The document discusses emerging project delivery methods that are better suited to address current challenges in the construction industry. It outlines several methods including integrated project delivery (IPD), job order contracting (JOC), design-build, public-private partnerships (PPP), and energy performance contracts. These methods aim to foster earlier collaboration, incorporate life-cycle considerations, incentivize performance, and leverage technology to improve outcomes. Case studies are provided for each method highlighting benefits like time and cost savings.

1. PROJECT DELIVERY
METHODS OF THE
FUTURE
Lisa Cooley, LEED AP
Lisa Cooley Associates, LLC
Peter Cholakis
4Clicks Solutions, LLC
In the long history of humankind,
those who learned to collaborate
and improvise most effectively have
prevailed.
– Charles Darwin

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4. Meet Our Presenter(s):
Lisa Cooley, LEEP AP
Owner/Principal
Lisa Cooley Associates, LLC
• Born- and-bred construction
industry veteran
• Expert in Job Order Contracting
and small projects solutions
• Passionate about evolving delivery
methods
Peter Cholakis
Chief Marketing Officer
4 Clicks Solutions, LLC
• Career defining capital planning
and management solutions
• Expert on facility lifecycle and Total
Cost of Ownership
• Passionate about leveraging
technology to foster collaboration

7. Looking to the Past:

8. Owner
Designer
Builder
72% of projects over budget
70% of projects over schedule
5% of project costs spent in bidding
Rex Miller, Commercial Real Estate Revolution
price
based selection
qualifications
based selection
knowledge
gap
Fracturing of the Industry and its Results:
Adapted, HOK Architects

9. Owner
Builder 3
Subcontractors
Supply Chain Barriers:
Builder 1 Builder
5
Builder 2 Builder 4
PROJECT

10. Technology Barriers

11. Technology Barriers
Owner
AE
Contractor
Subs

12. Technology Barriers– Speed vs. Flexibility
Owner
AE
Contractor
Subs
?
?
?
?
!! !!!!
?@#!*

13. 13
Excel
Spreadsheets
Relational Database
Cloud
Computing
Flexibility
Collaboration
Technology Barriers

14. 14
Catalysts of Change

15. 15
Environmental:
1. Recognition of building’s role in climate change
2. Challenge of meeting rising Energy Needs and paying for it
3. Government mandates

16. 16
Economic:
1. Fallout from of a building boom followed by recession
2. Reduced capital expenditures at a time when monumental
change to the built environment is needed
3. World economy becoming “flat”
Altered
Economic
Landscape

17. 17
Resulting in a fundamental
cultural shift?
Driven by Millennial sensibilities and values
The built environment is transforming to meet efficiency needs
There is a need for responsive project delivery methods to
facilitate these changes

18. 18
Big Data:
BIM and sophisticated energy modeling for new construction
Ability to collect building performance metrics for existing buildings
Challenge:
1. How to process it for decisionmaking and
2. How to leverage team expertise to effect productive change
Need for delivery methods to quickly respond to urgency
created by transparent data

19. 19

20. 20
=
Disruptive technology is a term coined by Harvard Business School professor Clayton
M. Christensen to describe a new technology that unexpectedly displaces an
established technology.
Disruptive Technologies:
BIM Cloud Computing
A disruptive technology changes/overturns traditional business methods and practices.

21. 21
BIM is the life-cycle management of the built environment supported by digital
technology.
(adapted from NIBS)
BIM – The “Simple Definition”

22. People
Process
Information
BIM
&
Cloud
Computing
OWNERS
AE’s
CONTRACT
ORS
SUB-
CONTRACT
ORS

23. Cloud Computing
23

24. 24
Convergence
Flat World
Economy
Constrained
Capital Dollars
Refocus on
O&M
Carbon
Footprint
Government
Mandates
New Project
Delivery
Methods to Meet
New Demands
Altered
Environmental
Landscape
Altered
Economic
Landscape
Disruptive
Technology

25. 25
Key Characteristics
of Emergent Project
Delivery Methods
Qualifications Based or Best Value Selection
Some form of pricing transparency
Early and ongoing information-sharing among project
stakeholders
Appropriate distribution of risk
Some form of financial incentive to drive performance

26. 26
Design-Build
• Single Source Responsibility
• Shifts risk of design errors from Owner to Contractor
• Maximizing construction dollars—Design-to-Budget
• Faster Delivery
• Can be commoditized as low bid, but can be innovative with performance-
based measures
From Scherer Construction, www.scherercfl.com

27. 27
Design-Build Case Study
Awarded September 11, 2001
Schedule, budget and scope completely
changed from original bid
Completed 14 months ahead of schedule and
$100 million under budget
Performance-based, flexible contract allowed
for innovation
Incentives:
Award fee allowed profit margins up to 10% if
project goals were met
Cost incentive allowed design/builder to share
percentage of cost savings—30-50%
Subjective evaluations every 90 days—
feedback loop

28. 28
Integrated Project Delivery
Est. Max Price
Actual Cost
Shared
Contingency
Cost
of
the
Work
Incentive
Pool
Owner
Cost
Savings
Savings
$$$
Target Cost
• Alliance Contracts create shared Risk and Reward—shared contingency and
shared incentive pool. Liability Waivers mean no ability to sue.
• Entire team on board before design starts—requires Qualifications Based
Selection and Full Pricing Transparency
• Deep involvement of key subcontractors and suppliers in design process
• Goal is to reduce duplication of design efforts--shop drawings serve design
development
• Utilization of BIM and other forward-thinking technologies to enable
collaboration among team members

