What you should know about Integrated Project Delivery

1. Integrated Project Delivery™ What You Should Know Sam Spata, AIA Architect, LEED® AP samspata@serafinobuilders.com

2. “To suffering there is a limit; to fearing, none.”

3. Theory Practice Tools Expectations Agenda

4. Theory A Tale of Two Curves From BIM to PIM

6. Owner Contractor Architect

7. Recession Recession Recession Recession Recession Higher Owner Expectations Satisfaction A/E/C Response Lower Time 1960 1970 1980 1990 2000 2010

8. In recession, Owners expect more value for money In recession, A/E/C’s bid low, investment lags

9. Recession Recession Recession Recession Recession Higher ? Program Management G-Max Fast-Track Satisfaction Construction Management Lower Time 1960 1970 1980 1990 2000 2010

10. Recession Recession Recession Recession Recession Higher Business as Usual Satisfaction Lower Time 1960 1970 1980 1990 2000 2010

11. BIM

12. Building Information Modeling (BIM) data & communication technology tool for object-oriented development using purpose-driven exchange to design & construct a project

13. Integrated Project Delivery (IPD) collaborative method guided by transparency and shared risk & reward to achieve the Owner’s desired outcome

14. Project Information Management (PIM) organized purpose-driven exchange approach toenable project team collaboration using BIM

15. Architect Architect Structural Engineer Civil Engineer Structural Engineer Civil Engineer Building Information Model (BIM) Building Owner Building Owner HVAC Engineer HVAC Engineer City City Facilities Manager Facilities Manager Constr. Manager Constr. Manager Early BIM

16. Author 3DS Max Rhino Maya ADT Research Gravity Affinity Ecotect Sketch Up Tekla Create BIM Navisworks Hold Wind CadDuct 5D 4D Construction Information Model TriRiga (IWMS) Mature BIM Purpose – built models Purpose – driven exchange

17. Project Information Management

18. Workflow Diagram – courtesy of HOK

19. Image – courtesy of HOK

20. Practice Challenges Integrated Project Delivery

21. Knowledge “…a means to a means to an end” Binder Blueprint Building

22. Owners do projects because they must not because they want to Owners want to create wealth Outcome

23. Cost value for money Velocity increased speed to market Quality decreased tolerance for error Complexity increased systems integration Risk decreased tolerance for uncertainty FEAR Challenges Owners Face RISK

24. Owner Scope Contractor $Does Not Easily Flow$ Architect Labor & Materials DPE DPE Profit Fee ? General Conditions Overhead

25. O O C A A C T A Design Build A Design Bid Build Design Assist + O O O O A C C A BIM GMP A C T Novation A IPD Project Delivery Methods C BIM T

26. O O C A A C T A Design Build A Design Bid Build O Design Assist + O O O O A C P3 PFI A C C Client Interaction C A BIM Design Assist T GMP A C BIM T Novation IPD A T Design / Construct Integration

27. O High Design / Construct Integration O C A A C T A Design Build A Design Bid Build O Design Assist + O High Client Interaction O O O A C P3 PFI A C C Client Interaction C A BIM Design Assist T GMP A C BIM T Novation IPD A Design / Construct Integration T

28. Tools Form of Agreement Model Progression Specification Essential Features of IPD

29. Agreement PIM BIM Integrated Project Delivery™

30. ROLE INTEGRITY Relational Outcome RECIPROCITY FLEXIBILITY CREATION OF RESTRAINT ON POWER IMPLEMENTATION OF PLANNING CONTRACTUAL SOLIDARITY Discrete Service PROPRIETY OF MEANS HARMONIZATION WITH SOCIAL MATRIX EFFECTUATION OF CONSENT RESTITUTION, RELIANCE, EXPECTATIONS - David Campbell,“Ian Macneil and the Relational Theory of Contract” Relational Contract Theory

32. AIA 195 / 295 Documents

33. “Functional” IPD B 295 General Conditions for Integrated Project Delivery A 195 Owner - Contractor B 195 Owner – Architect

34. Project Phasing Agency Approval Buyout Criteria Design Detailed Design Implementation Documents Final Buyout Conceptualizat’n Construct’ Admin Closeout Final Agency Approval AIA 195/295 Schematic Design Design Development Contract Documents Bid & Negotiation Programming Construction Administration Post Occupancy AIA Traditional C-Outline Proposals D-Detailed Proposals E-Final Proposals F-Production Information G-Tender Documentation H-Tender Action J-Mobilization K-Construction to Practical Completion L-After Practical Completion A-Appraisal B-Strategic Briefing RIBA Stages

35. Model Progression Specification AIA Document E202™ - 2008

36. Multi-Party Agreement for IPD

37. Essential Features of IPD Shared Objective Joint Project Management Early Participation Shared Risk & Reward Source - Howard W. Ashcraft, Jr.; Hanson Bridgett LLP

