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What you should know about Integrated Project Delivery

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  • -Francis Baconessayist, philosopher, and statesman (1561-1626)
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  • On IP

    1. 1. Integrated Project Delivery™<br />What You Should Know<br />Sam Spata, AIA<br />Architect, LEED® AP samspata@serafinobuilders.com<br />
    2. 2. “To suffering there is a limit; to fearing, none.”<br />
    3. 3. Theory<br />Practice<br />Tools<br />Expectations<br />Agenda<br />
    4. 4. Theory<br />A Tale of Two Curves<br />From BIM to PIM<br />
    5. 5.
    6. 6. Owner<br />Contractor<br />Architect<br />
    7. 7. Recession<br />Recession<br />Recession<br />Recession<br />Recession<br />Higher<br />Owner<br />Expectations<br />Satisfaction<br />A/E/C<br />Response<br />Lower<br />Time<br />1960<br />1970<br />1980<br />1990<br />2000<br />2010<br />
    8. 8. In recession, Owners expect more value for money<br />In recession, A/E/C’s bid low, investment lags<br />
    9. 9. Recession<br />Recession<br />Recession<br />Recession<br />Recession<br />Higher<br />?<br />Program<br />Management<br />G-Max<br />Fast-Track<br />Satisfaction<br />Construction Management<br />Lower<br />Time<br />1960<br />1970<br />1980<br />1990<br />2000<br />2010<br />
    10. 10. Recession<br />Recession<br />Recession<br />Recession<br />Recession<br />Higher<br />Business as Usual<br />Satisfaction<br />Lower<br />Time<br />1960<br />1970<br />1980<br />1990<br />2000<br />2010<br />
    11. 11. BIM<br />
    12. 12. Building Information Modeling (BIM)<br />data & communication technology tool for object-oriented development using purpose-driven exchange to design & construct a project<br />
    13. 13. Integrated Project Delivery (IPD)<br />collaborative method guided by transparency and shared risk & reward to achieve the Owner’s desired outcome<br />
    14. 14. Project Information Management (PIM)<br />organized purpose-driven exchange approach toenable project team collaboration using BIM<br />
    15. 15. Architect<br />Architect<br />Structural<br />Engineer<br />Civil<br />Engineer<br />Structural<br />Engineer<br />Civil<br />Engineer<br />Building<br />Information<br />Model<br />(BIM)<br />Building<br />Owner<br />Building<br />Owner<br />HVAC<br />Engineer<br />HVAC<br />Engineer<br />City<br />City<br />Facilities<br />Manager<br />Facilities<br />Manager<br />Constr.<br />Manager<br />Constr.<br />Manager<br />Early BIM<br />
    16. 16. Author<br />3DS<br />Max<br />Rhino<br />Maya<br />ADT<br />Research<br />Gravity<br />Affinity<br />Ecotect<br />Sketch Up<br />Tekla<br />Create<br />BIM<br />Navisworks<br />Hold<br />Wind<br />CadDuct<br />5D<br />4D<br />Construction <br />Information <br />Model<br />TriRiga<br />(IWMS)<br />Mature BIM<br />Purpose – built models<br />Purpose – driven exchange<br />
    17. 17. Project Information Management<br />
    18. 18. Workflow<br />Diagram – courtesy of HOK<br />
    19. 19. Image – courtesy of HOK<br />
    20. 20. Practice<br />Challenges<br />Integrated Project Delivery<br />
    21. 21. Knowledge<br />“…a means <br />to a means <br />to an end”<br />Binder<br />Blueprint<br />Building<br />
    22. 22. Owners do projects because they must <br />not because they want to <br />Owners want to create wealth<br />Outcome<br />
