theory and practice ipd

Integrated Project Delivery Theory and Practice

SIDNEY J. SANDERS Vice President, Facilities & Construction, The Methodist Hospital System

CHARLES B. THOMSEN, FAIA, FCMAA [email protected]

Monumental buildings designed by educated elite, built by employees and craftsmen.

America needs larger buildings. Design separates from construction. Professional institutions and licensing emerge.

Design-bid-build emerges.

Industrialization increases.

Management separates from construction, becomes profession. CM professional institutions and certification emerge.

Clients become serial builders with AEs on staff to manage programs.

The U.S. construction industry

•   $1.2 trillion, 28% of the $5.2 trillion world market •   8% of the gross domestic product •   1,250,000 companies, 98% are fewer than 50 people •   Average life of a subcontractor is 2.8 years •   44,000 individual code jurisdictions–no national code •   130,000 architects, 17,000 firms

Specialization will continue. More individuals and more companies will participate in a building program. Integrated Practice will be used to capture their value.

User

User

User

UserUser

User

User

User

User

User

User

User

User

User

UserUser

User

UserUser

User

User

User

User

User

User

UserUser

User

User

User

User

User

UserUser

User

User

User

User

User

User

User

User

User

UserUser

User

User

User

User

User

User

User

UserUser

User

User

User

User

User

User

User

User

User

User

User

User

Scheduling

Inspection

Estimating

PMAC

Manufacturer

Supplier

Manufacturer

Manufacturer

Manufacturer

Manufacturer

Manufacturer

Manufacturer

ManufacturerManufacturer Manufacturer

Manufacturer

Manufacturer

Manufacturer

Manufacturer

Manufacturer

Manufacturer

Supplier

Supplier

Supplier

Supplier Supplier

Supplier

Supplier

Supplier

Supplier

Supplier

Supplier

SupplierSupplier

SupplierSupplier

Manufacturer

Supplier

Manufacturer

Manufacturer

Manufacturer

Manufacturer

Manufacturer

Manufacturer

ManufacturerManufacturer

Manufacturer

Manufacturer

Manufacturer

Manufacturer

Manufacturer

ManufacturerManufacturer

Supplier

Supplier

Supplier

Supplier

Supplier

Supplier

Supplier

Supplier

Supplier

Supplier

Supplier SupplierSupplier

SupplierSupplier

Manufacturer

Supplier Supplier

Manufacturer

Manufacturer

CostConsultant

HardwareConsultant

Testing&Insptetion

CivilEngineer

SanitaryEngineer

StructuralEngineer

MechanicalEngineer Graphics&

Signage

InteriorsArchitect

ParkingConsultant

NetworkConsultant

ElectricalEngineer

SecurityConsultant

TrafficEngineer

RoofingConsultant

AcousticalConsultant

KitchenConsultant

FoodService

LifeSafetyConsultant

GeoTechConsultant

AudioVisual

Permitting, regulation & entitlement

Owner’sPM

CM/GC

ArchitectPM

SoilTreatment

Millwork

HVAC

FireStopping

CleanUp

Masonry

Hauling

ErosionControl

Fencing

Sprinklers

Curtainwall

Flooring

Demolition

Formwork

Clearing&Striping Reinforcing

ConcreteGrading&Excavation Plumbing

Electrical

FireProtection

Misc.Iron&Steel

Sheetmetal

Curtainwall

Casework

OrnamentalIron Vacuum

Systems

Painting

RoofHatches

Carpeting

Electrical

RoughFraming

Skylights

Stucco&Plaster

Casework

Glass&Glazing

DrywallFlagpoles

FireProtection

FinishCarpentry

Tile

Insulation

Curtains&Blinds Counter

Tops

BuildingSpecialties

Paving

Roofing

MetalFabrications

AcousticalTileR.O.

Water OverheadDoors

KitchenEquipment

WallCoverings

Flashing&Sealants

ToiletAccessories

Ductwork

Doors&Frames

Board

CEO

DirectorFacilities

ExecutivesExecutives

AccountingLegal

StandardsEstimating QCProgram

Construction is production intensive with defined needs for the resources of time, labor and materials. It is linear and sequential and can be managed logically.

