Executive Summary of IFOA

Executive Summary of IFOA
Integrated Form of Agreement
www.HansonBridgett.com
Courtesy of Joel Darrington & Dawn Balzarano of Hanson Bridgett LLP
Purpose: To provide a legal relationship
among Owner, design team and construction team that aligns them on what is best
for the Project as a whole, by promoting the
Five Big Ideas:
•
1. Increase relatedness of Project team;
2. Collaborate, really collaborate;
Project Governance
3. Manage the Project as a network
of commitments;
•
Project led by a "Core Group" of project representatives of O/A/C and other
designated team members. Decisions
of Core Group by consensus, with
Owner breaking impasses.
•
"Senior Management Group" of senior
executives from Core Group member
firms provides leadership, mentoring
and assistance in dispute resolution.
4. Optimize the whole Project, not the
pieces; and
5. Tightly couple learning with action.
Team Formation
•
•
Owner, Architect and CM/GC sign one
agreement; key trades & designers
may also sign.
O/A/C and the selected designers and
trades form an "IPD Team"
subject to terms of IFOA.
Compensation
•
Cost-plus with an "Estimated Maximum
Price" (EMP) that triggers "pain/gain –
sharing."
•
•
Intensive involvement of CM/GC and
major trades with design team from
beginning.
•
IPD Team attempts to validate Owner's
business case by attempting to find
one or more design solutions that
meets business case parameters. If
the business case (as amended) is
validated, the parties set an "Expected
Cost" based upon current best practice. During design phase, the team
sets an aggressive Target Cost as a
stretch goal to drive innovation and
contain costs.
•
•
IPD Team performs “Joint Site
Investigation” to understand site and
determine what additional information
should be pursued at a reasonable
cost, so as to lower contingencies.
Use of "Target Value Design"—a discipline that requires project values,
cost, schedule, life-cycle analysis
Zero RFI goal: No RFI's to initiate an
inquiry. RFI's only used to document
solutions resulting from in-person
communication between responsible
designer and inquiring IPD Team member.
Project Planning
•
Core Group establishes communication protocols to facilitate effective, efficient communication.
•
IPD Team shares a common "IPD
Team Contingency" for design and
construction errors and other unexpected costs that would not result in a
Change Order.
Architect, CM/GC and selected members of IPD Team place their profit
in an "At-Risk Pool." If the Project
overruns the EMP, cost overruns are
funded from the At-Risk Pool first, then
by Owner or insurance. Owner limits
liability of Risk Pool members to the
At-Risk Pool. Aggregate Project savings typically put into the pool.
•
Design Methodology
Risk/Reward ("Pain/Gain") Sharing
•
and constructability to be basic design
criteria; uses the Target Cost to drive
innovation in design to maximize cost
savings and add value. Design clusters of designers and builders are organized around major building systems
or components to achieve integration.
Risk Pool Members agree on a plan
for funding, administering and disbursing the At-Risk Pool and any aggregate cost savings (e.g., profit amounts,
shares in pool, performance metrics,
etc.).
Team uses Lean "pull" planning to
increase planning reliability, with an
Owner-approved Milestone Schedule
and supporting phase schedules,
"look ahead" schedules and "make
ready" work plans (e.g., Last Planner
System™). Team members required to
talk directly about conditions of satisfaction, constraints, and to make
reliable promises about when performance will occur.
Construction Methodology
•
Goal is production of defect-free work
at the least cost and in the least time
necessary.
•
5S Plan: Sort, Set, Shine, Standardize,
Sustain. "A place for everything; everything in its place."
•
CM/GC will implement a "Built-in
Quality Plan" to provide for quality
measures, effective hand-offs, inspections and measures to control quality at
the moment of work.
Improvement
•
Continuous improvement program and
Project evaluations based on agreed
criteria.