Northwest Region CSI

S508

Alternative Project Delivery / IPD / Lean Seminar 5B

Mike Day, Alene Davis, Jim Bedrick, Dustin Liljehorn May 10, 2014

Credit(s) earned on completion of this course will be reported to AIA CES for AIA members. Certificates of Completion for both AIA members and non-AIA members are available upon request.

This course is registered with AIA CES

for continuing professional education. As such, it does not include content that may be deemed or construed to be an approval or endorsement by the AIA of any material of construction or any method or manner of handling, using, distributing, or dealing in any material or product. _______________________________________

____

Questions related to specific materials, methods, and services will be addressed at the conclusion of this presentation.

Project Delivery / Pitfalls in Construction How Collaboration, IPD (Integrated Project Delivery) and Lean construction methods are used in both public and private projects is presented by Mike Day, and a panel consisting of an Architect, a Contractor and IPD facilitator. This panel presentation will reveal how IPD/Lean construction works, doesn't work, including lessons learned from projects such as the Collaborative Life Sciences building near the Ross Island Bridge on the South Waterfront.

Alternative Project Delivery IPD / Lean

Learning Objectives

1. Understanding of guiding principles of Collaborative project delivery and “IPD”

2. How it works in Public Sector ( ORS exemption) 3. Lean Construction and its place in design /

construction 4. Last Planner; Pull Planning - Scheduling tools 5. BIM and integration of Design and Construction 6. Lessons learned “what works / pitfalls to watch

out for”

At the end of the this course, participants will be able to:

ALTERNATIVE PROJECT DELIVERY May 10th, 2014

Collaboration & Integrated Project Delivery: (IPD) A Catalyst for Collaborative Design and Construction Value, Theory, and Practice

Agenda:

• Comparison to Traditional Delivery

• Integrated Project Delivery (IPD): an environment for Collaboration

• IPD Best Practices, Keys to Success

• Virtual Design & Construction: VDC

• Lean: what is it and where does it fit with IPD

• Last Planner

• BIM and Information Technology “best practices”

• Q&A

Typical Traditional Organization

FMS Operations

Geotech

Historic Survey

Peer review Estimating

Testing Hazmat

Relocation Move

Legal Counsel

Financial Actg.

Owner Rep

Barriers Barriers

Traditional Project Delivery Level of Common Understanding

Traditional Project Delivery Process

Bid & Construct

Technology Design Program Es

tim

ate

VE

Esti

mat

e

VE Es

tim

ate

VE

Put it In & Take it Out | Wasteful / Value Reduction

VE= VULTURE ENGINEERING

Conventional Process: Traditional CM/GC, & Design / Bid / Build

Integrated Project Delivery (IPD): An evolving definition-Best Practices

“Integrated Project Delivery (IPD) is a project delivery method that integrates people, systems, business structures and practices into a process that collaboratively harnesses the talents and insights of all participants to reduce waste and optimize efficiency through all phases of design, fabrication and construction. The Integrated Project Delivery method contains, at a minimum, all of the following elements:

• Continuous involvement of key designers, builders, and owner from early design through project completion

• Business interests aligned through shared risk/reward, including financial gain at risk that is dependent upon project outcomes

• Joint project control by the key participants

• Single multi-party agreement or equal interlocking joining agreements

• Limited liability among key participants

A Working Definition: Integrated Project Delivery Integrated Project Delivery Task Force; California AIA

Integrated Project Delivery

• Multi-Party Agreement

• Shared Risk and Reward

• Highly Collaborative

• Liability Limits

Integrated Project Delivery

Traditional Delivery Models

• Separate Contracts

• Zero-Sum Game

• High Likelihood of Litigation

• Working in Silos

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Architect Contractor

C C

C

C

S S

S S

S

O-A

Contract

O-C

Contract Multi-Party

Agreement

Everyone wants to maximize their profit and minimize their cost

Owner

What is Integrated Project Delivery?