Design is decision intensive and iterative with no limit to the effort that can be spent on refinement. Many improvements require doubling back to make changes.

Work processes differ

Integrated Practice: a working definition

A collection of concepts, practices and tools applied in part (rarely in whole) to improve collaboration and integration among an extended project team

The purpose is to make better buildings faster for less.

Methodist System overview

San Jacinto

Willowbrook

Sugar Land

Medical Center

West Houston

The Methodist Hospital Research Institute

438,000 GSF 12 Floors $233,000,000 Surgical Training Vivarium BSL 3 labs Office Imaging center

Program Manager Jacobs Engineering

Architects Watkins Hamilton Ross and Kohn Pedersen Fox MEP engineer Affiliated Engineers Inc. Civil Engineer Walter P. Moore Structural engineer Haynes / Whaley

Construction Manager; Harvey Builders Curtain-wall subcontractor Hayley Greer

Plumbing subcontractor Gowan Inc. MRI manufacturer Philips Shielding subcontractor Nelco Inc.

West Houston, Hospital and MOB 644,000 sq. ft. 192 Beds, 6 Floors TPC $336.7 M

Program Manager Parsons

Architect Page Southerland Page MEP engineer Page Southerland Page Structural engineer Haynes / Whaley

Construction Manager Austin Commercial

Mechanical plumbing sub Dynamic Systems, Inc. Electrical subcontractor Walker Engineering Curtain wall subcontractor Haley Greer, inc.

Methodist Capital Program

  Goals •   Sophisticated healthcare facilities •   Tight schedules and budgets •   Institutional requirements for transparency and accountability

  Challenges •   Highly complex and developing technologies in an environment of

change, price volatility and limited subcontractor supply •   Thousands of design decisions, hundred of suppliers and many

subcontractors

Common themes in IPD projects

1.  Legal relationships among core team members 2.  Management committees 3.  Incentive pools 4.  No-blame working environments 5.  Collaboration software: BIM and PMIS 6.  Design assist 7.  Lean construction 8.  Integrated leadership

1. LEGAL RELATIONSHIPS Common Themes.

•   Partnering •   Multi-party contract •   Joint Venture •   LLC or other legal entity •   Collaborative selection

Project delivery strategies proliferate. Architects must learn the legal implications and the behavioral characteristics of organizations under different contract forms.

In 1427, when Brunelleschi was constructing the Cathedral in Florence, tensions became so great among the artisans that they were made to take an oath to “forgive injuries, lay down all hatred, entirely free themselves of any faction and bias, and to attend only to the good and the honor and the greatness of the Republic, forgetting all offences…

Partnering

Liability: Independent, compartmented responsibility, liability and finger pointing

Taxes: Independent tax responsibility

Administrative cost: No increase

Integration culture: Traditional tensions

Design-bid-build Prime contracts with the Owner

Legal Relationships

Multi-party Prime contracts with each core team member (traditional concept)

Liability: Allocated risk and responsibility with defined obligations to one another

Taxes: Independent tax responsibility

Administrative cost: a management committee

Integration culture: Shared incentive pool and collaborative leadership

Legal Relationships

Joint Venture Partnership among core team members who may guarantee costs and services to the JV and share profits or losses

Owner

JV

CM/GC

Subs

Liability: a partnership with “joint and several” responsibility; partners define responsibility to one another; liability to third parties is shared

Taxes: JV must file; no tax due if all profits distributed

Administrative cost: minimal increase for JV accounting and tax preparation

Integration culture: strong incentives for partners to help one another

AE

Consultants

Legal Relationships

Limited Liability Corporation Prime contracts with each core team member (traditional concept)

Owner

LLC

AE CM/GCConsultants Subs

Liability: LLC provides protection to shareholders; wise Owner will require corporate guarantees; third parties may pierce corporate veil

