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California’s Construction Employment And Spending Will Take Years To Return
To Pre-Bust Levels, Business Economist Predicts
Bleak Construction Outlook Provides Economic & Environmental Reasons to
Change Off-Road Diesel Emissions Rule, Construction Workers, Contractors,
Officials Note
California’s construction industry will build fewer projects and employ
fewer people compared to its mid-decade peak through at least 2015, a
leading business economist told staff of the state’s Air Resources Board
today. As a result, the financially hard-pressed industry will generate
fewer emissions for at least the same period, giving California time to
revise its emissions standards for off-road diesel equipment and still meet
and exceed its environmental goals, construction officials explained.
“The state’s construction industry will remain a shadow of itself for years
to come,” said Dr. Lynn Reaser, president of the National Association of
Business Economics and chief economist for Point Loma Nazarene University.
“This means fewer construction projects, fewer pieces of construction
equipment in use and, ultimately, fewer emissions.”
Even if the state’s construction industry stabilized and quickly began to
grow, Dr. Reaser predicted that the industry would employ fewer than 700,000
people in 2015, compared to more than 900,000 in 2006. Construction spending
would also remain well below peak levels, reaching about $60 billion in
2015, compared to nearly $100 billion in 2006.
Contractors, construction workers and construction officials pointed to Dr.
Reaser’s outlook as they urged the state’s Air Resources Board to reconsider
its current efforts to force businesses to retrofit, repower or replace
billions of dollars worth of off-road diesel equipment. They added that the
latest analysis of the state’s data confirms that off-road diesel emissions
will be below the state’s goal for years to come.
“The evidence is overwhelming: contractors can’t afford to comply with the
current rule and the state doesn’t need it,” said Michael Kennedy, general
counsel for the Associated General Contractors of America during a public
hearing convened by the Board’s executive officer. “Given the choice between
clean air and more jobs, or clean air and fewer jobs, it’s pretty clear
which way the state should go.”
Kennedy urged the Board’s staff to delay the implementation of certain fleet
average requirements until at least 2015. He noted that by then a new
generation of cleaner construction equipment will be available that won’t
require costly and potentially unsafe retrofits.
View
Dr. Reaser’s full presentation to the California Air Resources Board.
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Construction Employment Declines In Every State, D.C. Between January 2009
And January 2010; 38 States, D.C. See Double-Digit Drops
California Loses the Most Construction Jobs, Nevada Has Highest
Percentage Decline & North Dakota Loses the Least Jobs, Has Smallest
Percentage Decline in Construction Employment
The construction workforce was smaller in every state and the District of
Columbia in January 2010 than it was just 12 months earlier, according to a
new analysis of federal data released today by the Associated General
Contractors of America. The data indicated just how widespread the
construction downturn is, association officials said, noting that 38 states
and D.C. experienced a double digit percentage drop in construction
employment.
“Construction employment is dropping everywhere and plummeting almost
everywhere,” said Ken Simonson, the association’s chief economist. “Looking
at this data, it is quite clear that the construction industry has yet to
hit bottom.”
Simonson noted that California lost more construction jobs, 128,700, while
North Dakota lost the least jobs, 200, over the past twelve months. The five
states with the largest percentage decline in employment were Nevada (29.9
percent); Arizona (26 percent); Colorado (22.2 percent); Idaho (21 percent);
and Florida (20.4 percent). Meanwhile, North Dakota (1 percent); Nebraska
(4.1 percent); Alaska (4.2 percent); South Dakota (5.9 percent); and
Arkansas (6.2 percent) experienced the smallest decline in construction
employment.
Even the monthly employment changes reflect the tough construction
conditions, said Simonson, noting that 31 states lost construction jobs
between December and January. He added that most of the states adding jobs
for the month lost jobs in December, often more than they gained back in
January. The economist said this suggested the monthly data was affected by
unseasonable weather conditions that also are likely to affect February’s
state employment figures.
Association officials cited the new state employment data in urging the
Senate to pass a ten month extension to the nation’s surface transportation
program and for the administration to accelerate stimulus-funded
construction projects. “As privately-funded construction activity continues
to decline, federal investments in infrastructure are often the difference
between a job and unemployment for what’s left of the industry.”
