partnering magazine november/december 2014

Partnering year in reviewIPI’s Top 10 of 2014

page 6Committee

Spotlight

INSIDE:page 14Managing

Uncertainty

Issue 5November/December 2014

2 Partnering Magazine November/December 2014 www.partneringinstitute.org

World-Class Innovators. Landmark Bui ldings. Inspir ing Per formance.

EVERY SUCCESSFUL PROJECT BEGINS WITH A STRONG

PARTNERSHIP.

At Hensel Phelps, our high performance teams understand the importance of integrating our client’s vision with the design and construction of their project.

It requires a synthesis of effectively managed professionals that understand working in a team environment with one overriding goal: to provide the best value, on time and on budget.

For more information scan this code.

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www.partneringinstitute.org November/December 2014 Partnering Magazine 3

INTERNATIONAL PARTNERING INSTITUTEIPI is a non-profit 501(c) 3 charitable

organization that is funded by our

members and supporters who wish

to change the culture of construction

from combative to collaborative.

Phone: (925) 447-9100

BOARD OF ADVISORSJohn Martin, San Francisco International Airport

Larry Anderson, Salisbury University Center

for Conflict Resolution

Roddy Boggus, Parsons Brinckerhoff

Pierre Bigras, PG&E

Larry Eisenberg, Ovus Partners 360

Michael Ghilotti, Ghilotti Bros, Inc.

Richard Grabinski, Flatiron West, Inc.

Dan Himick, C.C. Myers, Inc.

Randy Iwasaki, Contra Costa Trans. Authority

Mark Leja, Caltrans

Pete Matheson, Granite Construction

Geoff Neumayr, San Francisco International

Airport

Jim Pappas, Hensel Phelps Construction Co.

Zigmund Rubel, Aditazz

Ivar Satero, San Francisco International Airport

Stuart Seiden, County of Fresno

Thomas Taylor, Webcor Builders

David Thorman, CA Div. of the State

Architect, Ret.

John Thorsson, NCC Construction Sverige AB

Len Vetrone, Skanska USA Building

EXECUTIVE DIRECTORRob Reaugh, MDR

FOUNDER & CEOSue Dyer, MBA, MIPI, MDRF

EDITORIAL OFFICE: SUBSCRIPTIONS/INFORMATIONInternational Partnering Institute

291 McLeod Street

Livermore, CA 94559

Phone: (925) 447-9100

Email: [email protected]

www.partneringinstitute.org

DESIGN/CREATIVEMichelle Vejby

Email: [email protected]

COPYRIGHTPartnering Magazine is published by the

International Partnering Institute, 291 McLeod

Street, Livermore, CA 94550. Six bi-monthly

issues are published annually. Contents

copyright 2014 International Partnering

Institute, all rights reserved. Subscription

rates for non-members, $75 for six electronic

issues. Hard copy issues are available

only to IPI members. Additional member

subscriptions are $75 each for six issues.

Postmaster please send address changes to

IPI, 291 McLeod Street, Livermore, CA 94550.

IN THIS ISSUE

4Executive Director’s ReportA year of great growth thanks to YOU!

8Facilitator’s CornerImprove your partnering success by keeping commitments to your stakeholders

18CEO’s MessageCollaborative Partnering: A Recipe for Project Success

CONTENTS

FeaturesNovember/December 2014 Partnering Year in Review

Committee SpotlightIPI’s Committees: working

together for change

6

Research RoundupGot Risk? A new Smart

Market Report’s findings

on managing uncertainty

in building design and

construction.

14

Partnering TOP 10 from 2014The TOP 10 Initiatives launched by

IPI in 2014 produce record results!

10

Cover photo courtesy of Nevada Department of Transportation–Carlin Tunnels Project.


to grow the understanding and increase the adoption of

Collaborative Partnering in the industry. In 2014, we have

really started to pick up steam.

Since January, IPI has grown more than 160%, taught more

than 400 owners, contractors, CM’s designers and facilitators

in our new Collaborative Partnering Orientation Training,

launched Partnering Magazine, launched a Professional

Facilitator Certification, presented at a half dozen conferences

around the United States, led in-person and web-based

roundtables all over the world, and have supported the

City and County of San Francisco—the world’s first City to

adopt structured partnering for all 6 agencies that deliver

construction projects. Our committees launched an Owner’s

Roundtable series that started with a collection of 35 Owners

and has expanded into a series of online webinars and

we have funded our first and second research studies in a

collaboration with the Michigan State University Construction

Management Program. We also grew our IPI Awards Program,

increased our fundraising, launched a new IPI Website,

and welcomed our new Director of Member Services, Lisa

The end of the year is a time for gratitude. As I reflect

on 2014, I recognize that this has been a very successful

year of growth and there are many individuals and

firms to thank for their tireless support of IPI’s Mission. Any

successful endeavor starts with its leadership, and ours is

no exception.

