Wednesday, July 30, 2008

Introduction to Collaborative Coal Resource Program












The Kentucky Collaborative Coal Resource Program

A Proposal Submitted in Response to Request for Proposals from the

Kentucky Department of Energy Development and Independence by:

Collaborative Construction Resources, LLC

In Collaborative Partnership with


Construction Owner Resources, LLC

The BIM Education Co-Op


Design Atlantic, Ltd

Onuma, Inc.


Professor Emeritus Robert Smith
California State University


Phi Cubed, Inc.


SOFI Executive Systems, LLC

and


Peripheral Systems, Inc.








I

Introduction to Collaborative Coal Resource Program
II

Funding the Collaborative Coal Resources Program
III


Collaborative Coal Resources Program Tasks


A
Identify potential CCRP Participants and assist collaboration with advanced visual database technology to enhance traditional communication methods in a dynamic manner.


BCommunicate the goals of the CCRP to potential participants and facilitate their involvement.


CHost CCRP team meetings at participants’ facilities (both physically and virtually as effective) to identify CCRP champions.


DInvolve, motivate and mobilize CCRP Champions in the CCRP and identify potential sites for CBEPF.


EUtilize virtual design tools to create Virtual Renderings (computer animations) of CBEPF on all potential sites in Google Earth.


FIdentify and gather authoritative data relevant to planning, design, construction, operation and maintenance of each potential CBEPF and pour that data into the BIM Data Bucket associated with each CBEPF.


GExtract enhanced information from the BIM Data Buckets and create refined Virtual Renderings of all potential CBEPF.


HEducate the public about the economic and ecological merits of the proposed CBEPF.


IEducate the local construction communities about the construction, operation and maintenance of CBEPF using Virtual Renderings created with data extracted from relevant BIM Data Buckets.


JAttract funding by educating potential investors about the merits of the CBEPF.


KObtain additional funding by leveraging relationships CCRP participants have within the US Department of Energy to obtain additional funding and to publicize the overall energy savings and ecological benefits associated with CBEPF nationally.


LEducate the Department of Defense regarding the viability of diesel and jet fuel produced in Goal Gasification Facilities and work to obtain long term contracts from the DOD for the purchase of fuel produced at such facilities.


MEducate other relevant public and private entities about the positive impact CBEPF can have on our economy and our environment.


NDemonstrate the economic and ecological viability of CBEPF planned, constructed, operated and maintained in the virtual world.
IV

Advantages of the Collaborative Model


ACoal Gasification Technology is Proven Domestically and Internationally


BNanotechnology is another promising area of potential collaboration.


CProject Alliance Contracting (the forerunner to integrated and collaborative agreements emerging in the private sector) have been used successfully overseas to commercialize major energy projects


DCollaborative or integrated agreements are being used successfully to provide Integrated Project Delivery (IPD) throughout the US
V

Schedule for Collaborative Coal Resource Program
VI

Collaborative Coal Resources Program Deliverables


AA Directory of CCRP Participants.


BElectronic and print copies of the goals of the CCRP


CCopies of Agenda and Minutes from CCRP team meetings at participants’ facilities (both physically and virtually as effective) to identify CCRP champions.


DElectronic and print copies of materials used to motivate and mobilize CCRP Champions on behalf of the CCRP


EElectronic and print copies of Virtual Renderings of CBEPF on all potential sites in Google Earth.


FElectronic and print documentation of the authoritative data, relevant to planning, design, construction, operation and maintenance of each CBEPF.


GElectronic and print copies of refined Virtual Renderings of all potential CBEPF.


HElectronic and print documentation of the effort to educate the public about the economic and ecological merits of the CBEPF.


IElectronic and print copies of information used to educate the local construction communities about the construction, operation and maintenance of the CBEFP.


JElectronic and print copies of materials related to efforts to educate potential investors about the merits of Goal Gasification Facilities.


KDocumentation of the effort to leverage relationships CCRP participants have within the US Department of Energy to obtain additional funding and to publicize the overall energy savings and ecological benefits associated with CBEPF.


LDocumentation of efforts to educate the Department of Defense about the viability of diesel and jet fuel produced in Goal Gasification Facilities.


MDocumentation of efforts to educate other relevant public and private entities about the positive impact CBEPF can have on our economies and our environment.


NDocumentation of efforts to utilize the Virtual Renderings to site, plan, construct, operate,and maintain the CBEPF (initially in the virtual world) in an economically and ecologically responsible manner.
VII

Organization and Utilization of Personnel
VIII

Collaborative Coal Resource Program Budget
IX

Other Funding and Letters of Commitment
X

Socio-Economic Impact of the Collaborative Coal Resources Program





I. Introduction to Collaborative Coal Resource Program



The Collaborative Coal Resource Program (CCRP) will do three things:


  • Assist Kentucky as it demonstrates leadership in the coal industry by aligning disparate economic and ecological interests of geographically dispersed stakeholders in the coal industry, utilizing advanced visualization software to graphically depict the efficient and ecologically friendly commercialization our coal resources.


  • Communicate the benefits of tapping our vast coal resources in an efficient and ecologically friendly manner to all stakeholders by leveraging substantial in kind contributions of design and communication technologies to reach all stakeholders in a medium they will relate to and understand.


  • Arm the stakeholders in the coal industry with advanced visual imaging software, collaborative forms of legal agreements and other innovative collaborative processes that will enable them to work cooperatively to pursue the commercialization of a variety of economically viable and ecologically friendly coal based energy producing process.