    23. 23. Cost<br />value for money<br />Velocity <br />increased speed to market<br />Quality <br />decreased tolerance for error<br />Complexity <br />increased systems integration<br />Risk <br />decreased tolerance for uncertainty<br />FEAR<br />Challenges Owners Face<br />RISK<br />
    24. 24. Owner<br />Scope<br />Contractor<br />$Does Not Easily Flow$<br />Architect<br />Labor & Materials<br />DPE<br />DPE<br />Profit<br />Fee<br />?<br />General Conditions<br />Overhead<br />
    25. 25. O<br />O<br />C<br />A<br />A<br />C<br />T<br />A<br />Design<br />Build<br />A<br />Design Bid Build<br />Design<br />Assist +<br />O<br />O<br />O<br />O<br />A<br />C<br />C<br />A<br />BIM<br />GMP<br />A<br />C<br />T<br />Novation<br />A<br />IPD<br />Project Delivery Methods<br />C<br />BIM<br />T<br />
    26. 26. O<br />O<br />C<br />A<br />A<br />C<br />T<br />A<br />Design<br />Build<br />A<br />Design Bid Build<br />O<br />Design<br />Assist +<br />O<br />O<br />O<br />O<br />A<br />C<br />P3<br />PFI<br />A<br />C<br />C<br />Client Interaction<br />C<br />A<br />BIM<br />Design<br />Assist<br />T<br />GMP<br />A<br />C<br />BIM<br />T<br />Novation<br />IPD<br />A<br />T<br />Design / Construct Integration<br />
    27. 27. O<br />High Design / Construct Integration<br />O<br />C<br />A<br />A<br />C<br />T<br />A<br />Design<br />Build<br />A<br />Design Bid Build<br />O<br />Design<br />Assist +<br />O<br /> High Client Interaction<br />O<br />O<br />O<br />A<br />C<br />P3<br />PFI<br />A<br />C<br />C<br />Client Interaction<br />C<br />A<br />BIM<br />Design<br />Assist<br />T<br />GMP<br />A<br />C<br />BIM<br />T<br />Novation<br />IPD<br />A<br />Design / Construct Integration<br />T<br />
    28. 28. Tools<br />Form of Agreement<br />Model Progression Specification<br />Essential Features of IPD<br />
    29. 29. Agreement<br />PIM<br />BIM<br />Integrated Project Delivery™<br />
    30. 30. ROLE INTEGRITY <br />Relational<br />Outcome<br />RECIPROCITY <br />FLEXIBILITY <br />CREATION OF RESTRAINT ON POWER <br />IMPLEMENTATION OF PLANNING <br />CONTRACTUAL SOLIDARITY <br />Discrete<br />Service<br />PROPRIETY OF MEANS <br />HARMONIZATION WITH SOCIAL MATRIX <br />EFFECTUATION OF CONSENT <br />RESTITUTION, RELIANCE, EXPECTATIONS<br />- David Campbell,“Ian Macneil and the Relational Theory of Contract”<br />Relational Contract Theory<br />
    31. 31.
    32. 32. AIA 195 / 295 Documents<br />
    33. 33. “Functional” IPD<br />B 295<br />General Conditions for Integrated Project Delivery<br />A 195<br />Owner - Contractor<br />B 195<br />Owner – Architect<br />
    34. 34. Project Phasing<br />Agency Approval<br />Buyout<br />Criteria<br />Design<br />Detailed<br />Design<br />Implementation<br />Documents<br />Final Buyout<br />Conceptualizat’n<br />Construct’<br />Admin<br />Closeout<br />Final Agency Approval<br />AIA 195/295<br />Schematic Design<br />Design Development<br />Contract Documents<br />Bid & Negotiation<br />Programming<br />Construction Administration<br />Post Occupancy<br />AIA Traditional<br />C-Outline Proposals<br />D-Detailed Proposals<br />E-Final Proposals<br />F-Production Information<br />G-Tender Documentation<br />H-Tender Action<br />J-Mobilization<br />K-Construction to Practical Completion<br />L-After Practical Completion<br />A-Appraisal<br />B-Strategic Briefing<br />RIBA Stages<br />
    35. 35. Model Progression Specification<br />AIA Document <br />E202™ - 2008<br />
    36. 36. Multi-Party Agreement for IPD<br />
