Partneringmagazine marchapril2014

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Issue 1 March/April 2014

partnering innovations SFO Shines On Terminal 3 East

INSIDE: page 8

page 14

On-Time, On-Budget

Bumping it Up with a DRL


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 March/April 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 March/April 2014 Partnering Innovations

IN THIS ISSUE

John Martin, San Francisco International Airport

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Larry Anderson, Salisbury University Center for Conflict Resolution Pierre Bigras, PG&E Roddy Bogus, Parsons Brinckerhoff Larry Eisenberg, Ovus Partners 360 Michael Ghilotti, Ghilotti Bros, Inc. Richard Grabinski, Flatiron West, Inc.

6

Dan Himick, C.C. Myers, Inc. Randy Iwasaki, Contra Costa Trans. Authority

Executive Director’s Report

Enhance Your Partnering with EI

Promoting Culture Change

The link between emotional

Mark Leja, Caltrans

7

intelligence and earnings.

Pete Matheson, Granite Construction Geoff Neumayr, San Francisco International Airport

Committee Spotlight

Jim Pappas, Hensel Phelps Construction Co. Zigmund Rubel, Aditazz Ivar Satero, San Francisco International Airport

The Facilitator Professional Emphasis Group (PEG)

Stuart Seiden, County of Fresno Todd Sutton, Skanska Civil, USA

8

Curt Weltz, Walsh Group

On-Time, On-Budget

EXECUTIVE DIRECTOR

There is no doubt that the

Rob Reaugh, MDR

construction industry needs to

David Thorman, CA Div. of the State Architect, Ret. Len Vetrone, Webcor Builders

become more collaborative.

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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Research Roundup Conflict is more costly than you think—use partnering strategies to reduce the cost of conflict.

16

Partnering Innovations

Facilitator’s Corner

Find out how SFO successfully integrates partnering into their

Michelle Vejby

innovative solutions and comes out

Email: mvejby@msn.com

on top, on time, and on budget.

COPYRIGHT

14

Use your project’s dispute resolution ladder when your team gets stuck.

18

CEO’s Message

Partnering Magazine is published by the International Partnering Institute, 291 McLeod

Transform how you work together—Your intentions count!

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

Cover photo of SFO Terminal 3 East, courtesy of Gensler, www.gensler.com, (and Joe Fletcher Photography).

subscriptions are $75 each for six issues. Postmaster please send address changes to IPI, 291 McLeod Street, Livermore, CA 94550.

www.partneringinstitute.org

March/April 2014 Partnering Magazine

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EXECUTIVE DIRECTOR’S REPORT

Sharing Best Practices Promotes Culture Change Rob Reaugh, MDR IPI Executive Director

of research: the first focused

get.” When you work with

I

on Emotional Intelligence (p.

IPI, this becomes especially

6) and the second describing

true. There are many ways to

how expensive day-to-day

get involved. Just let us know

t is with great

partnering to a new owner.

excitement that IPI is

We are proud to kick off

launching Partnering

the magazine by focusing on

conflicts can be on the job site

what it is you need and we

Magazine. Partnering

“Partnering Innovations.”

(p. 14). We are also pleased

can get you “plugged in.” We

Magazine represents a

In this issue we feature an

to announce the launch of

consistently see members,

new way for IPI to share

outstanding project recently

our new IPI Professional

like SFO, who have found

Collaborative Partnering’s

completed by one of our

Partnering Facilitator

Collaborative Partnering to

best practices, lessons learned,

Founding Members, the

Certifications (p. 6).

be the process that greatly

research and ideas to help

San Francisco International

The certifications were

increased their level of

our members be better able to

Airport (p. 10). With the 68,800

developed so you will know

project success. We want

create a culture of partnership

SF Terminal 3 Boarding Area

that people with the IPI

that for you too!

