Associated
Schools of
Construction
Building Industry Game
COnstruction INdustry
Simulation
B.I.G.
COINS
http://cmweb.caed.calpoly.edu/big41 - Building
or http://cmweb.caed.calpoly.edu/big51- Building/Heavy
COnstruction
INdustry
Simulation
(COINS)
Faculty of Civil Engineering
Department of Economics and
Management
CZECH TECHNICAL UNIVERSITY
IN PRAGUE
Past Company Sponsors
2006
2008
Under Construction
2009 - 2011
2005
2004
2003
Overview
•
•
•
•
•
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?
The learning happen as the students begin running
their companies, having success and equally making
mistakes along the way.
The Instructor fills in the gaps. All programs in Construction
Management have areas that are stronger than other
areas, also in a capstone setting this is the only instrument
that 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 ideas
of how the game should be played.
Game Detail
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 Details
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
Each job will have nine activities:
All Building Projects have the Activities names:
–
–
–
–
–
Excavation
Foundation
Basement
Framing
Closure
–
–
–
–
Roof
Siding
Finishing
Mechanical and
Electrical
All Heavy Projects have the Activities names:
Game Details
Activity Methods
•
•
•
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.
Game Play
Formation of Teams:
• 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.
Game Play
•
•
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
Process of Bidding
•
•
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
• 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 Play
The 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 cashon-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.
Game Play
•
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 amount of work completed
during a period depends on:
•
•
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 end-of-period financial reports
show expenses incurred for:
•
•
•
•
•
Direct construction costs.
Bidding costs.
Consulting services.
Liquidated damages.
Interest on borrowed money.
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
Game Play
As the game progresses, teams have the following options:
• 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).
End of Play
•
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.
Associated
Schools of
Construction
Checkmate
and
The End