    37. 37. Essential Features of IPD<br />Shared Objective<br />Joint Project Management<br />Early Participation<br />Shared Risk & Reward<br />Source - Howard W. Ashcraft, Jr.; Hanson Bridgett LLP<br />
    38. 38. Shared Objective<br />Validated Target Program<br />qualitative & quantitative goals setting the Owner’s project requirements<br />Validated Target Cost<br />(with ICL)<br />single sum for all Direct Costs to design & build the project (also sets the ICL)<br />Validated Target Schedule<br />key task timelines, milestones, target date for Substantial Completion<br />
    39. 39. Project Management Team<br />Executive Committee<br />Direction, approval & decisions<br />Project Implementation Team<br />Design and Build the Project<br />Key Participants, early as possible<br />Joint Project Management<br />
    40. 40. Project Management Team<br /><ul><li>Project Facilitator, if required;
    41. 41. Jointly selected
    42. 42. Direct project cost
    43. 43. No ‘skin-in-game’
    44. 44. Honest broker
    45. 45. Enable the conversation
    46. 46. Cost
    47. 47. Schedule
    48. 48. Reliability</li></ul>Owner<br />PMT Facilitator<br />Architect<br />Contractor<br />PMT<br />
    49. 49. Facilitation, not Delegation<br />Owner<br />Architect<br />Contractor<br />
    50. 50. Project Implementation Team<br />MEP <br />Consultant<br />Owner<br />HVAC <br />Contractor<br />Structural<br />Engineer<br />Electrical<br />Contractor<br />Architect<br />Contractor<br />Civil<br />Engineer<br />Steel<br />Fabricator<br />Curtainwall<br />PIT<br />
    51. 51. Project Implementation Team<br />MEP <br />Consultant<br />Cost Reimbursable Consultants & Contractors<br />Owner<br />HVAC <br />Contractor<br />Structural<br />Engineer<br />Electrical<br />Contractor<br />Architect<br />Contractor<br />Civil<br />Engineer<br />Steel<br />Fabricator<br />Curtainwall<br />Fixed Price Consultants & Contractors<br />
    52. 52. Early Participation<br />WHAT<br />WHO<br />REALIZE<br />HOW<br />Agency<br />Owner<br />Architect<br />Engineers<br />GC<br />Subs<br />Implementation Documents<br />Agency Coord / Final Buyout<br />Construction<br />Conceptualization<br />Criteria Design<br />Closeout<br />Detailed Design<br />Agency<br />Owner<br />Architect<br />Engineers<br />Collaborate<br />GC<br />Subs<br />HOW<br />WHO<br />WHAT<br />REALIZE<br />Construction Documents<br />Agency Permit / Bidding<br />Construction<br />Predesign<br />Schematic Design<br />Closeout<br />Design Development<br />Key Participants<br />Traditional<br />- AIA,“Integrated Project Delivery: A Guide”<br />
    53. 53. Safeguard against fast & cheap<br />Project Quality Adjustment<br />PQA<br />Shared Risk & Reward<br />Project Schedule Adjustment<br />PSA<br />Construction Efficiency Adjustment<br />CEA<br />Incentive Compensation <br />Layer (ICL)<br />ICL<br />Owner<br />Participation<br />
    54. 54. PQA<br />C<br />A<br />Owner<br />Cost Reimbursable…<br />C<br />A<br />Owner<br />PSA<br />Cost Reimbursable…<br />C<br />A<br />Owner<br />CEA<br />Cost Reimbursable…<br />Contractor<br />Architect<br />ICL<br />Cost Reimbursable Consultants & Contractors<br />
    55. 55. +$8,000<br />-$3,200<br />-$3,200<br />20% of ICL, Maximum<br />PQA<br />-$1,600<br />+$1,500/day<br />-$200/day<br />-$200/day<br />Late Penalty @ 1/3 of Early Bonus<br />PSA<br />-$100/day<br />$2,000<br />$2,000<br />$5,000<br />$10,000 savings<br />CEA<br />$1,000<br />$16,000<br />$16,000<br />$40,000<br />ICL<br />$8,000<br />Hypothetical $1,000,000 VTC<br />
