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6 DATA BASE IMPLICATIONS INTRODUCTION The working group on data base implications was asked to discuss issues associated with the building process that are likely to result from the introduction of the integrated data base (IDB). The group addressed legal, organizational, and other barriers that could inhibit the use of the IDB. The group also examined incentives for imple- menting the IDB and developed recommendations to begin this process. Members of the working group were Fred Kitchens (chair), Gifford Albright, Eric Dluhosch, Robert Furlong, Rick Martin, Harry Mileaf, Jack Phillips, Shirley Radack, and Pete Ruhlin. VALUE OF THE IDB As pointed out at the 1984 Woods Hole Workshop, only 10 to 15 per- cent of the overall life-cycle cost of a building can be attributed to the design-construction phases. The other 85 to 90 percent is spent on operation, maintenance, and periodic rehabilitation, and must be taken into account in terms of the benefits offered by the proposed IDB system.1 However, the benefits to be gained by the sharing of data and the access to a comprehensive data base in the operation and maintenance phase will not be apparent early in the use of any computer driven data base, including the proposed IDB. Experience has shown that the ini- tial costs associated with the installation of computerized preventive maintenance systems (and facility management systems) are relatively high and increase during the early years of operations, before dropping to a level below that of the preceding manual operation costs. Figures 6-1 and 6-2 represent a schematic representation of the relationship between cost and time for a computerized operations and maintenance facility system (for example, a maintenance management system for a statewide computer-supported facility) and the distribu- tion of various cost elements associated with the ownership, and opera- tion and maintenance of building equipment. National Research Council, A Report From the 1984 Workshop on Advanced Technology for Building Design and Engineering. National Academy Press, Washington, D.C., 1985, p. 3. 59
60 EQUIPMENT MAINTENANCE & REPAIR 35-40% DIRECT OPERATING COSTS 10-25% EQUIPMENT DEPRECIATION 20-30% FIGURE 6-1 Relationship of the various cost elements associated with the ownership and operation and maintenance of building equipment. SOURCE: Division of Capital Planning.and Operations, Commonwealth of Massachusetts, "Conceptual Design Report," prepared by Roy Jorgensen Associates, Inc., April 1986. PEAK -^* PRESENT STABLE START 1YEAR 2-3 YEARS TIME FIGURE 6-2 Schematic cost curve of resource requirements of computer- based operations and maintenance program.
61 This cost curve may also be viewed as a learning curve. The installation of the IDB may be expected to pass through a similar path of initial high front-end costs, before a clear economic benefit will be realized. This has serious implications on the types of incentives that will drive implementation. The value of the proposed IDB is actually of a dual nature: One is broadly societal in that better communication and an enriched informa- tion environment will lead to a higher level of understanding of over- all trends, productivity assessment, and related statistical and analytical operation. These currently suffer from a lack of precise data, covering the whole universe of new and existing facilities, and particularly the lack of precision of data available for operation and maintenance. While various heterogeneous data bases dedicated to facilities management are currently available on a stand-alone basis, the proposed IDB may overcome these barriers which preclude regional or even national integration. Assuming the general desirability of an IDB, users will be able to: 1. Access data from a common pool, while at the same time contributing to and maintaining the integrity of the IDB, 2. Concentrate their own data with those extracted from the IDB for purposes of comparison and evaluation, apart from verification of standards, norms and state-of-the-art practices, as contained and shared in the IDB, and 3. Obtain "bonus" information as a result of data recovery for generic design, procurement, and operations tasks. This implies that the final version of the IDB will provide data transfer not only from design to construction to operation and maintenance, but also from operation and maintenance back to design. The major value of the IDB in the operations and maintenance phase lies in addressing the problem of managing facilities more efficiently and using resources more effectively. The possibility of "catching-up" and bringing even a part of poorly maintained and aging facilities up to acceptable standards of performance should recommend the initiation of pilot projects as test beds for the implementation of the IDB concept. Therefore, the IDB raises the true value of existing facilities in terms of the following: 1. Lower operation and maintenance costs over the long term, 2. Higher actual value per square foot or service rendered (equivalent to higher real estate valuation in the private sector), 3. Better management of inventories, labor, spare parts, procurement, space utilization, and 4. Better communication and more accurate reporting that improve management practices.
