Integrated Project Delivery

The Future of Professional Practice:
The Next Generation of Integrated Delivery,
Emerging Technology and Practice Management

“BEYOND COLLABORATION –
THE BENEFITS OF INTEGRATED DELIVERY”
presented by:
Doug Parris, Todd Buchanan, Tom Owens


• What is it?
• Why does it Matter?
• What is Contract Basis?
• How do we do it?
• Who are the Early Adopters?
• Value

Our definition:
Integrated Delivery is a project
approach which integrates, from
start to finish the three major
stakeholders (owner / user, designers
and constructors/fabricators) around
mutual project outcome based
objectives.


Before Integration After Integration
1999 → Stagnant factory line Today → Moving factory line
27 days 11 days (or less)

The Changing Marketplace: Boeing 737

At its best, all economic incentives
are aligned and mutual, the process
is based on open information
sharing, design through fabrication
and construction is based on the
collaborative interaction of all
parties, and no work or information
creation redundancies.

Traditional Team
Integrated

Owner

PROGRAM/OPERATIONS DESIGN INTENT VIRTUAL PHYSICAL TURNOVER
DESIGN/CONSTRUCT CONSTRUCT OCCUPANCY

Designer

Builder/Fabricators

Traditional Integrated Delivery
Fragmented, assembled on “just-as-needed” or
An integrated team entity composed of all project
“minimum-necessary” basis, strongly hierarchical,
controlled Teams lifecycle stakeholders, assembled early in the
process, collaborative

Concurrent, multi-level, integrated; early
Linear, distinct, segregated; knowledge gathered
contributions of knowledge
“just-as-needed”; information Process and expertise;
hoarded
information openly shared

Individually managed, transferred to the greatest
extent possible Risk Collectively managed, appropriately shared

Individually pursued; minimum effort for maximum Team success tied to project success; value-
return; (usually) first-cost based Compensation / Reward based

Digitally based, virtual,
Communications /
Paper-based, 2 dimensional; analog 4 dimensional;
Technology Building Information Modeling

Minimum effort for maximum return; minimize Encourage, foster, promote and support open
or transfer risk; don’t share Agreements sharing and collaboration, full integration

Team-based, integrated, collaborative;
Individually focused, emphasis on composition Education technologically inclusive; a materials and
methods focus in addition to composition

Our Client’s Viewpoint:
– Waste (30%), errors, cost, and
schedule overruns
– Lack of collaboration, poor
information integration, lack of
common goal
– “Project organization…silos
between design, fabrication,
and construction or building
operation.”
– “Participants optimizing for its
own interest rather than that of
overall project.”

And, their observations of the
opportunities created by
collaboration were:

–“Virtual buildings created in a fully
collaborative environment.”
–“Building information models …create
the best chances for finding…mistakes;
optimizing systems, materials…reducing
cost of building and building
operations.”
–“Project teams…include designers,
contractors, suppliers, manufacturers,
facility managers… adopting a systems August 2004 July 2006
CURT Whitepaper 1202 CURT Whitepaper 1003
approach…result in true collaboration in
best interest of the project.


Design Cost Construct Operate
$24B $400B $4T

More
Knowledge

Less
Design Procure Build Manage
slide courtesy of Autodesk


From Constructors Viewpoint:
– Replace the conflict with teamwork
– Optimize industrialized workforce – offsite
fabrication
– Reduce speculative crapshoot
– Share Rewards (w/risk)
− Early Involvement
− Common Goals
− Teamwork
− Utilizing Multiple Experiences/Expertise
− Reduced Costs
− Best Value/Product
− Creative Contracting
− Operational & Maintenance Savings
− Relationships

• Impact of eliminating 10%, 15% or 20% of the waste
– $10 to $18 million on a 500,000 sq ft replacement hospital
• Owner
– Be the leader. Market responds to the customer.
– Change your paradigms; demand more.
– Create a lean decision-making process.
– Create clear, consistent project goals for everyone.
– Create incentives for exceptional results.
• Industry
– Integrate into single-purpose colocated teams.
– Create strategic supply chain relationships.
– Common goals, shared incentives and managed risk
– Open cost sharing—help all participants drive costs out of their businesses.
– Observe, measure, improve.

