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INTEGRATED

PROJECT

DELIVERYIPD For Facility Professionals

THE PANEL

Doug Kitlar – GEF Seniors Housing

Pete Wardell – Chandos Construction

Jonathan Rockliff – Rockliff Pierzchajlo Kroman Architects Ltd.

Bert de Bruin – AltaPro Electric Ltd.

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IPD FROM AN OWNER’S PERSPECTIVE

Doug Kitlar, Director of Facility Management

GEF Seniors Housing

GEF Seniors Housing

• Who is GEF

• Why we are building new buildings

• Past construction projects

• Why and how GEF chose IPD

• How did GEF choose the IPD team

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• Greater Edmonton Foundation established as a management body in 1959

• Not for Profit – Registered Charity

• Overall Budget - $42 million

About Us

Our Vision

Positively influencing seniors’ quality of life

Our Mission

Leaders in friendly, affordable, secure housing and services for seniors

Our Values

Respect IntegrityWell BeingAccountability

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Who We Serve

• Supportive and independent living for lower income seniors

• Home to approximately 3,500 senior citizens

• Over 800 on the wait list at any given time

• 27 Independent living buildings (Apartments)

• 10 Supportive living accommodations (Lodges)

• 2 Affordable housing complex rented at 10% to 15% below market

• 2 locations with duplex homes

• Total of 3,473 units

• Over 2.5 million square feet

Portfolio

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GEF Construction Projects(back at the turn of the century)

McQueen Place LodgeRosslyn Place Lodge

Ottewell Place Lodge

GEF Construction Projects(recent years)

Ottewell TerraceRosslyn Terrace

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GEF Construction Projects(current)

Sakaw Terrace

GEF Future Projects

Elmwood

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Why Did GEF Choose IPD?Aligns with GEF Values

• Higher level of owner engagement

• Higher level of involvement of trades at design

• Full transparency of costs and profits

• Lean methodologies

• Greater accountability

• Value

Selecting a Team

The Sakaw story

• Began as DBB

• Decided to change to IPD after DP (almost too

late)

• The RFP process (for builder team)

• The Contract (no standard Canadian template)

Next project, Elmwood – Two Phases

• Functional programming/schematic/budget

then

• IPD – c/w Bridging Agreement (assuming IPD is

the format for this project)

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Owner Risks and Commitment

If the Profit is gone……

• Owner continues to pay all costs

Team selection

• Same as any project, the team makes or

breaks it

Time

• Full time commitment

• Owner’s requirements

FM Wins

Early Involvement

• Project Implementation Teams

• Detailed input from FM team

“Wish List”

• FM focused or program focused

• Funded from savings

BIM

• Ownership and understanding of the model

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Questions ?

