Integrating Project Teams CMAA

Transcription

1 Integrating Project Teams in Conservative Procurement Environments CMAA 2009 National Conference & Trade Show Orlando, Florida

2 Speakers Robert Fraga, AIA, FCMAA Director, Office of Contracting, Smithsonian Institution George Lea, JR., P.E., CCM, CMAA Chief, Military Branch Engineering and Construction U. S. Corps of Engineers Sidney J. Sanders Vice President, Facilities and Construction The Methodist Hospital System, Houston Texas Charles B. Thomsen, FAIA FCMAA President CTI

3 Scheduling Inspection Estimating PMAC Supplier Supplier Supplier Supplier Supplier Supplier Supplier Supplier Supplier Supplier Supplier Supplier Supplier Supplier Supplier Supplier Supplier Supplier Supplier Supplier Supplier Supplier Supplier Supplier Supplier Supplier Cost Consultant Life Safety Consultant Hardware Consultan Testing & Inspection Civil Engineer Sanitary Engineer Structural Engineer Mechanica l Engineer Graphics & Signage Interiors Architect Parking Consultant Network Consultant Electrical Engineer Security Consultant Traffic Engineer Roofing Consultant Acoustical Consultant Kitchen Consultant Food Service Geo Tech Consultant Audio Visual Permitting, regulation & entitlement Owner s PM CM/GC Architect PM Soil Treatment Millwork HVAC Fire Stopping Clean Up Masonry Hauling Erosion Control Fencing Sprinklers Curtainwall Flooring Demolition Formwork Clearing & Striping Reinforcin g Concrete Grading & Excavation Plumbing Electrical Fire Protection Misc. Iron & Steel Sheetmeta l Curtainwall Casework Ornamental Iron Vacuum Systems Painting Roof Hatches Carpeting Electrical Rough Framing Skylights Stucco & Plaster Casework Glass & Glazing Drywall Flagpoles Fire Protection Finish Carpentry Tile Insulation Curtains & Blinds Counter Tops Building Specialties Paving Roofing Metal Fabrications Acoustical Tile R. O. Water Overhead Doors Kitchen Equipment Wall Coverings Flashing & Sealants Toilet Accessories Ductwork Doors & Frames Board CEO Director Facilities Executives Executives Accounting Legal Standards Estimating QC Program

4 Work Processes Differ Design is decision intensive and iterative with no limit to the effort that can be spent on refinement. Many improvements require doubling back to change. Construction is production intensive with defined needs for the resources of time, labor and materials. It is linear and sequential and can be managed logically.

5 Common Themes of Integration Legal relationships among the team Agreement to constrain litigation Management committees Shared risks and rewards Collaboration software: BIM and PMIS Design assist

6 Common Themes 1. Legal Relationships Partnering Separate design and construction contracts Multi-party contract Joint Venture LLC or other legal entity Collaborative selection Constraints on litigation

7 Partnering In 1427, when Brunelleschi was constructing the Cathedral in Florence, tensions became so great among the artisans that they were made to take an oath to forgive injuries, lay down all hatred, entirely free themselves of any faction and bias, and to attend only to the good and the honor and the greatness of the Republic, forgetting all offences

8 Constraints on Litigation Agreement not to sue except for willful misconduct or egregious mischief (questionable enforceability) Management committee and executive committee resolution Third party neutral Mediation (binding or non-binding)

9 Legal Relationships Design-Bid-Build Prime contracts with the Owner Liability: Independent, compartmented responsibility, liability and finger pointing PM Owner AE Taxes: Independent tax responsibility S U GC B Consultants S Administrative cost: No increase Culture: Traditional tensions Integration can be improved with shared incentive clauses, management committees and dispute resolution procedures.