• Collaborative environment
– Mutual benefit to owner, architect, contractor
and subcontractors
– Improved communication and understanding
• Elimination of waste
– Better planning
– Right materials showing up at the right time
– Reduced rework
– Improved communication
• Prefabrication
– Modularization of major components
– More off-site fabrication
– Increased quality


From Architect’s Viewpoint:
– Put the fun back into building
– Replace the conflict with teamwork
– Harness the power of the
construction industry to deliver the
project
– Realize Design Vision more
effectively and efficiently
– Share Rewards (w/risk)


From Architect’s Viewpoint:
– Transformation of process
– Become more of a learning
organization
– Deeper immersion in the craft
– No RFI’s/change orders
– Reallocation of focus –
research/discovery/innovation
– Speed to market

• What is it?
• Why does it Matter?
• What is Contract Basis?
• How do we do it?
• Who are the Early Adopters?
• Value

Intention / Relational Contract

• The agreement goal should be to attain high
quality delivery of a project through elimination of
redundancy, errors and waste.

• The goal is realized by aligning the interests of
owner, builder and designer with a mutually
agreed definition of project success.

Integrated Delivery requires a culture of
Collaboration

• For success, design of the project must proceed with
informed, accurate information concerning program,
quality, cost, and schedule.

• The entire teams’ expertise will need to be integrated
throughout the process to be attain success.

• Isolation or collaborating only at milestones will not
achieve the benefits of integration, constant free flow of
information, working together, is key.

Contract Concepts to Build Culture
• Align risk and reward to optimize project success
over individual entity success

• Align risk and reward with a party's ability to
control risk

• Require an open information environment

• Require everybody to think operate, design and
construct

Contract Steps:

• Start with all three parties contracting together to
eliminate “Owner in the middle.”

• A team of Owner, Builder and Designer lead the project
with a bias toward consensus decision making.

• The program should be complete and a target price set
agreeable to all

• All three parties agree to openly share information and
cooperatively collaborate for the benefit of the project.

• As Trade Contractors and Design Consultants are added
they acknowledge the new arrangement.

Contract Steps
• Engage the Builder during early design so that pricing, constructability
and value engineering are integrated from the beginning

• Make cost and schedule design criteria

• Set appropriate contingencies, share one between Builder and
Designer

• Put profit for both Builder and Designer at “risk for failure’ to perform
as a team with a corresponding reward shared by both if they perform
above the standard of care

• Engaging Trade Contractors early for the purpose of collaborating with
their complimentary engineering discipline and driving innovation

• Major trade contractors structure, mechanical, electrical, plumbing,
skin and drywall are selected during schematic design to facilitate an
integrated collaborative design process.

Contract Supports Lean

• Design the process first then design the project
• Concurrent set based design, take forward
multiple design alternatives to the last
responsible moment
• Incorporating value as the key design proposition
• Build virtually before building physically
– Eliminate redundant efforts and conflicts
– Optimizing means and methods
– Maximizing off site construction
– Zero RFI goal

Can you use a traditional contract?

Not really.

• You can’t align risk and reward to optimize project success
over individual entity success if the designer and builder
are not a team

• Cultural change is hard enough with a new contract,
without it people revert to thinking about their interests
and controlling information

• Nearly impossible to integrate operating, design and
construction knowledge without huge risk to the designer

Can you go part way?

Possibly.

• Find the key disciplines for the large costs on the
project

• Find open minded designers willing to “contract
out” construction documents

• Find open minded trade contractors willing to
draw shops/construction documents with
designer oversight

NBBJ’s template

http://www.nbbj.com/access/IntDelDraftNBBJ.doc


Process Design SUSTAINABLE PROCESS
DESIGN DESIGN

Integrated Design
LEAN
Integrated Fabrication CONCEPTS BIM

Building Information Modeling

Sustainable Design

INTEGRATED
DELIVERY

Process Design:
Creating a comprehensive road map
For the own design construct team in
order to navigate the limitless choices
offered throughout the creative journey.

The organization and ideation that
creates the framework for outstanding
design, execution & extraordinary
results

Is tailored to project success in very
specific terms and is developed by a
collaboration of all participants.

