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
10
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.
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March/April 2014 Partnering Magazine
3
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
T 10
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
11
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!
12
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
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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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Partnering Magazine March/April 2014
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