• Key participants bound together as equals: Relatedness

• Shared Risk & Reward

• Collaborative Decision Making

• Fiscal Transparency

• Eliminate Overlap in Services

• Early Involvement Key Participants

• Dynamic Cost Modeling

• Target Value Design

• Integrated Virtual Design / Construct

• Incubator of Lean concepts

• Gone with the paradigms!

Best Value Result

Cost

Risk Quality

Integrated Project Delivery (IPD) Level of Common Understanding

Forces Driving The Need for IPD

• Waste / Lack of productivity

• Technological evolution: BIM, VDC “virtual design /construct”

• Owner demand for more value

• Budget / Design alignment: TVD “target value design”

• Risk Reduction / shared risk

• Sustainability / Operations and Maintenance

• Lean design and construction productivity

• Schedule compression: “fast-tracking of projects”

• Transition to Operations and Maintenance “hand off”

IPD Team Concepts (contrast to Traditional)

Key Participants as Equals

17

Owner

Designer Builder

Executives

Senior Managers

Managers

Collaboration

Level 3 Contractual IPD

Collaboration Level 2

“Enhanced” CM /GC or Design-Build

Collaboration Level 1

“Traditional” CM / GC or Design-Build

Three Levels of Integrated Project Delivery

IPD Behavioral Principles

• Mutual respect

• Willingness to collaborate

• Open communication

• Experimentation

• Trust & transparency

• Reliable promising

• Experts are the experts

• A new vocabulary

IPD Contractual Principles

• Key participants bound together as equals

• Shared financial risk and reward based on project outcome

• Fiscal transparency between key participants

• Early involvement of key participants

• Intensified design

• Jointly developed project target criteria

• Collaborative decision making

• Joining agreements to Traditional Contract agreements

• Liability Waivers between Key Participants

IPD Contingency / Shared Risk, Reward

• Align everyone’s business interests

• Focus on what is best for the “project”

• One “pot” of IPD contingency, shared by team members

• Automatic and Discretionary contingency

• Incentives to achieve value propositions: Risk / Reward

• There is no “me”, “you”, or “they”; only “us”.

Setting Up the IPD Team: Expectation of Participants

Knowledgeable

Diverse

Open Minded

True Partners

Transparent

Integrated Thinking

Passionate Intensity

Collaborative Attitude

High Expertise & Knowledge

Ability to Challenge Convention

Cost Literacy

Delivery Sensitive

World Class Design

Ability to Set Aside Ego

Dynamic Cost Modeling

Cutting Edge Technology

Sub Relationships

Design Sensitive

Owner

Designers Builders

Tools and Processes Used in Achieving IPD Value Propositions

• Establishing baseline performance metrics • Co-location and the Big Room concept • Virtual Design and Construction (VDC) • Target Value Design • Value Stream Mapping • Cluster Teams • Early Trade Involvement Packages (ETIP’s) • Joining / Collaboration Agreements • Reverse phase scheduling (pull) “stage gates” • Use of 3rd party consulting • IPD contingencies for design & construction • Lean concepts and practices • Multi – party agreements

Establishing a Baseline Performance Metrics (Targets) Top 10

• T1: Target Savings of 5% Across All Project Budgets

• T2: Reduce “Time of Construction” Schedule

• T3: Minimizing Waste in PM Control Systems

• T4: Waste Minimization and Value Enhancement

• T5: Target Value Design: “TVD” - Reliability / Predictability

• T6: Implementation of IPD / Lean Strategies: BIM, VDC, etc.

• T7: Successful administration of Owner’s core directives

• T8: Integration of Design and Construction; QA/QC

• T9: Minimize - RFI’s, C/O’s, payment issues, claims & conflicts

• T10: Sustainability: LEED metrics: energy savings

Jointly Developed Project Target Criteria

Other Examples of project metrics: • Cost within budget “TVD” Target Value Design • Schedule-on time completion • Quality / Performance • Design to a budget • Documentation • Sustainability • Risk/claims • Profitability • Jointly Developed Project Target Criteria

Co-Location & The Big Room Concept

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• Utilizing a “Neutral” Location

• Enabling Collaboration and Integration

• Blurring the Traditional Boundaries

• Keeping the Project Team Close to the “Work”

• Reliable Promising

• Dynamic Cost Modeling / Target Value Design - Process

• “Accidental” Innovation

What is Virtual Design and Construction “VDC”

• VDC is not just software!

