OFFSITE CONSTRUCTION 360, PART 1

Transcription

1 Monday, November 6 1:00 2:15 p.m. OFFSITE CONSTRUCTION 360, PART 1 Presented by Panelists: Tom Hardiman Executive Director Modular Building Institute Zach Murphy Director of Offsite Fabrication DPR Construction Michael Phillips Executive Vice President, Construction Practice Leader, Corporate Risk and Broking Willis Towers Watson Moderator: Scott Gurney Attorney at Law Frost Brown Todd LLC Use of offsite construction, modular components, and prefabricated modules is on the rise in large-scale residential, commercial, and industrial building projects. In this two-part session, four experts in offsite construction will discuss the potential advantages, challenges, and risks of offsite construction. In this Part 1 of the session, the forces behind the growth in offsite construction, recent uses of this method, and potential advantages and disadvantages will be examined. Legal issues, such as how the Uniform Commercial Code applies and whether modular components are considered products, will also be addressed, as well as contractual and insurance issues that can arise. To print on both sides of the page, set your printer for duplex printing. Copyright 2017 International Risk Management Institute, Inc. 1

2 Scott Gurney Attorney at Law Frost Brown Todd LLC Mr. Gurney is a construction attorney, mediator, and arbitrator. He is a member of the law firm Frost Brown Todd LLC, practicing in the firm s Construction Law Group. Mr. Gurney represents and advises contractors and other construction-industry clients on a wide range of legal issues from contract negotiation and risk management to claims and disputes. He also serves as a mediator and arbitrator on construction disputes and is on the national roster of the American Arbitration Association s (AAA) construction industry arbitrators. Mr. Gurney has been recognized as a leading construction attorney by Chambers USA Client Guide and The Best Lawyers in America and has a top Peer Review Rating by Martindale- Hubbell. He is a member of the American Bar Association s Forum on the Construction Industry and has been selected as a fellow of the Construction Lawyers Society of America, an invitation-only international honorary association composed of preeminent lawyers specializing in construction law and related fields. Mr. Gurney is a member of Associated General Contractors (AGC) of Ohio s Legislative Committee and of AGC of Cincinnati. He is a member of the Board of Directors of the Spirit of Construction, a nonprofit foundation supporting educational and employment opportunities in the construction industry, and is a past member of the Board of Directors of Allied Construction Industries. Mr. Gurney has been a frequent presenter at the IRMI Construction Risk Conference and other national construction conferences. Tom Hardiman, CAE Executive Director Modular Building Institute Mr. Hardiman, CAE, has been the executive director for the Modular Building Institute (MBI) since January MBI is an international nonprofit trade association representing manufacturers and leasing companies of commercial factory-built structures in 15 countries. Mr. Hardiman is also the director of government affairs for MBI, having been a registered lobbyist with the US Congress and state legislatures of Virginia, West Virginia, Pennsylvania, and Maryland. In this capacity, he manages all the state and federal regulatory, legislative, and building code issues impacting the industry. 2

