Owners Perspective

OWNERS

FALL 2017

PERSPECTIVE THE OFFICIAL MAGAZINE OF THE CONSTRUCTION OWNERS ASSOCIATION OF AMERICA

Project Leadership Silver Award Winner

Ohio State University's CBEC Building & San Antonio's Henry B. Gonzalez Convention Centre

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COA A 2017 SPRING CONFERENCE REVIEW | M E M B E R Q & A : B R E N T DA R N E L L | KEEPING YOUR PROJECT ON SCHEDULE | OW N E R A LE R T S | A R T O F PROJ EC T B U DG E T M A N AG E M E NT

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May 9 - 11, 2018 Omni William Penn Pittsburgh, PA

www.coaa.org

CONTENTS

OWNERS

PERSPECTIVE COVER STORY

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THE OFFICIAL PUBLICATION OF:

PROJECT LEADERSHIP SILVERS AWARD WINNERS Ohio State University's CBEC Building & San Antonio's Henry B. Gonzalez Convention Centre

MAGAZINE EDITORIAL COMMITTEE Matt Handal COAA Communications Committee Chair Trauner Consulting Services

By Matthew Bradford

Mike Biesiada Structural Group James C. Jankowski Cannon Design

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Laticia A. King COAA

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Michelle Orr Gilbane Building Company

PUBLISHED BY:

MediaEdge Communications 5255 Yonge Street, Suite 1000 Toronto, Ontario M2N 6P4 President Kevin Brown Publisher and Senior Vice President Chuck Nervick chuckn@mediaedge.ca Editor Matthew Bradford matthewb@mediaedge.ca Senior Designer Annette Carlucci

THE ART OF PROJECT BUDGET MANAGEMENT

Exploring, learning, and connecting at the “Gateway to the West”

By Bryan Carruthers

By Matthew Bradford

Account Executive Danielle Stringer danielleS@mediaedge.ca Contributing Writers Matthew Bradford Bryan Carruthers Matt Handal Joshua B. Levy

COAA 2017 SPRING OWNERS LEADERSHIP CONFERENCE

18 DEPARTMENTS 4

Owner Alerts

By John Sier

Are you interested in having your project profiled in an upcoming issue of Owners Perspective?

Please contact Chuck Nervick at 866-216-0860 ext. 227 or by email at chuckn@mediaedge.ca

10 COAA Member Q&A

© 2017 All rights reserved. The contents of this publication may not be reproduced by any means, in whole or in part, without the prior written consent of the association and publisher.

22 New Members

Brent Darnell, founder of Brent Darnell International

By Matt Handal

Calendar of Events KEEPING YOUR PROJECT ON SCHEDULE Requiring timely and accurate reporting from your contractor

By Joshua B. Levy

OWNER ALERTS

Ameri c an I ns t itute of A rc hite c t s issues 2017 edition of several forms – older forms allowed to be used until October 31, 2018

OWNER ALERTS

Construction necessarily occurs in the legal environment, which can be unique for each state, district, or circuit. Changes and developments can take place gradually or unexpectedly, and most changes will affect contracts already in place as well as future projects. COAA is a great resource for maintaining currency on industry evolution and identifying best practices.

By John Sier

As most publishers of “standard” contract forms, the American Institute of Architects has issued its latest update to several of the more familiar forms used by some Owners as templates or base documents for agreements with contractors and architects.

The primary documents updated include: A101™–2017, Standard Form of Agreement Between Owner and Contractor where the basis of payment is a Stipulated Sum, along with A102™–2017, Cost of the Work Plus a Fee with a Guaranteed Maximum Price, A103™–2017, Cost of the Work Plus a Fee without a Guaranteed Maximum Price, A104™–2017(formerly A107-2007), Standard Abbreviated Form of Agreement Between Owner and Contractor, and A105™–2017, Standard Short Form of Agreement Between Owner and Contractor Including a new Exhibit A addressing insurance requirements A201™–2017, General Conditions of the Contract for Construction B101™–2017, Standard Form of Agreement Between Owner and Architect, along with B102™–2017, without a Predefined Scope of Architect’s Services, B103™–2017, for a Complex Project, B104™–2017, Standard Abbreviated Form of Agreement Between Owner and Architect, and B105™–2017, Standard Short Form of Agreement Between Owner and Architect E204™–2017, Sustainable Projects Exhibit As a general observation, the updates are recognizing the preference for greater dialog between Owners and architects and contractors on points such as Building Information Modeling, sustainable practices, lines of communication and insurance. For many owners using or considering the AIA documents, the significant changes in the B101 include the elimination of Exhibit A to contain the “Initial Information;” instead, the physical characteristics, budget milestones, project delivery method, use of BIM and protocols as well as other project descriptors are dialog items to be completed before signing the contract. Since there was no form “Exhibit A,” that document frequently has been non-existent under the current version and predecessors of the B101. Now, the conversation is more explicitly stated in the

4 OwnersPerspective.org

OWNER ALERTS

document. Additionally, the new versions distinguishes between “Additional Services” that arise during the course of the project and “Supplemental Services” that are identified at the time of the contract as being outside of Basic Services but still are being performed as part of the project. This may relieve some of the confusion that was generated by the chart of “Additional Services,” especially since the chart is simplified to indicate who, if anyone, is providing the “Supplemental Service.”

Both the B101 family of documents and the A101 family of documents recognize the need for direct communications between the Owner and the Contractor.

Earlier versions of the documents required all communications to channel through the Architect. While the new documents ref lect t his direct communicat ion, bot h t he cont ractor and t he ow ner are encouraged to copy the architect and keep the designer informed of the communications. This is not unlike the structure of communications envisioned by the ConsensusDocs contracts.

