INTEGRATED PROJECT DELIVERY

Introduction

Declining Productivity
X Productivity in the construction industry has been on the decline for over a
decade (Tucker, 1986).
X Because of its influence, overall productivity is best equated with labor
productivity. The effective utilization of labor must be increased if
productivity is to be improved.
X On some projects, as few as 20% of the theoretical work hours are used in
actually putting work in place.
X Other problem factors include organized labor and the sophisticated
bargaining requests now being used, the increase in size and complexity of
present-day projects, legal restrictions, the competency of the project
participants, the overlapping of the design and construction phases, company
procedures, increased paperwork, and the educational system.
X To improve productivity, management must improve. Opportunities can be
found in planning, client involvement, communications, design,
constructability, technology, and many other areas.
Construction Industry Problems
X The construction industry has suffered from a productivity decline
since the 1960s while all other non-farm industries have seen large
boosts in productivity.
X The problems in contemporary construction include buildings that are
behind schedule and over budget as well as adverse relations among
the owner, general contractor, and architect.
X Using ideas developed by Toyota in their Toyota Production
System and computer technology advances, the integrated project
delivery (IPD) method is designed to solve these key construction
problems.
X The new focus in IPD is the final value created for the owner and the
finished building rather than each participant focusing exclusively on
their part of construction without considering the implications on the
whole process.

Construction Industry Problems (cont.)

X The IPD method brings all participants together early with

collaborative incentives to maximize value for the owner.
X This collaborative approach allows informed decision
making early in the project where the most value can be
created.
X The close collaboration eliminates a great deal of waste in
the design, and allows data sharing directly between the
design and construction team eliminating a large barrier
to increased productivity in construction.
 Integrated project delivery (IPD)

X Integrated project delivery (IPD): is a collaborative alliance of people,

systems, business structures and practices into a process that harnesses,
joins, the talents and insights of all participants to optimize project
results, increase value to the owner, reduce waste, and maximize
efficiency through all phases of design, fabrication, and construction.

X Integrated Project Delivery (IPD) leverages early contributions of

knowledge and expertise through the utilization of new technologies,
allowing all team members to better realize their highest potentials while
expanding the value they provide throughout the project lifecycle.

Integrated project delivery (IPD) --- (cont.)

X Integrated project delivery: is a delivery system that

seeks to align interests, objectives and practices, even in
a single business, through a team-based approach. The
primary team members include the architect, key
technical consultants as well as a general contractor and
key subcontractors.
X The IPD system is a process where all disciplines in a
construction project work as one firm, creating faster
delivery times, lower costs, no litigation and a more
enjoyable process for the entire team – including the
owner.
Integrated project delivery (IPD) --- (cont.)
X 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, triangle, of owner, designer and
contractor.
X At a minimum, though, an integrated project includes
tight collaboration between the owner,
architect/engineers, and builders ultimately responsible
for construction of the project, from early design through
project handover.

Integrated project delivery (IPD) --- (cont.)

X 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 first conceptualized, the integrated process continues
throughout the full life cycle of the facility.
X Integrated Project Delivery encourages early contribution of knowledge
and experience and requires proactive involvement of key participants.
X Responsibility is placed on the most able person with decisions being
made on a “best for project” basis.
X Although it is possible to achieve Integrated Project Delivery without
Building Information Modeling, many researches, e.g. AIA California
Council, recommended that Building Information Modeling is essential to
efficiently achieve the collaboration required for Integrated Project
Delivery.
Essential Principles
X Integrated Project Delivery is built on collaboration.
X As a result, it can only be successful if the participants share and apply
common values and goals.
X The Integrated Project embodies many of the following attributes:
1. Mutual respect
2. Mutual benefit
3. Early goal definition
4. Enhanced communications
5. Clearly defined open standards
6. Appropriate technology
7. High performance
8. Leadership

Essential Principles (cont.)