• Defined tools and processes that allow problem solving in the virtual realm

• Requires early involvement

• Requires and Builds strong working relationships

• Is a true shared resource

• Starts at project conception and lives through the life of the facility

Virtual Design and Construction (VDC)

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• All Design Disciplines Utilized 3D Modeling

• IPD Allowed “Right of Reliance” on the 3D Models

• BIM Protocol Manual

• CM/GC Leverages and Uses Model Prior to Design Completion

• BIM Models Recognized as “Key” to Enabling True Integration with fabrication

• Target Value Design - Real time cost modeling

Cost Control – “Traditional Model”

“Value Engineering”

– Limited number of discrete estimates of entire project

– At each estimate, discover that you’re over budget

– Rip out scope and/or quality to bring the cost down

SD DD CD

$

“It’s like driving down the freeway with your eyes closed and opening them every half hour to see where you are.”

Eric McKinney, Gensler

Cost Control “real time”

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SD DD CD

$

“It’s like driving down the freeway with your eyes closed and opening them every half hour to see where you are.”

Eric McKinney, Gensler

Target Value Design

– Estimate is continuously updated (usually one system at a time)

– Observe trends as well as actual costs

– Develop options for course corrections before you hit the rocks

DESIGN PHASE - IPD CLUSTER TEAMS

• Site Excavation / Utilities:

1

Other FF&E Equipment

MEP / IT

Interior Construction

Enclosure

Structure

Site

• Concrete / Base Isolation:

• Marble / Skin: • Curtain Wall: • Metal Panels:

• Skylights:

• Interior Finishes, Development of OSC standards: • Program and operational changes: • Interior Historic Fabric / Preservation

• FF&E Casework and Equipment

• Mechanical • Plumbing: • Electrical:

What is Lean

• A Management Philosophy:

• Create a culture of continuous improvement

• Delivering VALUE Effectively for “Customers” / Big Ideas:

• Respect for People

• Collaborative Approach “Really Collaborate”

• Optimizes the “Whole” not the individual pieces

• A Never Ending Journey based on Continuous Improvement

Lean is…

5 S’s: A workplace organization method built around Japanese terms

1. Sort

2. Straighten

3. Sweep

4. Standardize

5. Sustain

Sorted studs image here

Lean - Continuous Improvement – Lean Design

6 Key Elements to Lean Design

1. Owned by Leadership – Set Goals, Roles, Expectations Use of a Charter to Formalize ‘Rules of Engagement’ Integration of Design Team

2. Evaluate ‘Current State’ Assessment Quantitative and Qualitative

3. The Work = Define Future State and Test in Living Laboratory - Cross Functional Teams - Mock-up and Simulation - Evaluation - Quantitative and Qualitative

4. De-Silo Departments/Cross Functional Teams to Solve process / program Flows

5. The Participants: Cross Functional Teams

6. Build Consensus – Make Decisions – Document as You Go

Spirit of Continuous Improvement

Lean - Continuous Improvement – Construction

Lean - Pull Planning – Last Planner System

5 key elements of Last Planner System include:

1. Master scheduling

2. PULL PLANNING

3. Make work ready planning

4. Weekly work planning

5. Learning

PULL PLANNING:

• Work is planned and coordinated by those that have the best knowledge of what it takes to do the work, the LAST planners.

