Energy-Related Risk Management in Integrated Project Delivery
Publication: Journal of Construction Engineering and Management
Volume 139, Issue 12
Abstract
Developing energy-efficient commercial buildings requires the use of an energy-related risk management practice that can increase the chance of achieving intended lifecycle financial goals. This paper suggests a management practice that deals with such energy-related risk, namely, project cost risk and performance risk. A prerequisite to applying the suggested management practice is a high level of collaboration among different disciplines during design development as promoted, for example, when using integrated project delivery (IPD). As a case study to validate the management practice, this paper presents a California hospital project where the unique features of IPD helped the project team apply the management practice in the course of managing the energy-related uncertainties of an energy-efficiency measure. This paper illustrates the detailed design decision-making process of the team that used Target Value Design, a lean design management method. As a contribution to the body of knowledge, the purposes of this study are to present the case study that serves to validate the suggested practice and to show that the IPD application contributed to the capability and effectiveness of the practice in increasing the reliability of achieving the target lifecycle financial values while reducing system complexity and overdesign.
Get full access to this article
View all available purchase options and get full access to this article.
Acknowledgments
Thanks are due to the Owner and the IPDT for their support in this case study. Research for this paper was in part supported by gifts made to the Project Production Systems Laboratory (P2SL) at the University of California at Berkeley. All support is gratefully acknowledged. Any opinions, findings, conclusions, or recommendations expressed in this paper are those of the authors and do not necessarily reflect the views of contributors to P2SL.
References
7group, and Reed, B. G. (2009). The integrative design guide to green building: Redefining the practice of sustainability, Wiley, Hoboken, NJ.
American Institute of Architects. (2007). “Integrated project delivery: A guide.” Washington, DC.
Argyris, C. (1999). On organizational learning, Wiley-Blackwell, Hoboken, NJ.
Ballard, G. (2008). “The lean project delivery system: An update.” Lean Constr. J., 1–19.
Ballard, G. (2011). “Target Value Design: Current benchmark (1.0).” Lean Constr. J., 79–84.
Browning, T. R., Deyst, J. J., Eppinger, S. D., and Whitney, D. E. (2002). “Adding value in product development by creating information and reducing risk.” IEEE Trans. Eng. Manag., 49(4), 443–458.
Choi, C. (2009). “Removing market barriers to green development: Principles and action projects to promote widespread adoption of green development practices.” J. Sustainable Real Estate, 1(1), 107–138.
Cohen, J. (2010). “Integrated project delivery: Case studies.” American Institute of Architects, Washington, DC.
Crozier, B. (2000). Enhancing the performance of oversized plant, Building Services Research and Information Association, Bracknell, Berkshire, UK.
Davies, A., Gann, D., and Douglas, T. (2009). “Innovation in megaprojects: Systems integration at London Heathrow Terminal 5.” California Manage. Rev., 51(2), 101–125.
DOE. (2010). Guide to determining climate regions by county, U.S. Department of Energy, Washington, DC.
DOE. (2011). 2011 buildings energy data book, U.S. Department of Energy, Washington, DC.
Eisenhardt, K. M. (1989). “Building theories from case study research.” Acad. Manage. Rev., 14(4), 532–550.
Flyvbjerg, B. (2006). “Five misunderstandings about case-study research.” Qual. Inq., 12(2), 219–245.
General Services Administration (GSA). (2004). LEED cost study: Final report, Washington, DC.
Glavinich, T. E. (2008). Contractors guide to green building construction: Management, project delivery, documentation, and risk reduction, Wiley, Hoboken, NJ.
Hawken, P., Lovins, A., and Lovins, L. H. (2008). Natural capitalism: Creating the next industrial revolution, Back Bay Books, New York.
Jackson, J. (2009). “How risky are sustainable real estate projects? An evaluation of LEED and ENERGY STAR development options.” J. Sustainable Real Estate, 1(1), 91–106.
Kats, G. (2003). Greening our built world: Costs, benefits, and strategies, Island Press, Washington, DC.
Keeler, M., and Burke, B. (2009). Fundamentals of integrated design for sustainable building, Wiley, Hoboken, NJ.
Kent, D. C., and Becerik-Gerber, B. (2010). “Understanding construction industry experience and attitudes toward integrated project delivery.” J. Constr. Eng. Manag., 136(8), 815–825.
Knight, I., and Dunn, G. (2004). “Size does matter.” Build. Serv. J., 34–36.
Lee, H. W. (2012). “Application of Target Value Design to energy efficiency investments.” Ph.D. dissertation, University of California, Berkeley, CA.
Lee, H. W., Ballard, G., and Tommelein, I. D. (2012a). “Developing a target value design protocol for commercial energy retrofits. II.” Proc., 2012 Construction Research Congress, ASCE, Reston, VA, 1720–1729.
Lee, H. W., Tommelein, I. D., and Ballard, G. (2012b). “Design of an infrastructure project using a point-based methodology.” J. Manag. Eng., 28(3), 291–299.
Matthews, O., and Howell, G. A. (2005). “Integrated project delivery an example of relational contracting.” Lean Constr. J., 2(1), 46–61.
Matthiessen, L. F., and Morris, P. (2007). “The cost of green revisited.” Davis Langdon, Sacramento, CA.
Modera, M., et al. (1999). “Efficient thermal energy distribution in commercial buildings.” Lawrence Berkeley National Laboratory (LBNL), Berkeley, CA.
Smith, N. J., Merna, T., and Jobling, P. (2006). Managing risk: In construction projects, Blackwell, Malden, MA.
Sobek, D. K., and Smalley, A. (2008). Understanding A3 thinking: A critical component of Toyota’s PDCA management system, Productivity Press, Portland, OR.
Torcellini, P. A., et al. (2004). “Lessons learned from field evaluation of six high-performance buildings.” Proc., Summer Study on Energy Efficiency in Buildings, American Council for an Energy-Efficient Economy, Washington, DC, 1–13.
Whelton, M., Ballard, G., and Tommelein, I. D. (2002). “A knowledge management framework for project definition.” ITcon J. Inf. Technol. Constr., 7, 197–212.
White House. (2011). “President Obama’s plan to win the future by making American businesses more energy efficient through the Better Buildings Initiative.” 〈http://www.whitehouse.gov/the-press-office/2011/02/03/president-obama-s-plan-win-future-making-american-businesses-more-energy〉 (Nov. 15, 2011).
Yin, R. K. (2003). Case study research: Design and methods, Sage, Thousand Oaks, CA.
Information & Authors
Information
Published In
Copyright
© 2013 American Society of Civil Engineers.
History
Received: Dec 12, 2012
Accepted: Jun 10, 2013
Published online: Jun 13, 2013
Published in print: Dec 1, 2013
Discussion open until: Dec 29, 2013
Authors
Metrics & Citations
Metrics
Citations
Download citation
If you have the appropriate software installed, you can download article citation data to the citation manager of your choice. Simply select your manager software from the list below and click Download.