Taxes: LLC profits are taxed if not distributed to shareholders; state franchise taxes

Administrative cost: More accounting, more filing

Integration culture: Shareholders bill at cost, share profits, pull together

Legal Relationships

OWNER

ARCH

ENG

SUB

SUB

CM

Collaborative team selection Legal Relationships

Typical Methodist contract structure

Methodist

PMTeam

AE CM/GC

Consultants Subs SubsSubsConsultantsConsultants

Legal Relationships

2. MANAGEMENT COMMITTEE Common Themes

Core team members with significant stake in the outcome Owner participation Unanimous decisions

Management teams

Meets weekly to coordinate design and documents

Team does clash detection

Design Assist Team Field Coordination Team

Meets weekly to plan and coordinate work to be installed

Focus is on short term: 2 to 4 weeks

CMAE

OwnerPM

Global Push scheduling

Granular Pull scheduling

Management Committees

3. INCENTIVE POOLS Common Themes

Cost goals Absolute goals Contingencies Satisfaction fees The biggest incentive: repeat work

Components of a GMP Incentive Pools

Different goals produce team conflict

Goal: design excellence

Pressure: increase budget

Pressure: decrease cost

Incentive: shared savings

Incentive Pools

Compensated goals produce reactions Incentive Pools

$100,000,000 Construction Cost

4,000,000 CM/GC OH&P 6,000,000 AE OH&P 5,000,000 Subs OH&P $15,000,000 Total OH&P

Assume that 20% of the Team’s total OH&P ($3,000,000) is allocated as an Award Fee

Hypothetical award fee approach Incentive Pools

50% of award fee is for meeting the Target Price

$1.5 M

0

Target Price

GMP

Hypothetical award fee approach

Incentive Pools

25% of award fee is for meeting the Target Schedule

$.75 M

0

Target Schedule

Schedule


Incentive Pools

25% of award fee (.75M) for goals that may include meeting commitments, quality, sustainability, community relationships, user relationships, etc.

Performance is reviewed quarterly. Owner makes subjective evaluations. Assuming a 48 month schedule (192 quarters) there is $15,625 per quarter that may be awarded.

The value is the message, the communication and the desire of the project team to show the report card score to their own executive management.


Incentive Pools

4. NO-BLAME WORKING ENVIRONMENTS

Common Themes

Owners and project teams are devising ways to limit their liability to one another but will not limit their liability to the public. However, if the extended project team is in the same liability boat and reviews one another’s work, the potential of errors decreases.

Sugar Land Hospital Expansion

900 sheets of non-integrated documents

650 submittals

2000 RFIs

300 technical bulletins

No-blame Working Environments

5. COLLABORATION SOFTWARE

Common Themes

The Internet PMIS BIM

Collaboration Software

Phases of BIM

1.  3D tool for design and standards 2.  Design team integration (MEP, structural, etc.) 3.  Shop drawings integration 4.  Supply chain integration 5.  Virtual construction: Clash detection and construction

analysis (4D and 5D)


Methodist project software portfolio

Program Management Information System •   E-Builder

Autodesk 3D Revit: Managed by Design Team •   Architecture •   Structure

Autodesk 3D Building Systems: Managed by Design Team •   MEP

NavisWorks: Managed by Mechanical Sub •   3D modeling and collision detection

Web Site: Managed by Design Team •   File sharing between Design Team and Construction Team


A Hypothetical Project Definition Scope Collaboration Software

Research Institute Building Relocation of chilled water lines

Civil Engineer mapped the existing utilities on the future building site and modeled the site in 3D

Architect, Civil Engineer and structural engineer coordinate design with with 3D model

Plumbing subcontractor used 3D model to fabricate large pipe sections for rerouted chilled water lines to run through future building basement


Future site of Research Institute Collaboration Software

Existing and rerouted utilities w/ 3D drawing Collaboration Software

New basement with rerouted chilled water lines

Research Institute curtain-wall

Curtain-wall subcontractor is selected at Schematic Design

Architect develops 3D model of building envelope in consultation with curtain-wall subcontractor