3 An experienced association executive, Mr. Hardiman previously was executive director with Associated Builders and Contractors of West Virginia, where he served as a registered lobbyist, administered an education foundation, and managed a staff of four. Prior to association management, Mr. Hardiman assisted small businesses and entrepreneurs with business plans and loan packages as director of the Small Business Development Center in Beckley, West Virginia, and has also worked in the economic development, banking, and insurance fields. Mr. Hardiman earned bachelor and master degrees in business administration at Marshall University in Huntington, West Virginia, and the designation of Certified Association Executive from the American Society of Association Executives. He currently resides in central Virginia with his wife, Lesley, and daughter, Gracie. Zach Murphy Director of Offsite Fabrication DPR Construction With over 20 years of experience in technical building, Mr. Murphy serves as DPR s director of offsite fabrication. Mr. Murphy began his career at DPR with a focus on biotech projects. As many of these projects occurred during plant changeovers, successful execution required performing the vast majority of work before the project site was accessible. Mr. Murphy s offsite fabrication experience was further developed through the modular construction of a biotech sterile manufacturing plant. The project was completely fabricated in Sweden and delivered to South San Francisco, California. He successfully guided the design team through the local permitting process, developed the site construction and installation estimates, and executed the preparation and assembly work on site. Over the last decade, Mr. Murphy has led large healthcare and office campus projects, leveraging virtual design and construction (VDC) as a key planning tool. Combining VDC with offsite fabrication drives greater predictability into the design process. By using this integrated approach, Mr. Murphy has found opportunities to maximize offsite fabrication early in the design and procurement phase for many projects. These projects achieved a level of quality unattainable through conventional means and recognized a reduced margin of error associated with cost and schedule. As the projects that DPR delivers are often designed to specific customer requirements, Mr. Murphy has found that the optimal degree of offsite fabrication is best realized with a componentized solution. In his current role, Mr. Murphy supports DPR s offsite fabrication national initiatives. He is a component evangelist; through his years of experience, Mr. Murphy has demonstrated that the best way for DPR s customers to see cost, speed, and quality benefits, while achieving the cus- 3

4 tomer s bespoke architecture, is through rationalizing the design into building components suited for offsite fabrication. Michael Phillips Executive Vice President, Construction Practice Leader Corporate Risk and Broking Willis Towers Watson Mr. Phillips has 30 years of construction broker, underwriting, claims, and risk management experience. He started his career adjusting construction insurance claims and then transitioned into an underwriting role with the St. Paul Companies. Mr. Phillips left St. Paul after 13 years to join Zurich as a regional large account underwriting director. He was at Zurich for 6 years, where he held the following positions: large account underwriting director, regional construction manager, national wrap-up leader, and general liability line of business vice president. After leaving Zurich, Mr. Phillips joined Willis Towers Watson as a senior vice president and chief operations officer. He then took on the role of regional growth officer, after which he moved into his current role with Construction Practice and Complex Project Risk Management. Mr. Phillips leads the Denver and Northern California Construction Practice groups and is a client advocate for the company s larger, more complex construction and owner clients. He holds a bachelor s degree in economics from University of Missouri. 4

5 Part 1 Offsite Construction 360 Presented by: Scott Gurney Member, Frost Brown Todd, LLC Tom Hardiman Executive Director, Modular Building Institute Michael Phillips EVP Construction Practice Group, Willis Towers Watson Zach Johnson National Prefabrication Leader, DPR Construction Background Construction historically inefficient Potential paradigm shift Offsite construction Prefabrication Modular construction 2 5

6 Why now? What has changed? Building Information Modeling (BIM) Virtual Design & Construction (VDC) Collaboration Design-build / design-assist Integrated Project Delivery (IPD) Technology + Project Delivery 3 4 6

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9 9 Potential Advantages Schedule Cost Labor Quality Safety Performing work in a more consistent environment drives efficiency and predictability. 10 9

10 Off-site Fabrication Requires a New Approach Design Build approach becomes more prevalent How we build influences the design Building codes are geographic (localized) Labor jurisdictional issues New / different legal concepts, standards Standard contracts do not work Standard insurance projects may not work Unfamiliarity / learning curve 11 Preliminary Legal Issues Does the Uniform Commercial Code (UCC) apply? UCC Article 2 transactions in goods UCC Article 9 security interests Are modular components products? Legal standards of care Statutes of limitations / repose for claims How does insurance policy trigger change? 12 10

11 Insurance Issues General Liability your work / your product Products-completed operations hazard Contract / Purchase order Professional Products Exclusion Customized / Engineered Products Property / Builders Risk Waivers of Subrogation OCIP/CCIP Covers on-site activities only Can include dedicated fabrication Once project is completed, covered under Completed Ops with subrogation 14 11

12 Questions? 15 12