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On behalf of NorthShore University HealthSystem (NorthShore), Integrated Facilities Solutions (IFS) recently completed a new 35,000 square foot medical office building.  By applying proven, lean management philosophy and tools the project is an example of redefining what a successful project can look like.

On the surface the project appears to be just another Medical Office building.  It is a steel frame building with a masonry veneer built on a 3.6-acre site that has 150 surface parking spaces.  The building has a 17,500-square foot footprint and the ground floor has 34 exam rooms.

So, what is unique about this project?  Integrated Facilities Solutions presented NorthShore with the option to manage the project using Integrated Project Delivery (IPD) in conjunction with a collaborative, cloud-based software program, PM Web.  NorthShore agreed and IFS lead the team in the application of IPD to the project using an Integrated Form of Agreement (IFOA) contract.  This is the first time an IFOA contract has been applied to a medical office building in the Chicagoland area.

A feature of the IPD delivery method includes forming the entire project team including both the design team and the key contractors early in the design process. Five (5) parties that included the Owner, Architect, Electrical Engineer, Mechanical Engineer, and the General Contractor where parties to the IFOA agreement.  Each party that was signatory to the contract put their profit into a pool committing themselves to the success of the project.  In addition, six (6) key trade contractors committed to entering the profit (risk) pool.

Extraordinary success was possible by forming a team early that had an investment in the project’s success.  Making use of processes that have been proven to work on other projects, including Target value design and Last Planner System, the lean, collaborative management efforts lead by IFS with full cooperation of the team resulted in exceeding all the financial goals while returning $450,000 to the owner.  The team was rewarded by sharing a profit pool that increased by nearly 75%.  Also, the schedule duration was reduced by 18%.

This project demonstrates what can be achieved by applying lean management principles to all projects, even those that are considered small.  IFS is currently working with NorthShore on a hospital based remodeling project using the delivery methods.

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