AEC-Real property Devlopment

AEC – EPC Real Property Development Industry

Architecture, Engineering & Construction (AEC) and Engineering, Procurement & Construction (EPC) Industry is targeted based on the following considerations:

Bankruptcy Proofing in Down Economy:

The world financial crisis has made property development projects scarce. This requires that project delivery be performed effectively, efficiently and economically and that there is more pressure on service providers to perform cheaply.

North America has already seen a couple of waves of bankruptcies resulting from companies failing to arrive at lower operational costs. The pressure is to keep bids lower than the competition.

A company which was thriving with 10 projects a year in an up-market trend was able to take the risk of losing money on 2 projects due to negligence. But in the down-market of the present time with only 3 projects a year, this is a high risk mistake.

Lower bid price not only requires companies to work with lower operational cost but also without risk contingencies in the bid. This is the time for all companies to be scientific in approach rather than using outdated rules.

The purpose of TBS’s scientific approach is not to give the perception of precision. By scientific we mean that companies have to keep approximating the plan as it progresses and either be ‘grossly right’ or ‘precisely right’ at any given time.

Project Generation Systems:

Projects were created in the late 20th and early 21st century on the premise that as the population was growing at such a rate that property values would be higher at the time of completed construction than at the start. However we have realized that future population growth will not continue at this rate. The same commercial valuation prediction cannot dictate the next generation of projects. The escalating value of existing buildings cannot be maintained.

There is a tremendous need to introduce newer systems that create growth and redefine growth. The power of the commercial and corporate world due to its independent eco-system (of raising market needs, creating projects, providing its own finances and then making it sustainable by giving it back to the market) is under serious threat.

The Right Time for the Industry:

The need of integration for multiple disciplines is realized in the AEC industry. Building Information Modeling (BIM) is an important attempt to arrive at such integration. However, it is a one sided attempt. It arises from and is centered around design. Although important, design cannot be the sole center of interdisciplinary integration. TBS is engaged in Research and Development exercises ensuring that the multiple centers of the industry and structured decision making is controlled by the participants who are best positioned to do so.