a publication of Skender conStruction iSSue 003 § June 2013

creating a Unified cUltUre BUilding commUnity

throUgh collaBoration

mentoring the next generation

of leaders: chicago scholars

new energy code: what it means

for tenants

elevating the indUstry

elevation

ELEVATION is a publication of Skender Construction.

editorial:Afshan Barshan, Justin Brown, Clayton Edwards, Andrew MacGregor, Joseph Skender, Mark Skender, Stephanie Sulcer

art direction:Froeter Design Company

contributing authorS: Creating A Unified Culture written by pamela dittmer Mckuen

Building Community Through Collaboration written by pamela dittmer Mckuen

New Energy Code: What It Means for Tenants written by chris tapas, p.e.

ELEVATION | 1

creating a Unified cUltUreACCO Brands Corporation needed a new headquarters for 450 employees and executives. But creating a collaborative environment and culture meant tearing down walls.

four 11

20 22

17

new energy code: what it means for tenants Tenants get ready: Illinois is the third state to adopt the 2012 International Energy Conservation Code. Chicago is expected to confirm its compliance with the code in the first half of 2013.

elevating the indUstry Contractual relationships might support collaboration, but traditional behavior and top-down management is rooted in the construction industry. What does it take to really collaborate?

mentoring the next generation of leaders: chicago scholarsSince 1996, Chicago Scholars has helped 2,500 high school students succeed in their academic careers through mentorship. Skender Foundation’s annual event, Summer Eclipse, will highlight and help raise funds for the organization.

BUilding commUnity throUgh collaBoration The construction of All Saints Residence blended economic opportunity with upfront communication, education, community outreach and innovative project management.

2 | ELEVATION

DEAR READER,

collaboration is becoming a buzzword in construction. it’s a soft word

that makes us feel good. but true collaboration to achieve a diffi cult

goal is anything but easy. it requires calling people out when they’re

not performing for the greater good. other times, it demands giving up

authority and accepting that your subordinates, subcontractors, and

partners possess the expertise—not you.

one of the products that built the global company acco brands

corporation is the paperclip. paperclips are so simple, their classic

design hasn’t changed since 1867. two wire loops with the right

amount of torsion are enough to do the job.

one of the by-products of our business is the creation of contracts.

often language in contracts tries to stipulate and enforce collaboration.

more times than not, we execute a contract and place it in the fi ling

cabinet. i can tell you the only thing that can create an environment

for collaboration is people—not paper. collaboration starts with eye

contact, a handshake and a sincere commitment from each individual

to fulfi ll their responsibility. not only does each individual need to have

this internal sense of personal responsibility, they have to know and

trust that each team member feels the same way. this sounds very

simple, but an organization has to work hard to create an environment

that fosters the right amount of entrepreneurial spirit and team unity

to make things happen.

teamwork lives inside of the team and it’s out there on the jobsite.

aligning and empowering people so they take ownership in their work

is really what it takes to get the job done. true collaboration means

people walk away feeling they created something great in the process.

when the right environment is created, i believe collaboration can be

as simple as a paperclip.

Joseph skender president, skender construction

creatingAUnifiedCuLTuRE

ELEVATION | 5

his spring ACCO Brands moved into a completely renovated 189,000-square-foot building in the Kemper Lakes Business Center in northwest suburban Lake Zurich. Getting there took the efforts of a dedicated team, intensive preconstruction planning and innovative project management primarily focused on technology.

“Transformational” is how ACCO vice president of global strategic initiatives Michael Molinaro described the newly appointed workplace.

ACCO, whose name is derived from an acronym used by the former “American Clip Company,” started preparing for the move about two and a half years ago. The company had been located in Lincolnshire for about 17 years at that point, and its lease was ending April 30, 2013. Molinaro’s first step was to partner with Cushman & Wakefield (C&W) in Chicago to locate a suitable property and later to serve as the owner’s representative during the renovation. The C&W team included Lou Hall, real estate broker; James Brannan, senior project manager; and Tom Fioretti, managing director, Midwest Region. “When ACCO signed the new lease in December 2011, it was the largest suburban office deal that year and one of the largest deals in the Chicago metropolitan area,” said Hall.

