>> thank you. thank you. it's a pleasure tobe here this afternoon. have i spoken to any of you before? >> just a couple of weeks ago, right? >> yeah. >> yeah. ok. well, i won't tell that storyagain, ok? 'cause you've heard it already. but it was mentioned that i'm on the high-speedrail project. i just left there to come over here. a question that was asked me earlieris that project going to happen and i still have doubts and i've been on the project forover two and a half years now. politics and construction, i will say do not mix. and attorneysand construction do not mix. so, that's what's
happening with the high-speed rail projectright now. too many attorneys and too many politicians but it's a great project. we weretalking earlier about being able to live here in fresno, commute to los angeles or san franciscoand be back for dinner in the evening. that would be a great, great opportunity to dobusiness and to expand people's outlook from fresno to northern and southern california.as the professor mentioned, i'm in a contrast design-bid-build with integrated project managementor integrated project delivery because i believe firmly that design-bid-build is going to bea thing of the past. the high-speed rail is a design-build project. and most of you ifyou stay in the industry will get involved in design-build projects and cm at-risk projects,p3, public private partnerships, alliance
contracting and so on and so forth. so, idon't know what you know, you definitely don't know what i know. so, it's going to be kindto be a meeting of the minds. please raise your hand if you have a question or if i'mnot clear or you have an example that you want to share with me. so, i assume everybodyknows the three-legged stool of can--design team, owner's team and construction team.in the construction process, those are the three main players. and if this was an orgchart, there would be all kinds of offshoots from each one of these legs. constructionteam would have a bunch of subcontractors. the owner's team would have sub-consultantsenvironmental documents, its own team members. and the design team, again, like the contractorwould have a bunch of sub-consultants. this
is the design build--design-bid-build process.so, i'm going to tell a story. years ago, i built a school in northern california here,that have an indoor swimming pool. i was a project manager. i worked for a general contractor.and had an indoor pool, shower room, locker room and in order to facilitate the showers,there was a 250 gallon water heater, a.o. smith water heater. so, plumber made a submittal.got it approved and ordered the water heater. i had my carpenters build the mechanical room,the house, this water heater. you know, a concrete slab, we studied it up, sheetrockedit inside and out. there was a vent for the fumes, combustion air vents, gas line, floordrain, door, everything. the plumbing contractor comes to me one day and says, "ron, the waterheater is at the plumbing supply house and
it's a big, big sucker. it doesn't look likeit's going to fit in the room." and i said, "did you measure it?" he says, "yeah. it's36 inches wide." and if anybody knows what a door is 36 inches wide and then you've gotto stop so that reduces it. and then if the door is open, you have the door itself todeal with. push them to shove the water heater wouldn't fit through the door. i call thearchitect and i said, "mr. architect, how did you plan in your design to get this waterheater in the room?" he said, "well, it's your problem. you're the contractor. you missedsequence to work. you should have put the water heater and then built the room aroundit." i said, "mr. architecture, i've never done that before." and a 250-gallon waterheater is about five times bigger than the
water heater at your house. and you can getthe water heater in and out at your house. i guarantee it. i said, "you know, i've beenin this business for a while and i've never done that before." i said, "what happens ifthe water heater fails." he said, "oh, this is such a high quality water heater that it'lloutlast the building." i said, "oh, come on. come on, i don't believe it." so, i calledthe manufacturer and they said, "yeah. it's of high quality and how you get it in andout is not our business but if you take it apart to get in and out of that room, yourwarranty will be void." so, here i am. i'm the project manager. i'm working for a constructioncompany. and essentially, i'm going to have to tear a door out and rebuild the wall. andmy boss is going to be ticked off because
i'm spending money 'cause i missed sequenceto work. anybody got any comments about that? anybody know anything about that? how wouldyou do it? who's wrong? which one of these legs is responsible for not being able toget the water heater in the room? was it me on the contractor esteem 'cause i missed sequenceto work? was it the designer 'cause he didn't make a door big enough or was it the ownerbecause he needed a 250-gallon water heater for his many--in this case, kids projectedthe use of the room at one time? how do you resolve that? who is responsible? so, in verygeneric--yes sir? >> i would think the design [inaudible]. >> ok. why?
>> oh, because the design [inaudible] verifiesit didn't fit to the door. so, they could have [inaudible] see where they built theroom and changed the plans [inaudible] water heater. >> actually, that's a good thought. so, whatyou're saying is the contractor needs to verify everything that the designer puts on his plan.to some--well, i know. i'm not going to argue with you there to some degree. to some degreeand we'll go through some slides here about the responsibility of the design team, theowner's team and the construction team. very generic but these bullet points have beenwith me for 25 plus years and they're what, in my opinion is the foundation for claimsand change orders if the individual entities
do not adhere to these responsibilities. so,what's the owner's responsibility in the construction process design-bid-build using sound discretionand evaluating bids and qualifications? that's the important for contractors to know thatit's a sound process preserving the bidding system, funding the work, owners need themoney. again, back to the high-speed rail project, if you've read about the bond issuesand people are trying to say that what's happening now. it doesn't really meet the requirementsto the bond for 10 billion dollars and they're trying to stop the work. the owner needs tofund the work, providing surveys, again, high-speed rail, physical descriptions, securing easement.last week, i was at a meeting, 205 pieces of property were on the critical path forthe contractor to high-speed rail project
is acquired six. so, there's 199 pieces ofproperty still outstanding. it's the owner's responsibility. warranting the adequacy ofthe plans and specifications kind of goes to what we're talking about. is the ownerresponsible for the plans and specifications? suitability of furnish material, if the ownerprovides disclosing superior knowledge. there's a whole issue again at the high-speed railproject about the environmental document and was all the information disseminated to thecontractor as far as what they needed to do as for as mitigation and monitoring in theenvironmental process. prompt action and clarifications provide final interpretation and cooperating,assuming ultimate responsibility for design professionals. i don't know if in any of yourcourses, you talked about the spearing doctrine.
