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To “IPD” or not…that is the question (I think)

Posted by admin on August 16, 2009
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I am no Shakespeareshakespeare To IPD or not...that is the question (I think)..but this is a topic that I think deserves some additional dialog and discussion…so, I am witting this more to gain your insights than as an informational post. The concept of IPD (Integrated Project Delivery for those of you not actively involved in the design and construction disciplines) is not brand new, but is getting a great deal more “play” since the AIA (American Institute of Architects) began to adopt and actually perpetuate the concept of IPD. Now, I know that many of you are not going to agree with all that I am going to comment on, and frankly, that is great. This topic is far from having any consensus or unanimity…far from it. Like any new idea or concept or methodology, your past and current paradigms will shape the lens from which you look at this subject…which makes this discussion all the more interesting to me.

For the sake of those not actively involved in this discussion, allow me to give some history:

1. There are three primary delivery methods for the delivery of a construction project: Design/Bid/Build, Design/Build and Construction Management (CM). All have pros and cons….but the trend over the past decade has been toward some form of design/build or negotiated agreement vs. D/B/B (there are a multitude of hybrids for each of these methods of project delivery)

2. According to the California chapter of the AIA in 2007, the definition of IPD isAIA To IPD or not...that is the question (I think):

Integrated Project Delivery (IPD) is a project delivery approach 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 effi ciency through all phases of design, fabrication and construction. Integrated Project Delivery principles can be applied to a variety of contractual arrangements and Integrated Project Delivery teams will usually include members well beyond the basic triad of owner, architect, and
contractor. At a minimum, though, an Integrated Project includes tight collaboration between the owner, the architect, and the general contractor ultimately responsible for construction of the project, from early design through project handover.

3. The AIA further states is it position paper:

Integrated Project Delivery uses business structures, practices, and processes to collaboratively use the talents and insights of all participants in the design, construction and fabrication process. Beginning when the
project is fi rst conceptualized, the integrated process continues throughout the full life cycle of the facilities.

4. Finally, the AIA states:

Integrated Project Delivery is built on collaboration. As a result,
it can only be successful if the participants share and apply common values and goals.

Now….that last part is the section of the position paper that I agree with wholeheartedly…Integration without Collaboration is nothing more than a facade…a ruse…putting lipstick on a pig. If we are integrated, because we are all sitting around the same table, but do not collaborate, WHY BOTHER!

Now, I am a huge proponent of collaboration…I love a term that Doc Rivers, coach of the Bosten Celtics, used with his team. It is UNBUTUI am who I am because of who we ALL are.. It is further defined as:

A person with Ubuntu is open and available to others, affirming of others, does not feel threatened that others are able and good, for he or she has a proper self-assurance that comes from knowing that he or she belongs in a greater whole and is diminished when others are humiliated or diminished

I was serving with Cogun, Inc. when IPD first started to make noise in the market place. I immediately started to do research and read the position paper from the AIA (you need to understand that I am kind of weird…I actually enjoy ready building code books as well…I also have a music degree…what does that tell you about me?). I spoke to several people on the topic and even had one of the Cogun team participate in some think tank meetings on the subject. During that time, I used to describe IPD as what our (Cogun) delivery method was but on steroids. I still believe that to an extent, but believe that there are other components that many firms do not adopt to really make IPD function like it should. Let me give you some of the atrtributes of what I believe are the tenants for a productive IPD project:

1. The primary responsibility of each member of an IPD team is to fulfill the objectives and goals of the client being served…not our own agenda
2. Every team has a leader….we will work to support that leader as that leader supports the agreed upon objectives and goals of the team, including the client
3. The client/owner is a vital part of the team….they must be at the table….heck…it is their project and money and not the rest of the teams
4. We all have expertise, but they are limited and silo’ed if they are not expressed and exercised in a collective format
5. Integration is not merely a gathering of a group of people to accomplish a task….it is the proactive, servant-hearted collaboration of this integrated group of people.
6. If I have been asked to serve on an IPD team and I do not believe that I can be a contributing part of the solution or am not able to commit the resources to meet the projects objectives, I will voluntarily withdraw from the team without fear of retribution or of being ostracized from future projects.
7. I must be willing to participate in a “give and take” process with the entire team in order to meet the objectives of the project from the perspectives of
a. Price….initial and ongoing..and usually in an “open book” setting
b. Design
c. Function
d. Schedule
e. Delivery
f. Sustainability
g. Life Cycle (I knew there would be a piece of this for Cool Solutions Group…thank you Lord)
8. I must only drink Global Need Coffee made by a man with spiked hair (OK, not really…just want to make sure you are still with me)
9. If I have a grievance, I will first approach the person with whom I have the issue and try to resolve it in private. If that is unsuccessful, I/we agree to take it to the project leader….and if necessary to the entire project team. I then agree to adhere to the collective agreement of the team.

Now….where do I not agree with IPD, at least as described by the AIA? I do not agree with the assumption of “shared risk.” How can members of the team who’s entire contract value is less that 1-5% of the total project cost have the same risk as someone with 60+% of the total financial aspect of the project? I don’t think that works. I also do not adhere to the notion that there should be a separate LLC established for the IPD to enter into. I do believe in shared accountability and shared responsibility, but based on my understanding of the AIA position, the idea of shared risk does not ring true to me.

So…to “IPD” or not….how would you answer that? You can learn more from the AIA as well as the IPD Association.

More on this at a future time

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7 Comments


  1. tdatx

    All should share in the financial upside of the project, as indicated in the AIA version of the concept of IPD; however, only one party holds the risk? Risk aversion is what keeps the adversarial relationship active between owner, contractor, and consultants. This runs deep – it is even in the study material for the ARE. Until this model is shifted thoughtfully, these “silos” and barriers will continue to stand; we’ll just call it by another name.

    August 17th, 2009 at 11:16 am


  2. TIm

    Thanks for the input. I agree that if there is not a tweaking of the “risk” issues and better understanding of the responsibility and accountability that we will be re-baking existing systems and process and just calling it something new. Lord knows we don’t need that. Our clients deserve better than that.

    August 17th, 2009 at 11:36 am

    Author Comment

  3. Ron Geyer

    Nice work, Tim. Check out Rex Miller’s (and others’) work on this topic at http://thecrerevolution.com/

    August 19th, 2009 at 8:29 pm


  4. rex miller

    We have a chapter that talks about the shared risk/reward components of a teaming approach. Shared risk/reward is proportional. If your piece of the cost and profit pie is 3% then your risk is a percentage of that 3%.

    This post touches very lightly on the different elements of IPD.

    The owner is a large part of its success. If their business plan is not vetted by the team, if the team is not brought in before design begins, if the owner is not part of that shared risk/reward equation then most of the benefits of IPD get diluted if not lost altogether.

    August 20th, 2009 at 9:57 am


  5. TIm

    Thanks Rex. Can you elaborate on how the shared risk/reward component works? If you are the GC and have a contract for $5 Million, with a fee of 7%, and the AVL designer has a fee of $75,000 for design services only and the A/E has a fee of $300,000 (6% of the total), how is the risk and reward divided among the team?

    By the way, I totally agree that the owner MUST be part of the team and must also be part of the risk and reward equation. Excellent point.

    August 20th, 2009 at 10:03 am

    Author Comment

  6. David B Dial

    IPD is a great delivery method. We’ve done 3 projects using the process. But, like Tim says it still growing from infancy into a toddler. Using IPD right now is like saying Barbecue or BBQ or Bar B Que – depends upon the team’s uniqueness and experiences. That is it’s greatest strength. A team member is selected by its ability as an individual by only put on the team if they can work well with others and see the project from multiple points of view. Instead of painting a 2D image from one perspective , you get a 3D sculpture, that is fully fleshed out from multiple perspectives, giving you a more complete project.

    August 20th, 2009 at 12:51 pm


  7. comperio C3 | 10 Trends in Church Facility Development and Life Cycle Management

    [...] IPD thinking – IPD stands for “Integrated Project Delivery” which is the current buzz in the construction world.  In essence, it is a mind set that all [...]

    July 23rd, 2011 at 7:42 am

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