10 Legal Relationships Multi-Party One contract signed by owner and with each core team member Liability: Allocated risk and responsibility with defined obligations to one another. Possible third party joint and several liability. MEP Sub Skin Sub Owner Architect Engineer Taxes: Independent tax responsibility Administrative cost: a management committee Contractor CM Consultant Culture: Shared incentive pool and collaborative leadership Can employ all the common themes

11 Legal Relationships Joint Venture Partners may guarantee costs and services to the JV and share profits or losses Liability: a partnership with joint and several responsibility; partners define responsibility to one another; liability to third parties is shared Owner JV Taxes: JV must file; no tax due if all profits distributed AE CM/GC Administrative cost: minimal increase for JV accounting and tax preparation Consultants Subs Culture: Strong incentives to help one another Can employ all the common themes

12 Legal Relationships Limited Liability Corporation Prime contracts with each core team member (traditional concept) Liability: LLC provides protection to members; wise owner will require corporate guarantees; third parties may pierce corporate veil Owner Taxes: LLC profits are taxed if not distributed to shareholders; state franchise taxes Consultants AE LLC CM/GC Subs Administrative cost: More accounting, more filing Culture: Shareholders bill at cost, share profits, pull together Can employ all the common themes

13 Legal Relationships Typical Methodist Hospital Contract Methodist PM Team AE CM/GC Consultants Consultants Consultants Subs Subs Subs

14 Legal Relationships Government Separation of Duties REQUIREMENTS CONTRACTING FUNDING CONTRACTOR Most government agencies have a separation of duties to avoid fraud, waste and abuse. Funding, requirements and contracting are separated. Contracting officers have a fiduciary responsibility for contract management that can t be shared or delegated to non-government entities. This inhibits many innovative legal relationships between members of the project team and the government.

15 Legal Relationships Risk at the Smithsonian (2 step) Risk selected (qualifications, price and GMP for Phase I (GMP can be competitive or determined by the owner ) DESIGN $ CONSTRUCTION AE selected Fixed price or GMP finalized Phase I - Preconstruction service: estimates, schedules, constructibility and VE reviews; solicits input from prequalified subcontractors Phase II Construction Service: Builds the facility based on the negotiated fixed price or cost-plus a GMP

16 Legal Relationships Risk at the USACE Early Contractor Involvement (Integrated Design Bid Build) Solicit & award ECI Contract Contractor selected (qualifications, target, profit adjustment and ceiling price) Design phase fee negotiated, may include shared savings clause Contractor collaborates with USACE, owner and designer to align scope, budget and schedule DESIGN CONSTRUCTION Programming documents done Project approvals done AE selected (Brooks Bill or in-house) FFP (Firm Fixed Price) negotiated or FPIS (Firm Price Incentives Successive) or T for C (Terminate for Convenience ECI (Early contractor involvement) is the USACE approach to integration.

17 Legal Relationships U.S. Army Corps of Engineers No law or regulation prevents an environment of collaboration. Executive Order (EO)13423, Sustainability, Guiding Principles: Use a collaborative, integrated planning and design process.. The public challenge is getting the entire team on board early. The burden of distributing risk equally and creating incentives or rewards falls on the owner. Leadership creates the culture of a project, a contract can t enforce what is not there.

18 Legal Relationships Military Transformation Innovation and success in collaboration Modular construction Pre-cast concrete panels Thin-brick application Wood-frame construction Performance specifications Design-Build (industry two-step) ECI (Early Contractor Involvement), Collaboration/Partnering Design Team Meeting Award Fee program Stipends

19 Legal Relationships NGA Campus Belvoir Hospital Lewis and Clark Center

20 Common Themes 2. Management Committees Core team members with significant stake in the outcome Owner participation Consensus (not unanimous) decisions Sustainable partnering

21 Management Committees Staff to Staff, Brass to Brass Top Management Top Management Middle Management Middle Management Project Management Project Management

22 Management Committees Collaborative Team Selection OWNER ARCH CM ENG SUB SUB

23 Management Committees Management Teams Owner PM AE CM Global Push scheduling Design Assist Team Granular Pull scheduling Field Coordination Team Meets weekly to coordinate design and documents Team does clash detection Meets weekly to plan and coordinate work to be installed Focus is on short term: 2 to 4 weeks

24 Management Committees Risk Transfer Shared and allocated risks and rewards Project Performance No risk transfer No accountability Risk transfer Complete risk transfer No collaboration

25 Management Committees Leadership Integrated leadership occurs through: project management plans communication strategies change management boards issue resolution processes partnering sessions daily, weekly, monthly and quarterly project and program reviews Our strength is that we write the plan and hold the meetings. Our weakness: do we always have the right players at the table?

