Tag Archives: AIA

The State of IPD and BIM: an Owner’s Perspective

Since owners benefit as much – if not more – than contractors and architects from use of the new digital technology tools and collaborative work processes now used on many building projects, why is it that we so seldom hear about building information modeling (BIM) and integrated project delivery (IPD) from the owner’s side?

To help rectify this situation, I decided to conduct an interview with Symphony Partners.

Clay Goser and Dawn Naney served as owners at BJC HealthCare prior to starting Symphony LLC and are extremely knowledgeable about how these new tools and processes serve the entire project team.

Saying you can do IPD without regard for a contract is a recipe for disaster: True or False?

Clay: False. It’s not about a contract -

Dawn: –  it’s about getting people to behave differently.

Clay: A contract is a tool that has two purposes – to set business terms and conditions and to allow the team  to have the critical conversations around expectations.  The reason IFOA agreements often work is that they are different enough that they introduce risk and firms want to know what that means for them.  The Integrated Form of Agreement (IFoA) begins to define how a group works as an organization.  What we don’t have most of the time is a conversation about what we’re going to do and how we are going to do it. The nature of IPD is getting people to come back together – collaborating to a greater extent. Collaboration is the behavior.

Dawn: The contract has a different purpose. The purpose of IPD is to identify and proactively manage risk and capitalize on opportunity within the delivery process.  The purpose of the contract is different. It asks: what are you going to do, how much are you going to get paid to do it and the process outputs required (i.e. status reports, schedules, RFI turn around times etc.) and does not address how are you are going to operate as a team and the procedures to implement the project.   Defining what you are going to build and HOW you are going to build it is critical to successful integration outside of the IFoA contract.  This is the behavior change.

What do you see as the current state of IPD?

Clay: IPD is firmly in Gartner’s Hype Cycle©  as we try to define what IPD will do for us. We will head for the Trough of  Disillusionment© -[ meaning when inflated expectations are not met, there will be a threat of abandonment. All new technologies and ideas go through this cycle.  Some survive, some don’t and that is dependent upon how long and how deep the trough lasts.   The risk we introduce is that as firms start to market IPD and implement without completely understanding why it works those waiting for IPD to become mainstream before introducing this new delivery method to their organizations, will abandon the concept as unpredictable and risky and start to question the value of integration.

Dawn: One challenge we’re having as an industry is distinguishing what is – and is not – an IPD project. We need to change the question.

Whether an IPD project is pure or IPD-ish is not the right question?

Dawn: Right.  There isn’t a standard checklist of “do this” that makes a team “IPD”.

Clay: Here’s an example: some teams feel that you have to  do BIM throughout the entire project to be IPD.   However, a team, for example, that adopts BIM to answer key critical questions that the team deems important to their success without creating waste – such as using BIM to define how the exterior structure ties into an existing structure that’s ‘pure’ IPD or integration at it’s best.   I have seen many design teams implement 100% BIM only to have the trade contractors turn around and dismiss the model because the model isn’t useful to fabricate from. True IPD would define how much BIM is needed from the design team to facilitate understanding and fabrication by the trades, stop there and let the person best equipped to carry it forward, carry it forward.   It’s based on the project, time and circumstance.

What do you see as the impact of the economy on IPD?

Dawn: When an owner goes for the lowest bid, they often just get what they pay for not what they need, which results in change.   We incent bad behavior when we, as Owners, award solely on lowest bid…i.e. we incent firms to hide the risk and submit change orders to course correct the scope instead of buying intelligent performance to avoid the risks and do it right the first time and eliminating the waste. Owners are under the impression that we’re in a buyer’s market, so they’re holding back from pursuing IPD. The market needs to look for better, smarter ways to be profitable and sustainable in a down economy and Owners needs to look for better, smarter ways to conserve precious capital.   Buying through low bid introduces risk to both parties.

Clay: As a percentage, all construction projects vs. IPD projects, the number of IPD projects is very small. There are a lot of conversations about how prevalent IPD is now. The industry is ramping up. Every IPD project is a petri dish from which we continue to learn. We’re at a very early adoption stage of IPD.

The economy is driving us to work and behave differently: smarter.