I will start by thanking our Founder and CEO Sue Dyer, for

her vision, tireless effort and for writing our organizations

foundational publications, including our first Owner’s Guide,

On Time On Budget. I would also like to thank IPI Board of

Advisors Chairman John L. Martin for his efforts in promoting

Collaborative Partnering in the Bay Area, the Aviation industry,

and the world—we would not have our stature without his

efforts. Next I need to recognize the IPI Board of Advisors—an

incredibly committed group of individuals with a common

vision to serve the industry, serve our organization, and have

some fun while doing it.

Every year, the IPI Board of Advisors sets goals and identifies

new initiatives to focus on to grow IPI and support our Mission,

EXECUTIVE DIRECTOR’S

REPORT

Rob Reaugh, MDR, IPI Executive Director

A Year of Growth— Thanks to YOU

Photo by Daryl Jacques, Jacques & Associates


Mayfield to serve all of you! Our Board Members have initiated

Training programs for their organizations, identified speaking

opportunities, sponsored events, and provided vision for each

and every one of these initiatives!

I am also grateful for our Committee Chairs who have been at

the epicenter of 2014’s key initiatives. I will lead off with a deep

appreciation for two great Partnering Champions, Mark Leja

of Caltrans and Dan Himick of C.C. Myers, Inc. These two have

served as our IPI Horizontal Construction Committee Co-Chairs

and have been serving double duty. They have been leading

our national group focused on expanding the Collaborative

Partnering Model across the U.S. and simultaneously serving

as panelists on our Owner’s Roundtables (along with Ivar

Satero of SFO International Airport). I would also like to thank

Larry Eisenberg of Ovus Partners 360 for his outstanding

leadership of our Vertical Construction Committee and for his

tireless work along with IPI stalwart David Thorman on both

the IPI Research Committee and the IPI Awards Committee.

These two individuals are a big part of the reason that IPI has

grown from its infancy and we are eternally grateful for their

contributions.

I would also like to thank Jim Eisenhart of Ventura

Consulting Group, who jumped at the chance to co-Chair our

IPI Facilitator PEG with Sue Dyer and immediately signed up

to be one part of our inaugural class of Certified Partnering

Facilitators. And last, but certainly not least, I would like to

thank our newest Committee Chairs, Geoff Neumayr (SFO)

and Roddy Boggus (Parsons Brinckerhoff) for the Aviation

Committee and John Thorsson (NCC Construction Sweden) and

Zig Rubel (Aditazz) for leading the International Committee.

I wish it were possible for me to list all of the outstanding

individuals who have contributed to make this a great year, but

unfortunately, I cannot do it here—please know I appreciate

your efforts to make IPI better.

When I arrived in 2011, our organization was celebrating

our second annual Awards Ceremony and we had 54

colleagues join us at SFO International Airport to celebrate.

Just three years later, we had a capacity crowd of 200 people

and a Keynote Speaker had flown in from Sweden to share

best practices in partnering used half way around the world.

To borrow from Mark Leja, “Partnering is a journey, not a

destination.” The path may not always be easy, and changing

an industry is no small task, but I am grateful to be on this

journey with you. Thank you again for supporting IPI and

Partnering Magazine, and have a blessed New Year!

As one of North America’s largest transportation and infrastructure contractors, our commitment to building the best is demonstrated in the projects we build and the partnerships we develop. Our success is dependent upon our relationships with owners, partners, designers, subcontractors and community members. Flatiron works closely with our partners to develop innovative solutions that benefi t everyone, and we’re proud of what we’ve created together. The more than 20 partnering awards Flatiron has won in the past decade serve as recognition of these relationships and

the resulting successful projects.

To learn more about Flatiron’s innovation in partnering visit

www.fl atironcorp.com

Interstate 880/State Route 92 Interchange Reconstruction

Hayward, CA

2012 IPI Partnered Project of the Year, Diamond Level


The 2014 IPI Committee Roundup

Horizontal Construction Committee

Launched in 2012 and co-Chaired by Mark Leja of Caltrans and

Dan Himick of C.C. Myers, Inc., the horizontal construction

committee is made up of owners, contractors, and designers

from all over the United States including seven Departments

of Transportation. In 2014, the Committee launched the

IPI Owner’s Peer Mentor Program, steered the IPI Owner’s

Roundtable and Webinar program, and are collecting “AHA!

Moments” to share Partnering success stories with the

industry. The Committee Members also have recruited and

supported key new agencies who are adopting Collaborative

Partnering including the CA Department of Water Resources,

Nevada DOT, Michigan DOT, the City and County of San

Francisco, and others.

