling and Computers (ed P.S. Brandon), E. & F. N Spon, London, pp 31–40.
Mudge, A.E. (1971) Value Engineering in Design and Construction. McGraw-Hill, New York.
Newton, S. (1990) Formal design optimisation and informal design. Proc. CIB 90 Building
Economics and Construction Management, 2, pp 182–193.

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O’Brien, J.J. (1976) Value Analysis in Design and Construction, McGraw-Hill, New York.
Palmer, A. (1990) A Critique of Value Management, Chartered Institute of Building Technical
Information Service, No. 124, Ascot.
Parker, D.E. (1985) Value Engineering Theory, Lawrence D. Miles Foundation, Washington.
Phillips, L.D. (1984) A theory of requisite decision models. Acta Psychologica, 56, 29–48.
Pitz, G.F. and Reidel, S. (1984) The content and structure of value tree representations. Acta
Psychologica, 56, 59–70.
Saaty, T.L. (1980) The Analytical Hierarchy Process, McGraw-Hill, New York.
Simon, H.A. (1957) Administrative Behaviour, MacMillan, New York.
Simon, H.A. (1981) The Sciences of the Artificial, 2nd edn., MIT Press, Cambridge, Mass.
Szoke, K. (1974) Introduction, Proc. CIB W-55 1st International Symposium on Building
Economics: Assessing the Economics of Buildings, pp 1–6.
Szoke, K (1987) The 17-year old W-55 is still developing, Proc. CIB W-55 4th International
Symposium on Building Economics, Keynotes, 13–22.
VanGrundy, A.B. (1988), Techniques of Structured Problem Solving, 2nd edn., Van Nostrand
Reinhold, New York.
Warszawski, A. (1980) Evaluation of multiobjective ventures. Proc. CIB W-55 Methods for
Comparing and Evaluating Alternative Products and Designs, IV, pp 159–165.
Watson, S.R. and Buede, D.M. (1987) Decision Synthesis: the principles and practice of
decision analysis. Cambridge University Press, Cambridge.
Wilson, A. (1987) Building Design Optimisation. Proc. CIB W-55 4th international Symposium
on Building Economics, Keynotes, pp 58–71.
Zimmerman, L.W. and Hart, G.D. (1982) Value Engineering: A Practical Approach for Owners,
Designers and Contractors. Van Nostrand Reinhold, New York.

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Value management from a global perspective
W.F.Lenzer
VEI, Inc., Dallas, Texas, USA
Society of American Value Engineers, Chicago, Illinois, USA
Lawrence D. Miles Value Foundation, Washington DC, USA
Abstract
The value concept is presented as a higher order thinking process which is innately ingrained in all
humans. Using the Miles’ method of defining and relating function to cost as a form of value
expression can improve individual and organizational effectiveness. The system that Miles originated
as ‘‘Value Analysis” has spread throughout the world. Specific variances have evolved in the Orient as
a result of the East-West cultural gap.
Examples are presented from four widely differing areas: Product, Construction,
Organization/Procedures and Overhead (Utilities).
The history and evolution of Demings’ Quality Concepts and Miles’ Value Concept and their
integration into Japanese business is presented and the major similarities and differences are
discussed.
The Miles’ Value concept as a key communication tool is presented. It’s use in improving cross
cultural understanding is also discussed.
Applications of the value concept in Architectural Management, or any form of management, are
discussed and the benefits identified.
Keywords: Function, Value, Value Analysis, Quality, Miles, Japan, Management.
1 Value Engineering as a High Order Thinking Process
The basic concept of Value has existed for a very long time. It has been addressed exhaustively in
areas such as economics and philosophy. Larry Miles, however, was the first person in history to
develop a method by which the previously abstract concept could be quantitatively expressed in a
way which facilitated detailed analysis. He called his method Value Analysis. The key to Miles’
contribution to our world society in this regard was his development of the “function” feature of
Value and its relation to cost.
While written languages differ significantly between cultures, it would appear that almost all modern
spoken languages use a combination of verbs and nouns to express an action performed or desired
on an object. The use of a single verb and a single noun to express a “function” is the most
important key to Value Analysis/Engineering in that it:
(a) forces people to express an idea (function) in its simplest and most basic two-word (verb-noun)
form;
(b) forces people working together on a project or a problem to discuss the exact meaning of words
and their relationship to each other and the particulars of the specific situation;

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(c) dramatically improves communication and understanding.
As very young children learning to speak, we all expressed our needs in their most basic form, such
as “want food,” “need water,” ‘‘go sleep.” As we grew older, we learned to expand and elaborate on
these basic expressions and something like “want food” became: “I am really hungry and would like
to have a 1” thick, 16 ounce steak dinner with a baked potato.”
The evolution of language in a civilization or culture certainly followed a similar development Pre-
historically, simple grunts and sounds developed into specific simple expressions such as “tree,”
“hunt” and “food.” As time progressed, sounds and meanings were added and eventually evolved into
our more complex modern day language systems.
The basic concept of “value” has been with all of our cultures since their earliest beginnings. For
instance, when a prehistoric man became hungry enough he felt a need to eat food. In this case his
function or objective was to “Eat Food.” In order to achieve this objective, it might be necessary for
him to expend energy and resources to find and kill an animal. This expenditure or effort and
resource to “hunt animal” was in effect his cost (personal effort) to achieve the function. His value
system could then be expressed as:
“Eat Food” = Function & “Hunt Animal” = Cost in terms of effort

The value expression as derived by Miles is simply that:
The methods of defining functions and relating them to “costs” formulates a common basis for cross
cultural communication. Furthermore, once the relationship and methodology is learned and
understood, it can be expanded and applied to every aspect of business, products, systems and even
one’s own personal life.
In its highest order of perspective the Value concept can define the “purpose” and be viewed almost
as a philosophy. When brought down to detailed and specific problems, the concept provides very
effective techniques for detailed analysis/engineering and improved cost effectiveness.
Larry Miles observed that the individuals who appeared to gain most from learning his Value concept
were those in the top 20% of “intelligence.” The power of the concept compounds (see Figure 1)
when imposed at any level of intelligence but increases almost asymptotically at higher levels.
Dr. Takehiko Matsuda of Sanno College, during an impressive presentation at the Lawrence D. Miles
Value Foundation’s 1988 Pacific Basin VE Conference, presented the concept that VE is an important
element of increasing “Organizational Intelligence.” He further stressed the importance to all
businesses of increasing the organization’s level of intelligence in order to meet the challenges of the
future and to maintain a competitive position in the world marketplace.1

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Figure 1: Intellectual Impact on VE

2 Some Basic Definitions
In the USA there are several slightly different definitions of Value Analysis/Engineering. The Lawrence
D. Miles Value Foundation has published the following definition for “Value Analysis”:
1. A method for enhancing product value by improving the relationship of worth to cost
through the study of function, 2. A methodology using an organized approach [job plan]
with an organized effort [multidiscipline team] to provide required functions at lowest
overall cost consistent with achieving required acceptance or performance, 3. The
determination of the value of product functions as perceived by the user/customer in
the marketplace.2
While Larry Miles first called his function thinking system Value Analysis, over the years other
terms have been used to refer to the same basic process but with different areas of focus. For
instance, in many (but not all) USA manufacturing organizations the following apply:

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Value Analysis. The value process or methodology applied to something that exists or a
product in the production stage.
Value Engineering. The value process or methodology applied to something that doesn’t
exist or is in the planning or design phase.
Japan and most other countries in the Orient have adopted the term “Value Engineering” as the key
word to name the Miles methodology. When comparing Japanese terminology used in some USA
manufacturing companies the following results:
USA Japan
Value Analysis 2nd Look VE
Value Engineering “O’’ Look VE and “1st” Look VE
Some other common differentiations used in the USA and their application meaning are:
Value Management (VM). The value process or methodology (1) applied to management
systems, structures and procedures or (2) used by management in the conduct of their
business.
Value Control. The value process or methodology used to “control” costs in any
organization.
There are many other variations which surface from time to time. For instance, some recently used
terms have been AVA (Activities Value Analysis) or OVA (Organizational Value Analysis or Overhead
Value Analysis). The most comparable term to VM, AVA and OVA in Japan is Soft VE, which
encompasses all aspects of VE which are not hardware or related to something physical.
The “VE Job Plan” is essentially the same worldwide. There are probably more variations used in the
USA than anywhere in the world. The “VE Job Plan” is basically a step-by-step procedure by which a
VE effort is performed. Some job plans have as few as three steps, others can have 20 or 30 steps
and sub-steps. The more detailed Job Plans are very good for teaching, but may sometimes “stifle”
individuality and opportunities for more creative approaches. In the Miles’ Job Plan approach there
are only five essential steps which are as follows:3
STEP ACTIVITIES
INFORMATIONGathering all data and information; asking questions and understanding the project
from all aspects.
(FUNCTION) Identifying functions, relating functions to cost, evaluating worth and, in some cases
ANALYSIS (not necessarily all the time), developing “FAST” (Function Analysis System
Technique) diagrams.

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STEP ACTIVITIES
CREATIVITY (or Generating ideas (focusing on functions) without pre-judging, in mass quantities,
SPECULATION) without restrictions.
JUDGEMENT Evaluating ideas and selecting those which appear to have the best features and
opportunity for development
DEVELOPMENT Developing the selected ideas into specific proposals and recommendations. This
PLANNING phase also includes presentations, implementation and follow up.
These five key elements or steps are contained within all VE Job Plans everywhere in the world, from
India to Australia to Brazil to Europe, China and Japan.
Most of the Western countries have adopted and modified the American value techniques with less
modification than the Orient. Some of the peculiarities of VE in the Orient are:
“FAST” (Function Analysis System Technique):
(a) Diagrams are similar to function-hierarchy diagrams turned sideways;
(b) Maintain a rule that in moving from the “why?” to the “how?’’ (right to left) the number of
functions must always decrease; and
(c) seldom utilize “when?” feature.
Team studies:
(a) always done as a group; and
(b) avoid “individual” ownership; and
(c) avoid conflict
Human relationships:
(a) prevent loss of “face”; and
(b) maintain respect for society “order” and individual’s position.
Creativity:
(a) cultural boundaries; and
(b) more methodical as opposed to spontaneous.
3 Examples
3.1 Example No. 1: Product
Project: Electronic section assembly for missile guidance/control: circuit board attachment to
interconnect board. The original design (actually in production) required a special hand welded
interconnect fitting. The special fitting was a sole-source item.

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Current Cost: £6.31
Quantity of Next Production Batch: 40,000 units
Total Production/Assembly Cost: £252,400
VE Approach: A multi-discipline team of VE trained people from engineering, quality,
production/assembly, and purchasing along with a CVS team leader (all in-house) participated in a
three-day concentrated VE study.
Results: A complete redesign resulted which:
(a) Reduced number of parts from 2 to 1;
(b) Eliminated need for hand soldering;
(c) Eliminated sole source;
(d) Improved reliability; and
(e) Reduced maintenance.
Initial Savings: £4.90 per unit
Implementation Cost: –0.44 per unit
Net Savings: £4.46 per unit (71%)
Total Savings: £178,400
3.2 Example No. 2: Construction
Project: A research and development complex of over 300 buildings on a site totalling over 3 million
square meters (almost 700 acres) located in the western portion of the USA needed to prevent any
accidental pollution of wastewater. A system was designed to divert the wastewater into temporary
holding tanks upon detection of a hazardous condition.
Capacities of the project were:
(a) Maximum sewage flow: 5600 liters/minute
(b) Maximum storage capacity: 818,400 liters
Previous cost studies:
(a) A VE study had been conducted at concept (“O” step) by in-house people.
(b) A cost reduction effort had been completed two weeks prior to a scheduled independent VE
study. The results were:
Cost Before Cost Reduction: £1,352,000
Cost Reduction: –214,000
New Cost: £1,138,000
Project status: 100% complete design.
Approach: A concentrated five day VE study was conducted by an outside team of VE professionals.
The team consisted of a CVS team leader, an electrical engineer, a mechanical/process engineer and
a civil engineer. The study was conducted on-site with substantial interface between the VE team,
the owner and the design team.

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Results: One hundred sixty-one (161) ideas and 20 proposals were generated resulting in doubled
capacity (elimination of future expansion facility) and savings over £353,000 or 31%. Also eliminated
5 minute delay and relieved overloaded system.
3.3 Example No. 3: Management/Organization
Project: Patient medical records in a large hospital servicing more than 2500 patients per day were
stored in 3 different locations—a total of more than 300,000 patient records. For each patient seen,
the record had to be located, pulled, and distributed to the appropriate doctor. At the end of each
day thousands of pieces of paper had to be filed in individual records and those records returned to
their proper location.
Approach: A two week study conducted by CVS team leader, a CVS team member and a hospital
consultant was performed. In depth analysis of patient record procedures was the primary focus.
Results: Sixteen (16) recommendations resulted, including a staff reduction of 69 positions and a
26% improvement in productivity due to new, computerized processes. An annual savings of
£941,000 and life cycle 20 year savings of £15,300,000.
3.4 Example No. 4: Overhead
Project: Large synthetic material manufacturing operation, outside of USA. Facility included multiple
process lines with enclosed spaces totalling approximately 300,000 m2 and annual utility costs of
approximately £17,650,000 per year. The VE study was focused on utility systems and costs.
Approach: The VE effort consisted of a mix of independent VE professionals (A CVS team leader and
two VE trained mechanical/electrical engineers) and key representatives from client’s engineering,
utilities, process, quality and operation staff (a total of 12 individuals). The study spanned a six
month period and consisted of:
(a) a ten day information gathering effort on site with a 45 day follow on/analysis effort;
(b) a one week on-site creativity and analysis session during which ideas were selected and
assigned to individuals for development;
(c) a multi-month development effort and;
(d) a final review, report assembly and formal presentation to the plant management team.
Results: Three hundred and fifty-six (356) ideas were generated and ninety (90) ideas investigated in
detail. Thirty-nine (39) proposals were presented for immediate implementation. Thirty-eight (38)
proposals were accepted resulting in more than £2,060,000 in annual savings.
The proposals covered a wide range of areas such as:
(a) Changes in fuel type and quality
(b) Changes in methods of cooling, heating and piping
(c) Changes/additions to control systems
(d) Waste recovery and heat transfer
(e) Changes in process operation
4 Value & Quality
Dr. W.Edwards Deming and Larry Miles were contemporaries. Deming was born in 1900 and Miles
was born in 1904. Both individuals and their developing methods were signifi-

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cantly influenced by World War II. In 1945 Deming made his first visit to Japan, and by the early
fifties his quality concepts had been adopted and were being promoted as QC.
It wasn’t until 1955 that Japan discovered Miles and the Value Analysis system. The development
and expansion of the Miles’ system began to bloom through the efforts of Dr. Ichiro Ueno and
SANNO Institute of Business Administration in the early 1960’s. This lead to the eventual formation
of the Society of Japanese Value Engineering in 1965.
In the USA the Value Analysis/Engineering concepts of Miles were adopted and expanded by many
industries in the 1950’s and 1960’s. Few in the USA knew of Deming and the Quality Concepts.
Today “quality” concepts of Deming and the related concepts of Juran, A.V. Feigenbaum and, more
recently, Philip Crosby are well known and respected in both Japan and the USA; however, it has
only been in the last 15 years that the value of some of these concepts have been recognized by
USA industry.
How did they begin to “recognize” the impact of the quality concepts? By first recognizing that
Japanese industries were doing something that they weren’t and making a concentrated effort to find
out why Japan was increasing its share of not only the American but the world market This has led
to what some people term the ‘‘Renaissance of American Quality.”
As part of this Renaissance, American quality experts have been in excessive demand domestically as
never before. A person like Philip Crosby can charge as much as £7100 per day for his time. This
phenomena has not occurred yet in the USA in the area of Value Engineering in any of its forms.
Larry Miles left this world in 1985, never fully recognized (like Deming) in his own country. Why?
The Value Concepts of Miles are used extensively in American industry. The big difference is that its
use is considered almost a “company secret” and is not widely publicized. Those who do “advertise”
their use of the methodology do so very cautiously and generally only indicate their results
superficially.
The other problem in the USA is that there are many “Value Consultants” and for the most part these
consultants are very protective of who their clients are and what they’ve done with VE. The individual
consultants openly compete fiercely on every front. Because of the widespread awareness of the
quality movement in the USA, many VE consultants have reoriented their practice towards quality.
Although the US Federal Government has been virtually the only government in the world to
implement and promote VE in all of its agencies, some overshadowing has occurred in recent years
by the popularity of the quality movement. There are movements now to push TQM (Total Quality
Management) as the all encompassing system. This movement is being received with mixed opinions.
There are major differences between the Quality and Value concepts. Some of the value concepts
which most significantly differentiate the two are that the value methodology…
(a) can be applied in a wider range of areas and to any subject.
(b) is a thinking process that helps bring abstract ideas into a manageable concrete form.
(c) is function oriented.
(d) creates a common language of function communications.
(e) can be used to clearly define “the purpose” of a system, product or organization at several
different levels of abstraction.
(f) can produce measurable results in a relatively short period of time.
(g) can improve personal and organizational levels of applied intelligence,
(h) should be understood and actively used by the top levels of management.
There are also many common elements between the Value and Quality methods. Some of these are:

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(a) Teamwork
(b) Involvement of and feedback from customers and users.
(c) Creativity and brainstorming techniques.
(d) Involvement of workers or employees.
(e) The use of appropriate mathematical techniques for analysis (such as SPC).
The ongoing and even worldwide arguments about whether Quality or Value Concepts are the most
important have been answered in my mind long ago. It would appear that the “Value Concept” opens
the human mind and provides a way to expand and improve everything. It addresses the issues of
“purpose” but certainly does not contradict the value of examining “cause and effect”
From a VE standpoint the objectives of programs and movements can be defined but ‘‘Quality”
concepts do not seem to be able to achieve the reverse. Figure 2 shows the end result of a multi-
faceted “FAST” diagram which began with the examination of a single function “Improve Profit.”
The evolution shows the ability for VE to examine many aspects without limiting the thought process
to a singular focus.
5 Communication Aspects of VE
Recently I had an opportunity to review a portion of a proposed text dealing with VE. The text was
written originally in Japanese and translated into English by a professional translator. My review was
for English understanding, not teaching concept or specific technical approach. The difficulty of
language and culture became evident in two areas:
(a) Some “functions,” when spoken in Japanese with two words (verb-noun), were translated by
using up to six words.
(b) One translated expression of a “function,” while literally correct, represented a socially
unacceptable American expression.
The “Renaissance of American Quality” has resulted in perhaps many misunderstandings of how
things really work in Japan. Perhaps the global ideas get across, but some of the finer points are
certainly lost in the translation.
For instance, in bringing back to the USA from Japan the concept of Quality Function Deployment
(QFD), the system has totally lost the aspect of defining function with two words. Those who are
now the American QFD experts have no understanding of how Value and Quality techniques have
been integrated
Communication means getting across to another person an “exact” idea. Under any circumstances
this can be a difficult undertaking. I’ve often been in large meetings and have found in subsequent
conversations/consultations that different people heard different things. These were meetings where
everyone was a native speaker of English. The problem of multi-lingual meetings is compounded by
several orders of magnitude.
In my dealings with the Japanese Value Specialists, I have found that communications improve even
if conducted through an interpreter. This has mostly resulted because we have a mutual
understanding of “function” and how that is expressed in the verb-noun context.
The effect of forcing understanding and agreement between two or more people by defining
“functions” and organizing them within a system can be beyond the understanding of anyone who
has never experienced the opportunity. It can represent unlimited brain power and, as Larry Miles
said, “creates clear thinking.”5

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Figure 2: Improve Profit

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6 The Future
Every person, company, culture, family and special interest group is motivated by different factors
and to different purposes. The “purposes” may have some common aspects but the factors vary
widely. A person or organization may have all the knowledge and ability possible, but if there is no
motivation, performance is zero. This idea is expressed simply as:
(Knowledge+Ability) Motivation=Performance
The future of our world and its individual countries, companies and people holds much opportunity
and challenge. Who will be successful? While only time will expose everything, I believe that there
are a few basic ideas that will help any company, culture or individual succeed. These are:
(a) Try to know and understand yourself, your company, your client and your customer.
(b) Be willing to be flexible and accept new ideas and change.
(c) Improve the thinking abilities of yourself, family, company, country and the world in general.
(d) Improve “communications.”
• Understand self.
• Understand organization.
• Understand others.
(e) Organize and focus efforts to identify and resolve issues as quickly and efficiently as possible.
In my opinion the Value methodology is the key way to implement these ideas. The Value
methodology does not preclude the use of any approach or technique, but complements them all as
a means to identify, solve and/or resolve specific issues or problems.
While Deming has 14 specific principals for good management, I have only seven, the first four of
which should be followed in sequence. The seven key concepts are:
1. OBTAIN FACTS. This means all facts, information, data, and input from every possible source.
Questions must be asked/answered and the veracity of everything must be verified.
2. ANALYZE THE FACTS. Define “functions.’’ Relate functions to costs. Consider “worth” of functions.
Look at everything and compare with whatever “knowns” are available. Identify questionable
items and areas.
3. GENERATE IDEAS. Use brainstorming and group idea generation. Produce quantity and ignore all
restrictive parameters. This must be a distinguishably separate activity dedicated to the purpose.
4. DEVELOP & IMPLEMENT. Analyze ideas and select what appears to be the best for further
development and implementation. Follow up on everything and be tenacious in your pursuit.
Demand exacting feedback.
5. ALWAYS LOOK BACK. Never stop revisiting Steps 1–4. Facts and situations, as well as
information, may change daily. Accept the fact that we are in an “information society” and the
volume of data increases with each passing second.
6. INVOLVE OTHERS. While all of the steps presented above can be implemented by only one
person, the effectiveness is increased by several orders of magnitude by having two or more
people involved in the processes. (Note: My experience indicates that five to eight people
offer the optimum. Beyond that quantity the

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formation of sub-groups or teams is recommended.)
7. SEEK CATALYTIC AGENTS. Outside objective analysis and input can expand the dimension of any
effort Outsiders are not (or should not be) influenced by internal factors and should be able to
bring a wide range of background and experience to the effort.
This approach does not preclude any specific technique, it only opens the door to consider all
aspects. In other words, it fosters an “open mind” approach that can result in using the “best” way
for any particular situation at any specific point in time. It offers an opportunity to balance -- the
ying and the yang -- it will happen, so why not be a part of it and help it occur by using the Value
methodology?
7 References
Matsuda, Dr. Takehiko (1988) Presentation on ‘‘Organizational Intelligence,” The Lawrence D. Miles
Value Foundation’s 1988 Pacific Basin VE Conference.
Miles, The Lawrence D. Value Foundation for the Society of American Value Engineers (1988)
Directory of Value Analysis/Value Engineering Consultants.
Miles, Lawrence D. (1989) Techniques of Value Analysis and Engineering. Eleanor Miles
Walker.
Miles, Lawrence D. conversations with Bill Lenzer (1978–1985)
Walton, Mary (1986) The Deming Management Method. The Putnam Publishing Group.

