1. Collaboration in Contracting Teresa Magnus Vulcan Insulation Co. tmagnus@vulcaninsulation.com

2. A better path forward “It is ironic that the one industry in the country which more than all others depends upon coordination, cooperation and teamwork among multiple participants should be the country’s most adversarial industry.” - Construction Industry Institute

3. What have we experienced under traditional forms of contracting? Access to the work area Schedule bottlenecks Out of sequence work Crane time disputes Late material deliveries Late information and decisions Working around congestion Lack of cleanup Unplanned changes Not being able to finish what is started Changing priorities Not following decisions made in meetings Pure price selection Lack of accountability Rework Moving material, again Uncoordinated design drawings Schedule compression and manpower spikes Avoiding issue resolution Lack of schedule commitment “Show work” Jumping around Late shop drawing approvals Other trades in the way Not having answers to questions Conflicting motivations Conflicting goals Waiting

4. The Contracting Process Traditional Process: 1.Select A/E 2.Assemble the Documents 3.Bid 4.Select Contractor 5.Goal “Alignment” Meeting 6.Mobilize the Two Teams 7.Bring in the Subcontractors Collaborative Process: 1.Select A/E, Contractor, Major Subcontractors, and Major Vendors 2.Goal Alignment Meeting 3.Jointly Create, Review, and Execute the Documents 4.Mobilize One Team

5. Collaborative Contracting Where to Start – Begin with a collaborative contract template, rather than a traditional form of agreement www.consensusdocs.org – Work with attorneys who understand the underlying concepts of collaborative projects and are experienced with collaborative agreements

6. Collaborative Contracting Negotiation – All team members are in the room at the same time with decision makers at the table – The goals jointly created by the team are visible and relied upon in drafting the agreement – The Owner’s attorney drafts the agreement from the negotiations

7. Collaborative Contracting The Documents – PLAIN LANGUAGE – Useable Clearly worded Unambiguous Computable – Standard Operations

8. Collaborative Contracting The Terms – First Provision “The Owner and Contractor agree to proceed with the Project on the basis of mutual trust, good faith, and fair dealing.” – Electronic Communications Protocol Decide what and how to communicate electronically Define acceptable media, systems, processes – Safe Harbor, Project Targets, Incentives

9. 300 Collaborative Agreement “… A relational contract that... recognizes that each party’s success is tied directly to the success of all other members of the Collaborative Project Team and encourages and requires the parties to organize and integrate their respective roles, responsibilities and expertise, to identify and align their respective expectations and objectives, to commit to open communications, transparent decision-making, proactive and non-adversarial interaction, problem-solving, the sharing of ideas, to continuously seek to improve the Project planning, design, and construction processes, and to share both the risks and rewards associated with achieving the Project objectives.” (Section 3.2)

10. Collaborative Contracting The Effects: – Craft Labor – Improved Schedules – Reduced Costs – Improved Safety – Improved Quality – Job Satisfaction

11. Collaborative Agreement www.consensusdocs.org CURT members receive a discount Document samples can be viewed Documents can be purchased online