operation mindshift corenet 08
DESCRIPTION
How trust-based teams using turnkey integrated design and construction to reduce cost, shorten schedules and remove conflict.TRANSCRIPT
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, GenslerMark Iammarino, Turner ConstructionRex Miller, mindshift
A new way of thinking about an old problem.
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.
Learning ObjectivesExplore and Explain:
• Broken Buildings and Busted Budgets* - the industry today.
• What is the mindshift?
• 4 Principles.
• 5 Keys to Alignment.
*Barry LePatner
Agile Race in an Institutional Buggy!
Silos
McDonough Holland & Allen PCAttorneys At Law
Adapted from:
“Buildings Leak at the Intersection of Contracts”
Adapted from: Todd Zabelle, Strategic Project Solutions
Hierarchal Delivery Model
Fielding a New Team Every Project
80% of the Cost is Brought in Late
McDonough Holland & Allen PCAttorneys At Law
Adapted from:
If Corollas were Design-Bid-Build?
Design-Bid-Build…It would cost: $44,000
and it would be• Late• Over budget• Value-engineered• Missing parts• and have
No warranty
Integrated…It would cost: $16,000
Waste in the System
Manufacturing Construction
12%
57%
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)
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.”
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 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
Principle 3: Built-In Sustainability
• 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.
Sustainable projects at no premium using integration.
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 Detection• Target Costing• Full Project Simulation• Off-site Fabrication• Life Cycle testing• Built-in Sustainable
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
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
Alignment 4: Off-Site Fabrication
• Structure• Interior Walls• Access Floors• Mechanical• Electrical• Plumbing• Concrete• Millwork• Bathrooms
Alignment 5: Performance Impact
Camino RoyaleMulti-Party Agreement
Early Business Model
Little BIM
IPD/Lean
• Off-Site Assembly
• Workplace Improvement
• Sustainability
$94M budget$9M Saved6 Months Reduced6 MEP RFIs37% of Contingency
Results:
Aardex Signature CenterVertical
Integration Early Business
Model
• Little BIM• IPD/Lean Assembly Business
Enhancement Sustainability
$20.5 million/$3 per sqft less than conventional
191,000 square feet
LEED Platinum
User Effective
50% Lower Operations
100% Leased
Results:
A Prescription for Success
MindshiftWiki Resource Site
Mindshift Project Assessment
Mindshift Project Delivery
Mindshift Consulting and Coaching
The Mindshift Cure
Stay Tuned for the Book
The Commercial Real Estate Revolution
Release August 2009 through John P. Wiley Publishing
The Mindshift Cure
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
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
Contact InformationRex Miller, Thought [email protected] Strombom, [email protected] Iammarino, VP/[email protected]
Website: www.mindshiftblog.comResource Site: www.mindshiftwiki.com