Beyond Collaboration - The Benefits of Integrated Delivery

The Future of Professional Practice: The Next Generation of Integrated Delivery, Emerging Technology and Practice Management

“BEYOND COLLABORATION – THE BENEFITS OF INTEGRATED DELIVERY” presented by:

Doug Parris, Todd Buchanan, Tom Owens

“BEYOND COLLABORATION – THE BENEFITS OF INTEGRATED DELIVERY”

• What is it?

• Why does it Matter?

• What is Contract Basis?

• How do we do it?

• Who are the Early Adopters?

• Value

“BEYOND COLLABORATION – THE BENEFITS OF INTEGRATED DELIVERY”

Our definition: Integrated Delivery is a project approach which integrates, from start to finish the three major stakeholders (owner / user, designers and constructors/fabricators) around mutual project outcome based objectives.

“BEYOND COLLABORATION – THE BENEFITS OF INTEGRATED DELIVERY”

Before Integration 1999 → Stagnant factory line 27 days

The Changing Marketplace: Boeing 737

After Integration Today → Moving factory line 11 days (or less)

“BEYOND COLLABORATION – THE BENEFITS OF INTEGRATED DELIVERY” At its best, all economic incentives are aligned and mutual, the process is based on open information sharing, design through fabrication and construction is based on the collaborative interaction of all parties, and no work or information creation redundancies.

“BEYOND COLLABORATION – THE BENEFITS OF INTEGRATED DELIVERY”

“BEYOND COLLABORATION – THE BENEFITS OF INTEGRATED DELIVERY” Traditional Integrated Team

Owner PROGRAM/OPERATIONS

Designer

Builder/Fabricators

DESIGN INTENT

VIRTUAL DESIGN/CONSTRUCT

PHYSICAL CONSTRUCT

TURNOVER OCCUPANCY

“BEYOND COLLABORATION – THE BENEFITS OF INTEGRATED DELIVERY” Traditional Fragmented, assembled on “just-as-needed” or “minimum-necessary” basis, strongly hierarchical, controlled

Integrated Delivery Teams

An integrated team entity composed of all project lifecycle stakeholders, assembled early in the process, collaborative

Linear, distinct, segregated; knowledge gathered “just-as-needed”; information hoarded

Process

Concurrent, multi-level, integrated; early contributions of knowledge and expertise; information openly shared

Individually managed, transferred to the greatest extent possible

Risk

Collectively managed, appropriately shared

Individually pursued; minimum effort for maximum return; (usually) first-cost based

Compensation / Reward

Team success tied to project success; valuebased

Paper-based, 2 dimensional; analog

Communications / Technology

Digitally based, virtual, 4 dimensional; Building Information Modeling

Minimum effort for maximum return; minimize or transfer risk; don’t share

Agreements

Encourage, foster, promote and support open sharing and collaboration, full integration

Education

Team-based, integrated, collaborative; technologically inclusive; a materials and methods focus in addition to composition

Individually focused, emphasis on composition

“BEYOND COLLABORATION – THE BENEFITS OF INTEGRATED DELIVERY”

• What is it?

• Why does it Matter?

• What is Contract Basis?

• How do we do it?

• Who are the Early Adopters?

• Value

“BEYOND COLLABORATION – THE BENEFITS OF INTEGRATED DELIVERY” Our Client’s Viewpoint:

– Waste (30%), errors, cost, and schedule overruns – Lack of collaboration, poor information integration, lack of common goal – “Project organization…silos between design, fabrication, and construction or building operation.”

– “Participants optimizing for its own interest rather than that of overall project.”

“BEYOND COLLABORATION – THE BENEFITS OF INTEGRATED DELIVERY” And, their observations of the opportunities created by collaboration were: –“Virtual buildings created in a fully collaborative environment.”

–“Building information models …create the best chances for finding…mistakes; optimizing systems, materials…reducing cost of building and building operations.”

–“Project teams…include designers, contractors, suppliers, manufacturers, facility managers… adopting a systems approach…result in true collaboration in best interest of the project.

