WHOSE DESIGN IS IT ANYWAY?

Transcription

1 WORKSHOP M11 Monday, November 9 1:30 p.m. 2:45 p.m. 3:15 p.m. 4:30 p.m. WHOSE DESIGN IS IT ANYWAY? Workshop M11 Presented by Eric Davis Advisor Indoor Reality Sam McDermott Partner Wood, Smith, Henning & Berman LLP Tracy Saxe Partner Saxe Doernberger & Vita, P.C. Ted Wickenhauser VP of Risk Management McCarthy Holdings, Inc. Today s commercial contractor accepts more design responsibility than ever before. The risks are enormous, insurance coverage is often unclear, and contractual risk transfers may be insufficient. A case study approach will be used to identify hidden risks in design-build, building information modeling (BIM), and integrated project delivery settings. Learn how to identify design risks, allocate the liabilities contractually, and arrange appropriate insurance coverage for these daunting exposures. To print on both sides of the page, set your printer for duplex printing. Copyright 2015 International Risk Management Institute, Inc. 1

2 STATE-OF-THE-ART STRUCTURES NEED INSURANCE COVERAGE TO MATCH. In the midst of constructing the new MGM arena* in Las Vegas, Hunt Construction Group trusts The Hartford to keep them up to date with the industry s best job safety practices. With a single day-to-day point of contact and our very own Industrial Hygeine lab, we can give them the attention and information they need to make their project better and their people safer. Business Insurance Employee Benefits Auto Home See the whole story at THEHARTFORD.COM/CONSTRUCTION. Prepare. Protect. Prevail C *The Las Vegas Arena, owned by AEG and MGM Resorts International is being constructed by Hunt-PENTA, a joint venture. The Hartford is The Hartford Financial Services Group, Inc. and its subsidiaries, including issuing companies, Hartford Fire Insurance Company, Hartford Life Insurance Company and Hartford Life and Accident Insurance Company. Its headquarters is in Hartford, CT The Hartford Financial Services Group, Inc. All Rights Reserved.

3 Eric Davis Advisor Indoor Reality Mr. Davis s experience in the design and construction industry spans close to 20 years. Before becoming advisor at Indoor Reality, he spent the last 12 at Swinerton, where he served as director of Strategic Development. Mr. Davis promotes technological innovation and aligns technology investments with operational needs, strategic long-range goals, and technology trends. In 2014, Mr. Davis led a first-place prize-winning team at the second annual Architecture, Engineering, Construction (AEC) Hackathon event by building a working prototype mobile app using indoor positioning. He is an Advisory Board member at Assemble Systems and has presented at Engineering News-Record (ENR) Future Tech West, AGC BIM Forum (the Associated General Contractors of America Building Information Modeling Forum), and Autodesk University. Workshop M11 Sam McDermott Partner Wood, Smith, Henning & Berman LLP Mr. McDermott is a highly experienced litigator with 20 years of experience in the construction industry who has served virtually his entire career with Wood, Smith, Henning & Berman. A leader in the firm's Orange County, California, office, Mr. McDermott has litigated an extensive number of cases at the state and federal level involving design-build construction, payment disputes, delay damages, professional liability, and construction quality issues. He has represented some of the nation s largest commercial contractors in cases involving design, quality, and defect issues, and he also handles cases regarding on-site injuries, workplace regulations, prevailing wage claims, and other administrative matters. Tracy Saxe Partner Saxe Doernberger & Vita, P.C. A partner at Saxe Doernberger & Vita, P.C., Mr. Saxe has spent almost 30 years focusing on the needs of corporate policyholders nationwide. He has successfully tried numerous jury and court trials in state and federal courts; has litigated insurance coverage cases before the federal, state trial, and appellate courts; and has successfully mediated and arbitrated many insurance coverage disputes. Mr. Saxe has tried more than 60 cases to judgment or verdict. 3

4 Ted Wickenhauser VP of Risk Management McCarthy Holdings, Inc. Mr. Wickenhauser has more than 20 years of experience in risk management, insurance, and construction claims. He currently serves as vice president of risk management at McCarthy Holdings, Inc., a national commercial contractor and design-builder. During his 7 years at McCarthy, Mr. Wickenhauser has also held the role of claim director/corporate risk manager. Prior to joining McCarthy, Mr. Wickenhauser was national claims manager at MDC Holdings, Inc.; director of Excess/Surplus Claims at Fireman s Fund Insurance; team manager at Liberty Mutual Insurance; and field adjuster at Prudential Property & Casualty. Mr. Wickenhauser holds an MBA from DePaul University. 4

5 Whose Design Is It Anyway? Presented By: Ted Wickenhauser Vice President Workshop M11 McCarthy Holdings, Inc., PC Tracy Alan Saxe Partner Saxe Doernberger & Vita, P.C. Eric Davis Advisor Indoor Reality Sam McDermott Partner Wood Smith Henning & Berman, LLP Panel Participants Ted Wickenhauser Tracy Alan Saxe Vice President, Risk Mgmt. Partner McCarthy Holdings, Inc. Saxe, Doernberger & Vita, PC Eric Davis Advisor Indoor Reality Sam McDermott Partner Wood Smith Henning & Berman, LLP 2 5