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CHAPTER SIX
‘There are many applications where computerscan take over tedious and repetitive tasks, thereby
freeing people to devote their minds and more creative ability to more fruitful ends. One of the
important factors about the use of the computers is the facility that they offer to help extend man’s
natural capabilities.’
David Campion

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Data transfer—designs on the move
C.R.Coleman
Consultant, National Economic Development Office, London, UK
Abstract
The NEDC Construction Industry Sector Group is the only body that represents the entire scope of
construction and related activity in the United Kingdom. It has identified and redressed the lack of
leadership within the industry by establishing a Working Party to investigate CAD data and other
information exchange.
The Working Party’s findings show that the introduction and encouragement of CAD data and
information exchange practices offers substantial opportunity to rationalise the way projects are
managed to the benefit of all participants, and at substantially lower overall cost.
The background considerations and some of the practical measures implemented to assist the UK
building industry come to terms with its future are described.
Keywords: CAD Data and Other Information Exchange, Project Organisation, Building, Construction,
National Economic Development Office (NEDO).
1 Background
1.1 The role of the National Economic Development Office
The National Economic Development Council first met on 7th March 1962. Its objective is to increase
the rate of sound growth by:
Examining the economic performance of the nation. Considering what can be done to improve
efficiency, and whether the best use is being made of resources. Seeking agreement upon ways of
improving economic performance, competitive power and efficiency.
The organisation comprises three main elements:
The National Economic Development Council. 18 Industry Sector Groups and Working Parties. The
National Economic Development Office.

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For over three decades, the Council with support of the National Economic Development Office,
Sector Groups and Working Parties has tackled problems facing British industry and sought to bring
about beneficial changes to improve economic performance.
1.1.1 The National Economic Development Council (NEDC)
comprises six Cabinet ministers most closely concerned with the economy, six representatives of the
Trades Union Congress, six representatives of the Confederation of British Industry, the Governor of
the Bank of England and a number of independent members appointed by the Chancellor of the
Exchequer.
1.1.2 The Industry Sector Groups and Working Parties
represent a unique national resource which have contributed significantly to the UK’s industrial per-
formance. Chief executives, top trade union officials, senior civil servants and distinguished
individuals give their time freely to identify how things can be improved in their respective industries.
1.1.3 The National Economic Development Office (NEDO)
provides the secretariat for the Council and its Sector Groups and Working Parties.
NEDO projects are tackled to a high standard and within a strict timetable with emphasis on
overcoming obstacles to small and medium-sized companies. Furthermore, the completion of the
Single European Market has added impetus to NEDO’s role of enhancing the competitiveness of
specific industry sectors. It is against this background that the initiatives in respect of CAD Data and
Information Exchange have been undertaken.
1.2 The NEDC Construction Industry Sector Group
The NEDC Construction Industry Sector Group commissioned the CAD Data and Other Information
Exchange in Building Working Party to make practical proposals that could be progressively adopted
from the present time. The remit was to identify the information transfer needs between all parties in
a building project, if design, construction management, maintenance and operation, and finally
demolition is to be carried out effectively and efficiently.
The NEDO Working Party has tried to anticipate and pre-empt the emerging difficulties and offer
leadership.
1.3 Terms of reference: CAD data and other information exchange in building
The NEDC CAD Data Working Party was established to define its own scope of work, perceived
industry needs, and actions to be taken. Trying to accommodate all interests both inside and outside
the industry and refining the definition of activities has been a challenging but worthwhile task.

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The prime objectives identified in respect of data exchange were to:
Highlight areas of concern, commercial need and opportunity for action.
Raise awareness of both suppliers and users.
Provide means to rationalise existing problems.
Encourage wider adoption of best practice in the deployment of computer systems in building.
Prepare short and longer term guidelines for the industry.
In addition, supplementary and tertiary objectives are within the scope of the Working Party where
they concern the implementation of new technology leading to a rationalised and more effective
industry structure.
2 Towards fully mobile design information
The starting point for considering CAD data exchange in building and construction is to imagine the
worst possible scenario for information technology in a fragmented industry.
‘When computer technology is adopted by individual disciplines architects, structural and civil
engineers, quantity surveyors, building services engineers, etc., on the existing project organisational
model with little regard for the responsibilities of fellow participants. Hard copy drawings being
checked and passed between job functions, then redrawn in a proliferation of non-compatible
systems. A multitude of CAD derived drawings with no indication of the originating system or release
number. Add to these complexities, the demands of the developer, purchaser, tenant and
subtenants, not to mention security and maintenance considerations and the problem assumes
immense proportions.’
From this potential nightmare, insight is given to an enhanced industry structure.
As building practice is not rational; simply to computerise individual responsibilities and maintain
existing relationships is not appropriate as it will merely reinforce existing inefficiencies. Clearly, new
approaches are demanded to meet more sophisticated and complex building requirements. It seemed
realistic that heightened awareness of present difficulties and enhanced perception of the potential
benefits of change would encourage some companies to seek an ideal ‘model’ for data transfer. After
all, computers are only tools, and their application should support, rather than detract from the
efficient communication between all participants involved in a building project.

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3 Project organisation
Unclear and missing information is a major cause of problems in building and construction. Fig. 1
illustrates the significance of unclear or missing project information compared to other causes and
the effectiveness with which they have been resolved.
Efficiency tends to be subjective, however, and expedience for one discipline often leads to added
costs and delay for another. One of the main objectives of data exchange is to reduce substantially
claims against the main contractor for variations to contract conditions by quality assured information
transfer in design, construction management, maintenance and operation, and finally demolition.
Difficulties tend to occur at the interface between disciplines and project phases. In order to define
the quality assured regime required, it is necessary to define the interfaces and the information that
passes across them. Therefore, it is necessary to have a clear and detailed understanding of what is
happening between any two parties involved in the ‘contract’.
3.1 The respective role of each contractor
As a mission it is essential to:
Encourage the widest adoption of best practice in the deployment of all project resources including
computer systems.
Ensure that the supplementary and tertiary objectives of using new techniques are understood where
they lead to rationalised or apparently more effective project structure.
Clients, such as building developers and process plant procurers have to be educated with regard to
the ‘requests’ to the main contractor and the main contractor must be able to evaluate the
ramifications of changes easily.
4 Understanding how things go wrong in construction
Things go wrong for one reason only ‘human beings are fallible’. The UK contemporary approach to
tackling problems is to regard all participants, client through to sub-contract suppliers, as ‘Partners’
and that everyone is a ‘Customer’. The client is the ‘External Customer’ and each member of the
project team is an ‘Internal Customer’. All ‘Customers’ have the right to expect the highest standards
of quality control from the project management team. This activity relates principally to the control
and maintenance of contract information.

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Fig 1 - QUALITY FAILURES IN BUILDING

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A well organised ‘Contract System’ can substantially reduce if not eliminate the consequences of
human failure irrespective of where it occurs. A poorly organised ‘team’ on the other hand
exacerbates them. The principal difference between a well organised contract team and a poorly
organised one is pivotal on the ability of individual members to organise, process and relay
information correctly—not from their own perspective but from that of the receiving party and the
use to which it will be put. Most problems arise because of:
Defective information.
Incomplete information.
Conflicts of information.
The use of non-authoritative information.
Multiple sources of the same information.
Use of information ‘at hand’.
These problems are avoidable, however, and should be controlled by formal procedures. Thus the
necessity of control procedures is defined. The task of formulating control procedures for a large
building, however, is fraught with difficulty. This is because of the cumulative problem of a
fragmented contract and professional structure based on traditionally adversarial relationships, ie.
‘make a mistake and I’ll see you in court!’.
4.1 Division of project costs
If the costs of design, procurement and construction of a building are considered as two distinct
phases, then the typical division is:
Phase Design Phase accounts for 15% of total cost.
1
Phase Construction and downstream phase ie., procurement commissioning etc., accounts for 85%
2 of total cost.
The dependency of the second phase, however, is highly sensitive to the quality of output from the
first phase. A relatively small quality failure in the design phase has much more profound cost
repercussions in the procurement and construction phases.
4.2 Project meetings
The design phase itself is susceptible to the greatest proportion of quality related events as a
summation of pure design failure (8%) and information failure (34%). It is no coincidence that
the majority of these difficulties stem from the first project meeting when team
participation is not fully mature. The procedures that are set at this first meeting, include:

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Rules of procedure.
Roles within the scope of design responsibility.
Roles within the scope of construction responsibility.
Roles within the scope of commissioning responsibility.
Project management and reportage.
Continuous cost monitoring.
Methods of assessing risk.
Procedure for minimising risk.
Reliability.
Programme recovery.
Contingency provision.
The items lower down this list tend to compensate for ambiguities, potential failures and other
information related issues further up the list. As a consequence, the availability of agreed
‘Quality Assured’ information procedures at the outset of the project results in lowering
risks, increased reliability, shorter programmes and smaller contingency provision.
Savings between 15–25% of total project cost are estimated if the potential benefits are fully
realised.
4.3 Managing the issues
By taking the ‘big problem’ of achieving quality assured information exchange between participants
and breaking it down into a series of smaller problems we arrive at the ‘core issues’ confronting the
project team; these fall into three groups—Fig. 2:
Human and organisational issues.
Conceptual model issues.
Technical issues.
4.3.1 Human and organisational issues are principally concerned with quality, cost, time,
professional and commercial objectives, classification of information, technical and non-technical
information requirements.
4.3.2 Conceptual model issues are concerned with why the project resources and activities need
to be modelled and the need for the development of Quality Assured information exchange between
parties. By relating actual performance of previous practice and current working methods to an
idealised ‘project model’, an assessment of potential benefits can be made.
4.3.3 Technical issues are concerned with the technology of the engineering itself. Adequate
consideration must be given to the available methods of technical validation, data exchange,
geometric and non-geometric information, the implication of standards and testing.

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FIG 2 - CAD DATA EXCHANGE IN BUILDING

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The quality of the management of the information, data exchange media, and communication by
definition is critical to each of these three issues.
5 Information and data exchange
Hitherto, the terms ‘Information’ and ‘Data’ have been used synonymously. Whether computers are
involved or not it is good contract practice to regard these as separate quantities, thus
‘Information is Data set into Context’
An engineering analogy is to think of ‘Information’ as the vector equivalent of the scalar quantity
‘data’. Unless, the party transmitting ‘information’ has a clear understanding of the ‘context’ as to
how the data is to be used; then they are doing no more than sending numbers or words as
‘characters’ subject to many interpretations.
5.1 Implications for building and construction
Although each project tends to be executed slightly differently, the overall organisation is
summarised in Fig. 3—The Exploitation of Information by Contract Participants. The way in which
information flows between participants during the design and construction process in the industry is
illustrated by the matrix. Three stages of the exploitation of information are represented by:
I – Initiate information
D – Develop information
R – Read information.
Fig. 4 shows the main activities of participants ranked in approximate order of priority against three
groups comprising the design team, constructors and suppliers. The list is intended to schedule
typical information priorities, but does not claim to be either definitive or exhaustive, Note the
diagram underlines the information exchange problems during the design stage when several
different parties, usually in different companies, initiate design activity with strong added value
content. The incidence of problems in coordination are high and opportunities for cost and time
savings are worth pursuing.
5.2 Contract procedures for handling data and information
Contract procedures should recognise communication as being considered under one of the following
categories—Fig. 5:
Read only data: one-way transmission.
Design iteration: two-way transmission and reception.
Archiving.

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FIG 3 - INFORMATION EXCHANGE IN BUILDING

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FIG 4 - BUILDING: Information Interfaces.

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FIG 5 - CONTRACT PROCEDURES -

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Considerable simplification can be achieved and risks reduced if participants have a clear
understanding of their responsibilities in this respect.
The highest priority must be given to looking at the contract as a whole and the methods by which
quality assured information can be captured at an early stage. Contractors and suppliers have the
crucial role to ensure that categorised data is used by designers for the purpose for which it is
intended.
5.3 Opportunities for improved productivity: parts lists, manuals, schematics operating
instructions and procurement schedules
There is a need and opportunity for developing supplier information at an early stage. Although some
specific CAD databases of building products exist eg., RIBACAD; the majority of information about
products used in building and construction is gained from paper catalogues and reference books. The
specification of a part from a hard copy source into a CAD drawing may involve several draughtsmen
performing the same task in different companies in ignorance of each other. Thus risk of errors
occurring is ever present as described in Section 3—Understanding How Things Go Wrong.
6 How CAD data and information exchange is achieved at present
At the outset of a building project the managing contractor is faced with a fundamental decision of
profound gravity. How will quality assured and traceable information and data exchange be achieved
all the way down to the ‘place of work’ at site level.
6.1 Available options
There are five options available regarding the transfer of information between participants:
Hardcopy All communications initiated from controlled hard copy documents.
IGES The initial graphics exchange specification.
DXF The proprietary data interchange format originally specified by Autodesk.
STEP Standard for the Exchange of Product Model Data.
Dedicated database translators.
6.1.1 Hardcopy: Traditional practice perhaps, but now at considerable cost and time penalty. This
means redrawing CAD originated drawings; re-entering computer processed

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numeric information and retyping text annotation. The greatest logistics problem is ensuring the
correct issue of the drawing is available to all interested parties at the same time.
Use of hardcopy is not mutually exclusive of other information and data exchange techniques, but
requires equal respect.
6.1.2 IGES: The UK contracting industry has had difficulty in exploiting IGES despite the success of
this data exchange format in other industry sectors such as aerospace.
6.1.3 DXF: A partial solution and the preferred format adopted for widespread use of two
dimensional data exchange. Industry specific layering conventions exist for more sophisticated
data/information exchange.
6.1.4 STEP: Of the possible alternatives conceived at present, it is likely that STEP will provide the
long term solution, but it is vulnerable to lack of support from the industry to provide sufficient
resources to influence development specific to its needs. There is a lack of understanding within the
industry as regards STEP, which is generally regarded as a future solution to problems as currently
perceived.
6.1.5 Dedicated database translators: System specific CAD data translations can be achieved by
the use of direct translators. Their application is most appropriate between two users with high
volume or regular exchange requirements where the management of the exchange can be agreed
and tightly controlled. They tend to have severe limitations for common use, however, as they are
expensive and can require substantial human intervention.
Should ‘New Technology’ approaches be used, participants should be aware of the potential legal
issues raised.
6.2 Legal, insurance and copyright implications
The pace of change in the use of CAD in the construction industry represents a challenge to the
English and Scottish legal systems which usually look to precedents, rather than pre-emptive action.
In CAD data exchange there are few, if any, well defined liability responsibilities.
7 Recommendations
The Working Party’s combined wisdom can be delivered as a series of simple rules leading to the
more profitable and effective exchange of CAD data and other information. These are to:

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Establish the objectives of the data exchange exercise, giving this a higher priority than for the
technical considerations.
Agree hardware media and communication protocols.
Agree data exchange format. The interim preferred format identified by the Working Party is DXF for
2D unstructured data sets; but STEP is seen as the long term solution to the industry’s needs.
Structure CAD drawings observing a standard layering convention, ie BS1192 part 5.
Ensure your CAD vendor’s DXF (or other) translator has been properly tested and is quality assured
by an impartial authority. CADDETC offer both DXF and IGES evaluation services.
Agree the criteria to assess success or failure of the data exchange.
Define strategies in the event of failure and specify the corrective action necessary from the outset.
Test vendor commitment prior to purchase in respect of BS5750—Quality Systems; BS1192 part 5—
Guide for Structuring Graphic Information; DXF translator evaluation.
‘Exchange Agreement: guidelines for the successful exchange of product model data’ is an excellent
document available from the CADCAM Data Exchange Technical Centre, Leeds as a basis for a
contract between any two parties wishing to exchange data.
Included with this paper is an order form for the various reports published by the NEDC Working
Party upon which this paper is based.
8 In conclusion
Vendors and users alike should recognise the importance of dealing with all aspects of quality
assured contract information at an early stage. Particular attention should be given to formulating a
contract strategy in respect of exploiting computer aided design and other information exchange
from the outset.
Competent and confident exploitation of quality assured CAD data and other information exchange
based on new technology leads to innovative development, lower costs and reduced construction
programmes, whilst minimising liability and maintaining copyright and other intellectual property.

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Taking control of I.T.
M.Leith
KPMG Management Consulting, London, UK
Abstract
The recession in the construction industry has hit the business of the architect. The traditional role of
the architect is also under threat within todays evolving construction industry. Information technology
(IT) is playing and ever increasing part in the construction process. To achieve success with IT
implementation defining requirements and selecting systems needs careful consideration. This paper
sets out a strategic approach for architects contemplating the introduction of IT or planning system
expansion. Reviewing business objectives, management and user involvement, and the process of
system selection are discussed. Finally, the paper raises the issues of benefits, commitment and
investment requirements.
Keywords: Information Technology, Architects, Business Objectives, Strategic Approach, Staff
Involvement, Planning, System Selection, Benefits, Investment.
1 Introduction
Until recently information technology (IT) has been slow to influence the business of the architect
other than, perhaps, in the areas of computer aided design (CAD) and word processing. This
environment is now changing with clients, contractors and other professionals using more IT for both
technical and management purposes. Under this pressure and, in an evolving construction industry,
architects must invest wisely in IT to ensure that the systems they implement are usable and support
their professional and business activities.
Implementing any computer system must contribute to enhancing one or more of a range of driving
factors influencing most architects practices, these are likely to include:
• improving the running of the practice,
• delivering quality buildings to increasingly demanding clients,
• improving communications between all members of the building team.
The modern architect must assess the use of IT on the types of projects in which they are engaged
and how IT can help in the internal management of a modern practice. They must assess investigate
where IT can help improve performance of professional staff to enable better quality buildings to be
designed and specified, and how to reduce overall costs in getting the buildings delivered. Clearly,
the technology needs to be reviewed but, more importantly, the human resource implications need
careful consideration.
Unfortunately, there is a tendency to ignore this latter aspect to the overall detriment of any IT
implementation.

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more importantly, the human resource implications need careful consideration. Unfortunately, there is
a tendency to ignore this latter aspect to the overall detriment of any IT implementation.
The introduction of new technology has substantially rationalised the way in which projects are
managed to the benefit of all participants. These benefits are only likely to be realised, however, if
data and information can be more easily exchanged between the different participants in a given
project. This is requiring the architect to use technology to enable not only their own business goals
to be achieved but also to improve their relationships with other professionals, contractors and
clients. But to simply computerise individual tasks and activities is not enough, existing relationships
and working practices must also be revised in order to accommodate the improvements that the use
of information technology can bring.
Unclear or missing project information has caused, and is causing, major problems with effective
communication between contractors, consultants, suppliers of building components and feedback to
clients. Computers and other modern forms of communication are only tools to enable this situation
to be improved. The technology should support rather than detract from efficient communication
between all participants involved in a building project. If the role of the architect is not to fall further,
in relation to other professionals of the building team, they must be prepared to take technology on
board and use it to influence the design and construction process.
This paper sets out a structured methodolgy to assist architects address the issues of IT
implementation. The objective is to ensure that investment in IT has a positive impact on the
business and improves the delivery of quality designs and buildings.
2 A Strategic Approach to LT. for Architects
To implement IT successfully a broad view of the architects business needs to be taken. Various
factors must be considered when assessing what the architect is trying to achieve in business terms.
Implementing IT to computerise isolated tasks has worked to a degree but it has resulted in ‘‘islands
of technology” that are unable to communicate. In an era of open systems, and networked
businesses, such a narrow approach to computerisation is no longer acceptable.
To avoid the technology trap architects must adopt a strategic approach to IT implementation. This
will require a view of the business, the functions and information requirements matched by planned
IT investment. The basic steps involved are:
• assess professional and business objectives,
• review existing information systems,
• determine management involvement and commitment,
• understand what users require
• understand what users require
This is illustrated in Figure 1.

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Figure 1: Development of IT Applications

2.1 Understanding the Business
At the outset, the architect must assess the objectives of the practice, this will depend clearly on the
size of the practice in the first instance, and the size and types of jobs that are undertaken by the
practice. The architect must assess what he must do well to deliver a quality job, working closely
with other professionals to achieve the client’s objectives. In carrying out this assessment the
architect must look at the functions within the business that are being carried out to achieve the end
result of a building designed to meet the client’s requirements. This should be followed by identifying
the application areas for IT that need to be implemented to support the practice. It may be that
word processing and computer aided design (CAD) form primary application areas. However, access
to outside databases of building specifications and product information can often save time and
money, when carrying out a design for a large store or office block.
The results of this exercise should include:
• a set of professional and business objectives (where do we want to get to, how will we get there?
),
• a list of IT application areas that will benefit the practice.
2.2 Review any existing information systems
After identifying the IT opportunities, the architect must assess any existing information systems that
are used within the practice and in connection with other members of the building team. This should
include both manual systems and computerised applications. The resources used, the costs, the
strengths and limitations of the different systems should be determined. This places a ‘value’ of any
given system as it applies to the practice. It is also worth canvassing the opinions of users or
intended users of any future systems. If there are any problems with the existing systems, identify
them and list actions that may need to be taken. From this type of review additional IT applications
are often identified, these should be added to the list for analysis.

