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By: Ted Garrison New Construction Strategies 800-861-0874 Ted@TedGarrison.com www.TedGarrison.com www.StrategicPlanningf

Delegated Design. By: Ted Garrison New Construction Strategies 800-861-0874 Ted@TedGarrison.com www.TedGarrison.com www.StrategicPlanningforContractors.com Follow on twitter: www.twitter.com/tedgarrison. Learning Objectives. At the end of this course, participants will be able to:

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By: Ted Garrison New Construction Strategies 800-861-0874 Ted@TedGarrison.com www.TedGarrison.com www.StrategicPlanningf

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  1. Delegated Design By: Ted Garrison New Construction Strategies 800-861-0874 Ted@TedGarrison.com www.TedGarrison.com www.StrategicPlanningforContractors.com Follow on twitter: www.twitter.com/tedgarrison (c) 2103 New Construction Strategies

  2. Learning Objectives At the end of this course, participants will be able to: Identify the risks associated with delegated design and how to avoid them Explore the desired outcome of delegated design Implement the advantages of delegated design and how to exploit them Move forward to integrate delegated design into your projects (c) 2103 New Construction Strategies

  3. Definition of Design Delegation Design delegation refers to the determination of which professional or party to a construction project will have the ultimate responsibility for the design of components of the project that are designed by a supplier or subcontractor. Design-build is reserved for the overall project delivery method. (c) 2103 New Construction Strategies

  4. A Brief History • The Master Builder • As late as the mid 19th century – Sir Christopher Wren • Designers wanted to avoid risk of construction & believed separate contracts was more professional & protected clients • Major changes occurred as result of Industrial Revolution • Growth of cities – many new types of buildings • Frederick Taylor – Scientific Management • Post WWII changes • Increased complexity – designers need to collaborate with contractors • Edwards Deming demonstrated sub optimization doesn’t work • Introduction of Construction Management (CMAA – 1982) • Introduction of Design-Build (DBIA – 1993) • Introduction of Integrated Project Delivery (IPDC – trademark 2005) (c) 2103 New Construction Strategies

  5. What Are Risks of Design Delegation? What’s the Risks of Not Using Design Delegation? (c) 2103 New Construction Strategies

  6. What’s the Desired Outcome of Delegated Design? Improved design & performance of the final product – better results! Bring greater expertise & depth of knowledge to the design element A more efficient design Standardized design criteria Lower construction costs (c) 2103 New Construction Strategies

  7. How to Manage Risks of Delegation Design • Legal • Professional needs to be licensed in the state of project • AIA documents require design delegation to be spelled out in the contract documents • It’s required as part of contractor’s means & methods • Contractor includes design work in his bid • Subject to state & local laws • Liability focuses on scope – review of shop drawings - contract • Qualifications of the delegatee – need to establish • Credentials • Experience & knowledge of specific situation • Past performance • Contractor/vendor has appropriate insurance (c) 2103 New Construction Strategies

  8. How to Manage Risks of Delegation Design • Assurance that client’s desires are met • Delegator should not abdicate design responsibility – must check to insure conforms to overall design criteria • Delegator must specify in writing to the delegatee all parameters which the design must satisfy • Delegator must provide sufficient information so that delegatee understands scope and nature of the work & it’s connection to the general design • Delegatee must provide all necessary technical data, loads, and other requirements consistent with good design practices • Other risks? (c) 2103 New Construction Strategies

  9. Best Way to Implement Design Delegation Assign the design risk to the person or entity that can best manage that risk (c) 2103 New Construction Strategies

  10. Avoid Making Subjective DecisionsEvent - Project Initial conditions Final conditions Time • The more info we have before the event, the easier it is to predict the final outcome • The less info we have before the event, the harder it is to predict the final outcome • However, the lack of info will never change the final outcome • Probability occurs when people don’t understand • Must think proactively – not reactively (c) 2103 New Construction Strategies

  11. What Does It Take to Avoid Decisions? • Perception – the ability to understand existing conditions and apply available resources in the best possible way • What’s required for perception? • Knowledge • Experience • Wisdom • If you don’t know the answer – what can you do? • Find someone who knows the answer • Do more research • Experiment – for example, test the window wall system (c) 2103 New Construction Strategies

  12. What Are Our Options? • Original Approach • Primary design professional designs everything • Design Delegation • Primary design professional does most of the design, but delegates certain aspects (curtain wall, sprinkler system, stairs, elevators, etc) • Primary design professional still responsible for design intent and for reviewing shop drawing for compliance with intent (depends on actual contract) • Design-build/Integrated Project Delivery • Contractor/design team is totally responsible & liable for the design (c) 2103 New Construction Strategies

  13. How to Move Forward with Design Delegation? Assign the best qualified person to design the item Create a collaborative environment Focus on results instead of how Focus on value instead of price (c) 2103 New Construction Strategies

  14. Research Indicates More Collaboration Needed 1995 USA Construction and Building Sub-committee Report 1995 OASIG UK Study 1997 KPMC Canada Study 1999 Singapore Construction 21 Report 2001 Australian Build and Construction Industries Supply Chain Project 2002 Canadian Construction Research Board Report (c) 2103 New Construction Strategies

  15. Select Team Members Based on Performance – Not Price • Identify sources with sufficient past experience • Not just major subject but in a similar type project • Require a risk analysis of the project on their area of expertise – this identifies knowledge & wisdom • Interview key project people • Review final design! (c) 2103 New Construction Strategies

  16. Performance Based Studies Research Group • Selecting team based on performance instead of just price has had the following results: • Over billion dollars worth of work on hundreds of projects • High customer satisfaction • 98% of projects finish on time, on budget, high quality, and no contractor generated change orders • 1% of projects finished late because contractor didn’t want to sacrifice quality • The 1% where problems occurred the client selected the low bidder and ignored performance (c) 2103 New Construction Strategies

  17. So What Should Be the Primary Designer’s Role? (c) 2103 New Construction Strategies

  18. What Are Your Thoughts or Questions? Identify the risks associated with delegated design and how to avoid them Explore the desired outcome of delegated design Implement the advantage of delegated design and how to exploit them Move forward to integrate delegated design into your projects (c) 2103 New Construction Strategies

  19. Final Thoughts It’s about picking sides – it’s about how to deliver the best product for the client What’s needed is a collaborative process that engages people and groups outside of their formal control and inspires them to work toward common goals – despite differences in convictions, cultural values, and operational norms (c) 2103 New Construction Strategies

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