View the
state-by-state employment data.
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Continued Weakness in Housing Market Prompting Shift Away from High-end
Kitchen and Bath Features
Homeowner preferences lean to energy efficiency and simplicity in
design
Without the rapid appreciation in home values seen between 1995 and 2005,
design of kitchens and bathrooms has recently been somewhat more modest.
Functionality is now preferred to more and larger kitchens and bathrooms
within U.S. homes. Households are placing a premium on products and features
that promote energy efficiency, and adaptability in the use of space for
seniors and those with accessibility concerns.
Residential architects continue to report declining business conditions,
indicating that the housing market is not yet entering a full recovery
phase. These findings are from the American Institute of Architects (AIA)
Home Design Trends Survey for the fourth quarter of 2009, which focused
specifically on kitchen and bathrooms.
“The general consensus is that homes will continue to be smaller on average
than they were in the past decade,” said AIA Chief Economist Kermit Baker,
PhD, Hon. AIA. “But since kitchens remain the nerve center of the home,
doing more with less space is a key consideration. Integrating kitchens with
family space remains a design priority, as does including areas devoted to
recycling, pantries, computer workstations, and spaces devoted to recharging
laptops, cell phones and PDAs.”
|
Popular kitchen products and features*
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2009
|
2008
|
|
Recycling center:
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52%
|
48%
|
|
Larger pantry space:
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47%
|
50%
|
|
Renewable flooring materials:
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46%
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54%
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|
Renewable countertop materials:
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46%
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49%
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|
Computer area / recharging stations
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43%
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48%
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|
Integration with family space:
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41%
|
40%
|
|
Drinking water filtration systems:
|
30%
|
31%
|
|
Adaptability / universal design:
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28%
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32%
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Double island:
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20%
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19%
|
* Index score computed as % of respondents reporting increasing minus
those reporting decreasing popularity
Baker added, “Homeowners are moving away from glitzy features such as steam
showers and towel warming drawers/racks, and instead looking for
water-saving toilets, radiant heated flooring and LED lighting options to
manage utility costs.”
|
Popular bathroom products and features*
|
2009
|
2008
|
|
Water saving toilets:
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63%
|
57%
|
|
Radiant heated floors:
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52%
|
50%
|
|
Accessibility / universal design:
|
50%
|
52%
|
|
LED lighting:
|
49%
|
41%
|
|
Doorless showers:
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47%
|
50%
|
|
Hand showers:
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36%
|
45%
|
|
Linen closet / storage:
|
29%
|
25%
|
* Index score computed as % of respondents reporting increasing minus
those reporting decreasing popularity
Housing market business conditions
AIA Home Design Survey Index for Q4 2009 (any score above 50 is positive
- Billings: 32 (down from 38 in Q3 2009)
- Inquiries for new projects: 45 (down from 46 in Q3 2009)
“It’s still too early to think the residential market has fully
recovered, but there are two encouraging signs – overall business conditions
are far better than they were a year ago at this time, and we are seeing
improvement in those housing sectors that need to lead a broader improvement
in the housing market: remodeling and alterations of existing homes, and at
the entry-level of the new construction market.” said Baker.
Specific construction segments (index score computed as % of
respondents reporting improving minus those reporting weakening conditions)
- Kitchen and bath remodeling: 28
- Additions / alterations: 21
- First-time buyer / affordable home market: -4
- Move-up home market: -31
- Custom / luxury home market: -44
- Townhouse / condo market: -46
- Second / vacation home market: -71
About the AIA Home Design Trends Survey
The AIA Home Design Trend Survey is conducted quarterly with a panel of 500
architecture firms that concentrate their practice in the residential
sector. Residential architects are design leaders in shaping how homes
function, look, and integrate into communities and this survey helps to
identify emerging trends in the housing marketplace. Business conditions are
also monitored on a quarterly basis. Future surveys will focus on overall
home layout and use (June 2010) specialty rooms and systems (September 2010)
and community design trends (December 2010).
