Issue 5 November/December 2014
Partnering year in review IPI’s Top 10 of 2014
INSIDE: page 6
page 14
Committee Spotlight
Managing Uncertainty
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.
henselphelps.com
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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Worl d -Cl a ss In n o v a to r s . L a ndmark Bui l di ngs. I nspi ri ng Per f or ma n c e . Partnering Magazine November/December 2014 www.partneringinstitute.org
CONTENTS INTERNATIONAL PARTNERING INSTITUTE IPI 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 ADVISORS
Features
November/December 2014 Partnering Year in Review
John Martin, San Francisco International Airport Larry Anderson, Salisbury University Center for Conflict Resolution Roddy Boggus, Parsons Brinckerhoff Pierre Bigras, PG&E
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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
Committee Spotlight
IN THIS ISSUE
IPI’s Committees: working
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together for change
Pete Matheson, Granite Construction Geoff Neumayr, San Francisco International
Executive Director’s Report
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
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Len Vetrone, Skanska USA Building
Partnering TOP 10 from 2014
EXECUTIVE DIRECTOR
The TOP 10 Initiatives launched by
Rob Reaugh, MDR
IPI in 2014 produce record results!
David Thorman, CA Div. of the State Architect, Ret. John Thorsson, NCC Construction Sverige AB
FOUNDER & CEO Sue Dyer, MBA, MIPI, MDRF
EDITORIAL OFFICE: SUBSCRIPTIONS/ INFORMATION International Partnering Institute 291 McLeod Street Livermore, CA 94559 Phone: (925) 447-9100 Email: ed@partneringinstitute.org www.partneringinstitute.org
DESIGN/CREATIVE
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Facilitator’s Corner Improve your partnering success by keeping commitments to your stakeholders
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Research Roundup
CEO’s Message
Got Risk? A new Smart Market Report’s findings
Michelle Vejby
on managing uncertainty
Email: mvejby@msn.com
in building design and
COPYRIGHT
A year of great growth thanks to YOU!
Collaborative Partnering: A Recipe for Project Success
construction.
Partnering 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
Cover photo courtesy of Nevada Department of Transportation–Carlin Tunnels Project.
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.
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November/December 2014 Partnering Magazine
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EXECUTIVE DIRECTOR’S REPORT
A Year of Growth— Thanks to YOU Rob Reaugh, MDR, IPI Executive Director
T
Photo by Daryl Jacques, Jacques & Associates
he end of the year is a time for gratitude. As I reflect
to grow the understanding and increase the adoption of
on 2014, I recognize that this has been a very successful
Collaborative Partnering in the industry. In 2014, we have
year of growth and there are many individuals and
really started to pick up steam.
firms to thank for their tireless support of IPI’s Mission. Any successful endeavor starts with its leadership, and ours is no exception.
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,
I will start by thanking our Founder and CEO Sue Dyer, for
launched Partnering Magazine, launched a Professional
her vision, tireless effort and for writing our organizations
Facilitator Certification, presented at a half dozen conferences
foundational publications, including our first Owner’s Guide,
around the United States, led in-person and web-based
On Time On Budget. I would also like to thank IPI Board of
roundtables all over the world, and have supported the
Advisors Chairman John L. Martin for his efforts in promoting
City and County of San Francisco—the world’s first City to
Collaborative Partnering in the Bay Area, the Aviation industry,
adopt structured partnering for all 6 agencies that deliver
and the world—we would not have our stature without his
construction projects. Our committees launched an Owner’s
efforts. Next I need to recognize the IPI Board of Advisors—an
Roundtable series that started with a collection of 35 Owners
incredibly committed group of individuals with a common
and has expanded into a series of online webinars and
vision to serve the industry, serve our organization, and have
we have funded our first and second research studies in a
some fun while doing it.
collaboration with the Michigan State University Construction Management Program. We also grew our IPI Awards Program,
Every year, the IPI Board of Advisors sets goals and identifies new initiatives to focus on to grow IPI and support our Mission, 4
Partnering Magazine November/December 2014
increased our fundraising, launched a new IPI Website, and welcomed our new Director of Member Services, Lisa www.partneringinstitute.org
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
Interstate 880/State Route 92 Interchange Reconstruction
grown from its infancy and we are eternally grateful for their
Hayward, CA
contributions.
