Blog

Integrated project delivery (IPD) - where are we now?

IPD was the method that was going to transform the construction industry into a model of efficiency and teamwork

By Tim McCurley and Stephen Powell /Special to Healthcare Facilities Today


In 2007, the seemingly new term "integrated project delivery" (IPD) was making its way through the inner circles of contractors, architects and owners. IPD was developed as a method to enhance lagging efficiencies in the construction industry. 

During this time, it was no secret that major capital projects were a high-risk endeavor, potentially wrought with problems, cost overruns, finger pointing and backstabbing. 

Furthermore, relationships began quickly deteriorating, problems ensued and the building owners were left holding the bag. IPD was the method that was going to transform the construction industry into a model of efficiency and teamwork. 

Now, after approximately seven years, many of the “beta test” projects have been completed using the IPD Model. What have we learned? And, is it truly a transforming delivery model?

Is it relational?

IPD is billed as being a relational delivery method due to the Integrated Form of Agreement (IFOA) or tri-party contract which provides financial incentive to mitigate risk. This is a true statement from a contracting stance. 

Many IPD contracts are developed to hold the project team members accountable when dealing with project risks. This is helpful to the lower tiered subcontractors and consultants who, in a traditional process, would usually bear the most risk in project issues. 

In an IPD process, teams are incentivized by dealing with these issues quickly in order to get them completed in the most efficient and cost effective manner. If this doesn’t happen, it will increase costs which will in turn increase risks to their own incentives and profits.

Regardless of the delivery model, it is still impossible to contract trust. What held true in a traditional project still holds true in IPD. Teams must be able to trust one another. 

The IPD team could possibly be the biggest factor in determining the success of a project. CBRE Healthcare has facilitated engagements where contractors, architects and owners believe they are ready for IPD only to find themselves slipping right back into traditional project delivery methods. 

Just saying you are using IPD does not make it true. The attitude and culture must be sincere to ensure success. 

McCurley is a principal consultant with CBRE Healthcare. Powell is a  senior consultant with CBRE Healthcare.

Read the article with full graphics.

 



June 26, 2014


Topic Area: Blogs


Recent Posts

Contaminants Under Foot: A Closer Look at Patient Room Floors

So-called dust bunnies on hospital room floors contain dust particles that turn out to be the major source of the bacteria humans breathe.


Power Outages Largely Driven by Extreme Weather Events

Almost half of power outages in the United States were caused by power outages.


Nemours Children's Health Opens New Moseley Foundation Institute Hospital


Code Compliance Isn't Enough for Healthcare Resilience

Intensifying climate risks are pushing hospitals to think beyond code requirements and toward long-term resilience.


Ribbon Cutting Marks First Phase Completion for New Montefiore Einstein Facility

The second phase is expected to be completed in the second half of 2027.


 
 


FREE Newsletter Signup Form

News & Updates | Webcast Alerts
Building Technologies | & More!

 
 
 


All fields are required. This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.