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CoreNet Global Summit




#11 A Corporate Real Estate “mindshift”:
    The New Trust-Based Turnkey Approach
    to Buildin...
A new way of thinking about an old problem.
Acknowledgements/Credits
               is comprised of AIA, GSA, Gensler, KPMG,
Metropolis Magazine, Turner Construction,...
Learning Objectives
Explore and Explain:

• Broken Buildings and Busted
  Budgets* - the industry today.

• What is the mi...
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 Soluti...
Hierarchal Delivery Model
Fielding a New Team Every Project
80% of the Cost is Brought in Late




                         Adapted from:
                                  McDonough ...
If Corollas were Design-Bid-Build?
    Design-Bid-Build…        Integrated…
    It would cost: $44,000   It would cost: $1...
Waste in the System

   Manufacturing      Construction




                       57%


           12%
The Brutal Facts
• $700 billion annual WASTE
 (BuildingsSmartAlliance)

• 48% of GHG
 (Energy Info Admin Statistics and Pe...
Owners Demand Fundamental Change

 Construction Users Roundtable (CURT):
 “Address the perception of inadequate, poorly
 c...
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...
Principle 3: Built-In Sustainability

Sustainable projects at no
premium using integration.
• By Removing Some of the 57%
...
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...
Alignment 2: Toyota Style

• Reduces cost by 30%
•   Client Defines Value
•   Involve Those Doing the Work
•   Identify Act...
Alignment 3: Shared Risk/Reward

• Project vs. Scope
• Joint Incentive and Risk

• AIA’s Integrated Project
  Delivery Gui...
Alignment 4: Off-Site Fabrication

•   Structure
•   Interior Walls
•   Access Floors
•   Mechanical
•   Electrical
•   Pl...
Alignment 5: Performance Impact
Camino Royale             Results:

 Multi-Party Agreement   $94M budget
                          $9M Saved
 Early Busi...
Aardex Signature Center   Results:
                          $20.5 million/$3 per sqft
  Vertical               less than...
A Prescription for Success
The Mindshift Cure
MindshiftWiki Resource Site

Mindshift Project Assessment

Mindshift Project Delivery

Mindshift Consul...
The Mindshift Cure
     Stay Tuned for the Book

   The Commercial Real Estate
          Revolution

Release August 2009 t...
Call to Action (1)
• Select teams early based on
  qualifications
• Prepare to shift $ forward to
  develop business case,...
Call to Action (2)
• Be aware of the extend of waste,
  develop a plan to identify and
  eliminate
• Rehearses common avoi...
Contact Information
Rex Miller, Thought Leader
rex@rexmiller.net
Dean Strombom, Principal
dean_strombom@gensler.com
Mark I...
Operation Mindshift Corenet 08
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Operation Mindshift Corenet 08

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How trust-based teams using turnkey integrated design and construction to reduce cost, shorten schedules and remove conflict.

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Operation Mindshift Corenet 08

  1. 1. 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
  2. 2. A new way of thinking about an old problem.
  3. 3. 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.
  4. 4. 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
  5. 5. Agile Race in an Institutional Buggy!
  6. 6. Silos Adapted from: McDonough Holland & Allen PC Attorneys At Law
  7. 7. “Buildings Leak at the Intersection of Contracts” Adapted from: Todd Zabelle, Strategic Project Solutions
  8. 8. Hierarchal Delivery Model
  9. 9. Fielding a New Team Every Project
  10. 10. 80% of the Cost is Brought in Late Adapted from: McDonough Holland & Allen PC Attorneys At Law
  11. 11. 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
  12. 12. Waste in the System Manufacturing Construction 57% 12%
  13. 13. 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)
  14. 14. 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.”
  15. 15. Principle 1: Trust-Based Teams • Values • Capabilities • Play Book • Tools • Pre-Game • Measure • Improve
  16. 16. 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
  17. 17. 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.
  18. 18. Principle 4: True Improvement A common team, process plus relevant performance metrics allows continuous improvement.
  19. 19. 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
  20. 20. 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
  21. 21. 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
  22. 22. Alignment 4: Off-Site Fabrication • Structure • Interior Walls • Access Floors • Mechanical • Electrical • Plumbing • Concrete • Millwork • Bathrooms
  23. 23. Alignment 5: Performance Impact
  24. 24. 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
  25. 25. 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
  26. 26. A Prescription for Success
  27. 27. The Mindshift Cure MindshiftWiki Resource Site Mindshift Project Assessment Mindshift Project Delivery Mindshift Consulting and Coaching
  28. 28. The Mindshift Cure Stay Tuned for the Book The Commercial Real Estate Revolution Release August 2009 through John P. Wiley Publishing
  29. 29. 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
  30. 30. 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
  31. 31. 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

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