on their projects. In each issue,

East (BAE) Project, SFO and

designation have a proven

we will tap into the collective

the Hensel Phelps, Gensler

level of ability. This should

of IPI. You are an essential

wisdom of our members

and KPA Group have delivered

allow you to confidently

part of accomplishing our

along with those inside and

again. Many have been asking

select the best Facilitators

mission—to change the

outside of the industry who

how they consistently deliver

for your projects.

culture of construction from

can help us take partnering to

extraordinary results. In

Partnering Magazine is

combative to collaborative.

the next level. Our goal is to

this issue we highlight 3 of

for you. It is here to serve

We encourage you to share

arm you with practical ways

the “Keys to Success.” This

your needs. We invite you to

Partnering Magazine

to make you a better partner

issue also includes some

participate by sharing your

with your staff, boss, and

—regardless of whether

practical advice for how

success stories, questions,

colleagues. Together we can

you are a Project Manager

to best use your Dispute

thoughts, and lessons learned.

make structured partnering

leading weekly meetings, or

Resolution Ladder (p. 16).

an executive trying to “sell”

We highlight two new pieces

4

Partnering Magazine March/April 2014

There is an old saying, “what you give is what you

Thank you for being a part

and collaboration the norm for construction projects. www.partneringinstitute.org


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


PARTNERING IN THE TRENCHES

Using Emotional Intelligence to Enhance Your Partnering

I

Call for Facilitators

IPI Facilitator Certifications Are Now Available For some time now IPI members have been asking for a Professional Facilitator Certification. The need is to be able to

n an article published in February

So, what is emotional intelligence

identify those facilitators who have a good

2014 for the American Society of

and how might you use this to help your

level of ability. The Board of Advisors along

Civil Engineers, IPI member Mark

partnering effort?

with the Facilitator Professional Emphasis

Cacamis, State Construction Engineer,

The concept of emotional intelligence

Group (PEG) have developed a performance

Virginia Dept. of Transportation, and

has been around since the 1960’s but

based certification process with three levels

Mounir El Asmir, Assistant Professor,

became mainstream in 1995 with

of professional certification—Certified,

School of Sustainable Engineering

the publishing of Daniel Goleman’s

Senior, and Master levels.

and the Built Environment, Arizona

book Emotional Intelligence – Why it

State University, make the case that

can matter more than IQ. Goleman’s

emotional intelligence can improve

model outlines five main emotional

your partnering effort. In the article

intelligence’s: 1. Self-awareness

– the ability to know

project team members, you can improve

one’s emotions, strengths, weaknesses,

your partnering effort and improve your

drives, values and goals and recognize

overall project results. To support their

their impact on others while using gut

argument, the authors did a random

feelings to guide decisions.

study of eight of the Virginia DOT project

2. Self-regulation

– involves controlling

managers who had a reputation for

or redirecting one’s disruptive

having good projects. They found that

emotions and impulses and adapting

each of the eight PMs had an emotional

to changing circumstances.

intelligence score that ranged in the

3. Social

skill – managing relationships

very high (6 out of 8) or higher than

to move people in the desired

average (2 of 8) levels!

direction.

i e

4. Empathy

Emotional Intelligence

• The average salary of people with a high degree of EI is $29,000 more per year than people with a low degree of emotional intelligence. • The Thelink linkbetween betweenemotional emotional intelligence and earnings is so direct that every point increase in emotional intelligence adds $1,300 to an annual salary. Source: TalentSmart

– considering other people’s

feelings especially when making decisions. 5. Motivation

given number of partnering sessions. This process allows the marketplace to be the

the authors say that, by improving the emotional intelligence capabilities of

By using a performance based approach, certification is earned after performing a

– being driven to achieve

indicator of proficiency. Thus indicating that the facilitator was good enough to be hired numerous times. It was decided that a “test” or “classroom” based certification was not the best indicator of ability. The certification process requires a listing of the projects for which the facilitator was the professional facilitator, along with sharing the Partnering Charter, and contact information. There is also a requirement for an owner and contractor to provide a letter of recommendation. To become certified a professional facilitator must have successfully performed 25 partnering sessions. For Senior level, the requirement is 100 sessions; and for Master level the

for the sake of achievement.