6 Overview Traditional Construction Delivery Design-Build Construction Construction and Technology Building Information Modeling Integrated Project Delivery Panel Discussion 3 Traditional Project Delivery Methods Design-Bid-Build Pure Design-Bid-Build Design-Negotiate-Build Construction Management At Risk As Agent 4 6

7 Design-Build Construction Design/Construction Through Single Entity Owner Has Sole Point of Contact/Responsibility Integration of Design/Construction Schedule Project Types Workshop M11 5 Design-Build Benefits & Risks Benefits Cost Savings Schedule Gains Design Flexibility Risks Control of Design Lacks Adaptability Liability Risk Unclear 6 7

8 Managing Design-Build Risks Contract Structure Design-Builder Controlled Contracts Design-Professional Controlled Contracts Hybrid Control Contracts AIA 2014 Series ConsensusDocs Managing Design-Build Risks Indemnification Agreements Standard Insurance may not be adequate CGL Professional Builder s Risk Appropriate subcontractor risk transfer 8 8

9 Design-Build Case Study Senior Assisted Living Facility Owner: VA Development Workshop M11 Contractor: Quality Const. Quality retains Able Architect Quality retains Mighty Mechanical Engineering Original Design: PTAC units VA Requirements: Central Air Inspection Reveals Problem Schedule Delay 9 Central Air placed in Attics Integration of Construction and Technology Electronic Documentation Web-based Collaboration Increased Connectivity Mobile Devices Building Information Modeling (BIM) 10 9

10 What is BIM? Digital representation of physical and functional characteristics of a facility. US BIM Standard Project Committee (BIM) Building Information Model geometry (objects) Bldg A (location) HVAC (system) L x W x H (dimensions) (specifications) + = data (parameters) SMART OBJECT Parametric (changes to data effect geometry & vise versa) 12 10

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12 BIM Risks BIM Management Responsibility Ambiguity of Design Responsibility and Construction Means & Methods Documenting Modifications During the BIM Process Application of Spearin doctrine (?) 16 12

13 Managing BIM Risks Contract Structure Responsibility Delegation in BIM Execution Plan AIA E201, E202 ConsensusDocs 301 Workshop M11 Limitation of Field Modifications of Contract Obligations 17 Managing BIM Risks Finding the right source for coverage is critical. CGL Property damage required. Professional a more likely coverage source for BIMrelated claims

14 BIM Case Study Senior Assisted Living Facility PTAC units replaced with Central Air in Attics BIM used to design placement in Attics Insufficient Space to Maintain the Units Redesign and Reconstruction Schedule Delay Air Handlings Units installed in Attics 19 BIM Concepts Lead to Revisiting Integrated Project Delivery It is the opinion and recommendation of this study that Building Information Modeling is essential to efficiently achieve the collaboration required for Integrated Project Delivery. - Integrated Project Delivery: A Working Definition AIA California Council,

15 Integrated Project Delivery A project delivery method that integrates people, systems, business structures and practices into a process that collaboratively harnesses the talents and insights of all participants to reduce waste and optimize efficiency through all phases of design, fabrication and construction. - American Institute Architects Workshop M11 Coalition of Ownership, Design, Engineering and Construction 21 IPD Risks Shared Responsibility Beyond Expertise Imputed Obligations Beyond Licensure Contractual Enforceability Unclear 22 15

16 Managing IPD Risks Contract Structure ConsensusDocs 300 AIA C Limited Risk/Reward Sharing Early Planning/Design Involvement (CM) BIM 23 Managing IPD Risks Claim waivers in contracts may negatively impact desired risk transfer. Need to be able to make a claim against each other in order to access CGL coverage

17 IPD Project Study University of Minnesota Study Analyzed IPD Projects over past 15 years Findings Workshop M11 25 IPD Panel Perspectives 26 17

18 Future Developments 27 Challenge the Paradigm BIM and Design Authoring Bldg A (location) HVAC (system) L x W x H (dimensions) (specifications) + = geometry (objects) data (parameters) Digital Paper 28 18

19 Challenge the Paradigm Workshop M11 Project Atlas 29 Discussion 30 19

20 Conclusion THANK YOU Ted Wickenhauser Eric Davis Tracy Saxe Sam McDermott 31 20

21 To enter the drawing for $500, affix your personal bar code label here or complete this evaluation online. M11. Whose Design Is It Anyway? Rating scale for all questions: 4 = Excellent 3 = Very Good 2 = Average 1 = Somewhat Disappointing 0 = Very Disappointing Overall rating for this workshop? Eric Davis Preparation and quality of information Energy and enthusiasm of delivery Educational focus (not a sales pitch) Sam McDermott Preparation and quality of information Energy and enthusiasm of delivery Educational focus (not a sales pitch) Tracy Saxe Preparation and quality of information Energy and enthusiasm of delivery Educational focus (not a sales pitch) Ted Wickenhauser Preparation and quality of information Energy and enthusiasm of delivery Educational focus (not a sales pitch) Comments (use reverse side if extra space is needed):