When people say “once the economy comes back we’ll consider change:” IPD won’t go gangbusters. When firms are busy they don’t have time to think about how to work better, more effectively: they are worried about how to get the work done.  People should be thinking about how to work more effectively NOW, so that they can differentiate themselves when the economy gains momentum.

What has been the impact of IPD case studies – those published by the AIA and University of  Minnesota? Is it your impression that owners are reading them?

Clay: Owners are interested in the IPD case studies, especially owners of robust and innovative organizations dedicated to continuous learning. Owners focused on keeping their head above water or adverse to risk aren’t as interested in the IPD case studies.

Owner-involvement in IPD is critical to a project’s success: Is owner-led IPD the only way to go?

Clay: Owners impact vendors – architects, engineers and contractors – by incentivizing and setting specifications, and not always in a good way. As for IPD, owners don’t always understand what IPD means.  Do Design-Bid-Build jobs go poorly? Yes. Do Design-Bid-Build jobs go well? Yes. What’s the difference? The team – how they cooperate, how they behave.

The question needs to be: How do we produce good collaboration and reproduce it?

Dawn: Owners must ask and seek out why IPD worked when it does work for them. Most of the time, it’s because the team wanted it to work well. The relationships were better and they problem solved in the best interest of the project, not themselves. Team formation is critical to successful integration.  Each new project is a melting-pot of different cultures melding together.    When you bring the right people to the table at the right time to best inform project decisions this integration occurs earlier in the process allowing for the critical forming, norming, storming and performing of the team to occur prior to construction when the cost of change escalates exponentially. IPD allows for time at the beginning for the team to create a team culture and define how they are going to work together.

Clay: When you show up early in the design process, IPD allows you to have a conversation about how you’re going to work vs. just show-up and perform.  Many firms are marketing IPD to Owners promoting the need for an IFoA agreement.  Many Owners don’t know what’s in the contract. What it involves or how it effects all of the team members as a group.

Architects, engineers and contractors say we have to do something different from Design-Bid-Build to remain profitable. Owners say: why don’t architects, engineers and contractors drive IPD?

Keep in mind, IPD after all, when it was first created, was used by the team without knowledge by the Owner!

Dawn:  Owners are asking: If IPD is so great, why haven’t you been doing it for 100 years?  Why do I need to incentivize you to “collaborate” by removing risk?

Owners are used to accepting the lowest bid. They have a hard time swallowing the IPD pill because it isn’t quantifiable or defendable to their Boards and Investors.

We need to educate Owners that IPD allows you to solve problems, avoiding risk and uncovering opportunities we didn’t know existed.   A lot of the time teams don’t know what the real problems are so they solve symptoms. What they need to do – and this comes from Lean – is identify the root problem and solve it.  We need to understand the cause and effect relationships of our behavior.

Clay:  An owner empowers an IPD team but doesn’t need to demand it.

Dawn: IPD is a smart way to work. If you don’t have the owner driving IPD, integrate anyway and reap the benefits as a best business practice.   It makes the team members more profitable, reduces risk and informs an improvement strategy that is sustainable and lucrative for future business. 

Can you do IPD without BIM?

Clay: You can’t divorce Lean from BIM from IPD. Lean is a not a methodology, but a philosophy.  BIM is a tool.   You don’t have to do BIM to be IPD. IPD is a means to an end. Lean is the end. BIM is a way to get there.   You can do IPD without BIM and have great results. BIM is a tool that helps facilitate communication – understanding what it is you are trying to achieve.

Likewise, you can use BIM without IPD but the benefits may be marginalized. BIM and IPD coupled together are stronger.

Rate obstacles in terms of most prevalent to least: owner involvement (thru ambivalence, skepticism, indifference); insurance issues; legal issues; blurring of roles; who owns the BIM; collaboration; need for education/processes; inflexible behavior; MEP/engineers; resistance to change.

Clay: The need for education and a consistent definition of what IPD really means, not how but what you are trying to accomplish is very important. 

Dawn: Most often, people want to jump into IPD and make it a revolution – not an evolution. Most owners don’t have the flexibility to change to IPD right away. IPD requires a change in process and considerable amount of change adoption.

People don’t resist change – they resist risk.  Remove the risk, remove the resistance.

