Constructive Clarity by Vikrant Duggal

Technology transforms built environments

Fully integrated digital infrastructure will allow building owners and operators to transform their properties and business models, differentiate themselves from competitors, and deliver innovative services at a lower cost. That is really the premise of connected real estate.

But why would any company in the construction industry, care about the digital infrastructure? After all Johnson Controls, for instance, is an HVAC Equipment and Controls company first and foremost, right? Wrong.

Real estate, plain and simply, is important. It's the second largest business expense - about 5-10% of operational budgets. It's also the largest long-term asset on most company balance sheets.

We're not in the 1900s.

Today's world should be all about creating "a more comfortable, safe, and sustainable world." The new vision and goals give us more reason to be interested in digital infrastructure. Buildings account for half the world’s energy consumption and on average, digital infrastructure is the second-largest consumer of energy in buildings. If we’re going to work toward the “sustainable” piece of our mission, then it’s a space we must play in.

Note: the largest consumer is HVAC (much of which is spent to cool IT systems).

As far as architects, engineers, consultants, and construction companies are concerned, they can no longer afford to ignore the power of the interconnected IT systems to improve their own productivity. And while they're learning, they will champion integrated digital technology capabilities and services into the built environments they create!

But all of this isn’t theory, there is experiential knowledge surrounding us. The new 52-story Bank of America Tower in Manhattan is opening in 2008 and will be the first high-rise office building in the world to attain the LEED platinum building standard.

At the end of the day, hopefully we're all working toward building inspirational buildings where technology enables not only personal lifestyle choices, but corporate ingenuity.

Creating value in the construction chain

Recently I was making notes on and thinking about the construction chain. It seems to me that that there are three categories for creating value in the construction chain:

1) Make efficient processes and products more efficient

Ideation, "high-performance" energy products, and sustainable design make sense to go here since it mostly has to do with early planning. By the time you've started construction it is very difficult to make changes to the process and products with the number of projects industry teams are involved in and the  lengthy lead times for certain products. It's all about quality of the holistic approach while still paying attention to the details. Most of those in the role of the developer or construction manager are typically hitting up the architects and general contractors that are consistently utilizing a traditional build approach. Although there are some plays here to help the "Owner" build more effectively, it may be that we've hit the point of diminished returns. With the industry changing rapidly these days, it makes sense to pay attention to the manufacturers.

2) Make inefficient processes and products more efficient

We will often hear the discussion of "first cost" come up and that makes me weary as people are looking for the best low cost solution - check that, the best LOW COST solution, not the best solution. There are always costs to weigh. Do you want to make it cheap and easy now? It will be someone's problem eventually.

If a company can find the balance between first cost and life cycle efficiencies, it would be akin to Google figuring out how to monetize search. The need to take the dirt and turn it into gold is BIG!

Johnson Controls generally falls into this category, by the way...

3) Use an in-building technologies guru

And finally, big players are getting into this field. Obvious players like Honeywell, Siemens, Johnson Controls, GE, and Cisco are leveraging the amount of technology that is powering today's facilities to find new ways to help developers and building owners plan, design, and procure more effectively than ever. Leasing those systems that are high in capital dollars is another big area. It's not 100% clear what this looks like, but it could definitely force old-construction contractors to evolve rather than be up-ended completely.

A Hands-on Lesson!

Learning about buildings over the last four years has been great.

When I first entered the industry they were all four walls and a roof on top: that was a building. Working for a significantly large vendor in the industry helped, but a little over two years ago I purchased my condo and that changed everything. I know what you might be thinking: I saved up some money, scrapped together whatever I had and bought this great starter unit. Definitely saved up money and scrapped together whatever I had. But I purchased a fixer-upper and it was the best kind.

Six-C had been around for 30+ years. It was one of those units that people who are looking for a place walk into and then after a minute walk right back out. I'll admit it, there was a putrid smell to it. The carpet was a 1970s orange-brownish mix, the counter tops in the kitchen and bathroom was made of formica, a couple of the rooms were even painted light blue (I haven't had a room painted blue since I was seven) - I mean, come on now. Everything would have to go.

And everything did go! I spent the first month demolishing it all: cutting up carpet, pulling apart the kitchen until it was bare, removing the ugly baseboard heaters, pulling staples out of the floor, tearing down cabinetry, and gutting the bathrooms. After four trips to the city dump in the family's 1998 Subaru Forester, I was done. I had a blank canvas to work with.

Over the course of the next four months, I would spend every free evening and weekend planning, measuring, taking classes at the local Home Depot, buying and returning things, and actually doing work in the condo. It was quite expansive for someone new to the whole idea of remodeling. I was managing a budget, purchasing appliances, materials for cabinetry, tiles for the kitchen and bathrooms, determining paint color, creating a schedule of what should be done when, managing issues like Home Depot running out of a particular cabinet knob to the growing pains of putting down bamboo flooring - I was a mini-Project Manager. Everything was a first. I was having to deal with issues of stocking material and tools and thinking about safety. Learning what tools were necessary for what tasks was new too.

Needless to say, the project was eye opening. I was able to utilize my contacts in the industry to help me when it came to some of the low voltage systems in the unit and even had the help of my dad who definitely was experienced in world of remodeling. I even learned that it's true what they say: the last ten percent of the project is the toughest!

I think there's a lot to say about coming to a task with credibility, but being new to it wasn't so bad. I know many were shocked at what I was doing and there were even some nay-sayers. I've always had the personality to just do something - make it happen, if you will. If I don't know it, it's no big deal - I'll figure it out! Now I'm not trying to equate a large commercial facility to a 1000 square foot condo unit, but walking into something you've never done still takes ambition.

First Post

Hello World. I decided to make a blog to collect all the emails and notes I send to colleagues, customers, and those interested in the world of commercial construction and buildings. Here's the first of many to come.