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2.3 What is the management involvement in IT?
Success in implementing IT will come from developing an effective management and organisational
approach to using computers, not from the technology itself. It is the architects good judgement
about using computers in the right place and at the right time that yields real benefits. (If necessary
get advice from architects who have already moved towards a technology supported practice).
There are three factors that will contribute to success:
• Any effective computerisation effort must be led from the top—the Partners. Unless it is clear to
others in the practice that the new system is important they unlikely to spend the time required to
really make it work. The risk is subsequent failure and disenchantment.
• Challenge the way things are currently carried out, don’t just automate existing procedures.
Priorities for computerisation will vary from practice to practice depending on their particular
markets.
• Don’t be over ambitious. A major mistake is to try to do too much too quickly. Whatever is
planned, do it incrementally. Break the plan into manageable elements, and make sure one aspect
of computerisation works before the second is tackled, and so on.
Make sure everyone knows who is taking responsibility for IT in the practice. It is an issue that is
often neglected but one that is a key success factor. Shouldering the responsibility shows
management support and commitment.
2.4 Involve the staff, what do they require from IT?
Let others in the practice know that computerisation is being considered, get their ideas, and get
their support for the idea of automation. Get them to learn about the ways technology can help, to
separate fact from fiction. Without support, the best planned and most needed systems may sit,
unused. Also, if others in the practice don’t understand what computers can and can’t do, their
judgements about the system will be clouded. Computers can’t work by themselves, after all. Some
resistance to change is inevitable, but by involving and educating others in the practice will help to
smooth the path to a more productive work environment.
3 I.T. Implementation to support the business
For any computerisation exercise it is important to understand why efforts towards automation are
being considered. The driving factor for any architect has to be an improved service to clients and
better relations with engineers and contractors, encompassed by overall business performance. To
achieve this with the benefit of technology the architect will be subject to a number of pressures.
These are illustrated in Figure 2 and discussed below.
3.1 Decide what to computerise first
There are always more opportunities than it is possible to pursue. Any of the following is a good
place to start with computers in an architects practice:

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Figure 2: Factors affecting computerisation

• Within the area in greatest need, such as word processing, CAD or even the accounts payable
function, decide which has highest priority.
• Decide where the practice stands to gain an immediate advantage, such as generating a large
number of detailed drawing for a major contract.
• Start by asking ‘What information must be managed?’ ‘Where is the information?’ ‘In what format
and with what frequency is the information needed?’
3.2 Identify the ways the computer will provide benefits
To get the value from computing the practice management must specifically decide what is expected
from the computers and how they will help accomplish the business objectives. Identify measures of
success that can be monitored as the systems begin to be used. There are many such measures, and
the right ones for the practice depend entirely on the objectives for using computers. For example, if
drawing revisions go out more promptly, in how many days? If contractor inquiries must be
answered more promptly, within how many hours/days? Those and others can serve as measures of
success. Many measures are difficult to quantify, estimates (not necessarily in financial terms) need
to be set in order to enable system effectiveness to be monitored.
3.3 Develop a long-range technology plan
Once there is a good understanding of what computers can do, where they are needed most, what is
wanted to automate first, and what benefits are expected to be achieved, a plan should be
developed. The plan need not be lengthy or elaborate, but it should reflect the decisions about how
computers and other technology are linked and to be used. Not everything can be done right away.
Rather, the plan should set out the vision for the next few years. It should, for example, state what
the practice wants to accomplish with technology, identify the technology to be used, specify
software standards, and discuss issues related to adaptability. In short, the plan should serve as a

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guide and provide a statement of direction. It should include a sequence of action-orientated steps,
and identify the contingencies that may influence certain future actions.
3.4 Assign responsibility for implementation
Once the practice has set an overall policy direction and decided on a starting point, it may be time
to find someone in the practice to handle the implementation. If this is possible, choose someone
who is generally fluent (but not obsessed) with technology and who is a good negotiator.
Communication skills are often a key attribute for implementing change. No computer installation, no
matter how small, goes as smoothly as originally planned. Negotiations will be inevitable with
numerous people—hardware suppliers, software and perhaps communications salesmen, training
resources, and other people in the practice. The practice management must keep the momentum
going and reinforce the importance of the new computer; try to tap someone else’s energy for the
day-to-day system implementation. But make it clear that they have management support.
3.5 Develop policies and procedures
In the beginning, policies and procedures may be very informal, but several issues should be
addressed. These include responsibility for maintenance of the hardware and software; back-up data
(making copies of data periodically to assure work is not lost in the event of a computer problem;
keeping a copy of data off-site, for example, in a safety deposit box); security of data (making sure
only authorised individuals have access to sensitive information); and data integrity (making sure
data collected is accurate and consistent eg. drawing standards in a CAD system).
4 System Selection and Implementation
Although the costs of computerisation are reducing there is clearly a certain level of risk associated
with any implementation. The quickest and most cost effective approach for many architecture
practices seeking to introduce new computer systems is to purchase well proven and widely used
packages. This is particularly the case with CAD, word processing and accounting packages.
To make the task of system selection easier the practice should adopt a structured approach to the
exercise. The steps involved are illustrated in Figure 3 and outlined below.
4.1 Statement of Requirements
A pre-requisite for any software selection exercise is a clear and unambiguous statement of user
requirements. Such a document will enable alternative packages to be assessed objectively, and will
also ensure internal agreement within the practice as to the nature of business requirements before
commencement of the selection process.
4.2 Preparation and issue of a Request to Tender
The next stage is to incorporate the statement of user requirements in a formal request to tender
(RTT) which should be issued to prospective suppliers. The RTT should also specify the criteria on
which the tenders will be judged, and the information which suppliers must provide to enable tenders
to be properly evaluated. The RTT should only be sent to suppliers who are likely to be able to
provide a viable solution.

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Figure 3: System selection and implementation

4.3 Tender evaluation and selection
This stage involves assessing the proposals received against the agreed criteria. A weighting may
need to be applied to the different criteria depending on the specific needs. Objective marking of the
proposals should be carried out and full user involvement at this stage should be encouraged. At
most two or three suppliers should be shortlisted for more detailed assessment and demonstration of
their solution. Visits to existing users should be considered. Finally, the proposals from the shortlisted
suppliers should be reassessed against all the information gained, and a supplier selected.
4.4 Implementation plan and development
A fundamental requirement for a successful implementation is a soundly based plan which sets out
all the tasks involved, and assigns responsibilities and timescales for each task. Providing such a plan
at the outset of the project gives a clear statement of the resources and time which must be
committed to the project if it is to be successful. It also provides the basis for ongoing management
of the implementation. As the project proceeds progress against the plan should be assessed, any
slippage should be accounted for and the appropriate action taken.
4.5 Testing and implementation
With the system installed a test plan should be prepared with test data. The system should then be
bench marked and the results assessed against the original expectations. A check on procedures,
system manuals and operating instructions should be carried out. Management support and effective
training are vital at this point so that momentum is maintained and the system can be integrated into
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4.6 Decision points and post implementation review
There are a number of decision points along the implementation path at which the practice can make
go/no go decisions as to whether to continue with the project or not. Similarly, further development
or system enlargement can be considered based on a post implementation review. This latter
exercise is recommended so that implementation success can be measured against the original
reason for considering computerisation.
5 I.T. Benefits, Commitment and Investment
5.1 Evaluate the benefits of technology
Are the hoped-for benefits being achieved? Are the documents, drawing and fee notes really getting
out faster, for example? If not, why not? Are revisions being delivered within the promised time? If
not, why not? Unless the practice realises the planned benefits of computers, all the time and effort
may have been poorly spent. This evaluation process should be continuous, especially as more
computer technology brought into the practice.
As a practice continues to grow, the partners direct involvement in technology-related issues may
decrease. This will begin to happen as technology becomes more and more specialised and
customised and as the business has enough resources to dedicate personnel to manage the
technology. At that time, an organisational structure will emerge (or will need to be created) for
managing technology on an ongoing basis.
5.2 Commitment
Most practices must maintain their computer systems without the benefit of on-site specialists. Not
only does this fact demand that the systems themselves be simple and easy to maintain, but it
demands that someone within the practice assumes an ongoing responsibility. The partners and
others in the practice should have training and involvement in the computerisation process.
It is important to provide initial and ongoing training to current staff. Technology changes, and so do
the ways it can be applied to solve various problems. Give personnel an opportunity to learn new
ways that technology can help with the business of building design. If there are enough people, have
an in-house seminar periodically. If not, send individuals to external training courses.
Be sure to provide training to new personnel. Don’t assume that the right information will be passed
on informally. Send new staff on training courses. Tell them what benefits are expected to be
accomplished by using technology. Show them that their effective use of technology is important.
Make sure they know that they need to do to get the most out of the investment.
Next, as noted previously, keep staff informed of the plans and goals for using computers. Get their
ideas, too. Staff are one of the biggest assets—be sure to tap them.
Finally, to avoid a fatal mistake, make sure that more than one person in the business knows how to
use the computer. The system manager/administrator should have a backup in the event of sickness
or holiday. If all drawings are held on the system, and the assistant is in an accident, trouble could
lie ahead if no support is available. This may appear to be a luxury that the practice cannot afford,
but the cost to the business of system failure can be very large. Therefore, system support,
maintenance contracts and helplines need careful consideration.

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5.3 Investment
Often the first question many practice managers ask is, ‘How much will all this cost?’ The more
appropriate question is: ‘How much will it make for the practice?’ Cost, in any absolute terms, must
be weighed against the benefits that are expected from a new computer system. In this sense, a
computer system must be treated like any other asset from which value is expected to be derived.
Only the practice manager, can identify the value hoped to be achieved from a system and the
human resources who make it work. Evaluate the benefits expected to be obtained as part of the
initial planning for computing. These benefits will be in addition to any financial ones. There is a
balance between the value of all the benefits and the actual costs of obtaining them in arriving at a
final decision about the software and hardware to use. This final decision also must take into account
any other relevant financial factors, such as depreciation. In the final analysis, though, the decision
should be based on the benefits expected from the new system, and not its absolute cost in terms of
money or other resources.
6 Conclusion
Technology is now relatively inexpensive, but however small or large the financial investment, no
cost can be justified unless, as a result of the investment, the practice runs more efficiently and
more effectively in ways that can be measured. Planning carefully will assist in achieving the benefits
from the use of technology to place the professional practice in better position to grow and profit. In
turn, this will also enable higher quality buildings to be delivered and, in a cost conscious
environment, help the construction process to be carried out more economically.

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CAD utilization and issues at NTT—data coordination
T.Nishimura
Nippon Telegraph and Telephone Corporation (NTT), Tokyo, Japan
Abstract
NTT’s CAD system and related application programs, developed for use in the design and
management process, have now been put into practical use. However, as these systems were
developed independently, data used by each process was not shared. The following points are being
considered to enable these systems to interact effectively.
Data coordination for each system and each process
Complete equipment of overall system environment
This paper first gives an overview of NTT’s CAD and CAFM systems. Second, we discuss the latest
developments in integrating the CAD and CAFM systems and coordinating the data. Finally, the
overall system environment is described.
Keywords: CAD, CAFM, Database, Data coordination, System integration.
1 Introduction
Nippon Telegraph and Telephone Corporation (NTT) has an obligation to deploy and maintain an
advanced telecommunications network. NTT owns some 32,000 buildings, with a total floor area of
approximately 21,000,000 square meters. The NTT Building Engineering Department, with 2,000
building engineers, is responsible for designing and maintaining NTT’s facilities. To work effectively,
computerization is actively promoted in planning, designing, maintaining, and remodeling, and
particular importance is given to CAD utilization as the infrastructure of the FM.
2 CAD utilization
2.1 NTT’s CAD
NTT has developed and uses an Engineering Workstation (EWS) based CAD systems, CADMARC, and
a Personal Computer (PC) based CAD system, CADET. The outline of each program is as follows:
CADMARC-Architectural design and drafting system which produces general architectural drawings,
A such as a site

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plan, floor plans, elevations and sections.
CADMARC-Building planning system which caluculates space requirements based on height and
P sunshine regulations.
CADMARC-Perspective drawing system which produces exterior and interior views of buildings, using
V 3D datafiles.
CADMARC-Computer graphics system which produces graphical images, using shading and ray-
CG tracing methods.
CADMARC-An integrated structural design and drafting system which performs structural design and
S automated drawings, using the building structural database.
CADMARC-An integrated building equipment design and drafting system which makes electrical,
E mechanical, and plumbing drawings, mainly for building service engineering but also for
making design calculations.
CADMARC-Facility management system which supports the planning and management of space and
F furniture.
CADET Architectural design and drafting system which runs as subprogram of CADMARC on a PC.
2.2 Issues in CAD utilization
Important issues in CAD utilization fall into three categories, issues of the CAD system itself, issues
caused by CAD utilization, and external factors.
Issues of CAD systems are as follows:
[Hard to operate as the user pleases] Since the input process demands numerical values, vagueness
and incompleteness are not permitted. Since the design process is subjective work, it’s hard to adapt
the design process to a computer system.
[Not user-friendly] The operating procedure has many steps (command select, layer set, line
attribute set, etc.). It’s hard to understand the scale factor and position in a picture. It’s hard to deal
with changing orders. It’s hard to check and manage the drawings. Since the system has too many
functions without customizing, it’s complicated and not useful.
[Data is not consistent] Since each system makes a new set of data for each process, the data is not
used consistently in the cooperative work of the design process.
Issues caused by CAD utilization are as follows:
[Hard to estimate the effect] It’s hard to show the effect of CAD utilization by numerical values.
[Hard to input as-built drawings] There are many drawings which need to be input immediately,
(architectural drawings: 38,000; equipment drawings: 180,000)
External factors are as follows:
[Hardware environment] Since an EWS is expensive and hard to operate, the system environment for
CAD utilization is not equipped sufficiently.
[Software environment] There are many CAD systems and application programs running on PCs and
few systems on EWSs. It’s desirable that the system runs on the same platform to improve data
coordination.
2.3 Practical use of CAD
This section disscusses the following points in practical use of the CAD system at NTT, development,
introduction, making materials for use,

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training, data input, user support, and applying to work.
[Development, introduction] CADMARC was developed to use as-built drawings in the design and
management process. A EWS was adopted to manage the large number of such drawings, and some
EWSs were installed in branch offices all over Japan. However the EWS is not spread enoughly for
personal use, so CADET was developed for distributed processing on PCs. The CADET is described in
Chapter 4.1.
[Making materials for use, user support] NTT wrote manuals on the basic operation, practical
techniques, and reference, and produced a video manual to help users to learn the operation easily.
Personal Computer Communication is provided for troubleshooting and file transport, and a Bulletin
Board System (BBS) is provided for exchanging information and programs.
[Training] A short course in CAD operation is held twice a month to help architectural designers and
building engineers to make immediate use of the system.
[Data input] When designing a new building, all data is input from the beginning, however, a case of
existing facilities, the as-built drawings are input at the time of remodeling or in order of priority.
[Applying to work] It’s necessary for business users to adapt their work style to the CAD system.
Moreover, it’s necessary to make the function of customaizing CAD system.
3 CAFM utilization
3.1 NTT’s CAFM
NTT’s CAFM systems are as follows:
Building Automation System (BAS) for building control
Bank control system for building supervision
Diagnosis system for estimating deterioration, environmental factors, etc.
Database system (inventory) for management
CAD systems for drawing management (CADMARC, CADET)
Presentation system for client persuasion
Other application programs running on a PC
3.2 Issues in CAFM utilization
Issues in CAFM utilization are as follows:
[Data is not shared] Many database systems and application programs are used in the management
process. Hawever, they use databases independently and data is not shared. Accordingly, some
original data is stored and copied many times and the data is not reliable.
[The amount of data is huge] The number of facilities is so large that it’s hard to process the data.
[The concept of FM is not understood] Building engineers tend to restrict themselves to their expert
field and have difficulty leaning new concepts of the FM.
Since the management process is mainly objective work, it should not be hard to adapt the
management process to the computer system if the above issues are solved.

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3.3 Practical use of CAFM
NTT has been attached importance to maintenance management and stored various technologies.
The building engineers take charge of each facility using many application programs based on NTT’s
maintenance technologies. These technologies have been adapted to the FM.
This section describes the new methods of management using CADMARC-F. We adapted CADMARC-F
to the following situations:
[Space management and planning] Designs the space layout, and outputs the total floor area, sorted
by department and purpose, and calculates the cost of cleaning.
[Maintaining building equipement] Outputs maintenance information for building equipment (overhaul
time, cost, etc.).
[Maintaining disaster control equipment] Outputs information on equipment sorted by floor and
division (fire area, halon-gas area).
[Asset and furniture management] Outputs inventory.
The current trend is not maintenance but modernization, because of the changing purposes of
facilities, so it’s essential to integrate management systems and design systems (such as CADMARC-
F) .
4 Integration and coordination
4.1 Approach to integration
To integrate NTT s CAD and CAFM systems and to coordinate the data, we developed two systems,
CADMARC-F and CADET.
The CADMARC-F integrates CAD data made by CADMARC with FM data made by each CAFM system
on an EWS. The advantage of this system is that the CAD data and FM data are referenced bilaterally
because this system consists of two programs, CAD and DBMS (commercial relational database,
UNIFY). Each program can also work independently. Thus, we can coordinate the FM data among
CAFM systems by the function of relational database. The extensible database structure is shown in
Fig. 1.
The CADET coordinates CAD data from each system and each process. The CADET’ s data is
compatible with the CADMARC’s data and is on the same platform with other useful application
programs and systems. The data flow in the CAD system is shown in Fig. 2. The data flow in the
remodeling process is shown in Fig. 3.
4.2 Integrated CAFM system
FM work is classified into planning, design, utilization, estimation, analyzing current conditions
(making a database), prediction, and presentation. We are planning to integrate these processes into
an integrated CAFM system. The data flow in the integrated CAFM system is shown in Fig. 4. We are
now extending the database of the CADMARC-F to take building control data from the Building
Automation System (BAS) and bank control system, and extending the function of directly access to
management data of each CAFM system’s database.

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Fig.1 database structure of CADMARC-F
Fig.2 data flow in CAD system (architectural design)

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Fig.3 data flow in the remodeling process
Fig.4 data flow in integrated CAFM system

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5 Complete equipment of CAD system environment
5.1 Complete library of figures
Architectural standard figures are registered and used to make drawings effectively. There are three
other libraries as follows:
[Standard detail library] NTT has published a standard detail library including 150 items with about
1,000 drawings. The most useful items are input to the CAD system and customized for each
building.
[Standard facility library] Recently, some makers of furniture and sanitary fixtures have prepared
libraries of their own products. These libraries include figures and other information, and will be used
not only in the CAD system but also in quantity surveying and in the execution process.
[Project library] The drawings of complete projects are refered to by other projects.
5.2 Common use of data with other CAD system and DTP software
CAD data is used more effectively if it can take in drawings and figures made by other CAD systems.
CAD data can then use unique function of other systems.
DXF is a common format for a data exchange file in architectural fields. It’s necessary to enhance the
CAD system to extend the number of files that can be exchanged with DTP software.
5.3 Data communication by ISDN
To transfer drawings between the design office and the construction sites, the head office, and
branches, we usually use post, FAX, or Personal Computer Communication. Additionally, we are
experimenting with ISDN (Integrated Service Digital Network) for more comfortable data
communication. (See Fig.2) ISDN can transfer the data on a floppy disk, which includes six or seven
drawings of intermediate buildings in three minutes. We are also experimenting with remote
operation of the CAD system.
6 Conclusion
The most important point in using CAD and CAFM systems effectively is to share data between
systems and processes, although each system does work independently. In this concept, the system
is used flexibly in the work of user’s responsibility and the data becomes valuable and reliable.
7 Future research
The following points about CAD systems are now being studied:
Three-dimensional modeling with attributes
Decision support tools for design process
Data standardization
Compatibility with multi-media data

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8 Reference
K.Yoshida, OUTLINE OF COMPUTER APPLICATION IN JAPAN’S BUILDING INDUSTRY Proceeding of
CIB 7th Congress, 1977, Edinburgh
N.Iwatsuki, K.Yoshida, and K.Moriya, CAD IN NTT ARCHITECTURAL AND BUILDING ENGINEERING
FIELD, Proceeding of CIB 10th Congress, 1986, Washington

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Coding for computerisation of building maintenance data
Professor A.Spedding
Bristol Polytechnic, Bristol, UK
Abstract
This paper briefly considers some of the work which has been undertaken on information systems for
the construction industry and also considers some of the essentials of coding systems and brings
these concepts together with some comments on the use of information systems and coding for the
recording of expenditure on building maintenance. The author has been involved with colleagues in
the Research Unit of Bristol Polytechnic on major projects funded by the Hong Kong Housing
Authority and the Science and Engineering Research Council of the United Kingdom both of which
projects deal with the acquisition and the use of maintenance cost data for management purposes.
Keywords
Building Maintenance, Maintenance Coding, Computerised Data, Built Asset Maintenance.
1 Introduction
There are a number of information systems in existence for the purposes of recording construction
information but these usually have been aimed at classifying new construction. The 1964 Report of
the Working Party on the costing, management and maintenance of local authority housing
suggested that it would be an advantage if there was a standard classification of costs of
maintenance according to certain characteristics of buildings. They specified nine groups which were
largely elemental within which costs could be held but the groups also included some functional
aspects. However, development of comprehensive codes for the computerisation of maintenance
records progressed very slowly and eventually the Building Research Establishment of the UK
commissioned the Research Unit at Bristol Polytechnic to develop a coding system for classification of
building maintenance costs in relation to housing. Subsequent to this, a different research project on
the costs of maintenance for school buildings, which was commissioned by the Department of
Education & Science, led the research team to devise a coding system which would be more
comprehensive and this was published in 1985. (1)

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Work done by the research team for other clients has resulted in the development of a more
sophisticated approach to coding systems and this paper reviews some of the background to these
developments.
2 Classification of Data
The author has looked at many systems currently used for the classification of maintenance cost
data, and a characteristic of most of the systems in operation is that they were devised at other
times for other purposes. Therefore when one is devising a new system, the first problem is to
identify precisely what are the data to be collated, at what level of detail and how the data are to be
combined. The system must be as comprehensive as possible within the limits of the storage and
retrieval system. Inevitably a compromise must be made between recording considerable data on
each item and the number of items in total which are to be recorded and their relative value.
In any large organisation there are inevitably a number of interested parties and when these people
come together in committees to advise on the production and implementation of coding systems,
they inevitably tend to ask for more information rather than less and they frequently lose sight of the
fact that information has to be collected in some way or other and this has a cost.
There are some principles which should be borne in mind in the design of a system, from the
management point of view. For instance, it is useful to relate the level of information output to the
level of responsibility of the participants in the system so that a senior officer is not weighed down
with day to day minutiae but similarly the operational surveyor will receive feedback on the items of
performance in which he is interested. This requires the output of information to be matched with
the input at various levels. Our experience has shown quite clearly that if the people who are putting
the information in do not feel that they are getting out useful information, then they will not ensure
that the input information is accurate, because they will take shortcuts such as allocating data to a
‘‘dustbin” code, such as day to day unspecified maintenance.
It is useful to try to build into the systems some means of checking the input and this should be as
easy as possible but of course it will depend to a large extent on matters such as the code itself and
the staffing which may be needed for such checking. Naturally one needs to bear in mind that staff
change jobs, and that new staff will be brought in to use the code, without any previous knowledge
of it. This therefore means that the implementation and upkeep of a computer system needs
appropriate training manuals, explaining the logic of that system. As in every authority there will be
in existence a system of some sort, it is probably going to be more efficient to implement a system
in stages which means that the system should ideally be hierarchical, and devised in such a way that
it will relate to other sub-systems, as it is installed.

