03 INTER-FIRM ALLIANCE AND DESIGN TEAM ARRANGEMENT_compressed.pdf

Batangas State University - The National Engineering University INTER-FIRM ALLIANCE AND DESIGN TEAM ARRANGEMENT Services, Structures, Compensation, and Risks that arise with teaming up with Fellow Professionals ARCH 538: Professional Practice 3...

Batangas State University - The National Engineering University INTER-FIRM ALLIANCE AND DESIGN TEAM ARRANGEMENT Services, Structures, Compensation, and Risks that arise with teaming up with Fellow Professionals ARCH 538: Professional Practice 3 Ar. Jansen Imron Rosilla, uap  Batangas State University - The National Engineering University The importance of this topic is to learn what to do and what to avoid in the situation of inter-firm alliances and design team arrangements. Rationale It is important to know the flow of the project to segregate each people on their specific job to create a system for a more organized team. ARCH 538: Professional Practice 3 Ar. Jansen Imron Rosilla, uap  Batangas State University - The National Engineering University INTER-FIRM ALLIANCE Inter-firm alliance is an alliance is commonly defined as any voluntary initiated cooperative agreement between firms that involves exchange, sharing, or co- development and it can include contributions by partners of capital, technology, or firm- specific assets. Identified as one of the key mandates for the construction industry moving forward is the need to both recognize and strengthen the relationships and engagement between the various disciplines. ARCH 538: Professional Practice 3 Ar. Jansen Imron Rosilla, uap  Batangas State University - The National Engineering University Inter- Professional Architects routinely retain consultants. This At times architects are sub-consultants Relationships relationship means that the architect also has vicarious liability for any damage caused by the consultant’s negligence. Insured architects to other professionals or subcontractors to construction contractors. Examining the prime design will want to review their consultant’s insurance professional’s coverage—or the status, as they, for all intents and purposes, will professional liability coverage of a serve as their consultant’s insurer if that status construction contractor through which is inadequate. Similarly, if an architect agrees by the architect is providing services to a contract to limit the liability of a consultant, the client—can alert the sub-consultant architect may find that the risk of the professional to gaps in coverage that consultant’s negligence has been shifted to the could result in the sub-consultant architect and the architect’s insurer. becoming the only target of a claim. ARCH 538: Professional Practice 3 Ar. Jansen Imron Rosilla, uap  Batangas State University - The National Engineering University Architect – Consultant Relationship The architect may seek consulting Consultant Services and arrangements with a wide variety of Responsibilities design professionals and specialists— even with other architects. The most Consultant services to the architect common inter-professional are outlined in the architect-consultant relationship is that between the agreement. These services, and other architect and the professional contract terms and conditions, should be engineer responsible for the detailed carefully coordinated with those in the design and engineering of one or architect-owner agreement. more of the building’s systems. ARCH 538: Professional Practice 3 Ar. Jansen Imron Rosilla, uap  Batangas State University - The National Engineering University SERVICES As the architect and owner establish the services to be included in the architect’s agreement, both parties may consider the The architecture firm, A design professional need for the services of other design professionals. It is advisable to review the through its own staff. subcontracted to the list of services required to accomplish the architecture firm. The design project and establish who will be professional may be another responsible for each. architect, an alliance partner, or another firm acting as a Each professional service identified may consultant to the architect. be provided by any of the following: ARCH 538: Professional Practice 3 Ar. Jansen Imron Rosilla, uap  Batangas State University - The National Engineering University A consultant to the owner. This arrangement may include a construction manager, a project or program manager, an independent design professional for another portion of the project, or another architecture SERVICES firm performing a portion of the architecture services—with or without coordination by the architect. The owner. The owner’s staff may provide services themselves or by some other arrangement— with or without coordination by the architect. ARCH 538: Professional Practice 3 Ar. Jansen Imron Rosilla, uap  Batangas State University - The National Engineering University Defining ROLES Role in project planning. When the The responsibilities of the architect. Clarifying responsibilities between the architect-consultant relationship is As the prime design professional, the owner and the architect accomplishes formed early in the project—or before architect assumes primary at least two objectives: the project begins, in a strategic contractual responsibility to the owner alliance or a team put together to