Clay:  The collaborative nature of a nimble-thinking team approaches obstacles as problems to be solved.

Integration is the “leaning” of the entire delivery process wherever people and process touch each other.

We need to reframe “obstacles” as just “problems to be solved.”

Clay Goser has been responsible for projects in nine hospitals and over a half billion in medical construction in and around the metropolitan St Louis area. He left BJC Healthcare to start Symphony LLC, a company consulting in strategic improvement in portfolio, program and project management. Read more about Clay here.

Dawn Naney has over 15 years of experience establishing and managing teams responsible for the successful planning and execution of portfolios, programs and projects in a variety of fields including design/construction, information technology, clinical interventions and process improvement, primarily in the healthcare industry. Prior to serving as consultant at Symphony LLC, Dawn served as an owner in the area of Portfolio/Program/Project Management for the Center for Clinical Excellence. Read more about Dawn here.

Symphony LLC is a consulting firm providing collaborative leadership, education and management of capital portfolios, programs and projects primarily for the design and construction industry. Symphony balances tradition and innovation to lead high performance teams focused on delivering the best value for a fair price. Best value for capital expended is derived from improvements resulting in better quality and performance, reduced cost and competitive differentiation for owners and service providers. Learn more about Symphony LLC here.

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BIM and Integrated Design Top 10 Posts for 2011

2011 was an exciting year for BIM and Integrated Design.

For both my book and blog.

As well as for me, personally:

My book was published in September to great reader response and reviews

In 2011, I created the first-ever musical book trailer video for a BIM book, as well as:

  • Well-received speaking gigs on BIM, IPD, Thought Leadership, Lean Design and Construction at Berkeley, AIA HQ in Washington DC, Northwestern University, IIT and several others in Chicago
  • Not one but two BIM-related articles published in DesignIntelligence
  • Contributed to an article in Residential Architect magazine
  • Had a couple posts featured on Bob Borson’s blog, Life of an Architect
  • Co-founded an integrated AEC school in Chicago
  • Became a Top 10 AEC influencer on social media sites PeerIndex and Klout primarily through my involvement (and your support) on Twitter
  • Began writing a couple articles on BIM and IPD for AIA’s The Architects Handbook of Professional Practice 15th Edition to be released in 2013
  • Grew my consultancy, Deutsch Insights, that I co-founded 12 years ago by working with some of the best universities and BIM experts in the country

But none of this would have happened without you. Readers who continue to visit the blog and engage with its content.

For this and so much more, I thank you.

In case you didn’t catch all of these, here are the top 10 BIM and Integrated Design blog posts for 2011:

36 Arguments for the Existence of BIM

http://bimandintegrateddesign.com/2011/02/24/36-arguments-for-the-existence-of-bim/

Design and construction is made up of two kinds of people: 1. those who see BIM as an evolutionary tool and 2. those who see BIM as a revolutionary process. Or in more familiar terms there are BIM atheists and BIM apologists. Which are you?

How to Learn Revit in 1000 Difficult Lessons

http://bimandintegrateddesign.com/2011/03/01/how-to-learn-revit-in-1000-difficult-lessons/

There’s no getting around it – we each make learning difficult by not honoring the way we best learn.

For AEC Industry, Is Trust the Killer Mobile App?

http://bimandintegrateddesign.com/2011/06/21/for-aec-industry-is-trust-the-killer-mobile-app/

We’re all worried about how we’re going to build buildings when we ought to be focused on building trust.

First Fire, then the Wheel, and now BIM

http://bimandintegrateddesign.com/2011/05/16/first-fire-then-the-wheel-and-now-bim/

Owners didn’t ask for BIM. Nor for IPD. Never did. Not then and not now.

The Perpetual Improvement of Lean Design

http://bimandintegrateddesign.com/2011/01/05/the-perpetual-improvement-of-lean-design/

While much has been written about waste – resources, material, time, money – in construction, relatively little has been written about reducing waste in the design process. Here’s a start.

System Requirements for IPD to Flourish

http://bimandintegrateddesign.com/2011/03/09/system-requirements-for-ipd-to-flourish/

We all know with each release of software the computer system requirements increase. But how about for Integrated Project Delivery (IPD)?