2012 IPI Partnered Project of the Year, Diamond Level
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.
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 benefit 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 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! www.partneringinstitute.org
To learn more about Flatiron’s innovation in partnering visit
www.flatironcorp.com November/December 2014 Partnering Magazine
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COMMITTEE SPOTLIGHT
The 2014 IPI Committee Roundup I
PI Committees are the lifeblood of International
Horizontal Construction Committee
Partnering Institute and they have had an incredibly productive year! IPI Committees have written
Launched in 2012 and co-Chaired by Mark Leja of Caltrans and
Partnering Specifications, developed the IPI Matrix,
Dan Himick of C.C. Myers, Inc., the horizontal construction
launched the Owner’s Roundtable series, written white
committee is made up of owners, contractors, and designers
papers, and raised the profile of partnering. They have also
from all over the United States including seven Departments
made it easier for Owner’s to adopt a structured approach
of Transportation. In 2014, the Committee launched the
to partnering. Participating in IPI Committees is the best
IPI Owner’s Peer Mentor Program, steered the IPI Owner’s
way to learn best practices and share lessons learned to help
Roundtable and Webinar program, and are collecting “AHA!
take your organization’s partnering program to the next
Moments” to share Partnering success stories with the
level. We currently have six committees and the Facilitator
industry. The Committee Members also have recruited and
Partnering Emphasis Group (PEG). As we close out 2014,
supported key new agencies who are adopting Collaborative
we wanted to share highlights from each.
Partnering including the CA Department of Water Resources,
The IPI Research Committee In a partnership with Michigan State University’s School
Nevada DOT, Michigan DOT, the City and County of San Francisco, and others.
of Planning, Design, and Construction, the IPI Research
Vertical Construction Committee
Committee launched our first funded research study entitled
Launched in 2011 and Chaired by Larry Eisenberg of Ovus
An Inquiry to Move an Under-utilized Best Practice Forward:
Partners 360, the Vertical Construction Committee is comprised
Barriers to Partnering in the Architecture, Engineering, and
of owners, contractors, designers, CM firms and other
Construction Industry. Written by Sinem Mollaoglu (Korkmaz),
construction professionals. In 2014, this committee promoted
PhD, “Barriers to Partnering” identified four key barriers to
the IPI Collaborative Partnering Model by supporting the City
partnering: Organizational, Cultural, Legislative, and Project-
and County of San Francisco Partnering Summit, recruiting
team related. In the top 12 Barriers to Partnering, Cultural
owners to the IPI Owner’s Roundtable series, and developed
Barriers emerged as the most frequently cited barrier. The
the IPI Owner’s Peer Mentor Program. This Committee is also
Research group is also putting the finishing touches on a
developing a White Paper for Municipalities who wish to adopt
Meta-Analysis of more than 170 studies related to the field of
partnering. This committee has also enabled IPI to speak at key
Partnering, co-written by Prof. Mollaoglu and graduate student
conferences this year including the DBIA National Conference
Anthony Sparkling. This Meta Analysis of Partnering Research
and Expo (Dallas, TX), AGC of California’s Annual Conference
identifies the golden threads from over 25 years of Parnering
(Monterey, CA), the Center for Innovation in the Design and
studies and seeks to better understand how to consistently
Construction Industry Conference (San Francisco, CA), the
develop collaborative teams. We are so pleased with this
Airport Consultant’s Council Annual Conference (Ft. Myers,
ongoing partnership with MSU and cannot wait to share
FL) and the Western Council for Construction Consumers
more research as it emerges each year!
Alternative Project Delivery Summit (Sacramento, CA).
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Partnering Magazine November/December 2014
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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 threetiered 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 Committee Launched 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:
Dream It! We’ve Got You Covered
The Aviation Committee This group lead by Co-Chairs Geoff Neumayr of SFO International
The challenges facing
Airport and Roddy Boggus of Parsons Brinckerhoff is focused on
today’s airports are endless,
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.
yet so are the opportunities.
