Section IV The Design-Build Cycle

Project management is not facility management

The facility manager must control, not manage, all large capital projects for which he will become responsible.

Managing a distinct piece of work completed on time and on budget. Taking a project through the design build schedule to ensure that operational requirements are met.

Project management, improperly applied with the wrong incentive and evaluation system, can be harmful to good facility management.

Watch for suboptimization of initial costs and budget vs. Life cycle cost. Typically 3 times the capital costs. Watch for poor quality projects and decisions on the end of the year spending binge.

Nonroutine services requiring high customer contact, capital, discretionary annual, unique large repair, projects that require coordination of multiple functions are good candidates.

Consider augmenting internal facilities, legal, accounting and purchasing staffs with construction accountant, estimator, construction purchasing specialist, inspectors and scheduler for large capital projects as well as traditional design-build team.

Organize internal staff so it can control the design-build team. Set up procedures to establish requirements and have formal reviews by in-house experts.

Try to avoid large projects run by the CEO / Chairman’s office / or the retired VP - a built in disaster scenario. The PM must be competent and have the trust of Facilities Manger. The FM must control, if not manage, all capital projects.

Programming and Project Development - critical to completion on time and in budget. Sets tone and fixes available resources. Too often neglected by FM. Good estimates critical.

Program for maintainability as well as function. Include flexibility.

Involves gathering requirements and examining relationships and priorities. The resulting program is a tool for managing the project 1) What is expected and needed by the customer 2) The performance expectations at time intervals.

Feasibility - Technology, Operational, Economics, Organizational Communication, Political, Maintainability.

Gaining coordination of requirements / goals - Executives - Operating Staff - Support Staff - Codes and enforcement - often in direct conflict

Reluctance to execute programming process - view as unneeded / costly, Impatience to get started, Time pressure to complete.

Project Planning - Scheduling and budgeting - project team development. Minimize operational interruptions - establishes goals, solutions, feasibility, general sequence of process, identifies resources and methods / project team, and any funding and approval processes.

Excerpt from Project Plan Attached.

The Design Process - Good design starts with a good concept and a good program. - Complex projects are best designed by a team.

Know the capability of local design firms and match the design resource to the requirement.

Select design team for expertise, experience, and demonstrated cooperativeness.

Formal design reviews should be established. Presentation to Senior Management of occupants, company - continuing to sell the project and set expectations.

Mock up new concepts or technology.

A good budget number needs to be a design output.

Include end of project procedures into contracts and specifications - documentation (CADD), punchlist and testing procedures, training on equipment, Operating manual and warrantee turnovers.

Post-occupancy project reviews, will significantly improve your program. Insure the design team stays engaged throughout construction.

The Construction Phase

Direction and control best exercised on two different levels.

Policy / responsible VP or Chairman, a FM, PM, Design PM or Const. Mngr., Legal, and Controller. Approves major change orders, communicates with executives and board, responds to expert committee.

Experts Committee - day to day decisions that keep project on track. PM, Design PM, Contractors PM, in-house design chief, in-house engineering staff, project accountant, legal, chief inspector, security and safety, project recipients line manager.

The team builds the project while the PM manages the team.

Design Build and fast-tracking offer opportunity for cost savings but place greater pressure on the design team.

Costs can be minimized by selecting the correct contracting method and construction processes.

Minor Construction - comes out of annual operating budgets. Below companies cutoff for capitalization. Mixed with M&R funding. Best managed by a project manager focused on the customer. An interior designer / churn manager / construction management processes not cost effective for smaller work. Challenge is to keep this work from absorbing M&R funding.

Major Construction - Seize the initiative / can be a significant challenge. Organize the design build team. Early decisions on project strategies / contractual / procedural/

CM vs. General Contractor

Traditional Design, Bid Build

Design / Build – heavy programming and management responsibility on FM

Fast tracking

Turnkey

Contracts:

Guaranteed Max Price

Cost Plus Percentage

Cost Plus Fixed Fee

Cost Plus Fixed Fee - Guaranteed Max

Multiple Prime contracts

Common Pitfalls:

Using the chairman’s favorite architect vs. contracting with a qualified AE firm.