BIM and Integrated Design: the College Curriculum

http://bimandintegrateddesign.com/2011/02/22/bim-and-integrated-design-the-college-course/

MoneyBIMball

http://bimandintegrateddesign.com/2011/10/02/moneybimball/

This movie raises two questions we need to answer: Is it time we honor our inner geek? Is it time we get creative with our data?

2011-12 BIM Conferences

http://bimandintegrateddesign.com/2011/08/12/2011-12-bim-conferences/

The announcement of the launch of BIM and Integrated Design: the college course gets me thinking about the role of BIM and IPD in academia.

Is BIM in 10 Words or Less Still BIM?

http://bimandintegrateddesign.com/2011/09/15/is-bim-in-10-words-or-less-still-bim/

When you pare Revit down, what’s lost in translation? Actually, very little.

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2011-12 BIM Conferences

Next week I’ll be attending the Symposium on Technology for Design and Construction, a 2-day event on the topic of BIM and related technologies in design and construction.

This is a very affordable event with what looks like an excellent line-up of speakers from the construction industry.

If you happen to be in or around Chicago next week feel free to stop by and say hello.

When: Thursday, August 18, 2011 & Friday, August 19, 2011

Where: Northwestern University, Norris Center, Evanston, IL, US 60208

For more information, list of speakers and topics visit http://www.techforconstruction.com/

These conferences are great opportunities to learn about BIM and other technologies, see how others are working with it. But as importantly, they are excellent networking events where you can meet face to face with those you have only known up until now online as an avatar.

Some conferences fall between the cracks.

I often speak at AIA conferences that feature BIM- and IPD-related themes but aren’t listed as BIM-related conferences.

For example, I’ll be speaking on the subjects of BIM and IPD at this year’s AIA Illinois 2011 Conference COLLABORATION / INNOVATION.

From that name, you might guess there was IPD content but not necessarily BIM-related presentations. Click here for details and a PDF of the brochure. 

In a recent discussion about my BIM book, my publisher (John Wiley and Sons) asked me for a list of upcoming BIM-related events and conferences.

I soon realized that there isn’t such a list available online (please let me know if I’m mistaken) so here goes a first stab at such a list of international, national and local BIM and BIM-related conferences coming up in the next year or so and their links.

If you know of an event not listed here – or want to make a correction – please do so in the comments.

International, National and Local BIM and BIM-Related Conferences

ACE 5th Annual BIM Conference – “The Owner’s Conference”

Phoenix, Arizona Area

Wednesday September 14, 2011 & Thursday September 15, 2011

http://events.linkedin.com/ACE-5th-Annual-BIM-Conference-Owners/pub/727128

CanBIM 11 Regional Session

September 15 – 16, 2011

Edmonton, AB Canada

View Details

buildingSMART Week

September 20 – 23, 2011

Singapore

View Details

AGC IPD and Lean Construction Building Conference in San Antonio, Texas, Sept. 21-24, 2011, at the Westin La Cantera Resort

http://news.agc.org/2011/08/12/ipd-lean-construction-building-conference/

SolidCAD University

Oct 18 in Toronto

http://bit.ly/n3diBG

ICE BIM Conference 2011

Wednesday 19th October 2011, London, UK

http://www.ice-bim.com (see comment below)

http://revitst.blogspot.com/2011/06/ice-bim-conference-2011.html

Urban Land Institute

Oct 25-28 in LA

http://ULIfall.org

Fall 2011 BIMForum Washington DC  November 2-3, 2011

http://bimforum.org/2011/04/22/bimforum-schedule-2011-2013/

http://bimforum.org/2011/08/10/dc-bimforum-call-for-presentations-2/

Autodesk BIM Conference

Nov 16, 2011, London

http://t.co/zhfcO0E

AIA TAP Conference TAP @ BuildBoston

Nov 17, 2011 8:00 AM – 7:30 PM

http://network.aia.org/TechnologyinArchitecturalPractice/Events/EventDescription/?CalendarEventKey=fe691360-1614-4972-b00d-c421bb79a5cd

