The recent Advancing Integrated Project Delivery (IPD) conference in Nashville highlighted a compelling case for considering IPD on projects that carry significant and unusual risks. Where traditional contracting methods may not necessarily incentivize individual team members to proactively manage those risks, the formal teaming approach of IPD can foster a more collaborative approach, helping mitigate these risks and deliver superior project outcomes.
When to Consider IPD
One consistent theme throughout the conference was the suitability of IPD for projects with unusually high-stakes risks. For example, one case study showcased an overdue upgrade to a wastewater treatment plant that happened to be located adjacent to protected waterways. The project team recognized the potential environmental consequences of even minor mishaps, and leveraged IPD to ensure full team engagement in risk mitigation.
Engaging Team Members in IPD… or Not?
The panel Epsilon participated in explored ways that team members may be engaged on an IPD project – without necessarily being a formal partner (and without the associated financial ties to the risk and profit pools).
The panel acknowledged that there are instances where specialty sub-trades and subject-matter-experts (SMEs) should be included as a formal IPD partner. One suggestion is to analyze each particular team member’s potential impact on the primary risks and goals of the project. The higher chance of direct impact, the more likely a formal IPD engagement with that particular team member could make sense.
If formal membership in the IPD contract is not the best fit, there are other methods to get team members engaged in the IPD process – and to get the most out of that team member – particularly if they represent an unusual element of the project, such as a prefabricated, modular Off-Site Constructed (OSC) system.
In those cases, Epsilon shared how Design Assist has proven very effective in leveraging a partner’s expertise to achieve the most positive impacts of OSC on a project. Design Assist can work in parallel with IPD processes since they share many of the same elements – for instance, a transparent Target Value Delivery process that utilizes the best Lean construction tools such as A3 and Pull Planning.
The 2024 IPD conference provided valuable insights into the power of IPD and OSC in delivering successful projects. By understanding the key factors to consider, and the most effective strategies for determining team engagement, project teams can harness the full potential of these approaches.
If you’re considering IPD or OSC for your next project, Epsilon is ready to assist. Our expertise in risk management and Lean construction can help you navigate the complexities and achieve optimal results. Contact the Epsilon team to start the conversation.
