WINNERPLATINUMAWARD

University of California, IrvineHellmuth, Obata + Kassabaum, Inc.Dave Keaggy & AssociatesNabih Youseff & AssociatesTMAD-Taylor & GainesTMAD-Taylor & GainesTMAD-Taylor & GainesHensel Phelps Construction Co.

OWNER / DEVELOPER ARCHITECT

INTERIOR ARCHITECT (KITCHENS) STRUCTURAL ENGINEER MECHANICAL ENGINEER

ELECTRICAL ENGINEER PLUMBING ENGINEER

GENERAL CONTRACTOR

BUILDING TEAM

ACCOLADE

“We’re out here doing our inspections and observations as we always do. What’s different is the effort by the Owner, the Architect and the Contractor … all working together to make it happen.”

Tom CrowderOSHPD Regional Compliance Officer

BUDGET HISTORY

BUDGET HISTORYNovember 2000

January 2003

February 2004

June 2004

Sept/Oct 2004

December 2004

January 2005

September 2008

UC Regents set aside $235M Lease Revenue Bonds for a Replacement Hospital

UC Regents certify the EIR and approve a $243M Construction Budget

Lowest Bid exceeds Construction Budget by 25%

UC Regents establish a Maximum Acceptance Cost (MAC) of $250MUC Regents establish a MAC for additional Scope of Work(Even more scope of work is added to the project at a later date)

Second Bid $246M ($4M below $250M MAC)

Project is awarded with added scope of work(Ultimately the scope of work reaches $285M)

Notice to Proceed is issued to the Design-Build Contractor

OSHPD issues Certificate of Occupancy (4 months early)Project is completed for $283M ($2M below cost ceiling)

Project savings extend beyond construction costs: Due to early construction completion, no claims, savings in equipment purchasing, and other project management efficiencies, UCI Project Team returns $26M to the University.

PROJECT DELIVERY METHOD COMPAREDProject

Delivery Method Schedule & Escalation Cost Impact of Delay Benefits Risk/Comments

Two Prime ContractorsPrime 1 – Foundation/Frame & Building EnclosurePrime 2 – Mech, Elec, Plumbing, and Interiors

• 10 mo. delay on Prime 1 contract for contract & drawing revisions

• Prime 2 contract developed concurrently & bid 12 mo. after start of construction of Prime 1

• 50% construction dwgs required on interior dwgs prior to bidding Prime 1 contract

• 10 mo. overall escalation (approx. $28M)• 12 mos. of escalation for the Prime 2, mech,

elec, plumbing & interiors contract is in the $28M of overall project escalation

• Additional arch, eng, & mgmt fees TBD

• Construction can start while interior drawings completed • Allows for some changes in Prime 2 design as technology

evolves• Removes any criticism that design-build is cost driver

• Total construction cost unknown until Prime 2 is bid, which is 18 mos. after start of construction on prime 1 contract

• Coordination between two primes can create CO’s & claims• Market conditions may improve or decline• Owner responsible for all dwg deficiencies & coordination conflicts

Prime Contractor for Foundation/Frame & Bldg Enclosure, withConstruction Manager At-Risk for Mech, Elec, Plumbing, and Interiors

• 10 mo. delay on prime contract & dwg revision• Construction Manager fees bid as alternate to

prime contract• Mech, elec, plumbing and interior Subs bid 12

mo. after prime bid• 50% construction dwgs. required on interior

dwg prior to bidding Prime 1 contract

• 10 mo. overall escalation (approx. $28M) • 12 mos. of escalation for the mech, elec,

plumbing & interiors contract is in the $28M of overall project escalation

• Additional arch, eng, & mgmt fees TBD

• Allows construction to start while mech, elec, plumbing & interior drawings are being completed

• Allows for some changes as technology evolves• Coordination between two primes is not an issue• Possible to re-bid mech, elec & interior subs• Removes any criticism that design-build is cost driver

• Total construction cost unknown until subs are bid, which is 18 mos. after construction starts on foundation and frame

• Coordination between CM and subs can create CO’s & claims• Market conditions may improve or decline• Owner responsible for all dwg deficiencies & coordination conflicts

Construction Manager At-Risk

• 30 mo. delay, 12 mos. to prepare bid package & 18 mos. for OSHPD permit

• 30 mo. escalation (approx. $84M)• CM fees will add 2 ~4 % overhead expense • Additional arch, eng, & mgmt fees TBD

• CM can evaluate construction cost during drawing completion & may be able to identify additional sub-contractors

