AACE Seminar April 23 2013 revised Seminar April... · 2015-04-17 · •Integrated Project Delivery (IPD) Joint Committee of the AIA and the AGC, ... Source: Joint Committee of the

Osama Moselhi

Professor, Concordia University, Montreal, QC, Canada

AACE International

Montreal Section

April 23, 2013 1111

Agenda• Introduction •Accelerated delivery of EPC projects (strategic level)

•PDS (selection)•Planned execution

•Schedule compression (tactical level)•Methods•Industry survey

•Concluding remarks2

Acknowledgments

MASc

• Zorana Popić• Nazila Roofigari• Pierre Theberge

PhD

• Ibrahim Bakry• Adel Alshibani• Khaled ElRayes• Ahmed Hassanein• Pasit Lortarapong

3 3

Project time

acceleration

Strategic

PSDTactical

Phased

construction

Fast-track

construction

Traditional

construction

Repetitive

construction

Unrestrictive

crew

movement

Restrictive

crew

movement

Algorithmic

Heuristic

Optimization

Knowledge

based

Revising job

logic

Revising

construction

methods

Artificial

intelligence

Knowledge based + Algorithmic 4444

PDS: definition

“Project delivery system defines the structure of the relationships of the parties, the roles and responsibilities of the parties and the general sequence of the activities required to deliver the project.”

(Moore, 2000)

5

Widely known PDS’s

•Traditional Design-Bid-Build (DBB)

•Construction Management at Risk (CMR)

•Design-Build (DB)

•Integrated Project Delivery (IPD)

Joint Committee of the AIA and the AGC, (2011), “Primer on Project Delivery.”

6

(Fazio, Moselhi & Theberge,1988) 7777

PDS

8BLDG 6801 Prof. Osama Moselhi

9

Metric

Facility

type

Construction

speed

Delivery Speed Schedule

growth

Light

Industrial

DB, CMR>DBB DB, CMR>DBB

Multi-story

dwelling

Simple

office

DB>DBB, CMR CMR<DBB

Complex

office

DB>DBB DB>DBB, CMR DB,CMR<DBB

Heavy

Insudtrial

High

technology

DB>DBB DB>CMR

PDS performance metrics by facility type

Source: Design-Build Research Team, (1999), “Project Delivery System Selection Workbook”, IR 133-2, CII, UT Austin, Texas, USA.

Significant difference between PDS’s

Systems performing nearly the same or not enough evidence to report significance

10

PDS comparisonregardless of facility type

Source: Design-Build Research Team, (1999), “Project Delivery System Selection Workbook”, IR 133-2, CII,UT Austin, Texas, USA.

MetricDB vs. CMR

%

CMR vs. DBB

%

DB vs. DBB

%

Construction

Speed7 faster 6 faster 12 faster

Delivery

Speed23 faster 13 faster 33 faster

Schedule

growth2.2 less 9.2 less 11.4 less

11

Selection factor

PDS

Control Time

growth

Ensure

Shortest

Schedule

Promote early

procurement

Sum of

three

REV (out

of 300)

Traditional D-B-B 20 0 0 20

Traditional with early procurement 50 50 90 190

Traditional with PM 20 10 0 30

Traditional with CM 20 0 0 20

Traditional with early procurement and CM 50 40 90 180

CM @ Risk 70 80 100 250

Design-build (or EPC) 90 100 100 290

Multiple design-build 80 90 100 270

Parallel primes 0 90 80 170

Traditional with staged developemnt 0 60 50 110

Turnkey 100 100 100 300

Fast track 80 100 100 280

Source: Project Delivery and Contract Strategy Research Team, (2003), “Owner’s Tool for Project Delivery and Contract Strategy Selection, User’s Guide”, IR 165-2, CII, UT Austin, Texas, USA.

