operation mindshift corenet 08
DESCRIPTION
How trust-based teams using turnkey integrated design and construction to reduce cost, shorten schedules and remove conflict.TRANSCRIPT
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CoreNet Global Summit
#11 A Corporate Real Estate “mindshift”: The New Trust-Based Turnkey Approach to Building and Development
Moderator:Rick Page, GVA Williams
Speakers:Dean Strombom, GenslerMark Iammarino, Turner ConstructionRex Miller, mindshift
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A new way of thinking about an old problem.
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Acknowledgements/Credits is comprised of AIA, GSA, Gensler, KPMG, Metropolis Magazine, Turner Construction, Haworth, WP Moore, Acoustic Dimensions, Kyle Davy Consulting, Lucchesi Galati Architects, Transwestern, Cushman & Wakefield, Solidus, and Aardex. Our purpose is to shift the building culture toward greater collaboration and integration.
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Learning ObjectivesExplore and Explain:
• Broken Buildings and Busted Budgets* - the industry today.
• What is the mindshift?
• 4 Principles.
• 5 Keys to Alignment.
*Barry LePatner
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Agile Race in an Institutional Buggy!
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Silos
McDonough Holland & Allen PCAttorneys At Law
Adapted from:
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“Buildings Leak at the Intersection of Contracts”
Adapted from: Todd Zabelle, Strategic Project Solutions
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Hierarchal Delivery Model
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Fielding a New Team Every Project
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80% of the Cost is Brought in Late
McDonough Holland & Allen PCAttorneys At Law
Adapted from:
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If Corollas were Design-Bid-Build?
Design-Bid-Build…It would cost: $44,000
and it would be• Late• Over budget• Value-engineered• Missing parts• and have
No warranty
Integrated…It would cost: $16,000
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Waste in the System
Manufacturing Construction
12%
57%
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The Brutal Facts• $700 billion annual WASTE
(BuildingsSmartAlliance)
• 48% of GHG (Energy Info Admin Statistics and Pew Climate report)
• 70% over budget and late
• 10-12% Annual Cost Escalation (RS Means)
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Owners Demand Fundamental Change
Construction Users Roundtable (CURT):“Address the perception of inadequate, poorly coordinated AE drawings and the resulting difficulties in the field. These problems are symptoms of larger industry issues.”
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Principle 1: Trust-Based Teams
• Values
• Capabilities
• Play Book
• Tools
• Pre-Game
• Measure
• Improve
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Principle 2: Getting it Right at the Start
“All the big mistakes are made in the first day.” — Paul Adams, AIA
1. The Team Aligns with the Business Plan
2. The Business Plan Drives Design
3. Design is an Early Collaborative Process
4. 80% of the Cost Lies with the Sub-trades
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Principle 3: Built-In Sustainability
• By Removing Some of the 57% Waste.
• Through Good Design vs. a Check List
• The 2030 Challenge demands a new approach.
• Smart developers can gain a competitive advantage.
Sustainable projects at no premium using integration.
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Principle 4: True Improvement
A common team, process plus relevant performance metrics allows continuous improvement.
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Alignment 1: Big BIM
• Collaborative Design• Modeling is Different than
Drawing• Subs Model Shop Drawings• Collision Detection• Target Costing• Full Project Simulation• Off-site Fabrication• Life Cycle testing• Built-in Sustainable
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Alignment 2: Toyota Style
• Reduces cost by 30%• Client Defines Value• Involve Those Doing the Work• Identify Activities that Deliver Value• Identify and Measures Waste• Create a Process to Remove Waste• Continual Incremental Improvement
• AIA IPD Guidelines• Lean Construction• Responsibility-based Project
Delivery
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Alignment 3: Shared Risk/Reward
• Project vs. Scope• Joint Incentive and Risk
• AIA’s Integrated Project Delivery Guidelines
• Egan Report• Project Alliance Guide• Sutter Health Multi-Party
Agreement• Profitable Partnering
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Alignment 4: Off-Site Fabrication
• Structure• Interior Walls• Access Floors• Mechanical• Electrical• Plumbing• Concrete• Millwork• Bathrooms
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Alignment 5: Performance Impact
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Camino RoyaleMulti-Party Agreement
Early Business Model
Little BIM
IPD/Lean
• Off-Site Assembly
• Workplace Improvement
• Sustainability
$94M budget$9M Saved6 Months Reduced6 MEP RFIs37% of Contingency
Results:
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Aardex Signature CenterVertical
Integration Early Business
Model
• Little BIM• IPD/Lean Assembly Business
Enhancement Sustainability
$20.5 million/$3 per sqft less than conventional
191,000 square feet
LEED Platinum
User Effective
50% Lower Operations
100% Leased
Results:
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A Prescription for Success
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MindshiftWiki Resource Site
Mindshift Project Assessment
Mindshift Project Delivery
Mindshift Consulting and Coaching
The Mindshift Cure
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Stay Tuned for the Book
The Commercial Real Estate Revolution
Release August 2009 through John P. Wiley Publishing
The Mindshift Cure
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Call to Action (1)• Select teams early based on
qualifications
• Prepare to shift $ forward to develop business case, validation and design
• 80% of the errors are made in the early stage of design
• Set up tightly coordinated design through collaboration and/or BIM
• The business case drives design
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Call to Action (2)• Be aware of the extend of waste,
develop a plan to identify and eliminate
• Rehearses common avoidable conflicts and errors
• Pool risk and reward to incentivize project results instead of scope results
• Measure performance based on commitments to costs, quality and schedule weekly
• Actively improve upon the metrics developed
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Contact InformationRex Miller, Thought [email protected] Strombom, [email protected] Iammarino, VP/[email protected]
Website: www.mindshiftblog.comResource Site: www.mindshiftwiki.com