62 VALUE OF THE IDB TO THE RENOVATION MARKET Financial incentives exist to implement the IDB as quickly as possible. Commercial, institutional, and industrial building renovation is the largest construction market in the U.S. today. Each year, more money is spent to renovate the existing inventory of these buildings than is spent for new construction. There are 4.5 million commercial, institutional, and industrial buildings in the United States today. Over 75 percent, or 3.4 million, are 17 years of age or older. During the past four years, the new construction of commercial, institutional, and industrial buildings averaged 68,500 buildings per year which is equivalent to 1.5 percent of today's existing building inventory. Almost ten renovation projects are completed for each new structure built. In 1986, it is estimated that more than 674,000 commercial, institutional, and industrial buildings will be renovated. The relationship of the relatively small number of new buildings being constructed each year to the large, aging inventory of existing buildings explains why the total dollars spent in the renovation market are increasing faster than the total dollars spent on new construc- tion. Table 6-1 summarizes the impacts created by renovation. Both the construction of new buildings and the renovation of existing buildings share the same basic design and construction technology. However, building renovation projects are more difficult to design, construct, and budget because some decisions regarding retention, repair, or replacement of building components must be changed during the actual renovation. Moreover, as previously unknown conditions are discovered during renovation, they very often require custom solutions at greater cost. The key to successful building renovation requires precise diagnoses of existing building components and systems (what to retain and what to replace) and the optimum integration of old and new building components within budget constraints. The unique problems encountered in the renovation process require that building owners, architects, engineers, and contractors maintain an attitude of open-mindedness and that they be receptive to the TABLE 6-1 Total Dollar Expenditures for Commercial, Institutional, and Industrial Buildings (Dollars in Billions) Renovation New Construction 1983 58.7 54.5 1984 67.5 62.7 1985 79.4 66.1 1986 (est.) 87.0 70.0
63 examination of all possible solutions for a given project. Very often, out of necessity, owners can initiate creative solutions to unique retrofit problems which are later applied to their new construction projects. ENHANCING THE VALUE OF THE IDB Other economic benefits will accrue in the mature phases of a continuous IDB project. The monitoring and evaluation of pilot or test bed projects over a three- to five-year time period is necessary for testing different models or versions of the IDB before full implemen- tation. Government owners of public facilities tend to manage these facilities over the full life cycles, and, since the investment in public facilities is significant, the best candidates for a pilot to test the IDB concept will be found in the public sector. Since most public agencies employ private firms to install their facility management systems, the likelihood of technology transfer from the public to the private sector is considerable, provided that legal barriers can be removed. In addition, initial research and development costs need to be prorated with respect to the number of buildings to be served (or the number of owners using the system). The need to provide the IDB with the capacity to capture, translate, and integrate data from new and old construction, and to facilitate multiple feedback loops is a necessary condition for enhancing its value to the owners. If it is true that, at least initially, the greatest benefits of using the IDB will accrue to owners of large facilities (e.g., public sector agencies and large corporate owners), the benefit to small or individual building owners may become apparent only in terms of "secondary" market effects, such as: 1. Subscription to limited or scaled down versions of the IDB, 2. Creation of associations of individual owners, sharing access to the IDB, 3. Formation of architectural and engineering service capabilities that would use the IDB on behalf of individual users or user associa- tions , and 4. As a public service, to be provided on a fee-for-service basis by governmental agencies. Steps that could be taken to ensure success during the transition phase to full implementation of the IDB include: 1. Articulate a clear rationale for selling the IDB concept by judicious dissemination of information, contact with potential clients, IDB demonstrations, and inclusion of all participants in the building process as potential IDB clients, 2. Elaborate explicit and reasonably transparent rules for the use and operation of the IDB in terms of technical, operational, and legal matters (including constraints),
64 3. Select candidates for pilot or test bed projects including the mobilization of legislative, financial, and human resources prior to installation, 4. Assure peer group control in terms of impartial evaluation of test bed cases, including publication of results and communication with professional associations, 5. Monitor benefit and cost aspects of installed IDBs, both in terms of base line costs before and comparative cost levels after, including comparison of benefit/cost curves between users of the IDB. Consider using control buildings for comparison (i.e., non-IDB projects). THE LEGAL BARRIER Emerging technologies create new uncertainties which inevitably result in added legal risks and liabilities. The patchwork of tort laws in the United States has slowed the growth of emerging technolo- gies, but has not yet stopped this growth. An IDB, like any emerging technology, will increase legal liabilities in unforeseeable ways. New legal and insurance reforms will be put into place because of the IDB. These reforms may include shared insurance risks similar to commercial airlines. Federal products liability reforms to standardize commerce among the various states will almost certainly become a reality. The successful implementation of the IDB will depend on the reduction of legal barriers to emerging technologies. Further detailed legal research will be needed into best case scenarios for reducing the legal risks implied in a full blown IDB implementation. CULTURE SHOCK The implementation of the IDB will precipitate a number of organi- zational, economical, and physical changes to the building community. Some of these changes can be anticipated; others are quite speculative, and their effects could be confirmed through the test bed approach. The culture shock implications have been segregated into four basic areas where change is expected: (1) business and professional service organizations, (2) structure of the architecture, engineering, con- struction community, (3) procurement, and (4) the use of external data bases. These implications are discussed below without any attempt to assign priorities. Organizational Small business It is perceived that the average architecture and engineering (A/E) firm may have difficulty participating in projects requiring the use of