is anybody ever talked about that that theowner--yes sir? [ inaudible response ] so, in the design-bid-build process, the ownerultimately is responsible for his design consultants, plans. that's why owners end up paying forchange orders. they don't like it. they--but it's what happens. in fact, i've been in manydiscussions with owners saying the designer should pay for that. but mr. owner you warranteed,you guaranteed that your consultant, your agent design the project and if you want tosue your designer, that's fine. i'm not, is the contractor going to do that? that's upto you. architect's responsibility, reduction and coordination of plans and specification,technical accuracy, specific design, another
words to the design needs to be specific ifit's--for example if a water pump suppose to raise water five feet, it needs to do that.you know, it needs to do that. the design needs to be specific. it needs to work. itneeds to comply with the code. we all know about ada requirements. that's the architecture'sresponsibility when he designs a project to make sure the door is wide enough. lever handles,the halls ways. there's proper entrance into the building. the bathrooms meet ada [phonetic]code requirements. that's the designer. interpretation of the documents, submittal review, promptand timely response, evaluation to the work, usually the architect goes out and looks atthe work and says, "yeah. this is what was intended." that's what was on the documents,diligent skill and good judgment of professional.
contractor, who did they inquire to ask questions?reasonable review. back to your comment, yeah, the contractor is required to reasonably reviewbut as i used to argue when i was a contractor, you know, i've had 30 days, 60 days to reviewthe plans. you've had a year or two years in the design and you expect me to find everythingthat you designed wrong. i'm not your plan reviewer. plan and schedule the work. supervisedirect and install the work. yeah. adequate workmanship, correction of patent errors,errors that are patent, that are obvious. not that are hidden, that are obvious, coordinateall parts of the work. again, back to the water heater scenario, i was told by the architect,i missed coordinated it, missed sequenced it. review, submit and coordinate shop drawings,of course, pay everybody, have adequate insurance
that here are the safety standards and warrantyand clear title when the project is done. so, going through any of those, back to thewater heater scenario, did anything jump out at you? back to the story about the water heater.luckily, i lived about four, five blocks from the school project that i was building whichwas great. i can go home for lunch. and those of us that have been in construction for awhile, that's a rarity that you get do a project so close to your house. so, i was really distraughtabout this water heater and the fact that i missed sequence to work. you know? i'vebeen a contractor for a while. so, on a saturday, i walked over to the school and the plumberwas there doing some work on saturday. and
it just done, done me that it might be a codeissue. and i asked the plumbing contractor if he had a copy of the uniform mechanicalcode and he did and instruct. and the code says that you have to be able to remove andhave access to a water heater. so, back to this scenario when it said the architectureis responsible for code compliance, the architect and his design, when he didn't design a doorbig enough to remove that water heater. he violated the uniform mechanical code. so,he had to pay not only to take the door out but to replace that door with a wider door,a three foot six door which that one looks like. same height because you could put thatwater heater on a dulling tippet back and get it in and then once it was in the room,there was enough ceiling height to jock it
around. so, again, back to the owner beingresponsible for the designer, the owner ended up paying for a change order and he had adoor he couldn't use because i give him the door. i didn't want it but took the door outand replaced it with a brand-new door. so, going to integrated project delivery, thoseissues that we just talk about as far as the water heater and in design-build, those issuesare worked out amongst the team. so, and you don't have those issues. they should havealready been done. and if you model the project, if there was a beam model, maybe you wouldhave seen it there. maybe you could have modeled the water heater in the room. you could definitelyhave a furniture fixture and equipment schedule. everybody would have talked about it hopefullyand maybe there wouldn't be an issue. so now,
i'm going to move from design-bid-build tointegrated project delivery. you've already probably read it. integrated project deliveryis a project delivery approach that integrates people systems, business structure practicesinto a process that collaboratively harnesses the talent and insights of all participantsto reduce weight, optimize efficiency through all phases of design fabrication and construction.you see--you kind of see the difference. this is in the siloed approach. there's no three-leggedstool here. everybody collaborates. and the reason--when you look at this--can everybodysee this? you see non-farm productive index. construction, construction isn't very productivecompared to other industries. we're always starting with the new project. typically,it hasn't been built before. i mean facets
of it have. i mean, i've been doing this forclose to 40 years and yeah. i have a lot of knowledge and lot of experience but i starta project and there are facets that i've never seen before and never done before and there'salways new technology. but i'll tell you one thing. i definitely check to make sure equipmentfits in the room that it goes--that it's supposed to go to. i mean that was a lesson learnedand as you get into this business and you keep doing projects, all these things getembedded. 30 percent of projects don't make schedule or budget. so, why do it? design-bid-build,92 percent of the projects, owner said, architects join or typically not sufficient for construction.38 percent of carbon emissions in the us are from buildings, not cars. 37 percent of materialsused in construction industry because it becomes
waste. it's not planed well, trial and error.owners are dissatisfied with the process because they spent a lot of money. a project thatcomes in with 10 present change orders considered a good project but if it's 100-million dollarproject or a 200-million dollar project, 10 percent is a chunk of money. and if it's aschool, that will buy a lot--that 10 percent will buy a lot of computers, furniture, programs.there's a little learning in repetitive failures. again, i've learned a few things but i don'tknow at all. no focus on creation and delivery of value. again, this is design-bid-buildand default trust and integrity in the construction process. if you're a construction manageror an owner's rep or an architect, do you think the constructor is going to rip youoff? is that the general feeling? change orders.
