consensus docs: introduction to integrated project delivery in construction

Introduction To Integrated Project Delivery

Joe ClevesWill A. Lichtig

© 2013 Dressman Benzinger LaVelle psc and The Boldt Company. All rights reserved

DESIGN-BID-BUILD:A BROKEN SYSTEM

Productivity not improving

Selection criteria – lowest initial price

Fragmented process – flawed assumptions


Requests for Information are wasteful

Bid margins contain past inefficiencies

Redesign is rampant and expensive



Traditional contracts – Rules of War

Risk flows down

Party’s incentive – own best interest



Spearin doctrine’s implied design warranty

Conflicting decisions mean unpredictable results

Results amplify adversarial relations



Economic loss decisions equally confusing

Complex doctrine with complex exceptions

Contract drafting becomes guesswork



Traditional Versus IPD

Owner

Planner A/E Builder

Other Partners

Traditional Model

• Hierarchical

• “Push processes”

• Risk avoidance© 2013 Dressman Benzinger LaVelle psc and The Boldt Company. All rights reserved

TRADITIONAL PROJECT DELIVERYLEVEL OF COMMON UNDERSTANDING


Traditional Project DeliveryRestricting communication

limits understanding

Limiting understanding undermines core assumption

Traditional approach conceals significant risk


Seeing New Possibilities


O A R

Change the observer


Ohno’s World


A Study in Production System Design


Round 1 - Rules

Purpose: To enable each person to have everyone’s e-mail address on one card

Cards start at first positionWrite your e-mail address legibly on each cardWhen all are complete, pass stack to the next personWhen you are done, go to end to pick up your card

then sit downRepeat until group is finished


Round 1 - MeasurementsTime to First Card Completed by GroupTime to Last Card Completed by Group

Also notice:Amount of time waiting to startAmount of time waiting for finished product


Round 2 - Rules

Purpose: To enable each person to have everyone’s e-mail address on one card

Cards start at first positionWrite your e-mail address legibly on each cardAfter you complete each card, pass it to the next

personWhen you are done, go to end to pick up your card then

return to your seat and sit downRepeat until group is finished© 2013 Dressman Benzinger LaVelle psc and The Boldt Company. All rights

reserved

Round 2 - Measurements

Time to First Card Completed by GroupTime to Last Card Completed by Group

Also notice:Amount of time waiting to startAmount of time waiting for finished product


Production System Design

Reliable WorkflowSingle Piece Flow vs. Batch & Queue

What else might we do to improve performance of production system?


O R

G A

N I

Z A

T I

O N O

P E

R A

T I N G

COMMERCIAL

ILPD as a Counter Measure


Collaborate;Really Collaborate

Networks ofCommitment

Tightly CoupleLearning w/ Action

OptimizeThe Whole

IncreaseRelatedness

Courtesy LCI

Five Big Ideas


OperatingSystemOrganization Commercial

Old

ILPD

Hierarchical

Siloed

Command & Control

CPM

Specialists

Parts

Lean

Sustainable

BIM

Collaborative

Flat

Consensus

Lump Sum

Low Price

Entrepreneurial

Collective

Best Value


Organization


Why? What? How?


Why?

What?

How?


Architect

Civil

StructuralMechanical

Electrical

Plumbing

LandscapeElevatorsInteriorParking

CM/GC

Site

SteelMechanical

Electrical

PlumbingLandscape

FramingFloor Cover

Painting

Owner

Geotech

MaterialsFood Service

Traffic

Medical Equip

PharmacyAdmin

OperationsDiagnostics


OwnerStakeholder

CM/GC’s PMA/E’s PM

Owner Rep

Core Group

Civil

Structural

Mechanical

ElectricalPlumbing

Site

Steel

Mechanical

ElectricalPlumbing

Framing

Landscape

LandscapeOther

Other

Integrated Project Delivery Team

Diagnostics

Material Mgt

Plant Operations

Admin

Food Service

Imaging


TVD Innovation TeamsM/E/P

Team Leaders

Structure

Landscape

Material Handling

Vertical Transp.

Site Improvements

Interior/ Finishes

Building Envelope


Co

mm

on

Un

derstan

din

g CM/GC Hired

Major Trades Hired

Pre-Construction Services

Architect Hired

Engineers Hired

≤100%

SD DD CD

Construction

Time

Owner

Traditional Level of Common Understanding


Time

Co

mm

on

Un

derstan

din

g

CM/GC Hired

Concept Design Implementation

Construction

Architect Hired

Engineers Hired

100%

Major Trades Hired

Pre-Construction Services

Valid.

Owner

ILPD Level of Common Understanding


Tools and Techniques


SETTING UP AN IPD SYSTEMCharacter

competency

Ability to collaborate

Begin team selection © 2013 Dressman Benzinger LaVelle psc and The Boldt Company. All rights

reserved

LEAN TOOLSOpen communication

Design in the Big Room – Project participants meet together for design.

Elimination of waste© 2013 Dressman Benzinger LaVelle psc and The Boldt Company. All rights reserved

LEAN TOOLS –RELIABLE COMMITMENTS

Relational contracting

Binding contractual obligation

Improved workflow results© 2013 Dressman Benzinger LaVelle psc and The Boldt Company. All rights reserved

LEAN TOOLS – PULL PLANNING

Reliable handoffs of work are critical

Pull planning removes waste

Last Planner System© 2013 Dressman Benzinger LaVelle psc and The Boldt Company. All rights reserved

LEAN TOOLS – SCHEDULING

Master Phase scheduling pull planning

Look-ahead planning

Weekly work plans

Planned percentage complete© 2013 Dressman Benzinger LaVelle psc and The Boldt Company. All rights reserved

A Study in Collaboration


Commercial Terms


Traditional Risk Management


Open-Face Risk Management


Fee

Salaried

Labor

General

Requirements

Co

st

of

Wo

rk


Fee


Lean Operating System - Design


Target Cost

Actual Cost

Planning & Programming

System Design

Detailing

Production

Allowable Cost

Business Case

In-Service Date

Functional Program

Allowable Cost

Expected Cost

Production Innovation


Concept Design ImplementationConstructionPre-Construction Services

Valid.

Planning & Programming

Design

Detailing

Production Plan

Levels of TVD


Defining Value


Desirability

Viability Feasibility

Change by Design


Expected Cost

Target Cost


Full-scale mock-up of new ED


Testing using case scenarios


viscous wall damper• ultimate reduction

in damping budget of $9m

steel structure• validation ~ 22psf

• current design ~ 20psf

• industry standard ~ 30psf

Optimizing systems


Optimized for construction• Attachment Bolts per VWD

• Previous 102 ~ 1-9/16 bolts• Current 36 ~ 1-9/16

66 ~ 1-3/16• Savings 2 man-day each


PROTOTYPE COST SAVING IDEAS


Lean Operating System - Production


Lean ProductionPlanning &

Control

Built-in Quality

Constraint

Removal

ProblemSolving


• Information• Access/

Space• Prior Work

(handoff)• External

Approvals

• Material• Equipment/Tools• Methods/Skills• Labor

Provide Worker Everything Needed to Succeed


Expectations

DesignOperations

Results

Reject

Work Inspect

BiQ

QA/QC


Produce Defect-Free Work


First Run Study


Managing Takt Through Visual Control


Daily Production Huddles


consensus docs: introduction to integrated project delivery in construction

Business

mail address

lean operating

card cards

position write

rights reserved

rules purpose

boldt company

start amount