requirement is 250 sessions. Professional

It is believed that emotional

you be a member of IPI, and there is a fee

intelligence can be learned, or at least improved. There are several instruments for measuring emotional intelligence in individuals. By improving

Partnering Certification also requires that of $250. For more details and information please contact the IPI office or send an email to ED@PartneringInstitute.org The first IPI Certified Professional

in these five areas it stands to reason

Partnering Facilitators will be honored

that our team members would be better

at the May 15th IPI Partnering Awards

equipped for the complex world of

ceremony.

construction projects. 6

Partnering Magazine March/April 2014

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COMMITTEE SPOTLIGHT

The Facilitator Professional Emphasis Group (PEG)

T

he IPI Facilitator Professional Emphasis Group, or PEG, is a place where professional facilitators come

must be an adequate pool of professional, seasoned partnering

together to share their perspectives, knowledge and

facilitators who can act as the change agents for partnering

lessons learned with one another and IPI. Members of the

programs and projects. This is why we want to work to make

PEG include professional partnering facilitators from all

the Professional Partnering Facilitator a profession.

over the US, Canada and Sweden. The purpose of the PEG is to tap into the collective wisdom of the facilitators who

The IPI Facilitator PEG is chaired by Jim Eisenhart, Ventura

participate in hundreds of projects all over the country

Consulting and Sue Dyer, OrgMetrics. The Facilitator PEG

and beyond. So far the PEG has focused on developing

meets every six weeks. All professional facilitators are invited

an IPI Facilitator Code of Ethics and they created the IPI

to participate.

Professional Partnering Facilitator Certification levels and process (see page 6 for more information).

Next up will be the implementation of a Mentor/Protégé process that will marry Senior Certified facilitators with

The professional partnering facilitator is an essential element in the process of developing culture change. There

IPI Launches Collaborative Partnering Orientation Training IPI’s Collaborative Partnering Orientation Training was

aspiring facilitators. And, the development of a Facilitated Dispute Resolution Facilitator certification criteria and process.

the Collaborative Partnering Program elements that are needed/required, based on the risk level of your project. The training will walk you through the Collaborative Partnering Specifications so you can choose the best spec for each project and understand the roles and responsibilities of the project team members and stakeholders. An experiential

born out of the many requests received for an introduction

element is also included where the participants will explore

to IPI’s Collaborative Partnering Model. As more owners

ways they believe increased collaboration could benefit

are adopting the model there was a need to provide an

their projects.

overview to their team members. This half-day orientation

This training can accommodate up to 30 attendees per

training presents a summary of the Collaborative Partnering

class. IPI members’ experiences show that making training

Model. The training is designed to help answer questions

required proves to be highly effective in contributing

that your team will likely have as you begin to implement

significantly to the success of their partnering programs.

the Collaborative Partnering Model. It can also be helpful

For best results you will want to include people from the

if you want to influence others to use the Collaborative

owner, contractor, designer and construction manager.

Partnering Model. You will be armed with a better overall

This will allow for a shared learning experience, aligned

understanding of what the model is, why it is needed, and

expectations, a common vocabulary along with learning

how it works.

about each others’ point of view. To schedule training(s) for

The training includes a review of the vertical and horizontal Collaborative Partnering matrices. These outline

www.partneringinstitute.org

your organization’s teams, give IPI a call at (925) 447-9100 or email ED@PartneringInstitute.org.

March/April 2014 Partnering Magazine

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BEST PRACTICES

On-Time, On-Budget How to start a Collaborative Partnering Program

T

here is no doubt that the construction industry needs to become more collaborative. We lose billions of dollars each year due to

loss of productivity, miscommunication, excess administration and claims. All of these dollars could be used to build things. Worse yet, is that the nature of construction is highly interdependent. Because of our interdependence, no one working on a construction project can just walk away from issues and succeed. We must have the cooperation of the other team members, who hold our success in their hands, as much as we hold it in our own. This is why IPI has created the Collaborative Partnering Program—a structured approach to developing

“Change will not occur if you don’t change. People don’t like to change.”

highly collaborative construction project teams focused on the success of their projects. To assist owners in starting their Collaborative Partnering Program, IPI has just published a new Owners’ Guide entitled On-Time On-Budget: How to Start a Collaborative Partnering Program. This easy to read guide walks owners through ten steps to starting their Collaborative Partnering Program (CPP).

Step 1 Decide to start a collaborative partnering program The first step is to decide to start a CP program and commit to making it happen. It is also important to understand what it is you want to achieve—lower prices, no claims, improved productivity, keeping your good people, etc. What do you want to achieve with your CPP? Knowing this will help you “sell” everyone on following you to achieve tangible results.

Step 2 Agree to utilize the IPI matrices and specifications Following the CPP structure (embedded in the matrices and specifications) is essential to supporting the development of a culture of collaboration. Taking a long term view is essential. Culture change will not happen overnight. It will take time. When change happens on your projects, others will take note and wonder how they are able to accomplish such significant results. This will lead to others learning and following the CPP structure, looking for similar results. 8

Partnering Magazine March/April 2014

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Step 3 Conduct orientation training Your people must know what you are trying to accomplish, that you are serious, and broadly what they are to do. The IPI CPP Orientation Training is essential to help support a good launch to your program. This training is best held jointly including the owner, contractor, users, designer and other key stakeholders. Together the counterparts learn about the CPP model, your objectives and what is expected. This will help you get some momentum going.

Step 4 Hire a partnering program consultant to assist and guide your culture change process Most organizations just “smell their own exhaust” and really don’t understand where they are dysfunctional. You will need a “change agent.” Someone who is not a part of your organization; is a subject matter expert; has much experience with the CPP and culture change; and is someone you will allow to help guide you on this journey. Change will not occur if you don’t change. People don’t like to change. You will need a strong (but kind) change agent that is on the outside!

Step 5 Appoint staff and create a structure to support your collaborative partnering program

Step 9 Develop performance measures (program and project) What gets measured gets done. What gets measured improves. If you believe these

You are embarking on a culture change effort that will play out on your

tenants, then you will definitely want to develop

projects and within all of your support functions. You will need to have a

performance measures for your program to

CPP organizational structure, up and down the organization, to help you

get regular feedback on what and how much is

achieve your results. This can include having a Partnering Program Manger

improving. For your projects you will want to

to help make sure all of the program elements get implemented, to having

measure that the team is following through with

representatives from the field level provide feedback, to having a policy making

what they committed to doing. This accountability

body. You will need to put some structure around your culture change process.

will keep their goals and commitments fresh in

Step 6 Develop a collaborative partnering steering committee

front of their faces each month.

Committee to identify barriers to partnering and then work to overcome

Step 10 Develop a participate in partnering recognition programs and awards

each barrier. This policy making body includes senior level decision

Recognizing those who are making it happen is

makers from the owner organization and construction industry, as well as

important. You can start your own, or participate

representatives from designers and CMs. It will be the collective wisdom

in IPI’s prestigious partnering awards. By

of this group that helps to steer you where you need to go.

celebrating the successes of your teams that

A very powerful step is to develop a Collaborative Partnering Steering

Step 7 Develop a collaborative partnering project manual

accomplished their goals, and became a highly functioning collaborative team; you will be

At the project field level, you will want to create a project partnering manual

broadcasting your commitment to culture change.

to guide the field teams on what they are to do to fully implement your

As people advance within your organization

partnering program. The guide can be updated as the steering committee

because they know how to create a culture of

changes policies or learns better ways of producing more significant results.

collaboration, you will be on your way to real,

Step 8 Provide joint collaborative partnering basics training (on the project manual) to all field personnel

lasting culture change. IPI’s new Owners’ Guide entitled On-Time On-Budget: How to start a collaborative partnering