The building is an L-shaped, circa 1980s structure with three stories and a volume atrium entrance. Because it had been occupied by multiple tenants rather than a single tenant, much of the square footage was broken down into smaller, enclosed spaces. ACCO engaged architectural firm Harley Ellis Devereaux (HED) to re-design the interior and Skender to build it.

pROJECT FOCuS

For ACCo BrAnds CorporAtion, Building A CollABorAtive Culture meAnt teAring down wAlls. the world’s lArgest supplier oF BrAnded oFFiCe produCts plACed A tAll order on the design And ConstruCtion teAm: the new heAdquArters needed to Be more thAn An AttrACtive oFFiCe environment For 450 employees And exeCutives. it Also hAd to ChAnge the wAy the CompAny ConduCts Business. As iF thAt wAsn’t enough oF A ChAllenge, the joB hAd to Be Completed quiCkly And eConomiCAlly.

6 | ELEVATION

Acco BrAnds©2013 darris lee harris photography

ELEVATION | 7

“ We Wanted adjacencies— people seated near the people they needed to work with. that meant the finance people should be near key business leaders, and the product engineers near marketing.”— michael molinaro, acco brands

pROJECT FOCuS

pROJECT FOCuS

A major issue ACCO was faced with was how their employees interacted versus how they could best interact with each other. Having acquired numerous brands and companies over the years, they had to constantly relocate their newly acquired companies into their former headquarters. The new workstations created were not strategically placed and were situated wherever there was space. Consequently, each new company acquired oftentimes ended up sitting together, not allowing them to bond with ACCO. Interacting with other departments was cumbersome and oftentimes meant traveling through several floors to reach them.

“What we had in mind was to build a culture among the many different business entities,” said Enrique Suarez, architect and principal at HED. Also serving on the team from HED were Leonora Georgeoglou, senior designer, and Kevin Hense, project architect.

“We wanted adjacencies—people seated near the people they needed to work with,” said Molinaro. “That meant the finance people should be near key business leaders, and the product engineers near marketing.”

And to encourage spontaneous, informal business discussions, which Molinaro called “casual collisions,” comfortable seating areas and multiple cafes were placed on each floor of the new headquarters. Skender and HED spent the summer of 2012 reconciling the design details with the strict budget. Clay Edwards, Skender’s project executive, recalled that budgeting called for analyzing each line item: “If one light fixture cost 50 dollars less than the other, and the performance was equal, we chose the less expensive option. Fifty dollars times 800 light fixtures adds up, and that’s just one type of fixture.” When sidelights on perimeter offices, which would spread more natural light throughout the floors, initially seemed too expensive, they became affordable after realizing their savings on needing fewer light fixtures and carpeting at internal offices.

“What really matters is that we deliver value for our clients and help the business of our clients,” said Suarez. “You invest a lot of time upfront to understand the issues, but that collaboration pays off in the end product.”

ELEVATION | 9

pROJECT FOCuS

“You don’t end up with just a pretty design—you also have function,” said Georgeoglou.

The 20-week construction schedule of demolition and renovation began in November. Although much of the floor plan called for offices and work stations, there were also specialty areas: laboratory, training rooms, mailroom, auditorium, and a conference room with an extensive audio- visual system. In the atrium lobby, a product showroom and display areas were added to showcase ACCO’s extensive product lines. “Now you come in and can see what ACCO is all about,” said Georgeoglou.

Skender and HED broke industry ground as the first contractor-architect duo to simultaneously link to the Newforma project and information management software.The innovative program allowed them to speed their frequent communications; shorten document delivery, review and response times; and track each other’s progress. Subcontractors were set up with log-ins, so they could submit information.

“It’s seamless because we are both using the same software,” said Edwards. “What used to be a 7-day process can now be turned around in a couple of days by using overnight delivery services.