The most noticeable change across all of the documents is the treatment of insurance. Rather than being the runic topic buried in the Supplementary General Conditions, insurance is brought front and center requiring extensive discussions on topics as broad ranging as professional liability for the contractor to cybersecurity insurance to responsibility for builder’s risk and the scope of coverage. Instead of simply applying a rote number to a line of insurance, the new insurance Exhibit A lists various topics and types of coverage to be discusses and evaluated for applicability on a given project. W hile not ever y policy or coverage is necessary in every setting, having this document force the conversation will help Owners understand and identify the appropriate insurance product on the project under review. Some Owners use insurance exhibits that have been developed as part of the overall risk management, and this exhibit will bring more Owners who use the AIA templates into that practice of examining insurance as an element of the project rather than an unpleasant afterthought.

Certain Local Regulations of Drones Pre-Empted by Federal Law The proliferation of small unmanned air systems (SUAS or “drones”) has both created an industry and raised the concerns of local

governments seeking to exert some level of control over the operation of drones within a geographic area. While Congress directed the Federal Aviation Administration (FAA) to develop a comprehensive plan to safely accelerate the integration of unmanned aircraft systems into the national airspace, that direction provided little comfort to politicians whose constituents felt that drones were intrusive and annoying.

The FA A did issue its final rules in August of 2016 that required the registration of commercial drones [the application of the registration was struck down insofar as it attempted to require hobbyists to register drones since hobbyists had been specifically exempted from regulation by Congress].

Among the other rules issued by the FAA under Part 107, the FAA allows daylight operations below an altitude of 400 feet above the ground or any structure within the visual line of sight of the licensed remote pilot in command or visual observer. But the guidelines do not address some operational details, and the FAA indicated that certain legal aspects of drone use would be best addressed at the state or local level such as individual privacy rights.

A s a result, several local units of government have passed ordinances in an attempt to regulate the manner and locations in which drones may operate. The City of Newton, Massachusetts, studied the possibility of creating an ordinance that did not conflict with federal law, and, following almost sixteen months of research and discussions, passed an ordinance that included a ban on the following: • the use of a pilotless aircraft below an altitude of 400 feet over private property without the express permission of the owner of the private property; • operations beyond the visual line of sight (VLOS) of the Operator; • operations in a manner that interferes with any manned aircraft; • operations over Newton city property without prior permission; and • conduct surveillance or invade any place where a person has a reasonable expectation of privacy.

The Newton ordinance required all drone operators to register with the City of Newton and subjected violators to a fifty dollar fine following a one-time warning.

Michael Singer, a physician and Harvard faculty member and drone enthusiast, filed

suit challenging portions of the Newton ordinance. Specifically, Singer challenged t he regist ration requirement as well as the altitude, VLOS and geographic restrictions. He did not challenge the prohibition on operating in a manner that interferes with manned aircraft or the prohibition on conducting surveillance or invading a person’s reasonable expectation of privacy.

Singer argued that the Supremacy Clause of the United States Constitution empowers t he FA A to pre- empt any conf licting state or local laws covering the same subject matter; thus, the City of Newton ordinance was an improper attempt to regulate drones inconsistent with the authority of the FAA. The City of Newton raised the point that the FAA itself had noted that some aspects of drone use would be subject to local control.

The United States District Court of Massachusetts in Singer v. City of Newton found that the registration requirement was explicitly pre-empted, especially when attempted to be applied to model aircraft by hobbyists which are exempted from registration by Congress. Further, Newton’s ordinance would effectively prohibit the operation of drones within the city limits whether over public or private propert y without prior authorization, and the court found that the attempt to regulate f light within the navigable airspace was likewise pre- empted by the FAA regulations. The unchallenged portions of the ordinance remain in effect, and the court recognized that Newton could redraft the ordinance to address the deficiencies described in the court’s opinion.

In short, state and local governments have a role in regulating drone operations, but t he role is nar row and cannot conf lict with existing regulations issued by the FA A. As long as the regulations address issues such as privacy or similar issues and does not affect operations in navigable airspace, the local statutes and ordinances may be enforceable. There will be a longer learning curve for all persons and level of government as drone use becomes more widespread, especially when the FAA regulations are relaxed to allow autonomous drone use rather than the current requirement for the drone to remain within the visual line of sight of the remote pilot in command or the visual observer.

Fall 2017 5

FEATURE

COAA 2017 SPRING OWNERS

LEADERSHIP CONFERENCE Exploring, learning, and connecting at the “Gateway to the West”

By Matthew Bradford

Construction, planning, and design industry professionals met up in North America's Gateway to the West this May to trade insights and handshakes at COAA's 2017 Spring Owners Leadership Conference.

6 OwnersPerspective.org

FEATURE

Taking place in St. Louis, Missouri, the event welcomed nearly 200 guests to “explore, learn, and connect” over three full days from May 17 -19.

“Those three words – explore, learn, connect – provided the motivation for the content and the delivery of the sessions,” says John Bechtel, COAA Pennsylvania Chapter President and Assistant Director of the Design and Construction Division at Penn State University's Office of Physical Plant (OPP).

“It was about exploring challenging topics, connecting with each other to ensure we continue the conversations beyond St. Louis, and learning about emerging industry trends and best practices.”

One of the new additions to this year's show was the COAA Conference App, a mobile tool that empowered guests to keep track of the event's schedule, learn about speakers, connect with colleagues, and share pictures and comments from the floor.

And there was plenty to share. Hosted at the Hyatt Regency St. Louis at the Arch, this year's conference offered a wealth of interactive presentations, forums, case studies, and exhibitions tackling all corners of the industry. It kicked off Wednesday

“Those three words – explore, learn, connect – provided the motivation for the content and the delivery of the sessions” –John Bechtel morning with two concurrent workshop sessions – In for mat ion Exchan ge / Transition to Operations from Mike Kenig (Holder Construction Company) and A3s and More: Start Your Lean Journey Workshop from John Bechtel (Penn State University), and Jack Mumma (Michigan State University) – followed by COAA's Chapter Best Practices Forum, a luncheon, and opening remarks by COAA President Joe Sprys.