29. 29

30. 30
IPD
JOC DBB

31. 31
Job Order Contracting
 “IPD Lite” for Existing Buildings
 Consolidates procurement to shorten
Project Timelines and reduce
procurement costs
 Transparency of pricing and
procurement compliance through Unit
Price Book
 Long Term Facility Relationship
increases productivity and enables
reiterative process improvements
 Quality and performance incentivized
through IDIQ form of contract with
minimal guarantee and clear maximum
volume

32. Shorter Project Timelines
32

33. 33
• Fast and timely delivery of projects.
• Consolidation of procurement creates lower overhead cost and procurement
cost
• Contractor and owner efficiencies in prosecution of the work. Development
of a partner relationship based on work performance.
• Virtual elimination of legal disputes, claims and change orders.
• Standard pricing and specification utilizing a published unit price book
(UPB), resulting in efficient and effective estimating, design, and fixed price
construction.
Advantages of JOC for Owners

34. How OWNERS Use JOC & Technology
Programming Estimate
Estimates from Each Design Stage
Final Detailed Cost Estimate
Initial Contractor Proposals
Technically Evaluated Proposals
Final Revised Contractor Proposals
Modifications & Changes Orders
 Track & Manage each project from
inception to completion.
 Manage a single project, your
entire contract, or multiple
contracts.
 All project milestones, thru
warranty period.
 Display status of each project.
 Maintain a complete cost history
 Record all estimates associated
with a project.
 Review value of all projects
awarded on a specific contract, or
to a specific contractor.
 Reports show pre-negotiation
strategies and post-negotiation
summaries.
34

35. 35
Job Order Contracting
Case Study
JOC in place since 1999
Completing $2.5-$3m annually
Average project size about $20,000
Examples of JOC projects:
• Office and classroom renovations
• Laboratory renovations
• Installation of varies mechanical equipment and associated
work
• Road and parking lot improvements
• Interior finish-out projects for commercial spaces
• ADA modifications
• Mold and bird remediation
• Waterproofing projects
• Sports courts and recreational facilities
• Food service renovations
• Signage installation
• Sidewalks
Starbucks
$208,841
Coordination of university requirements with
concessionaire
Bio Safety Level 3 Laboratory
$443,650
Rapid deployment of grant funds for anti-
terrorism research

36. 36
Public Private Partnerships
• Finds fullest expression as Design-Build-Own-Operate
• Takes advantage of the same team innovations as Design-
Build and IPD—contract includes design and construction.
• Added benefit of private financing for upfront cost. Funding
through toll concessions or availability payments.
• Some may be during the course of design/construction
• After completion, typically receive a regular (e.g. annual)
payment – similar to a lease payment
• Added component of ongoing operation/maintenance.
• Allows owners to incentivize ongoing building performance
• Size of ongoing payments is contingent on the
performance of the asset
• Drives performance and lifecycle decisions. Ultimate
accountability for building systems.
• Originally focused on transportation. Now
expanding into “social infrastructure” projects.

37. 37
PPP Case Study
Long Beach Courthouse
Development Cost: $490M
Lease-back period: 35 years
Performance Based Contract: Lease payments will
be reduced if the private sector underperforms
Extensive list of property management requirements
Exact formulas for decreasing lease payments if
requirements are not met
Innovative Approach: Integrated design approach
includes operations staff in design and construction
decisions

38. Process
38

39. 39
Energy Performance Contracts
• Usually includes financing—
paid off with energy savings
• Payment based on anticipated
energy savings, or contingent
on actual savings
• Well-established in public
sector, challenges in private
sector
• Variation: Energy Services
Agreement. New business
models to address challenges:
Managed Utility Service
Agreements, Property
Assessed Clean Energy
(PACE), On-bill financing
• Drivers: benchmarking laws
creating transparency in
building energy costs for
tenants and buyers, C-Suite
lens into facility costs

40. 40
ESPC Case Study
State of Pennsylvania Department of General Services
• Guaranteed Energy Savings Act
• Strategic program approach
• Integrated approach with PPAs
• Small projects element
• Standardized contracts

41. 41

42. Supporting Software Technology
Integration of Proven Construction Delivery Methods / Project
Management
Standardized Cost Data Architectures / Taxonomies (i.e.
RSMeansTM – 400,000 line items)
Comprehensive Document Management
Electronic Visualization / QTO
42

43. A Common Language
MasterFormat2010, Uniformat II – Reference
Cost Databases (aka RSMeans)
COBIE, OMNICLASS
IFC
Metrics: FCI, SCI, Cost/GSF,
Cost/NSF, Utilization Rates, ….
43

44. “Facebook” for the Built Environment 1

45. Project Collaboration

46. Real Time Collaboration via Web Meetings

47. “Facebook” for the Built Environment 2

49. 49
ce
construction
Crystal Ball:
What does the future hold?
1. Christian and Pandaya, 1997. C
Prediction of Facilities.
2. NIBS 1998. Excellence in Facilit
Managment

50. 50
construction
Crystal Ball:
What does the future hold?
Increased energy efficiency
Educational outcomes
Healthcare outcomes
Increased worker productivity
Performance
Specs
Sophisticated
Data Analysis
Compensation
Structure

51. 51
Contact and Other Info
Lisa Cooley, LEED AP
Lisa Cooley Associates, LLC
www.lisacooleyassociates.com
505-239-3446
lisa@lisacooleyassociates.com
Peter Cholakis
4Clicks, LLC
www.4clicks.com
781-983-1128
pcholakis@4clicks.com
Presentation will be posted at www.lisacooleyassociates.com
Sources/Bibliography at: http://www.scoop.it/t/betterbuilding

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IFMA’s World Workplace.
Be sure to evaluate the session at
the registration kiosk or online at
http://ceu.experient-inc.com/WWC121
Thank You!