AN APPLICATION OF COMPUTER-BASED INFORMATION SYSTEM FOR RESIDENTIAL CONTRACTORS

Jay Christofferson and Matt Syal

Department of Industrial Sciences

Colorado State University

Fort Collins, Colorado

Introduction

Construction can be described as a process of converting inputs, such as capital, labor, material, and technology, into outputs such as products and services. Koontz, O'Donnel, and Weihrich (1984) selected a systems approach to their representation of management in construction (Figure 1). The construction operation is described as being a transformation process. Through planning, organizing, staffing, leading, and controlling, inputs from the environment are transformed into an output (product) for use by the environment. Their approach demonstrates that the successful transformation process depends upon an effective information system.

The information system "pervades the total managerial process: It integrates the managerial functions and links the enterprise with its environment." It is through this system that information is organized and communicated throughout the organization and control is maintained over its operations.

According to Clydesdale (1993), the National Association of Home Builders estimated that there are approximately 29,000 individual activities and items that must be accounted for during the construction process of building a home. To remember and keep track of these activities and construction items for one house is a significant task. Forgetting one principal item could cost thousands of dollars extra to repair later. Other costs include lost time, wasted materials and effort, lost credibility, customer dissatisfaction, and a blemished reputation. When a contractor builds 20, 30, 40 or more homes per year, these problems become increasingly harder to control.

The majority of residential contractors own small or medium sized businesses where one or two people control the construction process. Communication becomes the critical aspect of the process. Managers and superintendents become flooded with information which they must sift through, interpret, process, and distribute. Technology that would help the processing and flow of information would increase builder's proficiency and productivity. The objective of this paper is to describe one way in which technology can be combined to help solve the communication problem faced by a medium sized residential builder.

Use of Computer Technology in the Construction Industry

In the early 1980's, micro-computers introduced the potential for storing, processing, and distributing information to the construction industry. Since then, technology has improved, allowing for greater storage capacity, faster processing, and better and faster ways of distributing new information. After a decade of computer availability, relatively few contractors use this tool to its full capability for their businesses. If used at all, the computer is used for accounting and sometimes for estimating, CAD, or sched­uling. Office staff will often make use of word processors for writing letters and other documents.

Other forms of technology have been developed that could further assist in presenting and transferring information. Modems allow the transmission of digital data across telephone lines. FAX machines interact with the modems to feed and receive information the modems transmit. Scanners, through Optical Character Recognition (OCR), can convert hard copy (print) into digital code which can be further processed in the computer. Printers do the opposite, that is, they convert digital code into hard copy. This technology has the potential of being used in a systematic way to help the contractor to be more efficient and competi­tive.

Contractors who have purchased technology to aid the building process, often do not stay current with new ad­vances. Many wait for the "perfect" tool. When new technology is introduced, it is generally very expensive. As competition begins to affect the marketplace, prices fall dramatically. Many contractors wait for cheaper prices before they purchase a product. What they don't realize is that by the time prices are at a low point, the particular technology is old and in many cases, outdated. Perhaps, a more serious problem is, that while waiting for the 'perfect' technology at the right price, the contractor's own capabili­ties to use these available tools do not improve. Technology builds upon itself. By learning skills associated with a new technology, it is easier to keep up as upgrades are devel­oped.

Communication Problems

There are some contractors who recognize the need to use technology to stay competitive. Whether they are progres­sive in their attitudes, or whether they have been forced to use technology to remain competitive, they look to new technology to solve many day-to-day problems. These problems can be solved through a systematized approach. Technology is well suited to handle systematic problems. Computers, for example, do well what humans would like to do well, but don't. They store and retrieve facts accurately, do calculations quickly, organize efficiently, and perform routine sequences over and over again without error.

There are many tasks in residential construction management that contractors do over and over again. Even though each house is different with distinct combinations of colors, styles, and configurations, the process that a contractor follows to build the home is nearly identical for each house. If individual systems can be identified, modeled, and programmed, then the whole process becomes more effective. Information is processed faster and fewer mistakes are made which allows the contractor more time for decision making.

Construction researchers have used technology to solve problems involving scheduling, estimating, cost control, and accounting (De La Garza 1990; Stewart 1986; Syal 1992x). However needed and useful these advances have been, there are many other potential uses that have been overlooked or ignored (Syal 1992b; Williams 1992). With the continual flood of new technology, contractors are able to solve problems now that they couldn't solve with technology only a year or two ago. It will be a continual and evolutionary process to solve construction communication problems using current technology.

