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LCI San Diego Community of Practice
Different Ways to Contract for Lean Project Delivery
As the awareness and embrace of Lean Construction continues to expand in the construction industry, ever-increasing numbers of projects grapple with the question of how to address Lean Construction principles and methods in their design and construction contracts. Project owners have taken primarily three approaches on this:
• Seeking the highest level of Lean performance, owners have used Integrated Project Delivery (IPD) agreements, such as the ConsensusDocs 300, sometimes called integrated forms of agreement (IFOAs).
• When they or their team are not willing or able to use an IPD agreement, other owners have used legal counsel to custom-draft design and construction contracts under more conventional project delivery models such as CM-at-Risk, to address Lean design and construction methodologies.
• Other owners will seek to promote Lean behaviors among the project team independent of what is in the design and construction contracts.
Now, project teams have new options for contracting for a Lean project when they cannot implement an IPD Agreement. In 2018, ConsensusDocs published two important contract documents for collaborative construction projects: (1) the ConsensusDocs 305 Lean Construction Addendum (CD305); and (2) the ConsensusDocs 541 Design-Assist Addendum (CD541).
With the CD305, for the first time we have a non-IPD contract document available to the whole industry that provides for a wide spectrum of Lean design and construction practices. To use the CD305, an Owner can start with either an industry standard form front-end contract or its own standard contract and add to it a Lean Construction Addendum that reflects the best thinking in the industry around Lean design and construction.
The CD541 provides terms and conditions for the design and construction team when the CM and key trades are engaged during the design phase to provide design-assist services. Design-assist has been a major trend of the last several years and a key accelerant to Lean Project Delivery, but there has not been a standard industry approach to defining what design-assist services involve and what terms and conditions should apply. The CD541 is the first industry standard contract form to tackle the difficult task of defining the range of design-assist services and providing appropriate contract terms. By gaining the early involvement of builders’ expertise and coordinating those efforts with design teams, teams achieve greater project cohesion and efficiency. The CD541 was intentionally designed to coordinate with the CD305 Lean Construction Addendum so that they can work together or stand independent.
Tonight’s event will discuss the different ways to contract for Lean Project Delivery, with discussion of IPD agreements, using Design-Build for Lean Project Delivery, and CM-at-Risk using the new CD305 and CD541.
Learning Objective: Understand currently available contracting methods for fostering Lean project delivery including IPD, Design-Build, and CM-at-Risk, as well as how the new ConsensusDocs 305 Lean Construction Addendum and ConsensusDocs 541 Design-Assist Addendum can help projects achieve greater success in Lean Project Delivery
Joel Darrington – DPR Construction – Joel Darrington has extensive experience as a construction attorney, and during his law firm days advised private and public clients in construction transactions in a wide variety of settings. Now providing in-house legal support to DPR Construction in their construction contracting, Joel assists with transactions in both traditional and collaborative project delivery settings, including Integrated Project Delivery, Lean Construction, design-build, CM-at-Risk, multi-prime, and design-bid-build.
Joel is active in the Lean Construction Institute and has written and presented numerous times about Lean Construction and IPD. He has also extensively researched various approaches to incentive programs and risk allocation utilized by international project delivery models. Joel’s research on incentives and relational contracting is featured in numerous publications. Joel was also a key member of the editorial group that made a comprehensive revision of the ConsensusDocs 300 Integrated Project Delivery Agreement (released in 2016), and the editorial groups that developed the ConsensusDocs 305 Lean Construction Addendum and ConsensusDocs 541 Design-Assist Addendum (released in 2018).
5:00p-6:00p: Networking (Food and Drink is provided at the event)
6:00p-6:15p: Announcements and Introduction of Speakers
6:15p-7:45p: Main Event
7:45p-8:00p: Wrap Up and Plus/Delta
Non-Member Rate: $45.00
Owner Rate: First 10 Free
Student Rate: $20
Food and Drink will be provided