for the accuracy and completeness of acquire the project—the consultant the work of the architect’s can be involved in project planning. The consultants. consultant then is in a position to commit to services, scope, schedule, and fee before the architect makes these commitments to the owner. ARCH 538: Professional Practice 3 Ar. Jansen Imron Rosilla, uap  Batangas State University - The National Engineering University DESIGN TEAM ARRANGEMENTS A teaming agreement is similar to a memorandum of understanding in that it sets forth the terms and conditions under which each member party in a design- build team will operate. It defines the role of each team members and their relationship between the parties. The teaming agreement is a legal document since it will form the basis for subsequent contracts between the parties should the team is successful in being selected for the design-build project. Accordingly, each of the parties entering into a teaming agreement should obtain their legal counsel’s opinion with respect to the document. While teaming agreements generally involve designers and constructors other key consultants may become involved depending on the type of design-build project that is proposed. ARCH 538: Professional Practice 3 Ar. Jansen Imron Rosilla, uap  Batangas State University - The National Engineering University DESIGN TEAM ARRANGEMENTS The project design team may be a very small group- even a single architect who has the necessary expertise and performs all of the professional services required. Often, however, the team includes another firm with special expertise in building engineering systems. Where design or construction consultants are required, it is common for the architects to select them and add them to project team and the architect is responsible to the clients for their professional services. ARCH 538: Professional Practice 3 Ar. Jansen Imron Rosilla, uap  Batangas State University - The National Engineering University DESIGN TEAM ARRANGEMENTS The architect-consultant relationship may be established just for project at hand, it may be a strategic alliance developed between the alliance developed between the participants, or the two firms may have a long standing working relationship. Design-build team members are usually selected on the basis of the experience, expertise, value and reputation that each member will bring to the team. ARCH 538: Professional Practice 3 Ar. Jansen Imron Rosilla, uap  Batangas State University - The National Engineering University Organizational Structure The design-build team, once formed, need to determine the type of organizational structure that is best suited for their situation and most likely to achieve the owner’s One is to form an individual One of the team members will requirements. There are two entity, such as a joint venture have the prime contract with basic options: or limited liability company. the owner and subcontract the work to the other team members. ARCH 538: Professional Practice 3 Ar. Jansen Imron Rosilla, uap  Batangas State University - The National Engineering University Organizational Structure Certain factors to be considered before selecting the Organizational Structure: It must be compatible with jurisdictional statutes and licensing laws. Other factors to be considered in selecting the organizational structure include: Owners preference Type of design-build project Liability issues Ability to achieve owner’s objectives ARCH 538: Professional Practice 3 Ar. Jansen Imron Rosilla, uap  Batangas State University - The National Engineering University Joint Venture An association of two or more entities for the purpose of performing a design-build project. The entities maintain their separate identities and join forces, usually, for a Options for specific project. Structuring a From both a legal and a tax standpoint a joint venture is viewed as a general Design-Build partnership. Accordingly, each joint venture partner Team is jointly and severally liable for both the actions and debts and obligations of the other party. ARCH 538: Professional Practice 3 Ar. Jansen Imron Rosilla, uap  Batangas State University - The National Engineering University Limited Liability Company An entity possessing attributes of both a general partnership and a Options for corporation. As the name suggests, the entities in Structuring a an LLC limit their liability to the assets of the LLC and are not individually liable Design-Build for its debts and liabilities. For tax purposes, the LLC is treated as Team a partnership. ARCH 538: Professional Practice 3 Ar. Jansen Imron Rosilla, uap  Batangas State University - The National Engineering University Prime-Subcontractor Relationship The most common organizational structure for performing design-build projects. Options for This type of relationship enables the Structuring a owner to receive the benefits of single point responsibility and accountability. Design-Build Any one of the following entities may be the prime contractor and Team subcontract the appropriate portion of the work: o Constructor — Led Team o Designer — Led Team o Developer — Led Team ARCH 538: Professional Practice 3 Ar. Jansen Imron Rosilla, uap  Batangas State University - The National Engineering University Once the team members have been selected and the organization structure determined, the parties have to