L ater in t he d ay, A n n a L e avey (CityArchRiver Foundation) and Robert Moore (NPS at Jefferson National Expansion Memorial) brought a local perspective to the main stage with a historical look St. Louis' iconic Gateway Arch. They were followed by presentations on small project management and Owner metrics, after which attendees caught up with colleagues during the Opening Night Reception.

Down to Business Day two arrived with big issues and bold ideas.

Victory Consulting President Joe Takash opened the show with his keynote address, The Truth Owners Seldom Hear, offering an open and candid discussion on achieving true honesty between jobsite partners.

“Owners must look deeply under their own tent, their own company, to see how open and transparent they are with each other. Most are far less aligned than they think,” Takash told COAA's Owners Perspective, adding “I hope people who attended my presentation came away with a shot of inspiration and positivity for all the good they do. COAA has a special selflessness and level of collaboration about it and I hope its membership only increases.”

The afternoon's presentations touched on a variety of topics from workforce issues to risk management and “creating a 21st century learning environment.” It also included Fall 2017 7

FEATURE

in-depth case studies on Mercy Health's Virtual Care Facility, the UVA Medical Centre's Battle Building, and the St. Louis Public Library's Cass Gilbert building renovation. Each presentation provided attendees with compelling insights into the obstacles and opportunities that often accompany unique projects.

Later in the day, guests had another opportunity to connect with attendees during several networking breaks and a luncheon featuring the Al Phillips Scholarship Presentations.

This year's scholarship recipients were Curtis Lucas and Saul Lopez, the former of whom told COAA, “It is an incredible honor. COAA has a tremendous heart. I am tremendously fortunate that for 2 years, they continue to provide me the means to further my education as well as invest in my immersion into the construction community.

The networking experience and exposure to the Spring Conference is life-changing!”

Lopez also had words of thanks for COAA, noting, “This upcoming school year will be financially hard because my twin sisters will be attending college as well, but I am using all my resources to alleviate the financial burden our family will be facing. The Albert E. Phillips Scholarship is an opportunity to have a career and eventually a company in the construction industry after graduation.”

The networking continued into the evening during at the exhibitor reception, wherein guests had the opportunity to meet one-on-one with leading product and service providers from across the industry.

Another Landmark Year COAA's St. Louis leadership conference wrapped up with a final day of presentations and several opportunities to enjoy the landmark city. After breakfast, guests were invited to take part in interactive presentations with themes such as the principals of highperformance management, IPD and Lean methods, smart buildings, and strategies for creating a culture of success.

“COA A memb er s a re incre d ibly sophisticated in their knowledge of design, construction, and the numerous processes and outcomes of a project. Being in a similar position to many of the COAA members in that I sit with municipal “owners” on our Smart Cities projects, I thought to share our discoveries in the marketplace outside of the US as a Peer conversation,” said Paul Doherty, 8 OwnersPerspective.org

A Gateway to Entertainment COAA's 2017 Spring Owners Leadership Conference made time for entertainment. In addition to break-out sessions and meals, attendees were invited for a private tour of the nearby AnheuserBusch brewery. The exclusive trip featured a visit to the Clydesdales Stables, Beechwood Aging Cellars, Brew House, and Packaging Plant; as well as an exclusive tasting at Anheuser-Busch's Biergarten.

After the conference, guests were also invited to cheer on the St. Louis Cardinals in their game against the San Francisco Giants at Busch Stadium.

“The COAA has a tremendous heart. I am tremendously fortunate that for 2 years, they continue to provide me the means to further my education as well as invest in my immersion into the construction community. The networking experience and exposure to the Spring Conference is life-changing!” – Curtis Lucas, Al Phillips Scholarship recipient president and CEO of the Digit Group and presenter of Friday's Smart Buildings Make Smart Cities session. “I hope the take away COAA members left my session with is that continuous change and truly disruptive innovations are directly affecting their projects and their positions, that data is king, and that the industrialization of the built environment is now upon us. How each of us reacts to these forces from outside our industry will be the true success factor.”

Keeping with tradition, the conference concluded with the Owner's Roundtable, an open-forum event that gave attendees the opportunity to speak on any of the event's topics, ask questions of colleagues, and share their own best practices and lessons learned.

“In the end, COAA St. Louis, like all other national COAA conferences, strived to provide attendees with the necessary skills and knowledge to deliver design and construction excellence,” says Bechtel.

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THE ART OF

PROJECT BUDGET

MANAGEMENT

By Bryan Carruthers

Managing budgets might not be the sexiest part of our job description, but those of us that manage budgets should be more proud of this skill required in our craft, and here is why: it is an art that requires finesse.

Sure, in order to manage a budget well, you must have an understanding of how to track numbers. More importantly, though, you must understand that you are painting a picture and telling a story with those numbers. You must utilize strategy, vision, and a delicate touch with timing when and how to incorporate those numbers. The goal is to ensure that the picture you paint is an accurate reflection not only of where the project financials stand in this moment, but also where they will stand at some point in the future.

When we are successful in this art, the resulting picture that a properly managed budget should paint is one with a lot of depth. However, I think many of us are only achieving a level of budget management that is elementary, maybe closer to “painting by numbers” rather than painting a masterpiece with numbers. Too often we are content to simply account for the costs spent to date and track them against the original budget amount. When we do this we are leaving so much depth out of our picture, depth that our stakeholders want and need to see. The key for creating a budget masterpiece with depth that speaks to our stakeholders is in utilizing forecasted costs.

Forecasted costs come in a few different t y pes: Commitment s (or contract s), Potential Changes, Approved Changes, and Uncommitted Costs.

Tracking Committed Costs and Approved Changes are an easy way to add dimension to your budget picture. When you have a contract, proposal, or any type of agreement to pay someone some amount in the future, that is a Commitment. Any subsequent change to that Commitment that has been approved

is an Approved Change. When you track those events against a budget line they will automatically forecast the total you anticipate spending against that budget line. That adds a lot of depth to the picture because it starts to account for not only what has been incurred to date, but also what we anticipate will be incurred in the future, and therefore where we will wind up at the end of the project.