“You can also go back and see when something was issued,” said Georgeoglou. “Everything is listed by date and is very easy to find.”

Skender project manager Joe Hunt pointed out another benefit: reproduction and paper costs are cut dramatically. “This project had 200 to 300 submittals from all the different trades, and there wasn’t a single sheet of paper,” he said.

“Here we often talk about using the last responsible moment to make decisions,” said Edwards. “Tools like Newforma and our Lookahead Schedule give the client more time to make decisions. We don’t have a four- or five-day process to price a change request and then the decision has to be made right away—we can work faster and give the client the extra time they need.”

The work was well underway when ACCO requested two huge changes: The first was to allow the finance department to move in two weeks before the April 15 deadline. That meant

10 | ELEVATION

clientacco brandS corporation// Owner’s representativecuShMan & Wakefield//architectharley elliS devereaux//engineerenvironMental SySteMS deSign, inc.//

a substantial area, about 25 percent of the second and third floors, had to be finished earlier than planned. The second request was to build out an additional 8,000 square feet of space to accommodate a new inside sales force.

In both cases, principles of Lean Construction allowed Skender to fill those requests without falling behind. One Lean component is the Last Planner® System, which allows subcontractors to collaborate and make scheduling decisions. Hunt and Tony Fontanetta, Skender senior superintendent, called together the subcontractors and asked what they could do to rework the schedule. With collaborative planning sessions with all project team participants, they got the changes made without paying overtime. The finance department was finished at no further cost to ACCO.

“The subcontractors would much rather collaborate and generate a plan that benefits everyone than having someone dictate the schedule,” said Edwards.

“When they set their own schedule, there’s no coming back and saying ‘We need more time’,” said Hunt. “They are committed to getting the work done.”

Collaboration is the true key to success, said Brannan. “You need an engaged owner, an architect who brings a high level of service to the project, and a contractor who is focused and looking out for the owner’s best interest, and those elements were all present on this project.” ±

pROJECT FOCuS

Building community through collaboration

a groWing deMand for affordable Senior houSing led catholic charitieS of the archdioceSe of chicago to take action. through itS affiliate catholic charitieS houSing

developMent corporation (cchdc), the Social ServiceS agency decided to conStruct a neW rental building, all SaintS

reSidence, next door to an exiSting building on the city’S South Side. but Meeting a budget and Schedule WaSn’t enough.

the proJect alSo had to be Structured Within an econoMic fraMeWork that benefitted local reSidentS and included

a large nuMber of Minority and WoMen-oWned buSineSS enterpriSe (M/Wbe) partnerS.

ELEVATION | 11

those parameters required a multi-pronged strategy that would blend upfront communication, education, community outreach and innovative project management. the team enthusiastically accepted the challenge and had a true desire to create opportunities for others.

All sAints residence©2013 anthony May

pROJECT FOCuS

“our mission is to provide high-quality, affordable housing for folks

with low incomes,” said gracia maria shiffrin, director of real estate

development for catholic charities and chief operating officer for cchdc.

“we want to work with people who embrace that mission, and that

includes the architect and the contractor. if they understand our mission,

everything else lines up.”

all saints residence is the newest addition to the catholic charities

housing portfolio. the five-story, 40,000-square-foot facility consists of

42 one-bedroom apartments for independent living. a one-story annex

connects all saints to the adjacent 60-unit roseland manor, which is filled

to capacity. the $8.5 million project, which was funded primarily through

the u.s. department of housing and urban development, opened in

november 2012.

ELEVATION | 13

skender over the past decades has built myriad affordable senior housing

communities. that experience was a huge asset to all saints. the client

hired architects patricia and robert natke, partners at chicago-based

urbanworks ltd., to design the new building, and at the same time asked

skender for guidance and recommendations that would keep construction

costs in line.