Once your partnering manual is completed, you will want to provide

program is now available. Just email ED@

training to everyone in the field on the guide. This is called Partnering

PartneringInstitute.org to get your copy, or to get

Basics Training. This 4-8 hour training outlines, roles, responsibilities,

copies to share with those organization whom you

requirements, elements along with answering the question why you are

wish would establish a CPP. One copy is free for

establishing a CP program.

each IPI member.

www.partneringinstitute.org

March/April 2014 Partnering Magazine

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PARTNERING INNOVATIONS

An Exceptional Project Outcome for SFO TO SFO, AN EXCELLENT PROJECT OUTCOME (EPO) DESCRIBES A PROCESS, WHICH GIVES ALL STAKEHOLDERS A

of elegant design combined with a unique

Three Keys to Success

experience for United Airlines Passengers.

In order to ensure an EPO on highly

What is perhaps most incredible about the

complex projects, SFO implements the

new boarding area was how the project team

see three “Keys to Success” that make the

was able to vision, plan, design, construct,

SFO program so consistently successful:

and activate the new Terminal in just over

1. Executive

18-months, and managed to deliver it on time, under budget, and safely (no LT injuries). Other Airports have taken five years to deliver this type of project, but through

VOICE AND FULLY INTEGRATES EVERY

Collaborative Partnering, the team delivered

PROJECT TEAM FROM THE PROJECT

an Excellent Project Outcome (EPO).

Commitment to a

Collaborative Culture 2. A

Collaborative Partnering Program

with a Multi-tiered Approach 3. A

FAST Way to Tap into Stakeholder

Knowledge and Expertise

delivered more than $800 Million of work

Key to Success #1: Executive Commitment

he San Francisco International

without any claims. Construction programs

Like any process focused on changing a

Airport (SFO) and their design-build

world-wide are seeking them out to learn

culture, Collaborative Partnering requires

partners Hensel Phelps, Gensler and

how they are so consistently raising the bar

executive commitment. Notes Hensel

KPA Group have done it again! The newly

with each and every project, while remaining

Phelps VP Jim Pappas, “Airport Director

rehabilitated $138,000,000 and 68,800

true to the core values of highly collaborative

John L. Martin’s faith and commitment to

square foot Terminal 3 Boarding Area East

teams. What are they doing and how can you

Partnering empowers his management

(BAE) project has raised the bar in terms

apply it to your projects?

team to view their role as collaborators

EXECUTIVES TO THE FIELD LEVEL

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Partnering Magazine March/April 2014

Over the past 18 years, the Airport has

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“The Partnering Scorecards provided a safe way for project team members to be heard, while allowing the management team to take the pulse of the project, monthly.” — Judi Masqeuda, SFO PM

set of goals, it is essential to use a highly structured process. Remember, the objective is not solely to reduce conflict within the design/build team. Instead, an Excellent Project Outcome requires that the entire team (Owners, Tenants, IT Special Systems subs, the concessionaires, everyone) feel that they have a voice, have a stake in the outcome, and have bought in to the project. Furthermore, the structure must allow the team to interact with adjacent projects, so throughout the construction phase, the team is prepared to handle any issue that may arise. The result is that when it comes time to open the Terminal building to the travelling public, the entire team is realizing a “shared vision.” In order to develop a fully-integrated team for the BAE project, the Executive Team committed to a partnering structure that

rather than enforcers.” Too frequently in our industry, PMs have

had several levels to it. Below we share the roles of each “Level”

been taught to “protect the Owner’s interests,” but experience and

and the frequency of the meetings. All of the sessions were

research have shown that this develops adversarial project teams,

professionally facilitated.

which tend to posture and lack trust. Instead, Executives commit to the full Collaborative Partnering Process for SFO’s projects. For

• Executive Level: C-Level project leaders, who steer the Terminal

Executives, this involves attending quarterly Terminal 3 Program

3 Program from a 40,000 foot level. They commit to key milestone

Level Partnering meetings and filling out monthly scorecards.