Vertical Construction CommitteeLaunched in 2011 and Chaired by Larry Eisenberg of Ovus

Partners 360, the Vertical Construction Committee is comprised

of owners, contractors, designers, CM firms and other

construction professionals. In 2014, this committee promoted

the IPI Collaborative Partnering Model by supporting the City

and County of San Francisco Partnering Summit, recruiting

owners to the IPI Owner’s Roundtable series, and developed

the IPI Owner’s Peer Mentor Program. This Committee is also

developing a White Paper for Municipalities who wish to adopt

partnering. This committee has also enabled IPI to speak at key

conferences this year including the DBIA National Conference

and Expo (Dallas, TX), AGC of California’s Annual Conference

(Monterey, CA), the Center for Innovation in the Design and

Construction Industry Conference (San Francisco, CA), the

Airport Consultant’s Council Annual Conference (Ft. Myers,

FL) and the Western Council for Construction Consumers

Alternative Project Delivery Summit (Sacramento, CA).

IPI Committees are the lifeblood of International

Partnering Institute and they have had an incredibly

productive year! IPI Committees have written

Partnering Specifications, developed the IPI Matrix,

launched the Owner’s Roundtable series, written white

papers, and raised the profile of partnering. They have also

made it easier for Owner’s to adopt a structured approach

to partnering. Participating in IPI Committees is the best

way to learn best practices and share lessons learned to help

take your organization’s partnering program to the next

level. We currently have six committees and the Facilitator

Partnering Emphasis Group (PEG). As we close out 2014,

we wanted to share highlights from each.

The IPI Research CommitteeIn a partnership with Michigan State University’s School

of Planning, Design, and Construction, the IPI Research

Committee launched our first funded research study entitled

An Inquiry to Move an Under-utilized Best Practice Forward:

Barriers to Partnering in the Architecture, Engineering, and

Construction Industry. Written by Sinem Mollaoglu (Korkmaz),

PhD, “Barriers to Partnering” identified four key barriers to

partnering: Organizational, Cultural, Legislative, and Project-

team related. In the top 12 Barriers to Partnering, Cultural

Barriers emerged as the most frequently cited barrier. The

Research group is also putting the finishing touches on a

Meta-Analysis of more than 170 studies related to the field of

Partnering, co-written by Prof. Mollaoglu and graduate student

Anthony Sparkling. This Meta Analysis of Partnering Research

identifies the golden threads from over 25 years of Parnering

studies and seeks to better understand how to consistently

develop collaborative teams. We are so pleased with this

ongoing partnership with MSU and cannot wait to share

more research as it emerges each year!

COMMITTEESPOTLIGHT


Facilitator Partnering Emphasis Group (PEG)Launched in 2013 by Co-Chairs Jim Eisenhart of Ventura Consulting

Group and Sue Dyer of OrgMetrics, LLC, the Facilitator PEG

represents an esteemed group of professional Neutral Construction

Partnering Facilitators from across the United States. In 2014, the

PEG launched a number of crucial initiatives including the three-

tiered IPI Facilitator Certification Master Level Certified (MIPI),

Senior Level Certified (SIPI) and Certified (IPI), and welcomed

8 professional facilitators into the inaugural class. The Facilitator

PEG also developed the Facilitator’s Code of Ethics and is now

developing tools to assist owners and contractors overcome key

objections to adopting partnering.

Awards CommitteeLaunched in 2010, the IPI Awards Committee Co-chaired by David

Thorman and Larry Eisenberg designs, edits, and judges the IPI Award

applications. The Committee also assists with the IPI Awards Ceremony

held in May of each year. In 2014, the committee received a new record

for Partnered Project of the Year applications from outside California

and received International applications for the Industry Awards for

the first time. Committee Members also assisted with IPI “Voices of

Experience” interviews and recruited attendees to IPI’s inaugural

Owner’s Roundtable held in May at the IPI Awards Ceremony.

IPI also launched two new committees in 2014:

The Aviation CommitteeThis group lead by Co-Chairs Geoff Neumayr of SFO International

Airport and Roddy Boggus of Parsons Brinckerhoff is focused on

promoting the use of Collaborative Partnering in the Aviation

sector and making it easier for owner agencies to adopt a scaleable

program to be adapted by Airports in the US and around the world.

Airports face a unique set of challenges for delivering projects from

airport terminals, to tarmacs, to baggage handling systems and it

is all done in a high-tech, secure environment, so we are excited to

focus on this key sector with our new Committee effort!

The International Committee Launched in 2014, this Committee is led by Co-Chairs John Thorsson

of NCC Construction Sweden and Zig Rubel of Aditazz. The group

is focused on expanding the influence of Collaborative Partnering

worldwide. The objectives of this Committee are to develop

educational opportunities for those interested in learning more about

how Partnering is conducted overseas and to share best practices so

we can ensure we are getting the most out of our project teams.

Call IPI (925) 447-9100 or email us at [email protected]

to get involved with a Committee!

For career opportunities and/or more information, please visit

pbwor ld .com

Dream It!We’ve Got You Covered

The challenges facing

today’s airports are endless,

yet so are the opportunities.

Parsons Brinckerhoff

offers a full range of

services to partner with

airport owners to

envision the future …

and then create it.

