miller et al - the commercial real estate revolution (2009)

[...]... Whether readers wear a hard hat or a suit, create the renderings, submit the permits, design the building, finance the venture, manage the project, inspect the work, or sit in the C-suite evaluating the business case for their next project, The Commercial Real Estate Revolution offers a map to a new and better way of building with benefits that extend far beyond the project itself The Commercial Real Estate. .. make better, sustainable buildings—ones that are resource- and energy-efficient as well as healthy for their users Along the way, they learned how to put together a realistic budget, work flexibly together to make adjustments in real time, and meet deadlines without budget overruns Their experience shows that building on trust is the foundation of design and construction for the twenty-first century: better,... of the other silos that dot the land Sadly, this also describes the building industry (see Figure 1.2) Planning a new facility involves many stakeholders, all narrowly focused on their different interests In general, the user groups focus on how much space they need and their budget, the real estate group focuses on optimizing the capital they have allocated and on ways to lower operational costs Other... architect’s mission is to get the most bang for the buck with the budget and parameters the owner sets The general contractor will attempt to build what the architect and owner design, while managing the many variables that impact construction and increasing their fee to cover potential unknowns There is a built-in tension between the three parties The owner will adjust as much as they can to take into... constrution, substantially improved schedules, and conflict-free projects Yet The Commercial Real Estate Revolution is about more than innovative project delivery; it is about transformation of behavior and relationships, as well as projects This transformation represents the true revolution Part One The Commercial Real Estate Money Pit ‘‘Executives of major U.S corporations, the leaders of public... the mystery is to take a systematic look at the categories of waste On virtually every construction project in the United States, we can trace this $500 billion black hole in the American economy back to two root causes: simple inefficiency and not-so-simple bad behavior 3 The Commercial Real Estate Revolution WHY THE DESIGN-BUILD MODEL IS DEAD The industry’s traditional model for building—‘‘design-bid-build... switchbacks of the brave new world that we live in today The paradigm has changed, and the building industry is scrambling to catch up The speed-to-market business driver has forced a conflicting trade-off between quality, cost, and time.5 During the last 30 years or so, we have experimented with several variations of the design-bidbuild model, looking for better ways to address the speed-to-market demand... operational The general contractor commented that had they used the five-week bid process for intense pre-construction analysis and planning the owner could have achieved the desired outcome and saved several million dollars due to delays and fixing errors on the job 7 8 The Commercial Real Estate Revolution SILOS If you’ve ever been to the Midwest, you know what a silo is: a vertical storage facility... days produced a mutual interest to dig deeper into some of the problems that we commonly face and explore promising trends The Commercial Real Estate Revolution is an important contribution to the current dialogue about the future direction for the industry The book offers two years of our collective effort to deal with the questions raised during that first meeting In our work together we identified nine... at helping every player in the construction industry, and all who deal with it, understand that a new trust-based integrated paradigm can transform the process and create less expensive, higher quality, and sustainable buildings The Commercial Real Estate Revolution is a call for change It prepares corporate leaders to tell the commercial real estate world, ‘‘I’m mad as hell, and I’m not going to take . Transwestern Commercial Services Central Region-Dallas The Commercial Real Estate Revolution rings the bell, and it must be answered. The collision of this game-changing economy with the large,. able to pull these together. It is time to change the rules to allow and support trust-based teams who can deliver on these demands. The Commercial Real Estate Revolution provides several examples. how to make better, sustainable buildings—ones that are resource- and energy-efficient as well as healthy for their users. Along the way, they learned how to put togetherarealistic budget, work flexibly