About The American Institute of Architects
For over 150 years, members of the American Institute of Architects have
worked with each other and their communities to create more valuable,
healthy, secure, and sustainable buildings and cityscapes. By using
sustainable design practices, materials, and techniques, AIA architects are
uniquely poised to provide the leadership and guidance needed to provide
solutions to address climate change. AIA architects walk the walk on
sustainable design. Visit
www.aia.org
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Construction Unemployment Rate Hits 27.1 Percent As Another 64,000
Construction Workers Lost Jobs In February 2010
With Nearly 2 Million Construction Jobs Lost Since December 2007,
Construction Sector Continues to Drag Down Overall Employment Figures
The construction unemployment rate jumped to 27.1 percent and construction
employment dropped to a 14-year low as another 64,000 construction workers
lost jobs in February, according to federal employment figures released
today. The economy would have added jobs had it not been for the declines in
construction employment for the third time in four months, the Associated
General Contractors of America noted.
“While the broader economy may be recovering, the construction industry
continues to decline at an alarming rate,” said Ken Simonson, the
association’s chief economist. “If these trends don’t change soon, millions
of American families will continue to suffer.”
Simonson noted that industry’s job losses in February were consistent with
the prior six months and not mainly attributable to exceptionally bad
weather. He added that construction unemployment is at the highest level
recorded since the federal government began making the data available in
1976. And he noted that nonresidential construction experienced
significantly more job losses than the residential sector in February,
53,500 jobs lost versus 10,600.
Overall declines in construction activity, however, have cost 2.2 million
construction workers their jobs since industry employment peaked in June
2006, a 28 percent drop, Simonson noted. Construction has accounted for
1,936,000 of the 8,425,000 nonfarm payroll job losses since the recession
began in December 2007, or 23 percent of the total, even thought the
industry employs only 4.3 percent of all workers, he added.
The construction economist noted that job losses appeared widespread across
construction sectors, with nonresidential specialty trade contractors
experiencing the largest monthly decline of 1.7 percent. He noted that even
heavy and civil engineering construction, the sector most likely to be
boosted by stimulus funded projects, experienced a 1.1 percent monthly
employment decline.
“The industry has gone from being a symptom of our economic problems to a
victim of them,” said Stephen E. Sandherr, the association’s chief executive
officer. He noted that while the current Jobs Bill prevents declines in
federal highway funding, it does little to boost overall infrastructure
investments. “Until we see meaningful increases in demand for new
infrastructure and private sector construction projects, our economy will
continue to suffer.”
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The AIA Elevates 134 Members and 11 International Architects to the College
of Fellows
AIA Fellowship Recognizes Significant Contributions to Profession of
Architecture and Society
The 2010 Jury of Fellows from the American Institute of Architects (AIA)
elevated 134 AIA members to its prestigious College of Fellows, an honor
awarded to members who have made significant contributions to the
profession.
The 2010 Fellows will be honored at an investiture ceremony at the 2010
National AIA Convention and Design Exposition in Miami.
The Fellowship program was developed to elevate those architects who have
made a significant contribution to architecture and society and who have
achieved a standard of excellence in the profession. Election to fellowship
not only recognizes the achievements of architects as individuals, but also
their significant contribution to architecture and society on a national
level.
2010 Jury of Fellows
Allan W. Kehrt, FAIA, Chair, KSS Architects LLP, Princeton, N.J.; Henry C.
Alexander, Jr. FAIA, Rizo, Carreno & Partners, Coral Gables, Fla; Jeffrey A.
Huberman, FAIA, Gantt Huberman Architects, PLLC, Charlotte, N.C.; Paula J.
Loomis, FAIA, US Army Corps of Engineers, Norfolk, Va.; Robert D. Loversidge,
FAIA, Schooley Caldwell Associates, Columbus, Ohio; Gregory S. Palermo, FAIA,
Iowa State University, Ames, Iowa and Jim W. Sealy, FAIA, Jim Sealy
Architect/Consultant, Dallas.