Integrated Design:

Engaging the broadest range of Creative
and design disciplines in an effective
and efficient manner from the beginning
ensures that the solutions are as rich
and content filled as possible.

This engagement of behavioral, artistic
and engineering perspectives offered at
the earliest stages provides the
opportunity to discover and explore new
building typologies in a timely way.

Integrated Fabrication:

The opportunity to tap the skills and
knowledge of the fabricate/construct
trades and professionals in optimizing
the methods for design realization can
make the design tectonics better and
more sustainable

This approach can also eliminate
wasteful duplication of documentation
efforts and the errors associated with
multiple information transfer

Building Information
Modeling (BIM):
BIM is an evolving term generally
referring to the broad use of 3D digital
building models with linked parametric
information to achieve the goal of
integrated project data, enhanced
visualization, and data sharing and re-
use by various members of the building
team. BIM is the enabler for integration
and open information sharing

(BIM) in practice:
building design visualization
programming, massing, cladding design, interiors, virtual
walkthrough’s

model intelligence
area calculations, envelope analysis, quantity reporting, schedules,
cost estimating

integrated design across disciplines
design team: architecture, interiors, lighting, structural, MEP, civil
construct team: contractor, subcontractors, fabricators
owner: facility managers, department user groups

BIM as a facility management tool
deliver model to owner for future O&M

building information model | the model as the nucleus

visualization | building design

model intelligence | 3d libraries

model intelligence | extractions

model intelligence | live interior elevations

model intelligence | sustainable design

model intelligence | reporting

model intelligence | travel distance

model intelligence | medical equipment

model intelligence | door intelligence – door schedule data (live)

model intelligence | automated door schedule

model intelligence | wall calculation

model intelligence | cost estimating

integrated design | multi-discipline coordination

SITE

integrated design | model integration

SITE
CORE


SITE
CORE
STRUCTURE


SITE
CORE
STRUCTURE
SHAFTS


SITE
CORE
STRUCTURE
SHAFTS
HVAC


SITE
CORE
STRUCTURE
SHAFTS
HVAC
PLUMBING


SITE
CORE
STRUCTURE
SHAFTS
HVAC
PLUMBING
FIRE PROTECTION


SITE
CORE
STRUCTURE
SHAFTS
HVAC
PLUMBING
FIRE PROTECTION
TECHNOLOGY


SITE
CORE
STRUCTURAL
SHAFTS
HVAC
PLUMBING
FIRE PROTECTION
TECHNOLOGY
INTERIORS


SITE
CORE
STRUCTURAL
SHAFTS
HVAC
PLUMBING
FIRE PROTECTION
TECHNOLOGY
INTERIORS
EQUIPMENT
FOOD SERVICE


SITE
CORE
STRUCTURAL
SHAFTS
HVAC
PLUMBING
FIRE PROTECTION
TECHNOLOGY
INTERIORS
EQUIPMENT
FOOD SERVICE
SHELL


integrated design | the big room concept

integrated design | collision detection above ceiling coordination

integrated design | coordination operating room equipment booms

integrated design | virtual walk-through’s

collaboration | contractor modeling

collaboration | communication timeline

facility management | campus information model


Integrated Delivery – the early models
− Community Health Partners
− Bay Park
− Wake Medical Center

Integrated Delivery by Contract - current
− Sutter - PAMF (in Design Intent)
− Virginia Mason (in negotiation)

Integrated Delivery in Principle
− Mass. General Hospital
− Cleveland Clinic – Glickman Tower
− Providence Novi
− Swedish Orthopedic Institute
−Wellcome Trust

Bay Park Community Hospital
Oregon, OH
• 23 months from beginning of
design to move in
• SPE integrated team (design firm,
CM, mechanical, electrical) NBBJ

surfaced all contingencies.
• Precise structure enabled high
degree of off-site fabrication.
• Dramatically reduced waste
• Returned 11% of construction
budget in added scope


Sutter Healthcare
• Facility Planning and Design (FPD) hit upon the success of Toyota and
determined that if they could apply their methodology to design and
construction projects, the executive challenge could be met.
• In September 2004, after 2 years of research and exploration, Sutter
Health made the decision and commitment to go Lean.
• Lean
– Reinvent how hospitals deliver care to the patient (flow, wait time, etc) and
how we deliver design and construction services
– Knowing the customer
– Work flow
– Pull scheduling
– Batch size and …
– All the attendant behavior and processes to effect them


Sutter Healthcare
• Sutter developed their 5 Big Ideas that are the framework for
approaching all aspects of Sutter’s Lean Project delivery.
Collaborate—really collaborate—throughout design, planning and execution.
Increase relatedness among all project participants.
Projects are networks of commitments.
Optimize the project, not the pieces.
Tightly couple action with learning.