Pursuant to Kentucky Revised Statutes Chapter 152.712, and in accordance with the Request For Proposals issued by the Kentucky Department for Energy Development and Independence (DEDI) Collaborative Construction Resources, (CCR) LLC proposes the creation of a Collaborative Coal Resource Program (CCRP) that will help a collaborative coalition of governmental and private entities calculate the benefits of planning, designing, constructing and operating Coal Based Energy Production Facilities (CBEPF) in Kentucky, West Virginia, Pennsylvania, Illinois and Wyoming. Throughout this proposal CBEPF is meant to include, but not be limited to, commercial scale facilities for converting coal-to-liquid (CTL) coal-to-gas (CTG) and integrated-gasification-combined-cycle power plants (IGCC).


Kentucky can expand its role as a leader in the coal industry by adopting a comprehensive and collaborative approach to the planning, design and construction of CBEPF. Further, the Kentucky Department of Energy Development and Independence can use the CCRP as a road map for future collaborative processes and can share the road map with others. In addition, taking a collaborative approach to CBEPF will enhance the economic opportunities for all Kentucky citizens and industries through expansion of current markets and the development of additional market opportunities for Kentucky coal. Planning, designing and building CBEPF on a collaborative basis will enhance almost every sector of Kentucky’s economy and will create new economic opportunities around the state.


Collaborative Construction Resources, (CCR) LLC will lead the effort to create a Collaborative Coal Resources Program (CCRP) that will tap and align the resources and talents of a collaborative coalition of governmental and private entities whose collective interests will be advanced by planning, designing, constructing and operating CBEPF in Kentucky, West Virginia, Pennsylvania, Illinois and Wyoming.


Specifically, CCR proposes to build a coalition of governmental and private entities capable of planning, designing, constructing and operating at least 10 CBEPF in Kentucky, West Virginia, Pennsylvania, Illinois and Wyoming. This multi-state / multi-party cooperative will educate the participants regarding the use of Collaborative / Integrated or Alliance Agreements, Virtual Design Tools or Building Information Modeling (BIM) software, Lean Design and Construction techniques and other evolving collaborative tools that will ensure alignment of the economic interests of the participants and the communities in which the CBEPF are sited.


To learn more about CCRP and the Collaborative Team please contact James L. Salmon!

Email: James.Salmon@CollaborativeCR.com
Phone: 859-802-1118
Skype: JameswithCCR
Web: CollaborativeConstruction.com
Blog: CollaborativeConstruction.BlogSpot.com

Collaborative Breakfast Group Meeting, Thursday, July 31 at 7:00 a.m.

Click here to visit CCR's Website Collaborative Revolution!








CCR and Its Affiliates


Collaborative Construction Resources, LLC



CCR
provides consulting to construction industry stakeholders interested in delivering collaborative/integrated construction services efficiently and productively. CCR helps such stakeholders utilize collaborative/integrated agreements, BIM and Lean
Construction methods to achieve Collaborative/Integrated Project Delivery.
Visit the Collaborative Construction Blog.


Construction Owner Resources, LLC



COR
helps construction owners and their architects, construction managers, contractors, consultants and attorneys adapt to the revolutionary changes sweeping the US Construction Industry. Read COR's White Paper Here.


Onuma, Inc.


Onuma, Inc. is the home of the now world famous BIMStorms and their underlying web-based software program, the cutting-edge Onuma Planning System.


Design Atlantic, Ltd



Finith Jernigan, author of the wildly popular "BIG BIM little bim" which serves as a layman's guide to the BIM revolution, is the principle at Design Atlantic, which has provided valuable services to Onuma, Inc. in the context of several BIMStorms.













Collaborative Construction Breakfast Group of Greater Cincinnati Meets This Thursday at 7:30 a.m.!

Join an informal coalition of professionals for breakfast to discuss topics revolutionizing the US Construction Industry!


James L. Salmon, President of Collaborative Construction Resources, LLC, (CCR) invites you to join CCR and Construction Owner Resources, LLC for the Collaborative / Integrated Construction Breakfast Group of Greater Cincinnati meeting. This informal coalition of construction industry professionals will meet for breakfast once a month to network with one another and to discuss a wide variety of revolutionary topics that are germane to the US Construction Industry. The first meeting will be at 7:30 a.m. on July 31, 2008 at the the Cincinnatian Hotel, located at 601 Vine Street, Cincinnati, Ohio 45202.

At the meeting James will share his vision for the Collaborative Coal Resource Program that Collaborative Construction and a team of Collaborative Partners is pursuing with the State of Kentucky. You can follow the link to see the first few pages of the proposal. We will also identify the interests of the attendees and discuss how to generate interest and participation in the Group. Finally, we will tap another organization to make the presentation at the next meeting. James' presentation will take less than 30 minutes and will begin at 7:30 a.m. Attendees are encouraged to arrive by 7:00 a.m. in order to network with one another.

Who should attend?

Owners, Design Professionals, General Contractors, Trade Contractors and Suppliers or Vendors, and their consultants, advisers, risk mangers and attorneys are all encouraged to attend. The purpose of the Group is to draw US Construction Industry professionals out of their bunkers and to initiate honest and open dialogue between these disparate segments of the industry about how to deliver construction services more efficiently and more productively. Local members of AIA, CURT, COAA, AGC, ABC, the buildSMARTalliance, the Lean Construction Institute, the local Home Builders Associations and similar organizations should all attend.

Why attend?

There will be great networking opportunities at these meetings and you will learn something new about the rapidly expanding Collaborative / Integrated Construction Revolution every month. You will also meet like minded professionals who share your passion for increasing efficiency and productivity in the US Construction Industry and you can discuss and coordinate specific opportunities to do so.

When, Where and How Much?

