There’s been a lot of talk lately
about IPD (Integrated Project Delivery), but with it has come many
misconceptions, misunderstandings and miscommunication about what IPD really means.
The American Institute of
Architects (AIA) defines IPD as "a
project delivery method that integrates people, systems, business structures
and practices into a process that collaboratively harnesses the talents and
insights of all participants to reduce waste and optimize efficiency through
all phases of design, fabrication and construction.”
The Integrated Project Delivery
method contains many specific components, including continuous involvement of
the owner and key designers and builders from early design through project
completion,
an alignment of the business
interests of all parties through shared risk/reward, and joint project control
by the owner, key designers and builders. As you’d expect, a true IPD model is
truly integrated, sharing and spreading responsibilities and rewards among all
parties.
As an architecture firm, we are
seeing many requests for proposals that request IPD, but also refer to other
delivery methods such as design-build, stipulated sum and even P3—all in the
same proposal. This indicates to me that our clients are interested in IPD but
are unsure exactly what’s involved. This can be troublesome, as a confusing RFP
puts not only the contractors and consultants at risk but the project itself.
IPD isn’t a new model—it’s been
around in one way or another for many years, though true IPD projects are few and far between. It takes a special
client and project team that fully agree to all the terms that an IPD project
requires. After talking to many contractors, consultants and even clients, my
experience is that most do not fully understand exactly what’s involved in a
true IPD contract.
Everyone is willing to improve the
construction process, and a modified
IPD can be the tool to do so. Many so-called IPD projects are just this: a
modified IPD contract that conforms to the ideology of an integrated project.
Construction companies, consultants, suppliers and, most importantly, the
client all want to be a part of a successful project.
With a little knowledge and a
desire to improve how we design and construct buildings we can change the
process for the better. We can incorporate aspects of IPD and modify the
contract so all parties involved are comfortable and happy with the outcome,
and as we do more and more of these IPD-type projects, the parties involved
will become more familiar and comfortable with the process and we can introduce
more aspects of a true IPD contract.
Currently, at HDR | CEI, we already
do many aspects of Integrated Project Delivery simply as good business practices.
Educating our clients and the project team are key to a successful IPD project
and to making everyone comfortable with the process and the contractual obligations.
People are often confused with the
differences between Integrated Project Delivery (IPD) and Integrated Design
Process (IDP). In addition to the contractual obligations of an IPD project, it
also includes aspects of the integrated design process. Both require the
project team to collaborate together in a specific manner for the benefit of
the project and ultimately for the benefit of the project team, ensuring a
successful project.
IPD and IDP differ in some key
aspects. IDP projects do not require all parties to have a “business interest” to
the point of shared risk and reward. Financial gain is not necessarily tied to
a successful project outcome.
Having all parties
involved, including the owner, consultants and construction company, at the
onset of a project is beneficial. It facilitates an environment in which all
parties agree to share information and ideas, and are willing to compromise and
work together. Dialogue between all parties is open and communicative, egos are
left at the door and input is expected and appreciated from all levels.
We do many projects using an IDP
approach. Any project with careful collaboration between the consultants,
client, contractors and suppliers is an IDP project. A client or owner can
specify IDP as part of the contractual obligations of participating in a
project without the financial risk/reward of a typical IPD project.
However, when specifying that a
project will incorporate IDP, the expectations have to be clearly defined early
on. A roadmap of how collaboration is to occur and what is to be expected from
all parties involved needs to be clearly laid out in advance with sufficient
time allocated to collaboration and dialogue.
If you are considering an
Integrated Project Delivery model for your next project, be clear to your team
exactly what your expectations are, select a team with experience and a willingness
to collaborate in a way that benefits the project. Those are the keys to a
successful IPD project.