Airports face a unique set of challenges for delivering projects from
Parsons Brinckerhoff
airport terminals, to tarmacs, to baggage handling systems and it
offers a full range of
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
services to partner with airport owners to envision the future … and then create it.
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.
For career opportunities and/or more information, please visit
pbworld.com
Call IPI (925) 447-9100 or email us at ED@partneringinstitute.org to get involved with a Committee!
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November/December 2014 Partnering Magazine
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FACILITATOR’S CORNER
Engaging Your Stakeholders
3 Tips for Successful Partnering
W
hen my son was in 4th grade he decided he
learn more about the project, meet the team, learn about the
wanted to play tackle football for the very first
project goals and have an opportunity to ask questions directly
time. After the first full week of long practices
to the owner and the contractor.
in the hot sun (full pads for 3 hours at 80-90 degrees), he
After the kick-off session, we also implemented a Community
decided he wanted to quit. When he talked to us about it
Coordination Team (CCT) comprised of these members plus
we explained to him that he had made a commitment. He
other influential business owners and representatives from
needed to follow through and keep the commitment that
the impacted neighborhood community. This CCT met once
he had made to play on the team. He looked at us and said,
each month and it provided a beneficial two-way exchange
“That’s not fair. Nobody else keeps their commitments; none
of information between the public (providing ideas and
of my friends have to keep their commitments. Why does
suggestions based upon life within the construction zone) as
our family have to keep them?”
well as the construction team (providing insight to the public
I believe that achieving success in life—and success
leaders on the schedule and challenges of a large construction
in partnering—is about keeping commitments. We have
project). This partnering relationship proved to be extremely
commitments within our internal teams, commitments we
valuable to everyone involved.
make between contractors and owners, and one area in which
Based on this experience and 20 years as a professional
I believe that we can often improve upon is partnering with,
engineer and partnering facilitator, I would like share three
and keeping commitments with our stakeholders.
tips for successfully engaging your stakeholders.
Partnering with the Public Project of the Year Diamond Award, we recognized that a large
1. Plan Your Partnering Session Far Enough Ahead So You Get the People You Need in the Room Together
part of our success was due to some strategic partnering we
Often times, teams plan partnering sessions at the last
used with our stakeholders. On SR-193, we invited some of our
minute. Project Managers need to realize that one of the ways
key stakeholders to attend a portion of the kick-off partnering
facilitators can add value is to identify the participants who
workshop so that they would feel included as part of the project
should be invited to the partnering session and when they
team. We included representatives from the three affected cities,
need to be there. If the team doesn’t provide enough notice
emergency services personnel, and multiple representatives
to properly prepare for and plan a great session (including
from a large industrial business area that would be affected by
ensuring that the right people have been invited), they are
construction. This was an opportunity for the stakeholders to
missing out on a great opportunity!
When our Clearfield, Utah, SR-193 project won the IPI Partnered
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Partnering Magazine November/December 2014
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2. Discuss Stakeholders in Your Pre-partnering Interviews
Sydne Jacques, PE, SIPI
Most facilitators perform “pre-partnering interviews� with
Associates is an Award-winning Partnering
key members of the team. Make sure to identify and discuss
Facilitator who has worked in the
the various stakeholders who can affect the project. For
construction industry as a professional
instance, on transportation projects, I always ask about
transportation engineer, partnering
the different utilities that will potentially be involved or
facilitator, and public information officer
affected. They play a critical role, but are often overlooked.
for more than 20 years.
Sydne Jacques – Principal, Jacques &
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. www.partneringinstitute.org
November/December 2014 Partnering Magazine
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PARTNERING– YEAR IN REVIEW
IPI’s Top 10 from 2014
PARTNERING IPI’s Top 10 Achievements from a recordsetting year
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Number 1 IPI’s Unprecedented Growth The effect of any organization can be measured by its membership and its influence. In just a few short years, IPI
thank you! If not, it is time to get involved.
Partnering is here to stay and together, we can change the industry!