assign the roles and responsibilities of each party in the preparation of the team’s proposal. They also need to address the allocation of proposal preparation costs, the protection and Options for ownership of confidential and/or proprietary information and the exclusivity of the teaming Structuring a arrangement. Design-Build They also need to discuss post-award issues should they be selected for the project. Under Team this structure, one party, usually the constructor because of their financial resources executes the design-build contract with the owner and subcontracts the design portion and other project elements. ARCH 538: Professional Practice 3 Ar. Jansen Imron Rosilla, uap  Batangas State University - The National Engineering University Sharing Risks and Providing Services The allocation of risks and rewards on a project offers a unique opportunity for the team members to ensure that their respective interests are properly aligned and truly interdependent. The single most important factor in determining the likelihood of success for a design-build team is the degree to which its members function as a true team. ARCH 538: Professional Practice 3 Ar. Jansen Imron Rosilla, uap  Batangas State University - The National Engineering University Compensation An essential element of any teaming agreement is the compensation to be paid to each member. To some extent, these provisions will be affected by the structure of the design- build team. ARCH 538: Professional Practice 3 Ar. Jansen Imron Rosilla, uap  Batangas State University - The National Engineering University Allocating Profits and Losses The sharing of profits and losses from a project offers the design-build team its best opportunity to build incentives for teamwork into its agreement. Financial rewards and penalties are the most powerful incentives to members of design-build teams, outweighing all of the promises, philosophies and platitudes in the teaming agreement. ARCH 538: Professional Practice 3 Ar. Jansen Imron Rosilla, uap  Batangas State University - The National Engineering University Owner insolvency RISKS Force majeure events Subcontractor claims and Many design-build projects involve other potential defaults risks and rewards beyond Cost overruns project profits and losses. Functional failure of the facility The risks commonly occur Delays in traditional projects as Equipment malfunctions well and include the following: Design errors or omissions Construction accident claims ARCH 538: Professional Practice 3 Ar. Jansen Imron Rosilla, uap  Batangas State University - The National Engineering University Common Problems in a Inter-firm Alliance and Design Team Arrangement Misunderstanding with the field of work of each part of the alliance. Miscommunication of each member. Delayed delivery of information such as revisions and changes to the project. Conflicting individual work schedules among members. ARCH 538: Professional Practice 3 Ar. Jansen Imron Rosilla, uap  Batangas State University - The National Engineering University Advantages in Inter-firm Alliance and Design Team arrangement More data and ideas can be compiled and consolidated to create the best outcome for the project. Increased manpower means lesser work of each worker, so the work is much easier and can be done faster. The division of labor is easier and more organized, increasing work efficiency. A particular benefit of a joint venture is that it affords the owner access to both the designer and builder(s). ARCH 538: Professional Practice 3 Ar. Jansen Imron Rosilla, uap  Batangas State University - The National Engineering University Disadvantages in Inter-firm Alliance and Design Team arrangement If the alliance doesn’t work, the whole project will turn into a mess, or worse, it might be ruined to continue. Some workers tend to procrastinate in this setup, thinking other people will pick up their slack. A disadvantage of the LLC is that, because its liabilities are limited, owners are reluctant to enter into a contract with them without some form of security guaranteeing the LLC’s obligations. ARCH 538: Professional Practice 3 Ar. Jansen Imron Rosilla, uap  Batangas State University - The National Engineering University Recommendations to Avoid and/or Solve Conflicts Keep an open mind and maintain open dialogue between members, so that the flow of communication is consistent and free of misunderstandings. Resolve conflicts as they arise - do not ignore the problem and solve it before it becomes a bigger issue. Take accountability for mistakes made. Treat each member and the work they do with respect. ARCH 538: Professional Practice 3 Ar. Jansen Imron Rosilla, uap  Batangas State University - The National Engineering University Recommendations to Avoid and/or Solve Conflicts Team heads/leaders should give constructive criticism, instead of just pointing out mistakes or resorting to insults. Avoid harmful gossip that could lead to poor performance within the team. Keep it professional - leave personal matters at the door. Trabaho lang. ARCH 538: Professional Practice 3 Ar. Jansen Imron Rosilla, uap  Batangas State University - The National Engineering University “The most important single ingredient in the formula of success is knowing how to get along with people.” -Theodore Roosevelt Thank You! ARCH 538: Professional Practice 3 Ar. Jansen Imron Rosilla, uap