2010 Fellows
Out of a total AIA membership of nearly 83,000, there are fewer than 2,872
distinguished with the honor of fellowship and honorary fellowship. The
elevation to fellowship is conferred on architects with at least 10 years of
membership in the AIA in one or more of the following nomination categories:
1. Promoted the aesthetic, scientific, and practical efficiency of the
profession
2. Advanced the science and art of planning and building by advancing the
standards of architectural education, training and practice
3. Coordinated the building industry and the profession of architecture
through leadership in the AIA and other related professional organizations
4. Advanced the living standards of people through an improved environment
5. Made the profession of ever-increasing service to society
You can see a list of these architects with pictures here:
http://www.aia.org/practicing/awards/AIAB082298
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Significant
Drop in Architecture Billings Index
Tight credit markets and weak demand for new projects continue to be main
challenges for design and construction industry
Beginning its third year of negative conditions, the Architecture Billings
Index (ABI) had a drop of almost three points in January. As a leading
economic indicator of construction activity, the ABI reflects the
approximate nine to twelve month lag time between architecture billings and
construction spending. The American Institute of Architects (AIA) reported
the January ABI rating was 42.5, down sharply from a revised reading of 45.4
in December. This score indicates a continued decline in demand for design
services (any score above 50 indicates an increase in billings). The new
projects inquiry score was 52.5, down more than seven points.
* Every January the AIA research department uses a procedure from the
Department of Commerce that re-estimates ABI data based on seasonal
patterns, resulting in a recalibration of recent figures.
“Projects are being delayed or cancelled because lending institutions are
placing unusually stringent equity requirements on new developments. This is
even happening to financially sound companies with strong credit ratings,”
said AIA Chief Economist Kermit Baker, PhD, Hon. AIA. “This serious
situation is being compounded by a skittish bond market, decreased tax
revenues for publicly financed projects and declining property values – all
which serve as deterrents for construction activity. Until these factors are
resolved, the design and construction industry -- which accounts for roughly
10 percent of GDP and is facing unemployment figures in excess of 20 percent
-- will continue to face deteriorating market conditions.”
Key January ABI highlights:
-
Regional averages: Midwest (48.0), Northeast (45.7), South (41.32), West
(40.5)
-
Sector index breakdown: multi-family residential (50.1), commercial /
industrial (44.9), institutional (43.1), mixed practice (40.3)
-
Project inquiries index: 52.5
About the AIA Architecture Billings Index
The Architecture Billings Index is derived from a monthly
“Work-on-the-Boards” survey and produced by the AIA Economics & Market
Research Group. Based on a comparison of data compiled since the
survey’s inception in 1995 with figures from the Department of Commerce
on Construction Put in Place, the findings amount to a leading economic
indicator that provides an approximately nine to twelve month glimpse
into the future of nonresidential construction activity. The diffusion
indexes contained in the full report are derived from a monthly survey
sent to a panel of AIA member-owned firms. Participants are asked
whether their billings increased, decreased, or stayed the same in the
month that just ended. According to the proportion of respondents
choosing each option, a score is generated, which represents an index
value for each month. The regional and sector data is formulated using a
three-month moving average.
About The American Institute of Architects
For over 150 years, members of the American Institute of Architects have
worked with each other and their communities to create more valuable,
healthy, secure, and sustainable buildings and cityscapes. By using
sustainable design practices, materials, and techniques, AIA architects
are uniquely poised to provide the leadership and guidance needed to
provide solutions to address climate change. AIA architects walk the
walk on sustainable design. Visit
www.aia.org
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Turner Partners Architecture, LP Announces its Transition to Turner Duran
Architects, LP.
|
|
|
 |
| R Gregory
Turner AIA LEED AP |
|
Jack Duran |
Turner Partners Architecture, LP of Houston, Texas is pleased to announce
its transition to Turner Duran Architects, LP. The name change recognizes
the contribution of Jack Duran to the firm’s successes, and reflects his
increased role in the company’s operations. Turner and Duran are the senior
partners in the firm, which specializes in projects in the institutional and
corporate facilities areas.
Turner Duran celebrated its silver anniversary in 2009, marking 25 years
since its founding in Houston. The business has seen consistent growth
through the intervening years, and now ranks among the top firms in Texas,
particularly in the Worship/Cultural category, according to McGraw-Hill’s
Texas Construction magazine.
Recently completed projects include the Notre Dame Catholic Church in
Houston, Seabrook United Methodist Church, the BP Americas Child Development
Center, the St. Agnes Academy Center for the Sciences, and many others
throughout southeast Texas.