everybody talks about change orders like it'sa four-letter word and it's a bad thing, and contractor are just out to get you. my opinionis if the plans were deficient, if the owner hasn't planned well, they've asked for it.they've ask to get change orders. coordination and collaboration among team members. backto the water heater scenario, did the mechanical engineer talk to the architect when the mechanicalengineer specified this 250-gallon water heater and say, "mr. architect, i looked at thisthing in online or in the switch catalogue or the--or at the plumbing supply house andit's three foot wide. you need to put in a door." they didn't coordinate. and one ofthe big issues is the architect designing to the owner's budget. do they really knowwhat it cost? and then bringing contractor
subs and suppliers on board during the designphase typically doesn't happen. typically doesn't happen. and who knows at the building?and a lot of times they're not consulted early on. between 40 and 50 percent of all constructionprojects running behind schedule, the biggest cost and impact in construction today is inefficiencies.built into the way projects run and manage, not the cost of materials or the cost of labor.a business structure design build is a business structure. p3, public private partnerships,cm at-risk, and the process is to collaborate and use talent in inside and participate inthe design, in fabrication process. integrated project encourages early contributions ofknowledge and experience that's best for the project not for the individual silo, not forthe contractor to make money on what's specified.
the architect to get some design award andthe owner to reap everybody off and get solely what they want out of the project. again,back to preconceived notions, prejudgment, prejudice and i use that word in regard topreconceived notion. does the architect just out to get in an award? is the contractorjust out for change orders? or do you have mutual respect, the understanding that everybodyhas their own field of expertise and they have a lot to offer to the project. all memberswill benefit from integrated project delivery. i'm not going to get in to contract structure.in other words, the contracts between the integrated team members but there are waysto structure the contracts so that all members benefit in dollars, in reward, early goaldefinition. what's and again, in design-bid-build,
the contractor typically bids on a projectbut he doesn't know what the goal of the project is. is it schedule? is it cost? is it sustainability?i did a police facility years ago and while i was managing the design of that police facility,in the existing police facility, there was an officer who was killed in the lobby ofthat police facility and it was friendly fire. in other words, he was shot by another officer.and it happened because somebody came into the lobby of the police facility, a youngman with a gun, pulled the gun on the clerk behind the counter. she hit a button. allthese officers run to her assistance. one officer had already changed his clothes andhe wasn't in uniform. somebody [inaudible] gun, fires or shots or fired the officer that'snot in uniform. get shot and killed. so, i'm
designing a new police facility. what do youthink the emphasis of that new police facility was? officer safety. officer safety. so, therewere bulletproof walls, the separation like this room here from the hallway was bullet-resistant.the glass was bullet-resistant. there was pass-through for packages. the public wasseparate and could not enter until they were called in or escorted in. so, that becamethe emphasis of my project. the police chief, the city manager, city council, nobody caredwhat it cost at that point. they didn't want to lose another person. the contractor again,he didn't know that when he did it but that was the emphasis to that project. enhancedcommunication, focus on team performance, leads to communication between all participantsthat's open, straight, and honest. i was just
to have conversation with the professor earlierabout on the high-speed rail that i mentioned a year ago that there should be global calendarfor the project. in other words, if somebody is having a design meeting on--we'll say pgneor gas lines and somebody else is having a design meeting about union pacific and a crashbarrier between high-speed rail and union pacific trains. that should be on a globalcalendar. so, in your scope of work, if that meeting is of interest, you should know aboutit. at least know about it and if your schedule allows, you should be able to attend to enhancecommunication. clearly define standards. i think that's self-explanatory. standards forthe project should be clearly defined, documented, appropriate technology, integrated projectdelivery, and bem [phonetic], go together
like a horse and carriage. i mean they justwork. and if you're getting involved in bem, get more involved in it. as a kid, i was amodel builder. i think it's great to be able to model something before you build it. tounderstand how it goes together, to look at it from all sides and really understand it.that's the advantage of cutting-edge technology and bem and integrated project delivery. highperformance, sustainable design, high performance buildings, every building now has some leadcertification. every building now goes through a commissioning process, high performance.they need to function. they need to per-function its standards that were unheard of in 15 yearsago. again, back to the police facility, security officers' safety, you guys know what you haveto go through at airports. security is a big
issue. so, promote early involvement of key participants.if i was building a project or designing a project or managing a project, managing aproject right here at fresno state, who should be the key participants? what's the last buildingthat went up around here? the library is fairly new. let's talk about the library. who shouldparticipate in that process? library staff? how about somebody from the cm department?maybe and maybe not. anybody got any other ideas on who should participate on managingthe design? i've got an architect on my team, i've got a contractor on my team but i needto know the program for that library. how big it should be, what you're going to putin it. should i talk to the head librarian?
