The construction industry has suffered from a decline in productivity since the 1960s[4][5], while all other non-agricultural industries have experienced significant productivity gains. Proponents of integrated project execution argue that problems in contemporary construction, such as buildings that are late and over budget, are due to unfavorable relationships between the owner, the general contractor, and the architect. Unlike the design-build project delivery method, where the contractor usually plays the lead role in a construction project, the DPI represents a return to the concept of « prime contractor, » where the entire building team, including the owner, architect, general contractor, civil engineers, transformers, and subcontractors, work together throughout the construction process. Management team: The contract defines a management team that is responsible for delivering the project on time, within budget and in the quality desired by the owner. Some agreements call this the unit group or project management team (LMP) and there are certainly other names. The important concept is that the project is led jointly by a representative of the owner, architect and contractor. Others can be added to this management team. B e.g. a user representative (customer) or other representatives of risk-reward partners. When contractual relationships are properly structured, the IPD approach has repeatedly reduced the number of information requests, change requests, delays, disputes and claims within the project. [1] The risk of these contingencies is managed collectively by the project participants, who place the owner`s objectives above the protection of its final outcome. As explained in this article, the IPD approach facilitates this objective by directly linking the financial incentives of project participants to the achievement of negotiated, agreed and measurable objectives related to the owner`s objectives.
Team members exercise joint control over decisions during the life of the project. AIA`s C191 contract documents facilitate this through an accountability matrix that divides project decisions into different categories and subcategories for each stage of the project lifecycle. Such shared control is best managed in a centralized, web-based database, often referred to as a Project Management Information System (« PMIS »). There are a number of ways to structure ipD relationships to achieve this goal. The accuracy of a particular approach depends on the nature of the project, the dynamics of the team members, and how the owner wishes to manage the risks of the project. In other words, the IPR process and contractual structure can and should be tailored to the specific needs of a particular project. It is important to note that the IPD model discussed below focuses primarily on the structure found in the American Institute of Architects (« AIA ») contract documents C191. [2] ConsensusDOCS 300[3] is another commonly used suite of IPD contracts.
Suffice it to say that you must first familiarize yourself with how ipD works in general before deciding which of these approaches is best for your construction project. Integrated Project Delivery (IPR) is a project delivery model based on a collaborative alliance of stakeholders, each sharing risks and benefits. Key stakeholders (client, architect, contractor, etc.) enter into a single contract that fosters collaboration, optimizes results, reduces waste, and maximizes efficiency and expertise. The IPD contractual agreement is usually signed by a « management team » consisting of the client, the lead designer/architect and the contractor. You are primarily responsible for delivering the project according to the budget, schedule and quality set by the client. Subcontractors and other stakeholders may agree to become « risk-reward partners » (or they may be contractually agreed on the basis of traditional subcontracting agreements). Risk/Return Plan: The contract sets out the conditions under which the parties to the risk or return may lose some or all of the profits if the project does not meet its budgetary and schedule objectives. If all the profit is lost, the owner usually agrees to pay for the project at a cost (including overhead, although this may be limited) so that team members cannot benefit from the project, but they also cannot lose money.
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