Integrated Project Delivery: Executing Your First IPD Project · 2019. 5. 23. · Victor O. Schinnerer & Company, Inc. │Large Firm Conference Howard Ashcraft, Partner at Hanson

Victor O. Schinnerer & Company, Inc. │Large Firm Conference

Howard Ashcraft, Partner at Hanson Bridgett and Adjunct Professor, Stanford University

Integrated Project Delivery: Executing Your First Project

Victor O. Schinnerer & Company, Inc. │Large Firm Conference 1May 20, 2019


The Pitch

• $500 Million revenue over 4 years

• 12 Divisions– Each with executive with differing bonus goals

• No CEO

• No CFO

• No Executive Committee

• No Board of Directors

• And we have never worked together

2May 20, 2019


Remember Design Build?

• With Great Responsibility Comes Great Power

• If you aren’t responsible for outcome, you are not a player.

• IPD is a second chance for designers to be relevant and have a seat at the table.

3May 20, 2019


Are You Right for IPD?

• Collaborative?

• Project Leadership?– Facilitator– Cost Controls– Schedule Controls– Pulled Workflows

• Addicted to utilization?

• Unwilling to co-locate?

4May 20, 2019


Workflow• Lean

– Work to pull- Not what you want to do, what they need

– Flow before utilization- Small batches, continuous flow

– Colocation- Doing real work, together- Not charrette on steroids

– Culture- Reliability- No studio

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Is the Team Right for IPD?

• Engaged

• Collaborative

• Competent

• Committed • Collaborative

• Competent

• Transparent

• Respectful

6May 20, 2019

Owner

Builders


Is the Project Right for IPD?

• Ambition– High Performance Project

• Challenges– Cost, Schedule, Technical

• Clarity– Affects Target Cost Timing

• Probability of change

• Interdependencies– Systems– Organizations

7May 20, 2019


Project Types

• Healthcare

• Universities

• Laboratories

• Manufacturing

• Commercial

• Non-critical Nuclear

• Biopharmaceutical

• Software

• K-12 Educational

• Net Zero Energy

• Mixed Use

• Hospitality

• Amusement Parks

• Semiconductor Mfg.

• First Responder

• Financial Services

• Transportation/Heavy Civil/Water/Wastewater (International)

8


IPD is a Cocktail

9May 20, 2019

• Structure• Environment• Operating System• Technology


High Performance Project

• Buildable– Can be efficiently constructed within budget

• Usable– Meets the needs of sponsors and stakeholders

• Operable– Can be easily maintained and operated

• Sustainable– Spares Resources, Preserves Environment


HighPerformance

Project

IntegratedBuildingSystems

IntegratedProcesses

IntegratedOrganization

IntegratedInformation

PerformanceMetrics

ProductionManagement

Integrated ConcurrentEngineering

SimulationVisualization

Integration Agreement

Integrated Project DeliveryA Simple Framework

Fischer, Ashcraft, Reed & Khanzode 2017


Fischer, Ashcraft, Reed & Khanzode (2017)


Owner

Consultant

Team

Variable


Negotiation Keys

• What is included in “Chargeable Costs?”– Direct Costs– Overhead

• What is the Risk/Reward Program?

• How is Target Cost validated?

• How is cashflow managed?

• What risks are waived?

• What risks are reserved?

• What is the insurance plan?

14May 20, 2019

Finance Liability

Governance• How are decisions made?

• How are decisions contested?


Simple Risk/Reward

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Value/Cost Risk Reward Model

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Neutral Zone

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Project Structure

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Multiparty (3 Parties) Polyparty


Governance

19May 20, 2019

• Tiered– Senior Management Team– Project Management Team– Cross-Functional Teams

- ”Clusters” ”Project Implementation Teams”

• Voting– Owner 1/3 of votes– Owner’s Override that can

trigger a change order


Insurance• Traditional

– Normal for all parties

• Hybrid– OCIP/CCIP– Traditional Professional Liability

• Integrated (Single or Multiple Policies)– Project Specific Professional Liability

- Rectification/Mitigation?- Insured v. Insured Exclusion- Project Policy Exclusion

– OCIP/CCIP

20May 20, 2019


Traditional and Relational…and some implications

Attribute Traditional Relational

Enforcement of Promises External Adjudication Internal Adjustment

Definition of Success Compliance Satisfaction

Project Organization Segregated/Sequential Integrated/Concurrent

Decision Authority Hierarchical Distributed

Contract Provisions Prescriptive Enabling

Communication System Channeled Networked

Risk Allocation Assigned Shared

Accountability Audit Transparency

Victor O. Schinnerer & Company, Inc. │Large Firm Conference 22May 20, 2019


And Remember…

23May 20, 2019


Resources

• Integrating Project Delivery, Fischer, et al., (Wiley 2017)

• Integrated Project Delivery: An Updated Working Definition (AIACC 2014)

• Integrated Project Delivery: An Action Guide for Leaders (Pankow, CIDCI, IPDA 2018)

• Target Value Design (LCI)

• Target Value Delivery (LCI)

• This is Lean, Modig & Åhlstrom (Thisislean.com)

24May 20, 2019

Documents

Integrated Project Delivery: Executing Your First IPD Project · 2019. 5. 23. · Victor O. Schinnerer & Company, Inc. │Large Firm Conference Howard Ashcraft, Partner at Hanson