“YOu WANT TO KEEP CONSTRuCTION DOLLARS IN THE COMMuNITY. THE WAY TO DO THAT IS TO GET SuBCONTRACTORS WITHIN THAT COMMuNITY AND TO EMPLOY INDIvIDuALS WHO LIvE IN THE COMMuNITY.” — Ta Juana Tang, Tandem Ventures

“because of our limited budget, we needed real numbers,” said shiffrin.

“we couldn’t afford to design the building and go out for bid.”

according to alderman anthony beale, who has been representing

chicago’s 9th ward for 14 years, the roseland community has one

of the eldest populations in the country. after the foreclosure crisis,

many of his constituents needed affordable housing options.

“when i took office i knew i had to do something drastic to help the

seniors who live here, so i started building as much senior housing

as i could in a timely manner. this project is another example of the

community coming together and filling the void,” he said.

skender, well aware that the project would be sensitive in terms of

compliance and job creation, brought tandem Ventures onto its team.

this chicago-based economic development firm specializes in

managing and enforcing regulatory requirements that are included

on construction projects.

“you want to keep construction dollars in the community,” said

ta Juana tang, principal at tandem Ventures. “the way to do that is

to get subcontractors within that community and to employ individuals

who live in the community.”

the city of chicago requires mbe participation of 24 percent and wbe

participation of 4 percent on new construction projects that receive

city funding. in conjunction with ald. beale, the team set loftier goals

for the project. attaining this goal took advance planning and strong

community outreach, said skender senior project manager Joe pecoraro.

“what happens on jobs that are not successful is no one really thinks

about how they are going to meet those requirements until after the

contracts are awarded, or they are onsite and working,” he said.

tA JuAnA tAng | pRINCIpAL, TANDEM VENTuRES ©2013 tony armour

pROJECT FOCuS

14 | ELEVATION

“trades don’t really like to adhere to requirements after the fact,”

said tang.

although construction would not begin until the end of november 2011,

skender and tandem spent the summer months enlisting support from

the community and the subcontractors. one initiative was a pre-bid

meeting to which they invited local minority and women business

owners. they introduced themselves and the project, and they asked

the businesses to bid. many did, and this meeting helped bring the

total m/wbe participation to more than 42 percent.

for ald. beale, it was important that the community was represented

throughout this and any construction project. having a repeat relationship

with skender ensured that everyone involved could go right to work.

“RIGHT AWAY THEY REACHED OuT TO THE uNIONS AND ASKED FOR PEOPLE WHO LIvED IN THIS AREA WHO WERE OuT OF WORK.” — Alderman Anthony Beale, 9th Ward, Chicago

“over the years people say that all of this construction is happening

in the community and the community is not included in the process.

so working with skender, who really has their ear to the community

and ta Juana, who facilitated the process, we didn’t have to reinvent the

wheel or start from scratch. right away they reached out to the unions

and asked for people who lived in this area who were out of work.

they called those people and told them about a construction project

that was going to be happening in their community,” said beale.

“the way we communicated with the subcontractors was very deliberate

and proactive,” said tang. “we said, ‘we are here to work together as a

team. in order to achieve these goals and bring the project in on time and

on budget takes all of us working together. we need you as much as you

need us.’”

the team also held two hiring conferences to build a database of workers

who were union cardholders and had the skills needed on the project.

skender then told its subcontractors that when they needed to hire

employees, they had to first attempt to hire from the database.

this initiative also was successful: fourteen individuals were hired,

all african americans, and all from the 9th or surrounding wards.

another consideration was the paperwork, which in terms of compliance,

might be viewed as onerous. all employers must submit weekly

information such as number of hours worked, m/wbe allocations,

purchase orders, new hires and more. to make the reporting process

easier for its subcontractors, skender held workshop meetings at its

headquarters to walk them through all the requirements.