    56. 56. PQA<br />
    57. 57. What is it all about?<br />What is the idea?<br />What do you really need?<br />Recognize conditions;<br />state directions.<br />What do you want to do? Why?<br />Problem<br />Statement<br />Goals<br />Facts<br />Concepts<br />Needs<br />Function<br />Form<br />Cost<br />Time<br />Discovery<br />Analysis<br />Findings<br />Courtesy of HOK: Problem-Seeking ™<br />Information Index<br />
    58. 58. What is Direct Cost?<br />Profit-at-Risk (ICL)<br />Profit-Not-at-Risk<br />Within VTC<br />Overhead<br />Breakeven<br />‘Guaranteed’<br />Beyond VTC<br />DPE<br />Reimbursables<br />
    59. 59. Shared Pain & Gain<br />Owner pays direct costs<br />Scheduled<br />Completion<br />ICL<br />ICL pays direct costs<br />4%<br />VTC<br />Actual Completion<br />Owner pays direct costs<br />Cost<br />Time<br />
    60. 60. Design Costs<br />Architect<br />Cost Reimbursable Consultants<br />Fixed-Price Consultants<br />Reimbursable Expenses<br />Construction Costs<br />General Contractor<br />Cost Reimbursable Sub-Contractors<br />Fixed-Price Sub-Contractors<br />General Conditions<br />Other Direct Costs<br />PMT Facilitator<br />FF&E<br />Design and Construct to Objective<br />
    61. 61. Expectations<br />How to Recognize IPD<br />Is it Good for You?<br />
    62. 62. How to Recognize IPD<br />Multi-Party Agreement<br />Shared Risk & Reward<br />Relational Contract<br />Shared Project Objective<br />‘Zero’ Change Orders<br />Shared Unitary Fund<br />BIM-Optional (in theory)<br />
    63. 63. 1 Multi-Party Agreement<br />Single, signed agreement<br />Owner, Designer, Constructor<br />More parties, counterproductive<br />Joint project management<br />Achieve the project objective as the Project Management Team (PMT)<br />Limited / Waived liability<br />Among PMT<br />
    64. 64. 2 Shared Risk & Reward<br />Shared pain & gain based on project outcome<br />Team performance trumps individual<br />Early involvement of key participants<br />Cost Reimbursable consultants & contractors<br />
    65. 65. 3 Relational Contract<br />Agreement defines the working relationship of:<br />Owner, Designer, Constructor<br />Roles retain integrity<br />Deliver a project outcome, not a service<br />
    66. 66. 4 Shared Project Objective<br />Validated Target Cost<br />(VTC)<br />Incentive Compensation Layer (ICL)<br />Validated Target Program<br />(VTP)<br />Validated Target Schedule<br />(VTS)<br />
    67. 67. 5 ‘Zero’ Change Orders<br />Owner Directive<br />Differing Site Conditions<br />Agreed Scope Change<br />Adjust VTP, VTS, VTC, ICL<br />
    68. 68. 6 Shared Unitary Fund<br />VTC is the single source funding all design & construction direct costs<br />Funds ‘flow’ to maximize Owner value<br />If spending more on design saves much more on construction, then money moves that way, & vice-versa<br />
    69. 69. 7 BIM-Optional (in theory)<br />BIM is a tool, IPD a method<br />IPD without BIM is possible, but so difficult as to be impractical<br />BIM technology enables IPD<br />
    70. 70. Is it good for you? Ask, do we…<br />use a transparent & immediate decision-making process? <br />have knowledge regarding design & construction?<br />not delegate our project participation & responsibility?<br />know our building type?<br />enjoy a reputation for reliability?<br />
    71. 71. Thank You<br />

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