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In another context, a working party (2) analysed problems of data flow in construction into three
elements: procedures or operations performed on the data, storage of data, and flow of information
in processes. They recognised that although procedural rules are needed for the generation of data,
there may be different rules for different purposes, and they felt that a preferred vocabulary was an
essential part of the syntax for information flow. Of course we have systems available such as the
SFB system and the Building Cost Information Service form of cost analysis. Additionally there is the
National Building Specification and Co-ordinated Project Information which is particularly useful for
specifying work. Thus, a logical coding system should enable changes to be made at a later date if
needed and also provide for correspondence between other systems as long as their basis is
reasonably similar; and here classification based on building elements seems to be a useful
framework. This is particularly true where one is looking to the future for a quality assurance system
where information on maintenance costs and failures is fed back to the design team in an attempt to
improve the design of future buildings. The principle of using the elemental classification for coding
maintenance data is sensible as the elements are generally those which are in place once the
building is complete and one can begin to examine possible relationships between quality of
specification, workmanship, maintenance policy, condition and life of elements.
Of course it must be remembered that the recording of data in an elemental classification raises the
same problems whether it is a manual or a computerised system except that the computerised
system can be made to work much more effectively and more quickly, and retrieval of data may be
made much more efficient.
A problem that often arises in many large organisations is that work is ordered on schedules of rates
which are usually trade based in their origin, and difficulties tend to arise because boundaries of
classifications are different in many cases from the elemental. Also, works orders often don’t carry
enough descriptive information, relying perhaps on estimates based on build-up of items from the
schedule of rates which don’t actually appear with the order. Such orders frequently cross elemental
boundaries, for example where an order to make good finishes and re-decorate an entire interior
involves several elements. In such a case comprehensive decorative improvements might be coded
as one operation under the decorative element, or alternatively the costs of the work might be
separated into floors, ceilings, walls and windows, if such separation is needed. If this type of
separation is requested, one must ask why this is so because both estimates and final accounts must
be broken down into the appropriate sub-groups, which does involve quite a lot of extra work unless
the whole of the schedule of rates is computerised and related to the maintenance cost data
recording system. The efficiency of this process will depend to a large extent upon the compatibility
of the schedule of rates and the maintenance data systems, and it may be that schedules of rates
need to be adjusted to suit maintenance classifications.

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3 Comprehensiveness of the System
The purpose of using codes is to compress information for economy of storage and to increase the
ability to manipulate data, and therefore only relevant information should go into the code, whilst
accepting that a relatively uncomplicated coding system will result in some loss of accuracy. It is
certainly not outside the bounds of possibility that natural English descriptions could be used by a
computerised system which would then translate the items into a comprehensive code but the
problem quite often is related to programming for such a use and also the amount of storage space
which is needed. Some coding systems are based on mnemonics but this can lead to ambiguity if
similar but different words lead to the same or very similar mnemonics. At one time punchcard input
was generally used and the codes were stored in books which operators had to become familiar
with. Although menu driven systems were possible it wasn’t until the late 1970s that time-share
systems were available in bulk, and over the last ten years increased speed and capacity of
affordable computers means that the processor can keep well ahead of key strokes. Thus, menu
driven input can be used by less technical people because it prompts the answer from a limited
range of questions rather than requiring people to look up the coding in a complex data base. It also
means that quite long codes can be stored if they are required because they don’t require acts of
memory on the part of the user. By menu driven I mean that as soon as a system is entered, a
series of questions guide the user from the broad elemental groupings such as “is it plumbing” or “is
it air conditioning system” right through to whatever level of detail is required. In each level the
system only requires one answer to be chosen from a limited set of questions, the answering of such
questions automatically recording the code in the machine.
There are probably two ways in which the coding system might be listed. The first is to list all facets
of the data in an hierarchical table, and the second is to use an hierarchical listing selecting only the
necessary combinations of characteristics at the levels of elements, sub-elements and so on. To take
a very simplified example, for service installations we might list all of the characteristics or facets
relating to each item of cost with materials listed at level 3 as in Table 1.
Table 1.
CODE LEVEL
1st digit 2nd digit 3rd digit
Type of System Component Material
Code Code Code
1 C.W. 1 Pipe 1 M.S.
2 H.W. 2 Valve 2 S.S.
3 F.F. 3 Pump 3 Plastic

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There are 33 or 27 possible combinations of data and, for example, a cold water pipe in stainless
steel would be coded 112. However, many codes will not be needed such as fire fighting pump in
plastic 333. A more practical solution would be to use a system where only the useful items are
listed, based on the most likely order in which the data might be required. Such a system might look
like Table 2.
Table 2.
CODE LEVEL
1st digit 2nd digit 3rd digit
Code Code Code
1 C.W. 1 Pipe 1 M.S.
2 S.S.
3 Plastic
2 Valve 1 M.S.
3 Pump
2 H.W. 1 Pipe 1 M.S.
2 S.S.
2 Valve 1 M.S.
3 Pump
3 F.F. 1 Pipe 1 M.S.
Thus, although a cold water pipe in stainless steel is still coded 112, only 10 likely combinations of
data and thus 10 codes need to be considered. Table 1 however includes 27–10=17 potentially
redundant codes which refer to non-existent items. Of course, any system should have some
redundancy in order to be capable of allowing for a certain amount of expansion or even contraction
of categories of data. In modern computer systems the difference is not material unless the system is
to be deliberately limited. The main difference in practice is that Table 2 will reduce the likelihood of
erroneous coding because choices are limited to those which are to be found in the maintenance
data.
4 Codes
Sometimes one might consider numerical or alphabetical codes, or a mixture of the two. In a
numerical code, one has ten alternatives in a single digit from 0 to 9 whereas an alphabetical code
has 26 alternatives, in a single letter from A to Z. If we choose a three digit code from 000 to 999,
this gives us 1000 items which could be in ten main sections denoted by the initial number, each
section having up to 100 entries. An alphabetical code however for at least the same number of
items, if expressed in separate letters, would need 7 letters and would yield 7 main sections, whilst
the use of the whole alphabet in each position of a three letter code gives 26

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sections, each section having nearly 700 items, giving a total of about 17,000 items. In practice, of
course, there could be a very large amount of redundancy, using a simply alphabetical code. There is
a possibility of combining numbers and the alphabet into alpha numeric codes so that a three
position code where the first position is alphabetical and the other two are numeric, would give 26
sections each with 100 items or a maximum of 2,600 listed items. Taking into account that codes
should be as consistent as possible in their logic and length of constituent parts we chose in our
research to use numeric codes because of their flexibility.
5 Typical Coding Systems
Many coding systems that we have examined are numerical and are based on three digits, tied in
some way or other to financial systems so that the whole range of numerical possibilities are not
available. One might find, for instance, that only 300 to 699 is allocated to the maintenance
department and that anything in the 300 series deals with ordinary building work, anything in the
400s deals with special programmes of improvement, 500 series might be general services, and the
600 series might electrical and special services.
The difficulty about such a system is that the codes have often been chosen in a rather idiosyncratic
way and don’t relate to each other so one might find, for instance, code 363 would be external wall
rendering and 364 would be installation of suspended ceilings. When one then realises that 347
might be the laying of tarmac surfaces to roads, it can be seen that the system lacks an internal
logic which allows easy recognition of the work.
The problem also about such a system is that as a new item has to be recorded for whatever
reason, it has to be added on the end, and in the 300 series there will only be 100 possible items.
Therefore, if all the spaces have been taken up in the code, the only way to insert another important
item would be to go through the list and drop something out which would mean that all of that data
classification would be lost and also would not be collected in future. Thus the use of an expandable
hierarchical system ensures that data, once collected, have a place and can be retrieved.
6 Uses of Maintenance Data
Of course there is a variety of uses to which maintenance data may be applied and much depends
upon budgetary and staffing levels. These two are related and both tend to be rooted in precedent.
Of course the monitoring of spending has to be undertaken for audit purposes and it is well known
that the financial department’s computerised recording of costs is more to do with monitoring who is
charged with what than with examining patterns of failure and remedial works in building elements.
This tends to mean that existing systems are not particularly suitable for the recording of
maintenance data and in trying to change the system, the finance

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department will usually find a range of reasons why they should not change their classifications. In
practice, there almost invariably will have to be some changes in order at least to achieve
correspondence between the maintenance data system and other departments’ needs.
If we assume that the maintenance budget is not unreasonably restricted (which it often is), much of
the attitude of the maintenance department to cost data will depend on the type of stock, its
standardisation and volume of work both in maintenance and new build. In respect of the budgetary
process, it is important for maintenance management to be able to highlight an increasing number of
failures, say in purpose-made joinery or pressed steel boilers, or concrete of a certain age, exposure
and material content. For quality assurance purposes and for feedback it is also useful to be able to
highlight those failures. Also, in equipment which may be installed in many dwellings or buildings, it
may be important to establish what is causing failure in order to modify specifications or buying
policy. Thus where specialist design departments such as the engineers , specify components, the
maintenance department’s records can be a valuable source of data for them.
Therefore it is a matter of concern in designing a data system to establish not only the primary
users, but also secondary users, and their legitimate purposes. In one study which we have
undertaken for a large housing authority, there was considerable interest not only in the recording of
failure of elements under particular service conditions, but also in the recording of the use of
alternative remedial processes. This introduces another aspect of a coding system in that one has to
be clear whether it is failure of a component which is being recorded or the remedial work being
undertaken or both. In practice, most codes currently in use for maintenance data recording tend to
contain aspects of both such as ‘‘strip off existing defective felt roofing and replace with new; to Type
A as described in standard specification”. This means that the first part of this sentence may be a
frequent job but the specification may vary from time to time and monitoring may require a greater
level of detail to be coded. This is easily catered for by extending the code as required and it is quite
possible for, say, a four digit code on the main system to pick up the first part of the item whilst a
subsidiary linked code perhaps held on intelligent micro based terminals by the building surveyors’
department can hold the additional details.
The cost data therefore should carry enough coded information to enable identification of problems
and it is likely that four or five digits will be needed for an adequate hierarchical recording system.
Even so, this will only be adequate for identifying the particular element or sub-element under
consideration and it has been suggested elsewhere (3) that the additional information on causes of
failure, and processes used in remedying of failure, and so on, can easily be added on a menu basis
to the elemental codes. In respect of the elemental codes, anything less than four or five digits is
quite possible, but the logical elemental and sub-

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elemental basis would be difficult to follow through unless only a limited number of failures were to
be classified. Generally speaking, as described above, the hierarchical system can be designed with
gaps in it which reduce the options to be coded whilst leaving plenty of room for insertion of
additional information as it becomes necessary. If the hierarchical logic is disturbed, then subsequent
alterations to the code can be rather idiosyncratic and confused. After all, the astonishing increases
in relatively cheap computing power are likely to continue for some years and a “complicated” code
is easily generated from lists or menus displayed on the screen. Using the code developed at Bristol
as the basis for an example, the first menu will be the main elemental headings, so movement of the
cursor and depressing the return button against the fifth item (plumbing) would produce a second
level menu with only three items, the third one being sanitary fittings, so a similar operation will
bring up the third level menu of 9 items, of which the fifth, for instance, is WC. Therefore a code 535
is generated almost as quickly as the keys can be depressed and an order may be issued against
that code entry without the operator having had to remember any of the codes.
Many authorities are looking for easily installed systems which will link to other functions such as
keeping stock records, keeping records of labour and materials in direct labour organisations,
recording costs for charging up of tenants in right to buy situations, and so on. It is our experience
that the differences between organisations and the differences in information flow within those
organisations do require systems to be modified to suit the individual authority. The devising of such
links can introduce complexities into the system but it is quite clear that, with care, a menu system
can be devised to cater for virtually all of the requirements of a maintenance cost recording system.
7 Conclusion
Increased computing power has meant that quite sophisticated data flows may be obtained as long
as the data are input in accordance with a logical system. However, the computerisation of the
system does not automatically provide information or analysis which could not be obtained by
manual means. Therefore the problems of what level of data to record and the decisions as to how
to deal with complex or multi-element orders still have to be taken by management before the
system can be designed. Having said this, although sound technical knowledge is needed in order to
write work orders, it is completely feasible for maintenance cost data to be coded at the time that
orders are written without the need to remember complex codes. Indeed, the processing of the
orders and coding may be undertaken by staff who have received only limited specific technical
building training, and this may be the most significant factor for the future.

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8 References
1. A Coding System for Building Maintenance—R.Holmes et al CIOB Technical Information Service
No. 47 1985
2. An Information System for the Construction Industry—DoE HMSO 1971
3. What You Want to Know About Causes of Failure of Building Elements Spedding A. Proceedings
CIB W70 Seminar Edinburgh 1988

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CHAPTER SEVEN
‘Perhaps the most valuable result of all education is the ability to make yourself do the thing you
have to do, when it ought to be done, whether you like it or not.’
Thomas Henry Huxley

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Development of a distance learning MSc in construction management
R.F.Fellows
Construction Study Unit, School of Architecture and Building Engineering, University of Bath, UK
T.D.Bilham
Director, Centre for Continuing Education, University of Bath, UK
Abstract
This paper examines the development of a Distance Learning version of an existing, successful MSc
course. Attention is paid to initial marketing, internal factors which prompted attention to distance
learning and the anticipated advantages. As with many novel ventures, the full implications were not
realized at the outset.
The course incorporates workbooks, readings, textbooks, video tapes and audio tapes as the major
distance learning materials, all of which are supplemented by a one week residential school
requirement for each of the four taught modules.
There now exist 3 modes of study of one single course. As a single course, the continuous
assessments, case studies and examinations are common throughout although the periods of study
required by students vary depending upon the mode of study adopted. Under distance learning, the
speed of study is dictated by students with the overriding stipulation that the maximum duration
required to complete the course is 5 years.
To date, the distance learning mode has attracted over 100 student registrations, all of whom must
meet the stringent entry requirements for any MSc course offered by the University. Results of
students assessments has been very encouraging, manifested by the complementary comments
afforded by the external examiner.
1 Introduction
Whilst working at Brunel University in West London, the three academics who comprised the
Construction Study Unit (CSU) developed an MSc course in Construction Management. The course
began in 1980 with students studying by part-time mode—this involved their attending the University
for one day per week for an intensive lecture and seminar programme over a period of two years at
the end of which they were required to submit a dissertation to complete their MSc

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studies. Shortly afterwards a full time mode of study was launched to cater for market changes and
to facilitate study by students from overseas. Throughout the 1980s the course attracted some 20
full time students and around 8 part-time students per year.
As the course seeks to aid participants’ personal development as well as their academic development,
a management-oriented outward bound field course of one week’s duration was introduced during
the first few weeks of study.
This initiative has been a major success in aiding integration of students and staff and, we believe,
has made a significant contribution to participants’ success.
Following financial pressures on British Universities during the early 1980s, Brunel University decided,
at first, to reduce and later to curtail its provision of degrees for the construction industry. However,
due to contact between members of the CSU and the School of Architecture and Building Engineering
at the University of Bath, the University Grants Committee (now University Funding Council—UFC)
agreed to effect the transfer of the academic staff of the CSU to the University of Bath; this transfer
took place in October 1987.
Having settled in at Bath, the members of the CSU were conscious of the opportunities to expand
their academic activities. The market for conventional full time and part-time MSc courses was
becoming increasingly competitive from both other universities and polytechnics, and the normal
sources of funding for major research activities—notably the Science and Engineering Research
Council (SERC, in application to whom the CSU had been very successful) were subject to quite
severe financial cutbacks thereby being forced to make major reductions in the availability of money
for research.
Discussions and analyses of education needs, opportunities and available progammes at postgraduate
level in the construction industry indicated that MBAs were popular programmes and major
competitors of Construction Management MScs. Fortunately, the nature of the MSc which had come
to Bath with the CSU was quite similar to an MBA course but within the contextural requirements of
the construction industry; indeed several graduates from the course had labelled it the “MBA for the
construction industry”.
Due to the links between Brunel University and Henley, the Management College, the CSU had been
instrumental in the launch of a joint MSc in Project Management between Henley and Brunel in which
the Henley MBA programme was used to provide the basic management input and members of the
CSU were responsible for providing the project management input and applications. That course had
been extremely successful and had been offered by full time, part-time and by distance learning; by
far the largest cohort of participants studied by the distance learning mode.

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As the construction industry has a tradition of day-release and short-block release, so that people
can maintain full time productive employment whilst undertaking education to obtain higher
qualifications, it seemed clear to the members of the CSU that extension of the existing MSc course
in Construction Management into the distance learning mode of study was appropriate and desirable.
That members of the Centre for Continuing Education (CCE) at the University of Bath had
considerable experience of preparing distance learning study materials, through their experiences
with the Open University, was a real bonus.
2 Initial Development
Having decided that the development of a distance learning mode of study was opportune, before
major commitments of work and resources were made, the necessity for some market research was
clear. Hence, a “corner-flash” was added to the advertisements placed in January 1988 for the MSc
by full time and part-time study indicating that a distance learning version of the course was to be
launched and requesting anyone interested in studying that course to contact the University.
Response was rapid and enormous; within a few weeks some 425 enquiries had been made of which
about one third were from overseas. By the end of the year the number of enquiries had risen to
over 1000. Clearly there was a large potential market for the course both in Britain and overseas.
Fortunately, the UFC was seeking to promote new developments in the field of continuing education.
An application for financial support to develop the distance learning version of the course was
successful; £30,000 was obtained for the year 1988/89 and a further £20,000 for the year 1989/90.
Correctly, a part of that funding was earmarked for the training of staff, both academic and
administrative; to enable academics to investigate and acquire skills to produce materials sutiable for
the special learning needs of students studying by distance learning and to inform and aid the
administrative staff in setting up and operating the extensive and complex systems needed to ensure
the proper operation of the course. Short courses, run by the Open University, were taken and there
extensive meetings and discussions with people from other institutions who already offered courses
through distance learning. The information obtained and advice given proved invaluable but, despite
quite extensive warnings and predictions, the time and effort needed to develop the distance
learning materials was still under-estimated to a small degree.