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Number 2 The IPI Owner’s Roundtable
2014 HAS BEEN AN OUTSTANDING
has done some incredible things. We
YEAR FOR INTERNATIONAL
have helped support the City and County
This year has been focused on spreading
of San Francisco—the first City of the
the IPI Collaborative Partnering Model, the
world to adopt a structured approach to
IPI Specifications, and the IPI Matrix within
partnering through all 6 of its construction
the industry. To that end, the Vertical and
departments that run projects. We have
Horizontal Construction Committees each
trained more than 600 construction
created “hot lists” of influential owners and
professionals in the Collaborative
invited them to an IPI Owner’s Roundtable
Partnering Model. We have 7 committees
in May.
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
focused on partnering and have launched
Facility Owners from Southern
this magazine. But perhaps most exciting is
California, to Ohio to Sweden gathered
our growth. 2014 has not finished yet and in
to hear about the Caltrans Partnering
this year we have grown more than 160%.
Program from Division of Construction
We now number more than 100 Member
Chief Mark Leja, about SFO’s program from
Organizations and represent hundreds
COO Ivar Satero, and received an industry
of billions of dollars of construction each
perspective from C.C. Myers, Inc. CEO, Dan
year. With every Owner agency, contractor,
Himick. Each gave excellent testimonials,
designer, professional facilitator, CM, and
shared best practices and techniques to
ON THE ORGANIZATION AND THE
associate Member, our movement grows
maximize what they could accomplish with
PARTNERING MOVEMENT.
stronger. If you have already joined IPI,
their teams through partnering.
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
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Partnering Magazine November/December 2014
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Number 4 Facilitator Certification In 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!
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recorded—contact IPI if you would like a copy of the recording
Number 5 Michigan State University and the “Barriers to Partnering” Research
or would like to participate in future events.
This year, IPI launched a research partnership with Michigan
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
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State University. Our first funded project resulted in a Research
Number 3 New IPI Committees
Report entitled An Inquiry to Move an Under-utilized Best
The more you give to an Association, the more benefits you
Management Program, the report summarizes the findings from
receive. This year, we launched two new committees—The
surveys of experts on construction partnering.
Aviation Committee, and the International Committee. The
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
In the study, the experts identified four key barriers to partnering:
Aviation Committee launched in October of 2014 and represents
Organizational, Cultural, Legislative, and Project-team related.
elite members of the Aviation sector from all over the United
All in all, they identified 25 barriers and ranked them. In the top
States and the world. This group will be focused on spreading
12 Barriers to Partnering, Cultural Barriers emerged as the most
the IPI Model of Collaborative Partnering and tailoring it to
frequent barrier to partnering (6 of 12). IPI Members can download
Aviation programs. The Committee is Co-Chaired by Geoff
the study for free (a $750.00 value!) by logging in to the IPI Website.
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
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Number 6 Partnering Magazine
by John Thorsson of NCC Construction Sweden and Zig Rubel of
In March, 2014 IPI launched Partnering Magazine. The bi-monthly
Aditazz and we have already made inroads in the United Kingdom
Magazine has become the voice of IPI and is the newest way to
with Constructing Excellence and with organizations and IPI
highlight our Members, identify success stories, and share best
Members in India. This promises to be an exciting and innovative
practices and cutting edge partnering research with the industry.
Committee! Make sure to contact IPI to get involved!
We currently distribute to 6,000 people every two months.
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November/December 2014 Partnering Magazine
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PARTNERING– YEAR IN REVIEW 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.
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Aditazz for helping us take the IPI Model Global. Make sure to
Number 9 $1 spent on Partnering = $96 Savings to the Project
submit your success stories and photos so we can highlight you
Over the past two years, IPI Partnered Project of the Year
and your teams!
applicants estimate that for every dollar they spend on Partnering,
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
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they save $96 off the project budget. Partnering is an incredibly
Number 7 “On Time, On Budget”
valuable investment! In an article entitled Return on Investment
This year IPI published its first IPI Owner’s Guide, On Time On
The results are staggering. Partnered Projects clearly outperform
Budget. This guide walks the reader through the 10-step process
traditional projects in terms of cost, schedule, quality, and safety.
for adopting a Partnering Program. Our mission is to make
In 1996, the Construction Industry Institute interviewed more than
Partnering easier for you and your teams to implement. The
350 project teams. They found the benchmark for partnering at the
process starts with the IPI Partnering Specifications and Matrix,
time was 10% budget savings, 20% schedule savings, and perhaps
continues with training, and ultimately involves engaging with
most importantly a 10-fold improvement in safety.