AldermAn Anthony BeAle | 9Th WARD, ChICAGO©2013 powell photography, inc.

pROJECT FOCuS

ELEVATION | 15

“ON A MICRO-LEvEL, IT DOESN’T MATTER TO ME WHETHER SOMEONE GOT HIRED BECAuSE OF REGuLATIONS. I WANT THAT PERSON TO BE SuCCESSFuL, AND FOR THE COMPANY TO KEEP THEM” — Joe Pecoraro, Skender Construction

“we didn’t bring in the company presidents—we had the people who

were actually doing the paperwork,” said tang.

the teamwork aspect was further cemented by skender’s adherence

to the tenets and practices of lean construction. among these are the

last planner® system, which allows subcontractors to give input as to

the amount of time they need to complete a task, and the lookahead

schedule, which helps them reliably forecast their manpower.

tang, who attended many foreman meetings, often watched them

interact: “one would say, ‘i need an extra day here,’ and another

would say, ‘okay, i can do this.’ one trade affects another, and it was

great to see them working together,” she said.

Joe PecorAro | SENIOR pROJECT MANAGER, SkENDER CONSTRuCTION©2013 tony armour

16 | ELEVATION

DevelOpercatholic charitieS houSing developMent corporation//architect urbanWorkS ltd.//engineercalor deSign//ecOnOmic DevelOpment cOnsultanttandeM ventureS

“WE WERE HAPPY TO PROvIDE EMPLOYMENT OPPORTuNITIES AND MINORITY PARTICIPATION.” — Gracia Maria Shiffrin, CCHDC

“we were happy to provide employment opportunities and minority

participation,” said shiffrin. “skender was able to make that happen

to the highest numbers and also provide high-quality construction,”

said shiffrin.

“there is a cost associated with providing the upfront services such as

planning and outreach sessions,” said pecoraro. “but those costs are

negligible compared to the problems and issues that happen down the

road if you try to work the regulatory requirements into the back end

of the project.”

for the future, skender hopes to build a reputation as a contractor

that wants minority trades to want to work for them, and for the city’s

aldermen to request skender to build their projects. pecoraro’s goals

extend beyond doing good business.

“on a micro-level, it doesn’t matter to me whether someone got hired

because of regulations,” he said. “i want that person to be successful,

and for the company to keep them.” ±

by every measure, the all saints project soared beyond all expectations.

both jobs and good will were added to the community, without a single

complaint. because anyone walking past the jobsite saw a diverse

workforce, the team encountered no picketing or protesting.

“the alderman’s office didn’t get complaints either,” said tang.

“this was a fabulous project to work on.”

skender wasn’t the least expensive contractor, but it was the most

responsive, said shiffrin.

grAciA mAriA shiffrin | DIRECTOR, REAL ESTATE DEVELOpMENT FOR CAThOLIC ChARITIES; ChIEF OpERATING OFFICER, CChDC ©2013 tony armour

pROJECT FOCuS

ELEVATION | 17

this month, 250 high school juniors in chicago will begin a 5-year journey that will end in the realization that they are leaders. they come from every neighborhood and their goals are straight-forward: graduate from college, realize their full potential and then help other young people achieve the same.

18 | ELEVATION

“many of these students are first in their family

to attend college. they may have these wonderful

dreams and aspirations but they may not have

an understanding of their options,” said meseret

negash, chicago scholars’ senior vice president

of external affairs.

cheryl skender, skender foundation’s chair and

president, knew that chicago scholars’ mission

aligned with skender foundation’s mission of

empowering people through education. this year’s

summer eclipse event will highlight and help raise

funds for chicago scholars.

“these individuals are not always straight-a

students. they might have a strong b-average,

but this organization looks at their potential from

a holistic standpoint. they offer real opportunities

to talented young people who could be overlooked

because they don’t have access to resources,”

said skender.

every year, chicago scholars pre-screens the top

1,000 students in chicago who have achieved

a 3.0 gpa or above. they look at other attributes

like integrity, character, leadership and community

involvement. after approximately 250 participants

are selected, they’re exposed to the college

application process, career exploration and are

assigned a mentor.

every october, chicago scholars hosts an annual

onsite admission forum where students interview

with university representatives and complete the

application process.

