Masonry Magazine April 1973 Page. 5
The PROJECT OWNER-
A new man to reckon with in construction
By A.W. KITCHENS
President, McGraw-Hill Information Systems Company
These are exciting times for construction, times that pose both challenges and problems to all branches of the construction industry. Traditional roles are shifting, and new opportunities are emerging to improve the production process of our structural environment.
There is a growing awareness that to accomplish construction better, faster, and at reasonable cost requires a greater inter-relationship between the various component groups involved in the construction process itself. As a result, there has been not only a steady fusion of interests among the various branches of the construction industry, but also the emergence of a hitherto seldom reckoned with and accounted for factor-that is, the project owner himself.
This evolution of the project owner as a force within the industry is itself just another indication that the construction industry is changing-but, simultaneously, one of the most significant indications. The present process of construction, with its attendant cost structure and other obstacles, is hard pressed to meet the present needs of the nation.
Looking ahead to the year 2000, we will have to provide urban environments for as many additional people as we have in our cities today. That will be a minimum of 238 million urban dwellers by the new century, or over 80% of the total U.S. population. Some even estimate the number will top 90%.
Already operating in tandem with this mounting social force are the economic forces developing out of the spiraling cost of construction and the general inability of the industry to effectively control this factor.
About the Author
A.W. KITCHENS is President of McGraw-Hill Information Systems Company headquartered in New York City. His incisive analysis of the dramatic innovations in the construction industry and the emerging role of the project owner was originally contained in a research paper entitled, "Forces of Change in the Construction Industry," prepared for internal company use. Its content was so compelling and indicative of the team effort required for efficient building methods that it is reproduced here for the readers of "Masonry."
This has led to owners in the private as well as public sector taking matters into their own hands and demanding changes in the construction process that will drastically reduce the time required for completion of a project and, thereby, its cost.
The owner has become the prime mover behind the changes that are shaping the construction industry and the relationships that exist between its various branches.
The owner is emerging as a new and potent force. Some call this the "Age of the Owner," while others identify the period as the "Revolt of the Owner." By owners, I mean private sector developers and corporate consumers of construction, as well as public agencies on the Federal and state levels.
Private owners have steadily grown in size. The scope of their operations is larger, and they are increasingly more involved in large scale, multiple-building developments, such as housing complexes, community and industrial centers, and "new towns."
The federal government itself has become a powerful new force for change, principally through the activities of the General Services Administration, the Department of Housing and Urban Development, and the Department of Health, Education, and Welfare.
Today's owner of multiple and repetitive projects, private as well as public, is vastly more sophisticated than ever before and is no longer willing to accept the status quo. The economic stake is too large, the social needs too great, for a business-as-usual philosophy. The owner is demanding a better construction product and is taking the initiative in getting it.
Aiding him in this quest are forward-thinking architects and engineers concerned equally about the impact of construction costs as well as the quality of design. Over the past decade, the design professional in many ways has become much more of a collaborator, aiding owners to find new ways to cut the construction time of multi-building projects.
With the architect pointing the way, the owner has embraced "fast track" scheduling, which is really a new name for an old management technique. It involves letting out selected subcontracts, either by competitive or negotiated bid, and starting actual construction while the balance of design and working drawings are still in progress.
This approach, utilizing simultaneous and overlapping design and contracting, replaces the conventional sequential linear method of construction and can drastically shorten construction time.
Fast track scheduling, which also goes by the name "phased bidding" and "phased construction," has the potential of cutting in half the calendar time required to design and build a project. And with costs steadily moving