CoreNet Global Summit
#11 A Corporate Real Estate “mindshift”:
The New Trust-Based Turnkey Approach
to Building and Development
Moderator:
Rick Page, GVA Williams
Speakers:
Dean Strombom, Gensler
Mark Iammarino, Turner Construction
Rex Miller, mindshift

A new way of thinking about an old problem.

Acknowledgements/Credits
is comprised of AIA, GSA, Gensler, KPMG,
Metropolis Magazine, Turner Construction, Haworth, WP Moore,
Acoustic Dimensions, Kyle Davy Consulting, Lucchesi Galati
Architects, Transwestern, Cushman & Wakefield, Solidus, and
Aardex. Our purpose is to shift the building culture toward
greater collaboration and integration.

Learning Objectives
Explore and Explain:
• Broken Buildings and Busted
Budgets* - the industry today.
• What is the mindshift?
• 4 Principles.
• 5 Keys to Alignment.
*Barry LePatner

Agile Race in an Institutional Buggy!

Silos
Adapted from:
McDonough Holland & Allen PC
Attorneys At Law

“Buildings Leak at the
Intersection of Contracts”
Adapted from: Todd Zabelle, Strategic Project Solutions

Hierarchal Delivery Model

Fielding a New Team Every Project

80% of the Cost is Brought in Late
Adapted from:
McDonough Holland & Allen PC
Attorneys At Law

If Corollas were Design-Bid-Build?
Design-Bid-Build… Integrated…
It would cost: $44,000 It would cost: $16,000
and it would be
• Late
• Over budget
• Value-engineered
• Missing parts
• and have
No warranty

Waste in the System
Manufacturing Construction
57%
12%

The Brutal Facts
• $700 billion annual WASTE
(BuildingsSmartAlliance)
• 48% of GHG
(Energy Info Admin Statistics and Pew Climate report)
• 70% over budget and late
• 10-12% Annual Cost Escalation
(RS Means)

Owners Demand Fundamental Change
Construction Users Roundtable (CURT):
“Address the perception of inadequate, poorly
coordinated AE drawings and the resulting difficulties in
the field. These problems are symptoms of larger
industry issues.”

Principle 1: Trust-Based Teams
• Values
• Capabilities
• Play Book
• Tools
• Pre-Game
• Measure
• Improve

Principle 2: Getting it Right at the Start
“All the big mistakes are made in the first day.”
— Paul Adams, AIA
1. The Team Aligns with the Business Plan
2. The Business Plan Drives Design
3. Design is an Early Collaborative Process
4. 80% of the Cost Lies with the Sub-trades

Principle 3: Built-In Sustainability
Sustainable projects at no
premium using integration.
• By Removing Some of the 57%
Waste.
• Through Good Design vs. a
Check List
• The 2030 Challenge demands
a new approach.
• Smart developers can gain a
competitive advantage.

Principle 4: True Improvement
A common team,
process plus relevant
performance metrics
allows continuous
improvement.

Alignment 1: Big BIM
• Collaborative Design
• Modeling is Different than
Drawing
• Subs Model Shop Drawings
• Collision Detection
• Target Costing
• Full Project Simulation
• Off-site Fabrication
• Life Cycle testing
• Built-in Sustainable

Alignment 2: Toyota Style
• Reduces cost by 30%
• Client Defines Value
• Involve Those Doing the Work
• Identify Activities that Deliver Value
• Identify and Measures Waste
• Create a Process to Remove Waste
• Continual Incremental Improvement
• AIA IPD Guidelines
• Lean Construction
• Responsibility-based Project
Delivery

Alignment 3: Shared Risk/Reward
• Project vs. Scope
• Joint Incentive and Risk
• AIA’s Integrated Project
Delivery Guidelines
• Egan Report
• Project Alliance Guide
• Sutter Health Multi-Party
Agreement
• Profitable Partnering

Alignment 4: Off-Site Fabrication
• Structure
• Interior Walls
• Access Floors
• Mechanical
• Electrical
• Plumbing
• Concrete
• Millwork
• Bathrooms

Alignment 5: Performance Impact

Camino Royale Results:
 Multi-Party Agreement $94M budget
$9M Saved
 Early Business Model 6 Months Reduced
6 MEP RFIs
 Little BIM 37% of Contingency
 IPD/Lean
• Off-Site Assembly
• Workplace Improvement
• Sustainability

Aardex Signature Center Results:
$20.5 million/$3 per sqft
 Vertical less than conventional
Integration 191,000 square feet
 Early Business LEED Platinum
Model User Effective
• Little BIM 50% Lower Operations
100% Leased
• IPD/Lean
 Assembly
 Business
Enhancement
 Sustainability

A Prescription for Success

The Mindshift Cure
MindshiftWiki Resource Site
Mindshift Project Assessment
Mindshift Project Delivery
Mindshift Consulting and Coaching

The Mindshift Cure
Stay Tuned for the Book
The Commercial Real Estate
Revolution
Release August 2009 through John
P. Wiley Publishing

Call to Action (1)
• Select teams early based on
qualifications
• Prepare to shift $ forward to
develop business case,
validation and design
• 80% of the errors are made in
the early stage of design
• Set up tightly coordinated
design through collaboration
and/or BIM
• The business case drives design

Call to Action (2)
• Be aware of the extend of waste,
develop a plan to identify and
eliminate
• Rehearses common avoidable
conflicts and errors
• Pool risk and reward to
incentivize project results instead
of scope results
• Measure performance based on
commitments to costs, quality
and schedule weekly
• Actively improve upon the metrics
developed

Contact Information
Rex Miller, Thought Leader
rex@rexmiller.net
Dean Strombom, Principal
dean_strombom@gensler.com
Mark Iammarino, VP/GM
miammarino@tcco.com
Website: www.mindshiftblog.com
Resource Site: www.mindshiftwiki.com