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New PPG white paper helps architects, owners evaluate coatings warranties
Document covers terms, conditions, performance issues
PPG Industries (NYSE:PPG) has published a new white paper that helps
architects, specifiers, consultants and building owners evaluate and compare
extrusion coatings warranties from architectural coating suppliers.
The six-page document examines warranty terms and conditions, and details
performance variables such as film integrity, weathering and corrosion
resistance as they relate to industry-standard specifications from the
American Architectural Manufacturers Association (AAMA) and Qualicoat.
Henry L. Lowman, PPG global director of extrusion coatings, said the white
paper helps building professionals thoroughly understand warranty issues so
they can more effectively protect their coatings investment.
“The metal coating industry is constantly evolving and there are many
suppliers in different parts of the world issuing different kinds of
warranties,” he explained. “This document will help people who buy metal
coatings ask the right questions and negotiate the right warranty terms
before they commit to a purchase that can costs millions of dollars.”
For more information, or to download a copy of the white paper, visit
www.ppgideascapes.com or call 1-888-PPG-IDEA.
About PPG
Pittsburgh-based PPG is a global supplier of paints, coatings, optical
products, specialty materials, chemicals, glass and fiber glass. The company
has more than 140 manufacturing facilities and equity affiliates and
operates in more than 60 countries. Sales in 2008 were $15.8 billion. PPG
shares are traded on the New York Stock Exchange (symbol: PPG). For more
information, visit
www.ppg.com.
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Garland/DBS awarded US Communities Government Purchasing contract
Garland/DBS, Inc. has been awarded a contract for Roofing Supplies and
Related Products and Services by Cobb County, Georgia, which will be
administered as an offering within the U.S. Communities Government
Purchasing Alliance™ program nationwide. A jointly owned subsidiary of The
Garland Company, Inc., a full-service roofing manufacturing, distribution,
and service organization, and Design-Build Solutions, Inc., an innovative
building maintenance, repair, and restoration general contractor,
Garland/DBS, Inc. is headquartered in Cleveland, OH. Under the terms of this
nationally solicited and competitive contract award, participating agencies
of U. S. Communities will be able to purchase materials and services from
the entire Garland/DBS, Inc. catalog at the best available government
pricing.
Cobb County, Georgia, initiated the solicitation as an Invitation To Bid (ITB)
in May, 2009. Seven organizations responded to the bid, of which four were
deemed responsive and responsible to requirements that included the ability
to distribute and install products and deliver services nationwide.
Garland/DBS, Inc. was ultimately awarded the contract based on the lowest
price offer.
Founded in 1895, the Garland organization has evolved from being a local
manufacturer and distributor of oils, greases, and paints to a worldwide
leader in manufacturing high-performance roofing and building maintenance
systems for the commercial and institutional markets. Garland is a one
hundred percent employee-owned organization with one of the lowest warranty
adjustment rates in its industry. The company strives to ensure
performance-based outcomes by offering an integrated suite of products and
services directly to public institutions through its network of over 200
locally based employee-owner field representatives throughout the United
States, Canada, and the United Kingdom.
Under the terms of its U.S. Communities contract, customers may purchase
materials only or a fully designed, engineered, and installed roofing
project through Garland/DBS, Inc., with single-source accountability, using
a locally based Garland representative to manage their projects and Garland
approved local contractors to install them.
U.S. Communities is a nationwide government purchasing cooperative designed
to be a procurement resource for state and local government agencies, school
districts (K-12), higher education, and nonprofits. There is no fee to
participate in the program. It is comprised of over 40,000 registered
participants that have access to a broad line of competitively solicited
contracts providing quality products, services, and solutions.
Chris Robb, Program Manager for U.S. Communities explains, ”Regional and
local statutes generally allow one government agency to purchase from
contracts competitively solicited by another government agency for the
purpose of increasing efficiency or reducing administrative expenses.”
To obtain additional information on the benefits of cooperative purchasing
or to become a U.S. Communities participant, visit
www.uscommunities.org or call (866) 472-7467. For more information, or
to initiate a relationship with Garland/DBS, Inc., visit
www.garlandco.com, contact your local Garland representative at
1‑800‑321‑9336, or contact Karl Sooy at
uscommunities@garlandind.com
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Portland Cement Association to Recognize Public Officials for Sustainable
Development with Concrete
The Portland Cement Association (PCA) announces a call for entries for the
2010 Sustainable Leadership Awards. Now in its third year, the Sustainable
Leadership Awards program recognizes public officials that employ the use of
concrete and cement-based products for sustainable, long-lasting benefits.