August 2004 CURT Whitepaper 1202

July 2006 CURT Whitepaper 1003

“BEYOND COLLABORATION – THE BENEFITS OF INTEGRATED DELIVERY” Design

Cost

$24B

Construct

$400B

Operate

$4T

Knowledge

More

Less

Design

Procure

Build

Manage slide courtesy of Autodesk

“BEYOND COLLABORATION – THE BENEFITS OF INTEGRATED DELIVERY” From Constructors Viewpoint: – Replace the conflict with teamwork – Optimize industrialized workforce – offsite fabrication – Reduce speculative crapshoot – Share Rewards (w/risk) − Early Involvement − Common Goals − Teamwork − Utilizing Multiple Experiences/Expertise − Reduced Costs − Best Value/Product − Creative Contracting − Operational & Maintenance Savings − Relationships

“BEYOND COLLABORATION – THE BENEFITS OF INTEGRATED DELIVERY”

From Constructors Viewpoint: • Impact of eliminating 10%, 15% or 20% of the waste – $10 to $18 million on a 500,000 sq ft replacement hospital

• Owner – – – – –

Be the leader. Market responds to the customer.

Change your paradigms; demand more.

Create a lean decision-making process.

Create clear, consistent project goals for everyone.

Create incentives for exceptional results.

• Industry – – – – –

Integrate into single-purpose colocated teams.

Create strategic supply chain relationships.

Common goals, shared incentives and managed risk Open cost sharing—help all participants drive costs out of their businesses.

Observe, measure, improve.

“BEYOND COLLABORATION – THE BENEFITS OF INTEGRATED DELIVERY”

From Constructors Viewpoint: • Collaborative environment – Mutual benefit to owner, architect, contractor and subcontractors – Improved communication and understanding

• Elimination of waste – Better planning – Right materials showing up at the right time – Reduced rework – Improved communication

• Prefabrication – Modularization of major components – More off-site fabrication – Increased quality

“BEYOND COLLABORATION – THE BENEFITS OF INTEGRATED DELIVERY”

“BEYOND COLLABORATION – THE BENEFITS OF INTEGRATED DELIVERY”

From Architect’s Viewpoint: – Put the fun back into building – Replace the conflict with teamwork – Harness the power of the construction industry to deliver the project – Realize Design Vision more effectively and efficiently – Share Rewards (w/risk)

“BEYOND COLLABORATION – THE BENEFITS OF INTEGRATED DELIVERY” From Architect’s Viewpoint: – Transformation of process – Become more of a learning organization – Deeper immersion in the craft – No RFI’s/change orders – Reallocation of focus – research/discovery/innovation – Speed to market

“BEYOND COLLABORATION – THE BENEFITS OF INTEGRATED DELIVERY”

• What is it?

• Why does it Matter?

• What is Contract Basis?

• How do we do it?

• Who are the Early Adopters?

• Value

Intention / Relational Contract • The agreement goal should be to attain high quality delivery of a project through elimination of redundancy, errors and waste. • The goal is realized by aligning the interests of owner, builder and designer with a mutually agreed definition of project success.

Integrated Delivery requires a culture of Collaboration • For success, design of the project must proceed with informed, accurate information concerning program, quality, cost, and schedule.

• The entire teams’ expertise will need to be integrated throughout the process to be attain success.

• Isolation or collaborating only at milestones will not achieve the benefits of integration, constant free flow of information, working together, is key.

Contract Concepts to Build Culture • Align risk and reward to optimize project success over individual entity success • Align risk and reward with a party's ability to control risk • Require an open information environment • Require everybody to think operate, design and construct

Contract Steps: • Start with all three parties contracting together to eliminate “Owner in the middle.”

• A team of Owner, Builder and Designer lead the project with a bias toward consensus decision making.

• The program should be complete and a target price set agreeable to all • All three parties agree to openly share information and cooperatively collaborate for the benefit of the project.

• As Trade Contractors and Design Consultants are added they acknowledge the new arrangement.

