Under the traditional construction paradigm, the three major parties — owner, architect and contractor — are theoretically working toward the same goal: getting a structure built.
But, in reality, it's rarely that simple. The owner is trying to get its project completed as quickly as possible within — or under — budget. The designer wants its plans followed to the letter. And the construction company is trying to do the best possible work without losing control of its costs. All of these objectives don't always gel with one another and, when they don't, conflicts can arise.
To prevent such discord, many jobs are operating under a relatively new paradigm: integrated project delivery (IPD). Although this approach certainly puts the concept of teamwork to the test, it's proven successful on a wide variety of projects.
Defining the term
Figuratively speaking, IPD eschews the traditional "silo" approach to construction and replaces it with a more collaborative boardroom-table approach. That is, instead of the owner passing its concept down to the architect who, in turn, passes its plans down to the contractor, all come together as equals and teammates bound by a single contract.
Thus, bidding for the job in question has much less to do with price and more to do with who will be best able to communicate and collaborate effectively. Although any subcontractors involved probably won't be considered primary team members, they'll need to sign off on the contract and be aware of its perhaps unusual nature.
IPD agreements are generally set up with a guaranteed maximum price (GMP) clause that sets a maximum at-risk amount for the job. The same clause, however, also creates a pool of incentives for the team to shoot for. The American Institute of Architects offers sample agreements as well as a complete look at IPD projects in its Integrated Project Delivery: A Guide, which is available via its Web site (http://www.aia.org).
Revolving around BIM
Lately, IPD projects have been widely associated with a specific construction technology that's also gained popularity in the industry. That technology is Building Information Modeling (BIM). This computerized modeling system covers every facet of a building project, from CAD drawings to work schedules to manufacturer recommendations for building components.
Along with generating specifications and drawings, BIM allows everyone on an IPD project to access the same updates, changes and other information in the same place. BIM also operates continuously, so it shows not only how physical components look (such as 3-D), but also when each facet of a structure will be built (4-D) and how much each component will cost (5-D).
Plus, BIM can detect conflicts in building design and alert team members with detailed computer visualizations of each part in relation to the total project. This function, in particular, makes it perfectly suited for IPD jobs, wherein designers and builders are working in close collaboration.
Assuming the risks
Among the basic objectives of IPD is the elimination of change orders. When the owner, architect and contractor work together, nothing should change unexpectedly and cause the need to negotiate additional payments or extended deadlines.
Of course, that doesn't mean IPD eliminates the risk of conflict. A core team that doesn't get along may never get a job off the ground, so it's important to choose co-collaborators carefully. As a show of goodwill, some contracts include a waiver preventing litigation and calling for arbitration or some other form of alternative dispute resolution.
Another potential risk is a hesitant surety. Some bonding firms are leery of anything outside the norm and may make you jump through a few extra hoops before undersigning an IPD job. Their primary fear is usually an unclear delineation of duties among the parties.
Thinking lean
Ultimately, IPD is an incarnation of the "lean construction" movement that began several years ago. As the economy and many local construction markets keep contractors on the financial defensive, IPD can serve as a means to reduce conflicts and speed efficiency. But the team chemistry must be right.