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
(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.
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
Time On Budget helps you apply lessons learned on thousands of
consistently shave full seasons off of schedule and 21 of the 29
projects to your program in 25 pages. All IPI Members are eligible
projects had zero time loss injuries! These results are incredible
to receive a free copy and get discounts on subsequent copies.
and IPI continues to share emerging data with our Members.
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Visit the IPI Website for details.
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Number 8 Collaborative Partnering Orientation Training
And... Number 10 IPI First
In 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
This year, IPI launched our new Collaborative Partnering
that the single most important contributor to project success is
Orientation Training. Attendees receive an overview of the IPI
a collaborative project team. Firms and organizations that join
Collaborative Partnering Model, including the IPI Matrix and
up with IPI have raised their hands and demonstrated to the
Specifications program. The training was launched on the heels of
industry that they are pushing collaboration and partnering to
a successful, four city presentation of Collaborative Partnering to
the next level. When you have a choice, improve your team with
more than 180 workshop attendees in Delhi, Chennai, Goa, and
an IPI Member! The outstanding teams of the future start with
Mumbai, India. To date, IPI has trained more than 600 construction
collaboration as a core value—so choose IPI First!
professionals on the IPI Model. Teams who understand how to
Thank you for your support of IPI and for your contributions
perform in a collaborative way are more creative, resilient, and
to the partnering movement to make this our best year ever!
outperform traditional teams consistently. Sign up today!
Here’s to 2015!
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Partnering Magazine November/December 2014
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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
Gold Line Bridge, Arcadia, CA
2013 NAIOP Community Enhancement Day, Seattle, WA
usa.skanska.com
RESEARCH ROUNDUP
Got Risk?
Survey shows that a highly collaborative team can overcome any uncertainy the team faces
T
his fall, McGraw Hill Construction published a new
This Smart Market Report highlights the industry need for
Smart Market Report, entitled “Managing Uncertainty
expanded adoption of the structured approach to Collaborative
and Expectations in Building Design and Construction.”
Partnering. Each of these three issues: improved coordination
The research team used a series of surveys and an Owner’s
between the designer and builder, more engagement by the
Advisory Group to better understand what risks owners,
owner and clearly defined goals, and a more aligned team,
contractors, and architects are most concerned about and
are all resolved through structured partnering. By aligning
what they believe project teams should do to mitigate it.
the team early and engaging end-users and stakeholders in the process, the project team simultaneously improves issue
A number of key issues emerged from the study that highlight the need for improved consensus-building and
resolution and reduces risk on the job. Truly, this is a win-winwin for the owner, contractor, and architect.
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.
14
Partnering Magazine November/December 2014
FAST FACTS
Authors: Stephen A. Jones and Harvey Bernstein (McGraw Hill) Initial survey 1500 people Follow-up Survey: 155 Owners, 82 architects, 78 contractors (large and small) Online surveys and telephone interviews Owner’s Advisory Group University of Chicago GSA Public Buildings Service Crate & Barrel Whirlpool Corporation
Hines Sutter Health Walt Disney Imagineering
Source: Jones, Stephen & Bernstein, Harvey, Smart Market Report: Managing Uncertainty and Expectations in Building Design and Construction”, McGraw Hill Construction, 61pp (2014)
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Making SFO’s Partnering Program Fly For almost two decades OrgMetrics has been providing Partnering Services for San Francisco International Airport’s renowned Partnering Program
Partnering Program Development/Facilitation • Project Partnering Facilitation • Strategic Partnering Facilitation • Facilitated Dispute Resolution • Project Scorecards
www.orgmet.com | (925) 449-8300 www.partneringinstitute.org
November/December 2014 Partnering Magazine
15
RESEARCH ROUNDUP Understanding Uncertainty
Ranking
The Risk
Who Typically Owns it?