dates and goals for the project and meet quarterly to discuss all of

Further, they frequently attend monthly sessions and hold their

the projects involved in the program (Boarding Area E, Terminal 3

team accountable to actively participate by speaking up and sharing concerns, rather than hiding problems. This Executive

East Mod 4, and the Concessions). • Core Level: The Project Level “steering team” (PM’s,

Level commitment gives the entire team confidence that they

Superintendents, key exec’s etc.) who are the key decision-

have a voice and can trust that they will be rewarded for telling

makers on a day-to-day basis for the project. In design, this

the truth, rather than punished for sharing bad news.

group meets quarterly and during the heat of construction,

Key to Success #2: Partnering a Program with a Multi-Level Approach To ensure that more than 100 organizations involved in the design, construction, and activation of the facility (each with their own culture), become focused on a single vision and a single

meets monthly to identify and research risks and negotiate resolution to issues in real time. Photos shown below of SFO Terminal 3 East: (left) courtesy of Gensler, www.gensler.com, and Joe Fletcher Photography; (right) courtesy of photographer Joseph Driste.

Recent SFO Partnering Projects: • Terminal 2 • Secure Connector • Building 575 • Boarding Area East • Replacement Air Traffic Control Tower • Baggage-Handling Systems Modernization • Runway Safety Area (RSA)

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March/April 2014 Partnering Magazine

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PARTNERING INNOVATIONS

Take a look at these two photos above: on the left is the jobsite of BAE on December 13, 2012; on the right is the terminal on December 6, 2013. It is truly remarkable how much work got done in just one year (photos courtesy Hensel Phelps Construction Co.).

• Stakeholder Level: The key project influencers and endusers, who often have great insights into how to best design and construct the facility. By being engaged with the partnering process, they can raise issues, share “know-how” and identify common mistakes that have haunted similar projects. They meet quarterly.

Key to Success #3: A FAST Way to Tap into Stakeholder Knowledge and Expertise

second elevator to the project in early 2013, we had to re-design

For SFO to organize and integrate the over 100 organizations

reroute the electrical and other key building systems. This was a

involved in a Terminal project, they use Focused Action Strategic

$1.5 million change and could have added months to the schedule

Teams (FAST) (formerly known as QRTs). Each large project

without such a collaborative process in place.” For SFO’s teams, the

will have roughly 36 “FAST” teams assembled for each critical

FAST process helps produce a high level of integration and results

airport terminal system (i.e. Special Systems, Airlines Operations/

in stakeholders and end-users who are fully vested in the facility

Coordination, Art Program, etc.). Each FAST includes a system

once it is finally built.

Owner (SFO Rep), a User, a Maintainer and Reps from the Design/

the foundations, structural steel, exterior cladding, roofing and

By implementing these 3 Keys to Success: Executive

Build team. The role and the composition of FASTs will change

Commitment, a Multi-Level Approach, and the FAST process, SFO

throughout Planning, Design, Construction, and Activation. In

and the Hensel Phelps, Gensler and KPA Group team delivered

planning and design, the FASTs answer questions and explore

yet another highly complex project on time and under budget!

issues that may arise with design. Later in the project, according

Boarding Area E is a breathtaking facility that has once again

to Hensel Phelps Operations Manager Todd Temple, “FAST teams

raised expectations for how domestic travelers experience the

could be recalled to help with special issue resolution when we

too-frequently stressful hours as we wait for our flight to depart.

needed stakeholder input. When the team agreed to adding a

Great work!

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Partnering Magazine March/April 2014

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RESEARCH ROUNDUP

The Cost of Conflict I “Partnering is the perfect forum for unearthing emerging conflicts.”

n December 2012, Julie Brockman,

to you, but conflict is Really Expensive!

Ph D. of Michigan State University

This study, funded by CPWR—The

published a study entitled “The

Training, is the first of its kind, where

Construction.” In a study of 41 jobsite

they assigned time and monetary value

conflicts, they found that on AVERAGE,

to conflicts that arose on actual jobsites.

161 hours (~20 days) were spent attempting to manage each conflict.