Curtain-wall subcontractor uses 3D model and refines the design in collaboration with Architect


6. DESIGN ASSIST Common Themes

  Maintain competitive pricing   Manage shift from traditional roles   Select subs with Design Assist capability   Define the appropriate Design Assist strategy

Redundant Drawings

Bid Fabrication Drawings

Manufacture Field Construction

Space and FF&E requirements

Concept design

Concept design Construction

Drawings

Design Assist

Problems with typical CM at Risk integration

More information is needed earlier in project conceptualization

Critical technical knowledge, cost and creativity exist in the SC and MFG firms

The procurement “below” the CM-R tends to become design-bid-build (slowest & least innovative procurement)

Key parts of project are redrawn in shop drawing process by selected SC & MFG

Design Assist

PROGRAM

PRELIM. DESIGN

CONCEPT

FINAL DESIGN

BUY-OUT

CONSTRUCTION FURN./ COMM.

Selection of Construction Manager

Cost Curve

Influence Curve

Typical point of Integration Design Assist

PROGRAM

PRELIM. DESIGN

FINAL DESIGN

BUY-OUT

CONSTRUCTION

FURN./ COMM.

Selection of Construction Manager

Cost Curve

Influence Curve

Desired point of integration Design Assist

CMR RFQ

Issues

Project Scope

Sub Response

Sub Response

Qualifications Project Team

Evaluates and Short

lists

RFQ

Design Assist subcontractor selection

CMR RFQ

Issues

SD package

Sub Response

Sub Response

Sub Response

Pre-con fee, general

conditions and fee

Project Team Evaluates and Short

lists

RFP

RFQ

Integrated Team

Executes

Project Team interviews and

short lists subcontractors

SelecBon&award

1 Step for Pre-con & Installation

2 Step contract Part 1 is Pre-con

Part 2 is Installation

Fire Protection Curtain Wall Elevator

HVAC/Plumbing Electrical Pneumatic Tube

Sub Response

Design Assist

One-line duct layout Design Assist

HVAC and plumbing with structure Design Assist

7. LEAN CONSTRUCTION Common Themes

•   Pull scheduling •   Flow and batch processing •   Last responsible moment •   Relationship contracting •   Honoring commitments •   Rotation

“Pull” fabrication and assembly Lean Construction

Sheetmetal fabrication Lean Construction

Construction Productivity Lean Construction

Programming

Design

Construction

Program Management There was an owner who needed a building and managed the project’s

delivery.

Then more projects were required.

And more management was needed.

Then it became apparent that part of every project

was the same.

Lean Construction

Programming

Design

Construction

Program Management So they rotated activities

from the project workflow to the program workflow.

Lean Construction

Programming

Design

Construction

Program Management That meant that each project could be done

faster, better and for less.

Lean Construction

Marriott, Target and Wal-Mart have evolving prototypes for “mass customization.”

KIT OF PARTS GUIDELINES SIMILAR UNIQUE EVOLVING SYSTEMS

Lean Construction

Hines Interests builds award-winning designs and individual buildings, but constantly refines a set of preferred building systems.


Lean Construction

MIT rotates only some management controls and landscape standards. Their objective is to build icons of great architecture.


Lean Construction

The amount of rotation depends on the similarity of the requirements and the authority of the program management team.

The idea is to understand what can be changed and work to change it, to understand what cannot be changed and live with it—and to have the good sense to know the difference.

Lean Construction

8. LEADERSHIP Common Themes

Project leadership Core team leadership

TopManagement

MiddleManagement

ProjectManagement

TopManagement

MiddleManagement

ProjectManagement

Staff to staff, brass to brass Leadership

Risk transfer

Complete risk transfer No collaboration No risk transfer

No accountability Risk transfer

Pro

ject

Per

form

ance

Shared and allocated

risks and rewards

AIA Bookstore here

www.amazon.com Search: Chuck Thomsen

www.cmaanet.org Click Bookstore, CMAA publications

theory and practice ipd

Documents