Contract Steps • Engage the Builder during early design so that pricing, constructability and value engineering are integrated from the beginning • Make cost and schedule design criteria • Set appropriate contingencies, share one between Builder and Designer • Put profit for both Builder and Designer at “risk for failure’ to perform as a team with a corresponding reward shared by both if they perform above the standard of care • Engaging Trade Contractors early for the purpose of collaborating with their complimentary engineering discipline and driving innovation • Major trade contractors structure, mechanical, electrical, plumbing, skin and drywall are selected during schematic design to facilitate an integrated collaborative design process.

Contract Supports Lean • Design the process first then design the project • Concurrent set based design, take forward multiple design alternatives to the last responsible moment • Incorporating value as the key design proposition • Build virtually before building physically – – – –

Eliminate redundant efforts and conflicts Optimizing means and methods Maximizing off site construction Zero RFI goal

Can you use a traditional contract?

Not really.

• You can’t align risk and reward to optimize project success over individual entity success if the designer and builder are not a team • Cultural change is hard enough with a new contract, without it people revert to thinking about their interests and controlling information • Nearly impossible to integrate operating, design and construction knowledge without huge risk to the designer

Can you go part way?

Possibly.

• Find the key disciplines for the large costs on the project • Find open minded designers willing to “contract out” construction documents • Find open minded trade contractors willing to draw shops/construction documents with designer oversight

NBBJ’s template

http://www.nbbj.com/access/IntDelDraftNBBJ.doc

“BEYOND COLLABORATION – THE BENEFITS OF INTEGRATED DELIVERY”

• What is it?

• Why does it Matter?

• What is Contract Basis?

• How do we do it?

• Who are the Early Adopters?

• Value

“BEYOND COLLABORATION – THE BENEFITS OF INTEGRATED DELIVERY”

Process Design

SUSTAINABLE DESIGN

PROCESS DESIGN

Integrated Design Integrated Fabrication

LEAN CONCEPTS

BIM

Building Information Modeling Sustainable Design INTEGRATED DELIVERY

“BEYOND COLLABORATION – THE BENEFITS OF INTEGRATED DELIVERY”

Process Design: Creating a comprehensive road map For the own design construct team in order to navigate the limitless choices offered throughout the creative journey.

The organization and ideation that creates the framework for outstanding design, execution & extraordinary results Is tailored to project success in very specific terms and is developed by a collaboration of all participants.

“BEYOND COLLABORATION – THE BENEFITS OF INTEGRATED DELIVERY”

Integrated Design: Engaging the broadest range of Creative and design disciplines in an effective and efficient manner from the beginning ensures that the solutions are as rich and content filled as possible.

This engagement of behavioral, artistic and engineering perspectives offered at the earliest stages provides the opportunity to discover and explore new building typologies in a timely way.

“BEYOND COLLABORATION – THE BENEFITS OF INTEGRATED DELIVERY”

Integrated Fabrication: The opportunity to tap the skills and knowledge of the fabricate/construct trades and professionals in optimizing the methods for design realization can make the design tectonics better and more sustainable This approach can also eliminate wasteful duplication of documentation efforts and the errors associated with multiple information transfer

“BEYOND COLLABORATION – THE BENEFITS OF INTEGRATED DELIVERY”

Building Information Modeling (BIM): BIM is an evolving term generally referring to the broad use of 3D digital building models with linked parametric information to achieve the goal of integrated project data, enhanced visualization, and data sharing and reuse by various members of the building team. BIM is the enabler for integration and open information sharing

“BEYOND COLLABORATION – THE BENEFITS OF INTEGRATED DELIVERY”

(BIM) in practice: building design visualization programming, massing, cladding design, interiors, virtual walkthrough’s model intelligence area calculations, envelope analysis, quantity reporting, schedules, cost estimating integrated design across disciplines design team: architecture, interiors, lighting, structural, MEP, civil construct team: contractor, subcontractors, fabricators owner: facility managers, department user groups BIM as a facility management tool deliver model to owner for future O&M

building information model | the model as the nucleus

visualization | building design

model intelligence | 3d libraries

model intelligence | extractions

model intelligence | live interior elevations

model intelligence | modules

model intelligence | modules

model intelligence | sustainable design

model intelligence | reporting

model intelligence | travel distance

model intelligence | medical equipment

model intelligence | doors

model intelligence | door intelligence – door schedule data (live)