Sutter Healthcare
• FPD’s goal was to increase the reliability that projects conceptually
approved and funded in year 1 are designed and constructed in
year 5+:
– On time or early
– Within budget or less
– Without claims
– Safely (without creating patients)
– Without burning out FPD staff
• For 3 years, we have been training and collaborating with the AEC
community.
– Learning the skills needed for Lean Project delivery
– Developing an implementation strategy
– Demonstrating our commitment to continually improving
– Openly sharing the learning in our project community
AEC = architecture, engineering and construction.


Sutter Healthcare
• Our expectation now is across-the-board deployment with a “lite” version for
smaller projects.
• We’ve tested and tried for 3 years. We’re at a point where we can coalesce the
learning and results and develop a standardized work plan for projects to follow
and improve on.
• The plan is to share the experiences of 4 teams currently completing project
and business case validation and create a standard work process for this stage.
This will be followed by standardized work plans for:
– Design
– Documentation
– Permitting
– Construction
• We’ve developed and continue to add to a stable of architects, engineers and
contractors who are willing and able to work in this fashion.


Value:
This is a relatively new approach and the first projects to use it from start to finish have
yet to be completed… however some aspects have been realized on projects which have
produced positive results.

Will it save money?
•Per industry estimates 30% or more is at stake
•Sutter Health expects minimum 5% return based on experience with MEP systems alone
•Among other areas Mortenson reports significant savings in structural alone

Will it save time?
•Overall likely about the same, but likely less time in construction due to
virtual construction, 4D construction planning and off-site fabrication
•This can improve cash flow, reduce cost risk once construction initiated


Value:
Will it eliminate material waste?
•Experience of NBBJ at Harborview virtually elliminated any waste scraps from
sheetmetal, piping, conduit,cable tray
•Mortenson reports achieving virtually zero structural steel waste

Will it be green ?
•Integrated analysis of green alternatives from beginning to end
makes cost effective green more likely
•4D construction planning improves potential for minimizing
construction waste ( scaffolding, formwork, drywall timeframe)

Will it improve quality?
•Total team (Client/Designer/Builder) engagement in process ensures
“appropriate” quality choices
•Engagement of real fabricators in detailing ensures best quality/price
alignment

US Architecture Engineering Construction Waste
• Total ’05 US Construction Industry $1.03 Trillion
• 30% Waste* = $309 Billion
• Non Residential Building =$275 Billion
• 30% Waste*=$85 Billion

Global Annual Cost of Poverty Elimination,
Carbon Reduction
• Poverty =$75 B (Sachs)
• Carbon=$10B (@4%)

Our Industry has the ability to
Fund the Changes
through Integration…

*CURT

Currently, there is and abundance of resource and reference information
available on the internet. The following are several websites of interest:

• AIA Integrated Practice Website http://aia.org/ip.default
• Construction Users Roundtable (CURT) http://www.curt.org
• Associated General Contractors of America (AGC) http://www.agc.org/index.ww
• Design-Build Institute of America (DBIA) http://www.dbia.org/
• Lean Construction Institute (LCI) http://www.leanconstruction.org/
• Construction Industry Institute (CII) http://www.construction-institute.org
• NBBJ Integrated Delivery Contract –
http://www.nbbj.com/access/IntDelDraftNBBJ.doc
• Refabricating Architecture – Stephen Kieran and James Timberlake
• Product Development for the Lean Enterprise – James Kennedy

The Future of Professional Practice:
The Next Generation of Integrated Delivery,
Emerging Technology and Practice Management

presented by:
Doug Parris, Todd Buchanan, Tom Owens

Questions & Discussion

Integrated Project Delivery

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