The Collaborative Construction Breakfast Group will meet on the LAST Thursday of every month at the Cincinnatian Hotel at 7:00 a.m. to network and have breakfast. Each month an informal presentation will shed light on a different topic of interest. The Cincinnatian is on the Northwest corner of Sixth and Vine streets in Downtown Cincinnati. Valet parking is available and several public parking garages and surface lots are nearby. A full breakfast will likely cost you less that $25.00, and we are investigating the possibility of a group discount. There is no charge for attendance or membership in the Group. We look forward to seeing you there!

If you have any questions please do not hesitate to contact me.

Warmest Regards,

James L. Salmon


President, Collaborative Construction Resources, LLC

CollaborativeConstruction.com

James.Salmon@CollaborativeCR.com

859-441-6033











Email: James.Salmon@CollaborativeCR.com
Phone: 859-802-1118
Skype: JameswithCCR
Web: CollaborativeConstruction.com
Blog: CollaborativeConstruction.BlogSpot.com

James L. Salmon's Updated CV (August 2008)

James L. Salmon is the President of Collaborative Construction Resources, (CCR) LLC. CCR empowers stakeholders in the U.S Construction Industry to utilize collaborative agreements, BIM and lean construction methods to deliver integrated construction services more efficiently and more productively. James was raised on a ranch and in the oil fields of West Texas. His father was a general contractor and his grandparents owned ranches. He was exposed to all aspects of construction and the oil industry from an early age. As a construction lawyer James spent 15 years defending and pursuing construction claims on behalf of owners, architects, engineers and contractors. James is a member of the Alternative Dispute Resolution (ADR) Section of the American Bar Association and a member of similar sections of the Ohio, Kentucky, and Wyoming state bar associations. Today, he is a leader in the collaborative construction revolution that is sweeping the industry.

Upon founding CCR James immediately joined the National Building Information Model Standards (NBIMS) Project Committee. Soon thereafter CCR joined the NBIMS Project Committee's Business Process Integration Task Team, (BPITT) a team now carrying out its mandate through the Build SMART Alliance, a project associated with the National Institute of Building Science (NIBS). CCR, as a BuildSMART Alliance member, also hosts a Collaborative Construction Breakfast meeting on the last Thursday of every month for local industry professionals in Cincinnati interested in learning more about collaborative agreements, BIM and lean construction techniques, including how those tools help stakeholders achieve true Integrated Project Delivery. In an effort to increase networking opportunities for a wide array of industry professionals James also created a Linkedin Group called Collaborative BIM Advocates. Membership in that group grows daily and you can join by following the link! James' documented interest in promoting industry wide virtual education and CCR's commitment to collaborative consulting has led Ecobuild to invite CCR to co-host a meeting of the Collaborative Construction Breakfast group and the Collaborative BIM Advocates group at the Ecobuild / AEC - ST Conferences in Washington D.C. in the Fall and in Denver in the Spring.

At those events James will advocate networking among stakeholders interested in using collaborative agreements, BIM and lean construction methods in combination because those powerful tools exponentially increase productivity and efficiency, saving owners money and earning higher profits for others. James is currently serving on an ad hoc committee formed by the BuildSMART Alliance to explore the viability of hosting physical and virtual conferences simultaneously. The combined meetings of the Collaborative Construction Breakfast group and the Collaborative BIM Advocates at the Fall and Spring conferences for Ecobuild / AEC - ST will serve as practical means of testing virtual conferencing tools. The U.S. Construction Industry is desperately seeking a better business model and James is working hard to provide it!

Under James' leadership CCR has also hosted a National Teleconference Series exploring how best to put the ConsensusDOCS 300 series to work on major construction projects, made multiple presentations to industry leaders and has been selected, along with Rich Cardwell of CCR's affiliate Construction Owner Resources, LLC to provide a national ConsensusDOCS sponsored presentation in September, 2008 to members of all the associations that have endorsed ConsensusDOCS. In addition, CCR is working closely with the Construction Users Round Table, (CURT) to educate stakeholders about the benefits of collaborative agreements, BIM and Lean Construction. To that end, James and Rich made a presentation to the local CURT chapter in Cincinnati, taught a session of a CURT's Executive Vice President Greg Sizemore's Construction Law class at the University of Cincinnati, and authored an article for CURT's industry magazine, The VOICE. James is one of the few individuals nationally who has read and analyzed the 183 page NBIMS Protocol, the voluminous ConsensusDOCS 300, (as well as Sutter Health's IFOA and the California Council's IPDG), the AIA's IPD Docs, and much of the Lean Construction Institute's literature, all with an eye towards bringing all of those powerful tools to bear, in a collaborative environment, on the goal of achieving Integrated Project Delivery that increases efficiency and enhances productivity on major construction projects. James and CCR are prepared to help you and your organization with all phases and aspects of integrated project delivery.

PROFESSIONAL EXPERIENCE

• Collaborative Construction Resources, LLC
o President and Founder, February 2008 to the present

• Ulmer & Berne, LLP, Cincinnati, Ohio
o Senior Associate, January 2000 to April 2008

• Lonabaugh & Riggs, Sheridan, Wyoming
o Associate, September 1996, to January 2000

• Sheridan College, Sheridan, Wyoming
o Adjunct Professor, January 1997, to January 1998

• Laramie County Community College, Cheyenne, Wyoming
o Adjunct Professor, September 1994, to September 1996

• Chief Justice William A. Taylor, Wyoming Supreme Court
o Law Clerk, September 1994, to September 1996


PROFESSIONAL MEMBERSHIPS AND ACTIVITIES


Bar Memberships and Admissions

o Member, Ohio State Bar Association (Construction and Mediation Sections)
o Member, Kentucky State Bar Association (Construction and Mediation Sections)
o Member, American Bar Association (Litigation and ADR Sections)
o Member, Northern Kentucky Bar Association (Tort and Insurance Section)
o Member, Wyoming State Bar Association
o Admitted in the State of Ohio
o Admitted in the Commonwealth of Kentucky
o Admitted in the State of Wyoming
o Admitted in the U.S. District Court, Southern District of Ohio
o Admitted in the U.S. District Court, Eastern District of Kentucky
o Admitted in the U.S. District Court, District of Wyoming

