Delivering Real-Time Business Value for Engineering, Construction, and Operations
Delivering School Construction Successfully
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Transcript of Delivering School Construction Successfully
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Delivering School Construction Successfully
Regardless of the Delivery Method
Presented by:
Doug Sitton, PE, LEED AP
Sitton Construction Group
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What if you could spend less time, reduce the overall cost, and
eliminate most of the problems on your next construction project without reducing quantity or
quality?
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Agenda
• Case Studies• Project Complexity• Bridging the Gaps• Keys to Success• Project Delivery• Additional Tips
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Projects That Fell Short
What did the following projects all have in common that caused them to fall
short of expectations?
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Project #1
• New High School• Design/bid/build with CM as Advisor• $45 million new construction• 20-month original schedule• 12 months late• 14% delay claims/change orders
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Project #2
• University Student Rec Center• CM at Risk• $13 million new construction• 15-month original schedule• 12 months late
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Project #3
• University Student Center• Design/bid/build – multiple prime• $14 million addition/renovation• 18-month original schedule• 12 months late
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Project #4
• New College Classroom Building• Design/bid/build – multiple prime• $11 million new construction/addition• 21-month original schedule• 15 months late• 11% delay claims/change orders
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What Was The Common Cause?
What did each of these projects have in common?
A. Under-qualified contractor(s) or CM
B. Under-qualified architect/engineer
C. Wrong delivery method
D. Unusually complex
E. Other
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The Common Cause
What did each of these projects have in common?
The gaps that existed were not filled
Gaps are caused by complexity
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Successful Case Study #1
• $60 million program • 2 new elementary schools• Various additions/renovations• Design/bid/build – single primes• Delivered in 16 months and under
budget
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Successful Case Study #2
• $6 million program • Renovations to elementary and high
schools• D/B/B – single primes and PC• Saved $550,000 while adding in
quantity and quality
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Project Complexity
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Project Organizational Chart
Thousands of exchanges of info in different languages
• Owner• Funding sources• Design firms• Consultants • Contractors• Subcontractors• Utilities• Regulatory agencies• Manufacturers/vendors• Stakeholders
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Design/Construction Complexity
Organizations
X
People
X
Processes
X
Technical
X
External Forces
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Technical Complexity
• Systems:– Structural
– MEP/FP
– Security
– Data/telecommunications
– Furnishings and equipment
• Codes, soils, environmental, etc.• Project delivery• LEED• BIM
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The Cost of Complexity
U. of I. Sues over Dorm's Big Cost Overrun
Cost Overruns at Prairie State Energy
SCHOOL BOARD TO MEET ON SCHOOL COST OVERRUNS
MetroLink Files Damage Suit Against Four Companies
Big Dig Cost Explodes To $22 Billion from Original $2.6 Billion
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Complexity = Change Orders
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Complexity = Change Orders
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Gaps
Why Complexity Often Wins
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Where Are The Gaps?
Between all project participants• Owner• Funding sources• Design firms• Consultants • Contractors• Subcontractors• Utilities• Regulatory agencies• Manufacturers/vendors• Stakeholders
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What are the Gaps?
• Knowledge and experience• Priorities, goals and objectives• Roles, responsibilities and risk• Information and communication• Cultures and
personalities• Performance
and results
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Bridging the Gaps
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The Owner’s (District’s) Role
Build the bridges
Start with the 3 legs
The Owner is responsible for the
team of teams.
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The Owner’s Role
• Financing/budget/costs• Project delivery method• Requirements/program/operations/objectives• Property/surveys/utilities/environmental/soils• Existing conditions/testing• Schedule• Permits• Furniture/Fixtures/Equipment• Voice/Data/Security• Move management• Reviews/decisions
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The Owner’s Role
• Procurement and performance– Architect/engineer– Consultants– Contractors– Construction manager– Performance contractor
• Dispute resolution
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The Owner’s Required Expertise
Bridge building:• Improve all contracts• Manage and improve
everyone’s performance• Facilitate collaboration and teamwork• Streamline and improve the delivery of
planning, design and construction
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Who Wins When The Owner Has Sufficient Resources?
Everyone!
Two Options: Win-Win or Lose-Lose
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Minimize the Owner’s Role?
• Avoid paying for expertise?