IPD FROM THE GENERAL CONTRACTOR

Pete Wardell, Director of Business Development

Chandos Construction

Chandos Construction

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Discussions

• Construction Productivity & Delivery Methods – The Connection

• The IPD Deal – Pain Share & Gain Share to Create Alignment

• The Value in Facilities Management being Engaged Early in Design

Construction vs all other industries labour productivity

since 1964

Source: US Dept. of Commerce/Bureau of Labour

statistics

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Owner

Architect

Mechanical Consultant

Electrical Consultant

Structural Consultant

Contractor

Mechanical Trade

Electrical Trade

Drywall Trade

Traditional DBB/TENDER/BID Model

Owner

GeneralContractor

Architect

StructuralConsultant

ElectricalTrade

MechanicalConsultant

ElectricalConsultant

StructuralTrade

MechanicalTrade

The ProjectGoalsValues

Sub Contractors

and Suppliers

Sub Consultants

IPD Model

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$11.0 MTarget Price

profit

costs

Electrical Engineer

Mechanical Engineer

Structural Engineer

Prime Consultant

Electrical Trade

Mechanical Trade

Drywall Trade

Curtain Wall Trade

Roofing Trade

Cladding Trade

Structural Steel Trade

Prime Contractor

100%

100%

The Deal – The Financial Structure

Scenario 1 – The Project Costs What Was Budgeted

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$11.0 MTarget Price

profit

costs

profit

costs

Electrical Engineer

Mechanical Engineer

Structural Engineer

Prime Consultant

Electrical Trade

Mechanical Trade

Drywall Trade

Curtain Wall Trade

Roofing Trade

Cladding Trade

Structural Steel Trade

Prime Contractor

100%

less than 100%

Scenario 2 – The Project Costs MORE Than Budgeted

$11.0 M

profit

costs

10.5 M

Electrical Engineer

Mechanical Engineer

Structural Engineer

Prime Consultant

Electrical Trade

Mechanical Trade

Drywall Trade

Curtain Wall Trade

Roofing Trade

Cladding Trade

Structural Steel Trade

Prime Contractor

100%

more than 100%profit

profit

costs costs

Scenario 3 – The Project Costs LESS Than Budgeted

Target Price

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$11.0 MTarget Price

profit$10.5 M

$11.5 M

Electrical Engineer

Mechanical Engineer

Structural Engineer

Prime Consultant

Electrical Trade

Mechanical Trade

Drywall Trade

Curtain Wall Trade

Roofing Trade

Cladding Trade

Structural Steel Trade

Prime Contractor

0%

100%

costs costs costscosts

profit

profit

Scenario 4 – The Project Costs A LOT MORE Than Budgeted

Building Life Cycle Costs & Argument for

Early Engagement of FM

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Design Cost

Construction Cost

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Operations, Maintenance & Staff Costs

cost effectiveness / performance to budgetenvironmental impact - sustainabilityenergy usemaintenance costs

improved enterprise outcomesefficiencyproductivity (construction workers and end users)worker satisfactionhealthfit to useflexibilityReturn on Investmentcontext / community

beauty

Design Decisions That Influence What We End Up Constructing

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cost effectiveness / performance to budgetefficiency (construction)productivity (construction)

Only a Few Design Decisions Occur in Construction….

improved enterprise outcomesROIenergy useenvironmental (sustainable) impactmaintenance costsuser satisfactionproductivity (users)user healthfit to useflexibilitycontext / communitybeauty

cost effectiveness / performance to budgetefficiency (construction)productivity (construction)embodied energy

…The Majority of Design Decisions are Realized only After Occupany

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improved enterprise outcomesROIenergy useenvironmental (sustainable) impactmaintenance costsuser satisfactionproductivity (users)user healthfit to useflexibilitycontext / communitybeauty

cost effectiveness / performance to budgetefficiency (construction)productivity (construction)embodied energy

ALL Of The Outcomes Of These Decisions Are Established Early in Design

Value Generated by the Enterprise Activity

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VITAL To Ensure Our Designs Are Best Possible Fits For Purpose

what drives our designs only really

begins to be realized after

occupancy

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St. Joseph High School

LEAN IPD TRADITIONAL

$35 M Project $35 M Project

$32.6 M

4 months to certainty (validated cost)

9 months to certainty (tender)

6 months to construction start 10 months to construction start

$500,000 to certainty $1.8 M to certainty

26 months to occupancy 34 months to occupancy

Profit defined and at risk Profit hidden and fought for

Shared risk / reward Risk avoided / blame others

Incentive to do a great projectIncentive to protect fee, do no more than required

No RFI’s Lots of RFI’s

1 Change Order Lots of Change Orders

IPD Wins

Adding in Wish List Items - RDCRS

• LED Lights

• High-end Mechanical System

• Commercial Kitchen

• Asphalt path

• Cosmetology lab

• Maintenance Garage

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Questions ?

IPD from

an architect’s perspective

Jonathan Rockliff, Principal, Architect AAA

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IPD - What is it?

