Building Industry Game

B.I.G.http://cmweb.caed.calpoly.edu/big41 - Building or http://cmweb.caed.calpoly.edu/big51- Building/Heavy

AssociatedSchools ofConstruction

COnstruction INdustry Simulation

COINS

Faculty of Civil EngineeringDepartment of Economics and

Management

CZECH TECHNICAL UNIVERSITY IN PRAGUE

COnstruction INdustry Simulation

(COINS)

Past Company Sponsors

2003

2004

2005

Under Construction

2006

2009 - 20112008

• A computer based construction

management game.• Participants play the role of contractors.• Players compete in a market with

variable demand for construction work. • Both bid and negotiated work is available

to the companies.• This is not a cost estimating exercise..

Overview

If not an estimating game what is it?

• A bid strategy simulation• A project management simulation• A construction company simulation• A construction accounting simulation• A company strategy simulation• All of above and more

Overview

Where & What is the learning?

Overview

The learning happen as the students begin runningtheir companies, having success and equally makingmistakes along the way.

The Instructor fills in the gaps. All programs in ConstructionManagement have areas that are stronger than otherareas, also in a capstone setting this is the only instrumentthat shows the connection between all of the elements.

Instructor Parameter:

The instructor can change just about all the basic defaults to satisfy the instructors own ideasof how the game should be played.

Types of Projects available• Private Apartments• Public Apartments• Private Schools• Public Schools• Private Hospitals• Public Hospitals• Private Offices• Public Offices• Private Industrial• Public Industrial

Game Detail

The Market Place Has both:Building and Heavy Construction Projects.

Also Projects fall into two catagories.

• Negotiated Projects– Non-bonded

Private

• Bid Projects– Bonded Public– Non-bonded

Private

Game Details

Each Project is made up of:

• Nine Activities• Each project has it’s own schedule• The cost and overall schedule is

determined by the methods picked for each activity.

• Each activity has 5 different methods to pick from.

Game Details

All Building Projects have the Activities names:Each job will have nine activities:

Game Details

– Excavation– Foundation– Basement– Framing– Closure

– Roof– Siding– Finishing– Mechanical and

Electrical

All Heavy Projects have the Activities names:

• Every activity has five different methods.• Each method has a different cost & labor

productivity (faster productivity methods

usually have higher costs). • Companies must select a method for each

activity, applying some kind of overall

strategy.

Activity Methods

Game Details

Game Play

• Form multiple student teams.

• Each team plays the role of a construction firm.

• Each team is given a certain amount of capital at the start of the game.

Formation of Teams:

• Time is represented as "periods," each

period being two months of real-time.• The period is advanced once or twice

per week.

Game Play

• Between one and ? new jobs are

available for bid each period.• Teams are given quantities, expected

production, and costs for each activity on

every job available for bid.

Game Play

• Companies must decide which jobs to bid

on, select a method for each activity,

determine their direct cost, then settle on a

bid price by adding mark-ups and desired

profit.• Internally simulated contractors also bid on

every job to keep the players prices within

reason.

Game Play

Process of Bidding

Game Play• As the period

advances, the computer evaluates bids on every job and announces the winners.

• Players evaluate the results and attempt to interpret their competitors strategies as the game progresses.

Game PlayThe lowest bid does not necessarily win.

Factors taken into account:• Bids are rejected if

below a minimum amount (calculated by the computer).

• Firm must have cash-on-hand at least 5% of the bid amount.

• Company may not be overloaded with too many other jobs.

• All companies have a bonding limit that may not be exceeded.

• At the end of every period, each team

receives a:1. Progress Report

2. Complete Dynamic Financial Reports

• Gives a complete analysis of the work

accomplished and the financial result to

date.

Game Play

• The production rate for the work

packages selected on each activity.• Uncertainty factors:

1. Weather conditions

2. Labor availability

3. Fluctuating cost of materials

Game Play

The amount of work completed

during a period depends on:

• Direct construction costs.• Bidding costs.• Consulting services.• Liquidated damages.• Interest on borrowed money.

Game Play

The end-of-period financial reports

show expenses incurred for:

Game Play

• Players must monitor their financial position as work progresses, and bill for their progress payments.

• Also, teams must create strategies to improve their bonding limits.

• A record of successful projects creates an opportunity to obtain negotiated work.

Game Play

Changes in company ratios are also logged along with changes to the company’s appraisal metrics:

• Financial liquidity• Financial success• Responsibility• Pace• Ethics• Name recognition

• Pay a consulting fee to receive information

on weather forecasts, material prices, labor

and material availability, and market

projections for future periods.• Apply for loans.• Make a change and specify a different

method for the following periods.• Use overtime to speed up certain activities

(greatly increasing the labor costs).

Game PlayAs the game progresses, teams have the following options:

• At the conclusion of the game, the

instructor can either:• have the simulation forecasts the expected

results of any on-going projects or• use the actual results at that time.• a financial report shows the final total worth

of the firm in either case.

• Maximization of profit & strong financial

condition are main objectives but:• additional emphasis can be placed on the

company metrics.

End of Play

Checkmateand

The End

AssociatedSchools ofConstruction