FACILITATOR’S CORNER

When my son was in 4th grade he decided he

wanted to play tackle football for the very first

time. After the first full week of long practices

in the hot sun (full pads for 3 hours at 80-90 degrees), he

decided he wanted to quit. When he talked to us about it

we explained to him that he had made a commitment. He

needed to follow through and keep the commitment that

he had made to play on the team. He looked at us and said,

“That’s not fair. Nobody else keeps their commitments; none

of my friends have to keep their commitments. Why does

our family have to keep them?”

I believe that achieving success in life—and success

in partnering—is about keeping commitments. We have

commitments within our internal teams, commitments we

make between contractors and owners, and one area in which

I believe that we can often improve upon is partnering with,

and keeping commitments with our stakeholders.

Partnering with the PublicWhen our Clearfield, Utah, SR-193 project won the IPI Partnered

Project of the Year Diamond Award, we recognized that a large

part of our success was due to some strategic partnering we

used with our stakeholders. On SR-193, we invited some of our

key stakeholders to attend a portion of the kick-off partnering

workshop so that they would feel included as part of the project

team. We included representatives from the three affected cities,

emergency services personnel, and multiple representatives

from a large industrial business area that would be affected by

construction. This was an opportunity for the stakeholders to


learn more about the project, meet the team, learn about the

project goals and have an opportunity to ask questions directly

to the owner and the contractor.

After the kick-off session, we also implemented a Community

Coordination Team (CCT) comprised of these members plus

other influential business owners and representatives from

the impacted neighborhood community. This CCT met once

each month and it provided a beneficial two-way exchange

of information between the public (providing ideas and

suggestions based upon life within the construction zone) as

well as the construction team (providing insight to the public

leaders on the schedule and challenges of a large construction

project). This partnering relationship proved to be extremely

valuable to everyone involved.

Based on this experience and 20 years as a professional

engineer and partnering facilitator, I would like share three

tips for successfully engaging your stakeholders.

1. Plan Your Partnering Session Far Enough Ahead So You Get the People You Need in the Room TogetherOften times, teams plan partnering sessions at the last

minute. Project Managers need to realize that one of the ways

facilitators can add value is to identify the participants who

should be invited to the partnering session and when they

need to be there. If the team doesn’t provide enough notice

to properly prepare for and plan a great session (including

ensuring that the right people have been invited), they are

missing out on a great opportunity!

Engaging Your Stakeholders3 Tips for Successful Partnering


2. Discuss Stakeholders in Your Pre-partnering InterviewsMost facilitators perform “pre-partnering interviews” with

key members of the team. Make sure to identify and discuss

the various stakeholders who can affect the project. For

instance, on transportation projects, I always ask about

the different utilities that will potentially be involved or

affected. They play a critical role, but are often overlooked.

Also, think about the different types of stakeholders.

There are a wide variety including local government

agencies, cities, counties, transit agencies, irrigation

companies, impacted businesses and neighborhoods, area

emergency service responders, commuters, bicyclists,

pedestrians schoolchildren, and bus systems that will

be impacted by the project. Discuss with the team

members the impact the project will have on the various

stakeholders and what is the best way for the team to

interact with them. Ask if there would be an advantage to

having some of the stakeholders attend a portion of the

partnering workshop. Oftentimes, key stakeholders can

provide valuable insight, perspective and suggestions

that can be implemented by the project team.

3. Be Flexible and Inventive When Planning the Workshop Let the facilitator help you set the workshop schedule

to accommodate the needs of key stakeholders. If we

can foresee complicated utility issues on a project, we

often start the morning with the project team, and

then invite the utility companies to join us for lunch

and a later portion of the workshop. When the utility

representatives arrive, let the team leaders share the

goals that the team has already established and ask the

opinions of the utility reps about how to achieve the

goals. We then open lines of communication with the

utilities so that they understand the project strategy

and work with us as our partners. We have used similar

strategies with other stakeholders and it has proven

beneficial for everyone each time.

So, make sure to 1) plan your partnering sessions far

enough in advance that you can get the right people in

the room; 2) discuss stakeholders in your pre-partnering

so you can identify who the key players are; and 3) be

flexible with the agenda of your workshops so you make

it valuable for stakeholders to attend.

By having the stakeholders become a part of the project

vision you will have a much better chance of delivering

on your commitments with a project that is successful for

the project team as well as the end-users.

Sydne Jacques, PE, SIPISydne Jacques – Principal, Jacques &

Associates is an Award-winning Partnering

Facilitator who has worked in the

construction industry as a professional

transportation engineer, partnering

facilitator, and public information officer

for more than 20 years.


21IPI’s Top 10

Achievements from a record-setting year

Number 1IPI’s Unprecedented GrowthThe effect of any organization can be measured by its membership and its influence. In just a few short years, IPI has done some incredible things. We have helped support the City and County of San Francisco—the first City of the world to adopt a structured approach to partnering through all 6 of its construction departments that run projects. We have trained more than 600 construction professionals in the Collaborative Partnering Model. We have 7 committees focused on partnering and have launched this magazine. But perhaps most exciting is our growth. 2014 has not finished yet and in this year we have grown more than 160%. We now number more than 100 Member Organizations and represent hundreds of billions of dollars of construction each year. With every Owner agency, contractor, designer, professional facilitator, CM, and associate Member, our movement grows stronger. If you have already joined IPI,

thank you! If not, it is time to get involved. Partnering is here to stay and together, we can change the industry!