• Removes any criticism that design-build is cost driver

• CM locked into fee • CM not responsible for market conditions; as market conditions

change the bldg quality will change• CM cannot negotiate Best & Final Offer, but can re-bid subs• Owner responsible for all dwg deficiencies & coordination conflicts

Conventional Delivery (complete dwgs and specs)

• 30 mo. delay: 12 mos. dwgs + 18 mos. OSHPD permits

• 30 mo. escalation (approx. $84M)• Additional arch, eng, & mgmt fees TBD

• Removes any criticism that design-build is cost driver• University knows exactly what it will get

• Owner responsible for all dwg deficiencies & coordination conflicts• Increased risk of CO’s & claims• Cannot negotiate Best & Final Offer

Conventional Delivery except Mech/Elec/Plumbing Design-Build

• 24 mo. delay: 10 mos. dwgs + 14 mos. OSHPD permit.

• 24 mo. escalation (approx. $67M)• Additional arch, eng, & mgmt fees TBD

• Reduces some of owner’s coordination risk between the GC & mech, elec, & plumbing sub-contractors

• Removes any criticism that design-build is cost driver

• Owner responsible for all dwg deficiencies & coordination conflicts, except mech, elec, & plumbing

• Increased risk of CO’s & claims• Cannot negotiate Best & Final Offer

Continue Design-Build re-bid with protections for Single Bid

• 1 mo. delay for cost estimate & necessary approvals

• 1 mo. Escalation (approx. $2.8M)

• Current drawings can be used• Interest of subs currently prepared to bid• No loss of momentum• Least cost escalation

• UC can require re-bidding of any subcontract that varies significantly from independent cost estimate• Risk of unfair subcontractor bids and other

pricing problems can be mitigated by UC rights to audit & to require re-bidding.

WHY FIRST BID FAILEDWhy was the first bid over budget?• Market conditions: market prices soared for steel, concrete, gypsum board, and

dozens of related trades. During the preparation of the bids, several trades reported price increases of 10 to 20 percent per week.

• Secondly, there are only a few mechanical, electrical and plumbing (MEP) subcontractors that can handle a mega-project of this scale, where MEP systems represent more than 50 percent of the total construction budget.

• Contractors were fearful of the risks associated with the job: experiences on other UC campuses, OSHPD changes in the field, and the sudden, escalating market volatility.

• Subcontractors added high contingencies to their bids which were not anticipated by UCI, the cost estimator, and even the general contractors.

WHY FIRST BID FAILEDWas the bidding problem due to design-build?

• No. Design-build has a proven track record of delivery with lower costs, shorter schedules, and less post-project litigation.

• It has been used by the federal government to build all types of construction, including power plants and hospitals.

• However, its application to replacement hospitals in California under SB 1953 is new.

Is design-build a problem for OSHPD?

• No. OSHPD is well aware of their responsibility to help deliver over $41 billion* in SB 1953 projects within a decade.

• OSHPD has adopted a policy of support for design-build.

* Ref. Rand Corporation, April 2004

WHY SECOND BID SUCCEEDEDWhat changes have been made to the bid documents to reduce uncertainty and to enable better pricing?• The structural design has been simplified and the plans reviewed with OSHPD. • Architectural plans revised to reflect all floor plan and elevation changes.

• Pre-qualification requirements relaxed for 10 subcontractor trades.

• Problematic specifications revised.

• Bid documents streamlined from 58 alternates to 3.

• Technical submittal requirements reduced by 70 percent.

• Field information and decision making process with OSHPD streamlined to reduce risks.

• “Best and Final Offer” (BAFO) process added to bid documents.

WHY SECOND BID SUCCEEDEDWhat checks and balances have been introduced to ensure the public of reasonable and fair market value?• One independent cost estimator was hired to price bid documents and advise if

changes are still needed in program scope.

• Another independent cost estimator was hired to prepare sealed cost estimate to be opened at time of bid.

• Third-party general contractor to review subcontractor bids and provide advice during BAFO negotiations.

• This is an open bid process, with all subcontractor bids subject to review for fair market value and re-bid as necessary.

How did the “Best and Final Offer” process work ?• The bid opening day was in September of 2004. Costs and alternatives were reviewed by

the Technical Committee. A second and final bid was opened a month later. The second bid was the Best and Final Offer (BAFO). This offer had to be at or below the advertised MAC of $250 million in order to be acceptable. It was $246 million.

