This post is the 2nd of a 3 part series looking at Integrated Project Delivery. The first post focuses on IPD agreements (contracts), this post focuses on IPD as a Lean Operating System, and the final post focuses on culture.
To maximize the value of the contract structure, teams require a new work philosophy focused on efficiency and reliability. A Lean Operating System delivers customer value, through streamlined processes practicing continuous improvement.
"Integrate or disintegrate" was a statement I made while facilitating a multi-day kickoff meeting for a mission critical project. My point to the folks was that only as an integrated team could we achieve the aggressive objectives set for this project. I used the example of the 2004 USA Olympic basketball team for what could happen if we didn't integrate.
The USA committee had assembled Lebron James, Tim Duncan and other high paid superstars to deliver another gold medal as in years past. However, when it came to the semifinal game to decide which team would play for the gold, they were beat by a less talented Argentina team. Why? Because the USA did not perform as an integrated team. Argentina had played together for over a year; the USA team for a few weeks.
In many parts of the World, contracting can seem like the modern-day equivalent of a Roman gladiatorial battle, where a single project cost blow-out can end a promising political career or bankrupt a once profitable company.
The rules of the contest are set out in the construction contract and rival teams of lawyers seek to negotiate their side an early advantage in the battle to come through the introduction of carefully crafted indemnities, notification regimes, liability caps and risk transfer, with little or no consideration as to whether the party that ends up liable for a risk is best able to manage it.
Integrated Project Delivery (IPD) is gaining popularity among owners, contractors, and design teams as a means to unlock creativity, drive reliability, and successfully deliver complex capital projects.
With all of the recent hype about the success of IPD and many large owners looking to pilot their first IPD projects, what exactly is Integrated Project Delivery? This series will explore Integrated Project Delivery as a contract form, a lean operating system and as a transformational culture.
In my role as an “Integrated Lean Project Delivery (ILPD) Coach”, I struggle everyday to understand and address resistance to positive change in the Architectural, Engineering and Construction (AEC) Industry. Many reasons for this resistance have been suggested in various articles and posts. In this first of a two-part blog post, I will share some insights about what I believe are three root causes of resistance.Lean Culture Integrated Project Delivery Read more
A common concept in the construction industry is that there are three legs to a project: Schedule, Cost, and Quality. An owner is advised to pick any two, and thereby sacrifice the third (i.e., you can have cost and schedule, but not the quality you want. Or vice versa, you may get the quality and schedule that you want, but not within your budget.)Target Value Design Integrated Project Delivery Read more
As real estate and capital investments drive the construction industry, and owners/investors are constantly looking for the right balance of programming, quality, safety and cost. They are forced to choose between “low price” or “best value,” two confusing terms whose actual implications are not understood. Many owners, especially those bound by legal requirements, buy “lowest first price.” The truth is that this may not translate into the “lowest final cost” or best value.Lean Culture Integrated Project Delivery Read more
Integrated Projected Delivery can be extremely powerful with the right agreement in place. The key to unlocking to the potential of an Integrated Project Delivery (IPD) undertaking lies in the use of the consensus agreement. My experience as lead architect on projects such as the Johnson Center for Science and Community Life at North Park University has shown that such agreements are essential for IPD projects.Integrated Project Delivery Read more
A recently completed research report studies ten projects that all used multiparty agreements and Lean practices. The conclusion? Integrated Project Delivery (IPD) motivates teams to collaborate and Lean provides the means to achieve it. IPD is sometimes seen as onerous and complex because it demands that owners and project teams negotiate contract terms such as the shared risk/reward pool and terms of fiscal transparency.Integrated Project Delivery Read more
The big buzz phrase in the construction industry is Integrated Project Delivery or IPD. Disney has a concept called ILPD or Integrated Lean Project Delivery. This uses not only a collaborative approach to projects, but also uses the Last Planner System and Lean concepts to eliminate waste, focus on adding value, and continuously improving. Everyone on the project signs an integrated form of agreement that commits to shared risk and reward and cooperation throughout the project.Integrated Project Delivery Lean Culture Read more
Advocate Health Care, one of the largest health systems in Illinois treats more pediatric, heart and cancer patients than any other hospital, operates more than 400 sites of care, 12 acute-care hospitals, a children’s hospital with two campuses, and the state’s largest integrated children’s network – all serving 3.4 million patients. Given its extensive real estate and capital investments, Advocate is constantly seeking the most efficient and innovative project delivery methods possible.Integrated Project Delivery Owner's Perspective Read more
Around the world, shared risk and reward contracts are becoming more prevalent. In the United States several forms of agreements for construction projects including: Sutter Health’s Integrated Form of Agreement (IFOA), the ConsensusDocs 300, and American Institute of Architects (AIA) contracts have provisions for sharing the profit and the losses of a construction project between the owner, contractor, architect, specialty trade contractors, and other service providers.Target Value Design Integrated Project Delivery Read more