Number 2The IPI Owner’s Roundtable

This year has been focused on spreading the IPI Collaborative Partnering Model, the IPI Specifications, and the IPI Matrix within the industry. To that end, the Vertical and Horizontal Construction Committees each created “hot lists” of influential owners and invited them to an IPI Owner’s Roundtable in May.

Facility Owners from Southern California, to Ohio to Sweden gathered to hear about the Caltrans Partnering Program from Division of Construction Chief Mark Leja, about SFO’s program from COO Ivar Satero, and received an industry perspective from C.C. Myers, Inc. CEO, Dan Himick. Each gave excellent testimonials, shared best practices and techniques to maximize what they could accomplish with their teams through partnering.

IPI’s Top 10 from 2014

PARTNERING2014 HAS BEEN AN OUTSTANDING

YEAR FOR INTERNATIONAL

PARTNERING INSTITUTE! WE HAVE

EXPERIENCED MANY FIRSTS. WE

DEVELOPED NEW COMMITTEES,

DEVELOPED NEW METHODS TO

CONNECT WITH OUR MEMBERS AND

WE HAVE GAINED GREAT MOMENTUM

FOR COLLABORATIVE PARTNERING

—THE STRUCTURED APPROACH TO

CULTURE CHANGE. IPI’S MISSION IS

TO FUNDAMENTALLY CHANGE THE

CONSTRUCTION INDUSTRY FROM

ADVERSARIAL TO COLLABORATIVE.

THIS YEAR’S TOP 10 HIGHLIGHTS THE

10 ACHIEVEMENTS LAUNCHED IN 2014

THAT HAVE HAD THE MOST EFFECT

ON THE ORGANIZATION AND THE

PARTNERING MOVEMENT.

PARTNERING–YEAR IN REVIEW


6

5

4

3

During the roundtable, a number of questions emerged from the attendees. Since then, we launched our first series of online webinars, which enable callers from all over the world to learn from our outstanding panelists. Audio of the two webinars was recorded—contact IPI if you would like a copy of the recording or would like to participate in future events.

Number 3New IPI CommitteesThe more you give to an Association, the more benefits you receive. This year, we launched two new committees—The Aviation Committee, and the International Committee. The Aviation Committee launched in October of 2014 and represents elite members of the Aviation sector from all over the United States and the world. This group will be focused on spreading the IPI Model of Collaborative Partnering and tailoring it to Aviation programs. The Committee is Co-Chaired by Geoff Neumayr of SFO International Airport and Roddy Boggus of Parsons Brinckerhoff.

The International Committee is exploring what is happening worldwide with Partnering and to identify where IPI can share our model to improve the industry. The Committee is co-chaired by John Thorsson of NCC Construction Sweden and Zig Rubel of Aditazz and we have already made inroads in the United Kingdom with Constructing Excellence and with organizations and IPI Members in India. This promises to be an exciting and innovative Committee! Make sure to contact IPI to get involved!

Number 4 Facilitator CertificationIn January, the IPI Facilitator PEG launched a Certification for Professional Construction Partnering Facilitators. This 3-tiered Certification is experience-based. Facilitators receiving Certifications must sign the IPI Facilitator Code of Ethics and submit an Application, letters of recommendation, and sample Charters and scorecards.

The three Designations and Certification levels are:• IPI—Certified Level—Facilitator has completed 25

Professional Sessions• SIPI—Senior Certified Level—100 Professional Sessions• MIPI—Master Level Certified—250 Professional Sessions and

a publication advancing the field of partnering.9 Professional Facilitators received Certifications this May at the IPI

Awards Ceremony. Make sure to support the program by encouraging your favorite Partnering Facilitation firms to apply and get involved!

Number 5Michigan State University and the “Barriers to Partnering” ResearchThis year, IPI launched a research partnership with Michigan State University. Our first funded project resulted in a Research Report entitled An Inquiry to Move an Under-utilized Best Practice Forward: Barriers to Partnering in the Architecture, Engineering, and Construction (AEC) Industry. Prepared by Sinem Mollaoglu (Korkmaz) PhD, LEED® AP at MSU’s Construction Management Program, the report summarizes the findings from surveys of experts on construction partnering.

In the study, the experts identified four key barriers to partnering: Organizational, Cultural, Legislative, and Project-team related. All in all, they identified 25 barriers and ranked them. In the top 12 Barriers to Partnering, Cultural Barriers emerged as the most frequent barrier to partnering (6 of 12). IPI Members can download the study for free (a $750.00 value!) by logging in to the IPI Website.