Potential Changes come from any event or potential event we as project managers foresee taking place that could result in an increase or decrease to one of the Committed Costs.

The artistic skill required in handling these costs is rooted in accurately projecting what the cost may be and at what point to start including those costs in your forecasting. If you’re too quick to track potential changes or too conservative in estimating the costs, you’ll very quickly paint a picture of budget overruns or available contingency that could create project chaos. However, not all potential changes turn into real changes and not all estimated costs will be the actual costs incurred, so a delicate hand is needed to properly include these items without ruining the reality of the picture.

One way to successfully incorporate them is to include new “Potential Change” forecasts in your budget projection as soon as you are aware of them, but wait to include costs on those lines until you have a confident estimate from yourself as well as a third party. This way the picture of your budget at any given time will suggest to the viewer that there are potential costs looming there, but they won’t be painted in such bold lines that they dominate the entire image of the budget.

That leaves us with Uncommitted Costs.

Uncommitted Costs are placeholders for future costs the manager thinks will be incurred, but are not yet confirmed.

If you include too few Uncommitted placeholders, you’ll be painting a picture of a project that will wrap up well under budget (when in fact it may just be that those future costs have not yet been Committed but you know they will be at some time in the future). Infrequent adjustment to Uncommitted Costs, or overly conservative estimates of Uncommitted Costs will show a project heading well over budget (when in fact those costs may not materialize, or may have already materialized in the form of a Commitment or Approved Change you already included). Uncommitted Costs should typically be numerous at the beginning of a project and then diminish as a project proceeds because they are being turned into Commitments or Approved Changes. You could think of them as a pencil outline of shapes in your picture that hold the place of where something is going to be painted. As the painting proceeds you’ll paint over the pencil lines and make that placeholder permanent, or you’ll erase the image to make room for a new shape.

Through working with forecasted costs and recognizing that they are our opportunity to paint a picture with our numbers, we can create a masterpiece to share with our stakeholders every step along the way, and they’ll thank us for it.

To learn more about budget forecasting and check out a tool that will make you the Bob Ross of budgets, check out our website, www.budget4cast.com.

Fall 2017 9

Member Q&A BRENT

DARNELL Author and founder of Brent Darnell International

By Matt Handal

If you’ve been to any of COAA’s Leadership Conferences over the last few years, you’ve probably seen Brent Darnell’s face. Brent is often speaking on the stage or facilitating a discussion at these conferences.

You may know Brent as the guy who talks about “Emotional Intelligence.” You may also recognize him as the best-selling author of "The People-Profit Connection" or through Brent Darnell International, his training and consulting company that helps organizations maximize success by tapping into the “soft” skills of each employee. You may have even seen him recognized as one of Engineering News-Record’s Top 25 Newsmakers for his transformation of the construction industry’s “Alpha Males.”

But having known Brent for many years, I can tell you he’s a man of many layers and specific passions related to our industry. In this interview, we peel back the layers to learn what makes this particular COAA member tick.

How did you get started in the construction industry?

I grew up in the business. I and my three brothers would go with dad to the jobsites on Saturdays and ride the buckhoist to the 10 OwnersPerspective.org

upper floors. It was very exciting for me, like a Disney ride. To watch these guys take these blue drawings and create a project, it was like magic.

And my dad, who dropped out in sixth grade and rose to very high levels in his construction career, is my inspiration for this work. He didn’t have a degree or any formal education, but was really great with people; he had very high emotional intelligence.

When I got older, I worked every summer as a laborer. When I graduated from Georgia Tech in 1981, I started as an MEP Coordinator.

Are there construction projects you’ve worked on that you are most proud of?

I was the p r o j e c t m a n a g e r o n a n apar t ment building for t he Oly mpic Village where the athletes were housed on the Georgia Tech campus for the 1996 Olympics.

This was a difficult project with very strict deadlines. We had 17 straight days of rain coming out of the ground and a damaging fire halfway through the project. Our team pulled together and rallied to complete it ahead of schedule and within budget, and we closed the project out in 60 days. The average close out time for Georgia’s construction arm (GSFIC) was 18 months.

What was your most impactful experience working in this industry?

I’ve worked with some pretty awesome people. The most impressive and impactful thing about this industry is the people that work in it. I love working with them and seeing them grow and create positive change in their life and work.

I am coaching a guy now. A 60-year-old superintendent was sent to me because he had been removed from a project and nobody wanted to work with him. Within a year, after coaching and him working through our online courses, he was promoted to operations manager.

In addition, he had some issues at home with a relative who had moved in with his family, and his EQ training helped him to resolve that issue.

So not only did this work help him in his job, but helped his personal life – and that creates ripples.

I’ve had clients reunite with estranged family members, and get of f dr ugs they were taking for blood pressure or cholesterol. In short, this work makes peoples’ lives better. There is no better feeling in the world for me. I want to make the world a better place, and this work certainly has the capacity to do just that.

What do you see as the biggest challenges for COAA and the industry in general?

Getting people to embrace the changes that must be made in the industry with regard to collaboration and technology. Also, I am focusing now on diversity and inclusion and this is another topic that owners can drive.

We have to have some disrupters and think very differently. Unfortunately, the industry as a whole is very slow to embrace change.

How long have you been a member of COAA and what prompted you to get involved?

For several years now. I was invited to speak and met so many fine folks that I decided to join. Also, I believe that the Owners have driven some of the major changes in the industry (safety, environmental, and now collaboration), and my mission statement is to transform the industry. This group can definitely help with that.

How has your involvement with COAA impacted you professionally and personally?

I learn something every time I attend a meeting. It’s nice to get the Owner perspective and see how that is impacting how we deliver projects. I have to keep that in mind when I’m working with contractors and designers and help them see this perspective.

What do you see as the role of COAA going forward; how do you see it evolving?

I believe that they must give their member organizations the resources to evolve and be better. They have done some great things in this regard, but the demands of projects are increasing and this focus must continue.