1. Mutual respect: In an integrated project, owner, architect,
consultants, contractor, subcontractors and suppliers understand the
value of collaboration and are committed to working as a team in the
best interests of the project.
¾ To harness the collective capabilities of the integrated team, all
key participants should be involved as early as possible with
multiple disciplines and interests represented.
¾ Roles are not restrictively defined, but assigned on a “best
person” basis.
Essential Principles (cont.)
2. Mutual Benefit: All members will benefit from integrated project delivery.
¾ Because the integrated process assumes early involvement by more
parties, the compensation structure must recognize and reward early
involvement.
¾ Compensation should be based on the value added by an organization and
risk should be equitably, fairly and justifiably, allocated.
¾ Integrated projects will use innovative business models to support, rather
than discourage, collaboration and efficiency.

Essential Principles (cont.)

3. Early Goal Definition: Project goals are developed early and agreed
upon by all participants.
¾ Insight of each participant is valued in a culture that promotes
and drives innovation and outstanding performance.
¾ True value engineering is obtained by collaborative focus on the
project goals, including system performance throughout the
facility lifecycle.
4. Enhanced Communication: Focus on team performance is based on
communication among all participants that is open, straight and
honest.
¾ Responsibilities are clearly defined in a no-blame culture leading
to identification and resolution of problems, not determination of
liability.
Essential Principles (cont.)
5. Clearly Defined Open Standards: Open and interoperable data
exchanges based on a disciplined and transparent data structure is
essential to support integrated project delivery.
¾ Enhanced communications between all participants is made
possible with open standards.
¾ All technologies used in an integrated project should use open
standards to eliminate the costly practice of integrating every
application (and version) with every other application (and
version).
¾ Interoperability exists on the human level through transparent
business exchanges, supporting these exchanges with open
standards completes the goals of integrated project delivery.
¾ An open standard is a standard that is publicly available and has
various rights to use associated with it, and may also have
various properties of how it was designed (e.g. open process).
¾ There is no single definition and interpretations vary with usage.

Essential Principles (cont.)

6. Appropriate Technology: Integrated projects will often rely on
cutting edge technologies.
¾ Technologies should be specified at project initiation, to
maximize functionality, generality and interoperability.
6. High Performance: Integrated projects will lead to optimized design
solutions, higher performance buildings, and sustainable design.
7. Leadership: Although each participant is committed to achieving
project goals, leadership should be taken by the person or
organization most capable with regard to specific work and services.
¾ Often, the design professionals and contractors.
Principles of IPD

X IPD promises better outcomes, but outcomes will not change unless the
people responsible for delivering those outcomes change.
X Thus, achieving the benefits of IPD requires that all project participants
embrace the following Principles of Integrated Project Delivery:
1. Mutual Respect and Trust: In an integrated project, owner, designer,
consultants, constructor, subcontractors and suppliers understand the
value of collaboration and are committed to working as a team in the best
interests of the project.

Principles of IPD (cont.)

2. Mutual Benefit and Reward: All participants or team members benefit from
IPD.
¾ Because the integrated process requires early involvement by more
parties, IPD compensation structures recognize and reward early
involvement.
¾ Compensation is based on the value added by an organization and it
rewards “what’s best for project” behavior, such as by providing
incentives tied to achieving project goals.
¾ Integrated projects use innovative business models to support
collaboration and efficiency.
Principles of IPD (cont.)
3. Collaborative Innovation and Decision Making: Innovation is stimulated when
ideas are freely exchanged among all participants.
¾ In an integrated project, ideas are judged on their merits, not on the
author’s role or status.
¾ Key decisions are evaluated by the project team and, to the greatest
practical extent, made unanimously.
4. Early Involvement of Key Participants: In an integrated project, the key
participants are involved from the earliest practical moment.
¾ Decision making is improved by the influx of knowledge and expertise of
all key participants.
¾ Their combined knowledge and expertise is most powerful during the
project’s early stages where informed decisions have the greatest effect.

Principles of IPD (cont.)