Any expertise should more than pay for itself
• Hand it off to the Architect, CM or PC?
Time, focus, qualifications, conflicts
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Keys to Success
10 Pieces to the Successful Project Puzzle
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10 Pieces to the Project Puzzle
1. Identify Owner’s Expertise
2. Establish Goals and Objectives
3. Maximize Competition for Selection
4. Negotiate Effective Contracts
5. Place Right People in Right Roles
6. Plan Ahead
7. Establish Effective Processes
8. Set Performance Metrics
9. Apply Cost-Effective Technology
10. Lead and Manage Proactively
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Solve It at the Beginning
.
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Project Delivery
Methods and Myths
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Project Delivery Methods
• Design/Bid/Build – Single Prime• Design/Bid/Build – Multiple Prime or
CM• Construction Manager at Risk• Performance Contracting
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Design/Bid/Build – Single Prime
• Owner contracts with a design team• Design team provides design and
produces bid/construction documents• Project is bid to single general
contractor• Low responsive, responsible bidder
selected
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Design/Bid/Build – Multiple Prime
Same as Single Prime except:• Project is bid in multiple packages• Low responsive, responsible bidders
selected• Multiple primes “assigned” to general
contractor as coordinating contractor
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General Contractor as CMa
Same as Multiple Prime except: • Owner contracts with a CM• CM participates in design phase• Owner is at risk and holds all contracts
– no “assignments”• Typically many more contracts
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General Contractor as CM at Risk
Same as GC as CMa except:• GC holds the contracts and is at risk
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Performance Contracting
• Same as Design-Build except: • For energy savings improvements• ESCO provides:
– Financing
– Guaranteed energy savings
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Which Method . . .
Can be completed in the least amount of time?
Requires the least amount of District time to oversee?
Takes the least amount of District expertise to manage?
Has the fewest change orders?
Involves the least risk for the District?
Provides the highest overall value for the District?
Design/Bid/Build – single prime Design/Bid/Build – multiple prime or CMa Construction Manager at Risk Performance Contracting It depends
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Which Method . . .
Can be completed in the least amount of time?
Requires the least amount of District time to oversee?
Takes the least amount of District expertise to manage?
Has the fewest change orders?
Involves the least risk for the District?
Provides the highest overall value for the District?
Design/Bid/Build – single prime Design/Bid/Build – multiple prime or CMa Construction Manager at Risk Performance Contracting It depends
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It Depends
• Every method:– Has positives and negatives, has
succeeded and failed– Is complex, just in a different way– Can be fast-tracked– Should never be used “as is”– Should be tailored to the specific client,
project, and local/current market
• Customization and management matter most, not the method
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Selecting Project Delivery
Consider:• Most common, best understood• Experience and knowledge of:
architect, engineers, contractors
Don’t consider:• Time – overall or District’s• Change orders• Risk
These are customization considerations
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Additional Tips for Success
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Minimizing Owner’s Time Invested
• Have the right level of expertise• Invest the time early• Avoid gaps
More time here
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Pick Any Two
• The Project
Management
Triangle
• Why not have all three?• Low quality often adds cost and time• Quality design can reduce overall cost • “Too” slow and “too” fast both cost more• Effective Owner management improves all
three
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Improving All Three – Q/B/S
“Avoidable failures are common and persistent . . . the volume and complexity of what we know has exceeded our individual ability to deliver its benefits correctly, safely, or reliably.”
“We need a new strategy . . . and there is such a strategy. It is a checklist.”
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Getting Things Right
• Ninety-second checklist• Complex world of surgery• Eight hospitals around the
world• All kinds of operations• Reduced deaths and
complications by one-third• No cost
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Example Checklists
• Facility appraisals • Facility assessments• Plan/spec reviews• Inter-disciplinary reviews• Scorecards
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eTools Examples• Building Information Modeling (BIM)• eProject Management• eDeliverables
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Summarizing Success
• Understand the complexity• Identify expertise necessary for the
District’s “Owner” role• Identify/predict the gaps• Bridge the gaps• Use checklists!
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Equal Understanding is Key
“Armed with the most the most powerful weapon in anyone’s business arsenal
– understanding – you will have a fighting chance to get the building you want, when you want it, for the price
you originally agreed upon.”
Broken Buildings, Busted Budgets
by Barry LePatner