Monday, March 31, 2008

It is a mistake to even attempt to shift risks and dictate amendments/supplemental terms on collaborative or integrated project delivery agreements!

Any prospective party and their legal counsel/risk manager to the ConsensusDOCS 300 Standard Form of Tri-Party Agreement for Collaborative Project Delivery (ConsensusDOCS 300) and Form of Integrated Agreement (FOIA) that tries to unduly shift risks to one or more other parties and dictate amendments and supplemental terms/protocols (even as early as in the RFP) to these agreements will cause the other prospective parties to lose faith and trust that the party pushing such changes and terms is looking out for the project's best interest ("Best For Project") as is required under these relational contracts, but is instead only in looking out for their own legal and financial interests. This is especially the case for construction owners and their in-house or outside construction attorneys!

Under the ConsensusDOCS 300 and FOIA, actions and decisions must be made together and collaboratively after achieving a consensus in a Best For Project manner. The final negotiated terms of the ConsensusDOCS 300 and FOIA are no different. We believe that attempted risk transfers and/or a dictation of contract amendments/supplemental terms will "boomerang" against the party making such attempts (we call it "boomerang risk shifting")!

Instead, for these agreements to work at all, it is recommended (especially the first time around!) that amendments and supplemental terms and protocols to the ConsensusDOCS 300 and to the FOIA only be drafted by construction owner, designer and/or constructor's legal counsel/risk managers after: (1) the prospective parties have been educated on and prepared for the very important Best For Project (versus best for an individual party) philosophy and approach and unique features/requirements of these agreements; (2) the prospective parties have met face-to-face one or more times with or without the assistance of special consultants and (3) only after the prospective parties have verbally agreed or agreed in principal on the many negotiating points of these special, landmark agreements.

In short, stakeholders on major construction projects must begin to re-think their approach and to focus, from the very beginning, on how to achieve "Best for Project" results!

Thursday, March 27, 2008

CCR and COR COATS Presentation

Today Collaborative Construction Resources, LLC and Construction Owner Resources, LLC made a joint presentation to Construction Owners Association of the Tri-State, (COATS) the Cincinnati based local chapter of The Construction Users Round Table (CURT). A copy of the presentation is available at the link above. Attendees and visitors alike are invited to comment below!

Tuesday, March 25, 2008

What is the NBIMS Project Committee?

The National Building Information Model Standard (NBIMS) Project Committee was tasked, in its charter, with improving the performance of facilities over their full life-cycle by fostering a common, standard and integrated life-cycle information model for the Architectural, Engineering, Construction and Facilities Management professions. The NBIMS to be a comprehensive standard that will develop and matured over time. A PDF copy of Version 1, Part 1 of the National Building Information Modeling Standard is now available on the web. If you are interested in learning more about how to put this new protocol, ad other revolutionary tools to work on you next project please contact us!

Thursday, March 20, 2008

Collaborative Construction Resources, LLC Joins NBIMS Project Committee's BPITT

Today Collaborative Construction Resources, LLC joined the National Building Information Model Standards Project Committee (NBIMS Committee) as a member of the NBIMS Committee's Business Process Integration Task Team, (BPITT). The BPITT is charged with facilitating the integration of BIM into the business models of ALL those involved in the facility life cycle. This invitation is indicative of CCR's leadship on a national scale. CCR is now working closely with many members of the ConsensusDOCS coalition, including the Associated General Contractors, (AGC) the Construction Users Round Table, (CURT) and the Lean Construction Institute (LCI), as well as leaders in the federal government and regional state governments to ensure that the entire construction industry learns to use collaborative agreements, BIM and lean construction techniques effectively. We will bring you more information about CCR's role with the BPITT soon!

What is BIM?

In March of 2006 the National Building Information Model Standards (NBIMS) Project Committee adopted the following definition of BIM:

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

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

* The US National BIM Standard promotes the business requirement that this model be interoperable and based on open standards.

Collaborative Construction Resources, LLC is a member of the Business Process Integration Task Team that was recently formed by the NBIMS Project Committee and we welcome your input. If you have ideas about integrating BIM into your organizations business process or if you come across interesting articles we should link to please let us know. Meanwhile, subscribe to our site so you can stay abreast of the fast moving developments in this rapidly evolving arena.