You’ve facilitated workshops at both national and chapter-level COAA events.

What have you learned about COAA members from these experiences?

They are a very conscientious group of people who are really trying to make a difference with how projects are done, sometimes with the hindrance of bureaucracy, laws, and outdated rules. This can be very challenging and they are up for this daunting task.

Having attended several COAA events, was there any sessions (particularly ones that you were not involved with) that stood out to you?

The final Q&A (Owner’s Roundtable) is always the most fun for me because people really say what’s on their minds and there is always good discussion and best practice sharing going on.

Tell us a little bit about your interest in safety on construction sites? Where did that come from and how have you addressed this issue?

Safety is paramount to the industry and to projects. I kept asking myself, “Why don’t people work safely?”

I have been on projects where friends of mine have been killed. It’s such an awful feeling; everyone should go home at the end of the day.

I think I’ve come up with some ideas that you may not have thought about before. I created an online course called Primal Safety that deals with three elements: Judgment, Cognitive Performance, and Motivation.

I also created a coloring book that tells the story of a little boy whose entire family works in construction. They leave him with grandpa and head off to work. The book shows how they stay safe throughout their work day with personal protective equipment and best safety practices. Of course, at the end of the book, they come home safely to their kid.

We give the coloring book to everyone on site and tell them to have their kids or family members color t he pages.

Then, we laminate them and put them up all around the site as a reminder that it's not just about them.

All of the profit from this coloring book will be donated to a foundation who helps people and families who have been injured or killed on projects. The donation is made in my dad’s name.

By the way, I lost my foundation, so if anyone knows of a worthy group, please contact me at brent@brentdarnell.com.

You’ve written several books for construction “tough guys.” What do you mean by tough guy? And why did you write these books?

Tough guy is a gender-neutral term that indicates the toughness needed to survive and thrive in the industry. These books address all of the critical people skills as well as time management and stress management. As “tough guys,” sometimes we have poor self care. This series of books teaches those skills.

You seem to think positivity is important when you are working in construction.

Why do you believe that? Can you tell us your thoughts on that?

Your emotional states affect how you see the world, and on construction projects, we need all of the positive viewpoints as we can get.

Think about it: what is the most prevalent emotional states and scenarios on projects?

Frustration, impatience, anger, angst, conflict, and adversarial encounters.

What kind of environment is that creating? What if your day was filled with gratitude, relationship, love, compassion, and connection? Would you see things differently?

There’s some research behind this that shows that you will create different outcomes just from your emotional state.

You can learn more about our featured member, Brent Darnell, or find his books at "www.brentdarnell.com.

About the Interviewer Matt Handal is a member of COA A’s Communications Committee. Our committee is always looking for suggestions on other members we should interview. If you have any suggestions, please send them to matt.handal@ traunerconsulting.com.

Fall 2017 11

AWARD PROFILE

COAA SILVER AWARD WINNERS

Ohio State University Chemical and Biomolecular Engineering and Chemistry Building

By Matthew Bradford

Teamwork, comprehensive planning, and superior project management set the foundation upon which the Ohio State University (OSU) brought its Chemical and Biomolecular Engineering and Chemistry Building (CBEC) to life.

AWARD PROFILE

AWARD PROFILE

The University launched the project in May 2010 with the goal of creating a new and cutting edge facility for chemical science and engineering programs. Following a collaborative design process and extensive team vetting, construction began in June 2012 on the seven-storey, 237,830 sq. ft. multidisciplinary facility comprised of a castin-place concrete lab bar and steel frame/ composite slab office tower.

The project was OSU's first Building Information Modeling (BIM) enabled academic project, wherein the entire design team used BIM tools for design, documentation, and coordination. A BIM Execution Plan was drafted to facilitate virtual design and construction (VDC) techniques throughout the CM at-Risk contract. It incorporated lessons learned from working with trade contractors in Ohio, allowing the team to tailor the BIM standards to the project's specific needs.

Prior to putting shovels in the ground, OSU Project Management (PM) team, led by Faye Bodyke, Director of Projects, and the design and construction partners, reviewed the level of model development, identified modeling responsibilities for elements outside of traditional scopes, and developed model exchange protocol and workflow between the teams. Using the model as visual aids, the OSU PM team held meetings between the contractors, design team, and various representatives from the 14 OwnersPerspective.org

departments and operations and maintenance to align expectations and visualize the built environment.

All combined, OSU was engaged, educated, and proactive throughout the entire process.

This helped establish realistic expectations for model hand-off during construction and at the project completion.

“At the heart of this project was an OSU Project Management team which was organized, experienced, open-minded, innovative, and always fair,” said Jill J. Swenson, Principal, Science and Technology Sector Representative with Stantec. “At every stage, clear processes and decision makers were in place and committed to supporting a successful project. The OSU PM team valued open and frequent communication, incorporated LEAN principles to build togetherness and reduce holes and missteps.

The attitude in good times and in tough times was one of pragmatism and problem-solving.”

Assembling the CBEC Team Considerable care was given to selecting CBEC's development team. Emphasis was placed on experienced firms with an aptitude for teamwork. In the end, Stantec Architecture Inc. and Pelli Clarke Pelli Architects were selected to work together on the design of the CBEC and Gilbane Building Company was brought as construction manager.

To foster a greater sense of teamwork, the OSU PM brought team members together

Sustainability The CBEC building achieved LEED Silver certification thanks to the coordinated efforts of OSU and project constructors. Sustainable highlights include: • Use of low-flow fixtures and native landscaping, resulting in no permanent irrigation systems and a reduction in potable water usage of 28%.

• Installation of a heat recovery chiller and supplemental energy recovery.

• Use of enhanced HVAC systems, campus steam and chilled water plants, reduced air change rates during unoccupied periods, and energy-efficient equipment, resulting in the building performance exceeding ASHRAE 90.1-2004 with an energy cost savings of 36.5%.

• A construction waste management plan which achieved a 75% diversion rate from landfill.