“the most amazing thing is every student walks out

of the forum knowing which college they will attend

with scholarships in hand. and 95.5 percent of them

go on to graduate from college,” said skender.

negash attributes the mentoring provided to

students from members of chicago’s business

community to the successful graduation rate.

“the business community has an opportunity to

mentor and identify top talent early by hosting

lunch and learns, providing internships and getting

to know these students as they develop. we’ve had

students graduate as attorneys and then get hired

by firms they may have interned at and these

businesses played a wonderful role in their full

development,” said negash.

as students develop professionally, they also gain

more than knowledge and a career.

“i have one student who describes chicago

scholars as her professional family. mentors are

there for them from high school to college and

into adulthood because they stay connected.

it’s exciting to see students come back and

mentor the next group,” added negash.

negash’s hope is that students become invested

in their communities and will return to invest

in chicago.

“the dreams of our students are as diverse as

the different challenges we have in our city.

despite some of the challenges that we hear about

as residents, there are amazing young people in

these neighborhoods who are trying to do whatever

they can to change their individual circumstances

by studying hard, getting good grades and looking

for opportunities through education.” ±

Skender Foundation’s annual event, Summer Eclipse, will highlight and raise funds for Chicago Scholars and other deserving organizations that are committed to impacting education and wellness.

since 1996, chicago scholars has helped 2,500 high school stUdents sUcceed in their academic careers throUgh mentorship. they provide sUpport to stUdents at over 165 colleges across the coUntry from the University of illinois to harvard. this program gUides and shapes their development and also provides them with the sUpport they need to sUcceed.

GIVING BACk

Skender Foundation is a 501(c)(3) Private Foundation providing support to organizations and causes impacting education and wellness.

• purchase tickets at •www.skenderfoundation.org

SummeR EclipsE

44

44

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july eighteenth

This year, Summer Eclipse will highlight Chicago Scholars, a non-profit organization that assists talented but under-resourced high school

students to overcome barriers to collegiate access and success.

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studio paris at Paris Club

thursday

20 | ELEVATION

What is commissioning?commissioning (cx) is the process of verifying that mechanical and

electrical systems meet the design intent and performance levels of

the drawings and specifications. commissioning begins during system

construction. the installing subcontractor fills out a pre-functional

checklist and initial start-up of equipment is performed prior to

cx testing. the commissioning authority performs a functional test

on each piece of equipment, and then analyzes all the tests and

checklists to verify performance in compliance with the original

design intent.

the 2012 iecc mandated cx is required to be performed by a registered

professional engineer. illinois requires cx for projects resulting in at least

600,000 btu/hr of heating capacity and 480,000 btu/hr of cooling and

lighting capacity. larger projects with complex mechanical and electrical

systems will also need an integrated systems test.

What’s the cost?commissioning adds cost – and in the wrong hands, it can delay

receipt of the certificate of completion. however, general contractors

with knowledge of mechanical, electrical and plumbing (mep) systems

and the new energy codes will not have a problem budgeting and

scheduling activities.

fundamental cx is also a prerequisite for gaining leed-ci certification,

and companies can gain leed points for enhanced commissioning.

SOLuTIONS

Office and retail tenants get ready: New energy code in effect now on buildings throughout Illinois, and soon in Chicago, affect tenant buildout projects as well as new building construction.

In August 2012, the State of Illinois adopted the 2012 International Energy Conservation Code (2012 IECC), the third state to adopt this latest version of the IECC. Changes went into effect statewide on January 1, and the City of Chicago is expected to confirm its compliance with the state code in the first half of 2013.

For Illinois tenants, this is the first time that a space buildout project requires System Commissioning of hVAC, power, and Lighting Control Systems as a requirement of receiving and passing a final inspection.