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3 Academic Acceptance
As this course was the first of its kind to be developed at the University of Bath it involved setting a
considerable number of precedents. Further, it constituted an academic “trail blazer” and, in
consequence, was subject to a high level of scrutiny by academic boards.
A problem which was encountered early was convincing members of the School’s Board of Studies
that it was not merely a “correspondence’’ course but was an extension of existing academic
activities, at a proper postgraduate level and would incorporate a variety of study mechanisms and
materials to facilitate students learning at a distance, that is without the everyday contact with
academic staff which takes place in a conventional university environment. Resistance to this novel
development may have been exacerbated slightly by the view of certain members of staff that the
School was, in essence, a design school, that construction management was rather peripheral and
that major developments of this nature would dilute the primary thrust of the School’s activities,
namely design. Fortunately one of the professors (who was designated to take over as Head of
School after some months) lent strong support to the proposal.
An essential element in securing the agreement of the academic boards (Board of Studies of the
School and Senate of the University) was that the proposal comprised the development of a new
mode of study for an existing, successful Masters course. That the Scheme of Studies (Syllabus) was
in place and that all assessments of students (continuous monitoring assignments, case studies and
examinations) and criteria for passsing were to be commonacross all three modes of study. Two
other deciding factors were that the entry requirements would be common across the course and
that the distance learning mode of study would incorporate compulsory residential schools
(complying with the University’s attendance requirements for part-time students) at which there
would be intensive study through more conventional techniques (lectures, seminars and tutorials)
and close personal contact between the students and staff.
4 Adminstration Acceptance
In tandem with obtaining acceptance of the distance learning version, acceptance of the project by
the University’s Administration had to be obtained. After preliminary discussions in which the
principals involved were considered in outline, the application to develop the distance learning mode
revolved around the business plan which was produced jointly by the CSU and the Director of CCE.
Analysis of the Scheme for the full time

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and part-time modes yielded a schedule of the study materals which would be produced. The study
materials are noted under ‘Course Structure’ and shown in Figure 1. Having determined the
necessary study materials, the next stage was to apply costs to their production. A major issue
involved the video tapes for the course. Employment of commercial producers of video tapes, who
would produce scripts from notes and produce the videos using actors, was estimated to cost
between £1000 and £2000 per minute for the video tapes which would be produced—this option was
discarded as being far too expensive! The outcome was the decision to produce the course
workbooks, video tapes and audio tapes in-house.
It was established early in discussion with the University authorities that the development and
offering of the distance learning version of the course was over and above the normal workload for
academic staff; in consequence a schedule of payments was drawn up to reimburse authors, tutors
etc for the various activities necessary to develop the course materials and, subsequently, to operate
the course.
The business plan which emerged was sensitive to assumptions made about student numbers. Hence
much attention was paid to the projected numbers recruited, how they would progress through the
course and drop out rate. It was assumed that recruitment would build over approximately 5 years to
a steady state of 60 new entrants per year, that the normal period of study for each of the 4 taught
modules would be 6 months and that the drop out rate would average at 10% per module. It was
assumed that students would take their dissertation during the third year of the course.
Essentially the business plan was prepared on the basis of marginal costing. The plan indicated that,
due to the considerable costs of developing the course materials, the course would be in deficit for
the first 3 years from commencement of its development. By the time the business plan was ready
for presentation to the University, the UFC had agreed to provide a grant of £30,000 to assist with
developing the course; taking that grant into account in the business plan, the cumulative figures
showed that it would be necessary for the University to underwrite approximately £40,000 for one
year. The business plan predicted that the third year of the course would earn a surplus sufficient
that by the end of the third year the course would break even on a cumulative basis and that it
would proceed to earn increasing surpluses over the fourth and fifth years by which time it was
anticipated that the course would settle into steady state operation.
The business plan was presented to the high level planning boards of the University and was
accepted by them as the basis on which development of the distance learning mode of study for the
MSc could proceed.

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5 Pre-Requisites
By the time at which academic and administrative approval for the development of the distance
learning mode of study had been obtained, it was clear that four elements, all of which were
fundamental to the success of the project, had come together. Those elements were:
Enthusiastic and highly committed academic staff in the CSU.
Distance learning expertise and course administration skills in the CCE.
A sizeable market.
A successful bid for pump-priming money to help fund the initial development expenditure.
If any one of the four elements had not been present, it is highly unlikely that development of the
distance learning version of the course would have been undertaken. (Indeed, the proposal would
have foundered much earlier in the gestation period of the project.)
6 Main Development
Project Management
In order to develop the distance learning study materials speedily, efficiently and effectively, a course
team of 5 was established comprising the three members of academic staff of the CSU, the Director
and Assistant Director of the CCE. Each member of the course team was allocated primary
responsibility for several functions. Broadly the distribution was:
CSU 1 – Author, academic course director, chairperson of course team.
CSU 2 – Author, admissions, residential schools.
CSU 3 – Author, examinations and assessments.
CCE 1 – Project Manager, Production Manager, Editor.
CCE 2 – Marketing, administration, student support.
Naturally there were many other issues that had to be dealt with; this was accomplished in a course
team meeting, by the member of the team using their particularly expertise or by engaging an
outside expert. Generally the arrangements worked very well due, in no small measure, to the effort
and enthusiasm of the team members. Unfortunately, the level of interest and motivation to develop
the materials was not matched in the University more generally which led to some problems in
deciding the appropriate systems to adopt, implementing decisions of the course team and resolving
issues which had major implications for the University—notably financial matters.

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Although many facets of the course were modelled on the Open University there were some major
and fundamental differences:
All members of the course team were involved in the distance learning project in addition to their
normal responsibilities.
Such part-time involvement put people under great pressure; especially to meet deadlines.
As none of the authors had any experience in the preparation of distance learning materials, it was
necessary for them to undertake training and to develop the style of writing to be adopted
throughout in a fairly ad hoc way. Fortunately, the use of experienced editors, with a knowledge of
distance learning requirements, and the phasing of producing the materials eased the problem
considerably.
Further expertise in the production of materials through other media had to be mastered—video
tapes and audio tapes.
The lack of any distance learning courses within the University, meant that every aspect of the
project set a precedent for the University, necessitating greater scrutiny of all decisions.
Although the total UGC pump-priming money of £50,000 was invaluable, along with the underwriting
by the University (as noted in connection with the business plan), early recruitment of students and
commencement of the course was considered to be essential to provide cash flow for development
of further course materials as well as securing a leading place in the market.
7 Principles
From the inception, the course team adopted certain principles which it held paramount for the
production of a worthy distance learning course.
Although adherence to those principles has been very difficult on occasions due to numerous
changes which have taken place, adherence to them has been maintained vigorously.
Quality is paramount—both academic and presentational.
Entry requirements for the course are common across all modes of study.
All assessments and criteria for passing are common—assignments, case studies and examinations.
Attendance at the residential components is compulsory.
As far as possible all students taking the course by whatever mode of study and in whatever country
should be

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afforded the same opportunities and have equivalent support mechanisms available.
The course fee must be at a competetive level but the major factor to distinguish the course from
others would be its quality.
8 Course Structure
The course structure is shown in Figure 1. Students are required to study and pass the 4 taught
modules (Management Principles—MT, Management Science—MS, Construction Economics—CE and
Management Practice—MP) and the module comprising 4 case studies (one of which relates to each
taught module) before being permitted to proceed to the dissertation stage. The University requires
that the residential requirement be met prior to the award of the degree.
Each taught module contains the following study materials:
Workbooks (1 per unit, hence 3 or 4 per module)
Textbooks (supplied to supplement, and referenced from, the workbooks)
Supplementary readings (specialist papers etc, referenced in the workbooks)
Video tapes
Audio tapes
Fig. 1. Course Structure and Study Materials

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Module MT contains 4 units, MS contains 3 units, CE contains 3 units and MP contains 4 units of
which the students must take two (Human Resources Management and Legal Aspects) plus one
option unit—either Design Management or Construction Practice.
As it is normal for students to take the modules consecutively (the order noted above is
recommended), students performance in each of the 4 taught modules is considered by the Board of
Examiners, including the external examiner, sequentially therefore, successful students accumulate
pass credits for the modules studied as they progress through the course towards the dissertation.
Having secured a pass credit in each of the 4 taught modules and the case studies module, students
are permitted to progress to the dissertation stage; satisfactory completion of which is the final stage
in their earning an MSc.
9 Logistics and Administration
The policy adopted of providing maximum flexibility for students within the 5 year maximum period
of study permitted by the University has created a variety of challenging logistical problems,
particularly for administration. All administrative support has been located in the CCE in order to
focus control and facilitate monitoring and because the University’s central administration has no
experience of dealing with a distance learning programme. Further, students should have a clear
focal point for contact with the University, preferably with a particular individual or small number of
people. Therefore, the central administration maintains only basic records and carries out basic
accounting functions, notably collection of fees. Examination arrangements and room bookings for
residential periods at the University are dealt with by the School’s administration.
Amongst the issues requiring particular, continuous attention are:
Entry twice early—May and November.
Students normally studying each taught module consecutively but may change their pace of study or
defer for a period provided they complete the course within the 5 year limit.
Dispatching the multitude of course materials.
Ensuring efficient delivery of materials to overseas students, including custom clearance—especially
for video tapes.
Organization of residential schools overseas
Organization of 18 individual residential schools per annum at Bath.
Establishing, maintaining and monitoring an extensive network of academic tutors.

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Receipt of students work for assessment, distribution to academic tutors, receiving marked scripts
and returning those to the students with associated distributions of performance records.
A network of personal tutors and the provision of counselling-type support.
Securing the production and delivery of all materials on time.
Organizing examinations both at Bath and at overseas centres.
10 Problems
The vast majority of issues which have been discussed already have achieved satisfactory solutions.
However certain major problems have emerged which, unless dealt with speedily and effectively to
secure satisfaction of the people involved and, particularly to ensure that enthusiasm and
commitment is maintained by members of the course team, could place the entire venture in
jeopardy.
Unacceptable material from authors. Only a few instances and from externally commissioned authors
exclusively. Such materials were of insufficient standard; the probable best solution is to scrutinize
external authors rigorously and, after preliminary discussions, to provide them with meticulous briefs
for the materials to be prepared.
Issues of copyright. It is essential to determine who owns the copyright in materials produced and to
make appropriate payments for the acquisition of copyright.
Use of the copyright symbol on course materials, with the University’s name appended, should
discourage potential plagerism.
What charges other than direct, marginal charges of producing the course materials and operating
the programme should be borne, eg University general overhead, school overheads.
Distribution of any surpluses earned.
Unfortunately some of the problems were not tackled sufficiently early and, therefore, resulted in
frustration, anger and some, not inconsiderable, difficulties.

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11 Impact on the Organization
The production of a distance learning course of the size and scope of the MSc in Construction
Management is a major learning process for all concerned:
a) Academically it is contributed to a reassessment of the content and structure of the full time and
part-time modes of study for the MSc
b) Organizationally it has required the University to amend some of its structures and systems to
accommodate study by distance learning.
c) Financially it has necessitated reappraisal of what are the implications of a major self-financing
degree course.
d) Contractually it has required clarification and amendment of the roles of various staff, notably
academics.
e) Professionally it has provided new skills and enhanced the standing of the people concerned.
f) Opportunistically it has opened new markets world wide.
g) Accessibility it represents a major opportunity for many people to gain a higher degree who,
without such a course who otherwise would be denied access.
12 Current Position
To-date (July 1991) there have been several thousand enquiries about the distance learning mode,
several hundred applications and registration of over 110 students. The average drop out rate
(people who have ceased to take the course apparently permanently) is around the 10% predicted.
Academic success is high—so far no student has failed any module. The external examiner has
commented officially to the Vice-Chancellor of the high standards achieved by students taking the
course by the distance learning mode of study.
Students from the first intake of the course (November 1989) are completing their final (MP) module
and will be embarking on their dissertations in November 1991. Hence the first graduates who
studied by distance learning should receive their degrees in 1992. Most students taking the course
are UK based, around 20% are overseas. The pattern of entry is that around 50 students join the
distance learning mode in November (when both home and overseas students may begin the course)
and approaching 20 students (UK only) enter the course each May. Thus, the course should achieve
“steady state” student numbers in November 1991.

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13 The Future
Amongst future developments under consideration and discussion is the possibility of joint operation
of the distance learning mode between the University of Bath and Universities overseas which have a
particular opportunity in the field of construction management. The forms of such arrangements may
vary but, at present, the overseas universities will, essentially, service the Bath course—it will remain
a degree of the University of Bath but the overseas universities will share surpluses generated.
Further course contents are in development—currently, in the field of international construction.
Much interest in the distance learning mode of study has been generated within the University such
that may other schools are persuing development of distance learning courses.
Perhaps use of high technology, interactive study media will be the next development for the MSc in
Construction Management by Distance Learning.

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Education in the role of management
G.M.Cairns
DEGW (Scotland) Limited, Glasgow, UK
This paper examines the role and responsibilities of the architect, with particular reference to the
design and construction processes, and questions the current status of the profession with regard to
this role. The primary role of the architect, as defined within the profession’s own terms of
appointment, is one of management and co-ordination of the design process. The profession
promotes the architect as the lead member of the design team, a position which is, more and more,
becoming the province of other professions.
The education system itself fails to support the primary role, being biased towards the promotion of
the architect as designer and not of manager of a production process. Training in management of
the design and construction processes is, at best, limited and, at worst, relegated to the position of
an ill-considered add-on to the course of study.
The paper concludes that only through increased recognition of the importance of education in
management techniques and of specialisation and teamwork will the architectural profession be able
to justify and earn the right to leadership of the design team.
Keywords: Design Management, Education, Project Management, Primary Role, Teamwork.
1 The Role of the Architect
“The architect’s primary professional responsibility is to act as the client’s adviser and additionally to
administer the building contract fairly between client and contractor”. RIBA
The role of the architect is defined within the Royal Institute of British Architects’ publication
‘Architect’s Appointment’, the document preferred by the architect in determining his conditions of
appointment and likely to be the least onerous in terms of responsibility and liability, where
alternative conditions may be proposed by the client.
The primary responsibilities, as set out within the first few pages of this document, relate not to
design but to management; the co-ordination of the elements of the design and the administration of
the contract.
In setting out the architect’s roles and responsibilities in relation to the design process the RIBA
document clearly highlights his training for the role of assisting the client in understanding the
process, for co-ordinating all the elements of the design and for administering the building contract.
Any prospective client presented with this document should, justifiably, feel secure in the knowledge
that his architect has had a full and thorough training in the aspects of architectural management
which are likely to affect the project.

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2 The Reality of the Architect
Arising from the role implied in the introductory statements of the architect’s terms of appointment,
as manager and co-ordinator of the design process, the architectural profession has traditionally
promoted its ‘right’ to a position of leadership of the design team.
The architect is charged, by this document, with overall responsibility for collating the client’s
requirements within the brief, of interpreting them in his design and of overseeing their
implementation during the construction process. He is also required to advise the client on matters
relating to contract, costs, programming and a wide range of other matters.
The appointment also bestows upon the architect the authority to co-ordinate the work of other
professionals in incorporating them into his design.
It is likely, in these times, that any client willing to appoint an architect under the RIBA terms would,
for the term ‘have the authority to’, expect the reality of the situation to mean ‘accept the
responsibility for’.
In defense of the design team leadership the architectural profession will vociferously attack others
who attempt to usurp its position. It is doubtful, however, if many architects are adequately prepared
for, or fully understand, the responsibilities which the acceptance of this appointment lays upon
them.
The profession has, for a considerable period of time, permitted its members to abdicate
responsibility for this role through lack of knowledge, understanding and, to a large extent, interest
in the management of the architectural process.
The responsibilities which are accepted by the holder of the position of design team leader are those
of management and control of the building design and procurement process. This management role
must be clearly understood to be separate from the design role. It is unlikely, however, that many
architects differentiate between the roles of designer and design manager and, thereby, they will
readily promote the professions ‘right’ to be design team leader as arising from the role as lead
designer.
The architect’s role as team leader can be supported by the responsibility which he accepts under his
terms of appointment, but cannot be based upon the the premise that, because he is the primary
producer of the design, he must have control over the implementation process.
Logically there is no reason why the role of team leader should fall to the lead designer and,
therefore, the position of design team leader is one to which the right must be earned and cannot be
expected. Respect for the role of team leader can only be gained by demonstration of in-depth
knowledge and understanding of the total project implementation process.
It might be argued that, in the past thirty years, the architect has allowed, through lack of interest,
and subsequently been forced to allow, through lack of knowledge, some of his major roles in the
fields of project and construction management to be assumed by others, losing control over their
correct integration into the overall architectural process.
Reliance upon the quantity surveyor for cost information and control and, even, for specification
writing has become commonplace, with the architect often taking little interest in the content and
quality of the information provided.
The weakening of the architect’s position in relationship to control of the design process weakens his
overall authority and, therefore, his position in any argument relating to other aspects of the design
process.
The architectural profession currently fights battles on the subjects of

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fee scale, aesthetic control and collateral warranties from a position of weakness, brought about by
its loss of authority in the business of design production and procurement.
3 The Image of the Architect
The architectural profession, through its professional bodies and through the architectural press, has
always willingly, if unwittingly, promoted the view of the architect as the ‘whole person’.
Design architects are elevated to the position of ‘gurus’; their works portrayed in glossy detail in the
architectural press; the form, function and detail of the design displayed and dissected. Awards are
bestowed upon the individual; gold medals, knighthoods and other plaudits.
There is little recognition of, and even less analysis of, the team structure and management process
which lie behind the facade of design excellence.
Coverage of management issues in the press is not normally project specific or, if it is, it will most
likely be limited to case studies of management failure, not of architectural success.
Technical studies of the construction, structure and detail are regularly presented for successful
design projects, but the link which must exist between successful design execution and a
knowledgeable design management team is not made. The pitfalls and obstacles to the procurement
of good design are too numerous for the link not to exist.
The architectural profession promotes the image of the ‘whole person’ but fails to promote or foster
within itself the understanding of the ‘whole process’.
The segregation of product and process, along with the weighting of recognition in favour of product,
follows through to the external image of the profession and into the profession’s own teaching
methods.
4 The Role of Architectural Education
‘‘The education of architects prepares them to assist clients at all stages of a building project and to
co-ordinate all the elements of the design and construction process”. RIBA
Despite the clarity of the responsibilities set out within the first few pages of the RIBA document on
the appointment of an architect, the majority of effort on teaching within the architectural education
system is expended upon the process which the majority of architects in practice will never get the
opportunity to effect on any major project; composition of the visual elements of design.
Other areas of the architectural process are considered secondary to this area and any form of
management teaching which may be presented is frequently relegated to the position of being an
add-on to the final year of the course, at a time when the final design project is viewed by teachers
and students as the primary area of interest.
The teaching of architectural practice and management in schools revolves primarily around the
building contract and its application and on legislation affecting the design process.
The education process should provide graduates with a level of understanding of the total
architectural process which will prepare them for, and enable them to promote, the architect’s role
as lead member of the design team.
In reality, however, the major areas of project management, cost reporting and client contact are
increasingly being controlled by others;

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the quantity surveyor and the project manager.
The student’s experience of management within the office environment, during the year out, is likely
to be restricted by the nature of the work on which they will spend the majority of their time; on the
production of information. The management of the office, its financial planning and resource
planning, are areas within which the majority of practices are unlikely to grant the student access to
information.
Within the field of architectural management, then, the teaching of entire areas of resource planning,
financial planning, man-management etc are either covered in minimal outline only, or are omitted
from the teaching process entirely.
At the RIBA conference on education, held in March 1991, Christopher Foster expressed the view that
architects should be trained alongside other professions to fulfill their design and management role.
The RIBA Journal subsequently reported that “this seemed to be a problem which the conference
would not face”. RIBA
Initial teaching of the basic principles of the entire architectural process and of the relationships with,
and responsibilities of, other professions would assist students in determining those areas within
which their particular strengths and interests may lie. It might also allow them to recognise and
acknowledge those areas in which their own weaknesses should be reinforced by the contributions of
others.
5 ‘Whole Person’ or ‘One Stop Shopping’?
It might be argued that the knowledge of all areas of architectural design and management cannot
be known to the individual. This is undoubtedly true, but the acknowledgment of this truth should
not be seen as a sign of weakness. Rather it should be seized upon as an opportunity to build
strength.
It is noteworthy that the architectural profession stands almost alone in its promotion of the
individual over the team in so many instances. In virtually all other professions the output of the
process is acknowledged to be a team effort, even, as in the medical profession, where a degree of
specialist knowledge in a particular field may be attributed to the individual.
Acknowledgment by the architectural profession of the need for team work and of the contribution of
a number of different people to the design process would encourage greater specialisation within the
profession; which might then accept that, instead of promoting the ‘whole person’ concept, it should
promote a ‘one stop shopping’ concept.
Such a concept would involve the development of teams of specialists, able to promote themselves
confidently as providers of the full architectural service; design excellence accompanied by the
highest standard of design management.
6 Conclusion
It is only through full integration of the teaching of design and construction management into the
education process that the student and architect will be able to understand the full architectural
process and be able to establish their own strengths, interests and responsibilities within it.
Widening of the horizons of architectural education and recognition of the contribution of the purely
managerial function to the successful implementation of good design would encourage the evolution
of a new

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breed of architects.
This new breed of architects would encompass the fields of visual design, functional design, design
management and design implementation within the term ‘architect’.
The team responsible for the architectural process would have a full, but shared, understanding of
the process and a mutually shared, rather than mutually exclusive, goal in its successful
implementation.
7 References
Royal Institute of British Architects, (1988) Architect’s Appointment RIBA Publications Limited,
London, p. 1
Royal Institute of British Architects, (May 1991) RIBA Journal. RIBA Publications Limited, London,
p. 19

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Open learning as a contribution to continuing professional development in British
architectural practice
M.Hatchett
London School of Economics, University of London, UK
Abstract
This paper describes some of the developments that have taken place in open learning programmes
during the last decade which may contribute to continuing professional development in British
architectural practice.
Keywords: Adult Training, Open Learning, Continuing Professional Development (CPD), Architectural
Practice, Post-Qualification Continuing Education, Life-Long Learning.
1 Background
In May 1990 Christopher Ball, in a report addressing the need for widening access to higher
education in Britain, demonstrated a clear need to prepare for tomorrow’s world because:
• the nature of work is changing and increasingly employers are calling for more people with
professional, technical and managerial skills.
• fewer people are now able to rely on their initial education and training to provide them with the
specific skills which will last a lifetime
• more and more people have discovered that lifelong learning improves the quality of life
2 Life-long learning in construction
Within the last 20 years many of the construction related professions have recognised a need for
some form of post qualification continuing education. In 1978, a committee of the Royal Institute of
Chartered Surveyors recommended that it should be compulsory for every chartered surveyor to
devote some time after qualification to improving skill and efficiency, and by 1991 all surveyors, and
by 1992 all British architects who are members of the RIBA, will be affected by the concept of
continuing professional development (CPD).