Number 6Partnering MagazineIn March, 2014 IPI launched Partnering Magazine. The bi-monthly Magazine has become the voice of IPI and is the newest way to highlight our Members, identify success stories, and share best practices and cutting edge partnering research with the industry. We currently distribute to 6,000 people every two months.

PARTNERING


10

9

8

7

PARTNERING–YEAR IN REVIEW

In 2014, we have highlighted key IPI Members including SFO, Hensel Phelps, Gensler, and The KPA Group for Innovations in Partnering, Caltrans and their Industry Partners as Partnering Pioneers, the IPI Award Recipients, and NCC Construction and Aditazz for helping us take the IPI Model Global. Make sure to submit your success stories and photos so we can highlight you and your teams!

Number 7“On Time, On Budget”This year IPI published its first IPI Owner’s Guide, On Time On Budget. This guide walks the reader through the 10-step process for adopting a Partnering Program. Our mission is to make Partnering easier for you and your teams to implement. The process starts with the IPI Partnering Specifications and Matrix, continues with training, and ultimately involves engaging with contractors and industry to ensure you are fixing the internal and external barriers that most frequently haunt your project teams.

Written by IPI CEO and OrgMetrics President Sue Dyer, On Time On Budget helps you apply lessons learned on thousands of projects to your program in 25 pages. All IPI Members are eligible to receive a free copy and get discounts on subsequent copies. Visit the IPI Website for details.

Number 8Collaborative Partnering Orientation Training

This year, IPI launched our new Collaborative Partnering Orientation Training. Attendees receive an overview of the IPI Collaborative Partnering Model, including the IPI Matrix and Specifications program. The training was launched on the heels of a successful, four city presentation of Collaborative Partnering to more than 180 workshop attendees in Delhi, Chennai, Goa, and Mumbai, India. To date, IPI has trained more than 600 construction professionals on the IPI Model. Teams who understand how to perform in a collaborative way are more creative, resilient, and outperform traditional teams consistently. Sign up today!

Number 9 $1 spent on Partnering = $96 Savings to the ProjectOver the past two years, IPI Partnered Project of the Year applicants estimate that for every dollar they spend on Partnering, they save $96 off the project budget. Partnering is an incredibly valuable investment! In an article entitled Return on Investment (ROI) of Partnering, IPI Founder and CEO Sue Dyer identified quantitative partnering research and combined that information with data from several owners who use Partnering effectively. The results are staggering. Partnered Projects clearly outperform traditional projects in terms of cost, schedule, quality, and safety. In 1996, the Construction Industry Institute interviewed more than 350 project teams. They found the benchmark for partnering at the time was 10% budget savings, 20% schedule savings, and perhaps most importantly a 10-fold improvement in safety.

Over the past two years, IPI Partnered Projects of the Year have consistently beaten those benchmarks. Projects are AVERAGING 9.5% savings ($343 Million on $3.8 Billion of work). Teams now consistently shave full seasons off of schedule and 21 of the 29 projects had zero time loss injuries! These results are incredible and IPI continues to share emerging data with our Members.

And... Number 10 IPI FirstIn May of 2014, IPI launched IPI First, an initiative to highlight IPI Members who work with IPI Members. Emerging research like the McGraw Hill Smart Market Report (p. 14) demonstrates that the single most important contributor to project success is a collaborative project team. Firms and organizations that join up with IPI have raised their hands and demonstrated to the industry that they are pushing collaboration and partnering to the next level. When you have a choice, improve your team with an IPI Member! The outstanding teams of the future start with collaboration as a core value—so choose IPI First!

Thank you for your support of IPI and for your contributions to the partnering movement to make this our best year ever! Here’s to 2015!

Over the past two years, IPI Partnered Project of the Year applicants estimate that for every dollar they spend on

Partnering, they save $96 off the project budget.

usa.skanska.com

Collaboration. Innovation. Sustainability.Partnering to build a better future for our customers and communities.

James B. Hunt Library, North Carolina State University

George Bush Intercontinental Airport, Terminal B Redevelopment, Houston TX

2013 NAIOP Community Enhancement Day, Seattle, WA

Gold Line Bridge, Arcadia, CA


RESEARCH ROUNDUP

This fall, McGraw Hill Construction published a new

Smart Market Report, entitled “Managing Uncertainty

and Expectations in Building Design and Construction.”

The research team used a series of surveys and an Owner’s

Advisory Group to better understand what risks owners,

contractors, and architects are most concerned about and

what they believe project teams should do to mitigate it.

A number of key issues emerged from the study that

highlight the need for improved consensus-building and

collaboration in the construction industry.

Three key findings were that:

1. More Integration Between Design and Build Parties

During Design and Coordination was the consensus choice

by owners, contractors, and architects to mitigate project

risks. Survey respondents felt that a highly collaborative

team can overcome any uncertainty the team faces.

2. When the owner is engaged and knowledgeable, the team

is better off. According to the survey, Clear Direction from

Owners (#2) and More active leadership by Owner (#3) are

the next most reliable way to reduce uncertainty and risk.