38. Shared Objective Validated Target Program qualitative & quantitative goals setting the Owner’s project requirements Validated Target Cost (with ICL) single sum for all Direct Costs to design & build the project (also sets the ICL) Validated Target Schedule key task timelines, milestones, target date for Substantial Completion

39. Project Management Team Executive Committee Direction, approval & decisions Project Implementation Team Design and Build the Project Key Participants, early as possible Joint Project Management

41. Jointly selected

42. Direct project cost

43. No ‘skin-in-game’

44. Honest broker

45. Enable the conversation

46. Cost

47. Schedule

48. ReliabilityOwner PMT Facilitator Architect Contractor PMT

49. Facilitation, not Delegation Owner Architect Contractor

50. Project Implementation Team MEP Consultant Owner HVAC Contractor Structural Engineer Electrical Contractor Architect Contractor Civil Engineer Steel Fabricator Curtainwall PIT

51. Project Implementation Team MEP Consultant Cost Reimbursable Consultants & Contractors Owner HVAC Contractor Structural Engineer Electrical Contractor Architect Contractor Civil Engineer Steel Fabricator Curtainwall Fixed Price Consultants & Contractors

52. Early Participation WHAT WHO REALIZE HOW Agency Owner Architect Engineers GC Subs Implementation Documents Agency Coord / Final Buyout Construction Conceptualization Criteria Design Closeout Detailed Design Agency Owner Architect Engineers Collaborate GC Subs HOW WHO WHAT REALIZE Construction Documents Agency Permit / Bidding Construction Predesign Schematic Design Closeout Design Development Key Participants Traditional - AIA,“Integrated Project Delivery: A Guide”

53. Safeguard against fast & cheap Project Quality Adjustment PQA Shared Risk & Reward Project Schedule Adjustment PSA Construction Efficiency Adjustment CEA Incentive Compensation Layer (ICL) ICL Owner Participation

54. PQA C A Owner Cost Reimbursable… C A Owner PSA Cost Reimbursable… C A Owner CEA Cost Reimbursable… Contractor Architect ICL Cost Reimbursable Consultants & Contractors

55. +$8,000 -$3,200 -$3,200 20% of ICL, Maximum PQA -$1,600 +$1,500/day -$200/day -$200/day Late Penalty @ 1/3 of Early Bonus PSA -$100/day $2,000 $2,000 $5,000 $10,000 savings CEA $1,000 $16,000 $16,000 $40,000 ICL $8,000 Hypothetical $1,000,000 VTC

56. PQA

57. What is it all about? What is the idea? What do you really need? Recognize conditions; state directions. What do you want to do? Why? Problem Statement Goals Facts Concepts Needs Function Form Cost Time Discovery Analysis Findings Courtesy of HOK: Problem-Seeking ™ Information Index

58. What is Direct Cost? Profit-at-Risk (ICL) Profit-Not-at-Risk Within VTC Overhead Breakeven ‘Guaranteed’ Beyond VTC DPE Reimbursables

59. Shared Pain & Gain Owner pays direct costs Scheduled Completion ICL ICL pays direct costs 4% VTC Actual Completion Owner pays direct costs Cost Time

60. Design Costs Architect Cost Reimbursable Consultants Fixed-Price Consultants Reimbursable Expenses Construction Costs General Contractor Cost Reimbursable Sub-Contractors Fixed-Price Sub-Contractors General Conditions Other Direct Costs PMT Facilitator FF&E Design and Construct to Objective

61. Expectations How to Recognize IPD Is it Good for You?

62. How to Recognize IPD Multi-Party Agreement Shared Risk & Reward Relational Contract Shared Project Objective ‘Zero’ Change Orders Shared Unitary Fund BIM-Optional (in theory)

63. 1 Multi-Party Agreement Single, signed agreement Owner, Designer, Constructor More parties, counterproductive Joint project management Achieve the project objective as the Project Management Team (PMT) Limited / Waived liability Among PMT

64. 2 Shared Risk & Reward Shared pain & gain based on project outcome Team performance trumps individual Early involvement of key participants Cost Reimbursable consultants & contractors

65. 3 Relational Contract Agreement defines the working relationship of: Owner, Designer, Constructor Roles retain integrity Deliver a project outcome, not a service

66. 4 Shared Project Objective Validated Target Cost (VTC) Incentive Compensation Layer (ICL) Validated Target Program (VTP) Validated Target Schedule (VTS)

67. 5 ‘Zero’ Change Orders Owner Directive Differing Site Conditions Agreed Scope Change Adjust VTP, VTS, VTC, ICL

68. 6 Shared Unitary Fund VTC is the single source funding all design & construction direct costs Funds ‘flow’ to maximize Owner value If spending more on design saves much more on construction, then money moves that way, & vice-versa

69. 7 BIM-Optional (in theory) BIM is a tool, IPD a method IPD without BIM is possible, but so difficult as to be impractical BIM technology enables IPD

70. Is it good for you? Ask, do we… use a transparent & immediate decision-making process? have knowledge regarding design & construction? not delegate our project participation & responsibility? know our building type? enjoy a reputation for reliability?

71. Thank You