26 Common Themes 3. INCENTIVE POOLS Cost goals Absolute goals Contingencies Satisfaction fees The biggest incentive: repeat work

27 Incentive Pools Incentives FARS permit Incentive Fees ( ) Public sector is reluctant : Conservative culture Funding request process (justification) Administrative burden (incentive fee payouts) Attitude ( Why pay extra for something I m supposed to get anyway? )

28 Incentive Pools Actions and Reactions Goal: design excellence Pressure: decrease cost Pressure: increase budget AE Incentive: shared savings CM Incentives can create opposing forces and unbalance goals. They work best when applied to the team proportional to their contribution and risks. In the public sector, they must be measurable.

29 Incentive Pools Many Kinds of Incentives Shared savings Performance awards (schedule, safety, HUB requirements, sustainability, etc.) Reducing and or sharing risks (increasing profits) Pride and reputation Repeat business

30 Incentive Pools Many Kinds of Incentives Award fee and/or incentive fee contracts used sporadically Often use depends on the project team, requires a champion Funded with project funds, not always available Often used where risk is unknown or imbalanced Sends a clear message about what is important Shared savings from one contract or unearned award fees can t be passed along to another. Contractor may only earn the amount in the contract. Requires an award fee evaluation plan An evaluation board determines payout Best when measured objectively

31 Common Themes 4. Collaboration Software The Internet PMIS BIM Traditional Web based

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35 Collaboration Software Phases of BIM 1. 3D tool for design and standards 2. Design team integration (MEP, structural, etc.) 3. Shop drawings integration 4. Supply chain integration 5. Virtual construction: Clash detection and construction analysis (4D and 5D)

36 Incentive Pools Sugar Land Hospital Expansion 900 sheets of non-integrated documents 2000 RFIs 300 technical bulletins 650 submittals

37 Collaboration Software at USACE Many choices, typically owner driven Typical Corps projects will use: Bentley and Autodesk Project wise DR Checks Resident management system (RMS) Primavera P3 RFP wizard (pre-award tool) BIM is the future in the Corps Aggressively working with Industry on interoperability issues Tendency to exclude team members not working the phase of the project because they have moved on to other work

38 Common Themes 5. Design Assist Maintain competitive pricing Manage shift from traditional roles Select subs with Design Assist capability Define the appropriate Design Assist strategy

39 Design Assist Space and FF&E requirements Concept design Concept design Construction Drawings Bid Manufacture Fabrication Drawings Field Construction Program SD DD CD Redundant Drawings $ Shop Dwgs Fabrication Construction

40 Design Assist Limitations of Typical Risk Information needed earlier in project conceptualization Critical technical knowledge, cost and creativity in subcontractors and manufacturers Procurement below the CM-R tends to be design-bidbuild (slowest & least innovative procurement) Key parts of project redrawn in shop drawing process by subcontractors and manufacturers

41 Design Assist Desired areas of integration Selection of Construction Manager Cost Curve PROGRAM INFLUENCE LEVEL PRELIM. DESIGN FINAL DESIGN BUY-OUT PROJECT EXPENDITURES CONSTRUCTION FURN./ COMM. PROJECT LIFE CYCLE Influence Curve

42 Design Assist One-line Duct Layout

43 Design Assist HVAC and Plumbing with Structure

44 Design Assist Pull Fabrication and Assembly

45 Design Assist Sheetmetal Fabrication

46 Design Assist Ductwork Loaded on Shipping Carts

47 Design Assist Shipping Carts w/ Ductwork at Job Site

48 Design Assist Ductwork Installed

49 Design Assist Prefab Plumbing for Ganged Fixtures

50 Design Assist Sink Assemblies

51 Design Assist Prefab Copper Plumbing Assemblies

52 Design Assist Prefab Cast Iron Plumbing Assemblies

53 Design Assist Methodist Hospital Research Building Mechanical Floor 3D Model Actual Installation

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56 Common Themes of Integration Legal relationships among the team Agreement to constrain litigation Management committees Shared risks and rewards Collaboration software: BIM and PMIS Design assist