NEW ENERGY

CODE: ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||

ELEVATION | 21

How can You protect Your project?contractors that are not aware of the new 2012 iecc cx requirements

may not include the costs during the budgeting process.

if they don’t include the cost of commissioning in their proposals, their

bids will be low and the scheduled duration will be shorter than required

to complete the project to get a final certificate of occupancy inspection.

the result is likely to be an unexpected cost, and possibly delayed delivery

of the space if the need for cx is not anticipated in the planning phase.

a general contractor with an in-house mep project manager will

be able to manage the commissioning process and navigate any

other issues created by the new iecc codes, saving money and

avoiding trouble.

companies preparing for an interior buildout project should ensure

that the contractor knows how to apply the new code, identify

the potential cost impacts in the budgeting process and schedule

for the commissioning process. ±

chris tapas is senior mep project manager at skender Construction.

tapas is responsible for the oversight of mep preconstruction,

purchasing activities and provides commissioning support

on various projects.

SOLuTIONS

general contractor / Subcontractors cost / Sf total cost

pre-functional checklist completion

hvac/plumber $ .05 $ 1,000

electrician $ .05 $ 1,000

Start-up documentation

hvac/plumber/tab $ .05 $ 1,000

electrician $ .05 $ 1,000

functional test Support

hvac/tab $ .175 $ 3,500

electrician $ .075 $ 1,500

commissioning authority (cxa) cost /Sf total cost

dependent on vav/fpb density $ .10 - .30 $ 2,000 - 6,000

total cx budget range $ 11,000 - 15,000

By the nUmBers | A Cx process on a 20,000-square-foot office buildout project could add almost $1 per square foot. The u.S. Green Building Council notes that Cx can improve energy efficiency by 5 to 10 percent, so at least part of the cost is repaid during the lease term. here’s how the costs break out:

ASSUMPTIONS:• Base Building Systems will not be part of the commissioning exercise• VAV / FpB (Variable Air Volume / Fan powered Box) Density: • Open office VAV /FpB every 1500 SF • private office VAV / FpB every 500 SF

by chris tapas, p.e.

ELEVATION | 23

what’s it take to build a high-performance team? according to greg howell, co-founder and president of the lean construction institute and dr. tariq abdelhamid, associate professor of lean construction at

michigan state university and chairperson of the lean construction institute academic forum, people at the top can’t build it—and even contracts can’t enforce it. instead, performance lives inside of the team.

it’s enforced through trust, commitment and reciprocity of good will.

mark skender sat down with howell and abdelhamid to discuss how integrated lean project delivery is creating an infrastructure for collaboration and behavioral change in construction.

ELEvATING THE INDuSTRY

ms: I would like to thank both of you for joining me to

discuss what I consider to be one of the most complex

issues in project management. Our industry is seeing

more contractual relationships that support integrated

delivery, but behaviors that are bound within the traditional

framework are deeply-rooted within our industry.

This paradigm of top-down management is not easy to

break. What does it take to go beyond contractual language

and truly achieve the goals of integrated project delivery?

tA: It’s impossible to enforce collaboration through a

contractual agreement. No one can necessarily write a

contract that can define the values of someone’s work.

Contracts don’t change culture. Culture is really the central

issue, and is changed by focusing on vital behaviors needed

to accomplish the Lean ideals.

gh: I think it’s important to make a distinction between

Integrated Lean project Delivery and traditional practice.

Traditional project management establishes a command

and control culture built on contractual model projects.

So traditional practice creates a culture of compliance.

ms: What is a culture of compliance?

gh: There is a belief in traditional project management

that if one can make perfectly clear contracts, people

would comply or suffer the consequences. And people

who don’t comply are therefore not the kind of people

you want to work with or have work for you. The industry

motto “Can Do” encourages this behavior; someone senior

tells a foreman what to do and they had better figure out

a way to make the work happen even if they have to break

some rules.

Culture in Integrated Lean project Delivery is not rooted

in “Can Do.” It springs from the idea that in order to be

collaborative, people should be encouraged, indeed have

the authority, to speak up—to say "no" when it needs

to be said. The best projects develop when people can be

courageous. In a sense, the Last planner® System contradicts

the industry motto—we’ve seen it change the makeup of

project teams. It’s not about cooperating in the sense of

just going along; it’s about getting the work done through

direct engagement with and commitments from the Last

planners themselves.

tA: I think cultural challenges that are associated with

traditional project delivery exist when implementing any

aspect of Lean. To add to Greg’s point, you’re asking the

foreman to have the courage to say no to an assignment.