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The British construction related professions have adopted the following formal definition of life-long
learning:
“The systematic maintenance, improvement and broadening of knowledge and skill and the
development of personal qualities necessary for the execution of professional and technical duties
throughout the practitioner’s working life.”
Such a definition has been adopted because it encourages a more coherent approach to continuing
professional development. It also emphasises, to the employer as well as to the individual
practitioner, just how important CPD is, and it acts as a catalyst to educational institutions and other
course providers, to organise events specifically for qualified practitioners.
3 Attitudes of architects and other construction related professionals to CPD
In 1987 the RIBA participated in a survey to determine, among other things, attitudes to CPD within
the construction related professions. Nearly 500 people, chosen at random and working in the
construction industry, were invited to participate in the survey. Rather more than half the sample
were architects and architectural students in practical training. The remainder were architectural
technicians and other professionals.
The survey revealed that the majority of the sample were already participating, to some extent in
CPD. It was also generally believed that CPD was “…a good ting…” and it was generally considered
that the status of their professions could only be enhanced by participating in CPD.
However, there was some difficulty in reconciling a willingness to participate in CPD with an ability to
do so in practice, lack of time was seen as the main constraint.
4 Methods of delivering CPD
In 1984 the British government asked the Manpower Services Commission to lead a campaign to
raise awareness of, and influence attitudes towards, adult training amongst employers, training
providers and individuals. The campaign was launched because research had demonstrated to the
government that:
• high business performance was strongly and positively associated with high levels of adult
training.
• many employers regarded training as an unwelcome cost and seemed unaware of the benefits
training could bring to their organisations
• generally the providers of training, including educational institutions, did not respond flexibly
enough to meet the needs of employers and individuals

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• individuals often failed to appreciate the benefits training could bring to them, especially during
periods of change.
One element of this campaign was the creation, in 1983, of an Open Tech Programme, funded until
the spring of 1987 by the Manpower Services Commission as part of the government’s adult training
strategy. There are many ways of delivering CPD but the main purpose of this programme was to
expand the range and flexibility of training opportunities available to adults.
Within this programme the principal characteristics of an open learning approach to continuing
education were considered as:
• Providing an opportunity to learn at a pace, time and place which satisfies the user’s and the
employer’s circumstances and requirements
• reducing or removing barriers of access to education and training and to progress through
education and training programmes
• offering a choice of content to suit individual needs.
The British government favoured an open learning approach because:
• it was project based, and individual development projects with defined and acceptable objectives
would be funded for an initial development period
• it was collaborative and involved the working together of employers, educational institutions,
industrial training boards, employer’s associations and professional institutions
• it was vocational and therefore was an employer-led activity.
5 Attitudes of architects and other construction related professionals to open learning:
The 1987 survey indicated that four out of five construction professionals were interested in the
concept of open learning as a way of undertaking CPD. The flexibility of open learning was very
much liked, particularly because it provided flexibility of time and venue.
Open learning emerged from the survey as a more popular way of undertaking CPD than the more
“traditional’’ ways of educating qualified architects. There is, therefore, a large potential market in
Britain for open learning materials which are suitable for use by architects in practice and by
architectural students in practical training. Turning this large potential market into an effective open
learning programme is a challenge which now faces the RIBA and the other construction related
professional institutions.

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6 Two examples of open learning projects associated with the British construction
industry
Since 1983 the author has been involved in the design and implementation of two open learning
projects within the British construction industry
6.1 The Site Management Open Tech Scheme
This was one of the first construction related open learning projects to receive government funding.
The scheme is linked with membership of the Chartered Institute of Building and registration is open
to all who are more than 23 years of age with at least two years of general construction site
supervisory experience. The scheme is sub divided into two stages:
A certificate programme, launched in 1986, in which a registered user selects 80 learning packages,
in sets of 10, from the following modules of which the first six are compulsory. There are some 20
packages in each module and this gives a wide range of choice.
Industry and management
Communications I
Industrial relations and employment conditions
Safety, health and welfare
Contractual procedures
Planning and organisation
Productivity techniques
Management planning techniques
Services—technical
Levelling and setting-out
A diploma programme, launched in January 1990, in which a registered user selects a further 80
packages, also in sets of 10, from the following modules of which the first six are compulsory. Again
there are approximately 20 packages in each module from which to make a selection.
Introduction to economics and cost control
Legal responsibilities
Communications II
Quality control
Estimating and quantity surveying
Personnel and industrial relations
Working with people
Services management
Maintenance management
Registered users of this scheme are provided with:
• a tutor led profiling exercise to establish principal areas of interest and to assist in the selection of
appropriate learning packages

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• programmed delivery of the selected learning packages
• tutorial support throughout the study programme
• assignments linked with each module assessed by tutors
• a range of short residential workshops linked with each phase of the programme
Non registered users may buy any number of packages for their own use but receive no additional
support services.
The construction industry provides financial support for those:
• who are employed in companies who pay levy to the Construction Industry Training Board
• who are registered users
• who apply for financial support before embarking on an open learning programme
6.2 The RIBA Open Learning Programme
The RIBA Open Learning programme was launched in October 1989 with the publication of 46
packages associated with four topic areas as follows
Total project management
Architectural practice management
Building contract procedures, claims and arbitration
Building law, statutory requirements and legal responsibilities
The packages possess the following common features:
• subject matter presented in a way that is suitable for use by architects at work and by
architectural students in practical training
• self assessment exercises supported by yardstick answers
• practice based assignments, so that users can relate the contents of each package to their own
organisational and practice needs
• further study opportunities so that users can extend their interests in the subject matter beyond
the limits of each package.
The packages have been prepared so that they are easy to enhance and update and new or
enhanced packages have been added since the scheme was launched in 1989. One new topic area,
in “practice exposure to liabilities, legal and insurance issues”, has been added through external
sponsorship, and new topic areas in lighting, the use of steel in architectural design—which has
received external sponsorship—and in conservation are proposed.

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The RIBA open learning packages have been prepared for use:
• in the larger architectural practices which have their own CPD programmes and programme
organisers and which provide established programmes for architectural students in practical
training
• in the RIBA’s CPD regional centres as part of a nationwide network of CPD provisions
• in the recognised schools of architecture as part of the range of provisions available for
architectural students in practical training and as part of the recognised schools’ contribution to
CPD and continuing education
• as part preparation for the RIBA’s own examinations
7 The role of the tutor in open learning programmes
Open learning programmes do not make tutors redundant. There are several key tutorial functions
that are necessary to make open learning successful. These include:
• pre-course counselling; open learning programmes are not suitable for everyone and there is a
crucial role for the tutor to see that all potential users have the clearest possible picture of what is
involved
• induction programmes; it is important that all open learning users make a successful start to their
study programmes and the tutor may need to plan special induction programmes, particularly for
those who have been away from structured learning for some time, so that users quickly become
familiar with study methods
• on-line help and workshops; most open learning programmes provide for the users to have access
to selected tutors by telephone or though regular tutorials or workshops
• selecting and marking assignments; tutorial guidance may be required in the selection of
appropriate assignments and with the feed-back of results
• further study opportunities; many tutors become involved in discussions about the content and
directions of further study.
8 Basic issues that arise from the development of open learning programmes
Open learning programmes provide:
• opportunities for sharing professional experience—writing open learning packages is a very real
contribution to continuing education and CPD

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• a means for disseminating knowledge regarding the more rapidly changing components of
professional practice—the relevance and contents of topic areas and individual packages can be
monitored
• opportunities for real collaboration between practitioners from different professions—several of the
topic areas in the RIBA programmes have required considerable collaboration between members of
different professions
• opportunities for more effective links to be developed between employers and professional and
educational institutions—already some of the larger architectural practices have embedded open
learning into their staff development programmes.
Open learning programmes need
• regular and continuing financial support from sources other than the income from sales—external
sponsorship and the continual support of the professions through their education and CPD budgets
are essential
• continued publicity and marketing so that practitioners are kept informed of new developments—if
individual practitioners are to be encouraged to plan and implement part of their own professional
development then they must know what opportunities are available to them
• regular and continued updating and enhancement—otherwise packages and topic areas will
become dated and of limited value
• support mechanisms, such as user groups and tutors, are required so that packages can be
incorporated into many different types of learning experience.
9 Some crucial concerns associated with the use of open learning within CPD
programmes
There is an obvious conflict between the interests and needs of collaborative CPD programme and
the interests and needs of individual practitioners. This conflict can be resolved by having a wide
variety of CPD providers including employers, professional institutions, educational establishments
and others working separately and in collaboration.
There is also a need for a wide range of CPD opportunities so that individuals can construct learning
programmes that are relevant to their current needs and interests and to their future aspirations.
Most busy practitioners in mid career need some help with the design and implementation of their
CPD programmes. There will be a growing need for CPD counsellors, facilitators and tutors who are
used to working with people in mid career.

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At present CPD activities are grossly under funded and under resourced. Therefore participation in
CPD tends to be inadequately supported, fragmented and uncoordinated. All participants—employers,
professional institutions, educational institutions and individuals—will need to invest much more in
CPD than is currently envisaged for it to be successful.
10 References
Ball C (1990) More Means Different—widening access to higher education, Royal Society of Arts,
London
Clark A, Costello M, Wright T (1986) The Role and Tasks of Tutors in Open Learning Systems,
Industrial Training Research Unit, Cambridge.
RIBA Market Research Unit (1987) Open Learning in British Architectural Practice—a market
survey, RIBA for the Construction Industry Training Board, London.

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CHAPTER EIGHT
‘There is one psychological peculiarity in the human being that always strikes one: to shun even the
slightest signs of trouble on the outer edge of your existence at times of well-being… to try not to
know about the sufferings of others and your own or one’s own future sufferings, to yield in many
situations, even important spiritual and central ones—as long as it prolongs one’s well-being.
Alexander I.Solzhenitsyn

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Managing change within the professional firm
P.Barrett
University of Salford, UK
Abstract
Change is a pervasive fact for the professional firm. This paper considers the positive and negative
aspects of change. Ultimately a balanced view is suggested, although in the current climate it seems
inevitable that firms should be open to change.
The driving forces for change and the factors that can be changed within the firm, namely: structure,
technology and people, are considered with particular emphasis on people. It is argued that it is
important to view change as a process rather than an event. Continued effort is required.
Keywords: Professional firm, construction, change, management.
1 What is Changing?
Professional firms in general, and those involved in construction in particular, have faced
unprecedented change over the last decade and the rate of change appears to be accelerating
towards the end of the millennium.
Major structural changes can be seen occurring in three main areas: the markets for professional
services, the nature of client demand and, lastly, developments in information technology.
1.1 Change in Markets
A whole range of factors within the environment of the professional firm have changed over the last
twenty years in such a way that the combined effect has been to push professional firms away from
their traditional modes of operating towards a more business like approach. This is summarised in
the force field analysis below.
In addition, there is the breaking down of trade barriers between the domestic U.K. economy and the
remainder of Western Europe from the beginning of 1993.

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Fig. 1: Forcefield analysis of contextual changes over the last twenty years (Barrett 1991a).
As the Lay Report (RICS, 1991) points out this will result in our local economy becoming a one
twelfth part of a much larger economic system. This particularly noticeable change is in fact part of a
trend towards globalisation and business with the EFTA countries is already building and so too are
relationships with Eastern European countries as they move towards market economies.
1.2 Change in Client Demand
It is well known that many of the features of the “traditional” approach to construction used in the
British construction industry can be traced back 100 years, and in some instances still further to the
time of the Guilds. For all that, there have been significant changes over the last twenty years and
many alternative procurement systems now available. This process of services being created,
developing and then declining has been identified in the service management literature in terms of
service cycles (eg Sibson, 1971; Webb, 1982; Foster, 1986).
This view stresses that the longevity of existing services cannot be taken for granted and
professional firms, if they are to survive in the longer term, need a marketing orientation which
makes them sensitive to changing client demands.

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One major identifiable trend is the increasing demand for professional advice which takes a
particularly broad view.
This is evidenced in the rise of the project manager in the case of construction and, in this author’s
view, a similar trend is emerging in relation to the use and adaptation of existing buildings as
exemplified by the emerging discipline of the facilities manager.
Both trends imply a move towards a broad and balanced “world view” (W) of the issues involved.
These trends are depicted Fig. 2 below, where the ‘‘construction system” and “client system” meet in
the briefing process.
Figure 2: A holistic view of the briefing process (Barrett, 1991b)

In addition to these specific trends a demand for a broader view can also be seen in the increasing
demand for construction professionals to take account of the environmental impact of their choices.
This involves, among other things, the appearance of a building, the choice of materials, the energy
performance and the quality of life that the building provides its occupiers.
1.3 Changes in Information Technology
There have been rapid advances in the availability of information technology which pose both threats
and opportunities to the construction professions. On the one hand there is the danger that the
professions will become deskilled as information technology makes expertise more widely available,
possibly through

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expert systems.
On the other hand the same technology holds out the possibility for firms to greatly enhance the
quality of the services they have to offer. In addition information technology can give firms great
flexibility in terms of work patterns along with dimensions of time, place and content. Gone are the
days when dictation to a short-hand typist took place in one’s office and any corrections that had to
be made demanded retyping. Now professionals can dictate work, make phone calls or link up with
computers almost anywhere, leave work to be done by others at different times and very quickly
manipulate existing documents by moving text, etc around. Thus, work can be made to fit in with
the workers and quick accurate responses to client’s request can be provided.
1.4 Summary
From the above it should be clear that the claim that the construction professionals are facing
unprecedented change was not made lightly. In all of the above instances the changes are already
upon us and affecting more and more firms within the industry.
The one factor which has not been mentioned so far is that of “people”, that is, the individuals
involved in the construction professions. The remainder of this paper will consider the effect of major
changes on the people involved.
People cannot be seen as a side-issue if Lewin’s (1947) suggestion is taken seriously, that if you dig
deep enough into any problem you will come eventually to people! There is no point in firms making
grand plans for change if they do not give equally serious consideration to how to manage the
change process within their organisation. No change process is easy. It may appear blatantly obvious
to the proponents, but it is likely to appear just as unreasonable to many of those affected. As a
result the process is rarely comfortable.
The following sections will look at the reasons for resistance to change, techniques for overcoming
that resistance and a model for producing lasting change. Lastly, the value of change compared with
stability will be considered.
2 Resistance to Change
2.1 Levels of change
In managerial terms, although attitudes are interesting, it is behaviour, or people’s actions, that
matter in the end. Much of the resistance to change goes unnoticed because it is assumed that once
a person is persuaded of the correctness of a point of view that they will in fact then change their
behaviour as well. The process is more complex than this and Fig. 3 below shows the stages, from
the changing of the person’s knowledge base, which in time will have an impact on his or her
attitudes and eventually result in changed behaviour patterns, provided peer pressure can be
overcome.

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Fig. 3: Changing behaviour as well as knowledge Kast and Rosenzweig (1978).

The effects of the model can be seen in the professions’ response to computers. Initially people
would readily admit that computers could lead to greater efficiency but still tended to have a
negative attitude towards them. Slowly this attitude has changed as home computers have become
the norm and it is now commonplace to find individuals within practices who are very willing to use
computers to support their work, but it may be that in a (rapidly decreasing) number of practices the
norms within the practice are still inclined towards hand drafting and so the individuals willingness is
contained.
2.2 Social Resistance
The above model argues for a sustained approach to managing change which goes beyond merely
winning the argument. A key stage in the process is to overcome group pressure which should not
be underestimated. In the past many firms in different disciplines have sent individuals away on
courses to change their attitudes and skills. When they have returned to the parent organisation it is
common experience that they had little impact on the organisation as a whole (Argyris, 1962).
A measure of the potency of group pressure was provided by experiments carried out by Solomon
Asch (1955) in which he created a situation where an individual being tested was put in a group of
other people who had been told beforehand to give the incorrect answer to a very simple question
which involved comparing lengths of lines on cards. The answers were patently obvious, and, on
their own, the guinea pigs made no mistakes. When one other person was involved giving an
incorrect answer it made no difference, but when in a group of three 14% of the “guinea pigs” gave
the wrong answer to be in line with the

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other group members. In groups of four this went up to 32%. Those who did not fit in with the
“group norm”, that is the incorrect response, exhibited extreme signs of discomfort with sweating
and stammering etc.
2.3 Conservatism
Another source of resistance to change has been termed “dynamic conservatism”, which reflects the
energy and innovation some people will put into maintaining the status quo. This is confirmed by
Lansley (1985) who found that research is only well received by the construction industry if its
suggestions are: familiar, focussed, self-contained and backed by people/bodies of high standing. Not
a recipe for rampant innovation!
To a great extent this will be founded on sunk costs, that is the investment people have made in the
past to produce the status quo. For instance, continuing our example of the use of computers, if
individuals have developed hand drafting skills to a high degree then it is only natural that they
should resist moves that will make this skill irrelevant. Similar arguments can apply to changes in
structure where senior personnel with great power will be unlikely to support changes that will
reduce their significance in the organisation of the future.
In addition to the above potential losses against past investments there is the question of costs
attached to introducing further changes within an organisation.
Many of the adverse reactions to change will be rooted in a fear of the unknown and Fig 4 below
gives a view on related changes in learning, confidence/confusion and anxiety springing from the
introduction of change.
Fig. 4: Impact of Change on Confidence, Confusion and Anxiety (based on Newman, 1975)

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It can be seen that confusion and anxiety are likely to be high initially and decline as the learning
curve rises. The diagram suggests that confidence will also be high initially, on the assumption that
those involved thought the change was a good idea, but as time goes on the full implications will be
realised and the discomfort felt will undermine confidence although it is anticipated that it will begin
to rise again after a time.
2.4 Summary
The consistent message is that the change process must receive a sustained effort, over time, if it is
to be successfully achieved. There is no point in saying ‘‘but you agreed to it, why are you backing
out now?” It is better to be ready for this sort of development and to react positively to it.
It is important to appreciate the very real and potent resistance that there will often be to any
change proposed. There is no point in just being right. It is necessary to overcome the resistance
through a sustained effort if the initiative is to be successful. The next section considers alternative
approaches to overcoming any resistance to change.
3 Overcoming Resistance to Change
Various facets will be considered: communication, involvement and power.
3.1 Communications
Clear communications are essential if the process of change is not to be blocked by
misunderstandings. Those managing change need to (Adair, 1973):
reinforce their message through repetition and using different media;
code the message in terms, and using terms, that the receipients can readily understand;
seek feedback and tailor the approach used to match the needs of those subject to change.
Canter (1983) stresses the importance of how a change is presented. She advises “change agents” to
define initiatives in ways that make them sound: triable, reversible, divisible, concrete, familiar,
congruent (with the rest of the organisation) and sexy.
3.2 Involvement
The question of involvement is important (Vroom, 1974). There are two main facets to this issue:
knowledge and commitment. For simple problems, straightforward changes, the manager can simply
make a decision on his own, but although this would meet the knowledge criterion, it would not
create

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commitment. This may not matter if a firm decides to share an accountant with another firm in the
same building, but if the everyday work of the firm is implicated, say by moving office location, then
it would be well to involve staff, if only to increase the chances of gaining their commitment.
For complex, difficult changes, such as those typically produced by strategic planning exercises, it is
wise to involve more people in order to create a greater pool of knowledge. It would be dangerous
for an individual, or small group, to produce a solution alone. In addition to knowledge there is the
additional benefit to be had from bringing a range problem-solving approaches to an issue (Belbin,
1983; Powell, 1991).
Obviously there is a cost attached to involving more people, but the potential benefits are rigour and
commitment.
3.3 Power
However good a proposed change, however well presented, there is still likely to be a need to
persuade some people. This introduces power as an important factor Handy (198?) has suggested a
continuum which could be said to range from “nice” to “nasty”. He suggests that power is based on:
personality (charisma), expertise, position, resource control or, lastly, physical threats. In managing a
change process it is clearly better to use “nice’’ power sources first and “nasty” bases only if actually
essential if longterm, self-maintaining change is desired. The less explicit the persuasion the more
effective it can be. For instance, if greater team working is desired, arranging the spaces in the office
to facilitate this is much more likely to succeed than telling or asking people to work in teams. Handy
(1985) terms this managing the ecology of the organisation.
3.4 Summary
The above considerations are all important factors in achieving change. It is also desirable for
changes to self-maintaining if at all possible. The next section will look at this aspect in more detail.
4 Achieving lasting change
The classic model in this area is the three stage model proposed by Lewin (1947)
unfreeze
change
refreeze
This model explicitly acknowledges the importance of making efforts before and after the change to
achieve lasting results.

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4.1 Unfreezing
The unfreezing stage is intended to prepare people for the change by breaking down their fixed
views of the existing situation. Management consultants generally insist on a client survey which can
provide a potent basis for change by undermining any complacency in the firm being studied.
Similarly, a post occupancy evaluation of a building designed could be an effective way of persuading
a design team that it should reconsider its approach.
The actions to unfreeze can be pleasant, such as removing to a country club to allow free thinking
away from the office. They can be very unpleasant, such as sacking key people in the existing
organisation, or bringing into disrepute the opinions of key opponents of the proposed change
(Johnson, 1990).
4.3 Changing
In the actual change phase, symbolic actions and positive reinforcement are important. Johnson
(1990) stresses various ways in which symbolic actions can make a massive difference. In one local
authority the Chief Executive sat at the reception desk for an hour every Monday morning and dealt
with the public to show the importantance he attached to a customer care initiative. Stories like
these circulate the organisation and are very persuasive. At the other extreme, if there is any hint
that top management is not fully behind a proposal it is almost certain to fail. The difficulty faced by
managers is to:
…communicate meaning and vision in symbolic ways which relate to the ‘mundane’ reality of those in
the organisation. (Johnson, 1990)
This has been one of the problems facing quality assurance. Partners can present it in a visionary
way, but very often trivial procedures have simply not made sense to those doing the day-to-day
work.
Positive feedback is also crucial to the process. Again drawing from experience in QA, the Norwegian
Building Research Institute specifically looks for solutions to problems the firms identify in order to
create quick gains in the initial stages of implementation. In this way enthusiasm for the process can
be generated within the firms. Once this has been achieved a move is made on the overall system
design.
4.4 Refreezing
If people have been involved in the change process and feel ownership it is quite possible that, at an
individual level, the new norms and behaviour patterns will be internalised with no problems. At the
organisational level there are two areas at which action can be taken to reinforce the changes:
structure and technology.
In terms of structure the challenge is to move from a task force mentality to a “business as usual”
frame of mind. However the firm is structured it should reflect the new mode of operating and the
key personnel should be very carefully chosen to ensure that the momentum is maintained. Here the
issue of “sunk

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costs” can be used to advantage. People who have invested a lot of time and energy in a change
process are hardly likely to allow it to wither.
The technology developed, such as procedures and sources of encoded knowledge, again should be
carefully set up to reinforce rather than undermine the change. This and the structure are key areas
where the ecology of the firm can be designed to support and maintain the new social processes
created by the change process.
5 Alternative approaches
5.1 Change v stability
So far the forces for change and positive ways to react have been stressed, but is change a “good
thing”? Should it be accepted unquestioningly or treated with caution?
Some writers (eg Hurst, 1984) have argued that change is intrinsically good for organisations and
have described firms that purposefully create turbulence in order to keep things fresh and dynamic.
At the other extreme, it has already been indicated that it is quite normal for change to be resisted.
Louis and Sutton (1991) treat this issue in terms of how people think. They contrast ‘‘active thinking”
with “habits of mind” and observe that the former are often thought to be better, per se. In contrast
they take a contingency approach and acknowledge that for much of the time, for “business as
usual”, habits of mind are appropriate, whereas in conditions of novelty, discrepancy or for a
deliberate initiative, active thinking is required. Their analysis focuses particularly on “switching
cognitive gears” between the two modes and they suggest various barriers to switching from the
automatic to the conscious mode of thinking. For example:
If the firm has rigid norms and values;
If the firm has experienced extended periods of success;
If the stimulus for change is minor or massive (not in between), “threat-rigidity effects” can
operate in latter case;
If the required change is not incremental, but demands “double loop learning” (Argyris and Schon,
1978).
The authors argue that individuals need to be adept at both modes of thinking and that possibly the
most important thing is to “…improve one’s capacity to read the situation…” so that the need to
change one’s approach is recognised. There is a danger that just when an organisation needs to
change most it will be least able to.
5.2 Formal v informal approaches
A further issue is whether change should be formally planned or just allowed to happen. There has
been a backlash against formal strategic management, for

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instance, rooted to an extent in studies of how effective managers work in practice, where a strong
emphasis on informal measures has been identified (eg Mintzberg, 1973). Kotter (1982) has
suggested that under conditions of uncertainty and dealing with a lot of people, managers need to
develop personal “multifaceted agendas” which they seek to achieve through “networks” of people
which are not based at all on formal hierchies and span many organisations. This approach is not
instead of the organisation’s formal plans, but operates in parallel with them, at the individual level of
key decision-makers.
This complementary relationship between formal plans and what is really pursued is analysed by
Dadfar and Gustavsson (1989) who summarise this aspect showing how the planned strategy is
moderated by interpretation and incremental, day-to-day influences which together result in the
actual strategy pursued (based on Mintzberg and Waters, 1985, p258).
5.3 Summary
It would be wrong to try to label “change” good or bad. It is appropriate in some circumstances and
simply a distraction in others. Similarly formal change is not better or worse than informal
approaches. They each have their place. Thus, sensitivity is needed to identify when change is
required and then to choose, or facilitate, the appropriate way to effect it, probably involving some
combination of formal and informal mechanisms.
6 Summary and Conclusion
Professional firms involved in construction are facing unprecedented rates of change in their
environment. This demands a reaction, but change within the firm is often resisted. Overcoming this
resistance is greatly aided by viewing change as a process, not an event. Further to achieve lasting
change attention must be paid to preparing the ground and, afterwards, reinforcing the change.
Change within the professional firm is not good or bad per se, but in the turbulent environment
currently faced it is likely to be appropriate. Given the conservative natureof the construction
industry concerted effots are required to successfully achieve changes and formal and informal
mechanisms should be used in a complementary way.
7 References
Adair, J 1973, Training for Communication, Gower, London
Argyris, C, 1962, Interpersonal Competence and Organisational Effectiveness, Tavistock Publications,
London
Argyris, C and Schon D, 1978, Organisational Learning: A Theory of Action Perspective, Addison
Wesley

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Asch, S, 1955, “Opinions & Social Pressures” Scientific America, November, pp31–35
Barrett, P S, 1991a, Practice Management: An Emerging Discipline, Practice Management: New
Perspectives for the Construction Professional, edited by P S Barrett and A R Males, E & F N Spon,
London pp 3–12
Barrett, P S, 1991b, The Clients Brief: A Holistic View, Management, Quality and Economics and
Building, edited by A Bezelga and P Brandon, E & F Spon, London, pp 3–13
Belbin, R M, 1983, Management Teams: Why they Succeed or Fail, London, Heinemann
Canter, R M, 1983, The Change Masters: Corporate Entrepreneurs at Work, George Allen and Unwin,
London
Dadfar, H and P Gustavsson, 1989, Organisation, Environment and Strategy Part 2: Strategy and
Strategic Decision, Working Paper 28, Umea University, Sweden
Hurst, D K, 1984, Of Boxes, Bubbles and Effective Management, Harvard Business Review, May—
June, pp 78–88
Johnson, G, 1990, Managing Strategic Change: The Role of Symbolic Actions, British Journal of
Management, Vol 1, pp 183–200
Kast, F E and Rosenzweig J E, 1981, Organisation and Management: A Systems and Contingency
Approach, McGraw Hill
Kotter, J P, 1982, What Effective General Managers Really Do, Harvard Business Review, Nov—Dec,
pp 156–67
Lansley, P, 1985, Putting Organisational Research into perspective, Construction Management and
Economics, Vol 3, pp 1–14
Lewin, K, 1947, Frontiers in Group Dynamics, Human Relations, I, No 1, June, pp 5–41
Louis, M R and R I Sutton, 1991, Switching Cogniture Gears: From Habits of Mind to Active Thinking,
Human Relations, Vol 44, No 1
Mintzberg, H, 1973, The Nature of Managerial Work, Harper and Row
Mintzberg, H and J A Walters, 1985, Of Strategies Deliberate and Emergent, Strategic Management
Journal, Vol 6/3, pp 257–272
Newman, W H, 1975, Constructive Control, Prentice-Hall, N.J.
Powell, J A, 1991, Clients, designers and contractors: the harmony of able design teams, Practice
Management: New Perspectives for the Construction Professional., pp 137–148
RICS, 1991, Market Requirements of the Profession, RICS, London
Sibson R E, 1971, Managing Professional Services Enterprises; The Neglected Frontier, Pitman, New
York
Vroom, V H, 1974, A New Look at Managerial Decision Making, Organisational Dynamics, Vol 15

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The impact of cyclical trends on human resource requirements
J.Sommerville
Glasgow College of Building & Printing, Glasgow, Scotland, UK
Abstract
This paper discusses the cyclical nature of the construction industry in the U.K., the influences which
may be perceived to act upon the industry and the ramifications in terms of human resource
requirements brought about by the cyclical trends highlighted. Consideration is given to historical
trends and the prediction of future industry workload. Strategic options available to management
when seeking to source human resources are reviewed along with the efficacy of the various sources
of referral utilised. The cyclical nature of the industry is clearly shown and management’s attention is
focused on key issues arising therefrom.
Keywords: Cyclical trends, Human Resources, Strategies, Referral Sources, Workload.
1 Introduction
The U.K. Construction Industry within which Architecture plays a vital role is beset by periods of rapid
expansion or contraction. Many influences are seen to act upon the industry, some with beneficial
effect, others with negative consequences, many will be well aware of the impact Royalty may have
and also first hand experience of pressure groups. Each of the miriad of influencing forces will have
impact upon the industry and modify its response to opportunities or threats. Those charged with the
task of executing hard won contracts, be they design or construction, are faced with the challenge of
ensuring that the requisite human resources are available as and when required, and with the
appropriate basket of skills.
Experiences from within this industry and others, have shown the need to adopt longer term
frameworks when considering human resource requirements and provision. Short termism is fine for
the financial institutions who rely on “quick kills’’ to provide their income or growth but this industry,
by its very nature, demands that lead and lag periods be an integral part of the overall process.

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2 Cyclical Trends
Throughout the history of the modern U.K. construction industry booms and recessions have come
and gone with alarming frequency. Parry Lewis (1965) in his painstaking analysis of the industry from
1700 through to 1963, clearly demonstrated the existence of a cyclical nature to the industry. The
cyclical trends highlighted were found to be subject to influence from several major factors, namely:
population fluctuations;
shocks such as war;
credit.
The more important of these factors for the present period is of course credit, its availability and
associated interest payment rates.
Successive Governments of varying political persuasions have sought to control the nation’s growing
inflation rate though restraining the provision of the built environment and hence the construction
industry. More specifically the housing sector with its associated rise in capital values and hence
perceived disposable wealth, have been targeted for special attention. Witness the present recession
in the industry, primarily seen as being induced and driven by high interest rates. The view is held
that whilst there has no doubt been a downturn in output from the early part of 1989 onwards,
historically, and hence in cyclical terms, the downturn is perhaps best seen as a ‘blip on the graph’.
Annual construction outputs for the UK at constant 1985 prices are shown in Table 1.
Table 1. Annual output values
Year Output Value in £ Millions Year Output Value in £ Millions
1963 24456 1977 26713
1964 27309 1978 28747
1965 28801 1979 29178
1966 29361 1980 27830
1967 31278 1981 25141
1968 31959 1982 25470
1969 31661 1983 26647
1970 30986 1984 27536
1971 31364 1985 27850
1972 31957 1986 28757
1973 32267 1987 31022
1974 28965 1988 33269
1975 27266 1989 34684
1976 26842 1990 35037

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Analysis of the data clearly demonstrates the expansions in output, followed by the downturns which
in turn are followed by a resurgence in output value. The period of 1963 through to 1968 saw a
surge which was deemed inflationary and slowly brought back into line by use of the interest
control stick. The resulting decline being shortlived and the boom continuing throughout the period
1971–1973. Many industry watchers will recall the ‘crashes’ of that period and the resulting collapsing
organisations (RICS 1978). Similar cycles may be discerned for the periods from 1978–1982 and
1983–1990. Since we have had no major shock nor population fluctuation from 1963 onwards, then
the principle influence which may be seen to be at work in the industry is that of credit and interest
rates.
Correlation of year end interest rates with the value of construction output clearly demonstrates the
effect interest rate has on the industry’s output value. This relationship is illustrated in Figure 1 and
Table 2. Analysis of this data shows that there is a correlation* with r0.09 when the output for each
year is considered, which in reality is not what would happen since the interest rate increase will take
some time to filter down through the various forms of operating mechanism; when a lag of 1 year is
introduced into the calculations we see the value change to r= –0.219, this would in practical terms
be a reasonable period within which we would expect to see some form of repercussion; and, if a
two year lag is considered, then the value of r increases significantly to –0.387. Clearly demonstrating
that interest rate does have a negative correlation with output values. The variability for this value of
r shows that some 15% of the downturn in the value of output is directly attributable to the interest
rate.
The Economists will no doubt point to the Accelerator and Multipier Principles when seeking to
establish the clear link to cyclical trends and the swings in demand which the industry must take
onboard.
The sample size given consideration within the analysis is, in statistical terms, considered to be small
i.e. n is less than 30. None the less it serves to highlight the underlying cyclical nature to the
industry. No doubt greater analysis over a wider timebase would provide a clearer picture of the
emerging trends and correlations.
* Values for the periods considered are:
no time lag, r=0.09, S.D. interest rate=2.748, S.D. output=2749.449; 1 year lag, r=–0.219, S.D.
interst rate =2.688, S.D. output=2629.082 and for 2years time lag, r=– 0.387, S.D. interest
rate=2.613, S.D. output=2641.406.

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Figure 1
Table 2 Annual output value -v- Interest Rate
Year (%) * Year (%) *
Int. Rate Output Int.Rate Output
1963 6.000 24456 1977 9.500 26713
1964 6.000 27309 1978 11.750 28747
1965 6.750 28801 1979 15.000 29178
1966 7.125 29361 1980 14.000 27830
1967 7.125 31278 1981 15.000 25141
1968 7.625 31959 1982 10.000 25470
1969 8.500 31661 1983 11.250 26647
1970 8.500 30986 1984 12.000 27536
1971 8.000 31364 1985 12.750 27850
1972 8.500 31957 1986 12.300 28757
1973 11.000 32267 1987 10.300 31022
1974 11.000 28965 1988 12.750 33269
1975 11.000 27266 1989 14.500 34684
1976 12.250 26842 1990 14.500 35037
* £ Million constant 1985 prices, seasonally adjusted

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3 Human Resources
Allowing for present high interest rates, it may be forecast that the next major swing upwards in the
industry is not far off. Latham (1991) suggests sound reasons for believing that the tide has turned
for certain sectors of the industry, “I believe that all the economic jigsaw pieces are in place for a
significant improvement in sales”, “Interest rates have been cut substantially, further falls are
imminent”. Support for these statements is provided by Hewes (1991) who sees the slump as being
primarily related to the housebuilding and property sectors, with the other sectors escaping relatively
unscathed. When the next surge does arrive many of the problems witnessed in the early-mid
eighties will rear their ugly heads once again.
How many still recall trying to secure Technicians or a squad of bricklayers in London, at the peak of
the surge? At what cost?
During the last boom many industry participants were only too well aware of the shortages of skilled
human resources in particular geographic, as well as skill areas. Now that the ‘perceived’ downturn is
upon us the ‘‘Demographic Timebomb” seems to have dematerialised. Has it been a case of “Beam
them up Spock”?
Employers seeking to recruit in the next rising current will be faced with several problem areas:
i) Pressure on management to secure the requisite skills and skilled personnel,
ii) Induced stress on existing staff.
iii) Increased recruitment costs.
iv) Restrictions on business take-up, through lack of Human Resources.
Management within the organisation will encounter many others in the market-place, all seeking to
recruit suitable personnel. Competition will be fierce and therefore new, and novel strategies will
have to be implemented in order to secure precious human resources, all of these activities
demanding much of the manager’s valuable time.
Existing staff who have remained loyal to the organisation (or have been retained) will face a two
pronged attack: the newcomers will perhaps command higher salaries or benefits packages in order
to induce them into joining and the existing cohort will certainly have had to shoulder a fairly
substantial workload to enable the “lean and fit” organisation to survive the downturn.
The search for human resources at a time when others are trying to remove the same fish from the
pool demands that the recruitment methodology selected is fast, accurate, reliable and cost effective.

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The much heralded “Golden Hellos” of the city whizz-kids may well have to be applied to the
industry’s prima-donnas.
Much work will be put into winning tenders, but when it comes to executing the contract, human
resources are everything—organisations basically comprise two components: people and jobs.
3.1 Strategic Options
Underlying and compounding the problem areas will be the reduction in the number of school
leavers, coupled with the poor overall image of the industry. The poor image is demonstratively
illustrated in the CITB Survey (1988) considering the occupational choices of school leavers.
The astute professional manager will of course be developing a full battery of strategic options to be
implemented just prior to the upturn commencing. Likely options are illustrated in Figure 2, the
majority of which may well have been exercised in the past and proven to be either acceptable
strategies or those which have only short term effectiveness. Key areas associated with each of the
strategic options available have been illustrated for further thought and consideration.
Figure 2 Strategic Options

3.2 Referral Sources
Gannon (1971) in his pioneering work considered the sources of referral utilised by one organisation
and clearly demonstrated the link between length of employee service and the particular referral
source.
If the employee is to be recruited and the associated costs are taken on board by the organisation,
then it seems only logical that there should be a reasonable expectation of a considerable service
period from the new recruit.
A variety of the recruitment referral sources open to management are illustrated in Figure 3. Whilst
being indicative of the prevalent sources, Figure 3 is by no means exhaustive.

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Figure 3 Referral Sources

Consideration of the referral sources utilised may well highlight those sources which are predictive of
stable employees and also show where cost savings may be implemented i.e. why advertise if word
of mouth is more productive and beneficial.
4.0 Workload
There can be little doubt that the upturn is coming, careful analysis of the impending industry
workload, and consideration of the cyclical trends, clearly indicates that the next surge may be even
greater in monetary terms than the last boom. The trends demonstrated by the analysis of the
cyclical data clearly indicate that with interest rates falling, then the knock-on effect will begin to
emerge. The effects may not be immense in the first year, but certainly by year two of the reduced
rates, we should see a rise in the workload. The Accelerator and Multiplier effects should have begun
to show through the system and work in-hand, and proposed, will perhaps have increased
dramatically.
Potential work areas include:
The developing second wave in the North Sea Oil Areas.
Harmonisation with Europe on 1st January 1992.
The general need to upgrade the infrastructure within the UK, especially in light of EC Directives.
Expansion of the UK Industrial and housing sectors.
The potentially massive workload in the Middle East and ex-Soviet bloc satellites.

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5 Conclusions
To secure and train the necessary human resources demands that time, effort, resources, and
managerial expertise are focused on the issue now. Potential employees are immediately available in
the U.K. market place, at what may be seen as discounted prices, waiting for the astute manager to
make them an offer they cannot refuse.
Adoption of strategies with a wider timebase, towards human resources, can only prove beneficial in
the long run. The image of the U.K. industry may be enhanced, the reputaion of certain employers
may also be improved, and certainly the quality of work-life will undergo an injection of surety.
Trying to enter the market place when all others are trying to do the same can only lead to
escalation of costs, reduction in effectiveness and loss of productivity.
6 References
The Construction Industry Training Board (1988) The View of Young People and Their Parents.
Richmond, Surrey.
Gannon, M.J. (1971) Sources of Referral and Employee Turnover. Journal of Applied
Psychology, Vol 55, No. 1 226–228
Hewes, M. (1991) U.K. Construction 1991, Ravensbeck, London
Latham, M. (M.P.) (1991) in Building, 11 Oct 1991, pp25.
Parry Lewis, J. (1965) Building Cycles and Britain’s Growth Macmillan, London.
The Royal Institution of Chartered Surveyors (1978) The Property Boom 1968–1973 and its
collapse. London

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Interdependent group activity in architectural management
R.A.Fraser
Miami University, Oxford, Ohio, USA
Abstract
As size, level of specialization and technology have increased within our organizations, dependence
upon group activity has also increased. In order to get all the facts, to analyze them, to decide and
to act; more than one mind is needed. The question is not whether to use groups, but rather how
and when they can be used most effectively. The major purpose of this paper is to examine
interdependent problem-solving and decision-making activities from two perspectives—the general
case of employee involvement practices and the specific case of ad hoc team activity such as value
engineering. Intelligent use of these approaches requires understanding of the mechanisms by which
they work and the conditions under which they will be most effective. Additionally this paper
discusses some of the operating problems that arise as people work in groups. Ways to reduce such
problems and increase positive effects of assembly are discussed with emphasis on issues of
communication and leadership.
Keywords: Participatory Management, Team Development, Interdependence, Organizational Change,
Personnel.
1 Change in Organizational Management
Leadership of complex organizations has become increasingly difficult due to the dynamic nature of
the marketplace, economic globalization, rampant geopolitical transitions, and major changes in
workforce demographics. Some of the management responses to such changes represent wholesale
adoptions of “packaged” approaches to “new wave” leadership. More often, management shifts are a
function of the cumulative nature of scientific knowledge that leads to constant interpretation and
revision of earlier conclusions. More theoreticians and researchers are studying aspects of
management and organizational behavior now than ever before. As our knowledge accumulates, it is
inevitable that interpretations of people’s behavior will continually change. For this reason, occasional
‘‘fads” in

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management approaches are not necessarily evidence of confusion or lack of commitment; they may
simply reflect the continual search for better management practice.
The changes we are experiencing today in leadership theory and practice go well beyond such
incremental evolution. Present revolutionary views of effective organizational leadership reflect a
major shift from conventional, bureaucratic (transactional) management to a new paradigm of open-
system (transformational) leadership. The bureaucratic model characterized by division of labor,
hierarchy of authority and a framework of rules and impersonality was viewed by the German
sociologist Max Weber as the most rationally efficient form of organization. Fred Taylor’s “scientific
management” improved bureaucratic performance through increased specialization, standardization
and efficiency of job design and training. Paradoxically, Weber’s model with Taylor’s improved
management efficiences has come to symbolize the epitome of inefficiency. The pyramidal structure
and concentration of power common to this form is best suited to stable environments and routine
tasks. With increasing rates of change, bureaucracies are becoming immobilized by their own
structures. Novel decisions must be made at a rate which cannot be met in a rigid hierarchical chain
of command. More and more links in the chain are bypassed and decisions made by specialist staff
members or the workers themselves. Over twenty years ago, Toffler (1970) suggested that “to live,
organizations must cast off those bureaucratic practices that immobilize them, making them less
sensitive and less rapidly responsive to change” (p. 141). In response to external and internal
changes, organizations are beginning to become more dynamic and self-renewing. Rather than the
relatively rigid, tightly organized bureaucratic design; we are experiencing the development of a new
system of temporary “project team” groupings, called “adhocracies’’ by Toffler. Changes in the
designs of our organizations must be accompanied by changes in the ways people experience life at
work if we are to maintain our positions in the world economy. Structures and practices that reduce
the effective utilization of human resources must be eliminated. Simplistic approaches provided in
many “inspirational” management texts tell managers how to search for, be compassionate about, or
even to invent excellence—hopefully in one minute or less. Many of the ideas espoused in such
volumes are not bad ideas, but are less than management personnel will need in order to transform
their organizations and their own behavior. Rather, managers need to carefully analyze the
contingencies impinging on their practice and select from their management repertoire the approach
or approaches that are most appropriate to increase effectiveness of available human resources.