should i break it down a little bit and talkto just the librarian? these are questions that you need to ask and one thing i'll sharethis right now and walk out to this room with it. you need to include the maintenance staff.almost from number one because they're going to leave with that building with that library.i mean i've worked on college campuses where people and the maintenance staff were therefor 20 plus years. and they lived with the headaches of projects that were built anddidn't function where they couldn't get to a shut-off valve or an air filter. or theproject just didn't work from a maintenance point of view or the carpet had to be tornup and just didn't wear well. you know, or the hardware on the door fell apart becausewhat was specified didn't have longevity that
was required. so, maintenance staff is importantand there again, maybe it shouldn't be the maintenance superintendent. maybe it shouldbe one of the guys down lower. these are all things you work out, equitable balance haverisk and reward in the--again, those are contract issues between members of the team, and theypretty much follow the responsibilities. in other words, the architect is going to takeon the risk of the design. the contractor will typically take on the risk if outgoestogether and then those don't change but they may participate and share some of that risk.the compensation structure that's best for the project to open book, again that's differentthan design-bid-build where everybody shares the cost. there may even be a profit pooland if it increases, everybody shares. and
if it decreases, everybody takes the loss.there's no winner. there's no loser, it's about the project. clearly define responsibilitieswithout chilling open communication or risk-taking, implement management and control structuresbuilt around team decision-making. again, the difference in the ipd model is phenomenal,when everybody gets together upfront and talks about this staff and resolves the issues andreally, you never know where the solution is going to come from. and like i said thismorning, today, i was in three different design meetings in high-speed rail and everybodycomes up with a solution one week and then it gets massaged and more input and it getschanged and it really is the best solution. what happened at the high-speed rail was therewere five bidders on the high-speed rail project
for design-build teams and everybody couldsubmit alternate technical comments. so, if they had a different way to do things thanwhat was put out by the high-speed rail authority which was 30 percent plans. if they had abetter idea, they submitted it and if the high-speed rail authority accepted it, theycould bid that portion of work, knowing that it would be accepted if they won the project,but the winner of the project now, tutor perini, zachry, parsons gets to look at all thosealternative design concepts and see if they can incorporate them into their design. so,in other words, the best mine in each of those design teams are now focused on one design-buildteam. and some of the concepts were worth it. some of them weren't worth it. i meanone design concept is crossing the san joaquin
river just to move the bridge up the rivera little bit. and if we can get that property 'cause it's a shorter distance, if anybodyhas ever lift up the river but the span is shorter, plus there's a pg&e gas line, plusthere's a kinder morgan oil fuel line and inch is in diameter, so moving it away fromall that stuff will enhance the project and save some money. so, in the traditional scenario,it says here design effort, starts out very slow, comes through a construction documentand then here in the bid process, we're still designing and we're still designing when wego in the construction. but right here, somebody has already given this a cost. they bid it.this is the possibility, the change order is right here. cm at-risk, although the cmcomes on early, he guarantees the process
here, guaranteed maximum price. it's stillbeing designed and then it goes in the construction design-build. the advantage of this cm at-riskdesign-build integrated design. one advantage is that the selection process is qualificationbased. everybody know what that is? you've got to submit your qualification, it's nota hard bid project, usually you're allowed to submit the cost later in the process butyou get pre-qualified you're selected on your qualifications, your ability, your experiencebecause in this scenario, the traditional design-bid-build scenario, the one that makesthe mistake can win. if the project is--we'll say the engineer's estimate is 10 milliondollars, somebody makes a mistake and bids it at 9 million and they left out a millionand they try to make it up in their deficient
or they would get the project a low bid becauseit's the lowest number and people believe--there are people who believe that because it's thelowest number, it's the best value. and sometimes, it's a mistake. i mean when i worked on thecontractor side, an elementary school was mirrored in the design plans. in other words,there was a building and it was duplicated again and then you go--went through and inthe furniture, fixtures cabinets, if you looked at one sheet and didn't realize that thosecabinets laid out for each room were actually duplicated in the other building, you'd beoff by 50 percent 'cause there were two buildings. it mirrored each other, they faced each other,and if you didn't have that whole concept. and again, in the bid process, sometimes contractorsonly look at their scope of work like the
cabinet guy. he looks at this cabinet sheet.he doesn't look at the other and realized there's two buildings here, you know? or therewasn't a note and that actually happened on a project that i was the project managersand we took the bid, and we took the project and we were 50 percent short on the cabinet.and my boss said, ''let's do it, we're going to do it''. i left and went to work for thecity of roseville before that project really even got into construction but it ended upbad. the contractor i worked for went out of business. the school was a year late indelivery. there were bunch of other issues related to that project. so, it turned outbadly, the bonding company came in and took the project over and it started with cabinetsand trying to cut everybody's bid to make
up for that one mistake. so, constructionmanager at risk design-build integrated design, you get to select the contract. they're noton the low bid, not on the mistake but on their qualifications. so, you get into design-buildright here based on some level of design, the contractor submits a number and startsdesigning. like the high-speed rail project, we gave them 30 percent design documents.they can change it if they have a better idea. and they do like i said move in the bridgeacross in the san joaquin. schematic design, these are the typical facets. schematic design,design development, construction documents, this is less. it shortened at the end. you'remaking up time. integrated project, everybody is on board here at the conception stage.detail design, schematic design, design development,
implementation which is essentially constructiondocuments and the construction, it's almost flat-lined and it shorter yet, it's shorteryet, because you bring everybody together right in here, this ramps up. and as i saythis right here, this is little money. right here, this is big money. this is bricks andmortar, concrete, a mistake here cause you a lot of money, a mistake here especiallyif it's a bem model. you know, you can change it, you can see where the conflicts are. again,the participants rolls, what's most important on the project i hope to take away again isthe maintenance staff, whatever the building is. they live it. they breathe it. they knowwhat the issues are and what they have. they know what the issues are and what they wantin the future or they'll learn if you give
them the opportunity. pre-qualify the membersof the team based on experience, their past history, their financial status. one thingthat happened in the downturn, i was working at a community college in livermore las positascommunity college, 250 million dollar bond program. a number of projects, but what happenedwhen the market started to turn down, contractors got hungry and they were throwing a numberat any in every project. they just wanted the cash flow. again, the one that makes amistake wins or the lower bidder and it was a tragedy. there were subcontractors who bidprojects. in fact, i did a 50 million dollar theater project at las positas and the structuralsteel guy, the biggest sub-package, the structural steel went bankrupt. the contractor had tobring in another structural steel guy. they
