PREFAB AND MODULAR SYSTEMS A CASE STUDY ON RISKS/REWARDS

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1 Workshop W4 Wednesday, November 14 9:00 10:15 a.m. and 10:45 a.m. noon PREFAB AND MODULAR SYSTEMS A CASE STUDY ON RISKS/REWARDS Presented by Panelists: Workshop W4 Robert G. Compton Director of Product Design and Development PIVOTek LLC Joseph S. Ferdelman Senior Principal Heapy Engineering Jeremy S. Kingsley MEP Manager Turner Construction Company William M. Merk Director, Engineering & Preconstruction Grote Enterprises In an industry often slow to evolve, building information modeling (BIM), prefabrication, and modular construction are a paradigm shift for the construction industry. Although BIM has been around for several years, its use has accelerated the use of prefabrication and modular assembly. While these techniques are currently most prevalent on health care projects, they are an option for any project involving production of repetitive units, such as apartments, nursing homes, etc. And although prefab and modular systems offer tremendous benefits for cost, schedule, quality, safety, and the environment, they also carry with them new risks and challenges. Using the 250-bed Mercy Health West Hospital project currently under way in Cincinnati, Ohio, as a backdrop, the panelists will discuss the risks and rewards associated with use of collaborative prefabrication and modular construction techniques, share practical lessons learned, and offer best practices for managing the risks. Moderator: D. Scott Gurney Chair, Construction Law Group Frost Brown Todd LLC Copyright 2012 International Risk Management Institute, Inc. 1

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3 D. Scott Gurney Chair, Construction Law Group Frost Brown Todd Mr. Gurney is moderating the panel for Workshop W4, Prefab and Modular Systems A Case Study on Risks/Rewards, on Wednesday morning. Mr. Gurney is chairman of Frost Brown Todd s Construction Law Group. Mr. Gurney has been recognized as a leading construction attorney by Chambers USA Client Guide, The Best Lawyers in America, Legal 500, Ohio Super Lawyers, and Cincy Business, and has an AV Peer Review Rating by Martindale-Hubbell. Chambers USA Client Guide reports that Mr. Gurney brings a practical and knowledgeable approach to resolving claims. Mr. Gurney advises and represents contractors and other participants in the construction process on risk management; contract formation; bidding issues; mechanics liens and payment matters; schedule delay and disruption claims; defect claims; and mediation, arbitration, and litigation of construction disputes. He is past chairman of the Cincinnati Bar Association s Construction Law Committee, is a past member of the board of directors of Allied Construction Industries (AGC-Cincinnati), and is on AGC of Ohio s Legislative Committee. Workshop W4 Bob Compton, P.E. Director of Product Design and Development PIVOTek LLC Mr. Compton is one of the panelists for Workshop W4, Prefab and Modular Systems A Case Study on Risks/Rewards, on Wednesday morning. Mr. Compton is a construction management and design professional with 36 years comprehensive experience in all aspects of commercial and infrastructure projects. He has managed projects and construction programs with values of over $100 million from design development through final commissioning ranging from emergency bridges to a national landmark museum. Mr. Compton was one of the original founding employees of PIVOTek. As Director of Operations, he was responsible for design development of the first fully functional, prefabricated hospital grade bathroom unit. He has provided the technical and logistical aspect of many presentations on prefabricated bathroom units and mechanical rack systems to the Ohio State Architect s office, American Society of Plumbing Engineers, municipal and state building departments, and numerous architectural, engineering, and construction management firms. His past experience includes President, Woolpert Construction Services, and Project Manager for Joint Venture Construction Management Team, National Underground Freedom Center Museum, Cincinnati, Ohio. Mr. Compton earned a Bachelor of Science, Civil Engineering, University of Kentucky, and his education includes graduate work in Material Science, University of Kentucky. He holds the Professional Engineer registration. He was named Project Manager of the Year in 2003 by the American Subcontractors Association. 3

