With the application of Lean principles owners are maximizing value and eliminating waste in the design and construction process. Under an integrated agreement, owners, architects and construction management firms are collaborating early and sharing the risks and the rewards of this new and innovative delivery process. In other words, this process brings the right people together to talk about the right things at the right level of detail at the right time. As a result of this initial focus and the creation of more reliable workflow, teams are doing more with less, shortening design and construction time, decreasing costs, delivering increased value, reducing wasteful surprises and experiencing improved safety on the construction site.

Sutter Health is one of California's largest health-care providers with more than two dozen locally run acute care hospitals as well as physician organizations; medical research facilities; region-wide home health, hospice and occupational health networks; and long-term care centers. They have embraced a Lean philosophy to execute over $6 billion in current and planned capital projects throughout their system. Sutter is driving this approach by what they call the "five big ideas:"

— Collaborate. Really collaborate;

— Improve relationships among participants;

— Realize that a project is a network of commitments.;

— Optimize the project, not the parts of the project;

— Couple learning with action.

By requiring design and construction consultants on its projects to adopt this Lean approach, Sutter is revolutionizing Northern California's construction industry.

The structure of the Integrated Agreement is a single contract signed by the owner, the architect and the construction manager. Under the Integrated Agreement, a Core Team is created from each team member that is jointly responsible for the management of the entire project. The agreement also establishes an Integrated Project Delivery Team and Senior Management Group to make decisions and guide the process. The agreement describes the Value Proposition that sets the stage for the project to proceed with informed and accurate information concerning program, quality, cost and schedule. Deliverables by the Core Group include communication protocols, a validated budget as basis for Target Value Design, a Target Value Design Plan, Pull Schedule, Joint Site Investigation Plan and approved subcontract & consultant forms of agreement. The incentive clauses are utilized to create a positive environment for the elimination of waste and returned savings for the owner. The agreement also incorporates new financial provisions such as the Joint IPD Team contingency as well as construction provisions for quality control, payments and problem resolution.

In this session, you will hear perspectives from the owner, architect, constructor and legal counsel that pioneered this Integrated Agreement. You will understand the value proposition for each team member and how they jointly share the risks and the rewards of the project. You will learn the roles of the participants and how they function with the Core Team. Finally, you will gain key insights into the elements that are necessary for a successful project under this agreement.