Partnering Magazine March/April 2014

Overall, Brockman interviewed

When they analyzed those work

74 industry personnel from various

hours spent on managing each conflict

trades using a methodology that would

they found that each conflict cost an

elicit descriptions of conflict incidents.

AVERAGE of $10,948.00!

Ultimately, her interviews revealed 86

I am sorry to be the one to break it

14

Center for Construction Research and

Interpersonal Cost of Conflict in

incidents, of which, 41 were analyzed.

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The 41 conflicts analyzed were assigned a “cost” in terms of lost time and lost money based on time spent involved in managing the conflict. To give you a sense of scale, the shortest conflicts in the study lasted about 30 minutes. The longest involved 6,000 hours (750 days of work), and cost $367,000! And this is just the lost time tied directly to the dispute. It does not take into account the reduced productivity, increased absenteeism and employee turnover that often result from these types of conflicts. The chart “Sample Cost of a Field Conflict” (p. 14) shows how the study assigned cost and time to a conflict. In this case, Worker A refused to lay a pipe the way his co-worker (Worker B) wanted him to. After arguing for half an hour, Worker B reported Worker A to his Supervisor. Ultimately, because Worker A refused to change his methodology and kept fighting back, his Supervisor replaced him with Worker C. After Worker A was removed from the jobsite, his Supervisor continued working with him and counseling him for five months to improve how he worked with his peers. This type of conflict and intervention, which happens fairly regularly, would represent more than 100 hours of time lost and more than $5,000 spent in lost productivity.

Interstate 880/State Route 92 Interchange Reconstruction Hayward, CA 2012 IPI Partnered Project of the Year, Diamond Level

Dealing with conflict is an important skill for any manager. But in an adversarial industry like construction, it becomes essential. Our Project Managers and Field Superintendents need to learn how to handle disagreements within their own team (like in the case here) and also need to be able to work across the table when they have disagreement with their counterpart over a potential claim. Partnering is the perfect forum for unearthing emerging

drawn out over the length of the project. Last year, IPI Award-

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

winning projects told us that $1 spent on partnering saved the

the resulting successful projects.

conflicts like the above pipe laying issue. It also is an opportunity for managers to get together and set up systems for effectively negotiating issues before problems inevitably arise in the field. The end result is that conflict hurts your bottom line. Investing in partnering is a great way to help reduce conflict and improve your job culture from the outset, so disagreements can be handled in the same shift, rather than

project $93. It’s a better way to spend your money and time.

Group for Sharing the “Cost of Conflict Study” featured in

To learn more about Flatiron’s innovation in partnering visit

this article.

www.flatironcorp.com

Thanks to IPI Member Neal Flesner of Ventura Consulting

www.partneringinstitute.org

March/April 2014 Partnering Magazine

15


FACILITATOR’S CORNER

Bumping it Up: 5 Tips for Using Your Project’s Dispute Resolution Ladder

The Dispute Resolution Ladder is a system for negotiating the resolution to issues when a team gets stuck.

16

I

mpasse is normal. Every day on the job site we have disagreements and it is common for Owner and the Contractor reps to interpret specifications or site conditions differently. But how does your team

respond to these issues? Research has shown us that it is important to resolve issues early enough to insert technical solutions before a delay will affect the schedule. Great teams do this by effectively using the Dispute Resolution Ladder (DRL). The Dispute Resolution Ladder is a system for negotiating the resolution to issues when a team gets stuck. We set up a Dispute Resolution Ladder because we know that although we all benefit from resolving issues at the lowest level possible, lingering unresolved issues create drag on a project. And, issues get harder to resolve the longer they linger. Therefore, a policy of expedited elevation is in the best interest of the project and all of its stakeholders.

Partnering Magazine March/April 2014

www.partneringinstitute.org


Sample Dispute Resolution Ladder (DRL) Sample Dispute Resultion Ladder (DRL) with Alternative Dispute Resolution (ADR) With Alternative Dispute Resolution (ADR) Level

ADR DRL

Owner (including Designer/Survey/Lab) Contractor (including Subs/Suppliers) Time to Elevate

VII

Facilitated Dispute Resolution (FDR)

VI

Dispute Review Board (DRB)

V

Deputy Director/Senior Executive

Owner: President

2 weeks

IV

Construction Unit Leader

Operations Manager

2 weeks

III

PM Unit Leader/Construction Engineer

Area Manager

1 week

II

Manager/Resident Engineer

Project Manager

1 week

I

Project Engineer/Inspector

Foreman/Superintendent

1 day

The following five tips will help you use your dispute resolution ladder to maximum benefit.

4. Identify Areas of Agreement Most of the time, you and your counterpart have reached agreement on some elements of the overall problems. To be

1. Your Job is to Elevate it

most effective, when you elevate an issue, you need to provide

Projects are a team sport. You have your role. Moreover, you

tell them what you’ve done to try to solve the problem and

have a team surrounding you, with professionals who each

specifically identify areas of agreement.

have their parts to play. That means when you have exhausted

5. Once a Decision is Made—Own it!

information about what is resolved too. That means that you

your ability to resolve an issue, your job is to elevate it!

2. Jointly Define the Problem

The reason we have the Dispute Resolution Ladder is to make

The way a problem is defined influences how it is resolved.

of the decisions and others you will think are wrong. Either way,

The most effective issue elevation occurs when you and your

once a decision is made—own it!

decisions and resolve issues. It is likely that you will love some

counterpart focus on “what is fair” and then, jointly define Cinda Bond Partnering Facilitator, OrgMetrics

the problem.

3. Tell them Where You’re Stuck

Cinda Bond is an IPI Senior Certified

You’ve worked hard to resolve the issue. That makes you and

Partnering Facilitator and has worked in

your counterpart the current experts on the problem. You owe

the construction industry for over 30 years.

it to the next level to share what you know. That means that

She specializes in facilitating large, complex

you and your counterpart delineate each and every item in

projects. You can contact Cinda at CindaBond@orgmet.com or

contention. Together, you need to tell them where you are stuck.

directly at (925) 640-9007.

ADVERTISE IN

May/June 2014 Feature: IPI Award Winners

Issue 1 March/April 2014

partnering innovations SFO Shines On Terminal 3 East

Visit www.partneringinstitute.org

www.partneringinstitute.org

Deadline: April 10, 2014

Deadline: August 8, 2014

July/August 2014 Feature: Partnering Pioneers Deadline: June 9, 2014

INSIDE: page 8

page 14

On-Time, On-Budget

Bumping it Up with a DRL

September/October 2014 Feature: Partnering Around the World

November/December 2014 Feature: Year in Review Deadline: October 10, 2014

March/April 2014 Partnering Magazine

17


CEO’S MESSAGE

Your Intentions Count “...when the intention of the leadership and teams is for true culture change, everyone is focused on transforming how they work together.”

Sue Dyer, MBA, MIPI, MDRF

new statute, specification,

how they work together.

Founder and CEO,

or memorandum. Since

There is commitment that

International Partnering Institute

the intention is to comply,

there is to be a high level of

then that is what everyone

collaboration in everything

focuses on.

they do. It is this intention

I

PI is often asked, how do I make the Collaborative

that leads to creative problem

Partnering Program

On the other hand (see

solving, to continuous

produce the results I want?

the right column), when the

improvement and to trusted

That I see others achieving?

intention of the leadership

leadership. This guides

We often find that the people

and teams is for true

everyone along the path to

involved in programs that

culture change, everyone

creating a strong and lasting

are under-performing have a

is focused on transforming

culture of collaboration.

different “intention” than in those programs where they are achieving extraordinary results. Of course Collaborative Partnering has a learning curve and it will take time, so please be patient. But intention matters! The graphic at the right shows what we often see. In the left column you see the path where there is little to no real change—people are going through the motions. The intention of the leadership and teams is to comply with an “order.” This could come in the form of a

18

Partnering Magazine March/April 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


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