VE and Nude ceiling

<Value Engineering >

I learned about Value engineering (VE). The definition of Wikipedia is "a systematic method to improve the value of goods or products and services by using an examination of function." In the US, law regulates value engineering. Public Law 104-106 states, "Each executive agency shall establish and maintain cost-effective value engineering procedures and processes."

GE made vale engineering during World War II because there are shortage of skilled labor and raw material. In value engineering, function is the most important part because function should be satisfied with low price. Now a day, value engineering is essential consideration for construction management and project management.

<Construction Site>

Texas Orthopedic

In the last class, we visited the construction site of Ridgemont. Ridgemont is building the hospital, Texas Orthopedic. That was quite big. This was the first time visiting to hospital construction site. Actually, when I see around the hospital, I was so interested in ceiling. This is very popular interior method of construction.

All of the functional structural elements of the building are showed up. I was able to see pipes and plumbing devices, ducts in the ceiling. I don't know the name of this construction method. Thus, I want to call it nude ceiling. The most famous nude ceiling I know is Pompidou Centre in Paris. This building is the first one that adopted a nude ceiling. This is the largest museum for modern art in Europe. And, It was opened in 1977. The Italian architect, Renzo Piano, designed this center. The New York Times explained this design as "turned the architecture world upside down". Visitors can see all of the functional structural elements of the building like the hospital of Texas Orthopedic.

Pompidou Centre in Paris

RFID technology, the revolution of CM

We have studied about CPM(Critical Path Method). This is the core concept of construction management. When I heard about this, the new management technology for construction came into my mind. We call it U(ubiquitous)-tech in Korea. The key tech is RFID(Radio Frequency Identification) tag. This tech is used in big construction site in South Korea. Maybe it is same in the US. 

RFID tag

The advent of RFID technology is creating better opportunities for improving the material and labor management function in the construction industry. Traditionally, delivered material has been used to be counted and checked manually. Someone should check delivered item. Additional time and effort are needed to stock those material. And, both the contractor and the owner have to verify that the materials have been installed and physically input that information into the project's status reports. And, operators and field engineers spend hours each month recording and reporting that each piece of equipment is in use. Usually, a field supervisor spends 40% of his time to manage materials. 

However, RFID technology changed all. RFID technology has advantages over bar code such as 1)non-contact communication, 2)non-line-of-sight communication 3)expanded data storage 4)writable capability 5)ease of incorporation in automated systems 6)readability from the sunlight 7)durable form the harsh environments like construction site(Jaselskis et al, 2000)

reader

The RFID tag is installed by manufacturers. It seems like their ID card. When the material ,in which RFID tags are installed, delivered to construction site, its information could be read automatically by reader. Thus, a field manager doesn't need to check manually. It save enormous time in construction site. This technology is called as the revolution of construction management. 

Samsung headquarter in Seoul

When I was in South Korea, I had opportunities to report this new technology. I visited the construction site to build samsung headquarters. The most materials are managed by RFID technology. They can reduce time and money using this technology. Also, they manage labor force by RFID tags. All workers has their own RFID card. Thus, the construction company can know automatically who works now and leaves construction site. 

This technology is expensive to adopt. Thus, small company and small construction sites are not able to use it. But, some day, I believe this technology will come into general use in construction industry.    

the Builders Daily

Once a week, I am sending articles about American real estate industry to Korean newspaper I used to work. The name is the Builder Daily(www.cnews.co.kr) which is only one daily newspaper for rea estate and construction in South Korea.

This week, I sent articles about falling down the price and sale of existing houses in the US. The other article is about the most expensive housing market in the US.

Some day, I want to introduce about campus development at UTA.

This is my picture which is on the newspaper

Visiting Construction Sites of Ridgemont

In June 18, we had a class in office of Ridgemont, the commercial construction company. They provide many construction related services such as construction management, design build, general contracting, pre-construction, sustainable design. I have visited many construction companies for reporting when I was in Korea. However, the Ridgemont is a little bit different from Korean construction companies. The Ridgemont looks like a design company because the interior décor is very simple and refined. But, working process for bidding and construction is quite similar with Korean construction companies. Biddings for construction project in Korea are processed by Internet. Construction companies don’t need to meet owners before they won the bidding.

Ridgemont office in Irving

I have felt that bidding is like war without sound. And, Seth who works in Ridgmont explained that they do business with 75% of repeat customer. It is very high percentage. It means the relationship of Ridgemont with customer is very close. And, the construction performance of Ridgmont is good enough to satisfy their customers. If I were a developer, it is good idea to give a work to Ridgemont.

Seth explained very concisely about construction industry. I could understand the work of project manager and project engineer, etc. I think Construction management is very similar with project management because their purpose is same. The purpose is shortening construction period and lowering cost.

SPROUTS FARMERS MARKET

We visited construction sites with Seth. First site we visited was Sprouts Grocery store. The construction is almost done. They lower the cost and shorten time with panels of wall. It is also used in Korea. Korean construction companies are very famous for shortening time to complete their project. And, I realized that most workers in this construction site are Latinos. In Korea, construction cannot be progressed without foreign workers from china, Philippine, Vietnam. 

Next, we visited housing construction sites. The house was so cool. But, I feel very stuffy because the space is divided many times. The living room was very small. I read an article about sole and multiple house construction in America is declining. Thus, I think construction companies should focus on luxury house and custom design house to get rich people as a customer.

Highland Park in Dallas

It was first time to visit construction sites in the US. It is very good experience for me because I want to work as a developer someday. Thanks Seth and Ridgemont.  

CM is very precious for my future.

The Youngjong grand bridge in Korea. The longest in Korea.

I used to be a reporter in South Korea. The name of my company is the Builders Daily. This is the only one daily newspaper for real estate and construction in Korea. Thus, I was familiar with construction and CM(construction management).
I visited over 20 construction sites including subway, skyscraper building, amusement park, and highway. And, I was charged to cover the construction management companies and association. That’s why the president of CMAK(Construction management association of Korea) wrote a recommendation letter for me when I entered at UTA.

I am so interested in CM. But, I do not have much chance to learn about CM. I had just written many articles about CM industry. Those are about which company got a contract for some projects and impact for construction industry. Therefore, I had a desire learn about CM in detail.
When I listened the lecture about Construction management (REAE 5317) of Dr, Russell Peterson in the first class, I was so happy because I could get a very precious knowledge for my future. My purpose studying real estate is to be city redeveloper. Thus, the knowledge and information about construction and construction management are very important for me.

Time Square shopping center in Korea

And, I thought the most of system in construction industry and terms are very similar between the US and Korea. Thus, I was easy to understand.
First of all, the relationship between general contractors and subcontractors is exactly same. In Korea, sometimes, subcontractor gives a bribe to powerful general contractor to get a contract with a good condition.

Bidding system is also very similar. These days, Korean construction project seek GCs by open bidding. But, there is a barrier to bid some projects. That is the gross construction amount of last year. According to this amount of contract in last year, the participation condition to construction projects is decided. This is pre bid qualification that we dealt with in last lecture. If that amount of money is too low, the company cannot participate big project because the owners are not able to believe ability of the GC to fulfill the project.

The symbol of Korean construction is apartments.

And, fast track is one of the most important concepts for construction management. The main role of CM is to reduce the period of construction. Some CM companies could get more money from owner, if they reduced the period of construction. Thus, many CM companies are using fast track techniques. And, the most valuable asset for CM companies is fast track knowhow.
And, I can remind from this lecture that the owner and contractor, designer should be cooperated in order to make good building. It is because good design, good support, good performance is needed for good building. Thus, the three parties have to take their responsibility and liability.

In short, I can learn basic concept of construction from this lecture. This is essential for leaning CM and developing.

The biggest CM company in Korea is Hanmi Parsons.

Next time, I want to introduce Korean construction companies and CM companies to explain current role of GC and CM companies for construction project.