A Specific Communication Problem

One area of construction which could be systematized, deals with the communication link between the customer, construction manager/superintendent, and the subcontractors and suppliers. For each home, consisting of approximately 100 activities, construction managers contact about 50-60 subcontractors and suppliers. When building 40 - 80 homes per year, and combined with all of the other responsibilities related to the manager's job, this communication task alone could be almost overwhelming.

A common direction that many contractors take is to hire additional project and office stag This adds overhead and costs to the project which may reduce profitability. Control is harder too, because of the extra layer of supervision. Because contracting is such a demanding profession, most residential contractors have not taken the necessary time to integrate technology into their work. Some, simply do not have the necessary skills to do so. It may be that contractors only need to be shown the possibilities for saving time and money through technology before they commit themselves to pursuing its use.

Information Flow

The flow of information from the pre-construction conference, in which the builder meets with the home buyer to find out what the customer wants in the home, to the distribution of this information to the subcontractors and suppliers, is shown in Figure 2. During the pre-construction conference, the builder makes note (on the Customer Specification sheet) of the colors, styles, and other options that the customer has chosen for the home. The lot # is selected at the time of purchase, but that information needs to be passed on to the subcontractors and suppliers. The builder can then determine, through negotiation or competitive bidding, which subcontractor or supplier will be used for each activity. The information is then compiled on a document to be sent to the appropriate supplier or subcontractor.

Proposed Information System

The information flow model shown in Figure 2 was used as the basis for developing an information system. A standardized approach using readily available software and hardware was used to demonstrate the feasibility of the system which could help solve the above-noted communication problem for a residential builder. The software chosen for use in this model is Microsoft Word for Windows version 2.Ob (Microsoft 1991) and Microsoft Excel version 4.0 (Microsoft 1992) . These programs were chosen for this model because they support Object Linking and Embedding (OLE), which allows integration of information between Windows programs on a microcomputer. This model could also be implemented using other computer systems with object linking capabilities such as, Open Doc on Macintosh computers.

The minimum hardware recommended for use with this model is a PC compatible computer with a 386 microprocessor. The computer should be equipped with at least 4 megabytes (MB) of random access memory (RAM), 8-16 MB preferred and should operate at 20 megahertz (MHz) speed or faster. Those planning to implement a fully expanded operating system of the model would do well to use a 486 or Pentium microprocessor which operates at speeds of 50 MHz or faster and has 16 MB of RAM.

To fax information to subcontractors and material suppliers, Dehina's Winfax Pro is recommended (Gralla 1993x) because of its versatility. Winfax Pro's interface is instantly accessible for occasional users, yet it is sophisticated enough to work well for demanding users.

A fax modem was chosen for the system rather than a fax machine. The fax modem is cheaper than a conventional fax machine. The fax modem does not need paper as the medium because it receives and sends documents directly within the computer. If a hard copy is required for record keeping, the document can be sent to a printer from the computer. A fax modem is required to convert digital data from the computer to an analog signal for transmission across telephone lines. The faster the modem, the less phone time is used and for long distance phone calls, the savings can be substantial with a fast fax modem. The Intel SatisFaxtion Modem / 400, an internal modem, was rated best over-all for internal or external fax modems by PC Computing (Gralla 1993b). It was rated for performance, advanced options, and price.

The Solution Model

Two databases were used for this model (For selected printouts of the model, see Appendix), a Subcontractor Database which included names, addresses, and telephone numbers of subcontractors and suppliers, and a Lot / Block- Address Database which included addresses for the lot and block numbers in the various subdivisions. The Customer Specification Sheet is the main worksheet for the builder. A button macro (Addr.) automates the lookup of the address

for the building lot. It works in conjunction with the Lot / Block- Address Database. As information about the home is obtained from the homeowner, the builder can easily select colors, styles, and other options for the different aspects of the house. Look-up and Reference functions were used to facilitate the selection process.

Once the selections are made, the builder can switch to the Current Subcontractor / Supplier List which is a list of subcontractors and suppliers to be used for construction on this particular house. A series of button macros, one under each activity, are used for selection of alternative subcontractors / suppliers. Once a button is selected, the macro automatically goes to the Subcontractor Database and selects all of the subcontractors or suppliers for that activity. The builder selects the subcontractor or supplier he wishes and the information is automatically updated on the Current Subcontractor / Supplier List.