3. Owners, architects, and contractors continue to have a major

disconnect about the challenges faced by each other in

project delivery.

This Smart Market Report highlights the industry need for

expanded adoption of the structured approach to Collaborative

Partnering. Each of these three issues: improved coordination

between the designer and builder, more engagement by the

owner and clearly defined goals, and a more aligned team,

are all resolved through structured partnering. By aligning

the team early and engaging end-users and stakeholders in

the process, the project team simultaneously improves issue

resolution and reduces risk on the job. Truly, this is a win-win-

win for the owner, contractor, and architect.

Got Risk?

FAST FACTSAuthors: Stephen A. Jones and Harvey Bernstein (McGraw Hill)Initial survey 1500 peopleFollow-up Survey: 155 Owners, 82 architects, 78 contractors (large and small)Online surveys and telephone interviews

Owner’s Advisory GroupUniversity of Chicago HinesGSA Public Buildings Service Sutter HealthCrate & Barrel Walt Disney ImagineeringWhirlpool Corporation

Source: Jones, Stephen & Bernstein, Harvey, Smart Market Report: Managing Uncertainty and Expectations in Building Design and Construction”, McGraw Hill Construction, 61pp (2014)

Survey shows that a highly collaborative team can overcome any uncertainy the team faces


Making SFO’sPartnering Program FlyFor almost two decades OrgMetrics has been providing Partnering Services for San Francisco International Airport’srenowned Partnering Program

Partnering Program Development/Facilitation • Project Partnering Facilitation • Strategic Partnering Facilitation • Facilitated Dispute Resolution • Project Scorecards

www.orgmet.com | (925) 449-8300


Partnering to Create the Best PlacesAs a leading fully integrated property and infrastructure solutions provider, Lend Lease’s clients, partners and investors can choose to leverage our strengths and local expertise at any stage of the real estate spectrum – from development, investment management, project management and construction, and asset and property management – or partner with us through the complete journey.

LUMINA201 Folsom Street, San Francisco, CA

Lend Lease is providing General Contractor services for Tishman Speyer on LUMINA, a 656-unit residential development project under construction in the Rincon Hill neighborhood of San Francisco.

Lend Lease71 Stevenson Street, Suite 800San Francisco, CA 94105T 415 512 0586

www.lendlease.com

RESEARCH ROUNDUP

Understanding UncertaintyUncertainty or project risks are the unknowns that threaten

project outcomes. In the McGraw Hill Study, 1,500 Owners,

contractors, and architects were surveyed to see what risks

they believe effect projects the most.

All three parties (47% owners, 45% architects and 56%

contractors) agreed that unforeseen site conditions were the

number 1 cause of risk on projects (see table at right). The

second ranked issue was Design Errors (41% owners, 21%

architects, 49% contractors) and the third ranked was Design

Omissions (41% owners, 15% architects, 55% contractors).

An important finding highlighted in this study is that

each party consistently underestimates their own impact on

uncertainty. In other words, Owners tend to underestimate

the impact of their own delayed decisions, Contractors

tend to underestimate the impact of supply chain delays,

and architects tend to underestimate problems caused by

design flaws. This lack of alignment sets up an adversarial

environment that often haunts project teams.

To give you a specific example, notice the difference between

how architects rated Design Errors (21%) and Design Omissions

(15%) versus contractors (49%, 55%) and owners (41%, 41%)

A second example of this lack of alignment emerged when

respondents were asked “Who benefits the most from

project uncertainty?”

In this case, Owners (50%) and Architects (47%) agreed that

Contractors gained the greatest advantage from uncertainty.

When Contractors were asked the same question, (18%) agreed.

(Contractors claimed that Trade Contractors gained the most

advantage from uncertainty (32%)).

Ranking The Risk Who TypicallyOwns it?

1st Unforeseen Site Conditions Neutral – not one entity

2nd Design Errors Architect3rd Design Omissions Architect4th Contractor-Caused Delays Contractor5th Owner-Driven Changes Owner6th Owner-Caused Delays Owner7th Construction Coordination Issues Contractor


“Architects, owners, and general contractors are really linked on a project. And I think all of them equally are pained by uncertainty and change.”

Chuck Hardy - GSA

What is the Impact on Projects?This research highlights the long held beliefs by owners,

architects, and contractors that everyone else is responsible for

project risks. Experience on thousands of projects has shown

that Collaborative Partnering is a forum that allows teams

to overcome these perceptions, jointly identify key risks and

develop strategies around resolving them. As Chuck Hardy

(GSA) said, “architects, owners, and general contractors are

really linked on a project. And I think all of them equally are

pained by uncertainty and change.” Partnering helps teams

jointly develop goals and resolve issues so “perceptions” don’t

ruin project outcomes. Clearly the McGraw Hill Research demonstrates that project

teams typically do not start on the same page. We tend to blame

each other for our problems because we know that WE are

not the cause! The extensive surveys to owners, contractors,

and architects demonstrated that developing a culture of

collaboration, especially driven by the owner, has the best chance

for everyone (owner, architect, contractor) to be on the same

page. When this culture is established, everyone takes ownership

of project problems and resolves them by doing what is best

for the project balancing between scope, quality, schedule, and

budget. This takes a collaborative team!


you want. Then you dine

on what you have selected.