hired the foreman from the previous companybecause he had all the knowledge about how the stuff goes together but it was ugly ina lot of respect. so, what happened was we changed the delivery model. we went from design-bid-buildto cm at-risk, to design-build, to pre-qualify. so, weren't taking a risk with contractors,so just throwing numbers and went in projects that they really couldn't do. another commonoccurrence is sports fields. you want to pre-qualify landscapers. you don't want your householdlandscaper to build a sport field, a baseball field, even if it's little league field. youwant somebody who understands what level is. i tore a hamstring by stepping in a hole onetime playing out field in an adult league. so, you want to pre-qualify these folks andthat's what pre-qualifying members of the
team based on experience, financial were withof, their bonding capacity, their references. you just don't want somebody considering interestand seek involvement of select third parties, subcontractors. again, their experience, identifyorganizational and business structures best suited, design-build, cm at-risk. developproject agreements that define roles and accountability. like i said, we won't--but this--those ofyou that have taken any business law know that, you know, you can distribute risk anywayyou want but it's bets to really distribute it to the one that can bare it, whether it'sthe contractor with ways and means, the designer with design integrity involve all key stakeholdersin the programming process back to those charts upfront. upfront where the little money isinvolve if it was a campus project involve
the dean, involve some instructors. and sometimes,it's really hard, i mean everybody has heard the term herding cats and sometimes it's likethat. this professor has an opinion, the dean has an opinion. the maintenance guy has anopinion. and if you manage design, if you're--i'll say the integrator, the one that's taken allthis stuff and really digesting it and coming out with an answer. and again, i've givenyou some examples, the police station example. the driver there with security, so when youtake all these inputs, does it really hit that main goal for security, you know? thispolice facility, there was a jail, again officers' safety. you don't want a prisoner to takeadvantage of a jailer because of the design of the building. you don't want a jailer cornered,you know, you want the prisoner to be able
or i should say the jailer to secure the prisonerto see the prisoner, all these things come to play. and you need the stakeholders toidentify those. again, key technology such as bem, cost structure is developed earlierand in greater detail in conventional projects. typically, there's a budget. again, we'llsay 10 million dollars for the project. the designer tries to design to the 10 milliondollars, really doesn't know he puts this in and that in, in ipd, everything is takenapart. scope, number one, you're going to have the three main players there. you'regoing to have mechanical, pluming electrical. and you're going to set a target budget basedon the mechanical's experience, the electrical's experience, the plumber's experience on projectsis similar size in scope. and you're going
to set a target budget. you're going to knowwhat the mechanical portion of that project is going to be. you're going to design toit. and if you don't, you're going to be able to work things within the budget but you'renot going to find out and i'm sure you've heard of many projects. it goes out to bidand got--we had a 10 million dollar budget. in fact, that happened to me in the city oftracy. renovated an all theater in downtown tracy and the project budget was 12 millionand on bid day, it came in at 14 million. what happened? a lot of things happened, butthe main thing is that the cost structure wasn't established and the designer kind ofwent outside by listening to so and so, add a little of this, add a little of that. so,in ipd, the cost structure is defined early.
everybody is on board, understands performancegoals are developed again whether it's going to be lead, gold or silver. again, what thesecurity needs to be, how the building is going to function. successful outcome matrixare developed and agreed upon, preliminary schedule is developed and its linked to themodel. sir? >> i have a question about the bem model.through your experience, one, there's a requirements of the use on bem as a submittal and as executivetool between different [inaudible]. in the contract, how do you specify the ownershipof [inaudible]? how do you share the risks [inaudible], you know, in that preexistingmodel? is there any except on the--up to aia, the u2o2 [phonetic] [inaudible]? have youused any customized top of the contrast to
address that? >> i have not. i have not. you know, the aiais setting the ground work, and we're going to use bem. we're using bem on the high-speedrail but i haven't dug into it to really understand what the--'cause those again, they're contractualissues and--so, i can't answer that of the top of my head but a high-speed rail willown it when it's all said and done. that's as far as i can go on, on those kindsof issues with bem. design decisions are made on best to project basis. again, what's bestfor the product and those goals are set at the outset, you know, again, you've heardabout high-speed rail. it's supposed to go 220 miles an hour, you know, from san franciscoto la. it's supposed to move a certain amount
of people. those are the goals best for theproject. there's a definitive budget, there's a timeline. in the bem model, the beam modelwill help facilitate that. one thing that i'm trying to see if i'm going to get to it,visualization of the model is tied to the cost model similar to a cost loaded schedule,a cost loaded bem model, all the pieces fit together and you know what it's going to cost.you keep feeding it. scope is fixed, price is fixed, the owner sign is off on it, whatwill--and again, this happens early on. everybody understands what the process is, what theoutcome is going to be. leadership remains in the traditional roles of the participants.again, back to risk, the architect takes his traditional role as far as risk and responsibilityand leadership and the design, the engineers
whether it's the mechanical, electrical, plumbing,the owner of the subs typically lead in their area of expertise. then, the design development,it's unambiguous, fully defined, coordinated, validated, design--the integrated detail designphase period is longer and more intense in traditional design. again, everything shiftsupfront, all major building systems right down the furniture, fixtures and equipment.again, in the bem model, ipd and the bem model are made for each other. agreements are reachedearly, the tolerance between the trades enable--in other words, all the conflicts are resolved,everybody knows the space--i mean i'm sure you've talked about ceiling space. the bemmodel shows you where sprinkler systems are and light fixtures and the speakers. and everybodyknows the space that they can work in where
is i've been on project design-bid-build projects.after the project was bid, everybody is standing around scratching their heads saying, "ok,where am i going to run this and where am i going to run that? and you mechanical contractor,you get to run your dock there and i'll run my sprinkler line here and the electricianis going to run his stuff there," and it takes time. again, back to the inefficiencies italked about earlier. you've already bid the project. you've already assign the cost toit. now, you're trying to coordinate your work with three or four others subcontractorsin a restricted space. and the bem model allows for prefabrication which is less waste andagain, i'm trying to anticipate slides here. specifications are developed based on prescribedand agreed systems. in other words, the specifications
are really already outlines. everybody's talkedabout it, everybody has been involved. they know what the hvac is, they know. with the250-gallon water heater is and the size. it's already been agreed, specified, and it's partof the documents. the construction document phases, i showed you significantly shorter.the goal of ipd is to document how the design intent will be implemented not to change ordevelop it. it's already done where bem is used, the shop drawing phase that typicallyoccurs later in the process will be reduced and eliminated. again, we'll just take thethree major subs. they know what they're going to put in. they've already vetted it. they'vealready talked to the suppliers, there's not going to have to--the contractor is there.they know it will fit, they know it will work.