65 the IDB because the condition of a small firm's capitalization, the mix of its work, and the lack of diversity in its staff may preclude small A/E firms from applying the IDB to their client's requests. However, under proper circumstances, small A/E firms may be encouraged to enter into use of the IDB because of economic incentives to the firm, such as decreases in workstation costs, reduced communication time, and accommodation of change orders more rapidly. Work Force Innovation provided through the IDB should significantly affect the composition of an A/E firm's staff. With many para-professional and routine tasks being directed by senior staff through the IDB, a decline in jobs at entry level and low tenure positions will occur. A similar decline in the more junior staff in the owner's organization is also predicted. Work Space The IDB will change the A/E firm's work facility. Drawing boards and desks will be replaced by electronic workstations; storage of hard copy project documentation might be eliminated; and the A/E community working with the IDB may be motivated to merge their resources. Job Profiles Within the professional services community, project architects and engineers will assume much of the lower staff level tasks, relying on automation relating to the IDB and associated hardware for the pro- duction of contract documents. Within construction firms, technical staff will be upgraded as a result of their interface with the IDB. Contractors and fabricators will be required to deal with electronic rather than hard-copy information. In all elements of the project, users of the IDB will require skills related to data management and communication. Education The IDB will change the education of technical staff throughout the building process. Both undergraduate and postgraduate levels of curricula must include opportunities for students to be trained in the use of the IDB. Aside from the present day architectural and engineering subjects being presented, students anticipating careers in building-related disciplines will be required to be familiar with skills demonstrated by the para-professionals.
66 Project Modification The IDB will foster faster and better communication between the A/E firm and the owner organization. This should create a deliverable at less cost with a shorter construction time. On the other hand, with the owner having continuous access throughout the building process, there could be a tendency for the owner to interject more changes into the project process. Although project redirection could be considered positive, it may lead to delays in completion of the necessary contract documents. Federal Budgeting Process Through the IDB, an agency will have timely access to more detailed data for preparation of budget requests related to new construction, renovation, and facility operations. Less manpower should be required to produce the budgetary supportive documentation. In addition, funding for organization- and maintenance-related activities should be more easily defined. Industry Structure Reduction of Professional Service Firms The availability of an IDB, in concert with a possible decline in new building projects, may cause a decline of professional design firms. Projects will be completed in less time than today by those firms using the IDB concept, forcing those not using the IDB to leave the field or to perform and concentrate on services other than design. Modify Design Services The use of the IDB could change how design professionals perform. Access to an IDB could make it easier and more economical for construction firms to provide more detailed design; design professional deliverables could be limited to those of a design development nature. Without an IDB, design services are currently apportioned this way in other countries (especially in Europe). Professional Expressionism Construction firms supporting the design phase could assume, through the IDB, a greater role in the design of projects. This will require construction firms to upgrade their skills to the levels necessary to facilitate the design process. A greater number of junior professionals will enter the industry in this manner. This shift in
67 employment of professionals to the construction sector will very likely affect the reduction of junior professionals in the A/E community. Procurement The procurement of design, construction, and facility services in the current building process, has been traditionally driven by first cost. Such a system does not lend itself to the life-cycle approach that is evident in the IDB concept. The procurement of design, con- struction, and facility operation and maintenance services is generally independent, each predicated on the cost at the time of contract. Since the IDB is based on the life cycle of the facility, then the services that make up the pieces of the facility procurement must be looked at and developed on a life-cycle basis. Design development options, the choice of construction materials and techniques, and facility management decisions must be made on a life-cycle basis. Without such an emphasis during procurement, the development of the IDB will be hindered. The sooner the procurement process recognizes this required change the easier the transition process. Although there is concern with the culture shock that such changes will have on the industry, such concepts are new, but not totally adrift, of some present day thinking. An example of this occurs in the design/construction phases and the use of value engineering to make decisions based on life-cycle costing. The use of such concepts, though limited, does indicate that life-cycle thinking can and does occur today. How to procure a facility is not as important as what to procure and when to allocate monies to support the procurement. The IDB process will help prove to building owners that the first cost should not be the sole priority. Today's procurement process can support the IDB development. It is the decision makers within the procurement process that need to accept the life-cycle concept before the benefits of an IDB will be realized. External Data Bases Most of the data and analyses created and used during design are based on data derived from published sources, which can be in either traditional printed media as well as in some form of electronic media. Examples of the traditional printed data are published handbooks in tabular, graphic, or nomographic formats. Examples of electronic data bases are Masterspec, Electronic Sweet's Product Data, Dodge Cost Systems, Steel Beam Design Data, as well as other planned activities dealing with graphic details, building codes, and a variety of engineering data. The specific data that are used from the external data bases to make critical design determinations must be recorded in the IDB for future reference. With data sources that exist only in traditional
68 printed format, manual gleaning and input would be required, which is not as efficient or reliable as the automatic input that could be arranged with a computerized data base. There must be inducements for organizations to convert traditional data bases to electronic form, which is essentially a new technology publishing function. This function could be provided in some cases, where the data are in the public domain, by organizations that have no revenue interests, such as government or military agencies, or associa- tions with special interests, such as the Steel Institute. The data can be provided in the new media by the traditional commercial publish- ers as extensions or replacements for their traditional publishing efforts. In actual practice, data bases will likely be provided by a combination of sources, with commercial publishers being relied on most heavily, as is currently the case. In their current mode of operation, publishers and, more impor- tantly, authors rely heavily on unit sales to produce revenues. The application of electronic data bases could impact heavily on the unit sales formula because larger numbers of individuals could employ the data base than do now with individual printed materials. There is always the specter of illegal copying which is often impractical with an entire book. Protection and pricing schemes must be arranged which might differ considerably from the publisher's traditional schemes. Traditional publishing treats revisions and updating of data lightly, often letting long periods go by before aged data are revised. In effect, the publisher is passing the responsibility on to the users to rely on their own expertise and judgment in how the data are used. This cannot be tolerated in automated systems where the age or validity of the data might not be obvious to the user. Incentives and controls must be established to assure that the content of an external computer data base be more dynamic than the relatively static printed material. Because of the permanent nature of printed materials, they are conducive to archival storage after revisions are made, so that they can be retrieved and referred to for review. The more dynamic computer data bases and, in particular, on-line data bases do not lend them- selves readily to this kind of archival storage. A special effort must be made to retain the data base in an as-used state for the purposes of review and evaluation. In summary, the issues regarding external data bases might require the following: 1. Providing incentives and protection to both the publisher and author to create and supply the external data bases, 2. Establishing standards and controls to assure the dynamic updating of the data, and 3. Establishing a methodology of archiving an external data base in its as-used state.
69 STRATEGIES TO IMPLEMENT THE IDB Many of the direct and indirect benefits to be gained from imple- mentation of the IDB are long-term, life-cycle cost benefits. In order to implement the IDB, many changes will evolve in the structure of the building industry and in the business, professional, and legal arena over a period of years. It is recognized that the effective utiliza- tion of the IDB might evolve in a transitional mode over the next 15 years. For that reason, it is important to recognize a transitional period and the need for articulation of that transitional phase, rather than delaying implementation or developing an IDB within the framework of specific current professional, business, and legal practices and procedures. Transition Given current, traditional procurement practices, the implementation of the IDB will have to occur in an environment that permits and encourages innovation. It will not be enough for implementation to follow today's practices and procedures with the added presence of an IDB. Use of an IDB Test Bed During the transition phase, implementation should occur in a test bed which should be in an innovative environment and should include a group of similar new projects within a single federal agency (a single federal agency ideally would represent a continuous owner). This test bed should include new facilities being planned and built during the next 15-year period as well as certain existing facilities. These facilities should be designed and built faster, and at a lower cost than today due to the increased efficiency of the project team and the improved communications between the owner and the project team. Owners will receive a majority of the data to load their facility management systems. Existing Facilities Today's existing building stock will largely remain in place well beyond the year 2000. This older portion of the building stock will put the most demands on the owner for the continuing need to manage, repair, and rehabilitate these buildings, and to plan for phase out and replacement as the cost to maintain approaches the cost of replacement. The life-cycle issues being addressed are replacement; minor repair; major repair; operation and maintenance of building systems; modifications to building systems; space planning, inventory, and cost allocation; capital asset inventory and allocation; and facility reconfiguration or replacement.