model intelligence | automated door schedule

model intelligence | wall calculation

model intelligence | cost estimating

integrated design | multi-discipline coordination

SITE

integrated design | model integration

SITE CORE

integrated design | model integration

SITE CORE STRUCTURE

integrated design | model integration

SITE CORE STRUCTURE

integrated design | model integration

SITE CORE STRUCTURE SHAFTS

integrated design | model integration

SITE CORE STRUCTURE SHAFTS HVAC

integrated design | model integration

SITE CORE STRUCTURE SHAFTS HVAC PLUMBING

integrated design | model integration

SITE CORE STRUCTURE SHAFTS HVAC PLUMBING FIRE PROTECTION

integrated design | model integration

SITE CORE STRUCTURE SHAFTS HVAC PLUMBING FIRE PROTECTION TECHNOLOGY

integrated design | model integration

SITE CORE STRUCTURAL SHAFTS HVAC PLUMBING FIRE PROTECTION TECHNOLOGY INTERIORS

integrated design | model integration

SITE CORE STRUCTURAL SHAFTS HVAC PLUMBING FIRE PROTECTION TECHNOLOGY INTERIORS EQUIPMENT FOOD SERVICE

integrated design | model integration

SITE CORE STRUCTURAL SHAFTS HVAC PLUMBING FIRE PROTECTION TECHNOLOGY INTERIORS EQUIPMENT FOOD SERVICE SHELL

integrated design | model integration

integrated design | the big room concept

integrated design | collision detection

above ceiling coordination

integrated design | coordination

operating room equipment booms

integrated design | virtual walk-through’s

collaboration | contractor modeling

collaboration | communication timeline

facility management | campus information model

“BEYOND COLLABORATION – THE BENEFITS OF INTEGRATED DELIVERY”

• What is it?

• Why does it Matter?

• What is Contract Basis?

• How do we do it?

• Who are the Early Adopters?

• Value

“BEYOND COLLABORATION – THE BENEFITS OF INTEGRATED DELIVERY”

Integrated Delivery – the early models − Community Health Partners − Bay Park − Wake Medical Center

Integrated Delivery by Contract - current − Sutter - PAMF (in Design Intent) − Virginia Mason (in negotiation)

Integrated Delivery in Principle − Mass. General Hospital − Cleveland Clinic – Glickman Tower − Providence Novi − Swedish Orthopedic Institute −Wellcome Trust

“BEYOND COLLABORATION – THE BENEFITS OF INTEGRATED DELIVERY”

Bay Park Community Hospital Oregon, OH • 23 months from beginning of design to move in • SPE integrated team (design firm, CM, mechanical, electrical) surfaced all contingencies.

• Precise structure enabled high degree of off-site fabrication.

• Dramatically reduced waste • Returned 11% of construction budget in added scope

NBBJ

“BEYOND COLLABORATION – THE BENEFITS OF INTEGRATED DELIVERY” Sutter Healthcare • Facility Planning and Design (FPD) hit upon the success of Toyota and determined that if they could apply their methodology to design and construction projects, the executive challenge could be met.

• In September 2004, after 2 years of research and exploration, Sutter Health made the decision and commitment to go Lean.

• Lean – Reinvent how hospitals deliver care to the patient (flow, wait time, etc) and how we deliver design and construction services – Knowing the customer – Work flow – Pull scheduling – Batch size and …

– All the attendant behavior and processes to effect them

“BEYOND COLLABORATION – THE BENEFITS OF INTEGRATED DELIVERY” Sutter Healthcare • Sutter developed their 5 Big Ideas that are the framework for approaching all aspects of Sutter’s Lean Project delivery.

Collaborate—really collaborate—throughout design, planning and execution.

Increase relatedness among all project participants.

Projects are networks of commitments.

Optimize the project, not the pieces.

Tightly couple action with learning.

“BEYOND COLLABORATION – THE BENEFITS OF INTEGRATED DELIVERY” Sutter Healthcare • FPD’s goal was to increase the reliability that projects conceptually approved and funded in year 1 are designed and constructed in year 5+: – – – – –

On time or early Within budget or less Without claims Safely (without creating patients) Without burning out FPD staff

• For 3 years, we have been training and collaborating with the AEC community.