VALUE ENGINEERINGActions

Outcome

• Diminish icon tower

• Reduce building height by 7 feet

• Opt for precast building skin in lieu of stone

• Save 1,600 tons of steel by introducing seismic bracing

• Delete roof-mounted cooling towers in favor of air-cooled towers on the ground

• Delete mechanical space on 3rd floor by placing OR air handlers in the basement

• Delete a planned campus circulation arcade from scope

• Defer roof-top gardens to a future project

• Defer outdoor dining to Phase 2 Project

• Defer future growth TIs to Phase 2 Project

• $35M saved by the VE Process

• $23M deferred to future projects

• $5M in scope reductions

L E A N METHOD

INCREMENTAL PERMITS & CONSTRUCTION

L E A N

DESIGN-BUILD TIMELINE

DESIGN-BUILD CONTRACT

DESIGN-BUILDCONTRACTUALRELATIONSHIPSOF THIS PROJECT

ACCOLADE

Design Build Institute of America awarded our project its most prestigious Western Pacific Region Award

for a large public building

IPD TEAM DYNAMICS

Traditional Project Delivery

Integrated Project Delivery

Our project’s Design-Build Integrated Project Delivery

COMPARE

UCI’S COMMITMENT TO IPD

For the last 11 years, UCI’s Design & Construction Services has hosted the DESIGN BUILD Symposium; most recently renamed ALIGN 2 REDEFINE.

Showcases the continuous refinement of the integrated interdisciplinary project

delivery approach. Designed to encourage and inspire participants to discover

new ways to enhance outcomes, process, production and timeline.

The Design & Construction Services team has earned 15 top industry awards since 2007, including:

• AIA Honorary Fellowship Awards• DBIA Design Build Best Project Award, Merit Award, and Excellence Award• The US Green Building Council Gold LEED Award

THE ONSET OF IPD TEAM DYNAMICJanuary 2003

February 2003

August 2004

Sept/Oct 2004

December 2004

September 2008

UC Regents certify the EIR and approve a $243M Construction Budget

Lowest Bid exceeds Construction Budget by 25%

UCI hosts Sub-Contractors Briefing Conference

The Theme: THE POWER OF YOUR IDEASPresenters & Discussion Panel: UCI project managers and top OSHPD officialsConference Topics: Project Goals

The ProjectThe Bid DocumentsPermits and working with OSHPD

Second Bid is a success

Project is awarded

Certificate of Occupancy (4 months early)

IPD TEAM DYNAMICS DELIVERS WINDFALLVE moved OR air handlers to the Basement

VE modified the structural design

TEAM reconfigured the foundation system and created a full building footprint basement

TEAM created 27,000SF Bonus Shell Space for a new Radiology Department in Phase 2

IPD BETTERS THE PROJECTBetter drawings

Design enhancements

OSHPD accelerated review

BIM integration

Construction efficiencies

Punch List approach

Subcontractors, vendors and their engineers have direct access to OSHPD reviewers

Stone clad 2-story lobby – first time stone is used in an OSHPD project

Shoulder-to-shoulder quality assurance review by Owner’s professional staff warms up OSHPD to accelerated review time

• 11,000 conflicts are identified and resolved early

• New design solutions that are feasible only in a 3D environment:

o Pre-fabricated supports for OR booms and lights

o Pre-fabricated universal structural support for all ceiling and ceiling mounted building systems at OR interstitial space

Medical gas trees pre-assembled, tested and inspected at factory – another first for OSHPD

Enhanced and better coordinated effort with highly committed staff completes the effort in record time

IPD VALUE TO THE DESIGN PROCESSThe Design-Build contractual framework enabled an integrated, interdisciplinary process that achieved LEAN characteristics:

Impeccable coordination: Each of the Engineers of Record came to the design table with their respective major subcontractors and all the vendors and

vendors’ engineers. Vendors and contractors designed and resolved the constructability of all the designs and construction/installation details they had a vested interest in. Their designs and drawings were directly incorporated in the Permit Set – no deferred approvals.

Project as Production System: The incremental design and permit process, the just-in-time documents delivery schedule, the concerted effort to anticipate and mitigate risk through design coordination, by necessity, focused the team to design jointly to exacting tolerances and embrace pre-fabrication to an unprecedented level under OSHPD.

Project as Collective Enterprise: The Mission Control metaphor provides a very accurate image of what took place daily in design, coordination, constructability, plan review, schedule, budget, and QC sessions that took place in the job-site trailer from day one until the Certificate of Occupancy was obtained.

COLLABORATIVE DESIGN INNOVATIONStone

• Direct access to OSHPD reviewers enables subcontractors and their engineers to develop accurate structural details.

