The FM mismanagement problem defined simply is the lack of leadership among real property owners and the associated lack of robust, programmatic processes across the AECOO sector (AECOO-Architecture, Engineering, Construction, Owner, Operator).
Unless the fundamental root causes are addressed, there is little hope of for ending the endemic economic and environment waste associated with building and other forms of physical infrastructure. The latest stimulus package, like those before them, will not even address the issue.
#1. Public and private sector real property owners pay the bills, thus are ultimately responsible.
#2. There is not a single public sector organization that has a robust, proven programmatic planning, procurement, and project delivery method that provides financial visibility and transparency, and the ability to support decision-making to assure the consistent quality, on-time, and on-budget outcomes, system-wide. (A fact support and noted for decades by several GAO Studies.)
#3. Levels of waste currently average 20%-50%+.
#4. All of the above are present despite the availability of proven solutions.
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Care to learn more about solutions?
Bad data is leading to poor decision-making and outcomes. Thirty percent of respondents indicated that more than half of their project data is “bad” and results in poor decision making more than 50 percent of the time. Decisions made using “bad data” are estimated to have cost the industry $88.69 million in rework alone, accounting for 14 percent of all rework performed in 2020.
References:
Watanabe-Crockett, Lee. “The Daily Data Diet: Information Creation in Numbers.”
Global Citizen. 2016.
Famous, Gabriele. “Three Technology Trends Shaping the Future of Design and
Construction in 2018.” Aconex Group. 2018.
Hill, Brian L. “Digging for the Big Data Gold in Today’s Construction Projects.” Xpera Group. 2017.
“2017 Construction Technology Report.” JB Knowledge. 2017.
Marr, Bernard. “How big data and analytics are transforming the construction industry.” Forbes. 2016.
Wood, Chris. “Betting on Big Data: How Construction Firms are Leveraging Digitized Job Sites.” Construction Dive. 2016.
“How to Break Down Data Silos: Problems and Solutions.” Status. 2018.
“Construction Disconnected. 2018 Industry Report.” PlanGrid and FMI. 2018.
The 5 Essential Components of a Data Strategy.” SAS. 2018
PS:
Strategies in place to collect, manage, and analyze usable data drive benefits such as fewer project delays and budget overruns, less rework, fewer change orders and reduced safety incidents.
In the construction sector, gross margin has averaged 17.08-23.53% over 2020. However, margins can be as high as 42% for remodeling, and 34% for specialty work.
| Type of construction | Industry margin |
| New construction | 20-25% |
| Remodeling/repair/rehabilitation | 34-42% |
| Specialty work | 26-34% |