Construction Analysis 1 Last Updated: October 24, 2019; First Released: January, 2013 Author: Kevin Boyle, President, DevTreks Version: DevTreks 2.2.0 A. Introduction This reference explains how to start to collect, measure, and analyze construction data (1*). DevTreks believes that all construction data, from the cost to build a house to the return on investment of an alternative fuels production facility, has a story to tell and lessons to teach. Those lessons can only be learned when data about construction is collected, measured, aggregated, analyzed, explained, and saved in online knowledge banks. Full, uniform, and accurate analyses of the costs and returns for houses (2*), public infrastructure, agricultural production facilities, flood control structures, emergency shelters, sports stadiums (3*), and backyard barns, should be one or two links away for everyone. If a business owner, homeowner, poultry producer, grain storage cooperative, hurricane aid worker, developing country building department, lender, government official, or nonprofit member, needs to make a decision involving construction, they should have ready access to the best data and advice available. This reference introduces another DevTreks way to build these types of knowledge banks. Section Page Data 2 NPV, LCA, M&E, and Resource Stock, Calculators and Analyzers 4 Inputs 4 Outputs 12 Components 17 Outcomes 23 Capital Budgets 30 Operations 34 Operating Budgets 35 Multimedia and Story Telling 35 Sustainable Construction Accounting and Analysis 40 Knowledge Banks and Summary and Conclusion 41 B. Data This dataset uses the Class A Construction Cost Estimate found in the U.S. National Parks Service (NPS) reference (2011). DevTreks has extended the NPS cost estimate with a benefit estimate to demonstrate how DevTreks works. The dataset and video tutorial provides some good lessons in “best practice” data management, including: how to structure data using Work Breakdown Structures, incorporate “SubCosts” (Material, Labor, Equipment) into cost estimates, incorporate “SubBenefits” (Recreation Visits, Economic Spinoffs, Nature Education Capital) into benefit estimates (4*), manage html views, include multimedia with construction data, and build knowledge banks of construction data. This dataset is owned by the Reconstruction Science club in the BuildTreks network group (if needed, switch default clubs). C. Life Cycle (LCA), Net Present Value (NPV), Monitoring and Evaluation (M&E), and Resource Stock, Calculation and Analysis The data generated by DevTreks’ Net Present Value (NPV), Life Cycle (LCA), Monitoring and Evaluation (M&E), and Resource Stock, tools can be used to support decisions involving construction. All of the calculators and analyzers available in DevTreks for analyzing construction data can be located using the URIs found in the tutorials associated with these tools. Each of the base element sections that follow demonstrates representative calculations and analyses –use the referenced tutorials for a more thorough explanation of the calculations and analyses. D. Inputs (5*) https://www.devtreks.org/buildtreks/select/commercial/servicebase/Inputs, WBS Examples/1220/none/ https://localhost:5001/buildtreks/select/commercial/servicebase/Inputs, WBS Examples/1220/none 1. Data Structure The UNIFORMAT II Work Breakdown Structure is used as follow: Input Service: A10 Foundations, A20 Basement Construction … Input Group: A1010 STANDARD FOUNDATIONS, A1020 SPECIAL FOUNDATIONS, A1030 Slab on Grade … Inputs: NPS 2011, Furnish Pour concrete, Concrete Waste Factor 10% … Input Series: same as Inputs, but uses Series data. Note that the Inputs and Input Series have Labels which can be included in the name. Remember that names have limited space when displayed on mobile devices. We recommend including the year in the name for Inputs, Outputs, Components, Outcomes, and Time Periods. 2. Input Calculations The Material, Equipment, and Labor prices have been added to Inputs using a Life Cycle Input Cost calculator. They can be found in Step 2 of the calculator. Note that their quantities are entered as “1” so that Inputs can be calculated as unit costs. This allows them to be used in multiple estimates. The Price Type property of each of these SubCosts has been set to “capital” because this dataset does not use operating or allocated overhead costs. No discounting or price escalation is used in this dataset, so all of the related properties have been set to “0” or “none”. The $220.81 LCC (Life Cycle Cost and Input.CapPrice) for the Furnish and Pour Concrete Input is a summation of the Material, Labor and Equipment SubCosts entered in the calculator. No discounting was used because the reference does not discount costs. It matches the same cost on page 5 of the Oso Comida Class A Construction Cost Estimate. When the calculations are saved, the base Input and Input Series CAPPrice is set to $220.81. This cost estimate only uses capital costs, not operating costs (Input.OCPrice) or allocated overhead costs (Input.AOHPrice). Although this calculator is being run at the Input level, the calculations are also inserted into any children Input Series because step 3 of the calculator set the calculator’s Relations to Use in Descendants = True and Overwrite Descendants = True. When calculating multiple children Input Series that have different prices, the Overwrite Descendants property should be set to false; otherwise those prices will be overwritten. 