Is Integrated Project Delivery the Future for the Construction Industry?
For some time, there has been an ongoing debate about model of delivery improves efficiency on construction problems the most: design-bid-build or design-build. ConstructionDive.com reports that there is a new delivery method in construction being implemented to add to the debate – integrated project delivery (IPD). According to the article:
IPD arrangement involves the owner, general contractor, architect, and possibly other major subcontractors and suppliers entering into a mutual contract to collectively determine project goals, costs, risk sharing, compensation and general responsibilities, according to CPA and business advisory firm Padgett Stratemann.
Those stakeholders in the IPD can form a limited liability company (LLC) or use an American Institute of Architects' IPD agreement to spell out all of the details of the project, and they typically waive liability claims against each other.
IPD agreements aim to create more collaborative projects where all stakeholders can offer their opinions, especially at the early stages of the project. If done successfully, according to Thompson, they can:
- allow for faster construction timetables
- keep projects within budget
- reduce the number of change orders
- allow companies to secure their preferred trade partner early on in the process
There was lengthy discussion on the issue at the recent International Builders' Show in Las Vegas. Is this the model we will be seeing in the future? Read the rest of the article HERE.