Inadequate Programming effort.

Inadequate planning and scheduling / estimating.

Using a builder new to the market.

Failing to have inspection and testing.

Inadequate project accounting.

Approving changes without design and pricing.

Failing to agree on acceptance and occupancy requirements.

Failing to define documentation requirements.

Failing to budget for contingencies.

Attachment - extract from project plan

Practices that promote and protect health, safety, security, quality of work life, organizational effectiveness.

Support of Organizational goals and objectives

Monitor Changes in Laws and Regulations

Compliance with Laws and Regulations

Monitor Changes in facility function and services

Monitor persons who use and visit the facility

Monitor information and trends about human and environmental concerns

Provide training to maintain safe and effective use of facility

Direct development and admin of environmentally conscious programs

Due Diligence studies

Risk Identification and Management

Human -

Health -

Indoor Air Quality - American Society for Heating, REfrigeration, and Air conditioning

ASHREA; National Institute of Occupational Safety and Health NIOSH;

Environmental Protection Agency EPA; Occupation Safety and Health

Administration OSHA

-- predominantly ventilation rates, and responsiveness to complaints

Stress -- change management - communications

Safety -

OSHA – Right to know - Material Safety Data Sheets, warn of potential hazards

Emergency / Chemical / Biochemical notification - at each risk -

ie outside the laboratory

Ergonomics - adjustment of the work environment to an individuals size, motion, strength, to

avoid injury and increase productivity.

Repetitive Motion – written policy - awareness / identification / quick, positive response /

Analyze jobs for risks and opportunity

save $ in workers compensation, hiring, training,

Suitability - work process, time, anthropometric data

Adjustablility -

Productivity

Security -

Threats and response - identification / preparation / response

Human - guards / processes / training / organization / preparation

Physical - locks - access systems /fences / lighting / -- deterrents

Surveillance - electronic / human / cameras

Data

Capital - patents, processes,

Fraud, theft, waste, and abuse

- copiers

- telephone

- internet

- supplies, tools

- time

Employee violence

- zero tolerance policy

- background checks

- Written policies

- Conflict resolution - support services available

Employee Assistance Program

No correlation with outplacement programs

- Investigate all complaints

Balance with freedom, aesthetics, corporate culture, and customer service

Environmental -

Legal

Political

Economic

Regulatory

OSHA - accident reporting

EPA - Clean Air Act -

National Pollutant Discharge Elimination System - Permitting

Comprehensive Environmental Response, Compensation and Liability Act

- Superfund Sites

ADA – reasonable accommodations

- continuing definition through court rulings on reasonable

-- maximum high side reach 54" (4’6")

Physical -

Temperature

Lighting - color, brightness, glare

Color - emotional response

Ventilation

Space -

Environmental Protection -

Recycle - Renew, Reuse , Recycle

Cradle to grave - liability

PCBs are polychlorinated biphenals - carcinogens – in transformers and ballasts

Asbestos - encapsulate or removal and disposal by licensed firms

CFCs - Chloroflourocarbons - R11, R12 - Ozone depletion high risk

HCFCs - Hydrochloroflourocarbons - used in air conditioning - R22, R123

Ozone depletion - moderate risk

Lead - paint and ceramic glazing

Fluorescent lamps - mercury content - LCM (Lamps containing mercury)

Cultural -

Conflict Management - Win / Win - Synergistic

Technological

Business;

Emergency Preparedness Plan-

Emergency Response Plan - Media control and response, medical response, evacuation

Org Chart, notification / communications plan, command and control center,

data recovery plan, environmental contamination, insurance documentation,

execution, drills

Disaster Recovery Planning - Natural - Man Made

Business continuity planning - Computer cold / warm sites and recovery plan

My boss only cares about my budget. Why should I care about square footage?

Different Standards

Gross Area

Gross Area - (Construction Area)

IFMA Standard

Net to Gross Ratio

Net to Gross Ratio

Rentable/Usable Factor

R/U Conversion Formula

Assignable and Usable

Example: