IPD contract saves time and money for cancer center: Partners share the risk and reward of extreme collaboration on this LEED Silver project, which relies heavily on Lean principles.

For its Waterford, Conn., Cancer Center, a comprehensive treatment facility affiliated with Dana-Farber Community Cancer Care, Lawrence + Memorial Hospital decided to try something new: true three-party Integrated Project Delivery.

The contractual agreement covered L+M, architecture/engineering firm TRO JB, and construction manager Suffolk Construction, with programming, design, and construction all informed by Lean principles.

To further extend the collaborative theme, this three-party project management team invited three trade partners to participate in an incentive compensation layer, involving a pool consisting of at-risk potential profits.

TRO JB, Suffolk, and three handpicked HVAC/plumbing, electrical, and site work subs would participate in the ICL. If the project came in over budget or exceeded the schedule, the ICL profit pool would be tapped to pay the penalties. If the facility came in under budget or ahead of schedule, the ICL group would get the profit pool plus 50% of the savings, with the hospital pocketing the remaining savings.

Project Summary:

    Lawrence + Memorial Hospital Cancer Center

    Waterford, Conn.

    BUILDING TEAM

    Submitting firm: Suffolk Construction (GC/CM)

    Owner/developer: Lawrence + Memorial Hospital

    Architect, MEP/FP: TRO JB

    Structural: Simpson Gumpertz & Heger

    Civil: DiCesare-Bentley Engineers

    GENERAL INFORMATION

    Project size: 47,000 sf

    Construction cost: $24 million (IPD contract value $34.5 million)

    Construction period: May 2012 to September 2013

    Delivery method: Tri-party integrated project delivery

Early collaboration on the design, schedule, budget, and quality goals was a must for making the plan work. Using 3P (Production Preparation Process) Lean design and pull planning tools, the Building Team was able to make key decisions efficiently. Input from about 70 Cancer Center stakeholders—including administration, medical staff, support staff, patient advocates, and partners from Dana-Farber—was solicited in an intense three-day 3P charrette, which resulted in schematic draft floor plans.

Only minor changes were needed after this point, testifying to the effectiveness of the event. (The most significant contract alteration, requested by L+M as a value-added item, was a geothermal well field system that will pay for itself in just a few years.)

A co-location center set up in two of L+M’s hospital conference rooms was made available to the Building Team for the duration of the project. This home base proved crucial to ensuring efficient communication and also provided a convenient setting for stakeholder evaluation of mockups.

As a result of the collaborative efforts, the overall project schedule was reduced by six months, and the facility came in $1.2 million under budget. Actual construction was completed in only 10 months, meeting a “stretch goal” previously set by the client. Streamlined front-end decisions played an important role, including an RFI process that was 80% shorter than the client had previously experienced.

Building Team Awards judges were impressed with the participants’ ability to weigh wants and needs and craft a facility that achieved ambitious goals. The client has engaged Suffolk and TRO JB for a second IPD contract, this time to renovate a three-story medical office building. As with healthcare itself, new ideas about delivery are proving indispensable to positive outcomes.  

Source: BDC Network