Master Planning

Pull Planning Make-Ready

Planning Learning

•Milestones •Master Schedule •Establishes promise of project

•Phase Schedule •Collaboratively built plan •Focus on handoffs

•Look ahead Plan •Make work ready •Identify constraints •Commitments to remove constraints •Constraint Log

• Weekly work plan • Reliable promising

• Daily coordination • Percent Plan Complete (PPC) • Rapid learning

Should Can Will Did

Weekly As Needed

Weekly Work Planning

Daily

Lean - Pull Planning – Process

Lean - Pull Planning

• Last Planner is a SYSTEM focused on the end product

• Work is planned and coordinated by those that have the best knowledge of what it takes to do the work, the LAST PLANNERs

• Milestone based

• Heavy reliance on commitments

• Accountability: team ownership/buy in

Lean - Pull Planning – Task Cards

• Identify work activities needed to complete objective

• Determine duration needed to accomplish task

• Identify constraints

TASK DESCRIPTION

DURATION

CONSTRAINTS

Set DG243-3-30

5d

Concrete pad complete / Equip available

BIM - INFORMATION TECHNOLOGY DURING DESIGN

Model Development Spec

45

BIM - Model Development Specifications : “MDS”

46

Building Systems

Milestones/Deliverables

Level of Development

Model Element Author

LOD Definitions

Steel Braced Frame

$20-26 /sf

→ LOD 100

Conceptual

→LOD 200

Generic

Placeholders

→LOD 300

Specific

Assemblies

→LOD 400

Details

www.bimforum.org/lod

AIA / AGC BIMForum LOD Effort

48

LOD Spec in Use

• Mapping Firm Standards

• Scoping Modeling Effort

• Developing a Baseline Design Schedule

• Defining Use-Case Milestones

• Setting Milestone Dates Based on Standard Workflow

• Determining Workflow Based on Milestone Dates

• Defining a Design/Build Bridging Package

• Defining a Design Architect – Executive Architect Transfer Package

• Passing a Model from Design to Construction

• Defining an As-Built Model

• Defining Facilities Management Models

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BIM - INFORMATION TECHNOLOGY FOR FAST-TRACKED PROJECTS

Fast-Tracked Project Case Study: OUS/ OHSU Collaborative Life Sciences and Skourtes Tower

BIM allowed for collaboration across packages during simultaneous development of progress sets, bid packages and permit packages

BIM - INFORMATION TECHNOLOGY FOR FAST-TRACKED PROJECTS

Cost avoidance by casting the ~55,000 MEP systems hangers into concrete slabs

Structural permit and construction scheduled for prior to interior design package completion, created a sequencing problem

Design “lock-down” dates floor-by-floor from the ground up in BIM model to allow subs to finalize and clash MEP & install hangers prior to slab pours.

BIM DURING CONSTRUCTION

How the clashing happened

Schedule was developed for “Lockdown” of Floors / Areas

JE Dunn and Sub-Contractors met 3x a week to stay ahead of concrete pours

Design team was at every construction coordination meeting to help make decisions on the fly

Successes

Qualified Subs with the right project staff

Success = No Grouchy Superintendent in my Doorway

BIM - DURING CONSTRUCTION

Field Coordination

Integration of scheduling and sequencing expertise

100% buy in by all parties having faith in the coordinated construction model

Eliminate the “What happened there?”

BIM - ELECTRONIC DOCUMENTS DURING CONSTRUCTION

Document Control in the Field

Using Digital Plan Stations in the Superintendent Trailers

Using mobile “Kiosk” plan centers in the Field.

JE Dunn and Subs are able to update digital plans hourly using RoboCopy script.

Guarantees current plans and specs in the field.

BIM - ELECTRONIC DOCUMENTS IN POST CONSTRUCTION

As-Built Documentation

O&M Documentation

What Have We Learned?

• Incentivize the IPD Delivery Team early

• Co-Locate, really Co-Locate

• Collaboratively establish milestones and “stage gates”

• Customize for your project based on Owner’s Core directives

• Incentivize Collaborative Behavior as well as Outcomes

• BIM / VDC technology use from project inception through close out

• Budget / Design alignment through - Dynamic Cost Modeling / Target Value Design – Process

• Use Lean tools and strategies where you get the best “bang for the buck”

Q & A

Email: Mike Day: mday@daycpm.com Jim Bedrick: jbedrick@aecpe.com Alene Davis: alened@serapdx.com Dustin Liljehorn: dustin.liljehorn@jedunn.com