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 […]
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
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
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
Healthcare owners continue to report restricted budgets and rapidly growing markets, making it clear that the industry must adapt. Selecting the right partners to improve team culture on IPD projects is one of the first steps to master. A 2021 R&D initiative between Sutter Health, Boulder Associates, The Boldt Company,
Are you a project manager who is still dealing with static PDF construction drawings, outdated Excel sheets, duplicate data entry, and mistakes that happened because contractors didn’t ask questions or didn’t have all the necessary information to complete their jobs properly? Let’s look at an example. You are building a
The construction industry is a vital component of our society, providing the infrastructure and buildings necessary for daily life. In healthcare, for example, we build to help people improve their health and well-being, and we save lives. Because our modern world is constantly changing and evolving, our industry needs to
In my previous posts in this series, I discussed Who Benefits from Innovation in Design and Construction? and Buildings as Products: Is the Construction Industry Prepared for a New Paradigm? In this third article, I elaborate on why I believe that Integrated Project Delivery (IPD) is not the answer to
The current dynamics and structure of the design and construction industry are not set up to properly reward companies and individuals to do the necessary work for innovation and to take the risks that are inherent in trying something new that may not ultimately work out or may not produce
According to the Oxford dictionary, to innovate means “to make changes in something established, especially by introducing new methods, ideas, or products.” Innovation is the action or process of innovating. Innovation inherently is something that hasn’t been done before. Why don’t we have more innovation in design and construction? It
The Pavilion is one of the largest hospital projects in the United States and the largest capital project in the University of Pennsylvania’s history. The 1.5-million-square-feet building was finished after five years of construction in October 2021 and houses 504 private patient rooms and 47 operating rooms on 17 floors.
Whether you are new to Lean IPD, are a seasoned practitioner who is regularly onboarding new members to large project teams, or simply want a refresher course to stay up-to-date with the lean principles, the new course Introduction to IPD is for you! After the success of IPD – An
The healthcare industry is growing. According to Revista’s construction report, “from June 2018 to June 2019 over 21 million square feet of medical office space have been delivered across the country” (Revista, Hilda Martin, 2019) and this number is expected to continue to grow. The report further states that “preliminary
Are you one of those people who think that Scrum is for a bunch of software nerds who sit around programming all day? Maybe it’s time to shift your perspective. Yes, Scrum originally took hold in the Software industry as companies realized how Scrum allowed them to adopt and react
How HGA Optimizes Productivity Leveraging Lean Practices Sometimes in a service organization, productivity can be like a rollercoaster. There are times when everyone is working on billable projects, and there are times when people have slack periods in the office and bridge unproductive time with tasks that are not billable.