there doesn't need to be this shop drawing,submittal phase. in other words, mr. designer, this is the 250-gallon water heater that i'mgoing to submit and use. that's already been decided. they know the manufacturer, the sizeand it just makes things prefabric--here, this is what i was--prefabrication of somesystems could commence because the model is significantly fixed to allow prefabricationto begin, again using this ceiling scenario. everybody knows what their tolerances are,what their spaces, dock work can be prefabricated at the shop, less costly, less waste, morecontrolled, cheaper. rehearsal of construction is enabled through 4d and the cost through5d. again, back to the model scenario when i was a kid being able--i mean i'm older thani look, yeah, but i had a model of an eight-cylinder
engine that i put together, it was made outof plastic. what a great learning tool, the pistons worked, you know, you wire the sparkplugs, all that sort of thing to be able to do that in a building and rehearse the scheduleand sequence of the work. some of my friends at turner construction, if any of you haveflown out of the sacramento airport. turner construction won that project because theyput together a bem model to show the airport authority that they could sequence the workand not disrupt airport operations. they showed how they were going to stage the project,they showed how they were going to sequence the project, and not impact airport operationsand flights which is an important thing. that's how the airport makes its money. they didn'twant to screw around with any shutdowns or
disruptions, so turner construction was ableto show a model on how they were going to do that. specifications provide narrativedocumentation of the design intent were necessary like i said, it's upfront, implementationdocuments, visualize the project for participants who aren't involved in the development ofthe model. in other words, there may be some subs where the all the works hasn't been boughtout but with the model, they'll understand it back to the theater scenario for example.you may bring in the ceiling subcontractor, but you have the space already modeled. youknow the seats that are going to--but you can model the arrangement, ada, maybe youreally haven't decided the width 'cause that'll determine how many seats. maybe that's stillup for debate, the color definitely is, maybe
you're going to have wood armrest but anyhow,you have the model and you can make sure all this stuff fits. also hospitals, or againback to the police facility, be able to show people who didn't participate early on inthe model how the model works, what their space is going to look like. people who don't--whocan't look at a set of plans and really visualize it in 3d what that or what this, for example,classroom is going to look like? it's a great, great tool. back to like i said, police facility,police officers typically don't read plans. educators typically don't read plans. librarypeople typically don't read plan. so, to make sure that what functions for them in theirwork process is in the building that's going to be designed. the model is a great tool.agency review, school buildings have to go
to dsa. hospitals go to go ashpan [phonetic],smaller projects, city building department. what's happened recently is agency reviewin britain is driving bem. in other words, it's a requirement. if building departments,if dsa, if ashpan required that all plans are submitted in bem, those of you in thisroom or modelers or want to be modelers would be able to jump right on a job. and i thinkthat this is going to happen where the agency is--and the agency review, the approvers aregoing to drive the use of bem, it's going to be part of the project. and back to yourquestion, those issues about who owns the model are definitely going to be worked outbecause agencies--approval agencies are going to want submittals. performance-based codeanalysis, one in bem, piece of cake. integrated
process require builders and trades be involvedin preliminary and submittal review of the documents. in the model, all this stuff iseasy compared to having a piece of paper and submittal. so, agency review is really goingto drive in my opinion, the integrated project delivery and bem. this is the future. andagain, about buyouts, you'll be able to do it from the bem model. stuff that isn't--imean whether it's whiteboards, carpet, stuff that typically is later on in the processwill be able to be defined in the model and bid in the model. the quantities will be defined,early involvement guarantees contractor participation. the contactors that have agreed and typicallysigned the agreements early on using the three main mep are pretty much guaranteed to participatein the project, which is a plus for the contractor.
of course, they may be required to have anopen book and show the owner and the team, what things cost, their market, their profitand that's ok, this is america. we expect everybody to make a profit. we just don'twant them to make a killing or we don't want them to make it of somebody else's back. so,if it's reasonable, everybody sits around the table, agrees and like i said, there caneven be agreements about a specific profit pool that the mechanical, the electrical,the plumbing, the structural guy, everybody says, "i want to make this amount," goes intothe pool and whether it goes up because they saved and it all goes in or whether it goesdown because there was a mistake or there was an issue that didn't figured, everybodywins and losses together. kind of like family,
huh? a family budget. contract administration,i'll just say that as a construction manager consultant, one of the things that i've typicallysold working for where parsons brinckerhoff. before that, i worked for harrison associates.before that, i was the in-house project manager for the city of roseville and i bought theservices of value engineering, constructability reviews. everybody know what a constructabilityreview is? looking at the set of plans and making sure that it's coordinated. again,back to the water heater scenario that the mechanical that i did talked to the architect.one of the things i looked at right away in a constructability review is did the landscapearchitect talked to the electrical engineer? because i found projects where they put anirrigation controller and has no electric
going to it, because the landscaper said,"well, i'm going to put that irrigation controller on the back of the trash enclosure," or somedidn't place or in a mechanical room. and again, never coordinated or tells the electricalengineer, so the electrical engineer doesn't provide power to it. so, in the bem model,constructability is already decided, gone through, the contractors been on board. heknows how he's going to build it. he knows if it's constructible. the values are alreadythere. everybody on the team has decided that this is the best value for the project andeverybody has had input, it's within the budget. it works. the owner says, "yeah, that's whati want. that's what i want." in that lab, in that college science building, i want thosefew modes to move, however, many cub feet
of air out of there. or, back to the policefacility, i have enough air in my property and evidence storage room that when i bringin those bales of marijuana, it doesn't stink up my whole building 'cause i can excavatethat air quickly--fewer rfis, so, from a construction management perspective. again, this is goingto change the industry. those services are going to be not needed. rfis are going tobe fewer. people won't be asking questions, those are already been--and the submittals,again the process, the administrative task of reviewing have gotten a submittal fromthe contractor, logging it in, evidence submittal log, taking that submittal and sending itto the architect. the architect log it in, tracking it, making sure it's returned andback and forth. better understanding of the
design intent and more prefabrication again,so less waste, more material is factory generated, less injuries. again, thing are defined, spacesare already controlled. you can do it in a shop as opposed to doing it out in the fieldto more efficient. and the model ends up being the as-built condition. a schedule tide tothe model to allow visualization of deviations from plans, sequence and duration, the contractor,the superintendent, the foreman can look at the model, plan and schedule the work. trydifferent scenarios. what if we do this? no, what if we do that? in the schedule and seeif it works, especially, i made a comment to a team in my office who was going aftera site development design for waste water treatment plan and i said, "you should modelit." and what it was, there--in this waste
water treatment plan, there were going tobe about five different projects in upgrading this waste water treatment plan. in the rfpwas to design essentially a contractor's yard that would facilitate all five projects. theywere all going to go simultaneously but about three of them were going to go simultaneously.there was going to be at the peak, maybe 400 construction workers on site. they didn'tmodel it, they didn't get the job. people have worked with me, but can you imagine howyou could show in the model how you're going to manage 400 people entering and leavingthe site everyday? how you're going to--where your lay down yard is going to be? where areyou going to store materials? where that's going to be and sequence it for each one ofthese project based on the specific project.
would have been a winner? would have beena winner? but they didn't do it but you can do it in the bem model. close out, anybodywho's been involved in a project, closed out is the hardest part of the job. getting allthe warrantees, guarantees, getting the as-builts. like i said the bem model in and off itselfwill be the as-built condition 'cause it will be changed and tweaked as you go along. compareactual to plan performance, you can go back and have lessons learned, so the next timehopefully you do it better. the bem model integrated into the building operating systemfor the future being able to--for that next project. again, working on a college campus,there is always submittals that's going to come along and if you have a model and youcan see where--you built the library where
the stubs for the water and the sewer andyou're building another project next to it and you know what the invert is, you knowwhere everything lays. it's just to an advantage expediting that future project as supposedto digging through number one files to find old plans. so, the bem model will be great,great for that in the future. so that's it. screen goes blank. no questions? i was completelyclear, explained everything. do you guys know what an integrated project delivery is aboutnow? and really design-build is just one form of the integrated project delivery and youcan take it to a greater extent, get more people involved, involved earlier, shift wherethe guaranteed maximum price is, shift risk, shift reward and again, the design-bid-buildscenario is going to be a thing of the past
because it's inefficient. so with that, noquestions? sir? [ inaudible response] >> say that again? >> the library on campus [inaudible] new building,what i've heard about, the library is [inaudible]. and then on the projects [inaudible] thatif [inaudible] decided that [inaudible] at all, so they refused to do that [inaudible]issues in the publics on a different interest groups of them [inaudible] in the system.but what do you think? in order to make the public agencies like [inaudible] the public[inaudible]. they [inaudible] make that at migration. what kind of, you know, differentconstruction should be applied? what kind
of [inaudible] should be there or after switchingto more collaborative [inaudible]? >> education--i mean i'll say, you know, thati've been doing this for a long time. one thing that i've said to my colleagues anda lot of people in this industry, this industry seems to be slow--i mean i showed you thechart as far as productivity seems to be old school. so, the people on the owner side andi'll just say in this scenario, the university trustees, they're thinking about projects20 years back, you know, some of them probably still think again the best value is the lowbid. in fact, the high-speed rail project even though it's design-build, the best valueselection was 70 percent price, 30 percent qualifications. so, you still have that pricepiece. and in my opinion, the winner lowball
the project because 70 percent of the selectionprocess was based on the price. i wrote a paper about best value for la unified schooldistrict that takes into account qualifications, price you sign an equation--i mean i thinkthat's the best way. people just have to be educated that best value. i mean, we don't--ipersonally don't select my doctor, my dentist on low price. i don't. and if any of you inthis room get ill with a major illness, you're going to look for the best. you're going tolook for the best. i'll just tell you a close personal friend of mine, in fact, she wasmy best woman at my wedding and her profession was an attorney and i met her in law schooland we've been friends for over 30 years. she retired and had a seizure. and the originaldiagnosis was a seizure, you know. well, come
to find out she ended up going to uc, sanfrancisco, ended up bringing a brain tumor, and that she got removed. but what i'm sayingis she didn't take the first diagnosis. she didn't take the local physician. she wentand found an expert at uc, san francisco. and she didn't care what it cost. of course,she had medical insurance but she had to spend some of her funds. so, i'm saying, peopleneed to see the building process in almost the same light. i mean you build buildings.you folks who leave this program are going to build buildings and structures that lastfor 50, 60, 100 years. that's an investment, and it needs to be looked at with really someserious, serious eyes about what the future holds. and you talked about what, acec, yeah,but i don't if you've read the acec report
on infrastructure. you guys leave this room,leave these classes and all you can do for the next 20, 30 years is repair the existinginfrastructure, because it's old and it's deteriorating. and again, infrastructure tome is serious. it should be looked at as the example of ipd. it should be looked at longrange. best value, put in the best product in the ground because without infrastructure,the future is pretty grim--i mean we'd be a third world country without roads and high-speedinternet, sewers and water pipes and we just--we don't have to go out and pump the water andbring it in, in a bucket. but, yeah, education and it's changing, you know, i don't knowwhat the rules are as far as cm at-risk in the--i don't know if it's just fresno stateor i think you can use it in other colleges.
