Integrated Project Delivery

Landon Lonsberry, P.Eng

• Experienced Project Engineer and Project Manager on high profile pipeline replacement and abandonment/decommissioning projects.

• Subject matter expert on pipeline decommissioning and abandonment.

• Authored decommissioning standards, developed and executed pipeline cleaning runs, developed and navigated regulatory applications and hearings, and estimated future decommissioning and abandonment projects.

• Presenter at pipeline conferences and member of industry committees looking to establish guidelines for the abandonment of aging pipeline infrastructure.

Chris Bayley, P.Eng, PMP

• Project Manager and professional Engineer with 20 years’ experience in the oil, gas and energy industries.

• Managed scope, schedule, budget, quality, and safety of front-end engineering and detailed design phases of major pipeline projects.

• Experienced in providing support during the construction phase and coordinating project turnover to operations.

• Champion of collaborative project management, aligning the interests of all stakeholders, and creating a successful team environment to achieve a common goal.

ABOUT PLEX PROJECTS

We are a team of engineers and project managers

with a strong set of experience in complex pipeline

projects. We understand favorable projects will

result from accommodating effective stakeholder

engagement, safety, risk management, regulatory

and environmental compliance, and cost and

schedule certainty.

Our team understands the entirety of pipeline

projects from the pipeline owner’s perspective and

as such have adopted a unique delivery model

focused on driving quality, safety, cost, and

schedule certainty.

By engaging the key team members throughout

the project lifecycle, Plex ensures that Precise

planning results in effective execution.

OUR WHY

The vision of Plex was borne out of our frustrations while

managing major pipeline projects for Canada’s largest pipeline

company. Using the traditional approach to deliver pipeline

projects created a disconnect between engineering design and

construction that consistently led to costly change orders and

schedule delays, poor quality, and broken relationships.

We utilize the fundamental alignment of interests and collaboration

to consistently and reliably execute projects on schedule and on-

budget without the creation of adversarial interactions typically

created by conventional project delivery methods.

Traditional Project Delivery

Traditional Project Delivery

As the Project kicks off and changes against the original agreement

occur, EPCs and contractors are driven to protect their profit margins and

win the next project.

Owners want to see the facility or pipeline operating at the planned start

time. From an owner’s perspective the sooner they can realize operating

revenues the better.

Example: Cromer Cleaning Project

• Installation of temporary traps

• Loading of a Cleaning Train

• Multiple batches of chemistry and water

• Propel Cleaning Train using N2

• Receipt and disposal of the cleaning train

• Collection of Samples from water

Example Project Results

• Contractor - $500 K →$2.5 MM

• Engineering Consultant - $50 K → $125 K

• Schedule - 1.5 months → 3.5 months

Single Contract

Shared Risk

Shared Compensation

Project Owner

EPCM Consultant Pipeline Contractor

Integrated Project Delivery

1. Early involvement of key participants

• EPCM and Pipeline Contractor selected together

2. Shared risk and reward based on project outcome

3. Jointly developed and validated targets

• Workshops in early phases of projects to openly share

corporate targets. The parties need to be able to openly

discuss their goals and concerns and to trust the

information being provided by their prospective teammates.

4. Reduced liability exposure

• Alternate contract document

5. Joint project control

• Open communication throughout project lifecycle

Integrated Project Delivery

“IPD achieves statistically significant improvements in 14 metrics

across six performance areas: quality, schedule, project changes,

communication among stakeholders, environmental, and financial

performance. The major contribution of this paper is demonstrating that

IPD provides higher quality facilities faster and at no significant cost

premium.”

Quantifying Performance for the Integrated Project Delivery System as Compared to Established Delivery Systems

Mounir El Asmar, Ph.D., M.ASCE 1; Awad S. Hanna, Ph.D., F.ASCE 2; and Wei-Yin Loh, Ph.D.https://www.ipda.ca/research-performance/industry-research

Mosaic Centre,

Edmonton, AB

Integrated Project Delivery

EVALUATION OF INTEGRATED PROJECT DELIVERY ON THE PERFORMANCE OF CONSTRUCTION PROJECTSby Andrew W. Olsen https://minds.wisconsin.edu/bitstream/handle/1793/66682/MS_Thesis_Olsen_Andrew.pdf?sequence=1

Example: Right-of-Way Planning Utilizing IPD

Example: Construction Execution Planning Utilizing IPD

Benefits

• Efficient execution, resulting in:

• higher productivity to achieve schedule

milestones

• repeatable cost certainty

• open communication resulting in improved

quality metrics

• fewer changes required during field work

• Improved relationships with external stakeholders

• Improved team culture, leading to increased morale and retention

• Faster integration into operations

Benefits

• Creates Alignment within the IPD team

• Creates Visibility - removes excuses and creates accountability

• Creates Empowerment by

• getting the right information

• to the right person

• in the right format

• at the right time

• Creates Benchmarking for continuous improvement

The Plex Value Proposition

• Resources are provided at cost

• Development of high value engineering and execution plans

• Development of a highly accurate project estimate based on the

team’s input

• Generation of a fixed price contract for the construction of the

project

• EPCM Consultant’s and Pipeline Contractor’s profits contingent upon successfully meeting the project objectives

Next Steps

• Determine an appropriate project for IPD implementation

• Create a Team

• Project Owner

• EPCM Consultant (Plex)

• Pipeline Contractor

• Steering Committee

• Plan and Execute!

Additional Reading

• Integrated Project Delivery Alliance (www.ipda.ca)

• Industry Research

• Tools

• “The IPD Framework”

• Chandos Construction https://www.chandos.com/expertise/integrated-project-delivery/

• Mosaic Centrehttps://www.primedmosaiccentre.com/how-we-did-it/volume-3-ipd-process/

• “Basis for an Integrated Project Delivery Team”

CONTACT US

We look forward to collaborating with you.

Landon Lonsberry P.Eng

President and CEO

780.999.9145

llonsberry@plexprojects.ca

Chris Bayley P.Eng, PMP

Vice President and COO

780.982.7327

cbayley@plexprojects.ca