• Creation of an internal Green Cleaning Policy and Program.

• Development of a “dashboard” system to allow access to real-time tracking of electricity, cooling, heating, carbon emissions, and energy costs of the building.

AWARD PROFILE

in one room with spaces for large and small group activities, models, drawings, whiteboards, and quiet work. During construction, contractors, architects, engineers, and OSU project management came together on a daily basis in the jobsite trailer, and this close interface and blurring of corporation/client lines resulted in professionals working closely and congenially throughout design and construction. No challenge became a crisis and no opportunity to improve went unevaluated.

“Faye’s leadership throughout the entire design phase was like nothing we had ever seen before. She led many team building activities and went out of her way to make all of the team members feel connected and a part of the project,” said Brett Meyer, Vice President with Gilbane Construction.

“Several members of the OSU staff worked very closely with our team over the course of the project, and they were able to provide input throughout the project. They worked hand-in-hand with our team and made decisions on the spot and took care of any internal challenges.”

Building the CBEC Scheduling was a top priority for the OSU PM team. As such, the project's design partners supplied monthly updates which aligned to its master schedule. To create some schedule relief during construction, an early Envelope Performance Package was issued to bring t he cur t ainwall contractor on board in early design phases so that details and shop drawings could be developed in concert, allowing earlier fabrication of the system and enclosure of the building.

OSU was extremely focused and timely on making simple but impactful choices during reconciliation and value engineering activities to keep the project scope and cost in line.

In the end, this led to more than $2 million in project savings. In one example, crews tied the building's cooling system into the campuses existing chilled water infrastructure during construction, as opposed to utilizing temporary chillers. This provided temporary conditioned air while OSU’s new chilled water plant was under construction, saving OSU more than $700,000 and providing it with a permanent secondary means of chilled water for the life of the building.

A Complex Vision As a multi-part project (political, technical, process, and procurement), the CBEC's build

presented no shortage of complexities. For one, the project required the team to bring separate, autonomous university departments together in a shared research environment where they had not been asked to share space and resources prior, with constituents who were not all on board with this shared vision. It also meant navigating highly technical research and teaching environments, using a new-to-OSU BIM format, and navigating the challenges of being the first project at OSU (and in Ohio) to implement a new Construction Management at-Risk procurement structure.

Nevertheless, the CBEC team was more than prepared to handle the challenges

in their path. As a result, the new facility building opened on time and within budget in January 2015.

“The process of const ruct ion, t he design team, the collaborative model of design, its f lexibility of construction, and the end result were all outstanding,” said Christopher M. Hadad Professor of Chemist r y and Biochemist r y Dean, Natural and Mathematical Sciences, College of A rts and Sciences. “It is a testament to how to design and to build a fantastic, cost- ef fective, and functional building for collaborative and interdisciplinary science.”

Fall 2017 15

AWARD PROFILE

Henry B. Gonzalez Convention Centre

The City of San Antonio's Department of Transportation and Capital Improvement (TCI) received COAA's second project excellence Silver Award for its Henry B. Gonzalez Convention Centre (HBGCC) expansion.

Work took place over 1211 days with the intent to reposition the 49-year-old hospitality facility as a leader in the convention venue space. With this goal in mind, the team launched the Design-Build (DB) project in October 2012 to add a $325 million 726,000 sq. ft. expansion to the convention's east side.

The scope of the project included the addition of a 260,000 sq. ft. exhibit hall, 86,000 sq. ft. multi-purpose/plenary hall, 54,000 sq. ft. ballroom (the largest in Texas), pre-function space, 24 meeting rooms, an expanded main kitchen, back of house support spaces, and a 22-bay loading dock and maintenance building. It also saw a $1.2 million upgrade to the cantilevered meeting room, a signature space that cantilevers over San Antonio’s popular Market Street and creates the iconic façade and beacon that has become integral to HBGCC's identity.

Hunt Construction was selected to lead development. It paired with Zachry Construction to form Hunt-Zachry, A Joint Venture, which in turn partnered with convention center design Populous and reputed local architect Marmon Mok. By combining the best of the national talent for 16 OwnersPerspective.org

this building type with the best and most respected local firms, the PM team selected an unmatched combination of experience and talent to ensure the project's success.

A non-conventional challenge As San Antonio's largest and most complex capital improvement project to date, it was decided early on that the city’s traditional team model for coordinating cost, schedule, and quality used on their significantly smaller projects would not suffice. Therefore, the project manager (PM) decided to augment the

city’s team by hiring Project Control of Texas, a third-party professional project management staff to bring a diverse perspective to the team in terms of means and methods for management of the project.

The PM skillfully utilized inputs from this staff to tailor the city’s processes for pay applications, schedule review, design peer review, public relations, environmental & geotechnical evaluation, construction inspection, and material testing. In order for the team to successfully manage the complex and large project, the PM carefully integrated

AWARD PROFILE

the augmented staff’s specific expertise into key nodes within the revamped processes, which allowed the PM to bring the entire project team to full operational capability in a relatively short period of time.

A Critical Path Method (CPM) from the outset of the project, enabling the team to model and study schedule alternatives as presented by the DB team, evaluate phase design deliverables, and address the potential impact of event “dark days” on the construction schedule. By generating a schedule with a fair amount of detail at the outset, the team collectively applied "what-if" scenarios to the schedule to determine their impact on the overall project. Moreover, the schedule and plan were communicated regularly with the team in a transparent process that gave all team members access to the same data, allowing the team to identify the phased design approach that was ultimately employed to deliver the project earlier than the City’s original plan and allowed HBGCC to begin generating revenue sooner.

Naturally, undergoing a major expansion in a downtown core came with some challenges.

The site's location made noise, traffic mitigation, and large-scale coordination daily priorities for the team; and crews had to take measures to ensure ongoing activity was not negatively affecting the center's clients. “[TCI] not only assisted in coordination with the convention centre to all but eliminate disruptions to the client's customer's events, but it was instrumental in assisting HuntZachry with navigating the coordination process with the city's utility companies,” said Michael Shelstad, Project Director with Hunt-Zachry, adding, “A major part of the project included a substantial amount of utility relocation and additions, and TCI was able to engage upper management at those utility entities to assist in the decision making and final coordination.”

Controlling Costs, Maximizing Quality The project budget was incredibly challenged at the outset and to maximize scope, and therefore required a team that was in-step in terms of scope and cost. Together with the DB, the PM team participated in an “all hands” scope and budget analysis / big ideas Value Engineering session to help align the program with the budget.

The team met weekly on conference calls and bi-weekly at the DB office to review design progress, problem-solve, and understand cost implications of various options. As part

of these sessions, the team evaluated ideas and provided constructability input related to ensure that the design was meeting the schedule and cost parameters. Real-time estimate updates were provided together with the design evolution to assist the PM in prioritization and decision making about base project scope, potential alternates, and value engineering options. At each design milestone, the design, estimate, and schedule were evaluated by the PM to define and describe the scope. A detailed review and comment period was conducted to allow all stakeholders the ability to provide input and make decisions related to the emerging design.

“TCI displayed great organizational capabilities and was fully available during the design phases to assist the team and make sure the project was meeting the City's goals along the way,” reported Jim Handley, Principal with POPULOUS. Equal focus was paid to ensuring highquality workmanship throughout the build.

Regular coordination meetings where held during each phase of design to provide the best solution for the least cost. Building models were also exchanged weekly and there were nearly daily discussions between the team.

Each discipline also had regular in-house quality assurance review from staff outside the project team.

Additionally, the PM used the expertise of the Project Management Augmented staff to perform daily Quality Assurance checks

as construction progressed and to provide weekly reports to the PM for evaluation and subsequent discussion with the contractor. All PM team members, Owner, and DB could enter an issue into the system using an iPad in the field, locate the issue on a drawing, and document it with photos. Once the issue was submitted, the DB would categorize and assign the issue to the responsible party. If the issue required action, the responsible party would remedy and respond to the issue and the author would receive notice the item was resolved and available to review and close.

This became the team's QA/QC database throughout construction and also was used as the tracking mechanism for punch list items.

These practices, and an unf linching commitment to team building, transparency, and innovative problem solving contributed to a successful expansion that has since put the Henry B. Gonzalez Convention Centre at the top of meeting planners' lists.

“The transformational project challenged the convention center project management team to find a creative way to integrate the convention center into the newly-envisioned Hemisfair Park, and the solution needed to capture the charm of the city in a fresh, forward-looking fashion representative of the city's trajectory for the future. At the grand opening, it was clear to see that we succeeded,” said Michael Sawaya, Executive Director of Convention and Sports Facilities with the City of Antonio.

Fall 2017 17

KEEPING ON SCHEDULE Requiring timely and accurate reporting from your contractor

By Joshua B. Levy, Esq.

18 OwnersPerspective.org

FEATURE

The phrase “time is money” is as applicable to construction projects as it is to any industry or business. A tremendous amount of front-end work is performed by Owners in order to launch new construction projects. Once the financing, zoning, tenant, and other concerns are in place, the project is ready to commence pursuant to an agreement between the Owner and its contractor.

When the construction unfolds issues will inevitably arise that are beyond the Owner’s control. Real time and effective Owner oversight can help you accomplish the goal of keeping the project on schedule.

Managing for timely completion The best lesson I learned at law school i nv olv e d t he pr i nciple o f “ l a w i n action.” I was taught that contracts are an obvious necessity and must include t he e s s ent i a l ter m s of t he p a r t ie s’ agreement. But “in action” receiving the remedies under a contract is often difficult, if not impossible. That is why I want my clients to focus on a process

project financing that cannot be converted into longer term debt.

Count le s s f actor s can cau se delay i n c lu d i n g a n i n c o m p le t e d e s i g n , unusually severe weat her, and poor contractor performance. The Owner has limited control over those variables. The traditional “risk mitigator” is the threat that the contractor will pay liquidated damages or face expensive claims for consequential damages for delayed completion.

A plan for Breachless Execution of the project is far more useful. It will help you avoid the need to pursue remedies in the first place.

“Perhaps the most critical information for the owner to consider is a comparison of the Contractor’s representation of the percentage of completion versus the owner’s own opinion regarding the status of the work.”

I have coined “Breachless Execution.”

If proper performance of the contract is obser ved t hroughout t he project , remedies do not need to be sought afterwards.

Owners face a variety of costly losses if projects are not completed on time. An Owner may: • Be obligated for liquidated damages if tenants are not able to occupy on time • Incur extended rental expenses if occupancy is not secured as promised • Due to delay, accrue expensive interest for

Developing and understanding the schedule Most project Owners require schedule and progress updates from the contractor.

However, just because the contract requires it, doesn’t mean it is always followed.

Furthermore, some Owners may not have staff with the skillset needed to properly evaluate the schedule proposed by the contractor.

Construction schedules are simply tools that try to structure and plan the project.

The best practice is for the Owner to

participate in schedule development. In my opinion, the Owner must critically evaluate the schedule and express its need for specif ic milestone dates so that the final completion date is not the sole measure to evaluate job progress.

Depending on the size of the project, Owners should consider engaging a schedule consultant if the Owner does not have scheduling expertise.

Creating a process for reporting progress First and foremost, every Owner should be self-reporting based its own observations at the project site. Next, the Owner should require its contractor to attend meetings at regular intervals on the site that include a schedule update.

The Owner should be prepared to ask questions regarding the activity depicted on the schedule. If the schedule shows rough framing to commence on March 1st, and rough framing has not started at the time of a meeting on March 5, the Owner should inquire and demand an explanation.

Dist inct incident s of schedule slippage should be confronted as soon as possible so any potential impact can be addressed. T he par t ies’ cont ract should call for a specific format for the cont ractor’s progress repor t toget her with a specification for the frequency of meetings and updates.