• Close coordination between main frame structural designers, stone subcontractor, structural engineers for the for the steel stud systems, light gauge steel subcontractor, specialty steel and glass vendors, and the rest of the team at large.

• All stone pieces (up to 4 inch thick) have soft joints to allow individual movement in case of a seismic event.

• All the fabricator details are part of the permit.

• Creative solution made possible by the collaborative effort.

• Designed in 3D.

• Stone was cut off-site to precise tolerances.

COLLABORATIVE DESIGN INNOVATIONInverted Crane

• “Inverted crane” solution clears otherwise congested pathways for building services

• Creative solution made possible by collaborative effort with vision beyond first cost.

• Project-wide, the crane concept cost $350k more than the typical install, BUT made the above ceiling coordination effort much more manageable, saving costs for those activities.

• Mechanical systems manufactured off-site to precise tolerances

• Assembled entirely off-site

• Installed in reduced time on-site

A TYPICAL HOSPITAL APPLICATION

COLLABORATIVE DESIGN INNOVATIONInverted Table

• “Inverted table” solution leaves unencumbered space for building services

• Creative solution made possible by collaborative effort

• Designed in 3D.

• Manufactured off-site to precise tolerances.

• Legs installed first. Then ductwork, electrical and medical gas systems.

• Afterwards, the inverted table is assembled on the floor, lifted with 4 forklifts, positioned with lasers, and welded in place.

• Lastly, the connection points were finished.

COLLABORATIVE DESIGN INNOVATION

IPD BENEFITS PRE-FABRICATIONPrecast Concrete Aesthetic

• Establish common team goals early.

• Collaborative development.

• Extensive skin mock-up.

• Include fabrication details in permit set

• Pride investment by all participating team members creates an environment of excellence.

• Each panel was hand-painted with grout during the assembly process.

• Integral Repel-Plus instead of topical application.

• Exacting work of subcontractors preserved the aesthetic intent of the original natural stone design at reduced cost.

IPD BENEFITS PRE-FABRICATIONPrecast Stone-like Facade

• Reduced cost compared to natural stone by $2 million

• Reduced construction time through panelization

• Panels cast off-site to precise tolerances.

• Precast panelization was approved early with NO deferred approvals.

• Collaboration and review made possible three distinct panel assemblies.

• Innovation was achieved in mix, assembly and process.

IPD BENEFITS PRE-FABRICATIONPiping

• Conflict resolution through design

• Conflicts in the field were avoided

• Material take offs reduce waste

• Increased speed & coordination during installation

• Applies to pipe, ducts, and med gas trees

IPD BENEFITS PRE-FABRICATIONHVAC Ducts

• Designed in 3D

• Manufactured off-site to precise tolerances

• Assembled in reduced time on-site

ADAPTING TO VE TRADE-OFFSValue Engineering Trade-offs

• The VE changed the structure from moment connection to brace frame with gusset plates and exposed braces.

• The VE reduced floor height from 18’ to 15’

• The Gusset Plates block 60% of the above ceiling space in the corridors.

• 3D coordination allowed the team to navigate around the obstructions and place various piping systems.

3D PROCESS WORKED AS PLANNED3D Process

• It was started after each permit, to incorporate corrections prior to fabrication and installation.

• More than 11,000 conflicts were identified and resolved.

• Each Field Conflict = minimum 2 week delayo Stop Worko Revised Designo Submit to OSHPD

• Type of Conflicts caught and corrected:o ADA clearances in Med Surg bathroomso Cable trays & ductworko Wall and door conflictso The valves at roof air handlers

o The sizing of valves at Basement Mechanical Room

o Centering the lights over patient beds

IPD AFFECTS PUNCH LIST PROCESSFebruary 2008

March 2008

April 2008

May 2008

September 2008

Design-Build Contractor creates a 6-superintendent Dedicated Punch Team

All 35 Subcontractors establish Dedicated Punch Crews

Architect established a 7-person Dedicated Punch Crew

Owner/Developer establishes a Dedicated Punch Crew consisting of construction managers, architects, engineers and IORs – 5 dedicated full time to Punch Effort and 5 part-time

OSHPD issues Certificate of Occupancy

The published Punch List has 29,000 items

Two weeks after CofO there are only 500 items left on the Punch List

THE OSHPD STORY

ACCOLADE

“On many projects, our role as a regulatory agency results in adversarial relationships. The UCI Hospital is a success in no small part due to the efforts put forth by Hensel Phelps and their sub-contractors, with the support and guidance of UCI.”