12

Schedule-related selection factors relative effectiveness values (REV), 0=lowest, 100= highest

Newly emerging PDS’s:

“Integrated project delivery (IPD) is a method

of project delivery distinguished buy a

contractual arrangement among a minimum of

the owner, constructor and design professional

that aligns business interests of all parties. IPD

motivates collaboration throughout the design

and construction process, tying stakeholder

success to project success and embodies the

following contractual and behavioral principles:

Source: Joint Committee of the AIA and the AGC, (2011), “Primer on Project Delivery,” 2nd Ed. 13

Contractual principles

•Key Participants Join Together as Equals

•Shared Financial Risk and Reward Based on Project Outcome

•Liability Wavers between key Participants

•Fiscal Transparency between Key Participants

•Early Involvement of Key Participants

•Jointly Developed Project Target Criteria

•Collaborative Decision Making”

Source: Joint Committee of the AIA and the AGC, (2011), “Primer on Project Delivery,” 2nd Ed. 14

Integrated Project Delivery (IPD) as a delivery method

“is when the owner has elected to sign a multi-party contract with the prime designer, contractor and/or other key members of the project team. In addition to the multi-party contract, IPD as a Delivery Method is characterized by a contract that incentivizes collaborative behavior, team risk-sharing and other IPD principles and practices.”

Source: NASFA, COAA, APPA, AGC and AIA, (2010), “Integrated Project Delivery for Public and Private Owners. 15

IPD – Team Integration

Source: AGC, IPD: Lessons from the Trenches (Powerpoint) - February 26, 2009, <http://www.agc.org/cs/industry_topics/project_delivery/integrated_project_delivery>

16

IPD - Early involvement of key participants

Source: AIA National/AIA California Council (2007) Integrated Project delivery: A Guide”

Traditional design process

Integrated design process

Predesign SchematicDesign

DesignDevelopment

ConstructionDocuments

Agency Permit/Bidding

Construction Closeout

ConceptualizationCriteriaDesign

DetailedDesign

ImplementationDocuments

Agency Coord/Final Buyout

Closeout

WHAT

HOW

REALIZE

REALIZE

WHAT

WHO

HOW

AgencyOwner

Designer

Design ConsultantsConstructors

Trade Constructors

AgencyOwnerDesignerDesign ConsultantsConstructorsTrade Constructors

WHO

Construction

17

IPD – schedule performance

• Reduced construction time due to extensive planning

• Accelerated schedule is common reason for selecting IPD

• “Lean” principles to increase efficiency:

Each party makes commitments to schedule and identifies obstacles to meeting them – being part of a team is a motivation to fulfill those commitments

Sources:AIA National/AIA California Council, (2007), “Integrated Project delivery: A Guide”Joint committee of the NASFA, COAA, APPA,AHEFO, AGC and AIA, (2010), “Integrated Project Delivery for Public and Private Owners”.

18

IPD – Sutter Health Fairfield Medical office Building, California, U.S.A

• schedule management - primary motivator for IPD

• 2005-2007

• early involvement of subcontractors drastically reduced rework

Sources:AIA, AIA Minnesota, School of Architecture – University of Minnesota, (2012), IPD Case Studies. http://inhabitat.com/walter-cronkite-school-of-journalism-is-a-hard-hitting-energy-efficient-news-school/http://www.theboldtcompany.com/project/sutter-health-california-pacific-medical-center-medical-office-building/

19

IPD - Walter Cronkite School of Journalism, Phoenix, Arizona, U.S.A

• challenging and strict schedule (2006-2008)

• schedule predictability - primary motivator for IPD

• design-build contract with features of IPD:

• mutually defined/aligned project goals

• early involvement of key participants

• collaborative decision making

• fiscal transparency

• co-location

• BIM

Sources:AIA, AIA Minnesota, School of Architecture – University of Minnesota, (2012), IPD Case Studies. http://inhabitat.com/walter-cronkite-school-of-journalism-is-a-hard-hitting-energy-efficient-news-school/

20

Newly emerging PDS’s

Integrated Design-Bid-Build (IDBB)

• IPD adapted by U.S Army Corps of Engineers

•separate contracts for design and construction awarded concurrently to allow collaborative simultaneous design and construction activities

• two key aspects

• early contractor involvement (ECI)

• extension of A/E construction phase services

Source: Brennan, M, (2011), “Integrated Project Delivery: A Normative Model for Value Creation in Complex Military Medical Projects”. PhD Thesis, University of Illinois at Urbana-Champaign, IL, USA. 21

Army Health Facility Planning Agency

Integrated Design-Bid-Build (IDBB)

Source: Brennan, M, (2011), “Integrated Project Delivery: A Normative Model for Value Creation in Complex Military Medical Projects”. PhD Thesis, University of Illinois at Urbana-Champaign, IL, USA.

U.S. Government: DoD, USACE, USAHFPA. . .

RFP

RFP

Inspection or observation of construction A/E servicesA/E Design

Const. support services Construction

Project Timeline

BUILDER

DESIGNER

OWNER

22

Project delivery process timeline comparison

Source: Brennan, M, (2011), “Integrated Project Delivery: A Normative Model for Value Creation in Complex Military Medical Projects”. PhD Thesis, University of Illinois at Urbana-Champaign, IL, USA.

DESIGN

BID CONSTRUCTION

DESIGN

BID CONSTRUCTIONA/E/RFP

DESIGN

BID

CONSTRUCTION

23

IDBB - Fort Belvoir Community Hospital, Fort Belvoir, VA

• 4 years (2007-2011) - 2 years quicker than other projects of similar size and complexity

• ~$1.2 billion program, 1.3 million square feet

Sources: Brennan, M, (2011), “Integrated Project Delivery: A Normative Model for Value Creation in Complex Military Medical Projects”. PhD Thesis, University of Illinois at Urbana-Champaign, IL, USA.http://usmilitary.about.com/od/armybaseprofiles/ss/belvoir_9.htm

24

Source: Morris, R. (2007), BRAC Industry Day II: San Antonio

A/EContract Design Construction Mods Move

Advertise CM

Services

Neg.

Advertise/ Evaluate

CM Services

A/ETask Order

RFPPreparation

U.S Army Core of Engineers - Notional Project

Advertise/Evaluate

FinishDesign Construction

Mods Move

Design

A/EContract

Construction Mods Move

Construction Mods Move

AWARD

24 months

22 months

23 months

25

“Fast-Track”

22 months

Source: U.S. Army Corps of Engineers, (2008), “Integrated Design-Bid-Build and its application to the BRAC05 NGA New Campus East, Engineer Proving Ground, Fort Belvoir, VA”.

26

(Fazio, Moselhi & Theberge,1988) 7777

Schedule compressionSchedule compressionSchedule compressionSchedule compression

28282828

Also known as:

• Scheduling with time constraints

• Project time reduction

• Least-cost expediting• Project compression

• Least-cost scheduling• Optimized scheduling

• Schedule crashing• Project acceleration

Schedule compression

29

Contractors, Owners and their agents

30303030

For Contractors:For Contractors:For Contractors:For Contractors:

• Imposed contractual time

•Early completion bonus

•Recover from experienced delays

•Avoid adverse weather conditions

31313131

For For For For Owners:Owners:Owners:Owners:

•Meet fiscal requirements

• Recover from delays caused by:• Change orders

• Late approvals of submittals

•Meet changing market conditions

•Meet business operational requirements

•Minimize project total cost32323232

Targeted Original 35353535

Time-cost trade-off

Definition

The process of establishing the delicate

balance between the overall cost of a

project and its duration, to achieve the

desired overall project objectives, is

referred to as time-cost trade-off.

Why?Although each activity is planned to be carried out in the most efficient manner, the generated schedule may not lead to least-cost project duration

Minimize project total cost

36

33333333

ExactExactExactExact

OptimumOptimumOptimumOptimum

Optimization

ExactExactExactExact


Optimization

Near Near Near Near


GA

Harmony

Search

Near Near Near Near


GA

Harmony

Search

ApproxiApproxiApproxiApproxi----

matematematemate

Heuristic

Rules of

thumb

ApproxiApproxiApproxiApproxi----

matematematemate

Heuristic

Rules of

thumb

34343434

Cost (Activity level)Cost (Activity level)Cost (Activity level)Cost (Activity level)

37373737

ERROR: undefined

OFFENDING COMMAND: f‘~

STACK: