PROJECT VALIDATIONAGuidetoImprovingOwnerValue

andTeamPerformance

byDavidGrau,Ph.D.,P.E.

FernandaCruz-Rios,Ph.D.RachaelSherman

Version1.0Copyright©May2019

About the Lean Construction Institute and Lean Project Management

LeanConstructionInstitute(LCI)isanon-profitorganizationfoundedin1997.TheInstituteoperatesasacatalysttotransformtheindustrythroughLean,usinganoperatingsystemcenteredonacommonlanguage,fundamentalprinciplesandbasicpractices.TheLeanoperatingsystemprovidesthefoundationforadifferent,morecollaborativeandmoreeffectiveformofprojectmanagement.UseofLeantechniquesproducesatransformationalwayofdesigningandbuildingcapitalfacilitiesandgeneratingmajorimprovementsinownersatisfactionwhiledramaticallyimprovingscheduleandwastereduction,particularlyoncomplex,uncertainandquickprojects.Withover200corporatemembers,representingtheowner,designer,generalcontractorandtradepartnercommunities,LCIisavoiceforindustryasitrelatestoprojectwork.LCIsponsorsprogramsineducation,networkingandresearchtoassistmembersonallstagesoftheirLeanjourney.

LCIVision:Transformationalimprovementin:thedeliveryofvaluetostakeholders,andthequalityoftheworkenvironmentforallparticipants,achievedbyre-integratingasiloedindustrythroughLean.

Strategy:LCIseekstoincreaseownerandconstructionsupplychainsatisfactionwithdesignandconstructiondeliverybycreatingdemandfortransformationintheownercommunityanddevelopingthecapacityinthesupplychainnecessarytomeetthisdemand.

FormoreinformationonLeanConstructionInstitute,visitwww.leanconstruction.org

LeanConstructionInstitute1400N.14thStreet,12thFloor

Arlington,VA22209

PROJECT VALIDATIONAGuidetoImprovingOwnerValue

andTeamPerformance

Acknowledgements:WewanttothanktheLeanConstructionInstitute

(LCI)fortheirsupportofthisresearchand

developmentactivity.WealsowanttothanktheLCI

ResearchCommitteeandspecificallyitsteam

memberswhocontributedtothisresearchstudy

includingDr.RenéeCheng,Dr.GlennBallard,Dr.

TariqAbdelhamid,Dr.JamesO’Connor,andDr.IrisD.

Tommelein.Finally,wewanttothanktheindustry

expertswhoopenlysharedtheirinsightsand

experiencewithus:VictorSanvido,WillLichtig,

BernitaJ.Beikmann,ScottNelson,AndyRhodes,Bill

Seed,EdFitzgerald,RobCrotty,DigbyChristian,

BevanMace,DanHeinemeier,andBillWhipple.

Withouttheirinvaluablecontribution,thisresearch

studywouldnothavebeenpossible.

Citation:Grau,D.,Cruz-Rios,F.,andSherman,R.(2019).

ProjectValidation– AGuidetoImprovingOwnerValueandTeamPerformance. Version1.0.SchoolofSustainableEngineeringandTheBuiltEnvironment,

IraA.FultonSchoolsofEngineering,ArizonaState

University,Tempe,AZ,USA.Availableat:

https://grau.engineering.asu.edu/validation-guide/

CorrespondingAuthor:DavidGrauE-mail:david.grau@asu.edu

PREFACE: HOW TO USE THIS GUIDEWhatisthePurposeofthisGuide?HowisitOrganized?HowwasitProduced?HowtoPrintthisGuide?WhataretheQuotes?

EXECUTIVE SUMMARY

CONTENTS

WHAT IS VALIDATION?Validation

Validation and Integrated Project Delivery

BenefitsWhyShouldIValidate?

WhatareConditionsofSatisfaction?WhatistheIntegratedFormofAgreement?HowdoesValidationsupportIPD?CanIValidatenon-IPDProjects?

When is Validation Performed?

Basis of Design Vs. Schematic Design

WhatisValidationandWhatitisNot?

THE OWNER

Business CaseHowdoestheBusinessCaseinformValidation?Additionalinformationsources

Validation ResourcesWhatdoestheBudgetlooklike?WhatdoestheSchedulelooklike?

Validation TeamHowdoIselectTeamPartners?WhatTeamMemberProfilesdoIneed?Whatisfirst,TeamPartnerorTeamMemberselection?TeamLeadersWhendoIneedSupports?

Owner’s RoleWhyshouldIManagePolitics?WhatProjectsshouldIValidate?Whenisa“LeanCoach”needed?CanthosenoveltoValidationsucceed?ProcessRe-engineeringVs.ProjectValidation

Team CultureTeamBuildingIsOnboardingnecessary?

Validating the ProjectKeepyourideasopenGoslowtogofastWhatdoBigRoomSessionslooklike?WhatdoesClusterWorklooklike?WhatProjectItemsshouldIfocuson?Whatdoes“Done”looklike?

APPROVAL SOLICITATION

Approval Solicitation & DecisionWhatdoesaGodecisionimply?WhatistheValueofaNo-Go?

Validation StudyWhatistheProjectCharter?WhoownstheBudget?

APPENDIX I – VALIDATION TOOLSVALIDATING THE PROJECT

Team KickoffWhatisaBigRoomSession?WhathappensduringKickoff?

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APPENDIX II – MATERIAL SAMPLES 59

ValidationCharacteristicsTeamMemberCompetenciesKickoffContentBigRoomAgendaItems

55565758

EXECUTIVE SUMMARY

ProjectValidationaimsatprovingordisprovingwithlimitedornodesignwhethertheprojectteamcandeliveraprojectthatsatisfiestheowner’sbusinesscaseandscopewithintheowner’sallowableconstraintsofcostandscheduleandwithanacceptablelevelofrisk.Itsetsthecommitmentoftheteamtowardsachievingprojectgoalsandacceptingthesharedrisksoffailingtodoso.Validationisnotdesign:itaimsatestablishingthebasisofdesignandconceptualestimate.Validationisthetimetostayfluidandopen,collaborateandinnovate,identifyopportunities,addvalue,andbuildcertainty.Validationenablestheteamtoexploretrade-offsbetweenprojectgoals/expectationsandownerpriorities, firstmerelyseekingtoknowifthereissufficientdesignspacetosatisfyallobjectives/expectations,andifnot,identifying wheretrade-offsmustbemade.Duringvalidation,theteamexploresand reflectswithamultidisciplinarylensondifferentconceptsandoptionsformajorprojectitemsandchoosesanoptiontobuildtheconceptualestimatewithoutcommittingtothedesignofsuchanoption.Allowingthecoexistenceofmultiplesetsofoptionswithoutnecessarilysettlingononeenablestheteam,lateronduringdesignwhenadditionalinformationbecomesavailable,tomakedesigndecisionsthatensurethecumulativeimpactofsuchdecisionsandthusaddfurthervalue.Ifatalladvanced,schematicdesignislimitedtoprovidetherequiredcertainty.Validationculminatesinaninformeddecisionbytheowneronwhethertoauthorize(go)ornot(no-go)theprojectandthusaheadofthefinalresolutiontofundandbuildtheproject.Validationisexecutedwithinashortdurationandlimitedbudget.Ownersseekthe

minimumresourceinvestmentthatresultsinthecertaintyneededforaninformeddecision.Validationoffersownerswhatlikelyisthe“biggestbangforthebuck”intoday’scapitaldeliverylandscape.

Subjectmatterexpertsexpressthat,whenproperlyimplemented,validationsetstheprojectteamtowardsthegenerationofvalueandinnovationandtheimprovementofteamperformance.Validationrequirestheteamtodevelopthebasisofdesignthatmeetsthescopeofthebuiltproduct,which,atthesametime,enablestheprograms/operationsanticipatedbytheowner.Theteam’smultidisciplinaryfocusandinformeddecision-makingleadtoimprovedandinnovativesolutionsthataddprojectvalueandenabletheeliminationofwasteduringtheprojectdeliveryprocess.Additionally,validationimprovestheteam’sreliabilitytodelivertheprojectwithintheanticipatedcostandschedule.Inotherwords,itenhancespredictability,i.e.theteam’sabilitytoanticipateprojectoutcomesearly(asopposedtolate)inthedeliveryprocess.Suchabilitytoanticipatecostandscheduleoutcomesshouldberegardedasabreakthroughintheconstructionindustry,which,sinceearlyinthe20thcentury,hasbeencharacterizedbyendemiccostandscheduleoverrunsaccompaniedbydisclosuresofactualperformancelateinthedeliveryprocess.Suchlatedisclosuresmakecorrectiveactionsexpensive,inefficient,orsimplyunfeasible.

Validationresultsinawin-winsituationforboththeownerandtheteamwhethertheprojectisauthorizedornot.Whenauthorized,

theownerandtheteamcontractuallyagreetotheprojectbasedonthesharedcommitmentthatthesuccesscriterioncanbemet.Whennotauthorized,validationenablestheowner’sinformeddecisionabouttheproject.Theownercanextendvalidationinordertoincreasecertaintyfurther,increasetheallowablebudget,modifythebusinesscase,changethescope,orterminatetheprojectandthusallocatethefundsintoalternativeinvestmentsthatcanmeettheowner’sobjectives.Thevalueofvalidationrestsinestablishingcertaintyandenablinganinformeddecision,whateverthedecisionis,onbehalfoftheownerandtheteamatafractionoftheexpenditurethantraditionaldesignandestimatingapproachesrequire.Organizationswithvalidationexpertiseregarditasacompetitiveadvantage.

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WhatisthePurposeofthisGuide?Projectvalidationisrarelyleveraged,andwhenitis,teamsdifferonwhatvalidationentails.Asaresultofitsnovelty,validationisnotdescribedbytheliterature.ThisGuideistheresultofaprimaryresearcheffortbytheLeanConstructionInstitute(LCI)todocumentvalidationandprovideguidancetopractitioners.

DuringthepreparationofthisGuide,theauthorshaveobservedconfusionamongconstructionpractitionersastowhatvalidationisandhowitshouldbeexecuted.Thus,thisGuideaimsatprovidingdirection,education,andresourcesthatcanassistpractitionersthroughthemultipledecisionsthattheywillhavetomakewhenconsidering,planning,andimplementingvalidation.ThisGuideiswrittenwiththeintentiontoprovideanunambiguousvalidationframeworkwhilestillleavingroomforvariationduringitsplanningandimplementation.

PREFACE (how to use this Guide?)

HowwasitProduced?Datawerecollectedthroughopen-endedphoneinterviewswitheightsubjectmatterexperts.Expertsaveraged19yearsofdesignandconstructionexperienceand10.5yearsofleanconstructionexperience.Duringtheinterviews,eachexpertwasrequestedtoselectoneremarkableprojectvalidationeffortasaresult,forexample,ofscale,cost,schedule,complexity,orsuccess.Withinthecontextofsuchproject,eachexpertsharedvalidationaspectssuchasinformationinputsandoutputs,teamandculture,validationsteps,orapprovalsolicitation.Table1illustratesthedescriptivestatisticsofthesampleofprojects.Inaddition,expertswerealsorequestedtosharedlessonslearnedgainedthroughtheircumulativevalidationexperience.Aftereachinterview,additionalquestionswerecommunicatedandrespondedviaemail.Interviewtranscriptsandtheadditionalinformationwereanalyzedandresultsproduced.WhilethescopeofthisGuideisinclusiveofperformancecriteriarelatedtoprogram/operations,quality,schedule,andcosts,itreflectsaprevalentfocusoncostasexpressedbysubjectmatterexperts.Resultsfromtheinterviewswerecomplementedwiththeauthors’observationsatvalidationsessions.

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HowtoPrintthisGuide?ThisGuidewasdigitallyproduced.Forbestresults,printin17inx11inpaperformat.

HowisitOrganized?ThisGuideisorganizedinfourdifferentchaptersandtwoappendices.Thechapterscoverfundamentalsofvalidation;theowner;validationprocess;andapprovalsolicitation.Thefirsttwochaptersdiscussfundamentalconceptsandtheowner’srole,whilethelatterchaptersdetailthevalidationprocessandoutcomes.TheappendicesincludethesummaryofvalidationtoolsinthisGuideandmaterialscollectedfromeffectivevalidationefforts.MostreaderswillbenefitfromreadingtheGuidefrombeginningtoend.Othersmayneedspecificinformationormaychoosetoreviewcertainchaptersortheirsections.

WhataretheQuotes?Quotesaimatenlighteningandeducatingthereaderthroughthethoughts,experiences,andrecommendationsfromsubjectmatterexperts.Quoteswereextracteddirectlyfromtheinterviewsandinthistextappeardelimitedbetweenquotationmarks.

DescriptiveStatistics

InvestmentSource Private=8Public=None

ProjectSector Healthcare=6Manufacturing=1Biotechnology=1

ExpertAffiliation Owner=5DesignandConstruction=3

TotalInstalledCosts(TIC) Maximum=$309millionMinimum=$60millionAverage=$183.8million

ProjectCompletionTime Maximum=60monthsMinimum=14monthsAverage=36.3months

ValidationCosts(%ofTIC) Maximum=1.67%Minimum=0.19%Average=0.54%

ValidationSchedule Maximum=27weeksMinimum=9weeksAverage=16.9weeks

Table1.ProjectSample

PREFACE 8

WHAT IS VALIDATION?ValidationProjectvalidationaimsatprovingordisprovingwithlimitedornodesignwhethertheprojectteamcandeliveraprojectthatsatisfiestheowner’sbusinesscaseandscopewithintheowner’sallowableconstraintsofcostandscheduleandwithanacceptablelevelofrisk.Itsetsthecommitmentoftheteamtowardsachievingprojectgoalsandacceptingthesharedrisksoffailingtodoso.Validationisideallyexecutedwithinashortduration,limitedbudget,andnodesign.Validationculminatesinaninformeddecisionbytheowneronwhethertoauthorize(go)ornot(no-go)theprojectandthusaheadoftheeventualresolutiontofundandbuildtheproject.Thevalueofvalidationrestsinestablishingcertaintyandenablinganinformeddecision,whateverthedecisionis,onbehalfoftheownerandtheteam.

“Imean,certainty.Sothat's,Ithink,thekeypowerindoing

validation.It'snotjustknowing.It'sknowingwhethertheprojectisgoingtohappen”

WhatisValidationandWhatitisNot?

Wehaveobservedconfusionamongpractitionersastowhatvalidationisandwhatitisnot.Atthetimeofthispublication,projectvalidationisrarelyleveraged,andwhenitis,teamsoftendifferonwhatvalidationshouldentail.Indeed,someteamssupposedlyengageinprojectvalidationwhileinrealitythey“simplydowhattheyhavealwaysdoneandcallitsomethingdifferent[validation].”Thus,inordertofacilitatearesponsetotheabovequestion,Table2illustratesthecharacteristicsinherenttovalidation.NotmeetingthecharacteristicsinTable2isanindicationthattheso-called“validation”islikelybeingshort-circuitedinonewayoranother.Forexample,thelackofaneffectivegoorno-godecisionnegatesthepossibilityoftheprojectbeingstoppedanddeniestheessenceofvalidation.Also,evidenceshowsthatfailingtoallocatecostandscheduleresourcesinsupportofvalidationforcesteamstoeludevalidationandengageintraditionaldesignandestimating.

11

“Invalidation,ifyoudon'tspendenoughtimeupfrontfiguringouthowdoyouwanttoworktogetherandwhatisityou

reallywanttoachieve,youwillsimplydowhatyou'vealwaysdoneandcallitsomething

different”

“CoSwereessentiallywhatmatteredtotheownercombinedwithwhatmatteredtotheteam”

Validation and Integrated Project DeliveryIntegratedProjectDelivery(IPD)isateam-drivendeliveryapproachthataimsatenhancingperformance,innovation,andvalue.IPDischaracterizedbytheearlyinvolvementofteammembers,sharedrisksandrewardsbasedonperformance,jointprojectmanagement,liabilityreduction,andjointdevelopmentofConditionsofSatisfaction(CoS).IPDdemandsarelationalcontractingapproachthatalignsprojectgoalswiththeteam-drivendeliveryapproach.Duringdesignandconstruction,theteamoperationalizesthedeliverythroughleanprocessesandtechniquessuchasValueStreamMapping,LastPlanner™System,TargetValueDelivery,orproductionmonitoringandcontrols.

WhatareConditionsofSatisfaction?

CoS areanexplicitdescriptionbytheownerandteamstatingallprimaryrequirementsthatmustbesatisfiedtodeemtheprojectoutcomesassuccessful.CoS includeownerpriorities(e.g.scope,budget,schedule)andoftenincludeadditionalconditionsbytheteam.

ValidationCharacteristics Yes NoFollowstheBusinessCase q q

CulminatesinaDecisiononWhetherorNottoAuthorizetheProject q q

HasadedicatedBudget&Schedule q q

HasadedicatedTeamofExperts q q

DesignisOmittedor,atmost,Limited q q

Table2.IdentificationofValidation

WhatistheIntegratedFormofAgreement?

TheIntegratedFormofAgreement(IFOA)isapoly-partyorrelationalagreementthatincludes,ataminimum,theowner,designprofessional(s),andcontractor(s)assignatoriestothesameconstructioncontract.SelectedCoS areincorporatedintothepoly-partyagreementasmeasuresofprojectsuccessandareoftenrolled

HowdoesValidationsupportIPD?

ItsfocusandteamapproachmakevalidationthenaturalpredecessorofIPD.ValidationandIPDsharetheirteam-driven,collaborative,andrisk-sharingcharacteristics.Validationresultsinthesharedcommitmentthattheprojectsuccesscriterioncanbemet,andanticipatesandnurturestheteamknowledge,behaviors,andskillscharacteristicofIPD.Also,whilevalidationaimsatprovingordisprovingwhethertheprojectteamshoulddelivertheproject,IPDaimsatdeliveringtheproject.ValidationisideallyexecutedasthebasisforthecommercialtermsoftheIFOAcontract.Validationinformsthepoly-partyagreementofsharedrisksandrewards.OncevalidationisoverthevalidationteamtransitionsatthecoreoftheIPDteam.

intotheincentivecompensationprogram.Suchcompensationprogramdeterminestheportionoftheincentivepoolthatissharedbyeachteampartnerorganizationeitherasaloss(risk)orprofit(reward).

WHATISVALIDATION?/VALIDATION 12 13

DoesthisGuidefocusontheValidationofIPDProjects?

DuringthepreparationofthisGuide,wedocumentedaprevalentcombinationofvalidationandIPD.Indeed,IPDwascharacteristicofallsampledprojectsbutone,whichwasdeliveredwithan“IPD-like”approach.Thus,thistextprovidesguidanceforthevalidationofIPDprojects.

CanIValidatenon-IPDProjects?

Wehavefoundanecdotalevidencethatvalidationcanbeeventuallyusedinnon-IPDprojects.Forexample,validationcanbe

For more information about IPD, see:

R.Cheng,M.Allison,H.Ashcraft,S.Klawans,andJ.Pease(2018).IntegratedProjectDelivery– AnActionGuideforLeaders. UniversityofWashington,Seattle,WA,USA.Available:<http://cm.be.uw.edu/wp-content/uploads/sites/29/2018/06/Pankow_IPDGuide.pdf>

R.Cheng,andA. Johnson(2016).MotivationandMeans:HowandWhyIPDandLeanLeadtoSuccess. LeanConstructionInstituteandIntegratedProjectDeliveryAlliance,Arlington,VA,USA.Available:<https://www.leanconstruction.org/wp-content/uploads/2016/02/MotivationMeans_IPDA_LCI_Report.pdf>

For more information about how to define CoS, see:

M.Fischer,H.Ashcraft,D.Read,andA.Khanzode(2017).“ManagingwithMetrics”(chapter11)and“CollaboratinginanIntegratedProject”(chapter13,particularlysection13.4)inIntegratingProjectDelivery (Hoboken,NJ:Wiley,2017).

Validationfollowsthedevelopmentoftheowner’sbusinesscaseandprecedesthecontractualagreementtodesignandbuildtheproject.Thebusinesscasejustifieswhytheownerwantstobuildabuilding/facility.Itestablishestheownerprioritiessuchasscopeandprogrammatic/operationalfunctionsthattheprojectistoenableandtheallowablecostandschedule.Indoingso,thebusinesscaseinformsvalidation.Complementarily,validationprecedesandinformstheresolutionbytheowneronwhetherornottoauthorizeandfundtheproject.Validationengagestheprojectteamintheanalysisofthegapbetweenprojectobjectives/expectationsandownerpriorities.Whenauthorized,validationinformsthecontractualagreement,design,andconstruction.TheValidationStudyorsimilardeliverablefromvalidationbecomesatouchstoneforthedurationoftheproject.

When is Validation Performed?Initsleanestapproach,validationsetsthebasisofdesignandconceptualestimate—i.e.withouttraditionaldesign,whichonlystartsoncevalidationhasbeencompletedandtheprojectauthorized.SeeFigure1.Inanalternativeapproach,though,theownercanrequiretheteamtoadvanceschematicdesignduringvalidation.SeeFigure2.Commonly,suchapproachaimsateitherreducingprojectcompletiontimewhenanexpectationexiststhattheprojectwillbeauthorizedoraimsatfurtherincreasingcertainty.Insuchcase,schematicdesignislimitedtoattaintherequiredlevelofcertainty.However,thereaderwantstonoticethatthereisnothingnewinreducinguncertaintyandincreasingprojectperformancepredictabilitythroughdesign.

Figure1.ValidationintheDeliveryProcess

Businesscase Validation

SchematicDesign

DetailedDesign Execution

Figure2.ConcurrentValidationandSchematicDesign

Businesscase

Validation&Schematic

Design DetailedDesign Execution

WHATISVALIDATION?/VALIDATION 14 15

usedasstand-aloneconsultationorincombinationwithotherdeliverymethods,e.g.design-build.Also,apublicagencymayperformvalidationpriortothesolicitationofdesignservices.Otherimplementationapproachesarelikelytoexist.

“So,theteamdiscussedthreedifferentstructuralsystemsthatwerepossibilities.And

theyendedupinthevalidationandoneoftheminthevalidationestimate.Idon'tknownecessarilythatiswhatendedupintheproject,butthat'swhatwasinvalidation”

Basis of Design vs. Schematic Design Subjectmatterexpertsagreethatsettingthebasisofdesignissufficientforthegenerationofestimatesduringvalidation;thus,traditionalschematicdesignisnotnecessary.However,asdetailedintheprevioussection,wehavefoundevidenceofteamsadvancingschematicdesignduringvalidation.Inordertoreduceuncertaintyand/orthegapbetweenexpectedcostandowner'sallowablecost,arecommendationcanbemadetoproceedwithdesignandextendvalidation.Also,wefoundevidenceofownerorganizationswithamaturevalidationprocessthatroutinelyadvanceschematicdesigninordertoreduceprojectcompletiontime.

Whatevertheapproach,traditionaldesignisnotanaimofvalidation.Itcanunnecessarilyextendthevalidationtimelineandforcedesigndecisionsthatlimittheabilityoftheteamto,lateronwhenadditionalinformationbecomesavailable,enhancevalue.Table3illustrateskeydifferencesbetweenthedevelopmentofthe

“Becausevalidationisspittingoutasmuch

informationasyouknowrelativetothescopeand

conditionsofsatisfaction.Andputtingtogetheralevel

quality,andtime,andcosttothat.Thereisn'treallyapointinwhichyou'redesigningor

detailinganything”

“Thereweresketchesofplans,layouts,whatitcouldlooklike.Therewassketchesofwhattheexteriorcouldlooklike,whataninteriorlobbymightlooklike.Someexamplesofsystemsthatwemightuse:structural,

plumbing,specificationsofanyofthesystemstoinformallevelquality.Andthatwouldbeourbasisofdesign,pluscost

information”

basisofdesignandthedevelopmentofschematicdesignduringvalidation.Thereaderwantstonoticethataconceptualestimatingcompetency,i.e.theabilitytoaccuratelyestimatecostswithminimalornodesigninformation,amongteammembersisnecessaryineitherofthetwodesignapproaches.

ValidationFactor BasisofDesign SchematicDesignProjectAuthorizationExpectation HighorLow High

Uncertainty HighorLow High

AbilitytoExplore,Innovate,andAddValue Higher Lower

Costs(as%ofTotalInstalledCosts)(*) ≳0.2&≲1.75% ≳2%&≲4%

TimetoAuthorizationDecision(*) by1/2or1/3 by2or3

ConceptualEstimatingCompetency Required Required

Table3.BasisofDesignvs.SchematicDesign

(*)Valuesbasedonsampledprojects

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For more information about Conceptual Estimating, see:

G.BallardandA.Pennanen (2013).ConceptualEstimatingandTargetCosting. In:,Formoso,C.T.&Tzortzopoulos,P.,21thAnnualConferenceoftheInternationalGroupforLeanConstruction.Fortaleza,Brazil,31-2Aug2013.pp217-226Available:<http://iglc.net/Papers/Details/872 >

Benefits

EnhancedValueandInnovation.Validationenablesthegenerationofvaluetotheownerandteamandthereductionofwasteduringtheprojectdeliveryprocess.Themultidisciplinaryandcollaborativeworkduringthedevelopmentofthebasisofdesignenablestheteamtoexploreandreflectondesignandconstructionoptions,risks,andopportunities.Validationoftenresultsinbetterormoreinnovativecomponentsorsolutions.Validationteamsreflectnotonlyonwhatitemisneededbutalsoonwhysuchanitemisrequired.Fortheteamanditspartnerorganizations,whenaprojectisauthorizedthecombinationofvalidationandIPDoffersmany

WhyshouldIValidate?Validationresultsinawin-winsituationwhethertheprojectisauthorizedornotforboththeownerandtheteam,andeventuallyforallotherstakeholderswhotouchoraretouchedbythelifeoftheprojectoritsproducts,suchasusers,regulatoryandpermittingagencies,orneighbors.Specificbenefitsarediscussedinthissection.

ContinuousLearningandAlignment.Validationsetsthesoftskillsanddynamicswithintheteam.Inadditiontothegenerationofprojectknowledge,itoffersmultiplebenefitstotheteamsuchasalignment,cohesivebehaviors,clearcommunicationandinformation,establishingonboardingprotocols,orestablishingaleancultureofcontinuouslearning.Indoingso,validationanticipatesandnurturestheknowledgeandculturethatwilleventuallysupporttheteamduringdesignandconstruction.

BusinessCaseEvidence.Validationconfirms,modifies,ordeniestheowner’sbusinesscase.Validationinformsthebusinesscaseandcanresultinitsiterationandimprovement.Thus,theownermaydecidetorevisethebusinesscaseand/orscopeinordertoreduceprojectcostsbelowtheallowablebudget.Also,validationcanuncoveropportunities.Theownercanincreasetheprojectscopeforamarginalcostoreliminateanaspect/componentthataddsanunreasonablecostorcomplexity.Whenvalidationexposesthatownerprioritiescannotbemet(no-go),itavoidstheownerandteamtoinvestinaprojectthatwouldlikelyresultinalossandcoulddamagethereputationofthepartnerorganizationsintheteam.

benefits,suchasimprovedresourcemanagement,reducedcostofpursuit,reworkreduction,and bettermargins.

CostandSchedulePredictability.Validationenhancestheabilitytoanticipateteamperformanceandprojectoutcomes.SubjectmatterexpertsexpressthatthecombinationofvalidationandIPDvirtuallyeliminatescostandscheduleoverruns.Conceptualestimatingisanecessarycompetencyamongteammembersinordertorealizeaccurateprojectoutcomepredictionswithlimitedornodesign.

“We[designers]donotneedtoguesssincethebasisofdesign

becomesveryclear”

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ScopeDefinition.Thevalidationteamdevelopsthebasisofdesignthatmeetsthescopeofthebuiltproduct(building/facility),which,atthesametime,enablestheprogram/operationsanticipatedbytheowner.Thus,thevalidationteamanalyzestheconsistencybetweenbuiltproductandprograms/operationssothatitcanidentifyandresolvediscrepanciesorissues.Byfocusingonclarity,validatedprojectsoftenavoidscopechangesduringdesignandconstruction,and,whentheseoccur,theyaretypicallydrivenbytheowner’sdecisiontorevisethebusinesscase.

“Soduringvalidationthetaskwastoanswerthequestion,canwebuildthisprogramforthismuchmoneyandgetitopenedonthisdate?Canwedothat?

Andthatwaswhatthevalidationprocesswasall

about.Andtheteamknewthatiftheprojectgotapprovedthattheywouldbecollectivelyatriskforachievingit.Theywerealignedbecausetheyknewwhatthebusinessdealwouldbeiftheprojectgotapproved““Throughvalidationwehave

shownsomerealmovementongettingwasteoutofwhat'sinherentcurrentlyinthetraditionalapproachto

construction”

StreamlinedDesign.Bysettingthebasisofdesign,validationreducesinformationloopsduringdesign.Designersexpressthattheydonotneedtomakeassumptionsduringthedesignprocesssincetheteamevaluatesmultipleoptionsforeachmajorprojectitem.Thiscomparativeinformationsetsthebasisofdesign.Evenwhenalternativesareleftforanalysisduringdesign,designersstatethattheycanobtainrapidfeedbackfromteammemberssinceteamalignment,dynamics,andcommunicationhavebeenalreadyestablishedduringvalidation.

“Cantheowneraffordit?Doestheownerneedtomakebig

adjustments?Butit'salsotheteamunderstandingwhereeverybodyisandwhattheirinterpretationofthescopeis.Normallyinaproject,youdon'tfigurethatoutuntillateron”

THE OWNEROwner’s Role

Theownershouldcarefullyanalyzewhetheritshouldengageinvalidation.InthesamemannerthatIPDmaynotbeappropriateforeveryprojectorownersinceitsteam-drivenandrisk-sharingcharacteristicsinherentlyrequiregreaterleadershipandeffort,validationmaynotalwaysbeappropriate.

Duringvalidation,theownermustactivelysetarolemodel.Itshouldsetgoalsandpriorities,provideleadership,andmodeltransparencyandcollaborationtotherestofmembersandpartnerorganizationsintheteam.Althoughtheseattributesapplytotheentireteam,theyareespeciallyimportantintheownerrepresentativesanditsleader(s)withintheteam.Also,validationrequiresthesupportfromowner'suppermanagement.Withoutsuchsupport,validationislikelytofail,forexampleduetolackofresources.

WhatProjectsshouldIValidate?Thelargertheuncertaintyandrisk,themoretheneedforvalidation.Validationrequiresadedicatedteamandthecorrespondingbudgettosupportit.Theinvestmentinthoseresourcesdemandsjustificationandoftenresultsintheownersettingbasicrulestodeterminewhetherornotvalidationneedstobeperformed.Notallprojectsjustifyvalidation.

Thus,wedocumentedownerorganizationsthatrequirethevalidationofaprojectonlywhenitsexpectedcostsexceedaminimumdollarvalue.Ownersobservebothexceedingsuchcostvalueasanindicationofincreaseduncertaintyandrisksandprojectvalidationasthemechanismtoprovideclarity.Sourcesofuncertaintyvarywidelyamongprojects,owners,andindustrysectors.Forexample,intheresidentialsector,themarketbehaviorbecomesacriticalcontributortouncertainty.Similarly,indownstreamoilandgascapitalinvestmentcostscanbeaccuratelypredicted,whileglobalmarketfluctuationssetwhetherornotthereisabusinesscasefortheinvestment.Projectswithforeseeablecostsdonotrequirevalidation.

WhyshouldIManagePolitics?Whenpoliticalaspects(e.g.permitting,entitlements,publicfunds)exist,theownershouldactivelymanagethem.Notdoingsocaneasilyjeopardizetheteam’sassessmentofcertaintyandrisks.Thus,theownermustproactivelyaddresspoliticsandkeeptheteamupdatedonprogressandexpectedoutcomessothattheteamcanincorporatesuchinformationintovalidation.

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Validation and Integrated Project DeliveryWhenisa“LeanCoach”needed?Theownermusthaverepresentationinthe

teamthatiscompetentinthedesign,planning,andexecutionaspectsoftheproject.Ideally,the

ownerrepresentativesarealsoexperiencedinvalidation,IPD,andlean.However,owner

organizationsnoveltovalidationcanengagea“leancoach”orsimilarexperttohelpestablish

afoundationofknowledgewithintheteamandoperationalizeleanthinkingintoaction,for

instancesettingthebigroomenvironmentandactivities.Thecoachshouldnotbealeader,but

afacilitator.Careshouldbeexercisedtoselectacoachwithatrueleanmindsetasopposedto

old-fashioncoacheswho,forexample,maytendto“defend”theowner.Suchnon-

collaborativebehaviorwouldsendthewrongmessagetoteammemberswho,forexample,

couldneedlesslyincreasepricingtooffsetperceivedrisks.Also,acoachintervention

shouldbecarefullyplannedandmeasured.Wehaveobservedthatnoteverycoachproducesa

meaningfulimpact.

“Wehadaleancoachthathelpedusestablishabigroom

environment,andhelpedwithbehaviorsusingmanyofour

currentleantoolstohelpimprovecollaborationandcommunication”

Asanalternative,theownercanbringtherequiredexpertisethroughexperiencedteam

members,forinstanceintheroleofteamco-leaders.Whenappointed,co-leadersrepresent

oneormorecorepartnersintheteam,suchasthearchitect,generalcontractor,ortradecontractors.

CanthosenoveltoValidationsucceed?

Wehavedocumentedinstancesofsuccessful

validationforcomplexprojectsbyteamswithoutpriorvalidationexperience.However,

wehavealsoobservedthatthosenoveltovalidationoftenfeelcompelledtoengagein

traditionaldesigninordertogenerateinformationthatincreasescertainty.Themore

thedesignisdeveloped,thegreatertheknowledgeabouttheprojectandthusthe

higherthecertaintyare.However,thereisnothingnewinreducinguncertaintyand

increasingpredictabilitythroughdesign.Withproperguidance—i.e.coachorteampartner,

projectvalidationwithminimalornodesignispossiblebythosenoveltovalidation.

Inanycase,whentheownerlacksexperienceoraccesstoexperiencedpartners,itshould

considertestingvalidationinlow-riskprojects.Acontrolledandexperimentalenvironment

willfacilitatethelearningandculturalshiftthatthedevelopmentofvalidationexpertise

requires.IPD-experiencedownersmayonlyneedthedevelopmentofvalidation-specific

skillssinceitsteam-drivenandrisk-sharingcharacteristicsarethoseofIPD.

ProcessRe-engineeringvs.ProjectValidation

Processre-engineeringisanowner-driven

effortaimingattheimprovementofthefunctions,programs,oroperationsthatthe

builtproductistoenable.Itaimsatimprovingperformancemeasuressuchascost,quality,

service,ortime.Itbreaksdownprocessesintotasks,whicharestreamlinedbasedonthe

analysisoftheirrequirements,suchaspeople,information,technologies,materials,toolsand

equipment,orspace.Processre-engineering,whichissometimesreferredtoasfunctional

designorprocesschangemanagement,isnotwithinthescopeofvalidation.Validation

centersthefocusoftheteamonthebuiltproduct,e.g.buildingorfacility.

However,evidenceindicatesthataconcurrent

owner’sfocusonprocessre-engineeringresultsinasynergisticinteractionand

exchangeofinformationwiththevalidationteamthatfurtherenhancesvalidation,adds

value,anddrivesinnovation.Forexample,workflowanalysisrequirestheconsideration

ofbothprocessconstraintsandthebuilding/facilityrequirementsandlayoutthat

enablesuchprocess.Thus,processre-engineeringresultsinvaluableinformation

thatthevalidationteamcanincorporateintothebasisofdesign,andvice-versa.

Suchtypeofdialogueoftenresultsinnotableimprovementsinfacility/buildingdesign,

workflows,services,speed,orcosts.Inordertoenlightenthereader,twoexamplesfollow.A

combinationofvalidationandprocessre-engineeringeffortsforanewhealthcarefacility

resultedinthereductionofsquarefootagewhilemaintainingtheprogrammaticfunctions

andqualityofservicestopatients.Thedialoguebetweenprocessre-engineeringandvalidation

teamssparkedthenegotiationofdailyreplenishmentofinventorieswithsuppliers

andthusledtoasubstantialreductionofinventoryspace.Inanotherhealthcareproject,

adecisionwasmadetochangethelocationofawaterfixtureinthepatientroomsdespitethe

increaseinconstructioncosts.Thus,thedialoguebetweenthetwoteamsledtoan

informeddecisiontoprioritizelong-termoperationworkflowsandcostsdespite

increasedupfrontcosts.

“Largeprojectstypicallyalwayshavesomepoliticaldimensiontothem,andtovalidatealargeproject

withoutaclearplanofhowtomanagethepoliticalsphereis

notsmart”

For more information about Process Re-engineering and full-scale mock-ups, see:

U.Nanda,Z.Rybkowski,S.Pati,and&A.Nejati,A.(2017).AValueAnalysisofLeanProcessesinTargetValueDesignandIntegratedProjectDelivery:StakeholderPerception.HERD:HealthEnvironmentsResearch&DesignJournal,10(3),99–115.

THEOWNER/OWNER’SROLE 22 23

Thebusinesscasejustifiestheprojectinvestmentbymeetingowner’sneedsrelatedtomarket,finances,orregulatoryandcompliancerequirements.Wehavedocumentedlargedifferencesinthelevelofbusinesscasedetailrangingfromhighlystructuredanddocumentedtoverysuccinctyetinformative.

Business Case

HowdoestheBusinessCaseinformValidation?

Theowner’sbusinesscaseisoftentranslatedintoamemorandumorsimilardocumentthatdescribestheowner’sprioritiesinclusiveofscope,andallowablebudgetandschedule.Thebusinesscasejustifiestheprojectsothattheteamcanfocusnotonlyontheproduct“Whatdowewanttobuild?”butalsoontheowner’smotivation“Whydowewanttobuildit?”.Theallowablecostistheowner’smaximuminvestmentandsetsthemaximumcostthattheprojectteamshouldcommittoiftheprojectistobeauthorized.Duringkickoff,owneruppermanagerscommunicateprioritiestothevalidationteam.Iftheownerdecidestorevisethebusinesscase,thentheparametersinformingvalidationmustbeupdatedandcommunicated.

“Youhavethebusinesscase.Oncethat'sdone,thenwesetthegoalsforthecost,timing,andscopefor

theprojectteam”

25

“It'severythingthatyouwouldnormallywanttofindoutwhichis,youwantsoilsreports,youwanttoknow

thatyou'vegotroomtoturnafiretruckaround,youwanttoknowthatyouunderstandhowyou'regoingtoanchorthefoundation.Youknowwhatkindofstructural

systemyou'regoingtouse.You'vegottoknowwhereallyourheavyitemsareinthe

building”

AdditionalinformationsourcesValidationrequiresthecollectionofdataandinformationfrommultiplesourcesinordertoproducetheconceptualestimateandbasisofdesign.Informationsourcesvarydependingontheproject,andcanincludesoilreports,siteconditions(e.g.utilities),datafromsimilarprojects/items,labormarket(e.g.laborshortage),regulatoryandcompliancerequirements,entitlements,logistics(e.g.traffic,signals,roads,parking,storage),program/operationsdata,orprojectconstraints.

“Iactuallyaskedforfundingtwiceduringvalidation.Attheendofvalidation,wefeltwewerewithinstrikingdistance,buttheteam

wantedtodosomedeeperstudiesinordertogain

furtherconfidenceandsoIrequestedadditional

funding.”

Validation ResourcesValidationmusthaveadedicatedbudget,schedule,andteamofexpertswithfull-timededication.Thebudgetcoversthefeeofeachexpertplusadditionalexpenses,suchastravel.Theowneranticipatesthedurationofvalidation,theprofilesofteammembers,andallocatesthebudget.Validationisexecutedwithinashortdurationandlimitedbudget.Alwaysseektheminimumresourceinvestmentthatresultsinthecertaintyneededforaninformeddecision.

WhatdoestheBudgetlooklike?Itvarieswithteamsizeandduration.Wehavedocumentedsuccinctvalidationeffortsextendingfrom6to10weekswithbudgetsinthelowhundredthousanddollarsforprojectsworthbetween$100millionand$200million.SeeTable1.Thedevelopmentofschematicdesignduringvalidationislikelytoincreasethebudgetabove2%oftotalinstalledcosts.

WhatdoestheSchedulelooklike?

Subjectmatterexpertsadvocateforanintensevalidationeffortthatreducesitstimetocompletion.Wehavedocumentedsuccessfulvalidationeffortsextendingfrom6weeksupto4months,andeventuallymore.SeeTable1.Thegreaterthecomplexity,size,anduncertaintyoftheprojectare,thelongerthevalidationeffortwillbe.Subjectmatterexpertswithinownerorganizationswithahistoryofvalidationeffortsreportnotablereductions(about50%)inthetimenecessarytovalidateaprojectwhencomparedtothetimeinvestedinthefirstvalidationeffortsofsimilarprojects.

27

“Wewouldstriptheprojectbacktotheabsolute

essentialsinordertomeetthebusinesscaseandthenaddeverythingelseinawishlist,sothattheteamunderstoodtotheextentthatheadroomwascreatedwithinthe

budget,thoseelementscouldbeaddedback”

Inaddition,teamsoftenleverageGembaWalkstogatherfactualinformationwhenasimilarbuilding/facilityexists—orthesamebuilding/facilityinrenovationorexpansionprojects.Theteamvisitstheexistingfacilityanddocumentsinformationrelatedtooperations,flows,layout,equipment,andworkers’&users’opinionsandfeedback.Thereal-worldcontextandinformationfromGembaWalksincreasetheteam’sconfidenceinthevalidationoutcomes.

Validation Team

“Validationrequirestherightteamofexpertsthat

continuouslylearn,innovate,drivedowncapitalcosts,shortenthedurationofconstruction,andprovidevaluebacktotheowner”

“Somecompaniesgetparalyzedattheabilitytoshowarangeof

costswithlittleornoinformation.Theycannotdoit”

HowdoIselectTeamPartners?Wehaveobservedavarietyofownerapproachestoselectteampartners.Someownershaveanongoingsetofpartnerorganizations(e.g.architects,designers,contractors,tradecontractors)andselecttheteampartnersfromsuchpool.Anothercommonapproachinvolvespre-qualificationandsolicitationofproposals.Wealsodocumentedinstancesinwhichtheownerrequirestwoormoreproposerstoenterajointventure,forexamplewhentheownerconsidersthattheaggregationofideas,skills,orresourcesisnecessarytomeetitsobjectives.Duringtheselectionprocess,ownervisitsatthefacilitiesofpotentialpartnersarecommon.

“DefineCoS,designbusinessparameters,spendthetimetogetthecommonlanguage,andgettherightpeopleintheroom”

WhatTeamMemberProfilesdoIneed?DoIhavetherightpeopleintheroom?

Disciplinesexpectedtoprovideinformationcontinuouslymustberepresentedintheteam.Ataminimum,thevalidationteamisrepresentedbyexpertsfromowner,architect,

contractor,andkeytradecontractorssuchasmechanical,civil,orelectrical.Eachpartnermustallocateoneormoreexpertsthatsecuretheestimatinganddesignexpertiseandvolumeofworkthatvalidationrequires.Forexample,wedocumentedateaminwhichaleaderandanestimatingexpertrepresentedtheowner;adesigner/estimatorrepresentedthearchitect;anestimator,planning/constructionexpert,andsuperintendent(s)representedthecontractor;and,oneormoreexpertswithdesignandestimatingcompetenciesrepresentedtheelectrical/mechanical/civilcontractors.

WhydoIneedConceptualEstimatingskills?Conceptualestimatingrespondstotheabilitytoestimatecostswithlimitedornodesignandisarequiredcompetencyamongteammembers.Conceptualestimatorsmusthavetheexperienceandskillstocontinuouslycollaborate,proposedesignconceptsandoptions,andestimateanaccuraterangeofcostsinashorttime.Acombinationofdesign(ataminimumbasicdesign)andin-depthestimatingskillsisnecessary.Besides,previousexperiencewithsimilarprojectsishighly

“Byidentifyingsomeonethatknowshowtodoconceptual

estimating.Someonethatknowshowtohavefrequent

conversationsaboutcostanddon'tjustlookatrisk;lookfor

opportunitiesandvaluegeneration”

“Wedevelopalistofthedeliverablesandpartofwhatwe'reaskingtheteamstoidentifyis,"Inordertoproduceaconceptual

estimate,whatdoyouneedinordertohavesufficientcertaintyaboutwhatyouwouldbuild,forhowmuch

andhowlong?"”

desired.Table4canbeusedasaresourcetooltoassessteamcandidatecompetencies.Withinthose,corecompetencies(whichteammembersshouldalwayshave)areindicatedwith(*).

WhendoIneedSupports?Wheninformationfromadisciplineisonlyrequiredatspecifictimes,expertsinsuchdisciplineshouldonlybeinvitedwiththeroleofsupports,i.e.whentheirinputisrequired.Typicalexamplesofsupportdisciplinesareroofing,cladding,orinteriorpartitioning.

28 29

Whatisfirst,TeamPartnerorTeamMemberselection?

Thereisnotasingleanswertothisquestion.Someownersselectwhattheyconsidertherightpartnersandwithineachpartnerthebestcandidate(s)fortheteam.Otherownersidentify,amongproposerorganizations,thebestcandidate(s);thatis,theyprioritizethepreferredcandidate(s)overtheproposals.Inanycase,teamleadersshouldinterviewcandidates,sothatselectedteammembershavethedesiredexperience,behaviors,andskills.Ownerswithasetofongoingpartnersarepronetorolloverteamsfrompreviousprojects.

TeamLeadersTheowner’sleaderwithintheteam(alternativelywiththesupportofco-leader[s]fromarchitect,contractor,ortradecontractor(s))isaccountableforthesuccessofvalidation.Teamleadersmusthaveexperiencewithsimilarprojectsandshouldbeabletocoachandfacilitateinadditiontomanagingcostandscheduleestimates.Experienceinleanconstructionandvalidationcanbeveryvaluablebutisnotindispensable.

High Low

TechnicalSkills

ConceptualEstimating(*) q q

BasicDesign(*) q q

DetailedDesign q q

Experience

SimilarProjects(*) q q

IPD q q

LeanConstruction q q

Behavior

TeamBuilding(*) q q

Commitment(*) q q

ProblemSolving(*) q q

TimeManagement(*) q q

Accountability(*) q q

Leadership q q

(*)Corecompetency

Table4.ExpertCompetencies

THEOWNER/VALIDATIONTEAM 30

For more information about Conceptual Estimating, see:

G.BallardandA.Pennanen (2013).ConceptualEstimatingandTargetCosting. In:,Formoso,C.T.&Tzortzopoulos,P.,21thAnnualConferenceoftheInternationalGroupforLeanConstruction.Fortaleza,Brazil,31-2Aug2013.pp217-226Available:<http://iglc.net/Papers/Details/872 >

` VALIDATING THE PROJECTTeam Kickoff

WhathappensduringKickoff?Thekickoffisamultiple-daybigroomsessionthatbuildsalignmentaroundculture,projectexpectations,behaviors,anddeliverytechniques.Thekickoffsessioninformstheteam,providestraining,andsetsbehaviorexpectationssothattheteamcanimmediatelystartperformingatahighlevelduringvalidation.Subjectmatterexpertsemphasizethatgainingsuchearlyalignmentandimmediatelysettingtheteamintherightdirectionarecrucialforsuccess.

Thereisnotasetofcontentsapplicabletoeverykickoff.Itvariesbasedonproject,siteconditions,teamexperience,teammembersacquaintance,andregulatoryandpermittingrequirements,amongothers.Nonetheless,

“Wehadeverybodyinthein-personkickoff,whichincludedteam-building,leadershipandcapacitydevelopment,IFOAtraining,behavioralcontracting,creating

conditionsofsatisfaction,orrulesofengagement.Reallyhigh-levelstuffsothatwewereonthesamepage”

WhatisaBigRoomSession?Abigroomsessionisaco-locatedandstructuredworkshopthatoptimizesteamalignmentandcollaboration,strengthensteamrelations,andpromotesdecision-makingandsharingofinformation.Theroomsettingfacilitatessuchteamdynamics,forexamplewithacommontable;alargescreen/monitor(orsetofmonitors)throughwhichteammemberscanshareinformation(e.g.fromtheircomputers);or,plentyofverticalwrite-onspace(e.g.whiteboards,write-onpaintedwalls,flipcharts).

Whyisitimportant?Thesheermagnitudeofcommunicationsandinformationanalysisandhandoffscoupledwiththepaceatwhichinformationissharedanddecisionsmadeduringvalidationrequireaworksettingthatenablescontinuousinteractionandcreativity.Co-locatedsessionsreducelatencyinaskingandansweringquestions;supportcollaborativeworkandinnovation;eliminatemisunderstandings,rework,orgapsinexpectations;expeditedecision-making;and,ultimately,buildalignmentandtrust.Suchalignmentandtrustbuiltamongthedisciplinesintheteamcoupledwiththecollaborativeandmultidisciplinaryexplorationofdesignconceptsandoptionsresultinaproductiveandenergizingworkenvironmentthatstimulatesteam’stalentsandcreativity.

33

Table5.KickoffContent

“Weusebehaviorsofexcellenceasastartingpoint,andthebehaviorsofexcellencewouldinclude:beresponsible,berespectful,beprofessional,

beaccountable,andbecollaborative.Really

collaborative.Andwiththatwillcomeinnovation”

“Imean,apartfromjustlikeblockingandmappingand

pricingyourproject,youshouldknowyourpathwaythrough

approvals”

“Youjustneedtobeveryclearonthedeliverablesthatyouneedtocreateduringvalidation,andwhy

eachoneisneeded”

Yes No

InformationInput

Owner’sCultureandProjectSignificance(*) q q

Owner’sPriorities(*) q q

BehaviorsofExcellence(*) q q

ProjectApprovalProcess(*) q q

Others(writedown) q q

TeamAdvancement

RelationalContracting(IFOA) q q

IPD q q

LastPlanner™ System q q

TargetValueDelivery q q

Others(writedown) q q

TeamActivities

IdentificationofValidationDeliverables(*) q q

PullPlanningValidation(*) q q

DeterminingRulesofEngagement&Communication(*) q q

DeterminingConditionsofSatisfaction(*) q q

Others(writedown) q q

InformationInputOwner’sCultureandProjectSignificance.Informsthebroadervisionandgoalsoftheowner(history,service,community,

ormarket),howtheprojectrelatestothem,and

whattheprojectaimstoaccomplish.Team

“Wehadtwohigh-levelmanagersfromtheowner

comeandtelltheroomwhywewereallthere,whytheproject

mattered,andwhatthebusinesscasewas”

“Westartedbuildinghowweweregoingtodolastplanner,andhowweweregoingtobeaccountable,andhowweweregoingtodotargetvalue.Alotofthestructurewasbuiltduringvalidation,but

implementedaftervalidation”

BehaviorsofExcellence.Expectationsofteammembers’behaviors,inclusivebutnot

limitedtoaccountability,timing,respectand

equality,diligence,andcommunicationrulesand

tools.

TeamActivitiesIdentifyDeliverables.Basedonthevalidationbudget,schedule,andproject

scope,theteamidentifiesthespecific

deliverable(s)ofvalidation(e.g.Validation

Study)andcorresponding content.

Table5groupscommonkickoffcontents

underthecategoriesofinformation,teamadvancementortraining,andteamactivities.

Corecontent,whichshouldalwaysbe

considered,isindicatedwith(*).Therestof

thissectiondetailstheinformationinputand

teamactivities.

members,andteamleadersespecially,mustgetacquaintedwiththeoverarchingprojectgoals,notsolelyfocusedonscope,cost,or

schedule.Owneruppermanagerspresentsuchinformationtotheteam.

Owner’sPriorities.Theowner’sbusinesscaseistranslatedintoamemorandumorsimilar

documentwiththepriorities.Ownerupper

managerspresentthemtotheteam.

ProjectApprovalProcess.Informsonwhatdistinctownerstakeholders(e.g.board

ofdirectors,businessdevelopment,real

estate,facilities,planning,operations)must

approvewhatelementsintheproject,and

whatneedstohappenduringtheapproval

solicitationfortheprojecttobeauthorized.It

informsaboutcontents,required

information,levelofdetail,orformatofthe

validationdeliverables.Thisisanoften

overlookedbutcrucialinformationsothat

theteamcanimmediatelyworkintheright

directionandwiththeendgoalinmind.

PullPlanValidation.Pullingfromdeliverables,theteamdeterminesthe

intermediatemilestones.Duringvalidation,theteammonitorsprogressagainsttheplan.

VALIDATINGTHEPROJECT/TEAMKICKOFF 34 35

“Spendenoughtimeupfrontdefiningyourproject's

conditionsofsatisfactionforvalidationandinvestingindevelopingthepeopleandprocesstosupportachieving

thoseobjectives”

“Well,wedidn'tknowexactlywhatitwouldbe,butwe

generallyknewwhatitwouldbe,becauseithadtobe,in

ordertomeettheconditionsofsatisfaction”

“Wespentalotoftimeduringvalidationcreatingour

constructionscheduleandpullplan.Superintendent-levelfolks

wereabletowalkoutofvalidationwithanadditionalprojectschedulethat,lateron,

theythentooktotheconstructionsite,putallthestickiesonthewall,andthat

becamethemilestonepullplan”

DetermineCoS. CoS includeownerprioritiesandadditionalconditionsbasedonthedriverswithintheteam.Table6listsexamplesofCoS. SometeamschoosetomatchCoS toownerpriorities.

ConditionsofSatisfaction Yes No

Team

Maintainbehaviorsofexcellence q q

Enhanceteamefficiency q q

CauseanIPD-novelownertoengageinfutureIPDprojects q q

Motivatetheownertorolltheteamoverafutureproject q q

Others(writedown) q q

ProjectDelivery

Meetscope q q

Meetorimprovetargetcostvalue q q

Meetorimprovetargetschedule q q

Meetorimprovesafetygoals q q

Engagelocallabor q q

Meetorimprovetheacceptablelevelofrisk q q

Obtaingreenbuildingcertification q q

Enhanceaesthetics/branding(e.g.seekfordesignaward) q q

Engageservice/operationproviders(e.g.physicians,operators) q q

Minimizetheimpactonongoingoperations q q

Engagecommunity(e.g.duringdesign) q q

Minimizetheimpactonthelocalcommunity(e.g.duringconstruction) q q

Others(writedown) q q

Operations&Maintenance

Advanceoperationsstartdate q q

Improveflows q q

Reduceenergycosts q q

Reduceoperationcosts q q

Others(writedown) q q

Table6.ExamplesofConditionsofSatisfactionDetermineRulesofEngagementandCommunication.Inconsiderationofbehaviorsofexcellenceorsimilarinformationthathasbeenpresentedtotheteam,theteamgeneratesasetofrulesofengagementandcommunicationprotocolsthatpromoteandfacilitatealignment,informationsharing,collaboration,andinnovation.Rulesofengagementalsosetthefrequencyandlogisticsforbigroomsessionsandremotemeetings,andthefile-sharingorsimilarstorageandcommunicationtool(s).

Theimportanceofsuchtoolshouldnotbeoverlooked.Itsselectionwillimpacttheteam'sabilitytoefficientlyproduceworkduringthetightvalidationschedule.Wedocumentedinstancesofvalidationteamsthathadadoptedatoolavailablethroughateampartnerwithoutassessment,andthat,lateron,reportedthatworkefficiencyandteammembersatisfactionhadbeencompromised.Ataminimum,thetool(s)should:beuser-friendly,customizable,secure,andtechnologycompatible;provideeffectivedatastorageanddatasharing;promoteefficientcollaborationandcommunicationinsidethebigroomandduringremotework;and,eventuallysatisfyallteammembers.

VALIDATINGTHEPROJECT/TEAMKICKOFF 36 37

Team Culture

“Validationislikeafirstdate.You'rejustgettingtoknow

someone.Buttherelationshipdoesn'treallygetbuiltuntil

designandconstruction.Itsetsthefirstconversationsofreallygettingtoknowthepeopleontheteamandthenthatgets

builtfromthere”

Subjectmatterexpertsunanimouslyagreethatbuildingandmaintainingtherightteamculturefromkickoffisofparamountimportance.Settingtheteamculturewillnotonlybenefitvalidationbutalso,whentheprojectisauthorized,designandconstruction.

Besidesthetechnicalskillsofeachteammember,wehaveobservedtwocorecomponentswithinteams:leanexperienceandbehaviors-oftenreferredtobysubjectmatterexpertsas“behaviorsofexcellence."SeeTable4.Ofthose,behaviorsarenecessaryforthesuccessoftheteam,whileleanexperienceandskillsaredesiredbutoftenoptional,andcanbetrained.Ontheonehand,softbehaviorsandskillsareparamounttovalidation.CoS relativetohowtheteamshouldbehaveandworktogetherarecommon.Often,teambehavioralperformanceismonitoredthroughshortsurveys(e.g.“pulsesurveys”).Whenevertheteamdeviatesfromthedesiredbehaviors,thesearereinforced.

“"So,howdoyoubuildtheabilitytocommunicateamongteam

memberseffectively?"

"Leadership...changemanagement...bruteforce...

perseverance"”

“CoSrelativetohowtheteamwouldworkasateamweremonitoredduringtheproject

withsurveys”

TeamBuildingItissaidthat"thosethatplaytogetherworktogether."Initially,teammembersoftenlackacquaintancewiththeirnewteammates.Teambuildingactivitiesgetmemberstoknoweachotherandsetthefoundationforstrongteamdynamics.Bondingtheteamtogetherwillresultinimprovednetworking,collaboration,motivation,innovation,andteamperformance.Teambuildingactivities

exposuretoleanconceptsandtechniques,evenwhenthosewillonlybeneededaftervalidation,comeswithbenefits.Suchearlyexposurehelpstoestablishaleancultureduringvalidation,andeventuallyimprovetheteamproficiencywhen,lateron,leanconceptsandskillsneedtobeimplemented.

Ontheotherhand,wehavefoundthatleanknowledgeandskillsaredesiredbutnotessential.SometeammembersmaybeexperiencedwithIPDandleanconstruction,whilesomeothersmaynotbeandthusrequiretrainingandsupport.Nonetheless,early

VALIDATINGTHEPROJECT/TEAMKICKOFF 38 39

For more information about Lean Methods, see:

Messner,J.,Leicht,R.,andBhawani,S.(2018).LeanDeploymentPlanningGuide- Version1.0.ComputerIntegratedConstructionResearchProgram,ThePennsylvaniaStateUniversity,UniversityPark,PA,USA.Available:<http://cic.psu.edu/lean>

For more information about Last PlannerTM, see:

Ballard,G.andTommelein,I.T.(2016). CurrentProcessBenchmarkfortheLastPlannerSystem. ProjectProductionSystems,UniversityofCalifornia,Berkeley.Available:<p2sl.berkeley.edu>

greatlyvaryfromteam toteam,butoftenincludeinformallunchesanddinners;attendingrecreationalevents;playingtogether(e.g.minigolfer);orsolvingproblems.

Problem-solvingexercisescanbedesignednotonlytobondtheteambutalsotosettleitsculture.Forexample,wedocumentedproblem-solvingactivitiesthatforcedmemberstogothrough,asateam,thenuancesoftheintegratedteamwork,innovation,orconceptualestimating.Indoingso,theseexercisesforceteamstograspfundamentalconceptsandrequireeachteammembertoreachouttoher/hispeers.

“Wedidmanyinformalbeernightsorsportingactivitiesandotherkindsofteam

buildingactivitiesthroughouttheentireprogram”

“Teambuildingactivitiesstartedimmediatelyand

continuedallthewaythroughthejob,justgettingpeopletogetalevelofcomfortwitheach

other”

“Someofthosewereassimpleastossingatennisballaround,andhowcouldyouinnovateonandexpedite,andhowmanyturnsyoucoulddowiththetennisballwithallteammembershittingit”

“Simplethings,thatactuallygetpeopletothinkabout,asateam,howcanyouimprovesomeofthesesortsof

fundamentalthings.Whichgetsthemintothemindsetof,youknowIhavetorelyontheseguysatsomepoint

duringthisproject,andsoIneedtobeabletoreachouttothem,andfeelcomfortable

withit”

IsOnboardingnecessary?Mostvalidationeffortsdonotoffertheopportunityforincorporatingmembersduetotheirlimitedtimetocompletion.Theentireteamstartsfromkickoff.However,thereareexceptionssuchascomplexorlargeprojectsthat

canrequirelongervalidationschedulesandlargerteams.Insuchcases,itisfundamentaltointegratenewmemberswiththeteam’sknowledge,progress,andculture.

Aproperonboardingorsimilarprotocolalignsnewmemberswiththenecessaryknowledge,skills,andbehaviorssothattheybecomeactivecollaboratorsimmediately.Thecontentofonboardingisverysimilartothatofthekickoff(seeTable5)andshouldalsoincludeareviewoftheteam’sprogresstodate.Someteamsdecidetoonboardnewmembersthroughsynchronous(inperson)orientationwhileotherteamsuseasynchronouscommunications(e.g.audiovisualrecordings)oracombinationofboth.

For more information about how to successfully Build and Manage a Team, see:

R.Cheng,M.Allison,H.Ashcraft,S.Klawans,andJ.Pease(2018).Pages41-48inIntegratedProjectDelivery– AnActionGuideforLeaders.UniversityofWashington,Seattle,WA,USA.Available:<http://cm.be.uw.edu/wp-content/uploads/sites/29/2018/06/Pankow_IPDGuide.pdf>

VALIDATINGTHEPROJECT/TEAMCULTURE 40 41

Validating the ProjectAtthecoreofvalidationliestheiterationbetweenbigroomsessionsandremoteworkbyinterdisciplinaryclustergroupsthatrapidlybuildsknowledgeandcertainty.SeeFigure3.Clustergroupsaresometimesreferredtoas"innovationteams".Wehavefoundthat,inmostvalidationefforts,remoteclusterworkextendsforaboutaweekin-betweenbigroomsessions.Forexample,weobservedthatgeographically-dispersedteamsusuallyholdabigroomsessioneveryotherweek.Eachsessionlastsmultipledays.Whenworkingremotely,theseteamsholdseveralcallsaweektomonitorprogressandidentifyandmitigateissuesthatcouldimpactwork.Inadifferentarrangementthatresultedinthesamelatencyofclusterwork,ateamwithpartnersfromthesamevicinitydecidedtoholdasingle-daybigroomsessioneveryweek.Inanotherexample,ageographically-dispersedteamworkedtogetherduringthekickoffbutremotelyfortheremainingsixweeks.Subjectmatterexpertsrecommendthatco-locatedmeetingsandperiodsofremoteclusterworkintertwine.Indoingso,clusterworksupportsthecollaborativeteaminsightsanddecisionsduringbigroomsessions,whileco-locatedsessionsmaintainalignment,provideanopportunityforreinforcingtrainingandbehaviors,andcontributetokeepingthemomentumintheteam.

“Designisreallyjustaseriesofdecisionsandtheartifactsof

thosedecisionsaretheplans.Wecanmakethenecessary

decisionswhentheyneedtobemadeinordertosupport

somethingelseandjustholdthatdesigndecisioninreserveandnotbeginproducingthedeliverableuntilweactually

needit.Thatwaywecanassurethatthecumulativeimpactofthedecisionsmakesense”

“Don'tsettleononesolutionyet.It'stooearly.Ifyoucanjustputinyourbestsolution,butdon't

saythatwhateverisinvalidationistheendproduct.There'sstillanopportunitytomakeadjustmentsastheproject

goeson”

SelectTeam

TeamKickoff

BigRoomCharrettes

InterdisciplinaryClusterWork

SolicitApproval

OnboardingofNewTeamMembers

ReduceUncertainty

Figure3.ValidationProcess

GoslowtogofastMaintainingalignmentisacornerstoneofvalidationandrequiresthefullunderstandingbyeachteammemberoftheissuesunderdiscussion.Theteamanditsleader(s)inparticularmustmakesurethatvalidationisdesignedandexecutedtopromotefullsharingandaccesstoinformationsothateveryteammemberkeepsalignedatalltimes.

“Yougotta sitinthebigroomandaskthearchitect,"Doyouunderstandtheestimate?Canyoureadit?Canyoushowme?Ifyoudonotunderstandthe

estimate,you'renotparticipatingactively

enough."Justkeepthatkindofpressureonandgettheproperalignment”

“Oneofthethingswespentalotoftimedoinginvalidationismakingsureweunderstandcustomervalue,evenifwe'vebeenhandedasetofguidingprinciplesandconditionsofsatisfaction.Justbecausetheythinkthey'vebeenclearin

expressingthat,doesn'tmeanthatwe'reconfidentthatwecanunderstandittheway

thattheyintend”

Allowingthecoexistenceofmultiplesetsofoptionswithoutnecessarilysettlingononeenablestheteam,lateronwhendesigninformationisavailable,tomakedesigndecisionsthatensurethecumulativeimpactofsuchdecisionsandthusaddfurthervalue.

Subjectmatterexpertsexpressthatcontrastingandmaintainingsuchalignmentiscritical.Thenoveltyofvalidationoftenresultsinteammembersbelievingtheyunderstandwhile,inreality,theydonot.Forexample,conceptualestimatesandvalue-generationareconceptsdifficulttograspbythosewithlessexperience.

Expertsalsoexpressthat,inordertouncovergaps,theleader(s)mustinquireandeventuallychallengeteammembers.Whensuchagapinunderstandingisidentified,theleadernurturesandguidestheteammemberbacktoalignmentwiththesupportoftheteam.Theexpertquotesinthissectionshouldhelpthereaderappreciatetheimportanceofkeepingalignmentatalltimes.

42 43

KeepyourideasopenValidationisnotdesignyet.Itisthetimetostayfluidandopen,collaborate,innovate,addvalue,andbuildcertainty.Validationenablestheteamtoexploretrade-offsbetweenprojectgoals/expectationsandownerpriorities, firstmerelyseekingtoknowifthereissufficientdesignspacetosatisfyallexpectations,andifnot,identifyingwheretrade-offsmustbemade.Duringvalidation,theteamexploresand reflectswithamultidisciplinarylensondifferentconceptsandoptionsformajorprojectitemsandchoosesanoptiontobuildtheconceptualestimatewithoutcommittingtothedesignofsuchanoption.

Table7.BigRoomAgendaItems

“Iwouldgothroughin-personorexplainthedifferent

sections,havethemdoareportinsteadofjustputtingitinabook.Becausethenit'suptotheinterpretationofwhoeverreadsit,youputalevelof

qualityinandadifferentlevelofqualitygetspriced.Itneedstobeadirectconversation.Itreallyneedstobesharedandexplainednomatterwhatitis”

WhatdoBigRoomSessionslooklike?

Theteamcollaborates,sharesinformation,makesdecisions,andcontinuouslylearns.Table7groupscommonagendaitemsinfourcategories:teamdevelopmentandculture;estimating;innovation;andplanningandcontrol.Intermsofestimating,eachmultidisciplinaryclusterwithintheteamsharesthegeneratedinformationandrequiresfeedback,input,orinformationfromtherestoftheteam.Theteamconsidersthedifferentoptionsandcostsformajorprojectitems,andeventuallychoosesanoptiontobuildthevalidationestimatewithoutnecessarilycommittingtothedesignofsuchanoption.A3reportsarecommonlyusedtodocumentanalysisanddecisionmaking.Forexample,anA3cancompareonebaselineandtwoadditionaloptionsforthesameprojectitem,listtheirdifferencesandsimilaritiesinaverysuccinctmannerthatiseasytoreadandprovideanestimateforeachoption.Indoingso,theteamnotonlydocumentstheoptioninthevalidationestimatebutalsothebasisforsuchdecisionsothat,lateron,theinformationneededtomakedesigndecisionsisaccessible.

Inadditiontothecoreworkaroundtheestimate,theteamleveragesbigroomsessionstoreinforcetraining,planandcontrol,ormanageriskandopportunities.First,teamstrainandreinforcetheirculturalaspectssuchasleanprinciplesandtechniques,behaviors,project,orapprovalprocess.

Second,theteammonitorsprogressbasedonthepullplanthatwasgeneratedduringkickoffandplansfortheimmediateworkitemsanddeliverablestobeaccomplishedinthelapseoftimebetweenbigroomsessions.Finally,theteamadvancesandupdatestheinnovationlog,whichcapturesrisksandopportunities.Theteamshouldimmediatelystartbuildingthelogfromkickoffandcontinuouslyupdateitafterthat.Basedontherisklog,theteamalsobuildsandmonitorstheriskregister(e.g.riskitemswithcorrespondingcostsandtheirprobabilityofoccurrence).BoththeinnovationlogandriskregisterwillbeincorporatedintheValidationStudy(orsimilarreport)andevaluatedduringapprovalsolicitation.Iftheprojectisapproved,theteamcontinuestoupdatetheinnovationlog,whichisleveragedduringdesignandexecution.Thus,opportunitiesresultinthegenerationofvalueduringplanninganddesign.

BigRoomAgendaItems Yes NoDevelopmentandCulture

Owner’sCulture q q

BehaviorsofExcellence q q

Owner’sProjectApprovalProcess q q

RelationalContracting(IFOA) q q

IPD q q

LastPlanner™ System q q

TargetValueDelivery q q

Others(writedown) q q

Estimating

Refreshment(e.g.ownergoals,project,CoS) q q

Presentationofworkbyclustergroups q q

Requestsforinformation q q

A3analysisanddecisionmaking q q

Others(writedown) q q

Innovation

Identificationofrisksandopportunities q q

Assessmentofrisksandopportunities q q

Mitigationofrisks q q

Updateoftheriskregister q q

Others(writedown) q q

PlanningandControl

Monitorvalidationprogressagainstplan q q

Definethenextvalidationgoalsandtasks q q

Revise/detailupcomingmeetinglogistics&agendas q q

Others(writedown) q q

WhatdoesClusterWorklooklike?Clusterworkisatthecoreofvalidation.Itofferstheopportunityforinnovationandvaluegenerationduringthedevelopmentofthebasisofdesign.Withamultidisciplinaryapproach,

clusterworkbreaksdowndisciplinesilosandofferstheopportunitytoexplore,compare,andproposeinnovativedesignideascollaboratively.Itsmultidisciplinaryandcollaborativefocusenablesthegenerationofcreative,well-documented,andrealistic

“Spendthetimedevelopingthatcommunicationbeforeyou

spendtoomuchtimedesigningthingsthatpeopledon't

understand”

VALIDATINGTHEPROJECT/VALIDATINGTHEPROJECT 44 45

“Ifteammembershaveanyquestions,it'sbetteryoujustsit

downandtalkaboutit”

“Itwasacombinationofteameffortandindividualeffort.Wewouldgothroughthedifferentscopesofwork,anddivideit,andhavesub-meetings,andthenbringtheinformation

back”

WhatProjectItemsshouldIfocuson?

Theteammustsetrulestoidentifywhatprojectitemswillbeanalyzedduringvalidation.Commonly,aminimumdollarvalueisset.Suchminimumdollarvalueenablestheteamtofocusonthoseitemsthatcanpotentiallyhaveanimpactonthecostand/orscheduleoftheproject.Wehaveobservedthatforprojectsworthbetween$100millionand$200millionsuchminimumdollarvaluecanrangebetween$200Kand$400K.

Whatdoes“Done”looklike?Wehavedocumentedtwomainreasonsfora“done”decision.Eithertheteamwillsolicittheowner’sapprovalortheteamdecidestoterminatevalidationsinceevidenceindicatesthattheprojectcannotbedeliveredwithinthe

“Webrokethebudgetbetweenclustersandtheyworkedontheirownpricing,andthenwewouldcometogether[intheBigRoom]andfigureitout”

“Focusontheitemsthatmovetheneedle”

“Avoidfallingintorabbittrails”

Ontheotherhand,subjectmatterexpertssharethataprojectlikelytoresultinano-godecisiondoesnotnecessarilymakeittoapprovalsolicitation.Often,theownerleadswithintheteamwilldecidetocancelvalidationonceevidenceexiststhattheprojectcannotmeettheownerconstraints.Indoingso,validationcostsarereducedandteammemberscanmovetootherendeavors.However,thesameexpertsexpressthatanabilitytoanticipateano-gorequiresacombinationofvalidationexperienceandknowledgeaboutthedecision-makingprocesswithintheowner.

ownerconstraints.Ontheonehand,theprojectistobesolicitedforapprovalwhenallteammembersarewillingtocommittothedeliveryoftheprojectunderspecificconditionsofsuccess(inclusiveoftargetcostandschedule)andtheteamcanjustifythatsuchcommitmentshouldgettheapprovalfromtheowner.

designoptions.A3reportsareoftenleveragedtodocumentandcomparedesignoptions.Duringbigroomsessions,theentireteamreviewstheoutcomesofclusterworkandeventuallyrecommendsadesignoptiontobuildthevalidationestimate.Expertsobservethatthiscombinationofclusterandteamworkresultsinanagreeduponbasisofdesignthat,laterindesign,minimizesinformationloopsanddesignchanges.Clusterworkoftenbecomesconciseandspecificasvalidationadvancesandprojectknowledgeisbuilt.Theagendaofclusterworkissetduringbigroomsessions.

For more information about Lean Methods, see:

Messner,J.,Leicht,R.,andBhawani,S.(2018).LeanDeploymentPlanningGuide- Version1.0.ComputerIntegratedConstructionResearchProgram,ThePennsylvaniaStateUniversity,UniversityPark,PA,USA.Available:<http://cic.psu.edu/lean>

VALIDATINGTHEPROJECT/VALIDATINGTHEPROJECT 46 47

For more information about Last PlannerTM, see:

Ballard,G.andTommelein,I.T.(2016). CurrentProcessBenchmarkfortheLastPlannerSystem. ProjectProductionSystems,UniversityofCalifornia,Berkeley.Available:<p2sl.berkeley.edu>

` APPROVAL SOLICITATIONValidation Study

projectsuccesslookslikefortheteam;d)identifythedistinctownerstakeholders/sponsors;or,e)identifyownerteammemberresourcesassignedtotheprojectifthisisauthorized.Inafewpages,theChartersummarizesanddetailscriticalinformationsuchas:whatisandwhatisnotincludedinthescope;howdriverdecisionswillbemadebetweenscope,schedule,andcost;projectconstraints;budgetandschedule;owner’svision,goals,andmeasuresofsuccess;CoSandprojectsuccessmetrics;ownerpersonnel;or,projectteampersonnel.

“"Howdidthevalidationstudyinformthedesignandproject

deliveryprocess?"

"Massively.Itwasreallythereferencepointfortherestof

theproject"”

TheValidationStudyisthedeliverableofvalidationandispresentedtotheownerstakeholdersduringapprovalsolicitation.Itunequivocallydeterminestheteamcommitmenttowardsscope,schedule,andbudgetandprovidesinformation(e.g.estimates,sketches,renderings,flowcharts,narratives)thatsupportsuchcommitment.TheValidationStudyshouldbethoroughbutinformativesothatareadernotfamiliarwiththeprojectcouldarriveatasimilardegreeofcertaintyabouttheoutcomesproposedbytheteam.Amongothers,theValidationStudycontainsinformationabout:teammembersandaffiliation;scope;permitting;programfunctions/operations;planning;basisofdesign(orschematicdesign);buildingsystems;budget;schedule;and,riskregisterandopportunities.Iftheprojectisauthorized,theValidationStudysetsthebasisofdesignandexecutionandthusbecomesatouchstoneforthedurationoftheproject.

WhatistheProjectCharter?TheValidationStudyoftencontainshundredsofpagesofinformation.Thus,theProjectCharterorsimilardocumentintheValidationStudysummarizestheteam’scommitmentandseekstogaintheownerstakeholders’internalapprovalandalignment.Amongothers,theCharteraimsat:a)summarizingtheprojectdescriptionandobjectives;b)providingvisibility,alignmentandformalizingtheapprovaloftheintentoftheprojectwithintheownerorganization;c)definingwhatprojectsuccesslookslikefortheowner,andwhat

WhoownstheBudget?Thebudgetreflectsthecostoftheprojecttotheowner.Thebudgetisdividedintocostcategoriesorchapterssuchaspermitting,design,construction,equipment,informationandcommunicationtechnologies,professionalservices,oroperationalexpenses.Forinstance,themovingofongoing

49

Approval Solicitation & Decision

“Validationwasalsounderstandingallofthekeytradepartnersthatweregoingtobeapartofthe

projectworkauthorization,andwhattheirpercentageofcontributionwastothe

projectworkauthorizationitself.Becausethatdefinedwhattheirportionofrewardwouldbeongettingbelowthetargetvalueoftheproject,anditwouldbecomeariskiftheydidn'thitthetarget

value”

Atapprovalsolicitation,theProjectCharterandthesupportinginformationintheValidationStudyarediscussedandpresentedtoownerstakeholderswiththeobjectivetoobtaintheauthorizationfortheprojectandcorrespondingreleaseoffunds.Stakeholdersevaluatetheteamcommitmentandthecertaintythattheteamcanmeetsuchacommitment.Validationculminatesinaninformeddecisionbytheowneronwhethertoauthorize(go)ornot(no-go)theproject.SeeFigure4.Theultimatevaluerestsinestablishingcertaintyandenablinganinformeddecision,whateverthedecisionis,onbehalfoftheownerandtheteamatafractionoftheexpenditurethantraditionaldesignandestimatingapproachesrequire.

“That'showweknewweweredone,theownersaid,"Ifyou'repreparedtocommittothat,we'repreparedtomove

forward"”

operationsduringtherenovationofanexistingfacilitywillbecapturedintheoperationalexpenseorsimilarcategory.

Thebudgetalsosetstheexposureoftheteam.Theamountofprofit/lossexposuresharedbytheteamisoftencomputedbasedontheteam’sresponsibilityineachbudgetcategory.Thus,whenanownerprovidesforpermitting,equipment,oroperations,theircostsarenotincludedintheteam’sprofit/lossexposuresincetheteamisnotresponsibleforthem.

WhatdoesaGodecisionimply?Validationisover.Theownerissatisfiedwiththeteam’scommitmenttoexecuteanagreed-uponscopewithinatargetcostandcompletiontime.Theownerauthorizestheprojectandfundsarereleased.Theownerandtheteamcontractuallyagreetotheprojectbasedonthesharedcommitmentthatthesuccesscriterioncanbemet.TheIFOAcaptureseachstakeholder’sshareofprofit/loss,whichhasbeennegotiatedattheendofvalidation.Theprojectisdesigned,built,commissionedandstarted.Atcompletion,lossesorprofitsaresharedamongteampartners.

WhatisnextfortheTeam?Thevalidationteamtransitionsatthecoreoftheprojectteamthatdeliverstheproject.Suchtransitionaimsatanchoringalignment,dynamics,commitment,andprojectknowledge.Wehavedocumentedowners

“Thefinalgo,no-go,isbasedontheteam'scapabilitiesofensuringthatwecangettheprojectatthescopethatwewereapprovedbytheboard,atthebudget,orbelow”

APPROVALSOLICITATION/VALIDATIONSTUDY 50 51

WhatisthevalueofaNo-Go?Intheprocessofvalidation,itmaybecomeapparentthatownerprioritiescannotbemet.Thisisvaluableinformationtoconveytotheownerandteam.Wheneveraprojectisterminated,validationaccomplishestheobjectivetoavoidacapitalexpendituretowardsaneffortthatcannotmeetprioritiesorthatistoorisky.Thus,theownercanallocatetheprojectfundstootherinvestmentsthatcanmeetbusinessobjectives.Fortheteam,itavoidsthecommitmentofsignificanttimeandresourcestowardsaneffortthatwouldlikelyresultinalossandcoulddamagethereputationofthepartnerorganizations.

IstheProjectterminated?Validationenablestheowner’sinformeddecisionabouttheprojectwhenthisisnotauthorized.Ano-godecisiondoesnotnecessarilyimplythattheprojectisforgotten,beingthisoneoption.Thatthescheduleproposedbytheteamdoesnotmeettime-to-marketconstraintsoftenleadstotheshelvingoftheproject.

“Ano-godecisionisjustasgoodasagodecision,becausetheworstthingyoucoulddoissignupforaprojectthathasanoutcomethat'scompletely

unrealistic”

Alternatively,ano-gocanresultintherevisionoriterationoftheowner’sbusinesscaseand/orchangeinscopewiththeobjectivetoreduceprojectcosts.Itcanalsoresultinthetemporaryfreezeoftheprojectwiththeexpectationthat,inthefuture,theownerwillbeabletoincreasetheallowablebudget.Finally,ownerstakeholderscanrequiretheextensionofvalidationinordertoincreasecertaintybeforetheprojectispresentedforapprovaloncemore.

theownerandtheteamcontractuallyagreetotheprojectbasedonthesharedcommitmentthatthesuccesscriterioncanbemet.Whennotauthorized,validationenablestheowner’sinformeddecisionabouttheproject.Theownercanextendvalidationinordertoincreasecertaintyfurther,increasetheallowablebudget,modifythebusinesscase,changethescope,orterminatetheprojectandthusallocatethefundsintoalternativeinvestmentsthatcanmeettheowner’sobjectives.Thevalueofvalidationrestsinestablishingcertaintyandenablinganinformeddecision,whateverthedecisionis,onbehalfoftheownerandtheteamatafractionoftheexpenditurethantraditionaldesignandestimatingapproachesrequire.Organizationswithvalidationexpertiseregarditasacompetitiveadvantage.

SolicitApproval

InformProject

GO

NO-GO

ExtendValidation

Shelve,Freeze,orRevisitProject

ReduceUncertainty

Figure4.Go/No-Godecision

thatbindtheparticipationofteammembersthroughliquidateddamagesorsimilarcontractualcompensationmechanisms.Theaimisnottherealizationofliquidateddamages,butsecuringteamexpertisethroughouttheprojectduration.

APPROVALSOLICITATION/APPROVALSOLICITATION&DECISION 52 53

APPENDIX I – VALIDATION TOOLS

54

ThetoolscontainedinthisGuidearesummarizedinthisAppendixandpresentedwithaformatthatintendstofacilitatetheiruse.Practitionersareencouragedtoadaptandmodifythesetoolsaccordingtothespecificcharacteristicsoftheirorganizations,projects,teams,andvalidationprocesses.Inordertofacilitateuse,eachtoolispresentedinaseparatesheet.Forbestresults,printina17inx11inpaperformat.

Validation Characteristics

55

ValidationCharacteristics Yes No

FollowstheBusinessCase q q

CulminatesinaDecisiononWhetherorNottoAuthorizetheProject q q

HasadedicatedBudget&Schedule q q

HasadedicatedTeamofExperts q q

DesignisOmittedor,atmost,Limited q q

Team Member Competencies

56

Competency High LowTechnicalSkillsConceptualEstimating(*) q q

BasicDesign(*) q q

DetailedDesign q q

ExperienceSimilarProjects(*) q q

IPD q q

LeanConstruction q q

BehaviorTeamBuilding(*) q q

Commitment(*) q q

ProblemSolving(*) q q

TimeManagement(*) q q

Accountability(*) q q

Leadership q q

(*)Corecompetency

Kickoff Content

57

Content Yes NoInformationInputOwner’sCultureandProjectSignificance(*) q q

Owner’sPriorities(*) q q

BehaviorsofExcellence(*) q q

ProjectApprovalProcess(*) q q

Others(writedown) q q

TeamAdvancementRelationalContracting(IFOA) q q

IPD q q

LastPlanner™ System q q

TargetValueDelivery q q

Others(writedown) q q

TeamActivitiesIdentificationofValidationDeliverables(*) q q

PullPlanningValidation(*) q q

DeterminingRulesofEngagement&Communication(*) q q

DeterminingConditionsofSatisfaction(*) q q

Others(writedown) q q

(*)Corecontent

Big Room Agenda Items

58

AgendaItems Yes No

DevelopmentandCultureOwner’sCulture q q

BehaviorsofExcellence q q

Owner’sProjectApprovalProcess q q

RelationalContracting(IFOA) q q

IPD q q

LastPlanner™ System q q

TargetValueDelivery q q

Others(writedown) q q

EstimatingRefreshment(e.g.ownergoals,project,CoS) q q

Presentationofworkbyclustergroups q q

Requestsforinformation q q

A3analysisanddecisionmaking q q

Others(writedown) q q

InnovationIdentificationofrisksandopportunities q q

Assessmentofrisksandopportunities q q

Mitigationofrisks q q

Updateoftheriskregister q q

Others(writedown) q q

PlanningandControlMonitorvalidationprogressagainstplan q q

Definethenextvalidationgoalsandtasks q q

Revise/detailupcomingmeetinglogistics&agendas q q

Others(writedown) q q

APPENDIX II – MATERIAL SAMPLES

59

ThematerialsinthisAppendixrepresentasmallsampleofthemultiplepossiblemannerstovalidateaproject.MaterialswerechosenbecausetheyarerepresentativeofcommoncontentandformatfoundinvalidationdocumentsandValidationStudyreportsspecifically.Materialsintendtoprovideguidanceandinspirethoughtandcreativityintheprocessofvalidatingaproject.Suchmaterialsprovideasenseofthescope,supportdocuments,andmethodsthathaveprovedusefulinthevalidationofprojectsbyexpertteams.Materialswereadaptedorcombinedfromoriginalvalidationdocuments.Originaldataweresanitizedsothatinformationcannotbetracedbacktoorganizations,individuals,orprojects.

Sample of Big Room Session Agenda

60

Table of Contents – Validation Study

1. INTRODUCTION

1.1CoverSheet

1.2TableofContents

1.3TeamAttestationLetter

1.4ExecutiveSummary

1.6ListofTeamMembers

2.PROGRAM,PLANNING&DESIGN

2.1.aPlanningSummary

2.1.bProjectCharter

2.2.aOperationalAssumptions

2.2.bRegulatoryConstraints&Requirements

2.2.cFunctionalProgramDetail

2.2.dSpaceProgramSummary

2.3.aStackingDiagrams

2.3.bDepartmentBlockLayouts

2.3.cConceptFloorPlans

2.3.dConceptFurnitureLayout&Images

2.3.eAccessibilityAnalysis

2.3.fMaterialsManagementNarrative

2.3.gVerticalTransportationNarrative

2.4.aUtilitiesandEncroachments

2.4.bSiteSurvey,KeyFeatures,&Impacts

2.4.cTraffic,Access,&Parking

2.4.dPedestrianAccessibility

2.4.eConceptSitePlan

2.4.fBuildingMassingOptions

2.4.gBuildingConceptElevations

2.4.hExteriorWallStudies&Sections

2.4.iConceptRoofPlan

2.4.jInteriors,Materials,&Finishes

2.4.kOutlineFinishSchedule

2.4.lOutlineEquipmentSchedule

2.4.mSustainabilityStrategy

3.BUILDINGSYSTEMS

3.1StructuralSystems

3.2MechanicalSystems

3.3PlumbingSystems

3.4ElectricalSystems

3.5TechnologySystems

3.6FireAlarm&LifeSafetySystems

3.7SecuritySystems

3.8Acoustics&Vibration

4.RISKASSESSMENTANDRISKREGISTER

4.1PreliminaryRiskRegister

4.2ProposedTargetValueDesignApproach

4.3ProposedBuildingInformationModeling(BIM)Approach

5.SCHEDULEANDBUDGET

5.1ProjectSchedule

5.2Entitlement&PermittingAssumptions

5.3ProjectBudget

6.APPENDICES

6.1ExecutedValidationStudyApproval

6.2ExecutedProposedValidationStudyFormat

61

Project Scope Definition Sample

Thescopeincludes:

• Buildingexpansionof102,450squarefeet

• Renovationofapproximately22,350squarefeetinexistingfacility/building

• Expansionshellofapproximately8,322squarefeetforfuturetenantimprovement

• 24newemergencycarerooms

• 37newintensivecarebeds(25operational;12builtoutbutnotequippedorfurnished)

• Shellspaceforfuture12intensivecarebays

• Buildingsystems(mechanical,electrical,plumbing,telecom)tosupportexpansionandrenovationabove

• Additionalemergencypowercircuitrytosupportintensivecare

• Newdedicatedsetofthreeelevatorsinexpansionfacility

• Relocateddropoff/entry/expandedwaitingarea

• Stuccoexteriorskin

• Momentframestructuralsystem

• 40%maximumexteriorglazingandexterioraccentfinishes

• Droughttolerantplanting

Thescopedoesnotinclude:

• Expansionsbuiltinmorethanonephase

• Excessivephasing,imposedscheduledelaysorout-of-sequenceconstruction

• Renovationofexistingspacesnotimpactedbyexpansion

• Extensiverenovationofexistingsquarefootageotherthanflooringandpaint/cosmeticupgrades

• Morethan24newemergencyrooms

• Morethan25licensedandoperationalintensivecarebeds

• Expansionofparkingspace/capacity

• Washeranddryerservices

• Highlydecorativeelements

• Extensivewindoworexteriorglazing

• Highperformingstructuralsystemdesign

• LEEDorsimilarcertification

62

Mission and Vision

ProjectMission:Provideafacilitythatincreasesaccesstoservicesforthecommunityandallowsfornecessaryprovidergrowthtomaintaincurrentmarketshare.

Owner’sMission:Weimprovethewell-beingofthecommunitiesweservethroughourcontinuouscommitmenttoexcellenceinquality,services,andaccess.

ProjectVision:Ahealthcarefacilitydesignedwithandforpatientsthatsupportsthehighestqualitycareandwiththehighestvalueinbuildingsystemsanddesigncomponents.

Owner’sVision:Weleadthetransformationofthecommunitiesweserveandtheachievementofthepeople’shealthandwell-beingthroughexcellenceinquality,access,andaffordability.

Conditions of Satisfaction

SampleofTeam’sPrioritizedConditionsofSatisfaction

1. Reducetotalprojectcostsbelow$2,800,000

2. Donotimpact/disruptongoingoperationsduringrenovation

3. Reduceowner’soperationstartdate– thesooner,thebetter

4. Consensusdriven

5. Achieveenergyefficiencyandreliablebuildingsystemswithloweroperationalcosts

6. Considersoperationalchangestoaddresscapacitydemands

7. Considersalternativefacilitiestoaddresscapacitydemands

8. Engagethecommunitythroughdesign(e.g.exterior,access)

9. Increaseowner’sexpectedmarketshare

10. Capturethemodestyoftheownerorganization

Prioritization of Drivers

Scope Schedule Budget

2 3 1

(Priority1beingthemostimportant;rankaccordingly)

63

Site Plan – Basis of Design

35’ M

INOR

LAND

SCAP

E C

ORRI

DOR

50’ MAJOR LANDSCAPE CORRIDOR

PARCEL 1

PARCEL 2

85’ ZONING SETBACK

85’ Z

ONIN

G SE

TBAC

K

POSSIBLE DRIVEWAY

Prim

ary

Traf

fic F

low

Secondary Traffic Flow

SOLAR PATH

PREV

AILIN

G W

INDS

FOCA

L POI

NT

64

A3 Analysis and Documentation

65

Risk Identification and Assessment

66

FernandaCruz-Rios,Ph.D.PostdoctoralResearcher,SchoolofSustainableEngineeringandTheBuiltEnvironment,ArizonaStateUniversityFernandaCruz-Riosispassionateaboutsustainability,innovation,andinterdisciplinarycollaborationtoachievecommongoals.Herresearchisfocusedonsustainableconstruction,specificallyzerowasteandcirculareconomyinthebuiltenvironment,andhowitcanbefosteredbythecollaborationamongdesignandconstructionstakeholders.FernandahasaPh.D.inCivil,Environmental,andSustainableEngineeringandaB.S.inArchitectureandUrbanPlanning.

About the AuthorsDavidGrau,Ph.D.,P.E.AssociateProfessor,SchoolofSustainableEngineeringandTheBuiltEnvironment,&Senior Sustainability Scientist,JulieAnnWrigleyGlobal InstituteofSustainability,ArizonaStateUniversityDavidGrauisaninternationallyrenownedresearcherwithafocusonstreamliningdesignandconstruction.WithanIndustrialEngineeringbackground,hisworkhasinvestigatedtheprojectdeliveryprocessfromaproductionsystemsperspective.Hisworkattheintersectionofinnovativeprojectandproductioncontrolsaimsatproactivelysupportingwithaccurateandtimelyinformationthedecisionsonbehalfoftheproject,portfolioofprojects,andstakeholderorganizations.Davidisalsowell-knownforthedesignofanautomatedmaterialstrackingapproachthathasbeenleveragedinsupportofconstructionprojectsaroundtheworld.

Previoustohisacademiccareer,hehaspracticedintheprivateindustryformorethantenyearsinpositionssuchasconstructionprogrammanagerforindustrialprojectsanddirectorofalargeengineeringdepartment.HehasledlargeinterdisciplinaryandmulticulturalteamstodelivercapitalprojectsinSouthAmerica,Africa,andEurope.

RachaelShermanPh.D.Candidate,SchoolofSustainableEngineeringandTheBuiltEnvironment,ArizonaStateUniversityRachaelShermanisastudentresearcheratArizonaStateUniversitypassionateaboutimprovingindustrialprojectperformancethroughplanningandcollaboration.Herresearchisprimarilyfocusedonassessinglarge-scaleconstructionprojects.Rachaelisinterestedinexploringtherootcausesofpoorprojectperformancethatcansupportimprovedplanningandinturnleadtomorepredictableprojectsintermsofcostandscheduleperformances.

Version1.0Copyright © May2019