At the same time, you’re asking the superintendent to

have the willingness to let go of the control. So I always

find there are two sides to cultural change, and how you

get the mixture to line up is a real challenge.

ms: I’ve always looked at the superintendent as the one

who has to be willing to let go of the control first. If the

superintendent becomes the leader in letting the guard

down, they are sending a clear message to others and

taking the first step in establishing that kind of culture.

24 | ELEVATION

gh: I think we have to be careful about the term “let go.”

I’ve heard people use terms like trust, collaboration and

cooperation and there’s a sense of softness and danger

that arises from that. In the past year I’ve been reading

about some remarkable ideas from professor Samuel Bowles,

a harvard-educated economist. his book, A Cooperative species: human reciprocity and its evolution, provides

research and evidence that humans have a sense of equity

and fairness and it’s more powerful than the economic

degree of man. So people have a sense of equity, fairness,

and they react to people who act unfairly. Most of us act

in altruistic ways; we help others because it pleases us.

This is and isn't a very surprising finding.

ms: What does Bowles’ research mean to business?

gh: That sense of equity and fairness isn’t necessarily

active between companies, but it is between individuals.

If you want a high-performance team, a group where all

people contribute meaningfully, you have to identify the

Free Riders; people who are not fully contributing to the

team. high-performance requires confronting them, and

getting them in the game or off the team.

tA: The idea that high-performance teams have to have

self-governance is a powerful concept that Greg synthesized

from his reading of Bowles. Reflecting back to the pilot

Lean/IpD project we did on campus, this aspect was very

critical for the resulting success we had. In addition to this

powerful concept, a high-performance team does not only

cooperate together, they’re also collaborative. Individuals

on these teams are not saying that they’re just going to

cooperate and do what’s good for each other, they are

also going to work to get the best result for all project

parties and they have a common understanding of what

contributing really means. There will be alone work and

together work. As Greg said, they’re willing to call those

Free Riders out if they’re not contributing; it’s tough but it

must be done.

ms: how can owners feel secure in knowing that everyone

on the team is working in their best interest?

tA: There is a practical way to think about the relationship

between the team and the owner. how do you create a

society of trust where the owner is confident that the

building team is looking out for their interests? Both parties

are making an investment in the success of the project in

order to maximize the performance for all parties to share.

Owners should, indeed must, participate in the team and be

willing to call out Free Riders. The way to look out for your

interests in a collaborative environment is very different than

the way one would look out for themselves in a traditional

or commercial environment.

ms: If we look to how we identify Free Riders on paper, the

Last planner® System and planned percent Complete (ppC)

seem to be collaborative tools that hold people accountable

in a very direct way.

gh: Yes, those are good examples. The goal of collaboration

is not so we can say we’re collaborating. We need to really

commit to achieve better results. We must optimize the work

and increase reliability in planning and production.

ms: I couldn’t agree more with you. This conversation has

been really insightful, and it’s exciting to learn how academic

studies really support the idea that high-performance teams

must have self-governance. Do you have any closing thoughts?

gh: Bowles' insights on economics are really thought-

provoking. If we can create a structure that capitalizes

on people’s natural motivation to do well and recognize

that all of us have ethical commitments which lead us to

reciprocate good will and generosity, we can do anything.

tA: I’d like to go back to our first question about contracts.

In our new economy, contracts are not going to get the

job done and we can’t always make agreements that are

enforced by lawyers. If people feel like they don’t have

ownership over the things they are producing, you won’t

get a job well done. We must trust that people will work

hard not because they are afraid of being fired. Instead

they trust their team, they feel a sense of reciprocity from

their boss and they feel proud of their work. ±

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