IPD White Paper

Creating Value Through IPD – Integrated Project Delivery How Integrated Project Delivery (IPD) creates value and decreases costs.

by Todd Sullivan

Summary Problems in the modern-day construction industry are many, varied and costly. Typical project challenges include: settling conflicts between owners, general contractors and/ or architects; construction that is behind schedule; and over-budget projects. All of these issues increase costs and create frequent delays. A traditional design/bid/build method is still a widely used approach to project management, often costing owners anguish on several levels. Many times bids are incomplete. Lowball bidding leads to inconsistent quality and uncertain budgets. Not to mention all those change orders...

There is a better way.

Š 2015 The Morse Group All rights reserved.

The Morse Group

Project Effort and Impact

MacLeamy curve (2004)

Defining Integrated Project Delivery Integrated Project Delivery, or IPD, is defined by the American Institute of Architects (AIA) as “a project delivery method that integrates people, systems, business structures and practices into a process that collaboratively harnesses the talents and insights of all participants to reduce waste and optimize efficiency through all phases of design, fabrication and construction.”

Elements essential to the IPD Process include (but are not limited to) the following: - Continuous involvement of the owner, designer, and builders from early design through completion.

- Aligning the risk/reward equation around the project outcome.

- Cooperative control of parties involved.

- A mutual party agreement.

- Limited liability among those involved from primary phases.

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The Morse Group

IPD and Software Advantages Building Information Modeling (BIM) and Revit® BIM is the development and use of software that gives a digital representation of a facility or project and can be used to mimic the construction of the building. It is not only a tool but also a process that is utilized within a collaborative environment to better align the goals of the project. BIM can also reduce potential errors and open up alternative approaches. Using BIM software in an IPD setting, for example, helps foster collaborative effort and increases cost efficiencies through 3-D drafting, quantity takeoffs, materials lists and many other lean construction processes.

Another software commonly utilized to foster collaborative effort and more effective and

efficient project management is Autodesk’s Revit®. Specifically created to partner with BIM, Revit is used for a more detailed approach to the building, specifically Mechanical, Electrical and Plumbing (MEP) engineering, structural engineering and construction. When combined with an IPD approach, Revit enhances insights into the constructability of the building elements. These software tools allow a more thorough understanding of the project and can identify potential issues that could be avoided from the initial phases of the design, with relevant information for multiple trades and contractors, as well as for the owner, designer and building team.

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The Morse Group

Benefits of IPD Quality

In an IPD approach, a high level of quality is maintained because the architects, owners and contractors all play major roles, ensuring continuity through the design of the project.

Each party is in constant contact throughout the process. Plus, the ease with which IPD integrates with sophisticated software leads to more data, and more data leads to a higher quality final product.

Empowerment

With IPD, each party involved has the tools and ability to make informed decisions on a project. Most important, they are empowered to assist in transforming a vision into a reality.

When all parties’ interests are aligned, traditional “barriers” break down and ideas flow more freely.

Budgeting

The goals of an IPD project are established from the beginning and each party has mutually exclusive ideas that are combined to create the most effective budget for the project. The architect has access to the materials lists and pricing. Early and accurate determinations of costs help create a more effective, reality-based budget.

Schedule

Project duration can be condensed. The IPD process encourages early, informed decision-making, which leads to fasttracking the schedule without loss of control.

Minimize Challenges

The IPD method derails the age-old practice of underbidding. Contractors can no longer ignore actual costs and count on change orders to make a profit. The result is less “finger pointing” because fewer disputes arise when each party accepts responsibility.

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The Morse Group

Creating Value The most compelling reason to adopt IPD is the value it creates—for all parties— through better risk management. How? IPD enables owners, designers and build teams to assess potential risks and outcomes right at the start of a project.

So it’s easier to make adjustments that decrease risk and potential negative outcomes. In a traditional plan and spec approach, the design team creates the project, then solicits bids

that drive contractors to a low cost / low bid method. This undercuts quality.

In an IPD approach, the entire team strategizes upfront, sharing ideas, costs and revenues. The information flows more freely, allowing a more transparent process to emerge. The net results are lower costs, better information, and faster, safer, more effective projects that come in on time and within budget.

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The Morse Group

Todd Sullivan

Design/Build Division Manager

Todd Sullivan Certificate No. 031310-215

Contact us For feedback and comments about the content of this whitepaper: 815-266-4200 themorsegroup.com

Autodesk and Revit are registered trademarks or trademarks of Autodesk, Inc., and/or its subsidiaries and/or affiliates in the USA and/or other countries. All other brand names, product names, or trademarks belong to their respective holders. Š 2015 The Morse Group All rights reserved.

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