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2 Types of Interdependence
Three forms of interdependence described by J.D. Thompson (1967) can aid the understanding of
employee involvement. The first, pooled interdependence, refers to a social situation in which two or
more individuals render a discrete contribution to the whole, without any direct interaction with one
another. Members are interdependent in the sense that unless each one performs adequately, the
whole group outcome is jeopardized. Failure of any one member threatens the whole group and thus
each of the other parts. Another form, sequential interdependence, refers to a social situation in
which the work of one member must be carried out before the work of another member can be
performed. Sequential interdependence involves pooled attributes with the additional aspects of
direct interrelationship and order of the the relationship. The third form, reciprocal interdependence,
refers to the situation in which the work of each member of the group directly permeates the work
of all other members.
Work groups may be characterized by each of these types of interdependence at one time or
another. For example, in the simultaneous detailing of specific areas within a given design by a
number of detailers we see pooled interdependence. Frequently this type of interrelationship is a
function of one manager who assigns the work to various employees who may not even be aware of
the relatedness of others’ work. Sequential interdependence may take place as the design is handed
off to specification writers and again, when it is passed later to the construction organization. Finally,
reciprocal interdependence, the sort of relationship that occurs in well-managed project teams,
occurs each time that members of the various subgroups meet to “iron out” transition problems.
When we speak of problem-solving and/or decision-making teams, the interdependence is assumed
to be reciprocal. Improved performance can be obtained in any of the relational arrangements
through a variety of intervention techniques.
3 Participation in Decision Making
The call for transformational leadership generally includes aspects of employee empowerment and
heightened employee involvement in decision making. In this approach, bureaucratic hierarchy must
give way to heterarchy; leadership attributes of control and command be replaced by coordination
and communication. Prominent theorists such as Chris Argyris, Warren Bennis and Rensis Likert have
argued that employee participation in decision making is a necessary condition for the attainment of
employee commitment, job satisfaction and overall productivity. Further, Sashkin (1984) asserted
that the use of employee participation is an “ethical imperative.”
On the other hand, researchers such as Edwin Locke

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(1986) assert that participation is simply a managerial technique that, in some situations, can actually
lead to lower employee satisfaction and performance. Overall, meta-analyses of studies of employee
participation provide little evidence that interventions such as increased participatory involvement in
decision-making, in and of themselves, will result in improved performance. Effects of such strategies
as improved benefits, improved goal-setting and feedback to employees, and job enrichment have
been demonstrably superior to participation in decision-making in some studies; especially in those
situations involving pooled or sequential interdependencies. The merits of any given strategy seem to
be realized only when it is judiciously applied in appropriate contexts.
Based on her own research, Rosabeth Moss Kanter suggests that authoritative (nonparticipatory)
decisions are more appropriate when one individual has greater expertise on a subject than any
others, if there is little time available, and if the individuals involved prefer and are capable of
working alone. Kanter’s data also suggest that participatory decisions should be used to develop new
sources of expertise, when individuals are knowledgeable about the decision content, and when there
are conflicting perspectives that need to be addressed. Similar contingencies have been suggested by
Victor Vroom and Andrew Grove. As in Kanter’s discussion, Grove identified the employees’ abilities
(“task-related maturity”) as a key factor in the determination of the efficacy of participatory roles for
employees.
In determining the nature of the participation desired, managers must consider the nature of the task
itself, the nature of the employees, and the context of the task. Many participation efforts are based
on team concepts and require significant organizational commitment. Managers must be willing to
learn new skills and adapt to a role change. They must also be willing to take risks and to trust that
employees will take responsibility for essential aspects of their job. Adequate financial and time
resources must be provided to support team activity.
4 Improving Reciprocal Interdependence
As mentioned earlier, reciprocal interdependence is the structure related to “team’’ activity. Although
the terms are frequently used synonymously, there are important distinctions between a number of
individuals, a group and a team. Group members have a shared sense of identity and of the
objectives they are trying to achieve. Teams have the additional characteristic of having developed
and practiced effective strategies for meeting their objectives. Managed well, teams can combine the
knowledge, skills and experience of many people to reach an optimum solution,

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increase commitment to support group decisions due to cross functional representation from
throughout the organization, and provide for personnel development and opportunities for greater
involvement and visibility of talented team members. If teams are not developed and managed well,
they become a time-consuming, inefficient way to reach less than optimum decisions and poor
solutions.
The effectiveness of the team approach has been clearly demonstrated within a variety of settings
across a wide range of projects. To maximize team synergy, members should be selected from the
major disciplines or functions related to the objective. The effects of group heterogeneity or
homogeneity of some trait on overall group effectiveness have been extensively researched. The
implications of such studies are clear. Heterogeneous, or mixed, groups consistently outperform
homogeneous groups. In setting up a project team, then, it would be appropriate to select
competent individuals with a range of experience, backgrounds, points of view, and talents.
Individual differences are the primary source of the power and potential advantages of group activity.
In addition to adequate expertise and functional representation, we must be careful to select
members with effective interpersonal skills and positive attitudes regarding team activities.
4.1 Stages of Group Development
Before a group can accomplish anything as a group, rather than as a collection of individuals, it
needs to get organized—to orient the group, agree on procedures and norms, and to get the group
moving toward some objective. From the first time members of the group meet, they begin to
develop systematically—to pass through a series of developmental stages, much like individuals
develop psychologically. Groups can become arrested at any stage and not be able to carry on
successfully. It is important to learn what these stages are, and how we can facilitate successful
development through them.
The first stage, facilitating psychological membership, deals with development of interpersonal
involvement and identity as members of a group. Although the time required to develop a general
sense of inclusion differs from group to group; such factors as how much time they are able to
spend together, previous relationships among the members, the ages, experiences with the content,
and amount of diversity all effect the eventual resolution.
After the members become acquainted, build some security, and begin to feel that they are part of
the group, issues of influence relationships become prominent. Each member needs to sort out what
his or her position is relative to the others. For most effective synthesis of perspectives, each person
must feel that his or her contribution is important. This doesn’t happen simply

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because we are told we are important, but rather by being treated in such a way that we feel that
both our ideas and ourselves are valued. The most effective teams develop very different “climates”
from less effective groups and from most of our day to day interactions. If people have worked in
highly competitive environments, there is considerable proactive interference to learning and using
collaborative behavior. Competitive behavior, directed at obtaining a goal while keeping others from
reaching it first, will doom team activity. If members have learned such behavior, significant early
team development activity is required. The key developmental issue in this second phase is that
members find their own niches in the group’s structure. Until this has occurred, much of the group’s
energy may be siphoned off in power plays, bargaining, and hidden agendas.
Once the issues of belonging and influence have been successfully resolved, the group can directly
and productively address its assigned task. Not that the group just sits around and “sorts out” its
relationships for the first meetings. Some work, of course, is accomplished during the first phases;
but not with the same effort and support that the members are able to provide in the third phase,
pursuing group goals. By now, members know one another relatively well and have a good idea of
how each one can aid in the pursuit of the goal. They have settled issues of leadership and are ready
to move on to examine task issues, agree on approaches, and make decisions. If group members
have developed skill in communication and decision making, the aspects involved in the early group
development can be dealt with relatively easily. Unfortunately, too many groups have little
opportunity to learn about and practice these skills. Training in effective interaction patterns should
take place before and during the group activity.
During the third phase, members need a structured approach to their problem solving activities.
There are many models available—including the “job plan’’ of value management, Delphi techniques,
“nominal” procedures, cause-effect diagrams, and many other approaches. All to often, problems
that are reasonably solvable look so difficult that people give up on them without an adequate
attempt. Other problems that could be solved go unresolved because our attempts are random and
the path to the correct solution becomes clouded over with fragmentary starts and stops. Using a set
of shared guidelines for group activity, including an agreed-upon approach for dealing with the
problem itself, vastly increases the probability that the best answer will be found. The system
adopted by the group must provide for adequate information gathering, speculation about
alternatives, analysis and evaluation of potential resolutions, and selection of the best solution.

Page 376
Without a visible job plan, groups frequently start off well, but then get lost along the way. Training
and/or facilitation in problem solving techniques can help group members use their resources most
productively.
4.2 Communication
Cutting across each of these stages is the important issue of communication. If we think of human
relationships as consisting of two or more individuals trying to satisfy their needs in the same
situation, we can see the importance of communication. Only through communication can we let
others know what our needs are, find out what others’ needs are, and try to influence outcomes to
achieve need satisfaction.
All communication includes components of content (both facts and feelings) and direction. Group
productivity can be improved if members learn to use techniques such as active listening,
paraphrasing, describing feelings and behavior, and giving useful feedback. Practice in such skills can
reduce miscommunications—the discrepancies between what the sender intends and what meanings
the receiver picks up.
Effective group problem solving requires interaction among members. Most of the time, our
communications are of a coactive nature that places all the eggs in one basket. That is, a group
leader or superior is the hub of the communication network. While this structure looks efficient since
it takes less time; the morale, flexibility, and correctness of two-way or interactive approaches are
much better. Careful team selection and development increase the probability that such interaction
actually results.
4.3 Motivation
Group problem solving, like any other activity, is affected by issues of personal motivation. One of the
most useful models of motivation is Lawler’s expectancy approach, stated Effort—Performance—
Outcomes. This includes and expectancy component (“If I try, I can do it”) and an instrumentality
component (“If I do it, good things will happen”). Breakdowns in the Effort-Performance relationship
include any factors that we think will keep us from performing effectively: “If I try, I can do it. No I
can’t because ____”. The ways people fill in the blank comprise the set of expectancy problems to be
dealt with. These frequently include perceived or real lack of ability, lack of time, lack of direction,
lack of authority, etc.. Thus, to provide for effective activity, we must be sure that those involved
have appropriate instruction, sufficient time, and requisite skills and information available.
Breakdowns in the Performance-Outcome relationship

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include any factors that reduce the perceived probability that improved performance will lead in turn
to the attainment of valued outcomes. Instrumentality problems frequently involve lack of adequate
reward, perceived or real lack of organizational value for the activity itself, and pressures to complete
other work.
Many of the major rewards associated with team membership are inherent in the activity itself. In
addition to the satisfaction that occurs when goals have been accomplished, people also feel
rewarded by the security, affiliation, esteem, and influence that group membership may provide.
When members have developed into an effective team with good communication skills and both
personal and group needs are largely satisfied, a positive assembly effect has been achieved.
5. Conclusion
Organizational management is a complex and demanding task. There are many panaceas being
offered in the literature—techniques that purport to work in all places with all people and all times.
Unfortunately, best evidence indicates that no such panaceas exist. With respect to participatory
decision making, research results are mixed. Sometimes participation is useful and sometimes it is
not. It is up to the manager to determine whether the task and personnel available are appropriate
for this approach and then to provide the necessary environmental support. Increased opportunities
for interaction will not necessarily improve performance. There must be a basic collaborative ability
among group members and the absence of conditions creating serious conflicts of interest within the
group, such as a reward system based on competition or the allocation of status symbols in a
manner that impedes collaboration.
It has been said that if you dig far enough into any problem, you will get to people. While that may
be the case, it is also true that people are the solution as well—especially if they are provided the
skills and opportunities to develop high performance teams.
References
Block, P. (1987) The Empowered Manager. Jossey-Bass, San Francisco, CA.
Grove, A.S. (1983) High Output Management. Random House, New York, NY.
Kanter, R.M. (1982) Dilemmas of Managing Participation. Organizational Dynamics. 11, 5–27.
Sashkin, M. (1984) Participative Management is an Ethical Imperative. Organizational Dynamics,
12, 4–22.

Page 378
Thompson, J.D. (1967) Organizations in Action. McGraw-Hill New York, NY
Toffler, A. (1970) Future Shock. Random House, New York, New York.
Vroom, V. and Yetton, P. (1973) Leadership and Decision Making. Univ. of Pittsburg Press, PA.

Page 379
AND TO THE FUTURE…
‘The certainties of one age are the problems of the next’
R.H.Tawney

Page 380
Future organization of the building process
I.R.Wim Bakens
Bakkenist Management Consultants, Voorburg, The Netherlands
Coordinator CIB Working Commission W82 ‘Future Studies in Construction’
Abstract
In 1990 the CIB Working Commission W82 “Future Studies in Construction” started the international
study project ‘‘Future Organization of the Building Process”. In this study scenarios will be developed
for future process organization in Building based on an international confrontation of innovative ideas
of experts on various aspects of process organization and also based on an evaluation of trends and
developments among others on the building markets and in building technology.
Keywords: Future, Building Process, Building technology, Information Technology, Building Market,
Mega Trends, Procurement Systems, Project Management
1 Introduction
The results of the study will be presented at the W82 Symposium “Construction beyond 2000”, June
1992 in Espoo, Finland.
Provisional results will be presented among others at the Symposium “Architectural management” in
Nottingham, U.K. In this presentation also an evaluation will be included of the most important
statements concerning architectural management that were made during this symposium.
2 CIB Working Commission W82 “Future Studies in Construction”
The study project was initiated by and is executed under the supervision of the CIB Working
Commission W82 “Future Studies in Construction”. The objectives of this Working Commission are:
- to collect, create, evaluate and disseminate knowledge dealing with the development and the future
of the construction filed on the medium and long-term scale;
- to analyse and interpret external factors (e.g. technological, economical, social, global, etc.)
effecting the development and the future of the construction field;
- to analyse, develop and apply methodologies of future studies and forecasting (e.g. scenario
writing, extrapolation, trend analysis, cross impact analysis, mathematical methods, etc.) in
construction research and policy making;
- to formulate and evaluate future alternatives for the construction field and for its sectors (e.g.
construction industry, housing, town planning, etc.).
To realise these objectives W82 strives for achieving synthesis of ideas and concepts of future
oriented and innovative experts with different cultural back grounds (e.g. people from different types
of countries and working with different types of companies and institutes in the construction field)
and from different disciplines (e.g. technical, economical, social and managerial in policy making,
planning, design, engineering, contracting and maintenance).

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3 Scope of the study project
In the figure below the scope of the study is summarized.
A basic assumption is that the traditional segmented organization of the building process no longer
fits in the context of a fast developing building technology. In fact the traditional way of organizing
the building process is one of the major hindrances for technological innovation and because of a
non efficient use of new technologies the quality and the cost-quality rations in building are far from
optimal. Also the traditional principles for cooperation in building projects often prevent a collective
strive of all process participants for the top quality, that is needed to be able to compete with other
industries. Also the traditional way of organizing the building process no longer fits in the context of
a changing building market. For example responsibilities and liabilities are often unclear and clients
no longer accept this as a given fact.
4 Trends and developments
Building process organization will be influenced among others by trends and developments in the
following areas:
- building technology, with attention for topics like: industrialization of building, concentration of the
supply sector and the use of robots in manufacturing companies;
- information technology in building, with attention for topics like: integrated CAD and CAD-CAM
systems, computer integrated building, models for building information and communication, EDI,
PDI and project data bases;
- building market, with attention for topics like: changing role of governmental institutions,
professionalization of clients, changing structure of the building market, growing need for quality
performance, declining market for extension of the building stock, changing planning principles;
- mega trends, with attention for topics like: labour market, environment preservation,
individualization of building users, internationalization and even globalization of clients and of
companies and changing appreciation of entrepreneurship;
- procurement systems, with attention for topics like:, post construction liability and insurance, new
EC regulations in this area, various principles for tendering and Performance Specifacation.
In the study the possible effects on future process organization of these and related trends and
developments are assessed.

Page 382
In this context two categories of aspects of process organization are distinguished:
- legal aspects related to contracts and procedures in building projects;
- aspects related to project management, with attention for topics like: systems for coordination,
logistical principles, systems for integrated quality management in building projects, etc.
Process activities and the responsibilities and roles of participants in the building process are a
reflection of choices made with regard to both aspects.
5 World wide inventory of key studies
An important part of the study is a world wide inventory and selection of future oriented key studies
in areas that are thought to be of importance. This inventory and selection has been made trough
two channels:
- national inventory in countries participating in W82 (e.g. Austria, Belgium, Canada, Finland, France,
Israel, Italy, Netherlands, Sweden, United Kingdom and USA);
- through selected CIB Working Commissions.
6 Preview on the study results

Some of the expected changes that will effect process organization in building in a more or less
general way, are:
- better integrated process, with a more clear defined division of responsibilities and liabilities
combined with a more effective and a more explicit method for coordination and with forms of
cooperation based on co-makership;
- Information Technology based networks per project;
- project independent building concepts as a base for innovation and cooperation;
- integrated systems for quality management in building projects;
- standardized building components, combined with a system for flexible production organization,
resulting in very individual and more flexible buildings;
- more client and consumer oriented attitude of all professional process participants.
However, there will not be one scenario for future process organization. Next to national and sectoral
differences there will be differences in process organization per type of project (e.g. scale of
technical and logistical complexity, type of financial involvement of process participants and financial
risks, etc.) and per type of client (e.g. professional or non professional, profit or not profit oriented,
etc).
It may be assumed that a stronger distinction will appear between on the one hand principles for
building process organization for the execution of large and complex projects on behalf of more or
less professional and often international oriented clients and on the other hand principles for process
organization for the execution of more or less simple projects for non professional and mostly
regional or local oriented clients. This distinction then will be a reflection of a parallel split in the
building market. This split will force building companies more and more to make a strategic choice
wether or not to specialize on acquiring and executing assignments in the top segment of the
building market and to forget the rest of the building market.
Also concerning the future role of architects there will not be but one scenario. Next to national and
other differences this role will differ per segment of the building market. Architects also may be
forced more and more to make strategic choices concerning specialization in stead of being full
service professionals.

Page 383
Index of Authors
Alkass, S. 104
Bakens, W. 380
Barren, P. 350
Bilham, T.D. 324
Blackwood, D.J. 55
Bosta, D. 170
Cairney, M.A. 160

Cairns, G.M. 336
Ciribini, A. 170
Clelford, A.J. 29
Coleman, C.R. 282
Coles, E.J. 77
Dale, J.E.S. 220

Dallas, M.F. 235
De La Mare, R.F. 8
Doree, A.G. 40
Ellegant, H. 247
Fellows, R.F. 324

Finnigan, R.E. 8
Fraser, R.A. 370
Gibson, R.F. 134

Green, S.D. 256
Hatchett, M. 341
Jepson, W.B. 2
Jergeas, G. 104
Lavers, A.P. 22
Leith, M. 297
Lenzer, W.F. 268
Loosemore, M. 90
Moroni, M. 179
Nakagita, H. 190
Nicholson, M.P 2
Nishimura, T.H. 306
Packham, M. 118
Price, D.F. 55
Prins, M. 65
Sarkar, S. 55
Sawczuk, B. 84
Sommerville, J. 362
Spedding, A. 314
Tyler, A. 104
Varcoe, B.J. 190

Veenvliet, K.T. 145
Vinci, R. 210
Wearne, S.H. 8

Page 384
Index of Keywords
A
Adult training 341
Architect’s Appointment 2
Architects 8, 297
Architectural Management 2
Architectural Practice 341
Architecture 220
B
Benefits 297
Buildability 104
Building 77, 282
Building Economics 65, 256
Building Maintenance 314
Building Market 380
Building Pathology 179
Building Process 380
Building Technology 380
Built Asset Management 314
Business Objectives 297
C
CAD 306
CAD Data 282
CAFM 306
Change 349
Clarification of Design Brief 22
Client Management 84
Communications 220
Company Management 84
Computerised Data 314
Conceptual Design 145
Constructability 104, 145
Construction 282, 349
Construction Cost 235
Construction Management 8, 324
Continuing Professional Development 341
Contract Risk Simulation 134
Control 77
Cost 118
Cost Control 55, 65
Creativity 220
Cyclical Trends 362

Page 385
D
Data Coordination 306
Database 306
Decision 90
Decision Making 256
Decision Methods 145
Decision Techniques 145
Design 77, 210
Design and Build 160
Design Decision Support Model 65
Design Details 104
Design Liability 22
Design Management 55, 84, 336
Design Methodology 65
Design Optimisation 256
Design Process 40
Design Procurement Systems 40
Diagnostics 179
Distance Learning 324
E
Education 8, 324, 336
Estimating 55
Expert Systems 104
F
Financial Economic Optimisation 65
Flexibility 65
Function 268
Function Analysis 235
Functional Use Efficiency 118
Future 380
Future Careers 8
H
Hierarchy 90
Human Resources 362
I
Information 210
Information Exchange 282
Information Technology 297, 380
Initial Cost 118
Integrating Skills 84
Interdependence 370
Investment 297
J
Japan 268

Page 386
L
Law 22
Legal Obligations 22
Life Cycle Costs 40, 65, 235
Life Span of Building Components 65
Life-Long Learning 341
M
Maintenance 179
Maintenance Coding 314
Management 210, 268, 349
Mega Trends 380
Miles 268
Monitoring 77
N
National Economic Development Office 282
O
Occupancy Cost 118
Office 190
Open Learning 341
Optimisation 198
Organisational Change 370
P
Participatory Management 370
Performance Decay 179
Personnel 370
Planning 55, 77, 297
Post Occupancy Evaluation 190
Post-Qualification Continuing Education 341
Practice Management 8
Premises Management 198
Preservation and Maintenance Works 170
Primary Role 336
Procurement Systems 380
Professional Development 2, 220
Professional Firm 349
Professional Negligence 22
Project Management 8, 160, 235, 336, 380
Project Organisation 282
Q
Quality 268
Quality Management 170
Questionnaire 190
Questionnaire Survey Design 55

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R
Referral Sources 362
Renewal 190
Renewals Cost 118
Renovation 190
Research 210
RIBA 8
Risk Management 134
S
Service Life 179
Staff Involvement 297
Strategic Approach 297
Strategies 362
Survey Method 8
System Integration 306
System Selection 297
Systems 90
T
Team Development 370
Teamwork 220, 336
Teamwork Value Analysis 235
Technical Specifications 170
Total Cost 118
Total Cost Performance Index 118
Training 8
Transaction Costs Economics 40
Typology 90
V
Value 268
Value Analysis 268
Value Engineering 235, 256
Value Management 220, 235
W
Workload 362
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London · New York · Tokyo · Melbourne · Madras

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- What were their comments on such a survey.

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