– – – –

Learning the skills needed for Lean Project delivery Developing an implementation strategy Demonstrating our commitment to continually improving Openly sharing the learning in our project community

AEC = architecture, engineering and construction.

“BEYOND COLLABORATION – THE BENEFITS OF INTEGRATED DELIVERY” Sutter Healthcare • Our expectation now is across-the-board deployment with a “lite” version for smaller projects.

• We’ve tested and tried for 3 years. We’re at a point where we can coalesce the learning and results and develop a standardized work plan for projects to follow and improve on.

• The plan is to share the experiences of 4 teams currently completing project and business case validation and create a standard work process for this stage.

This will be followed by standardized work plans for: – – – –

Design Documentation Permitting Construction

• We’ve developed and continue to add to a stable of architects, engineers and contractors who are willing and able to work in this fashion.

“BEYOND COLLABORATION – THE BENEFITS OF INTEGRATED DELIVERY”

• What is it?

• Why does it Matter?

• What is Contract Basis?

• How do we do it?

• Who are the Early Adopters?

• Value

“BEYOND COLLABORATION – THE BENEFITS OF INTEGRATED DELIVERY”

Value: This is a relatively new approach and the first projects to use it from start to finish have yet to be completed… however some aspects have been realized on projects which have produced positive results.

Will it save money?

•Per industry estimates 30% or more is at stake •Sutter Health expects minimum 5% return based on experience with MEP systems alone •Among other areas Mortenson reports significant savings in structural alone

Will it save time?

•Overall likely about the same, but likely less time in construction due to virtual construction, 4D construction planning and off-site fabrication •This can improve cash flow, reduce cost risk once construction initiated

“BEYOND COLLABORATION – THE BENEFITS OF INTEGRATED DELIVERY”

Value: Will it eliminate material waste?

•Experience of NBBJ at Harborview virtually elliminated any waste scraps from sheetmetal, piping, conduit,cable tray •Mortenson reports achieving virtually zero structural steel waste

Will it be green ?

•Integrated analysis of green alternatives from beginning to end makes cost effective green more likely •4D construction planning improves potential for minimizing construction waste ( scaffolding, formwork, drywall timeframe)

Will it improve quality?

•Total team (Client/Designer/Builder) engagement in process ensures “appropriate” quality choices •Engagement of real fabricators in detailing ensures best quality/price alignment

“BEYOND COLLABORATION – THE BENEFITS OF INTEGRATED DELIVERY” US Architecture Engineering Construction Waste • Total ’05 US Construction Industry $1.03 Trillion • 30% Waste* = $309 Billion • Non Residential Building =$275 Billion • 30% Waste*=$85 Billion Global Annual Cost of Poverty Elimination, Carbon Reduction • Poverty =$75 B (Sachs) • Carbon=$10B (@4%) Our Industry has the ability to Fund the Changes through Integration…

*CURT

“BEYOND COLLABORATION – THE BENEFITS OF INTEGRATED DELIVERY” Currently, there is and abundance of resource and reference information available on the internet. The following are several websites of interest: • • • • • • •

AIA Integrated Practice Website http://aia.org/ip.default Construction Users Roundtable (CURT) http://www.curt.org Associated General Contractors of America (AGC) http://www.agc.org/index.ww Design-Build Institute of America (DBIA) http://www.dbia.org/ Lean Construction Institute (LCI) http://www.leanconstruction.org/ Construction Industry Institute (CII) http://www.construction-institute.org NBBJ Integrated Delivery Contract – http://www.nbbj.com/access/IntDelDraftNBBJ.doc • Refabricating Architecture – Stephen Kieran and James Timberlake • Product Development for the Lean Enterprise – James Kennedy

The Future of Professional Practice: The Next Generation of Integrated Delivery, Emerging Technology and Practice Management

“BEYOND COLLABORATION – THE BENEFITS OF INTEGRATED DELIVERY” presented by:

Doug Parris, Todd Buchanan, Tom Owens

Questions & Discussion