Presentations and publications

Collaborative Construction Resources

"A Construction Industry Revolution, ConsensusDOCS + BIM + Lean = Amazing Results!" VOICE Magazine, August 2008 (Co-Authors James L. Salmon and Rich Cardwell)

"Is Nanotechnology a Catalyst for Energy Independence?" Collaborative Construction Blog, July 2008

"How to Save Time and Money While Reducing Risks On Major Commercial Energy Projects!" Collaborative Construction Blog, July 2008

"Analysis of ConsenusDOCS 300 and the AIA IPD DOCS" Collaborative Construction Blog, July 2008 (C0-Authors James L. Salmon and Rich Cardwell)

"Innovative New ConsensusDOCS 301 BIM Addendum Released!" Collaborative Construction Blog, July 2008 (Co-Author Rich Cardwell)

"Us Construction Industry Revolution, Second National Teleconference Series!" Two separate national presentations in June and July, 2008

“US Construction Industry Revolution, National Teleconference Series!” Four separate national presentations throughout the month of May, 2008

“Project Implementation of ConsensusDOCS 300 Tri-Party Standard Contract” National web-based presentation to public and members of all organizations sponsoring ConsensusDOCS scheduled for September 2008

“Gain Major Competitive Advantages in Today’s Construction Market and Put ConsensusDOCS 300 Standard Form of Tri-Party Agreement for Collaborative Project Delivery (ConsensusDOCS 300), BIM and Lean Construction to Work on Your Next Project!” Live presentation to Construction Owners Association of the Tri-State, COATS, April, 2008

“Striving for Innovation and Efficiency on Construction Projects” January, 2008

“What is Lean Construction and Why Should Owners Care?” January, 2008

“The Collaborative Revolution!” March, 2008

“What Role Do Specialty Subcontractors Play on a Collaborative Construction Project?” March 2008

James Salmon's Blogs

Creator and Author of the “Collaborative Construction Blog
Creator and Author of the "Fort Thomas Collaborative Blog"

Continuing Education Presentations


“Ohio Bad Faith Law” CLE Presentation
“Bad Faith Claims in Mold Litigation” CLE Presentation
“Contractor Exposure to Mold Litigation” CLE Presentation
“Comparative Verdicts in Mold Cases” CLE Presentation
“Comparative Verdicts in Bad Faith Cases” CLE Presentation
“HMO Litigation, Significant Verdicts” CLE Presentation


Community Involvement

o Member, Fort Thomas Independent School District Fund Raising Task Force
o Creator of and facilitator for the Fort Thomas Collaborative Blog
o Member, Johnson Elementary School Site Based Decision Making Council
o Co-Chair, Marketing for Johnson Elementary School Fund Raiser
o President, Texas Tech University Alumni Chapter, Cincinnati
o Volunteer Mediator, Kentucky and Ohio Courts
o President, Kappa Sigma Fraternity, Texas Tech University

Education

o Texas Tech University (B.A., 1991)
o University of Cincinnati (J.D., 1994)
o Certified Mediator, Administrative Office of the Courts, Kentucky

Email: James.Salmon@CollaborativeCR.com
Phone: 859-802-1118
Skype: JameswithCCR
Web: CollaborativeConstruction.com
Blog: CollaborativeConstruction.BlogSpot.com

Monday, July 28, 2008

BIM Now a Part of the Whole Building Design Guide

Welcome to the Collaborative Revolution!


Building Information Modeling (BIM)

by Dana K. (Deke) Smith, FAIA - Executive Director, buildingSMART alliance, and Alan Edgar, Chair - National BIM Standard Project Committee

Last updated: 07-24-2008

Introduction

A Building Information Model (Model) is a digital representation of physical and functional characteristics of a facility. As such, it serves as a shared knowledge resource for information about a facility forming a reliable basis for decisions during its life cycle from inception onward.

A basic premise of Building Information Modeling is collaboration by different stakeholders at different phases of the life-cycle of a facility to insert, extract, update or modify information in the Model to support and reflect the roles of that stakeholder. The Model is a shared digital representation founded on open standards for interoperability.

Some have identified BIM as dealing with only 3D modeling and visualization. While important and true, this description is limiting. A more useful concept is that a Model should access all pertinent graphic and non-graphic information about a facility as an integrated resource. A primary goal is to eliminate re-gathering or reformatting of facility information; which is wasteful.


Read the whole thing!

Deke Smith and Alan Edgar are two of the best!

Email: James.Salmon@CollaborativeCR.com
Phone: 859-802-1118
Skype: JameswithCCR
Web: CollaborativeConstruction.com
Blog: CollaborativeConstruction.BlogSpot.com

Sunday, July 27, 2008

Is Nanotechnology a Catalyst for Energy Independence?

Welcome to the Collaborative Revolution!


Nanotechnology and Fossil Fuels

James L. Salmon, Esq.
President, Collaborative Construction Resources, LLC
July 20, 2008


Energy is the world's largest market, and one that has political and strategic implications and impacts unmatched by any other sector. Most countries are entirely dependent for their energy needs on finite fossil fuels. Fluctuations in energy prices can bring economies to their knees, and vault minor regional players onto the global geo-political stage. Understanding and leveraging nanotechnology in ways that expand the economic and ecological viability of fossil fuels has the power to free many from the tyranny of uncertain global energy markets.

This article focuses on the big-not-so-technical big picture of the role nanotechnology can play in chemical catalysts that break fossil fuels into their molecular parts, resulting in higher rates of energy production and more environmentally friendly fuels. While catalysts are as old as the chemical industry, recent advances in nanocatalysis have the potential to revolutionize our global energy markets, especially the fossil fuels market. Those who control and adapt to these new technologies will, of course, have more control over their own political and economic destinies. Against that backdrop it is interesting to note that the most advanced catalytic technologies are being researched, tested and deployed by China in conjunction with the US government.

Even though the commercialization of these technologies remains over the horizon, interest by the US Department of Energy and the Chinese government has already inspired a flurry of activity. At least one small company has reportedly signed a $2 billion contract for the commercialization of its nanocatalysis technology for coal liquefaction in a remote region of China.

Nanocatalysis has the potential to:

• Allow remote regions of the world to become less dependant on foreign oil by producing liquid and gas fuels from coal reserves;

• Allow economical production of so-called stranded gas, which accounts for 80% of the worlds known gas reserves;

• Reduce oil prices below the level desired by OPEC;

• Enable Russia to rival OPEC as a major player in the global energy market;

• Free countries with large coal reserves, like the US and China from foreign oil;

• Increase offshore oil production, narrowing the difference between production costs and world prices, reducing prices globally;

• Shift some greenhouse gas emissions from vehicles to centralized locations where they can be more effectively managed, ultimately paving the way to a hydrogen economy;

• Reduce emissions of pollutants like nitrogen oxides, sulfur dioxide (the culprit in acid rain) and other particulate matter; and

• Promote waste recycling through conversion of plastic, rubber, municipal waste and waste oil to clean fuels.

Global distribution of world coal reserves differs greatly from that of world oil reserves. Substantial coal reserves exist in China, the US, Russia, Australia and India. Low environmental impact extraction and utilization of coal in those countries would dynamically impact the world energy market. Russia, and certain former Soviet Union satellite countries are also particularly well positioned to take advantage of coal and natural gas reserves.

Nanotechnologies have already resulted in economically viable production of transportation fuels, particularly ultra-clean diesel, in China at prices south of $30.00. At $130.00 per barrel the US and other countries need to leverage the same technologies to bolster their domestic production of ultra-clean diesel, jet fuel and synthesis gases. The US and other coal rich developed countries are well positioned to put nanotechnologies to work today. If the US, Europe, Russia, China and India joined forces and worked together on a collaborative basis to reduce their dependence on Middle Eastern oil their combined efforts would bear great fruit in short order.

While emissions of greenhouse gases and other pollutants are not likely to slow much given global growth, new technologies offer promises of improvement, and might lead to a cleaner hydrogen economy. These new industries will not spring up overnight, but advances in fuel cell technology, through nanocatalysis and other nanotechnologies, show great promise of bringing cheaper more environmentally friendly energy on line.

Global dependence on fossil fuels will not be reduced substantially in the foreseeable future. However, the research now underway demonstrates that we can, through a collaborative effort, reduce dependence on fossil fuels and improve the productivity of the fossil fuels we do use. Ultimately, given sufficient political will, all countries can reduce their dependence on foreign oil by learning to utilize local fossil fuels more efficiently and in a more ecologically friendly manner. To achieve these ends, however, a collaborative coalition must be mobilized at the local, state, national and global level. If we will act in a collaborative fashion we can achieve these lofty goals!


Phone: 859-802-1118
Skype: JameswithCCR
Web: CollaborativeConstruction.com
Blog: CollaborativeConstruction.BlogSpot.com

Thursday, July 24, 2008

Collaborate on Energy Today!

How to Save Time and Money While Reducing Risks On Major Commercial Energy Projects!

James L. Salmon, Esq.
President, Collaborative Construction Resources, LLC
July 24, 2008

Every power plant project is unique, with physical and organizational factors differing from project to project. Given the uniqueness and complexity of such projects, they would benefit tremendously from the use of a truly Integrated Project Delivery (IPD) model that utilized collaborative or integrated agreements, Building Information Models (BIM) or Virtual Construction Design (VCD) and lean construction techniques. The first step in successfully deploying these innovative new tools is to utilize a collaborative team selection process. Few in the construction industry however understand these new tools, and fewer still understand how to utilize these exciting new processes in effective combinations. Collaborative Construction Resources, (CCR) LLC provides collaborative consulting services geared towards helping all the major stakeholders on complex construction projects utilize collaborative agreements, BIM / VDC and lean construction techniques to achieve true IPD. CCR educates all stakeholders regarding the importance of establishing a collaborative culture of trust that will permeate the project. Armed with knowledge of these unique tools and a better understanding of the culture necessary to achieve true IPD, stakeholders will be poised for success. Stakeholders involved in major energy projects, such as coal gasification facilities, power plants and the like, should learn more about IPD before their next project.

Front end cooperation between the owner and other Collaborative Team members leads to the creation of an accurate Target Cost Estimates (TCE) for the project, including target completion schedules, quality and scope of work, and accurate equipment lists. The unique collaborative relationships that underpin true IPD reduce economic tension that exists within traditional construction contracts. Too often owners in the traditional environment specify a Taj Mahal, while the contractor, driven by competition, is compelled to bid on Strip-Mall. In a true IPD setting the Owner realizes a Taj Mahal is too pricey, but is pleased to learn the company that bid a Strip-Mall can build a nice Mall of America for the right price. Effective and early collaborative consulting can help all the stakeholders meet or exceed all project goals, and even address long term operational considerations.

An experienced collaborative consultant can help the stakeholders maintain a spirit of cooperation and trust throughout the project. A good working relationship founded on collaborative sharing and nurtured in a high-trust low-blame environment ensures that the inevitable conflicts and challenges that arise are addressed via timely and proactive decisions. The adversarial culture that plagues the construction industry is virtually eliminated when true IPD is utilized effectively, resulting in increased productivity, efficiency, quality and cost savings. When all the stakeholders are brought to the collaborative table in advance the design professionals are able to use BIM and VCD tools to address the needs and suggestions of the constructor, the equipment supplier and the owner. Subsequent changes to the TCE will appear in real time on the computer screens as they appear. Early engineering and construction cost-saving contributions include value engineering, constructability reviews and life cycle analysis that benefit the project as a whole. Changes that occur during the project's execution are easily assimilated into the project by a Collaborative Team, minimizing the impact of changes on the cost and schedule.

The Collaborative Team’s ability to quickly recognize conflict, and prevent it from escalating into a major dispute, is a core benefit of the collaborative relationship. Issues are dealt with as they arise and they can be passed on to the Collaborative Team for resolution if they introduce additional cost or potential schedule impacts to the project. The nationally available collaborative agreements all contain "waiver" provisions and a laddered alternative dispute resolution mechanism that culminates in binding arbitration before a third-party neutral mediator the team members select in advance. This laddered resolution procedure virtually guarantees the project will not devolve into conflict.

The collaborative or integrated contracts provide the team with a monetary goal for successful project completion. A successful IPD project will utilize an incentive program that requires the Collaborative Team to "share the gain and the pain" by paying minor loses out of a shared pool and then distributing the remaining funds as bonus money as an integral part of the project payment terms. There are also non-monetary metrics that must be taken into account on projects. Quality, safety, safety, energy efficiency, long-term performance objectives, permitting and community standards are all non-monetary metrics to be considered.

Tracking these metrics throughout the project is a very important to the success of not only the current project, but future projects as well. Accurate performance data will enable the Collaborative Team to improve their performance on subsequent projects, and build confidence among others in the industry in the process. One important mechanism utilized in many collaborative agreements to track financial metrics is the open-book contracting approach where pre-agreed overhead allowances and appropriate profit margins are approved for each member of the Collaborative Team, eliminating progress payments and retainage typical under traditional contracts. This process reinforces the spirit of trust and collaborative cooperation that are the hallmarks of true IPD.

Use of true IPD offers power industry owners, contractors and lenders a proven, cost-effective and practical solution to fix the recurring financial problems that rear their heads on projects completed using traditional contracts. As the next generation of coal fired power plants come on-line, industry stakeholders are seeking "effective" low cost solutions to classic problems. To find those solutions those stakeholders must work together on a Collaborative Team to have success.

James L. Salmon is the President and founder of Collaborative Construction Resources, LLC. CCR is currently leading as strong Collaborative Team in pursuit of funding from the State of Kentucky for a Collaborative Coal Resource Program that would bring the powerful tools described in this article to bear on planning, designing, constructing, operating and maintaining Coal Based Energy Production Facilities around the country. James can be reached via the contact information below. Call James today if you are interested in forming or joining a Collaborative Team!

Email: James.Salmon@CollaborativeCR.com
Phone: 859-802-1118
Skype: JameswithCCR
Web: CollaborativeConstruction.com
Blog: CollaborativeConstruction.BlogSpot.com

Monday, July 21, 2008

Analysis of ConsensusDOCS 300 and the AIA IPD DOCS!



Analysis of Notable Features of Leading Collaborative / Integrated Form Agreements!

Richard D. Cardwell, Esq.
President of Construction Owner Resources, LLC

James L. Salmon, Esq.
President of Collaborative Construction Resources, LLC

July 21, 2008

Below you will find a detailed analysis of the leading collaborative / integrated forms of agreement on the US market. You can contact James or Rich if you want a PDF copy of this document that includes a detailed chart comparing the key features of these innovative agreements.

U.S. CONSTRUCTION INDUSTRY COLLABORATIVE/INTEGRATED STANDARD FORM AGREEMENTS

NOTABLE FEATURES AND ANALYSIS

AIA Integrated Project Delivery (IPD) Documents--Generally:

(AIA A295-2008 General Conditions of the Contract for Integrated Project Delivery)

(AIA A195-2008 Standard Form of Agreement Between Owner and Contractor for Integrated Project Delivery)

(AIA B195-2008 Standard Form of Agreement Between Owner and Architect for Integrated Project Delivery)

(AIA C195-2008 Standard Form Single Purpose Entity (SPE) Agreement for Integrated Project Delivery)

1) Along with the ConsensusDOCS 300 will help legitimize collaborative/integrated project delivery/contracts as viable U.S. construction industry project delivery and form contract options to help lower project costs, save time, improve quality and reduce or eliminate major disputes and litigation

2) Incorporates BIMs to varying degrees

3) Incorporates front-end focused planning phases of AIA Integrated Project Delivery Guide

4) Does not incorporate Lean Construction

5) Only the AIA IPD Transitional Documents can readily be entered into at this time given the AIA has yet to publish major accompanying form contracts to the AIA IPD SPE Agreement

ConsensusDOCS 300 Standard Form of Tri-Party Agreement For Collaborative Project Delivery

(ConsensusDOCS 300)--Generally:

1) First and still only U.S. Construction Industry standard form three party collaborative or integrated agreement between an Owner, Architect and Contractor

2) Optionally incorporates BIM to some degree

3) Fully incorporates Lean Construction

4) Does not incorporate AIA Integrated Project Delivery Guide Pre-Construction Phases

5 This agreement is ready to be entered into at this time when three party contract liability issues are addressed through techniques such as contractual apportionments of liability and/or special integrated project insurance and/or the setting aside of special contingency monies


AIA Transitional Documents (AIA A295-2008; AIA A195-2008; AIA B195-2008)

AIA Transitional Documents Notable Features:

1) Contractor provides pre-construction services with the Owner and Architect (GMP plus pre-construction services fees) (Articles 4, 5, 6, 7, 8)

2) Architect, Owner and Contractor pre-construction and construction phase duties now almost all moved to General Conditions

3) Architect, Owner and Contractor duties all together and integrated at each phase of design/construction in the General Conditions

4) Incorporates BIM in pre-construction phase (Section 5.5, 6.2, 7.1)

5) Moves more of design work earlier in phases and re-names pre-con phases to correspond with AIA Integrated Project Delivery Guide (Articles 5, 6, 7, 8)

6) Adds an expanded POR Phase called Conceptualization Phase (Article 5)

7) Creates an expanded CD Phase now called Implementation Phase where Shop Drawings and Other Submittals are submitted and approved instead of Construction Phase (Article 8)

8) Permits consolidated dispute resolution as between the Owner, Architect and Contractor (Section 13.4.4)

AIA Transitional Documents Analysis:

1) Decided change from AIA Design/Bid/Build Documents and AIA A201 related to integration of Owner, Architect and Contractor in pre-con phases, use of BIM and use of subcontractor/supplier info, systems, materials, costs, schedules, etc. in pre-construction

2) Incorporates front-end focused planning process contained in the AIA Integrated Project Delivery Guide

3) Still two separate agreements for Owner/Architect and Owner/Contractor

4) Do not use of Lean Construction principals, methods and processes

5) No "all for one and one for all" or "best for project" reward/risk sharing, but instead has GMP

6) Forms no Project Management Team to collaboratively manage the project by consensus

7) Does not require the establishment of Project Goals, Target Costs, Reliable Commitments, Quality Plans, Project Planning System, Construction Quality Plan, etc.

8) Contractor by participating in pre-construction gives up the implied warranty of fitness of the plans/specs as a basis to get an increase in its GMP. Any Contractor participating in pre-construction may give up the implied warranty of fitness of the plans/specs.


AIA IPD SPE Document (AIA C195-2008)

AIA IPD SPE Document Notable Features:

1) Requires creation of an LLC between an Owner, Architect and Construction Manager that must be incorporated in the state of jurisdiction, governed through a governing board and requires capital contributions of its members (Articles I, 2, 3, 8)

2) A CM, not the Contractor, is a party to the LLC; instead, contractors are non-members that contract with the LLC

3) The LLC must separately contract with the Owner, Architect and CM as well as actual construction work (Article 6)

4) Architect and CM reimbursed on actual costs, only way to make profit is through performance Goal Achievement Compensation (where Owner goals achieved) and Incentive Compensation (percentage of savings between the Target Cost and Actual Cost) (Section 6.2.1)

5) The Contractors can be paid a stipulated sum, GMP, but also receive Incentive Compensation and Goal Achievement Compensation (Section 6.1.6)

6) Requires the Legal Description of the Project (Exhibit A); the Owner's Criteria (Exhibit B); Owner, Architect and CM Member Agreements (Exhibit C); Work Plan (Exhibit D)

7) Requires the LLC Members to establish a Project Management Team (Exhibit D; Article D.1)

8) Requires the use of BIM in pre-construction period generally (Exhibit D; Article D.3) and specifically requires the use of BIMs as Contract Documents (D.3.2) and to coordinate and provide for the proper administration of BIMs (D.3.3)

9) Moves more design work earlier in design and uses the revised and renamed planning phases contained in the AIA Integrated Project Delivery Guide (Exhibit D; Article D.2)

10) Requires the development of a Target Cost and Target Cost Breakdown early in design and then locked in through an amendment (Article 5)

11) Permits the LLC to award pre-construction contracts to contractors, fabricators and suppliers but only after the Target Cost Amendment is executed in the Criteria Design Phase (Exhibit D; Article D.2.7)

12) Requires the Project to be Defined (Section 5.2.1; Exhibit E(BB)), establish Goals (Exhibit E (CC), establish an Integrated Scope of Services (Section 5.2.5; Exhibit E (DD), Project Schedule (Exhibit E (EE), Digital Data Protocol (Exhibit E (FF)

13) Requires the conducting of a Collaboration Standards Workshop (Section 5.2.2)

14) Requires the establishment of a Risk Matrix (Section 5.2.3)

15) The Owner is required to fund the LLC (Section 7.2)

16) Requires the procurement of integrated project insurance including pre-target cost insurance and post-target cost insurance (Article 13)

17) Failure to arrive at a mutually agreeable Target Cost will dissolve the LLC (Section 16.1.2)

18) The Owner, Architect and CM companies and employees are shielded from debts, obligations and liabilities of the LLC (Section 12.1.1), shielded from liability from another LLC Member except willful misconduct (Article 12.2) and will be indemnified and defended by the LLC for third party losses, damage or claims (Article 12.3)

19) Requires Consensus Resolution, first among the LLC Members, then at the Governance Board level, then a Dispute Resolution Committee (Article 18)


AIA IPD SPE Document Analysis:

1) Setting up and funding an LLC likely to be time-consuming, complicated and costly

2) An LLC as a shield for its Members liability might not work (e.g., "Corporate veil might be pierced") and will an LLC create corporate directors liability which might have to be specially insured

3) The Construction Manager does not hold the contracts for construction, the LLC does, and there may be a disconnect, gap or inconsistency between the CM's services and that of the construction contractors, fabricators and suppliers, both during pre-construction and construction phases

4) Agreements between the LLC and the Owner, the LLC and the Architect, the LLC and the Construction Manager and the LLC and the Contractor are required but AIA contract forms have not yet been published (In the AIA General Information Section on Related Documents, it states: "The AIA expects to publish standard forms of these agreements in late 2008"). This makes fully executing this agreement very difficult at this time.

