Adding Value to the Facility Acquisition Process Best Practices for Reviewing Facility Designs (2000) / Chapter Skim
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2 Facility Acquisition Practices and Industry Trends
2 Facility Acquisition Practices and Industry Trends
Pages 8-23
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From page 8... ...
Regardless of the contracting method used, the acquisition of a facility will necessarily involve activities and decisions related to conceptual planning, design, procurement, construction, and start-up. A more complete discussion on contract methods and the role of the owner in the review of designs is provided later in this chapter.
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From page 9... ...
Such equipment procurement may proceed in parallel with construction phase activities, so that the owner ultimately is able to furnish long-lead-time equipment to the construction contractor in a timely manner, thus avoiding construction delays attributable to late equipment delivery. Early in the construction phase a formal construction management plan is developed describing the intended sequence and method of construction activity as well as the relationships, responsibilities, and authorities of all involved parties (owner, user, A/E, construction contractor, speciality contractors, and relevant consultants)
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From page 10... ...
· Technology advances such as computers, computer-aided design software, cell phones, and fax machines that have transformed both design and construction management efficiency and effectiveness. · New construction equipment, especially for materials handling.
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From page 11... ...
TRENDS IN PROJECT COST AND SCHEDULE Ongoing research by CII into construction industry benchmarking and metrics indicates that overall project cost and schedule, as well as postcontract award cost and schedule growth, are being reduced throughout the construction industry. Nearly everyone is enjoying some degree of increasing productivity, a classic case of "a rising tide lifts all ships." CII's research divides facility owners and construction contractors into four quartiles in terms of cost and schedule growth experienced on completed projects.
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From page 12... ...
Downsizing and the increased outsourcing of design and construction services have provided the impetus for selecting methods other than the traditional design-bid-build contract method. Although there are many variations, current practice recognizes four basic categories of contract types that apply to several facility acquisition systems: · general contract, · construction management, · design-build, and · program management.
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From page 13... ...
13 1 Constructor me, and construction service providers, implying that the owner must also manage all interfaces between service providers. Under this approach it is common for owners to enlist outside consultants for various functions of the acquisition process.
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From page 14... ...
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From page 15... ...
Under the design-build approach, an owner prepares a project scope definition and then engages a single entity that will provide all services necessary to complete the design and construct the facility. Generally, the scope definition package represents a design that is between 15 and 35 percent complete, although variations of the design-build approach may begin much earlier, often with a performance specification, or much later with perhaps a 65 percent design package.
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From page 16... ...
is engaged by the owner to exercise oversight of the entire facility delivery process for a multitude of projects, from planning through design, construction, outfitting, start-up, and postoccupancy activities. Similar to the construction management encroach.
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From page 17... ...
Nonetheless, the trend is unmistakable: Evolving contract mechanisms and owner and contractor interfaces require a much closer and collaborative relationship between parties than has traditionally been the case with the facility acquisition process. TEAMWORK AND COLLABORATIVE PROCESSES The facility acquisition process traditionally has been an adversarial environment, with facility owners, designers, and constructors separated by formal contractual documents and backed up by teams of lawyers.
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From page 18... ...
, the CII, The Business Roundtable, and others point to the importance of conceptual or advance planning to the entire facility acquisition process. Predesign phases of the decision-making process are critical because it is during these phases that the size, function, general character, location, and budget for a facility are established.
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From page 19... ...
. These cost growth drivers include · construction change orders required to correct errors and omissions in the design documents; design; design; · owner-driven construction change orders required to incorporate desirable features overlooked during · inefficient construction resulting from a failure to incorporate construction-enhancing features during · rework resulting from unclear construction documents; · standby costs incurred while construction is either stopped or slowed to incorporate changes; · litigation;
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From page 20... ...
The estimated payback ratio here ranges from $8 to $34 saved for every dollar invested in a discipline interface design review activity. Intuitively, good design review practices result in the preparation of more comprehensive and accurate construction documents, which in turn result in lower project construction costs.
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From page 21... ...
Although the IPA database is proprietary, IPA has collaborated with research studies such as The Business Roundtable white paper The Business Stake in Effective Project Systems. IPA also helped the CII implement a benchmarking activity within its membership.
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From page 22... ...
If design review activity during the conceptual planning phase has resulted in a clear scope of work regarding the owner's expectations, design reviews during the design phase are greatly simplified. Those parties involved should focus upon ensuring that the evolving facility design incorporates high standards of professional engineering practice with regard to architectural, civil, structural, electrical, and mechanical systems and their interfaces.
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From page 23... ...
Lessons learned during the five facility acquisition phases concerning design strengths and weaknesses should be recorded for use in improving future similar project activities. And perhaps most important, the facility users' subjective satisfaction with both the acquisition process as well as the completed facility should be noted.
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