In administering these awards, PCA helps to educate and inform decision
makers and those in the construction industry on how concrete is a vital and
versatile part of the greening of America’s infrastructure.
The Awards recognize projects in four categories. The Leadership in
Sustainability Policy Award honors public officials who enact policies that
promote the concept of sustainable development by advocating for and
promoting the use of concrete and cement-based products in their
communities. The Homes and Residential Building, Non-Residential Building
and Infrastructure awards honor public officials who utilize concrete or
cement-based products to achieve sustainable benefits for projects in each
of these categories.
PCA began the Sustainable Leadership Awards in 2008 to create awareness
around the importance of concrete to our infrastructure and communities. By
recognizing public officials across the nation, the Awards serve to heighten
state and local decision makers’ understanding of the many ways in which
building with concrete creates a long-lasting and positive impact on the
community and the surrounding environment.
“As the voice of America’s cement and concrete industry, PCA created the
Sustainable Leadership Awards to inform decision makers and their
communities about the many benefits of using these products,” said Brian
McCarthy, president and CEO of the Portland Cement Association. “The awards
honor those who employ the use of concrete and cement-based products for
sustainable and long-lasting results.”
To be eligible for consideration, construction and planning activities must
have occurred between January 1, 2008, and December 31, 2009. The deadline
to submit final entries is May 3, 2010. For more information and to access
the nomination form, visit
www.cement.org/SustainableLeadership
Recipients of the Sustainable Leadership Award can be found in communities,
big and small, across the nation. Nominations go through rigorous screenings
by a team of industry professionals to identify the most appropriate and
innovative projects as recipients of the Award. Past winners have employed
sustainable technologies such as; full-depth reclamation with cement;
insulated concrete forms wall systems; and pervious concrete among others.
2009 Leadership in Sustainability Policy Award
> Coweta County, Ga.: Wayne Kennedy, County Engineer was recognized for use
of full-depth reclamation with cement in road construction.
> Camp Rapid, S.D.: Dale Ludens, Engineering Manager was recognized for use
of pervious concrete in parking lot construction.
> Fairfield County, S.C.: James McGraw, Transportation Committee Chairman,
was recognized for use of full-depth reclamation with cement in road
construction.
2009 Homes and Residential Building Projects Award
> Philadelphia, Pa.: Mayor Michael Nutter was recognized for use of
insulated concrete forms in home building.
2009 Non-Residential Building Projects
> Highland, Calif.: The City of Highland was recognized for use of insulated
concrete forms in public library construction.
2009 Infrastructure Projects Award
> Queen Anne’s County, Md.: Queen Anne’s County Board of County
Commissioners recognized for use of pervious concrete in parking lot
construction.
Winners of the 2008 Sustainable Leadership Award can be found in Chicago,
Ill.; Lubbock, Texas; Salem, Ore.; Dallas, Texas; Fort Worth, Texas; Leawood,
Kan.; Hancock, N.H.; and Glendale, Ariz. To learn more about the Sustainable
Leadership Awards, view past winners and download an entry form, please
visit
www.cement.org/SustainableLeadership.
About PCA
Based in Skokie, Ill., the Portland Cement Association represents cement
companies in the United States and Canada. It conducts market development,
engineering, research, education, and public affairs programs. More
information on PCA programs is available at
www.cement.org.
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The American Institute of Architects and AIA California Council Announce
Positive Results in Integrated Project Delivery Case Studies
National study of Integrated Project Delivery method demonstrates
efficiencies and cost effectiveness
The American Institute of Architects (AIA) and The AIA California Council, (AIACC)
today announced the results of a joint project focused on real building
projects that utilized and implemented Integrated Project Delivery (IPD),
during the building process. IPD is a construction project model in which
owner, design professional and builder jointly share a project’s risk and
reward. These studies demonstrate the successful application of IPD in a
variety of building types and scales in diverse regions of the country, and
are the first installment of an ongoing evaluation process of how the IPD
model might be incorporated nationwide to protect against project losses. In
particular, all six participants in the study delivered projects on time and
within budget using the IPD model, thus demonstrating the effectiveness of
its use.
