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
MANAGING CEUs AND CFM® MAINTENANCE POINTS
You are eligible to receive Continuing Education Units and Certified Facility
Manager® maintenance points for attending sessions at IFMA's World Workplace.
To receive 20 CFM maintenance points:
Record your attendance on your CFM Recertification Worksheet.
At recertification time, submit your completed CFM Recertification Worksheet.
To receive CEUs:
Pay the US$12 processing fee when you register for the conference.
Visit the CEU Kiosks at registration or log on to http://ceu.experientinc.com/WWC121 and pass a five-question assessment developed by the
speaker. CEUs can only be earned upon successful completion of the
assessment. Your transcript will be emailed to you.
Individuals seeking CEUs or LUs from other organizations must contact those
organizations for instructions on self-reporting credit hours.
Evaluate Sessions
Take Assessments & Log CEUs
(no more CEU codes)
Visit the registration kiosks
or go online at
http://ceu.experient-inc.com/WWC121
Meet Our Presenter(s):
Lisa Cooley, LEEP AP
Owner/Principal
Lisa Cooley Associates, LLC
Peter Cholakis
Chief Marketing Officer
4 Clicks Solutions, LLC
• Born- and-bred construction
industry veteran
• Expert in Job Order Contracting
and small projects solutions
• Passionate about evolving delivery
methods
• Career defining capital planning
and management solutions
• Expert on facility lifecycle and Total
Cost of Ownership
• Passionate about leveraging
technology to foster collaboration
Looking to the Past:
Fracturing of the Industry and its Results:
72% of projects over budget
70% of projects over schedule
5% of project costs spent in bidding
Owner
knowledge
gap
Designer
Builder
qualifications
based selection
Rex Miller, Commercial Real Estate Revolution
price
based selection
Adapted, HOK Architects
Supply Chain Barriers:
Builder 1
Subcontractors
Builder 2
Builder 3
Owner
Builder 4
PROJECT
Builder
5
Technology Barriers
Technology Barriers
Owner
AE
Contractor
Subs
Technology Barriers– Speed vs. Flexibility
Owner
!!
?
?
!!!!
AE
?@#!*
?
Contractor
Subs
?
Technology Barriers
Flexibility
Cloud
Computing
Excel
Spreadsheets
Relational Database
Collaboration
13
Catalysts of Change
14
Environmental:
1. Recognition of building’s role in climate change
2. Challenge of meeting rising Energy Needs and paying for it
3. Government mandates
15
Altered
Economic
Landscape
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”
16
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
17
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
18
19
Disruptive Technologies:
BIM
Cloud Computing
A disruptive technology changes/overturns traditional business methods and practices.
=
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.
20
BIM – The “Simple Definition”
BIM is the life-cycle management of the built environment supported by digital
technology.
(adapted from NIBS)
21
People
OWNERS
SUBCONTRACT
ORS
Information
BIM
&
Cloud
Computing
CONTRACT
ORS
AE’s
Process
Cloud Computing
23
Convergence
Carbon
Footprint
Flat World
Economy
Constrained
Capital Dollars
Refocus on
O&M
Altered
Economic
Landscape
New Project
Delivery
Methods to Meet
New Demands
Altered
Environmental
Landscape
Government
Mandates
Disruptive
Technology
24
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
25
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 performancebased measures
From Scherer Construction, www.scherercfl.com
26
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
27
Integrated Project Delivery
Est. Max Price
Actual Cost
Owner
Cost
Savings
Cost of the Work
Target Cost
Shared
Contingency
• 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
Savings
$$$
Incentive
Pool
28
29
JOC
DBB
IPD
30
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
31
Shorter Project Timelines
32
Advantages of JOC for Owners
• 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.
33
How OWNERS Use JOC & Technology








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.
Programming Estimate
Estimates from Each Design Stage
Final Detailed Cost Estimate
Initial Contractor Proposals
Technically Evaluated Proposals
Final Revised Contractor Proposals
Modifications & Changes Orders
34
Job Order Contracting
Case Study
JOC in place since 1999
Completing $2.5-$3m annually
Average project size about $20,000
Starbucks
$208,841
Coordination of university requirements with
concessionaire
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
Bio Safety Level 3 Laboratory
$443,650
Rapid deployment of grant funds for antiterrorism research
35
Public Private Partnerships
• Finds fullest expression as Design-Build-Own-Operate
• Takes advantage of the same team innovations as DesignBuild 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.
36
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
37
Process
38
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
39
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
40
41
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
A Common Language
MasterFormat2010, Uniformat II – Reference
Cost Databases (aka RSMeans)
COBIE, OMNICLASS
IFC
Metrics: FCI, SCI, Cost/GSF,
Cost/NSF, Utilization Rates, ….
43
“Facebook” for the Built Environment 1
Project Collaboration
Real Time Collaboration via Web Meetings
“Facebook” for the Built Environment 2
Crystal Ball:
What does the future hold?
ce
construction
1.
2.
Christian and Pandaya, 1997. C
Prediction of Facilities.
NIBS 1998. Excellence in Facilit
Managment
49
Crystal Ball:
What does the future hold?
Increased worker productivity
Performance
Specs
Compensation
Structure
Healthcare outcomes
construction
Sophisticated
Data Analysis
Increased energy efficiency
Educational outcomes
50
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
51
Thank You!
For attending this
educational offering at
IFMA’s World Workplace.
Be sure to evaluate the session at
the registration kiosk or online at
http://ceu.experient-inc.com/WWC121