Tuesday, March 18, 2008

What is so great about ConsensusDOCS 300?


The ConsensusDOCS 300 Standard Form of Tri-Party Agreement For Collaborative Project Delivery (ConsensusDOCS 300) is the only integrated or collaborative project delivery industry form contract currently on the market. The model for the ConsensusDOCS 300 is the Form of Integrated Agreement (FOIA) used successfully on completed and ongoing Sutter Health Projects that also are extensively utilizing building information modeling (BIM) and lean construction techniques.

The ConsensusDOCS 300 is groundbreaking for several reasons. First, the ConsensusDOCS 300 is a Tri-Party Agreement where the Construction Owner, Designer and Constructor are equal parties and come together to form a Management Group to collaboratively manage and make decision on projects (Article 4). This is unlike design/build project delivery where the Architect is usually a subordinate party to the contractor. Also unlike design/build contracts, under the ConsensusDOCS 300, the Construction Owner continues to be intimately involved with all aspects of the project as part of the Management Group, including with scope, schedule and costs right to the end of the project. Under design/build delivery, the construction owner often loses control over final project scope and cost in exchange for a shifting of risk to and obtaining a guaranteed maximum price (GMP) from the design/builder that is usually anything but guaranteed. Also in contrast to design/build which tries to lock in the GMP at 20 to 30% of design, the ConsensusDOCS 300 locks in the construction cost or Project Target Cost Estimate PTCE with an amendment to the ConsensusDOCS 300 at 100% design (Article 8).

Other truly innovative features of the ConsensusDOCS 300 are that prior to locking in the PTCE, the Agreement promotes collaborative and a value-based design and cost modeling around a master BIM that includes key subcontractors under working agreements (Articles 6, 7 and 8). Among other things, this collaborative, BIM centered design process during preconstruction virtually eliminates costly and time-consuming contractor requests for information, change orders and re-work during construction. Under the ConsensusDOCS 300, the Designer remains the Architect-of-Record and has the final design say and BIM control (through a detailed BIM protocol that is part of the Agreement) and the Constructor remains responsible for construction means and methods (Article 3). Also, the ConsensusDOCS 300 permits risk sharing within certain limits (e.g., a percentage of profit for the Designer and Constructor) and a sharing of cost savings up to specified levels--both keys to a Best For Project focus (Article 11)! Last but surely not least, lean construction best practices and principals are the foundation of and found throughout the ConsensusDOCS 300.

The New “Must Have”—The BIM Manager

Dominic Gallello, President & CEO of Graphisoft notes the importance of BIM Managers in the article linked above.

At Collaborative Construction we believe there is a need for BIM Managers, Lean Consultants and Collaborative Consultants on major projects. There are tremendous savings to be had by bringing the power of collaborative agreements, like ConsensuDOCS 300 Series and Sutter Health's Integrated Form of Agreement, to bear on major projects where BIM and lean construction techniques are also used.

Monday, March 17, 2008

Competing Forms of Agreement

At Archi-Tech Magazine Robert Paul Dean and Susan McClendon compare and contrast the competing forms of construction agreements offered by the American Institute of Architects (AIA), the Engineers Joint Contract Documents Committee (EJCDC), and the Associated General Contractors of America (AGC) in conjunction with 19 other construction associations comprising a new organization called ConsensusDOCS. This article provides a helpful history of the documents offered by each organization, though it fails to fully appreciate the revolutionary nature of ConsensusDOCS 300 Series and other collaborative forms of agreement like the Form of Integrated Agreement (FOIA) used by Sutter Health on its Camino Project in California or even AIA's forthcoming Integrated Project Guide which describes the collaborative form of agreement adopted by AIA's California Council.

Saturday, March 15, 2008

The Collaborative Revolution

This Blog is an extension of Collaborative Construction Resources, LLC (CCR) and this post introduces the ideas CCR is advocating throughout the construction industry. Others interested in collaborative or relational contracts, Building Information Modeling (BIM) and lean construction techniques are encouraged sign up and comment.

The construction industry is experiencing tectonic changes! Those changes are being driven by technological advances in Building Information Modeling, increased adaptation of lean construction techniques and revolutionary new collaborative agreements that enable construction industry stakeholders to align their interests and pursue a Best for Project approach to projects that saves time and money. Collaborative Construction Resources (CCR) strongly recommends that the construction industry prepare NOW for the coming revolution. Relational multi-party contracts such as the ConsensusDOCS' 300 Series Tri-Party Agreement for Integrated Project Delivery - ConsensusDOCS 300 - Sutter Health's Form of Integrated Agreement – FOIA - and AIA's Integrated Project Delivery Guide – IPDG - which will soon become another AIA form contract, along with building information modeling software – BIM, NBIMS - and lean construction principles, Lean Project Delivery Systems and the Last Planner System -LPDS tm, LPS tm – championed by the Lean Construction Institute - LCI -, are revolutionizing the construction industry. These exciting new tools allow stakeholders in the construction industry to position themselves to deliver projects under a productive and cost effective Best for Project approach. Relying on sophisticated relational contracts to align stakeholders' interests, mitigate and manage risks, while maximizing merit based rewards, Collaborative Construction Resources, LLC ("CCR") and CCR's strategic affiliate Construction Owner Resources, LLC ("COR") bring key stakeholders to the table as early as possible to learn about relational contracting, BIM and lean construction concepts. Construction industry stakeholders that understand and utilize these exciting new tools will excel; those that don't will fail. ConsensusDocs 300 has been widely distributed, while BIM and Lean have been widely discussed, but few in the industry yet know how to put ALL of these powerful new tools to work on a single project. CCR and COR provide practical direction to construction industry clients who are interested in using ConsensusDOCS 300, BIM and Lean Construction effectively.

CCR and COR are leaders in the collaborative construction movement that is sweeping the industry and bringing projects to life on computer screens, smart-boards and in job trailers across the country. Major construction projects like Sutter Health's $100 million Camino Medical Group Project in California, the $43 million Cardinal Glennon Children's Hospital in St. Louis, and the $142 million St. Clare Replacement hospital in Milwaukee have all been successfully delivered under a Best for Project approach that utilizes relational contracts, BIM and lean to achieve phenomenal results! Next up in the Midwest is a $300 million hospital bed tower in Owensboro, Kentucky.

The key to the collaborative construction revolution is the emergence of unique relational contracts that are fostering and preserving relationships that serve as project glue AND providing a strong contractual foundation from which project stakeholders can aggressively launch innovative BIM models and freely utilize proven lean construction techniques. The innovative Multi-Party Consulting Agreement used by CCR and COR foreshadows the execution of a formal relational contract on a major construction project by clients. Parties to these Multi-Party Consulting Agreements learn the benefits of the Best for Project approach and are encouraged to build relationships, both personal and economic, while developing and honing the skills and institutional knowledge necessary to compete and excel in today's rapidly evolving construction environment.

The introductory materials linked in this post cannot even begin to scratch the surface of the exciting options available to stakeholders who choose to pursue a collaborative Best for Project approach. Those interested in additional information should visit the collaborative websites linked on this blog, review the forms of relational contracts linked in this post, and take a look at the recently released NBIMS protocol. Everyone in the construction industry is keenly aware of the looming impact of BIM, but too many industry leaders believe real change is 5 to 10 years away. People with that mindset have no idea how rapidly our technological knowledge is advancing, how many lessons we learned from the implementation of 3D computer modeling and computer aided design in the manufacturing sector and how quickly emerging relational and collaborative contracts will change the legal rules of the game.

We are inviting the entire construction industry to join CCR and COR, as well as other leaders in the collaborative revolution, for a series of low cost teleconferences at which key team members can learn much more about how to put these exciting new tools TO WORK for their organizations. We also ask that construction industry participants link to this post and pass it on to others in the construction industry and invite them to attend the tele-conferences together. CCR and COR are not interested in platitudes and empty talk. We are all about action and we provide clients with the knowledge they will need to execute and deliver under a collaborative Best for Project approach. CCR and COR understand that the revolution is NOW, early adapters will EXCEL and fence sitters will FAIL. We don't want our clients to be fence sitters. We want them to call TODAY to schedule a low cost initial consultation or join us on-line for one of our low cost teleconferences!

For more information contact us