• We had heard about it

• We were open to an opportunity

• Pre-existing relationships helped

• In the end it did take a leap of faith

Getting started

• Getting started took some time

• How to manage information and communication

• Co-location set up

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• Preparing and signing the poly-party contract

• Building trust, common values and working towards

a common goal

• Change is hard

The contract

• No standard form of contract

• Determining hourly rates without profit

• Determining profit

• Risk and reward

• Agreeing on a 417 page contract takes some effort

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• The vote

• Professional liability

• CCDC working on standard contract (CCDC30)

Co-location

• Working together in one space

• Transitioned from office space to site trailer

• Two days a week everyone co-locates

• Scheduled and unscheduled discussions

• Very intense

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Leadership &

project

management• Project Implementation

Teams (PITs)

• Senior Management

Team (SMT)

• Project Management

Team (PMT)

• Architect needs to

relinquish some of their

role as the Prime

Consultant

What have we learned?

• It takes more time

and effort

• Architectural fees are

subject to the Lien

Holdback

• BIM is an essential

tool with a cloud

based virtual model

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• We have more resources to

draw from

• Target Value Design,

designing to a budget to

provide the best value to

the owner

How has IPD

impacted the

building

design?• Changes were difficult to

make since there was an

approved development

permit

• Relocation of the Combined

Heat Power (CHP)

• Steel structure coordination

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How will we

approach

future

projects?• Earlier involvement of the

entire IPD team

• Consider the design and

detailing a little more

closely before permit

applications

• Utilize the knowledge gained

and apply it to future projects

• Apply processes and

procedures to non-IPD

projects

• Think more creatively about

the smaller details

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How can you learn more

about IPD?

• Integrated Project Delivery Alliance (www.ipda.ca)

• Call or email one of the presenters

Questions ?

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BERT DEBRUIN

VALUE OF LEAN

� Eliminate Waste

� Improve Productivity

� Improve Quality

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IMPLEMENTING LEAN DESIGN and

CONSTRUCTION

� Lean People

� Lean Processes

� Lean Sites

IMPLEMENTING LEAN DESIGN and

CONSTRUCTION

� Lean People

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IMPLEMENTING LEAN DESIGN and

CONSTRUCTION

� Lean Processes

IMPLEMENTING LEAN DESIGN and

CONSTRUCTION

� Lean Sites

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PREFABRICATION & PRODUCTIVITY

� Internal

� Training

� Planning

� External

� Financial

PREFABRICATION & PRODUCTIVITYIN

TE

RN

AL

• Increased Quality Assurance & Control in the shop

• Controlled inside Environment (Not Affected By Site

Conditions)

• Control waste and recycling at early stages

• Improvement to Daily Productivity through repetitive tasks

• Drives project Pre-Planning and Organized Task

assignments

• Safer work environment

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PREFABRICATION & PRODUCTIVITY

TR

AIN

TIN

G

• Improvement to productivity through repetitive tasks

• Provides one on one training venue for new employees

• New hires are closely trained and pre-screened for sites

• Less on site time is required for apprentice training

• More foreman time available for inter-scope coordination

• Builds quality tradespersons with life long skills

PREFABRICATION & PRODUCTIVITYP

LA

NN

ING

• Daily review of productivity is available for planning the

next tasks

• Immediate awareness to issues creating lower

productivity

• More accurate forecasting of needed manpower

• Reduces the need for labor peaks on sites

• All changes are captured to the drawings immediately

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PREFABRICATION & PRODUCTIVITY

EX

TE

RN

AL

• Increased Quality Assurance & Control

• Just In Time Deliveries reduce laydown areas on site

• Less packaging sent to site

• Less waste (Supports LEED initiatives)

• Improvement to productivity

• Continues to drive project pre-planning and organized

task assignments

• Steady work force can be planned for sites

PREFABRICATION & PRODUCTIVITYF

INA

NC

IAL

• Less workers on site means equals less site orientations

• Less workers means less cost for tools, washrooms, etc.

• Contractors can be more competitive in their bids

• Contractor can realize a higher profit due to higher

productivity

• Completing projects sooner opens up the plate for more

projects

• Owner is open for business sooner to turn a profit.

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BENEFITS OF TRADES COLOCATION

�Quicker Turnaround

� Promotes Lean

Thinking

� Project Awareness vs.

Scope Awareness

THANK YOU!