Achieving Excellence

1
Achieving Excellence
Presentation to the University of Washingtons
Capitol Projects Office by Dan
Absher September 24, 2009
2
Objectives

• Open and candid discussion
• Inspire UW to be the best construction owner in
  the state
• Help UW-CPO achieve excellence
• Learn what makes a great owner
• Explore ways to utilize procurement and delivery
  methods to help achieve excellence
• Encourage UW to be the states leader in
  construction and to boldly go where no one has
  gone before
• Learn how Absher tries to achieve excellence
• Get feedback achieve excellence

3
UW - 16 USC - 13
4
Absher

• Founded in 1940 by Barney Absher
• BCTWF 5 of last 6 years
• Striving for excellence
• Absher University
• Absher Leadership Challenge
• Lessons Learned
• Holiday Lights
• AGC Grand Award 3 times
• GSA National Grand Award
• Third Generation
• Husky Legacy

5
The 4th Generation
Karly and Meredith
Meredith and Clint
6
Core Purpose and Values
Purpose To create and build community with vision
and compassion. Values - We care about people -
Servant Leadership - Doing things right - Doing
right things Mission Absher Construction Company
creates a better future by building significant
community projects and developing leaders with
vision and compassion.
7
Recent Accomplishments
8
Recent Accomplishments
Jackson Avenue Barracks, Fort Lewis
Ballard on the Park, Ballard WA
Papali, Maui HI
High Point, West Seattle WA
9
The Contractors Perspective What Makes a
Great Owner?
10
Perception
or
11
The Great Owner 10 Commandments

• 1. Treat others fairly and with respect
• 2. Be trusting and trustworthy
• 3. Be a good listener
• 4. Allow contractors to make a profit
• 5. Make timely decisions
• 6. Establish clear lines of authority
• 7. Accept responsibility
• 8. Pay on time or EARLY
• 9. 2-way open communication
• 10. Provide leadership
• Set direction and vision
• Align the team
• Motivate the team
• (Mike Rutter)

12
Contractor Risk Assessment
1. Does the owner have secure funding? 2. Do we
have any experience with the owner? 3. Does the
owner have a reputation for fairness? 4. Do we
have any relationships with the owner or any of
the key owner representatives? 5. Has the owner
hired an independent CM to manage the
contract? 6. Has the owner proposed fair and
reasonable contract terms? 7. Does the owner have
a clearly defined reporting structure? 8. Has the
owner hired a great design team (if
applicable)? 9. Have we had a positive track
record with the design team? 10. Do we have any
relationships with members of the design team?
13
Contractor Risk Assessment ctd.
11. Schedule has adequate time been
provided? 12. Long-lead item/material concerns?
13. Any trade-sensitivity or sequencing issues,
etc.? 14. Planholders/Competitors how many? 15.
Current bidding climate 16. Quality of the
drawings and specs (if D/B/B) 17. Location of the
project 18. Type of project 19. Complexity of the
project 20. Any unique insurance requirements?
14
Team Accountability

• Common Goals
• Shared Risk
• Shared Reward
• Respect differences
• Celebrate samenesses

15
Contractors Motivation
Are Contractors trying to get as much of the
owners money as possible? Maybethose who
dont want to work for that particular owner
again! For some contractors there is a greater
goal than profit service
16
Can an owner overmanage?
17
Can an owner over-manage?

• More coaching mistakes are made by
  over-coaching than under-coaching

18
Can an owner overmanage?

• Define the ownership role and stick to it
• 1. Not an architect, contractor or inspector
• 2. Clear chain of command
• 3. Limit number of owner-side chefs
• 4. Understand owners role on the team
• 5. Respect other roles on the team
• 6. Commit to communication peer levels

19
Great owner Advantages

• Youll typically receive
• Better quality
• Better pricing
• Better efficiency
• Fewer (if any!) claims
• Less stress
• More enjoyment
• More sleep, more smiles

20
Current Industry Issues

• Private vs. Public Sector Construction Whats
  the difference?
• Selection Processes The good, the bad and the
  ugly
• Best Value Complete, unfettered discretion?
• Design/Build Why is it underutilized?
• Early Selection of Mechanical and Electrical in
  GC/CM
• Integrated Project Delivery
• Prequalification and Contractor Responsibility

21
Current Industry Issues

• Private vs. Public Sector Construction Whats
  the difference?
• If you could build the exact same building
  private and public, what would the cost
  difference be?
• What factors go into the cost difference?
• Shouldnt there be a difference between how
  public money is spent and private money is spent?
• Public Sector why do we keep doing
• it the same way?

22
Current Industry Issues
23
Current Industry Issues

• Selection Processes The good, the bad and the
  ugly
• The Power of One
• Stadium High School
• John OBrien Building
• Meadowdale Middle School
• Good Samaritan Hospital
• Guam BEQ
• UW Student Housing

24
Current Industry Issues

• Selection Processes UW Student Housing 31 32
• Low Conforming Fee 12 points
• Low Conforming Specified General Conditions 13
  points
• Fee to include
• Bonds .59
• Liability Insurance .4
• City License .32
• State B O Tax .5

25
Current Industry Issues

• Selection Processes UW Student Housing 31 32
• Results
• Absher
• Fee 2,640,000 (5)
• GCs 2,250,000 13 points
• Total 4,890,000
• WG Clark
• Fee 528,000 (1) 12 points
• GCs 5,250,000
• Total 5,778,000
• Walsh
• Fee 1,372,800 (5)
• GCs 4,242,000
• Total 5,614,800

26
Current Industry Issues

• Selection Processes UW Student Housing 33 35
• Results
• WG Clark
• Fee 1,786,000 (3.8) 2 points
• GCs 2,517,000 13 points
• Total 4,303,000
• Walsh
• Fee 1,504,000 (3.2) 12 points
• GCs 3,400,000
• Total 4,904,000

27
Current Industry Issues

• Design/Build Why is it underutilized?
• RCW 39.10.300
• Federal Experience
• Mirror IPD

28
Current Industry Issues

• Early Selection of Mechanical and Electrical in
  GC/CM
• Incorporate GCCM-style selection
• Mitigate risk
• Improve efficiency
• Mirror IPD

29
Current Industry Issues

• Integrated Project Delivery (IPD)
• Validate Assumptions
• Define IPD
• Utilize current methods to model IPD

30
Current Industry Issues

• Prequalification and Contractor Responsibility
• Contractor concerns
• Recent Examples
• Yakima Training Center
• SCORE Corrections Facility
• Camp Pendleton

31
Achieving Excellence
Q and A
32
Summary

• Open and candid discussion
• Inspire UW to be the best construction owner in
  the state
• Help UW-CPO achieve excellence
• Learn what makes a great owner
• Explore ways to utilize procurement and delivery
  methods to help achieve excellence
• Dont get stuck on the escalator!!
• Encourage UW to be the states leader in
  construction and to boldly go where no one has
  gone before
• Learn how Absher tries to achieve excellence
• Get feedback achieve excellence

33
Achieving Excellence
Feedback plus/deltas
34
Achieving Excellence
THANK YOU!!!