Autodesk University 2011

The Venetian in Las Vegas, November 29–December 1, 2011

http://au.autodesk.com/?nd=e2011

National BIM Conference

Dec 5-9, 2011 Washington DC

http://www.aececobuild.com/bim-conference

ENR FutureTech Conference

Dec 12-13 in San Francisco, CA

http://bit.ly/nE3ggb

Autodesk BIM Conference

(Should occur in or around Dec 2011)

http://aecmag.com/index.php?option=content&task=view&id=401

BIM 360 Virtual Conference

Hosted by IMAGINiT Technologies FRAMINGHAM, MA

(Should occur in February 2012)

http://imaginit.com/news/press-releases/2011/IMAGINiT-Hosts-BIM-360-Virtual-Conference

2012 Revit Technology Conference USA

(Should occur in June 2012, Boston MA; also occurs annually in May in Australia http://www.revitconference.com.au/rtc2011au/)

http://www.revitconference.com.au/index.htm

Know of any BIM or BIM-related conferences not listed here? Please let me know by leaving a comment. Thanks!

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What’s Your BIM (BusIness Model) Done 4 U Lately?

It’s time for you and your organization to rethink your business strategy.

This post will introduce a fascinating, far-reaching and beautifully designed book that will challenge the way that you create value for your clients and think about how you approach Building Information Modeling (BIM) and Integrated Design.

Changing times and the harsh new realities of doing business in the AEC industry requires all of us to get innovative.

BIM especially requires design professionals to be as creative in their business strategy as they are in the design of buildings.

Do you know for certain how you can get the most value for the work you are undertaking?

A refresher on the BIM Business Model

Obsolete AEC business models are being replaced by those driven by BIM and the collaborative work process enabled by the technology.

For a quick refresher on the current (old) AEC Business Model, turn here, the Introduction to the BIM Handbook.

There are of course several BIM business models – determined by what phases you work in and the chosen delivery method.

As Joseph Joseph presented at AU in 2009, “Companies often make the mistake of embracing Building Information Modeling (BIM) as yet another technology and tool. BIM is a complete process solution that integrates within an organization structure. BIM is a business decision that pushes the envelope and moves companies in the AEC industry out of their comfort zone to explore new ways of writing proposals, budgeting, staffing, and billing jobs in a revamped approach.”

Here’s a free 19 page handout from his presentation.

Another author with the initials JJ offers a number of BIM business strategies noting that “BIM can be used at different levels to suit a firm’s business model and client needs. No matter how far you go with the technology, you can recognize benefits by addressing its capabilities and risks in both business strategy and organizational culture.”

You can find James Jonassen’s excellent article here at DesignIntelligence covering the following BIM business strategies:

• BIM through design only
• BIM through construction only
• BIM in design-build
• BIM in integrated project delivery
• BIM in enterprise/project integration

You might recall Jonassen is the author of AIA’s seminal Changing Business Models in BIM-Driven Integrated Practice, here included in the Report on Integrated Practice series.

Unprecedented BIM Business Models for Unprecedented Times

The thing is, we’re living in unprecedented times. We all need to be creative in how we go about serving our clients – and getting paid for the considerable work that we’re doing.

Doing the same thing, taking the same approach, over and over, irrespective of the client or situation – whether stylistic sense or business sense – no longer works for the design profession and construction industry.

Coming-up with a creative BIM business model is a great start to assuring that the client is satisfied and you walk away with a profit.

To be creative in your BIM business strategy it helps to know what your options are.

It also helps to know how others have approached similar business situations so that we can learn from them.

That is where this magnificent new book comes in.

BIM, meet BMI.

Building Information Modeling, meet Business Model Innovation, that is.

A self-described handbook for visionaries, game changers, and challengers striving to defy outmoded business models and design tomorrow’s enterprises, Business Model Generation is a model book for those who communicate design ideas for a living.

In short, BMG is a very practical and accessible tool to analyze and improve you and your business.

“Business model innovation,” say the book’s authors, “is about creating value, for companies, customers and society. It is about replacing outdated models.”

What is your organization’s business plan?

What is yours?

Whether you have one that is outmoded or don’t have one, you need this book.

How do you plan on leveraging BIM?

How do you plan on leveraging IPD?

Making the work process work for you financially is what this book will help you accomplish.

Are you getting paid for all the extra work that goes into your BIM models?

What’s your value proposition?

If not top of mind – if your answer isn’t on the tip of your tongue – then this book’s for you.

Business Model Generation: A Handbook for Visionaries, Game Changers, and Challengers

This book will help you launch, re-launch or advance your career and business from a value creation standpoint.

BMG is an indispensible manual on how to map, analyze, and strip-down your organization’s business model and reassemble it into something that creates real value. 

The starting point is the Business Model Template which allows you to break your business down into:

  • Key Activities – What you do every day to make the model work
  • Key Partners – Your suppliers and partners that help you make the model work
  • Key Resources – The most important assets you used to create value
  • Cost Structure – All the costs involved in running the business
  • Customer Relationships – The types of relationships you have with your customer segments
  • Customer Segments  – The different groups of people you’re trying to reach and serve
  • Channels – How you reach your customer segments
  • Revenue Streams – Where you make cash from your customer segments
  • Value Proposition – The key ideas that create value for your customer segments

For me, there are three undeniable benefits brought about by this book that compel me to recommend it here in a BIM and IPD blog.

1. Like IPD, the book follows its own advice and was written collaboratively – by a team of 470 practitioners (co-contributing co-creators) in 45 countries.

2. Business models, like building models, come in many shapes and sizes. You will recognize many of the books and cases mentioned in this book – and learn things about them that you didn’t know. This book will re-familiarize you with the most popular models – and encourage and inspire you to come up with your own – one  that will work best for you or your organization.

3. The book is stunningly beautiful to look at – both rough and polished, well-designed – it will inspire; has the look and feel of Francis Ching’s books from the 70’s. It would be a sin to read this book on a Kindle or iPad. This one you have to feel in your own hands. The book is no stranger to visual and architectural design: one section of the book is entitled Patterns, and opens with an architect Christopher Alexander quote. The book was designed by The Movement http://www.thmvmnt.com/ a Global Change Agency that creates with people.

In the interest of brevity, I won’t review the book here. Life is short – read it.

Still not convinced? For a summary see the following links and “About the Book” below.

Considering going back for your MBA?

This book will provide you with all you need to know for an MBA in BIM.

Order this paperback book here.

Get a taste (a 72 page PDF preview) of it here for free.

Visit the website.

Read co-author Alexander Osterwalder’s blog.

About The Book

Synopsis

Disruptive new business models are emblematic of our generation. Yet they remain poorly understood, even as they transform competitive landscapes across industries. Business Model Generation offers you powerful, simple, tested tools for understanding, designing, reworking, and implementing business models.

Business Model Generation is a practical, inspiring handbook for anyone striving to improve a business model — or craft a new one.

Change the way you think about business models

Business Model Generation will teach you powerful and practical innovation techniques used today by leading companies worldwide. You will learn how to systematically understand, design, and implement a new business model — or analyze and renovate an old one.

Co-created by 470 strategy practitioners

Business Model Generation practices what it preaches. Co-authored by 470 Business Model Canvas practitioners from 45 countries, the book was financed and produced independently of the traditional publishing industry. It features a tightly-integrated, visual, lie-flat design that enables immediate hands-on use.

Designed for doers

Business Model Generation is for those ready to abandon outmoded thinking and embrace new, innovative models of value creation: executives, consultants, entrepreneurs — and leaders of all organizations.

Added Value

One reviewer offered this comparison with other popular books on business models:

* The Ultimate Competitive Advantage: Secrets of Continually Developing a More Profitable Business Model by Mitchel, Coles, Golisano and Knutson, has a heavier focus on marketing with some ideas and questions relating to one-sided business models, so if you are looking to “sell more” perhaps you like this book.

* The Profit Zone: How Strategic Business Design Will Lead You to Tomorrow’s Profits by Slywotzky, Morrison and Andelman, has a heavier focus on profitability and the changing areas in which high profit is possible to keep, it is a quick read and perhaps complementary to The Business Model Generation that focus less on profitability.

* Open Business Models: How to Thrive in the New Innovation Landscape by Henry Chesbrough has a heavier focus on technological innovation in the context of business models and also covers the important area of Intellectual Property in relation to open business models.

* Getting to Plan B: Breaking Through to a Better Business Model by John Mullins and Randy Komisar, focus more on entrepreneurship and start-ups and on learning from experimentation and adjusting the business model, also with more focus on financials.

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