In this article, I am going to dive into the risk and reward plan negotiations in IPD contracts, one of the things that sets Integrated Project Delivery (IPD) apart from other construction delivery models. How do we set up a risk and reward plan? There are several steps to consider […]
How to Negotiate Risk Reward Plans in IPD Contracts READ MORE
One of the biggest challenges project owners, contractors and design firms have is negotiating a contract price and setting a contingency in lean IPD contracts. In a lump sum project, that’s not an issue, as the owner usually chooses the lowest bid for a contract without having any transparency into
Why thinking holistically is important when setting contingencies in IPD contracts READ MORE
In a traditional construction contract, whether it’s lump sum, guaranteed maximum price, CM at risk or design bill, the general contractor in the major trades usually has their profit held. Even if they go over budget, they are not putting their profit at risk. In this article, I am going
Profit at Risk with an IPD Framework READ MORE
The cost structure of IPD contracts is a common question for construction project owners in the early project phase when they are negotiating the value of the contract and at the end of the project. These are some questions to answer: How do we calculate the final cost? Is there
The cost structure of IPD projects READ MORE
What makes IPD (Integrated Project Delivery) contracts different to other forms of agreements for commercial design and construction projects? The primary difference with integrated project delivery lies in a single contract where the owner, the primary designer and the primary builder sign the same agreement. This is often called an
Multi-party Agreements: The Advantages of IPD Contracts READ MORE
In this article, you will read about the most typical delivery models for commercial construction projects across complex industries, such as healthcare, semiconductors or pharmaceutical manufacturing. Design Bid Build Design Bid Build is very common in Public Works and with many private owners. Early in my career, the majority
Four delivery models for commercial design and construction projects READ MORE
How do you select partners for your IPD project? In traditional delivery models, a formal bidding process is used to select partners for a project. Typically, the owner or general contractor will send out a set of documents with instructions to bidders, who will then propose exactly what is on
How to Select Partners for IPD Projects READ MORE
I spent more than ten years working almost entirely on Lean IPD projects delivering over $650M worth of health care operations in Northern California. Of the more than 24 Lean IPD projects delivered by our project management team over 10 years (total value over $4Billion US), 90% of them completed
Why Lean IPD is a Reliable Way to Deliver Complex Capital Projects READ MORE
Building complex capital projects with Lean Integrated Project Delivery has many advantages. Choosing the best contract to encourage a collaborative team right from the start is crucial for a successful outcome. How can you go about this? How can you ensure that the owner, design partners, and builders are collaborating
IFOA and the Advantages of Bringing People Together Faster READ MORE
Complex capital projects across all industries, from health care, oil, gas, mining, manufacturing and power generation all have at least one thing in common. According to research performed by the Construction Industry Institute, they have a high probability of finishing late and over budget. It seems that the larger and
Building Complex Capital Projects with Lean Integrated Project Delivery READ MORE
We are often asked whether negotiating an IPD agreement takes longer than negotiating a traditional agreement, such as a construction manager at risk contract. The answer is probably “yes”, although that answer is incomplete.[1] A better answer, would be that negotiating and crafting the IPD agreement is an important step
Negotiation is the First Collaborative Act READ MORE
Tri-Party vs Multi-Party IPD contracts. The tri –party agreement is certainly a step in the right direction by combining the 3 most influential parties in a building project, the Architect (A), CM/GC (C) and Owner. This can certainly help align the major stakeholder interests to one goal and dramatically reduce
When it Comes to Signing Contracts – The More Signatures the Better! READ MORE
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. When a team is aligned financially, traditional operating systems are
What Is Integrated Project Delivery: A Lean Operating System (Part 2 of 3) READ MORE
An Australian Perspective on Integrated Project Delivery 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 Game The rules
Zero Sum to Win – Win READ MORE
You need to pick your battles at every step whether you are an owner, a designer or a contractor in construction. Depending if you win or lose the battles affects your bottom line. That’s the adversarial relationship among these parties which plagues the industry so deeply that while the non-farm
Friendship In Construction – Part 1 READ MORE