5. Early Goal Definition: Project goals are developed early, agreed upon and
respected by all participants.
¾ Insight from each participant is valued in a culture that promotes and
drives innovation and outstanding performance, holding project
outcomes at the center within a framework of individual participant
objectives and values.
6. Intensified Planning: The IPD approach recognizes that increased effort in
planning results in increased efficiency and savings during execution.
¾ Thus the thrust of the integrated approach is not to reduce design effort,
but rather to greatly improve the design results, streamlining and
shortening, reorganizing, the much more expensive construction effort.
 Principles of IPD (cont.)
7. Open Communication: IPD’s focus on team performance is based on open,
direct, and honest communication among all participants.
¾ Responsibilities are clearly defined in a no-blame culture leading to
identification and resolution of problems, not determination of liability.
¾ Disputes are recognized as they occur and promptly resolved.
8. Appropriate Technology: Integrated projects often rely on cutting edge
technologies.
¾ Technologies are specified at project initiation to maximize functionality,
generality and interoperability.
¾ Open and interoperable data exchanges based on disciplined and transparent
data structures are essential to support IPD.
¾ Because open standards best enable communications among all participants,
technology that is compliant with open standards is used whenever available.

Principles of IPD (cont.)

9. Organization and Leadership: The project team is an organization in its own
right and all team members are committed to the project team’s goals and
values.
¾ Leadership is taken by the team member most capable with regard to
specific work and services.
¾ Often, design professionals and contractors lead in areas of their
traditional competence with support from the entire team, however
specific roles are necessarily determined on a project-by-project basis.
¾ Roles are clearly defined, without creating artificial barriers that chill
open communication and risk taking.
Integrated project delivery (IPD)

X IPD combines ideas from integrated practice and lean construction to solve
several problems in contemporary construction such as low productivity and
waste, time overruns, quality issues, and conflicts during construction among the
key stakeholders of owner, architect and contractor.
X The growing use of building information modeling (BIM) in the construction
industry is allowing far greater information collaboration between project
participants using IPD and considered an important tool to increasing productivity
throughout the construction process.
X Unlike the design–build project delivery method which places the contractor in
the leading role on a building project, IPD represents a return to the "master
builder" concept where the entire building team including the
owner, architect, general contractor, building engineers, fabricators,
and subcontractors work collaboratively throughout the construction process.

Use of Technology in IPD

X The adoption of IPD as a standard for collaborative good practice
on construction projects presents its own problems.
X As most construction projects involve disparate stakeholders, traditional IT
solutions are not conducive to collaborative working.
X Sharing files behind IT firewalls, large email attachment sizes and the ability
to view all manner of file types without the native software all make IPD
difficult.
X The need to overcome collaborative IT challenges has been one of the drivers
behind the growth of online construction collaboration technology.
X Since year 2000, a new generation of technology companies evolved
using SaaS to facilitate IPD in a smooth and efficient manner.
Use of Technology in IPD

X This collaboration software streamlines the flow of documentation,

communications and workflows ensuring everyone is working from 'one version
of the truth'.
X Collaboration software allows users from disparate locations to keep all
communications, documents & drawings, forms and data, amongst other types
of electronic files, in one place.
X Version control is assured and users are able to view and mark up files online
without the need for native software.
X The technology also enables project confidence and mitigates risk thanks to
builtin audit trails.

Construction collaboration technology

X Construction collaboration technology refers to

software applications used to enable effective
sharing of project-related information between
geographically dispersed members of a
construction project team, often through use of a
web-based Software as a service platform.
Software as a Service (SaaS)
X Software as a service (SaaS) is a software licensing and delivery model
in which software is licensed on a subscription basis and is centrally
hosted.
X It is sometimes referred to as "on-demand software".
X SaaS is typically accessed by users using a thin client via a web browser.
X SaaS has become a common delivery model for many business
applications, including office and messaging software, payroll processing
software, DBMS software, management software, CAD software,
development software, virtualization, accounting, collaboration,
customer relationship management (CRM), management information
systems (MIS), enterprise resource planning (ERP), invoicing, human
resource management (HRM), talent acquisition, content management
(CM), antivirus software, and service desk management.

Software as a Service (SaaS)

X SaaS has been incorporated into the strategy of all leading enterprise
software companies.
X One of the biggest selling points for these companies is the potential to
reduce IT support costs by outsourcing hardware and software maintenance
and support to the SaaS provider.