In a RECIPE you need all

of the ingredients blended

together in the order and

manner designed so you get

the result you want. Can you

imagine if you were going

to bake a cake and you left

out the sugar and baking

powder? You would end

us with a flat, gluttonous

bread like substance. Ugh!

Certainly not what you

were hoping for.

So, as we look toward

2015 with the greatest

desire to help our members’

projects to get the kind of

results that San Francisco

International Airport

has, I hope you will use

the RECIPE that the IPI

Committees have developed

for you. These are based

on what worked and what

didn’t work for hundreds

and hundreds of projects.

Collaborative Partnering

is YOUR recipe for project

success!

“In a RECIPE you need all the ingredients

blended together in

the order and manner designed so you get the results you

want”

Sue Dyer, MBA, MIPI, MDRF

Founder and CEO,

International Partnering Institute

Wow, the success

we’ve seen from

our members

who are implementing the

IPI Collaborative Model

has been amazing and

very rewarding for the

IPI Board of Advisors and

staff this year. For example,

San Francisco International

Airport has completed $1.4

billion of work in the past

three years without even a

potential claim and they have

saved 20-30% per square foot

over other aviation projects.

This is what is possible!

Over the past year more

and more facility owners

and project teams have

implemented the IPI

Collaborative Partnering

model. This includes using

the IPI Specification and

the IPI Matrix.

These show you how to

“scale” your partnering to

the size and risk level of

each project. So for “micro”

projects (projects up to

$5M and of short duration)

the elements require a

professionally facilitated

Partnering Kick-off

Workshop where the team

develops their Partnering

Charter. They do not have

any project scorecards

required and they may use a

“virtual” process. For a large

project, the elements include

quarterly professionally

facilitated sessions, a

monthly project scorecard,

and a multi-tiered approach

by having Executive,

Core and Stakeholder

team partnering sessions.

Partnering Training and the

inclusion of subcontractors

are also required for large

projects.

We are beginning to see

some people look at the IPI

Specification and Matrix as a

MENU rather than a RECIPE.

In a MENU you and pick and

choose the elements that

CEO’S MESSAGE

A Recipe for Project Success

Collaborative Partnering…

WINNER OF THE 2014 CALTRANS EXCELLENCE IN PARTNERING AWARD“BEST IN CLASS” FOR PROJECTS GREATER THAN $50 MILLION

Highway 65 Lincoln Bypass ProjectCaltrans District 3, Placer County

B U I L D I N G C A L I F O R N I A F O R S E V E N T Y- F I V E Y E A R S11555 Dublin Boulevard, P.O. Box 2909, Dublin, California 94568-2909 925-829-9220

w w w . d e s i l v a g a t e s . c o m

Contractors License No. 704195A

Project Highlights• 2,000,000 sq. ft. facility• 18 rental car companies• 5,000 parking spaces• 18 car wash stations• 72 fueling stations• 1 acre of concrete/week

Collaborative Tools Used• Co-location with JV Partner Sundt, subcontractors and owner • Austin-Sundt team engaging with stakeholders including rental car companies • Using lean tools including pull planning system

Austin Commercial LP, recipients of the 2012 Diamond Level IPI Partnered Project of the Year Award has a proud history of working collaboratively with the Owner and Design Team on its projects. Since receiving the IPI Award for the Sacramento International Airport Terminal B Project, Austin has been busy working with airports and commercial facilities throughout California.

Austin’s most recent project is a Construction Manager at Risk project with JV partner Sundt. They are nearly one year in to construction on IPI Member San Diego County Regional Airport Authority’s new San Diego Rental Car Center (RCC) facility. This project, designed by Demattei Wong Architects, is a massive 2 million square-foot structure that will house 18 rental car companies and will include a customer service building, a quick-turn-around car prep facility, 18 car wash stations, 72 fueling stations, and a 5,000-car ready/return area.

The RCC project team has maintained the schedule while successfully coordinating work with four simultaneous projects at the airport.

According to Austin Project Manager James Augustyn, “The project is progressing well. We have had a good plan and executed it well due to great collaboration and coordination with the team.”

6100 Center Drive, Suite 1175, Los Angeles, CA 90045 | 310.421.0269 | www.austin-ind.com/commercial

A Collaborative Builder

“Building on our proud past, we’re now constructing your future”

January 2014 July 2014 November 2014

Renderings provided by Demattei Wong

SAN DIEGO RENTAL CAR CENTER (RCC) SAN DIEGO, CALIFORNIA

SAN RCC

partnering magazine november/december 2014

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