i mean at chico state, i think uses cm at-riskin their projects. they also use design-build. the community colleges like i said have inverton the community college. we use a wide variety depending on what the project was. we satdown and talked about it. we definitely wanted to pre-qualify the bidders. we wanted a pre-qualifypool of bidders whether it was cm at-risk, whether it was design-build and of course,a few hard bid projects, but still pre-qualification. why hire a loser? somebody who failed on anotherproject or why hire a delivery method that you know is going to fail or bound to failand people just need to over the long run become more trusting--let's put it that way,that you can deliver projects other than design-bid-build and i don't know what the issue was with thelibrary and maybe somebody--maybe one of your
students should write a paper on it. you know,i mean what went wrong there? what was the issue? who was the contractor? why--maybethey didn't understand, you know? i mean cm at-risk like design-build. if you don't defineit early enough, what you really want and you leave it in the hands of a contractorthen the contractor gets to decide, you know. if you don't decide on the weight of the carpet,the thickness, the durability, if you leave that out, that contractor and you just say,"just carpet" or you say, "just windows," and they're not double glazed or triple glazedor bullet-resistant, you know, or there was too much of a contingency. i'm going to sayjust of the top of my head that somebody on the university side didn't know what theywere buying when they bought cm at-risk. and
they did and they weren't involved in theprocess because some people think that this is like autopilot. if i pick this deliverymethod off the shelf, if i pick cm at-risk then i don't have to do anything. it's goingto drive itself and i'm going to get the best project, that's not it. owners need to beinvolved every step of the way. and again about--i showed you the slide about the administrationportion as far as rfis--yeah that's going to be less, there's not going to be constructabilityreviews or value engineering reviews. that owners or somebody representing the owner--sometimesthat's me need to be involved to understand the process and understand what the ownerneeds. and in my resume because i built police facilities--yeah, i understand cause i builtthe golf course, because i built an aquatics
complex, because i built, you know, a 50-milliondollar theater, i understand. i can ask the question. library, design one didn't buildit, somebody else built it. i left that particular job and went on to something else but i'mjust going to say somebody wasn't involved and didn't know what they were getting into.probably let it go on autopilot. my opinion--anything else? sir? [ inaudible question] yes. [ inaudible question] no. and i don't know--well,i'll just say talking the contractors now. nowadays, everybody has a preconstructiondepartment whether it's sant [assumed spelling], whether it's turner, whether it's mccarthy,and they have a process and they sell that
service. so, yeah, i wouldn't go get someold school guy who doesn't really understand what preconstruction services are all about.you know, finding the best, working to a target budget. contractors typically have a poolof subcontractors. and they know the ones that they can work with. they know the oneswho are going to perform. again, back to pre-qualifying the contractor and you can even pre-qualifyyour subs, you know, you can write a pre-qualification where you say, "general contractor, you haveto show me this, this and this. how many projects have you done? who's going to be your superintendent?what's your past performance on project? and then i want to know who's your mechanicalsub, who's you electrical sub, who's your plumbing sub and i want to see the same thingfrom them. who's going to the mechanical subs
project manager? and what he's experience?"you know, you can break in down and really its experience i found personally. i'll justtell you this story 'cause it just happened. i'm working on the high-speed rail project.i'm working with a firm harrison associate that i used to work for. they are the cms.i'm the program manager on the program management team. so, i know some of these folks. in fact,the guy that i was working directly with worked for me 14 years ago and he left. last fridaywas his last day. he went to work for a local engineering firm and i'm crashed because wehad a relationship, we had trust, integrity, we talked, we had communication because weworked together. that alone was his pre-qualifications. when i knew that i was going to be able towork with this guy. i was elated. and last
friday, he left, i didn't sleep well. that'sone of reasons i'm here in fresno today is because i'm trying to reestablish my connectionwith the team 'cause there's a new guy and he is only interim, but we just had this greatrelationship, you know, i mean we call each other. i know his wife, you know, we met atcompany parties when we worked together in the past. again, we trust each other. we knowthat each other has each other's back. i'm not going to throw him under the bus. he'snot going to throw me under the bus. it just--that's the kind of team you want, you know, and yousee it on successful sports teams. you know, where people cover for each other, peoplelook at for free each other that people perform for each because it's the good of the teamthat's important. answer your question? so,
yeah, you can break it down to wherever yourcomfort level is. and i'll just say again, when i was working for the city of rosevilleor when i'd been the owner's representative, people bid projects that i put out on thescreen because they knew they would be treated fairly, that i would make sure they got paidon time. i used to be a contractor. i know that you can't float a project for 90 dayson you own money. i know that if you don't get paid, you're going to be cranky and grumpyand you're going to look for ways to get more money out of the project. so again, ipd andyou saw it on the slide, it's just about integrity, it's about honesty, it's about trust, it'sabout all the things that i'll say the politicians don't believe it anymore, you know. it's aboutthrowing somebody in the bus, it's about "i
win you lose," i mean ipd is a model in myopinion for how you should live, you know? and how you should get things done and successful,if you go drive up the road and go to san jose and deal with google, that's how theyget projects done. everybody sits together. nobody wins, nobody loses, it's for the goodof the project, the good of the company. and hopefully again back to your question, educatingowners or it's an evolutionary process. i mean we're talking about it at cmaa, talkingabout it at agc, aewa. everybody wants to be able to deliver these projects better,quicker, faster, more economical especially now that things have slightly turned around.the opportunity to spend money and build this country, repair this country and make it moveforward. anything else? it's been a pleasure.
thank you. [ applause ]