The ingredients of your CM/contractor’s report T he cont r a c t or ’s r e p or t s hou ld b e updated at least monthly and include a br ief de s cr ipt ion of t he pro g re s s during the past reporting period, the updated schedule and a general project account ing. T he account ing should Fall 2017 19

FEATURE

“Construction project problems do not get better with age. They must be addressed openly and quickly to avoid the damages delay will cause.” reference the original contract value, approved change orders to-date and the adjusted contract price.

The progress report should also include pictures of work performed during the reporting period as well as a forecast for the work to be performed in the next increment. Most importantly, the Owner’s staff must carefully review the report and note questions or corrections as needed.

The real neat on the reporting bone Perhaps the most critical information for the Owner to consider is a comparison of the contractor’s representation of the percentage of completion versus the Owner’s own opinion regarding the status of the work. In my experience, most large projects have the contractor present monthly applications for payment with a schedule of values describing the various activities performed by subcontractors and others. The contractor will represent that certain aspects of the work have reached a specific percentage of completion.

Based on interviews with several large general contractors, the “calculation” of the percentage of completion is far less than an exact science. The monthly reporting should include

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a discussion of the percentage of completion represented by the contractor. The Owner needs to avoid overbilling by the contractor which could leave a void in project funds if there is a default down the road.

The extent of monthly due diligence will vary depending on the project. The saying, “where there’s smoke, there’s fire” is very true in construction. If the project is progressing without incident, the level of review may be lessened.

However, if there are incidents impacting the progress of the work, the Owner can review subcontractor meeting minutes, demand disclosure of any claim notices between the contractor and its subcontractors, review the supplier summar y and evaluate the status of submittals and design questions or RFIs. If regular reports are not adequately updated, or the Owner is hearing concerns by subcontractors, suppliers or design professionals, greater diligence is needed and more specific reporting should be required. Construction project problems do not get better with age. They must be addressed openly and quickly to avoid the damages delay will cause.

Planning for completion When a project is breachlessly executed, the parties should be able to plan for final completion well in advance. As the work begins to approach 85% completion, the contractor should identify specific dates to commence the punch-list process and schedule necessary inspections for occupancy.

All too often, projects are completed in a hurried fashion as the contractor tries to overcome schedule slippage with recovery techniques and acceleration of the trades. That is not in the Owner’s best interest. The best recipe for quality work and timely completion is proper planning throughout the project.

Another fine lesson from my time at the University of Wisconsin Law School was summed up by a professor who explained, “it is like the bumper sticker says, ‘Stuff Happens’ (or words to that effect)”. There are many bona fide reasons that entitle a contractor to an extension of time during a construction project. The real problems arise when there is confusion regarding the cause for delay. Owners should be fair with their contractors and should expect to be treated fairly in return.

The goal of the project stakeholders should be to eliminate distractions, confusion, and other obstacles that can be fueled by the lack of accurate information. The best way to cultivate a successful project is to regularly review accurate project information through timely and accurate reporting. Apply this advice to increase your likelihood of achieving “Breachless Execution.”

Joshua Levy is Co-leader of Husch Blackwell’s Construction & Design Group, and has represented clients for more than 25 years in construction disputes and claims. He is also an arbitrator with the American Arbitration Association.

20 OwnersPerspective.org Kitch_3.333x4.583.indd 1

1/21/09 9:17:05 PM

NEW MEMBERS The list is from the time the last publication was written until Spring 2017.

ASSOCIATES

Michael Fulk

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ASSA ABLOY Door Security Solutions

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Company, Inc.

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C&S Companies

City of Round Rock

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CBRE

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OWNERS

Marc Muller

Global Workplace Solutions Kyle Skeldon HOK Paul Jacob Mackey Mitchell Architects, P.C Merrilee Hertlein Mechdyne Mike McDaniel PCL Associate Rob Baker PCL Construction Services, Inc. Rob Baker

Smithsonian Institution Office of

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Planning Design & Construction

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Skanska

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Story Construction

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Tarlton Corporation

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Company

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VN Services Tucker Elliott

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Fall 2017 21

CHAPTER UPDATES

Charlie Newman with James Madison University is the new VP of COAA-VA. He is replacing Chuck Fanshaw who has accepted a position at the US Mission to NATO in Brussels, Belgium and will be moving this month. Chuck served on the VA chapter for approximately 10 years.

New Chair in COAA-OH J e f f E n g r a m w i t h Te c I n c . E n g i n e e r i n g & Design has come on board as the new Program Chair with the COAA-OH Chapter.

COAA From Coast-to-Coast COA A chapters conduct educational, business, and networking sessions to advance the construction industry. You can find chapters in the following areas: California Florida Georgia Idaho Illinois Maryland/Washington, DC Michigan Ohio Pennsylvania Texas Virginia Please go to www.coaa.org for more details about COA A chapters. If you are interested in starting a chapter in your area, please contact Lucie Castro at lcastro@coaa.org.

NOVEMBER

DECEMBER

JANUARY

2017 COAA FALL OWNERS LEADERSHIP CONFERENCE November 8-11, 2017 Tampa, FL

COST MANAGEMENT (OWNER TRAINING INSTITUTE COURSE) December 7, 2017 in Gaithersburg, MD –10 seats available

DESIGN PROCESS MANAGEMENT (OWNER TRAINING INSTITUTE COURSE January 17, 2018 in Novi, MI –Sponsored by the COAA-Michigan Chapter

DESIGN BUILD (OWNER TRAINING INSTITUTE COURSE) November 13-14, 2017 Baltimore, MD

For more information on these events, visit www.coaa.org.

22 OwnersPerspective.org

GET NOTICED! Owners Perspective (OP) magazine subscribers are comprised of North America’s most influential audience of construction industry executives. For information on advertising in the magazine or its companion digital media products or if you’d like to discuss the development of custom marketing programs for your organization, please contact Chuck Nervick at 416-512-8186 ext. 277 or chuckn@medieadge.ca

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