5) Incorporates front-end focused planning process contained in the AIA Integrated Project Delivery Guide

6) Does not require the use of Lean Construction

7) The Target Cost to be developed, broken-down and made the subject of an amendment early in planning in the Criteria Phase (See Exhibit D; Article D.2.3) is similar to a baseline or owner's budget in other contracts although the Owner Budget is also stipulated in Exhibit B Article B.1.3

8) The Target Cost is set prior to trade contractor/supplier involvement or collaboration

9) Any Contractor participating in pre-construction may give up the implied warranty of fitness of the plans/specs

ConsensusDOCS 300 Notable Features:

1) The only U.S. construction industry form tri-party agreement for collaborative project delivery on the market (Primary Parties are the Owner, Designer and Constructor or Construction Manager/General Contractor) (Note: The CM/GC enters into all contacts for construction (Paragraph 12.1)

2) Expressly delineates collaborative objectives, collaborative project delivery and the collaborative relationship (Paragraph 3.1, 3.2 and 3.3)

3) Expressly contemplates a Collaborative Project Delivery Team (CPD Team) made of the contracting parties and other invited parties such as consultants and trade contractors (Paragraph 3.3)

4) Permits the choice of a collaborative risk allocation where liability is released among the parties for collaborative decisions or to choose a traditional risk allocation where each party is fully liable for its own negligence and breaches of contract and warranty (Paragraph 3.8) but regardless there is a mutual waiver of consequential damages (Subparagraph 3.8.3)

5) The Owner, Designer and Constructor collaboratively manage and make decisions on the project through a Management Group (Article 4)

6) Permits the parties to establish an Electronic Communication Protocol (Subparagraph 4.9.2)

7) Requires the use of Lean Construction inspired Pull Based Design (Paragraph 6.5)

8) A BIM approach is optionally authorized and authorizes the execution of a BIM Addendum detailing BIM parameters, standards and technological requirements (Paragraph 6.9) (Note: ConsensusDOCS is set to release a universal BIM Addendum this Summer)

9) Requires the CPD Team to secure Reliable Commitments (Paragraph 3.9), employ a Quality Plan (Paragraph 3.10), a Project Planning System using pull planning, phase planning, make-ready look ahead plan (Paragraph 7.2) all of which are inspired by Lean Construction principals and techniques


10) Contemplates the collaboration of certain trade contractors and suppliers at the beginning of design through working agreements (Paragraph 12.1)

11) Requires the CPD Team and trade contractors/suppliers to create and develop a Target Value Design (Paragraph 6.13) and develop Target Value Pricing optionally through BIM Models (Paragraphs 8.1, 8.2)

12) Requires the creation of a Project Target Cost Estimate (PTCE) at substantial completion of design that cannot exceed the Owner's budget without permission and that will be the basis of an Amendment locking in the PTCE and forms the basis for the Constructor's cost of construction with some exceptions (Paragraph 8.3)

13) The Designer and Constructor are paid for actual costs that can rise or be lowered under incentive and risk sharing provisions (Articles 9, 10 and 11)

14) General Conditions like construction operations provisions for all parties are contained in the base agreement (Articles 13, 14, 15, 16, 17, 18, 19, 20, 21, 22)

15) The Constructor is to develop a Lean Construction inspired Quality Plan at the beginning of Construction (Paragraph 13.1)

16) Disputes must first be resolved by the parties in the field, then if not successful, it is submitted to the Management Group, then if not successful, to a Project Neutral or Dispute Review Board (Article 23)

ConsensusDOCS 300 Analysis:

1) The only U.S. Construction Industry collaborative form of agreement that combines collaborative project delivery, BIM and Lean Construction

2) This three party agreement might be found to be a partnership resulting unintended joint and several liability which will have to be addressed somehow such as through an express apportionment of liability among the parties in the contract, special integrated or collaborative project group insurance coverage and/or the setting aside of contingency money to pay for any group exposure

3) The only agreement that contemplates true incentives and downside risk sharing in the same agreement for all parties

4) The pre-construction phases and duties of the parties including related to BIMs are not as detailed as the AIA IPD Documents and the AIA Integrated Project Delivery Guide project phases have not been adopted

5) With careful understanding, preparation, negotiation, supplementation, exhibits and addendums, this agreement is ready to be entered into now

6) Does not contemplate the use of project specific integrated project insurance but instead the usual individual party general, auto, excess, professional and property insurance coverages but the agreement can be supplemented to require project specific integrated project insurance

7) The Project Target Cost Estimate is finalized at the end of design versus the beginning of design as in the AIA IPD SPE Document, but can't exceed the Owner's Budget without the Owner permission, and is the basis for the Constructor's construction cost with some exceptions

8) The Project Target Cost Estimate is developed with the input of the trade contractors/suppliers unlike in the AIA IPD SPE Document where the Target Cost is developed like a baseline budget prior to trade contractor/supplier input

9) The Constructor by participating in pre-construction may give up the implied warranty of fitness of the plans/specs

This Collaborative Construction Resources, LLC (CCR) publication provides general information about the subjects discussed and is not meant to be all-inclusive or comprehensive, and is not legal advice, and readers should obtain their own legal counsel on said subject matters as needed If you are interested in learning more about these innovative new agreements please contact Rich or James!

Email: RCardwell@Construction.com
Phone: (513) 639-9246
Web: ConstructionOR.com

Email: James.Salmon@CollaborativeCR.com
Phone: 859-802-1118
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Web: CollaborativeConstruction.com
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