Contract - June 2013 - (Page 74)

diagrams: courtesy perkins+will feature Trailblazing Project Delivery Lessons in Implementing IPD for Small Interior Projects by Joan Blumenfeld, FAIA, IIDA, LEED ID+C over the past several years, perkins+will has worked with two clients—the furniture manufacturer Haworth and a large financial services firm—on a series of relatively small interior design projects using integrated project delivery (ipd), a collaborative method with a shared risk/reward model. working on interior design projects in this format is unusual, as ipd was originally developed to streamline and restructure project delivery for large, complex, and program-driven architecture projects like hospitals and laboratories. But we found advantages in experimenting with this form of design and implementation, even for work at modest scales. the projects for Haworth are unique and highly detailed showrooms in chicago, Houston, and Boston, ranging in size from about 6,000 to 25,000 square feet. at the other end of the spectrum, the financial services projects involved rollouts of very standardized spaces on a repetitive floorplate, 74 comprising about 50,000 square feet per portion of work. inventive and entrepreneurial senior managers at both companies chose to implement ipd in their interiors designed by perkins+will. the ipd structure required training for all of the team members, and the contracts also needed careful review because they were quite different from a standard form. for both clients, the intent was to amortize these costs with the same team over a series of small projects in exchange for the possible advantages of operating within this new and more collaborative system. risk and reward defined differently in ipd process many innovative aspects of ipd spring from its unique structure, but the prime and critical differentiator lies in the contract form itself. in fact, the innovations are all driven by the financial and compensation incentive structures set forth in the contract, which assign risk and reward differently based on outcomes. these provisions motivate big changes in attitude and behavior. in an ipd contract, there is only one pool of money, called the target cost, from which all of the team members draw. if the project stays within the target cost, all team members collect their profit. if, without change in scope, the project goes over the target cost, the overage is taken out of the team’s profit until it is gone. once the profit is completely used up, the owner is responsible for paying the team members at break-even cost without profit. what are the risks? for team members, the risk is that they will complete a job without any profit. for the owner, the risk is having to pay the team for hours of work at a break-even rate and cover the construction cost overage without limitation until the project is finished. Because there’s only one pool of money to draw from, everyone becomes mutually responsible for the successful performance of all of the other team members. it’s a real financial incentive for team members to help one another keep a project on track. with both clients, perkins+will learned that an unforeseen advantage of working on multiple and serial projects was the level of trust and respect that grew out of working collaboratively over time. during the early phases of the project for the financial services company, the team investigated alternative construction scenarios dependent on the design of various elements to see which would be most efficient. during construction, there were fewer change orders than usual because the team was better able to foresee and solve problems in the field. construction quality was better because of more vigilance on the part of the contractors, with fewer post-move-in fixes required. Both of these aspects were tracked throughout the project as a metric for its success and benchmarked against other similar jobs. for the Haworth project in Houston, the designers, contractor, and subcontractors worked contractdesign.com june 2013 http://www.contractdesign.com

Table of Contents for the Digital Edition of Contract - June 2013

Contract - June 2013
Contents
Editorial
Industry News
Columnist: Making the Decision to Respond to an RFP
Exhibition: HD Expo 2013
Product Focus: Suzanne Tick Joins Forces with Teknion
Product Focus: Rattan in the Round
NeoCon® preview
Trailblazing Project Delivery
Steelcase Innovation Center
Giant Pixel
Concrete
Sierra Pacific Constructors
United Nations Trusteeship Council Chamber
Designers Select: Seating
Sources
Ad Index
Detail: A Chair so Comfortable it Just Might Contribute to World Peace

Contract - June 2013