Inefficiencies and waste in the construction industry, coupled with new
technologies such as Building Information Modeling (BIM) and owner demand
for better quality and cost controls, have created a need for a
collaborative approach to design and construction. The participants in this
project openly discuss the pros and cons of IPD as a collaborative building
and design effort.
According to the case studies, advantages of IPD include:
- Owners enjoy improved cost control and budget management, as well as
the potential for less litigation and enhanced business outcomes.
- Contractors are provided with the opportunity for stronger project
pre-planning, more timely and informed understanding of design, the
ability to anticipate and resolve design-related issues through direct
participation in the design process, construction sequencing
visualization to improve methods prior to the start of construction, and
improved cost control and budget management.
- For architects and designers, IPD provides more time for design,
reduces documentation, allocates more appropriate sharing of risk and
reward and improves cost control and budget management.
According to Jonathan Cohen, FAIA, who conducted the study, “Based on
these initial reports, IPD is proving to be a solution that frees parties
from the processes that often weigh a project down. It allows for creativity
and innovation in the way stakeholders approach a project – avoiding a ‘one
size fits all’ formula and instead, finds solutions unique to the specific
building issues. We are excited to continue this research and see if this
methodology provides the boost to the bottom line of businesses that are
desperately needed.”
About the Case Studies
The six case studies in the report include Autodesk Inc., AEC Solutions
Division Headquarters in Waltham, MA; Sutter Health Fairfield Medical Office
Building in Fairfield, CA; Cardinal Glennon Children’s Hospital Expansion in
St. Louis, MO; St. Clare Health Center in Fenton, MO; Encircle Health
Ambulatory Care Center in Appleton, WS; and Walter Cronkite School of
Journalism, Arizona State University in Phoenix, AZ.
All participants were selected based on their compliance with the
criteria of IPD, which include:
- Mutual trust and respect among participants
- Collaborative innovation
- Intensified early planning
- Open communication within the project team
- Building Information Modeling (BIM)
- Lean Principles of design, construction and operations
- Co-Location of teams
- Transparent financials
Because the IPD process is new, it was important that all parties agreed
to these terms. Additionally, projects had to be completed in the United
States. Finally, Cohen visited all of the projects and interviewed the major
participants at length, including one or more representatives of the owner,
architect and builder. In most cases, the major engineering consultants,
specialty subcontractors, building users and other stakeholders were
interviewed, and project data was self-reported by the participants.
Steps have been taken across the AIA to support the use of IPD in future
projects. While the projects in the current report were implemented prior to
the availability of standard IPD Agreements, AIA Contract Documents now
offers several documents specifically for IPD projects, including the
C191™-2009, Standard Form Multi-Party Agreement for Integrated Project
Delivery; C197™–2008, Standard Form of Agreement Between Single Purpose
Entity and Non-Owner Member for Integrated Project Delivery; and C197™–2008,
Standard Form of Agreement Between Single Purpose Entity and Non-Owner
Member for Integrated Project Delivery. Information on AIA’s IPD Agreements
and other standard contract documents and software can be found at
www.aia.org/contractdocs and at
http://www.IPD-CA.net.
The AIA and AIACC continue to study the ongoing effort to apply IPD as a
business model and will document results in future reports. To download the
IPD case studies, visit
http://info.aia.org/aia/ipdcasestudies.cfm.
About the AIA California Council
The AIACC represents the interests of more than 11,000 architects and allied
professionals in California. Founded in 1944, The AIACC's mission supports
architects in their endeavors to improve the quality of life for all
Californians by creating more livable communities, sustainable designs and
quality work environments. Today, The AIACC is the largest component of the
national AIA organization. For more information, visit
www.aiacc.org.
About the American Institute of Architects
For over 150 years, members of the American Institute of Architects have
worked with each other and their communities to create more valuable,
healthy, secure, and sustainable buildings and cityscapes. By using
sustainable design practices, materials, and techniques, AIA architects are
uniquely poised to provide the leadership and guidance needed to provide
solutions to address climate change. AIA architects walk the walk on
sustainable design. Visit
www.aia.org
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