4 Joseph S. Ferdelman Senior Principal Heapy Engineering Mr. Ferdelman is one of the panelists for Workshop W4, Prefab and Modular Systems A Case Study on Risks/Rewards, on Wednesday morning. Mr. Ferdelman joined Heapy Engineering in 1990 as an HVAC Design Engineer and now serves as the firm s Healthcare Market Leader. In this role, he provides guidance to the firm s engineering staff on matters regarding the latest innovations in health care design and the development of design tools, codes, and overall industry insight. Mr. Ferdelman was named a Principal in the firm in He manages a team that has full design responsibility for the mechanical and electrical systems. As the Team Manager, he is responsible for the concept design and final layout of the building s mechanical-electrical systems, incorporating the complex and innovative solutions that are required to meet the needs of today s health care projects. Some of his most recent projects include the new 120-bed Soin Medical Center in Beavercreek, Ohio, and the new 250-bed Mercy West Hospital in Cincinnati, Ohio, which is currently in construction. Mr. Ferdelman holds a bachelor of science in Mechanical Engineering from the University of Cincinnati and is a Professional Engineer, LEED BD+C AP, and Healthcare Facility Design Professional, which is an ASHRAE Certification. Jay Kingsley MEP Manager Turner Construction Mr. Kingsley is one of the panelists for Workshop W4, Prefab and Modular Systems A Case Study on Risks/Rewards, on Wednesday morning. He has 14 years of construction industry experience and has been with Turner since As Superintendent, Mr. Kingsley is responsible for cost control, quality control, scheduling, coordination of trades, and safety. Mr. Kingsley works closely with the architects to ensure that the project is constructed as efficiently and economically as possible. Mr. Kingsley is responsible for coordinating field operations and communicates daily with the owner s representative regarding all construction issues that may affect ongoing operations. Mr. Kingsley is the MEP Project Manager for Turner s current preconstruction and construction management services for Mercy Health West Hospital, in Cincinnati, Ohio, a new 560,000 sq. ft., 250-bed replacement hospital on a Greenfield site. He was also the MEP Project Manager for construction of the University of Kentucky Patient Care Facility, in Lexington, Kentucky, a new 1,000,000 sq. ft. patient care facility. The hospital includes state-of-the-art space for emergency care, interventional care, imaging, and surgery, including two towers of private patient rooms. Mr. Kingsley earned a B.S., Construction Management, from the University of Cincinnati, in

5 Bill Merk Director, Engineering and Preconstruction Grote Enterprises Mr. Merk is one of the panelists for Workshop W4, Prefab and Modular Systems A Case Study on Risks/ Rewards, on Wednesday morning. Mr. Merk is the Director of Engineering & Preconstruction for Thomas J. Dyer Company, in Cincinnati, Ohio. Mr. Merk s core focus is supporting Dyer Project Managers, as well as their Construction Manager and Owner clients, providing mechanical expertise and input, ensuring consistent and appropriate preconstruction resources, and maintaining a seamless transition from the preconstruction phase to the implementation phase. Mr. Merk has 27 years of professional experience in the mechanical construction industry, and holds a degree in Mechanical Engineering from the University of Cincinnati. After graduating, Mr. Merk began his career with Hawa, Inc., as a consulting engineer, specializing in design and project management for laboratories, health care and higher education. In 2001, Mr. Merk joined the Thomas J. Dyer Company as a mechanical engineer. Since then, he has been promoted to Engineering Manager, and, then, Director of Engineering and Preconstruction. Mr. Merk is an active member in several professional organizations, including the American Society of Heating, Refrigeration and Air-Conditioning Engineers (ASHRAE), the Society of American Military Engineers (SAME), the National Fire Protection Association (NFPA), and the Tri-State Society for Healthcare Engineers (TSHE). Workshop W4 5

6 Notes This file is set up for duplexed printing. Therefore, there are pages that are intentionally left blank. If you print this file, we suggest that you set your printer to duplex. 6

7 Prefab and Modular Systems A Case Study on Risks/Rewards Scott Gurney Frost Brown Todd LLC Jay Kingsley Presented by: Turner Construction Company Joe Ferdelman Heapy Engineering Workshop W4 Bob Compton PIVOTek Bill Merk Grote Enterprises Mercy West Hospital, Cincinnati, Ohio Project Overview Project Description 650,000 sq. ft. facility 250 beds $180 million in construction costs 23-month construction schedule 2 7

8 Key Project Drivers Schedule Schedule Schedule Cost Quality Mercy West Hospital, Cincinnati, Ohio Project Overview 3 Mercy West Hospital, Cincinnati, Ohio Project Overview 4 8

9 Contracts/Project Delivery Method Owner/Architect/Engineer Contract Owner/CM Contract CM at risk Subcontracts Preconstruction contract Design assist GMP/Fixed fee Integrated Project Delivery ( IPD Lite ) Workshop W4 5 Insurance Program Property/Builders Risk (Owner) A/E Professional Liability CCIP Cover workers comp and GL On-site labor only Subcontractor Insurance Off-site fabrication and storage 6 9

10 Design/Pre-con Process The Process Early coordination/ Fabrication drawings Collaboration between CM and design team Timely decision making The Benefits Allows for prefabrication 7 Design/Pre-con Process The Risks Changes BIM software Building code authority Risk Management Mock-ups Communication Early code official involvement 8 10

11 Fabrication Process Workshop W4 9 Fabrication Process The Process Schedule/Sequence Inspection/Testing The Benefits Schedule Quality Safety Cost? 10 11

12 Fabrication Process The Risks Pioneering process Labor relations Material exposure to moisture Liability/Property claims Risk Management Early prefab decision Alternative material selections Coordinated subcontractor insurance 11 Installation Process 12 12

13 Installation Process The Process Logistics/Rigging Material management Hanging/Setting Final connections Commissioning The Benefits Schedule Quality Safety Cost? Workshop W4 13 Installation Process The Risks Damage Exposure to elements It don t fit! Risk Management Scheduling/Sequencing Material selection and weather protection GPS/BIM/Templates 14 13

14 Results and Impact Impacts to: Schedule Cost Quality Safety Environment Best Practices Lessons Learned 15 14

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