Gary DungerOSHPD Chief Fire Life Safety Officer

THE OSHPD STORYEARLY PLANNING

• UCI began to meet regularly with OSHPD early in the planning stages.

• UCI visited and consulted with other UC Campuses to learn from their hospital building experience, and of their working relationships with OSHPD.

• The lessons learned determined the manner in which UCI went about to establish a

solid and transparent relationship with OSHPD.

THE OSHPD STORYDESIGN-BUILD WITH LEAN INCREMENTAL APPRAOCH• No deferred approvals.• UCI and OSHPD committed to a design submittal schedule.

• The project team never missed a deadline.

OSHPD EXPEDITOR• Applied LESSONS LEARNED from other University of California hospital projects.• To manage and coordinate all OSHPD related activities: change orders, weekly site visits, etc.• Position assigned to the UCI Campus Chief Inspector.

THE OSHPD STORYOWNER’S COMMITMENT TO OSHPD• All design packages would be thoroughly reviewed by UCI prior to OSHPD review.• UCI staffed the review team with professional architects and engineers.

• UCI’s in-house Quality Assurance team processed all RFIs in a prompt manner.

• UCI’s QA team enforced a high standard of quality and completeness to all packages sent to OSHPD.

DESIGN-BUILD STAFFING• The Design-Builder staffed the field team with a full complement of field and engineering

staff.• So did the Architect of Record and the Structural Engineer of Record.

• The Design-Builder brought on a Quality Control Manger to ensure work completeness and readiness prior to inspection requests.

THE OSHPD STORYOWNER’S INSPECTION STAFF• UCI requires that all IORs become OSHPD certified class A inspectors within a year of

employment.• UCI hired a Lead IOR with extensive experience to lead a team of five IORs approved by

OSHPD.

• A web based inspection request process was designed by the University for DB team to submit and track inspections.

• The IOR’s responsibilities were designated by scope of work, not by areas of the building, to maintain a continuity and consistency with the inspections.

THE OSHPD STORYPROJECT CLOSEOUT• From the onset, UCI planned for an at-once Construction Final and Certificate of Occupancy

for the entire hospital: neither Partial Occupancy, nor Staff & Stock approval would be requested.

• Avoided the need for OSHPD to keep the project open and susceptible to additional scrutiny and delays for a Construction Final.

• UCI’s IORs, the Design-Builder and OSHPD staff collaborated to staff appropriately and schedule the sequence for all the inspection activities to a very tight timetable. For example, fire alarm testing required 15 people for several days.

• OSHPD allowed all other UCI Campus IORs with OSHPD certification to join the inspection team.

• In the last three weeks, OSHPD Chief Fire Life Safety Officer dispatched six Fire Marshal Academy staff to conduct fire alarm, door contact hardware, stair pressurization and above ceiling fire stopping inspections.

• Fire Marshal Academy held daily classes using the object lessons of this field experience opportunity.

FLOOR PLANS

BASEMENT

FIRST FLOOR

SECOND FLOOR

THIRD FLOOR

FOURTH FLOOR

FIFTH FLOOR

SIXTH FLOOR

SEVENTH FLOOR

EXTERIORS

EXTERIORS

EXTERIORS

EXTERIORS

EXTERIORS

EXTERIORS

INTERIORSGRAND LOBBY

MEDITATION ROOM

DONOR WALL

ADMINISTRATION WAITING

INTERIORSTYPICAL NICU PATIENT ROOM

NICU NURSE STATION

TYPICAL MED-SURG PATIENT ROOM

NURSE STATION

INTERIORSREGISTRATION

WAITING

WAITING

FOOD SERVICE

MOVE-IN DAY

ACCOLADE

“It has been a pleasure to be part of a project that truly epitomizes the concept of partnering.”

Gary DungerOSHPD Chief Fire Life Safety Officer

WINNER OF THE 2010 PLATINUM AWARD

“Congratulations! Judging has been completed for BD+C’s 13th Annual Building Team Awards, and our expert panel of judges—

architects, engineers, contractors, and educators—have selected Douglas Hospital for a Platinum Award. The winning projects will be featured in BD+C’s May 2010 issue.”

Jay W. SchneiderSenior Editor, Building Design+Construction

REED CONSTRUCTION MEDIA

“On April 16, 2010, we announced the closure of the remaining publishing brands and their associated products and services. Consequently, the April 2010 issue was the final issue of Building Design & Construction and our web sites will cease operating as of April 30, 2010.”

The Staff of Building Design & Construction

THANK YOU.