3. Input Analysis The following LCA Totals Analysis was run at the Input level. It ran new life cycle calculations for each input and then aggregated the calculations at the Input element. The Resource Stock Analysis 1 tutorial demonstrates tools for conducting further environmental analysis of construction data. The following LCA Statistics Analysis was run at the Input level. It ran basic statistics on the 5 Input Series found in the descendent Input Series. The Input has 1 observation because it analyzes the aggregated Input Series data. E. Outputs https://www.devtreks.org/buildtreks/select/commercial/servicebase/Reconstruction Outputs/2646/none/ https://localhost:5001/buildtreks/select/commercial/servicebase/Reconstruction Outputs/2289/none 1. Data Structure The NPS Handbook does not include Outputs. The following fictitious data was added because DevTreks recommends that Outputs be included in all construction analyses. When monetary values can’t be placed on Outputs, consider using DevTreks’ Monitoring and Evaluation or Resource Stock tools to document Output indicators (4*). The latter numbers support cost effectiveness and performance analyses. 2. Output Calculations The following image shows that a Life Cycle Benefit calculator has been run for an Output and automatically inserted into the Output Series. Note that Willingness to Pay data is collected using surveys. 3. Output Analyses The following image displays five of the nine Output Analyzers linked to this Output. Outputs can be analyzed using a variety of basic analytic techniques. F. Components https://www.devtreks.org/buildtreks/select/commercial/servicebase/Components, WBS Examples/1219/none/ https://localhost:5001/buildtreks/select/commercial/servicebase/Components, WBS Examples/1219/none 1. Data Structure The following image displays a typical WBS Component Group with children Components. The construction Components are structured as time series data. Note that the year has been included in the name. The UNIFORMAT II Work Breakdown Structure is used as follow: Component Service: A10 Foundations, A20 Basement Construction … Component Group: A1010 STANDARD FOUNDATIONS, A1020 SPECIAL FOUNDATIONS … Components: A101001 WALL FOUNDATIONS, NPS 2011, A101002 COLUMN FOUNDATIONS and PILE CAPS… Inputs: copied from Input Series and include any Labels used by the Series. 2. Component Calculations The following image demonstrates that a NPV calculator was run prior to running further LCA analysis. The NPV calculator pulled fresh database out of the database, built a document that contained all the data being analyzed, and ran NPV cost calculations. 3. Component Analyses The following image shows that Material, Equipment, and Labor Input costs have been aggregated using a LCA Totals Analysis. The quantities of each Input in the Component were changed to match the NPS quantities but the two estimates may not match exactly because this data has been used for testing. Although the remaining Components in this particular group do not have LCA calculations, it’s not an error –LCC calculations were not filled in for their Inputs. The image also shows that two environmental impacts were added to some of the Component’s Inputs. The Global Warming impact could be priced in markets and therefore costs could be determined. The Habitat Alteration impact could not be priced and could not be costed, but the quantity can be used in cost effectiveness analyses. The Performance and Social Performance Analysis reference explain how to calculate Performance Measures, such as an Incremental Cost Effectiveness Ratio, to assist decision makers and consumers understand sustainable construction. G. Outcomes https://www.devtreks.org/buildtreks/select/commercial/servicebase/Reconstruction Outcomes/2645/none/ https://localhost:5001/buildtreks/select/commercial/servicebase/Reconstruction Outcomes/2649/none 1. Data Structure The NPS Handbook does not include Outcomes. The following fictitious data was added because DevTreks recommends that Outcomes be included in all construction analyses. When monetary values can’t be placed on Outcomes, consider using DevTreks’ Monitoring and Evaluation or Resource Stock tools to document Outcome indicators. The latter numbers support cost effectiveness and performance analyses. 2. Outcome Calculations The following image demonstrates that a NPV calculator was run prior to running further LCA analysis. The NPV calculator pulled fresh database out of the database, built a document that contained all the data being analyzed, and ran NPV benefit calculations. 3. Outcome Analyses The following LCA Totals Analysis was run at an Outcome Group element and aggregated the children Outcomes. H. Capital Budgets https://www.devtreks.org/buildtreks/select/commercial/investmentgroup/USDI, National Park Service Example/275505674/none/ https://localhost:5001/buildtreks/select/commercial/investmentgroup/USDI, National Park Service Example/275505674/none 1. Data Structure The amount of data that can be analyzed and displayed in any data structure has limits (6*). This club found that the time needed to run calculations and display results was reasonable by organizing their data in the following manner. Other clubs should experiment until they find a size that meets their requirements. The UNIFORMAT II Work Breakdown Structure is not used at the Service, Investment Group, or Investment levels of the capital budget. In this budget, those levels do not correspond to building construction elements so some other type of Work Breakdown Structure must be used. We recommend that the WBS be used consistently throughout a network. The objective of the WBS is to aggregate budgets used by clubs throughout the network. In this example, a fictional WBS has been devised. The following image demonstrates that the Time Periods of the budget use the A10, A20 level of the UNIFORMAT II. Each Time Period’s Components use the same level as found in the base Components (i.e. A101001). 2. Capital Budget Calculations The following image demonstrates that a NPV calculator was run prior to running further LCA analysis. The NPV calculator pulled fresh database out of the database, built a document that contained all the data being analyzed, and ran NPV benefit and cost calculations. 3. Capital Budget Analyses The following Totals Analysis displays the Total Benefits and Costs for the Oso Comida trailhead improvements. The Total Material, Equipment, and Labor Costs are reasonably close to the same A10 Foundation Summary Total Costs on page 6 of the Oso Comida Class A Construction Cost Estimate ($70,009 versus $70,402). I. Operations A typical Operation in this context would be the labor and equipment needed to clear the trail each year (7*). No Operations were prepared for this data. The Net Present Value and Life Cycle Analysis 2 references demonstrates how to use Operations for this type of dataset. J. Operating Budgets A typical Operating Budget in this context would be for annual costs associated with maintaining the trailhead and visitor center. No Operating Budgets were prepared for this data. The Life Cycle Analysis 2 reference demonstrates how to use Operating Budgets for this type of dataset. K. Multimedia (Resources) https://www.devtreks.org/buildtreks/preview/commercial/resourcepack/Capital Budgeting Media/473/none/ 1. Data Structure Multimedia is stored in the Resources Services. These services do not necessarily need Work Breakdown Structures, but they should be logically structured. The multimedia above is linked to “stories” (Linked View Services) which are then linked to economic content. The Calculators and Analyzers tutorial also demonstrates how multimedia can be tied directly to economic content by using the Media View of calculations. L. Stories (Linked Views) https://www.devtreks.org/buildtreks/preview/commercial/linkedviewpack/Life Cycle Capital Budget Tutorials/103/none M. Data Structure Stories are built using Linked View Services. These services do not necessarily need Work Breakdown Structures, but they should be logically structured. This example shows that three pages (i.e. 3 linked views) have been built to support the dataset. The first page links to video tutorials that can be used with the dataset. The second page has a cover page for the final Class A Construction Cost Estimate. The third page includes a logo and an introduction to the dataset (as mentioned in several references, DevTreks isn’t perfect). 1. Story Content https://www.devtreks.org/buildtreks/preview/commercial/linkedviewpack/Life Cycle Capital Budget Tutorials/103/none/ The following image displays one page of a “story” that has been linked to the Investment node of the capital budget. These “stories” explain the “how and why” of the data. Each page of these stories is completed in DevTreks using the basic story telling capability found in linked views. The Story Telling 1 tutorial demonstrates how they work. Although very basic, they allow multimedia to be linked to all content in DevTreks. We recommend that multimedia be linked to all content in a similar fashion. Note that Linked View Services can also be calculators and analyzers. N. Sustainable Construction Accounting and Analysis The Performance and Social Performance Analysis tutorials demonstrate how small businesses, including construction businesses, can incorporate Sustainable Development Goals accounting standards systems to improve the best practices employed by the construction industry in support of “socially sound” construction. The tutorials confirm that the impact of climate change on built infrastructure, including increased flooding, extreme heat waves, and more widespread wildfires, requires adoption of more comprehensive accountability by the construction industry. The construction industry may have a pronounced advantage, compared to other industries, in the adoption of sustainable accounting systems. They appear to have much fewer “standards setting” accounting systems and compliance organizations (i.e. LEED and U.S. Green Building Council) that target their industry, than found in other economic sectors, such as the 400+ standards setters in agriculture. Although local building departments also impose standards, they appear to comply with the national certification schemes. The SPA references introduce several general business accounting systems (i.e. GSSB, SASB, B-Lab) that demonstrate what “universal sustainability scorecards” may look like. Consumer and community demand for proof of “sustainable construction” can speed up the adoption of socially sound construction accounting systems and uniform reporting. The SPA references demonstrate how trained sustainability workers can rate companies, communities, and building departments, for compliance with these standards systems and therefore help consumers and communities to make informed construction improvements and purchases. Those references recommend consequential digital activism to help consumers, communities, investors, and “good actor” building industry professionals to independently assess the performance and accountability of all parts of the building supply chain, from research to consumer consumption. The direct consequences need to lead to better decisions about purchases, penalties, and punishments. O. Knowledge Bank Standards All construction data should be entered into online knowledge banks (i.e. production servers as contrasted to development servers) that can be used to analyze construction. That structured evidence must be passed down to future generations. These knowledge banks aggregate and analyze all of the data in a network. Future references will discuss how these knowledge banks will evolve (i.e. semantic data, forecasts) to support future decision making needs. The flexibility offered by DevTreks in documenting construction means that networks need to develop “rules” explaining the “standards” that should be followed by clubs in their network. The “standards” make it possible to build knowledge banks. Summary and Conclusions Clubs using DevTreks can start to carry out the basic analysis of construction. Clubs can solicit help understanding construction better and share structured evidence explaining construction. Networks can build knowledge banks that explain construction and pass that knowledge down to future generations. The result may be home builders that get higher returns, homeowners that have fewer complaints about new construction, taxpayers who get higher returns from public construction investments, farmers who understand the best way to renovate barns, aid workers who figure better ways to build decent and affordable emergency shelters, building departments in developing countries that do a better job of monitoring and evaluating construction, policy makers that advocate climate change-resilient housing policies, and people who improve the sustainability of their lives and livelihoods. Footnotes 1. Analysts have developed a large number of techniques for analyzing construction. This reference introduces basic construction analysis. Some of the more advanced techniques can be found in the Performance and Social Performance tutorials. 2. While working as a county supervisor for the USDA, Farmers Home Administration, the author helped to finance several hundred low income houses Imperial County, California, in the 1980s. A routine part of the job was approving and revising plans and specifications, inspecting and approving construction, interviewing loan applicants, approving home loans, disbursing funds according to construction progress, and liquidating loans. 3. The Earned Value Management 1 tutorial demonstrates how even summary data, such as the summary costs and returns for a sports stadium, can supply sufficient transparent data to make informed decisions involving the benefits and costs of construction. 4. DevTreks is fully aware that these generic benefit estimates are unsatisfactory in many construction analyses, such as the benefits of NPS investments in national parks. Several references (i.e. Benefit Cost Analysis 1, Life Cycle Analysis 2) discuss the role of “domain-specific” calculators and analyzers to deal with these shortfalls. The Technology Assessment and Performance Analysis tutorials demonstrate how to use generic algorithms to complete more advanced analysis. 5. The use of URIs depends on good naming conventions. Care is needed to copy and paste the URIs correctly –even DevTreks has had trouble copying some URIs. The solution is to use simple naming conventions. Use the description field of all elements to explain further details. The bigger picture, of course, involves the historical storage of this data. Will these URIs work in 50 years? What about 200 years? The institutions storing this data need vision and resources (and some moxie). 6. Please refer to the Agricultural Production Analysis 1 reference for a more thorough discussion of issues associated with “large data” management. 7. The author admits to a selfish reason for including this national park example. He likes to hike and backpack. But his knees no longer like climbing over or around downed trees on the trail. As a side point, while working as an agricultural economist with the USDA, Natural Resources Conservation Service, he worked directly with the NPS on at least one watershed improvement project (Clear Creek, California, USA). References United States Department of Interior. National Parks Service. Cost Estimating Requirements Handbook. February, 2011. United States Government Accountability Office. Applied Research and Methods. GAO Cost Estimating and Assessment Guide. Best Practices for Developing and Managing Capital Program Costs. March, 2009. References Note We try to use references that are open access or that do not charge fees. Improvements, Errors, and New Features Please notify DevTreks (devtrekkers@gmail.com) if you find errors or can recommend improvements. Video tutorials explaining this reference can be found at: https://www.devtreks.org/commontreks/preview/commons/resourcepack/Construction Analysis 1/474/none/ DevTreks –social budgeting that improves lives and livelihoods 1