1st
Unforeseen Site Conditions
Neutral – not one entity
2nd
Design Errors
Architect
3rd
Design Omissions
Architect
contractors) agreed that unforeseen site conditions were the
4th
Contractor-Caused Delays
Contractor
number 1 cause of risk on projects (see table at right). The
5th
Owner-Driven Changes
Owner
second ranked issue was Design Errors (41% owners, 21%
6th
Owner-Caused Delays
Owner
architects, 49% contractors) and the third ranked was Design
7th
Construction Coordination Issues
Contractor
Uncertainty 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%
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
(15%) versus contractors (49%, 55%) and owners (41%, 41%) A second example of this lack of alignment emerged when
the impact of their own delayed decisions, Contractors
respondents were asked “Who benefits the most from
tend to underestimate the impact of supply chain delays,
project uncertainty?”
and architects tend to underestimate problems caused by
In this case, Owners (50%) and Architects (47%) agreed that
design flaws. This lack of alignment sets up an adversarial
Contractors gained the greatest advantage from uncertainty.
environment that often haunts project teams.
When Contractors were asked the same question, (18%) agreed.
To give you a specific example, notice the difference between how architects rated Design Errors (21%) and Design Omissions
(Contractors claimed that Trade Contractors gained the most advantage from uncertainty (32%)).
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16
Partnering Magazine November/December 2014
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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
“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
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!
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November/December 2014 Partnering Magazine
17
CEO’S MESSAGE
Collaborative Partnering…
A 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
the size and risk level of
you want. Then you dine
Founder and CEO,
each project. So for “micro”
on what you have selected.
International Partnering Institute
projects (projects up to
In a RECIPE you need all
W
$5M and of short duration)
of the ingredients blended
ow, the success
the elements require a
together in the order and
we’ve seen from
professionally facilitated
manner designed so you get
our members
Partnering Kick-off
the result you want. Can you
who are implementing the
Workshop where the team
imagine if you were going
IPI Collaborative Model
develops their Partnering
to bake a cake and you left
has been amazing and
Charter. They do not have
out the sugar and baking
very rewarding for the
any project scorecards
powder? You would end
IPI Board of Advisors and
required and they may use a
us with a flat, gluttonous
staff this year. For example,
“virtual” process. For a large
bread like substance. Ugh!
San Francisco International
project, the elements include
Certainly not what you
Airport has completed $1.4
quarterly professionally
were hoping for.
billion of work in the past
facilitated sessions, a
three years without even a
monthly project scorecard,
2015 with the greatest
potential claim and they have
and a multi-tiered approach
desire to help our members’
saved 20-30% per square foot
by having Executive,
projects to get the kind of
over other aviation projects.
Core and Stakeholder
results that San Francisco
This is what is possible!
team partnering sessions.
International Airport
Partnering Training and the
has, I hope you will use
and more facility owners
inclusion of subcontractors
the RECIPE that the IPI
and project teams have
are also required for large
Committees have developed
implemented the IPI
projects.
for you. These are based
Over the past year more
Collaborative Partnering
We are beginning to see
on what worked and what
model. This includes using
some people look at the IPI
didn’t work for hundreds
the IPI Specification and
Specification and Matrix as a
and hundreds of projects.
the IPI Matrix.
MENU rather than a RECIPE.
Collaborative Partnering
In a MENU you and pick and
is YOUR recipe for project
choose the elements that
success!
These show you how to “scale” your partnering to 18
So, as we look toward
Partnering Magazine November/December 2014
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WINNER OF THE 2014 CALTRANS EXCELLENCE IN PARTNERING AWARD “BEST IN CLASS” FOR PROJECTS GREATER THAN $50 MILLION Highway 65 Lincoln Bypass Project Caltrans 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 S 11555 Dublin Boulevard, P.O. Box 2909, Dublin, California 94568-2909 925-829-9220 w w w . d e s i lva g at e s . c o m Contractors License No. 704195A
A Collaborative Builder
SAN RCC 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
SAN DIEGO RENTAL CAR CENTER (RCC) SAN DIEGO, CALIFORNIA 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.”
Renderings provided by Demattei Wong
January 2014
July 2014
November 2014
“Building on our proud past, we’re now constructing your future” 6100 Center Drive, Suite 1175, Los Angeles, CA 90045
| 310.421.0269 | www.austin-ind.com/commercial