A standard form for each subcontractor or supplier was made in Microsoft Word. Each form has fill-in-the-blank spaces where the variable information goes. In normal practice, all of the variable information would be entered manually. This is done automatically through OLE in this model. Information about work activities, color selections, styles, options, mailing addresses, lot numbers and addresses are linked from the Customer Specification Sheet and Current Subcontractor List. As information changes on these two forms, it is automatically updated on the Word documents.

The documents can then be printed as normal, but instead of having the Print Setup function set to the printer, it would be set to the fax modem. The document would be sent directly to the home or office of the subcontractor or supplier. Each page can be sent in a matter of seconds as opposed to phone calls that could take 5 to 10 minutes each, not to mention callbacks when the subcontractor is not reached.

Summary

The proposed information system, which utilizes current computer technology to improve proficiency in the construction industry, is only a sample of the ways technology can be applied to solve builder's communication problems. Such a system could be used to assist the communication needs of any residential contractor, but the scope and complexity of the information system would depend upon the types of homes built (custom or track). It is a time and cost saving system which in a real way improves the efficiency of the residential builder and allows him to build more homes without having to hire additional help. As contractors visualize the possibilities of using technology to solve their problems, they will be more receptive to adopting its use.

The readers should keep in mind that advances in software and hardware will lead to continual refinement of this system. The prototype functioned well on a computer system equipped with a 386 microprocessor running at 20 MHz with 6 MB RAM. A fully functional system would require more speed and a faster processor and more RAM. Also, Microsoft recently released version 6.0 of Word for Windows which has a complete implementation of OLE 2.0 (Sullivan 1993). This feature will make the linking of information even easier. It does however, require nearly 30 megabytes of hard disk space for a complete installation.

Areas of Future Research

This system could be expanded to include other segments of construction, for example, the resulting activity dates from scheduling software could be linked to the Word documents to give the subcontractors and suppliers an idea of when their services would be required. Subcontractors and suppliers would have a better indication of how to balance their time and resources.

Cost control for residential construction projects could be handled using the techniques described above. This would allow for instantaneous feedback giving cost variances of the project. The cost control system could be tied into the estimating, which many residential contractors routinely do on a spreadsheet.

Acknowledgment

The authors would like to thank Celebrity Homes, Salt Lake City, Utah for providing access to their operations and other information needed for the development of the proposed information system.

References

Clydesdale, Tyler. (1993). Quick Management Systems, Home Builder's Institute - Washington, D.C. Nov. 4,1993

De La Garza, J.M., East, E.W., and Yau, N. (1990). A Knowledge Engineering Approach to Analysis and Evaluation of Construction Schedules. USA‑CERL Technical Report P-90/07, University of Illinois, Urbana-Champaign, IL.

Gralla, Preston. (1993a). Fast and Easy Faxes, PC Computing, October 1993, 230-246.

Gralla, Preston. (1993b) Fax - Modem Road Map. PC Computing, October 1993, 248-264.

Koontz, H., O'Donnel, C., and Weihrich, H. (1984) Management. 8th rev. ed., McGraw Hill Book Co., New York, NY.

Microsoft (1991) User's Guide Microsoft Word for Windows. Microsoft Press, Redmond, WA.

Microsoft (1992) User's Guide Microsoft Excel. Microsoft Press, Redmond, WA.

Stewart, RD., and Stewart, A.L. (1986). Micro estimating for Civil Engineers. McGraw Hill Book Company, New York, N.Y.

Sullivan, E. (1993). Word for Windows Makes Strides with Version 6.0. PC Week. November 15, 1993. 164.

Syal, M.G. (1992a). Construction Process Knowledge Model to Assist Method Selection in Project Planning.

HRC Series Report No. 23, Housing Research Center, The Pennsylvania State University, University Park, PA.

Syal, M.G., Grobler, F., Willenbrock, J.H., and Parfitt, MK (1992b). Construction Project Planning Process Model for Small‑Medium Builders. Journal of Construction Engineering and Management, American Society of Civil Engineers, 118(4), 651-666.

Williams, Glenn P. (1992). Optimum Computerization for the Small-Volume Home Builder, A/E/C Systems Computer Solutions, Winter-Spring 1992, 54-56.