Delivering an IPD Project
For the past week, I have been heavily involved in assembling a proposal for an Integrated Project Delivery (IPD) project that Faith Technologies is pursuing. As you may know, delivering an IPD project is very different than delivering a typical design-build project. Before a team can assemble a proposal, everyone first needs to thoroughly understand the differences between the two so they can efficiently perform and deliver within this model. Below are some of the questions raised, as well as our team’s approach in answering them.
What does it mean to be an IPD team member?
It means we have the opportunity to be fully engaged at every stage of the design process in an effort to optimize project results.
- Conceptualization Phase: We are able to understand the program and project expectations before one line is drawn in Revit.
- Criteria Design Phase: We have the opportunity to apply our industry knowledge and experience to engineering, design, and installation concepts that will bring the end user the most value.
- Detailed Design Phase: We have the ability to work together as a collaborative IPD team to ensure all target budgets are achieved.
- Implementation Documents Phase: We have the opportunity to develop prefabrication plans alongside other IPD team members while developing pull scheduling strategies with our vendors.
How do we price the project based on little or no information?
Working with an IPD team means that all budgets amongst all the team members are shared openly to create a shared risk / reward environment. This ensures the best value decisions are made for the good of the project and the end user. Typically the project’s budget will have been established by the owner. Based off of that, the preconstruction effort should be tackled using an hourly rate not-to-exceed model, or a fee percentage based off of the potential cost of work. Throughout the four preconstruction phases, each team member brings updated construction budgets to the table that reflect all the decisions made up to that point, including appropriate allowances, agreed upon deductions, and potential additions. With this information, the team can look at the entire project budget and make informed value decisions moving forward.
How is the project delivered once it is awarded?
The benefit of an IPD delivery model is that all team members have the ability to influence decisions throughout the project (Conceptualization Phase through Implementation Documents Phase). The outcomes of this result in a design that aligns with the owner’s program and budget goals. The process also significantly minimizes or eliminates the opportunity for change orders while creating opportunities to share equipment, coordinate installations, and prefabricate components for complicated installs.
The next time you have the opportunity to propose on an IPD project, how would your team answer the questions above?