Sutter Health ~ Replacement Hospital at St. Luke’s Campus

San Francisco, California

Project Description

The St. Luke’s Campus is one of four campuses of the California Pacific Medical Center (CPMC), an affiliate of Sutter Health. The Hospital was founded in 1871, affiliated with Sutter in 2001, and merged with California Pacific Medical Center (CPMC) in 2007.

With the recognized need for inpatient capacity in the southern half of San Francisco, CPMC tapped HerreroBoldt (a partnership of the Boldt Company and Herrero Builders) to ensure that the needs of the South of Market patient population will be served. The new building will be five-stories high with 141,600 sq. ft.. This acute care replacement hospital will include:

  • OB/GYN

  • 80 licensed beds

  • Medical/surgical

  • Emergency department

  • ICU

  • Urgent care

  • Primary and urgent pediatrics

  • A center of excellence on senior health

Sustainable Features 

The construction estimate includes sustainable design features and will be a LEED certified building. 

Integrated Lean Project Delivery® 

The project has an established Integrated Delivery Project Team, which includes HerreroBoldt, trade partners, Boulder Associates, SmithGroupJJR, Sutter and the Sutter Affiliate. In addition, the IPD Team is lead by the Core Group which is comprised of representatives from HerreroBoldt, Boulder Associates, SmithGroupJJR, Sutter, and a Sutter Affiliate. These groups meet weekly to make design and construction coordination decisions, using processes that were clearly defined at the beginning of the project and are in alignment with the Integrated Form of Agreement (IFOA). 

Target Costing 

In target costing, the budget becomes an influence on design and decision-making, rather than an outcome of design. Designing to target cost requires a fundamental shift from traditional project design, to product design and development. The Integrated Project Delivery Team identifies, develops, and implements innovative strategies to the design and construction by reducing the project budget to meet the target cost. 

Lean Construction Project Delivery 

Lean Construction Project Delivery methodology currently used on this project includes:

  • Interactive scheduling

  • Last planner production management techniques

  • Strategic pull scheduling methodology

  • Building information modeling

  • Electronic submittal and file management

Building Information Modeling (BIM) 

The Integrated Project Delivery Team will rely heavily on BIM as a tool for reducing variation in the field and for testing and evaluating innovative means for designing and constructing the replacement hospital. 

Project Challenges

  • Management and communication of scope requests outside of original program

  • Final approval of EIR (Environmental Impact Report)

  • Alignment of project with owner yearly business plan

  • Achieving target value design costs while maintaining hospital operational and program requirements

  • Coordination and communication with residents, public, and adjacent fully operational hospital during construction 

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Boulder Associates Architects

Boldt's Role

ILPD Partner, Construction Manager, General Contractor

Key Points

  • This project is a cost plus IFOA (Integrated Form of Agreement) where HerreroBoldt and trade Partners are 100 percent at risk. We have to hit our target or no profit will be realized. If the target is exceeded, all parties are compensated with the risk pool, the incentive is for all team members to drive down costs by working more efficiently and eliminating waste.


  • CURT 2018 Construction Industry Project Excellence Merit Winner
  • 2016 AEC Excellence Award