AIA Continuing Education Hall & Company is a Registered Provider - PDF document

5/28/2014 AIA Continuing Education Hall & Company is a Registered Provider with the American Institute of Architects Continuing Education Systems. Credit earned based on the completion of this program will be reported to AIA/CES for AIA Members. Please send your AIA member number to kbernal@hallandcompany.com after the presentation for reporting. This program is registered with the AIA/CES for continuing professional education. As such, it does not include content that may be deemed or construed to be an approval or endorsement for the AIA of any material of construction or any method or manner of handling ,using, distributing, or dealing in any material or product. Questions related to the specific materials, methods, and services will addressed at the conclusion of this presentation. What about Bob…? Bob Rosain & Associates.…Provides comprehensive management, operations and project delivery solutions to project ‐ owning organizations and the A/E/C industry… 35+ years in the A/E/C business working • nationally and internationally, currently based in Seattle Parametrix, CH2M HILL, Dames & Moore • Senior Project/Program Manager • Managed Small to Mega projects • Principal/Office Manager/Operations Manager • Project Management Program Development • &Training 1

5/28/2014 What about Chris…? Hall & Company is a specialty insurance broker serving over 3,700 design, consulting, surveying & environmental firms nationwide. • Executive Vice President, Senior Broker and shareholder. • 29 years insurance & risk management experience working for national and global insurance firms. • Graduate of City University and Executive Management, College of Insurance, Princeton NJ. • Former Landscape Designer. Our Learning Objectives today….. 1. Define “Quality” and “Quality Programs” in the AEC business and project delivery context. 2. Learn WHY AEC firms need to implement Quality Programs…including the benefits of d i doing so and the risks of NOT doing so. d h i k f NOT d i 3. Learn how to build and implement a Quality Program for your firm. 4. Learn how to implement a Continuous Quality Improvement Program in your firm. So what is “Quality”? Webster says… “The standard of something as measured against other things of a similar kind; the degree of excellence of something” Wikipedia on Quality (in business)… “…a quality item…has the ability to perform satisfactorily in service and is suitable for its intended purpose…” 2

5/28/2014 So what is “Quality”? In the context of projects, the Project Management Institute (PMI) says… “Project Quality Management includes Project Quality Management includes the processes…of the performing organization that determine policies, objectives and responsibilities so that the project will satisfy the needs for which it was undertaken.” PMI’s Project Management Book of Knowledge (PMBOK), 5 th Edition, 2013 What is “Quality Control”? • “…controlling a process to ensure that the outcomes meet an agreed upon level of quality and are predictable ” quality…and are predictable… • It answers the question: “Are we doing the thing right?” What is “Quality Assurance”? • “…verification and documentation that quality control processes has been performed ” performed… • It answers the question: “How do we know?” 3

5/28/2014 What is a “Quality Program”? “… organization ‐ wide efforts to install and make permanent a climate in which an organization continuously improves its ability to deliver high ‐ quality products and services to customers.” or, “…a business function that leads and manages the organization’s quality control, quality assurance and continuous improvement processes…” Modern Quality Management… • Led by the Quality Management pioneers… – W. Edwards Deming, Phillip Crosby, Joseph Juran Robert Pirsig Joseph Juran, Robert Pirsig, and others • Initially focused on quality processes in manufacturing • But evolved to include the service industries….including the AEC industry Quality Management in the AEC Business… Includes…Quality Products • Our Products are our deliverables (Reports, Plans, Specs, etc.) 4

5/28/2014 Quality Management in the AEC Business… AND…Includes…Quality Service • Our Service starts at the proposal stage and includes client involvement, communications, product delivery and follow ‐ up • The quality of our Products are often unknown until the end of the project, but the quality of our Service is evident from the start of the project to its completion • We ARE in a Service Business Quality Management in the AEC Business… • Client expectations are always high, and… – They often try to make this point in contracts • Requiring, “…error ‐ free…” designs, or • Requiring, “…Highest Quality…” designs, or • Require adherence to their QA/QC • Require adherence to their QA/QC Procedures, or • Require the A/E to submit a QA/QC Plan for their approval – All of which are inadvisable, unenforceable or even uninsurable ! Quality Management in the AEC Business… • AEC’s are legally held to an industry… “Standard of Care” – Based on English Common Law Doctrine – Which essentially requires AEC’s to… y q “…perform your services in a manner consistent with the degree of skill and care used by other competent practitioners of your discipline under similar circumstances…” – Contract terms that add, subtract or alter this concept are unacceptable 5

5/28/2014 Quality Management in the AEC Business… • Quality Resources and Other Standards – AIA (Best Practices, Chap. 14), ACEC, ASCE, etc. – State DOT’s, Federal Government (NRC & DOE) – Amer. Society for Quality (ASQ) – Amer. Society for Testing and Materials (ASTM) Quality Management in the AEC Business… • Quality Certifications – ISO 9000 – NQA ‐ 1 Five Big Reasons Why AEC Firms need to Have a Quality Program… 1. It’s a Fundamental Risk Management Strategy… Designed to deliver consistent and verifiable products 6

5/28/2014 Five Big Reasons Why AEC Firms Need to Have a Quality Program… 2. Insurance • It represents the industry’s Standard of Care • It represents the industry s Standard of Care • Reduced Claims = Reduced Premiums • Reduced Premiums with a Quality Program in place and Quality Program training for staff • Maximize premium discounts up to 35% that are available from Errors & Omissions insurers. Five Big Reasons Why AEC Firms Need to Have a Quality Program… 3. Maintaining a Sustainable Business Operation At the end of the day, “….The Quality of your product (project) will be what is remembered more than cost be what is remembered, more than cost, more than schedule…” And….building strong and sustainable client relationships by meeting their expectations for service delivery Five Big Reasons Why AEC Firms Need to Have a Quality Program… 4. Marketing Advantages • In building client relationships • In demonstrating a professional commitment • Noting certifications if you have them 7

5/28/2014 Five Big Reasons Why AEC Firms Need to Have a Quality Program… 5. Efficiency and Profitability • Building a Quality Culture to “…Do it right the first time…” • Minimizing re ‐ work = efficiency = reduced costs = increased profitability The Big Risks of NOT Having a Quality Program… 1. Design and Delivery Deficiencies • Errors & Omissions • Construction RFI’s • Construction Claims • Consequential Damages is not covered by most Errors & Omissions insurance policies. The Big Risks of NOT Having a Quality Program… 2. It’s less than the “Standard of Care” • Legal Liability • Worse Yet: Having a Quality Program in place and not following it • A claim arising out of committing to a higher standard of care by contract is likely not insurable under Errors &Omissions. 8

5/28/2014 How to Build and Implement a Quality Program A good Quality program requires three things: 1. Leadership & Organizational Organizational Alignment 2. QA/QC Processes and Tools 3. Staff Knowledge and Development Leadership & Organizational Alignment Requires: • Leadership commitment and communication • Set expectations and goals Set expectations and goals • An organizational structure defining authority and accountability • Provide budget and resources Typical QA/QC Organizational Structure Providing: CEO • Autonomy • Direct reporting Quality Program to the CEO Director Principal Principal Principal 9

5/28/2014 QA/QC Processes & Tools Processes: • Developed by management and staff • Comprehensive but scalable • Open to review and continuous Open to review and continuous improvement Focused on: • Senior review of deliverables (reports, plans, specs, calc’s, etc.) by assigned reviewers QA/QC Processes & Tools Tools: • Review documentation forms, signature stamps, filing systems, checklists, resource lists, etc., and… • AND • AND….Regarding QC documentation, Regarding QC documentation remember… “If it isn’t documented, it never happened” Staff Knowledge & Development Training: • Indoctrination training for new staff • Regular training updates for all l i i d f ll staff Senior Staff Mentoring • For all staff 10