70 Currently available facility management software addresses the needs of both the lowest level (minor repair, operation, and main- tenance) and the middle level (space planning, inventory, allocation) with varying degrees of success. The needs of the highest level (replacement, major repair, modifications, reconfigurations), however, are inadequately addressed. The IDB, with project by project data input and multi-project logical combination and query capability, should address the needs of managers to answer questions such as the following: ⢠Since the tenant has only nine months left on the lease, can we defer major repairs, thus avoiding unnecessary temporary relocation? ⢠Rather than repair, should we replace? ⢠Of all the owner's facilities, what facilities occupied or unoccupied are suitable for this new tenant? ⢠Is this facility suitable to be modified economically for this new function? ⢠Where do agency-wide energy costs appear to be problems? To answer these questions, existing facility data must be available as well as new facility data. Since the IDB is not a facility manage- ment system and since it must exist in a heterogeneous hardware and software environment, standards must be developed. The challenge is in the communication between software packages. The ability to extract and store data in various software packages without knowledge of the vendor proprietary data base will become critical to the long-term success of the IDB. For the near term, intermediate solutions can be created to accomplish the task. CONCLUSIONS Reduced costs for facility management is the area of biggest payoff resulting from the development and implementation of the IDB. A major incentive to adopt IDB technology lies in the capability to capture data about existing facilities and to use those data for improved management and planning. The potential opportunities for reducing these costs should be emphasized in efforts to stimulate further development of the IDB. Significant benefits should accrue to the manager of large and diverse facilities resulting from the ability to make comparative analyses of similar building functions. While software may be available to carry out facility management functions, the needs of higher management responsible for overall planning and resource allocations, are not adequately served by current approaches and technology. The widespread use of computers by the building community and by building users is a potential force that could bring the various disciplines together and accelerate the implementation of the IDB. The IDB concept has survived four years of critical review and discussion
71 through the Woods Hole Workshops, and has been sharpened in focus. The next step would appear to be either a pilot implementation of the IDS or an incremental step toward the implementation. The organization most likely to benefit from such a project appears to be a federal or other public agency with a large inventory of existing buildings and with plans to construct new buildings. The pilot project would not only provide experience and knowledge to building owners, but would also enrich the building community by encouraging the development of a capability that would enhance its international competitiveness. The changes in the IDB concept that have occurred as a result of the workshop discussions suggest that continued development could further enhance the usefulness of the concept and its applicability to solve real-world problems. The orientation toward providing a tool for facility management appears to be a useful direction for future discussions and demonstrations. It is evident from the foregoing discussion of legal, cost, and implementation issues that there are a number of issues that could, if not addressed, inhibit the implementation of the IDB. Generally, the issues are of no more magnitude than is being experienced in other areas of technological change. Some of the risks could be exacerbated with the advent of the IDB; however, these risks must be weighed against the many benefits to be gained including lower costs for building construction and maintenance, improved communications between building owners and the building community, and improved capabilities for managing buildings. In summary, the effect of implementation of the IDB will be positive and a major improvement in the working environment of the entire building community. It is essential that steps be taken to initiate the transition phase to ensure that known impediments are dealt with systematically and in a timely manner. Adoption of the recommendations outlined below will aid in that effort. RECOMMENDATIONS The working group recommends that the Committee on Integrated Data Base Development form a task group to carry out an outreach program. Information about the IDB concept should be transferred to potential implementors and to organizations that could leverage the workshop accomplishments. Presentations and discussions could be initiated with groups of large buyers of buildings such as the Business Roundtable. Professional organizations such as the International Facility Manage- ment Association, the American Association of Engineering Societies, Building Owners and Managers Association, and the American Institute of Architects could also be targeted for information exchanges. A large federal agency should be asked to sponsor a pilot project as a research effort that can apply creative and innovative techniques to procurement and other administrative requirements and to barriers to the IDB. The project should be monitored by the committee and analyzed
72 for its potential extension to larger scale projects. In particular, the techniques developed for reducing barriers should be evaluated. The existing prototype IDB demonstration project should be expanded to carry out facility management functions. Options for loading already available data, using facility management software, or developing suitable operation and maintenance applications should be considered.
