LeanPM: Richardson College for the Environment IPD Case Study

When high design expectations for its new environmental facility hit up against the familiar obstacle of budget constraints, the University of Winnipeg (U of W) found an unorthodox solution. Using a process termed Integrated Project Delivery (IPD), it formed a partnership that integrated project  participants in a cooperative team focused on a common goal: to deliver the best quality Richardson College for the Environment (RCFE) facility in the most cost-effective way.

In his book “Broken Buildings, Busted Budgets”,  Barry Lepatner provides insight into why a new approach is needed to eliminate the 10% waste that is inherent in the traditional transactional contracting methodology.

“Across the nation, construction projects large and small – hospital to schools –are spiraling out of control with cost overruns.”  

Clearly the construction industry is in need of reform. In North America alone this industry consumes $1.23 Trillion and wastes $123 Billion annually.   

IPD was originally developed in the 1990s by a group of Florida businesses that applied the processes of lean manufacturing to building construction. The resulting IPD approach was defined as:

 “a process where all disciplines in a construction project work as one firm, creating faster delivery times, lower costs, no litigation and a more enjoyable process for the entire team—including the owner.” 

This new process, based upon relational contracting, focuses on how teams work together to achieve a best value project and are rewarded collectively for achieving a successful project.

Integrated Project Delivery is now becoming mainstream. The Architects Institute of America has developed documents, contracts and guidelines to make this a recognized industry standard. The process that these pioneers have created has the potential to revolutionize the way we do business in the building industry and will enable us to achieve the paradigm shift of performance that we need to achieve Net-Zero buildings.

The adoption of the IPD process enabled the Richardson College for the Environment design team to confront the challenge of high expectations and low budget to deliver a project that has the potential to become… 

“North Americas Most Energy Efficient Sustainable Laboratory Building.”

The selection of building systems to achieve paradigm shift changes in performance was achieved by designing innovative laboratory ventilation volume control and heat recovery systems. The Red-Light, Yellow-Light, Green-Light air change rate system correlates lab use with one of three appropriate air exchange rates.

In addition to significantly reducing the amount of air required to safely operate the labs, the project team has incorporated an industry leading SEMCO heat recovery wheel, developed in collaboration with John Hopkins Research Labs and Hospitals, into the design. This heat recovery wheel will enable 80% heat recovery, including that from fume hood exhaust. 

The IPD process was key to meeting the schedule for this type of project. It would not have been possible to get executive approval for starting the building foundations without having confidence in the numbers for the significant major building components including the envelope, controls, mechanical and electrical systems. Considering that the initial cost estimates were based on very preliminary design drawings, they were amazingly accurate. This was achieved through a meeting of the minds between the various designers and contractors in a collaborative effort to determine best value system solutions. 

Sherman Kreiner, Director of the University of Winnipeg Community Renewal Corporation, needed the design team to commit to a “True Fixed Price” that represented the final real number based upon a design that the contractors helped create and would be motivated to deliver. This is where the value of IPD lies! With a high level of contractor involvement in the design, this project was delivered at lower cost and much lower risk measured by a less than 2% contingency.

By using the IPD methodology, our team was able to significantly reduce project costs, meet the Owners Project Requirements of delivering a LEED Gold Signature Building, while implementing an approach that needed to withstand the scrutiny of a financial and process audit.  

The University of Winnipeg recognizes the added value of the IPD method and, based upon the success of the RCFE and Buhler Center projects, are in the process of changing their procurement policy to make IPD their preferred project delivery method.  

On future projects our team will adopt Building Information Modeling (BIM) to take project optimization and collaboration to the next level. BIM will enable our team to have real time quantity take-offs to produce improved life cycle cost analysis and to optimize building systems to reduce envelope area, and reduce duct, conduit and piping runs.  

BIM will also enable the designers and contractors to augment their understanding of the project and improve the flow of information in a more time effective manner. This will facilitate condensing the design and shop drawing production process, as with true IPD the design output does becomes the shop drawing.

Lean project delivery has enabled the IDI Project Management Group to deliver exceptional value for the U of W because the owner was willing to take a leadership role in adopting a new approach. This was possible by selecting and working with the best team available to optimize value. In addition, the open book approach keeps all the cards on the table so that even the financial auditor of the U of W has seen the evidence and has endorsed the process. It is as simple as that.

For additional information on IDI Project Management Group projects delivered using the IPD process, please visit our website. www.i-designs.ca or email Murray Guy at: mguy@i-designs.ca

For additional information on Lean Project Delivery you can follow Murray on Twitter @Lean_tobe_Green or arrange for a presentation for your next meeting or conference.