Integrated Project Delivery (IPD) - Revision history

Amani at 22:00, 4 March 2019

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	According to the AIA Californian Counsel (2007a, p. 32), “In a multi-party agreement (MPA), the primary project participants execute a single contract specifying their respective roles, rights, obligations, and liabilities”. Each party’s contributions and interests are known to everyone. Trust is required as compensations come from project success. Project success is dependent on the participants’ commitment to work together as a team. Integrated teams are creative and flexible,		According to the AIA Californian Counsel (2007a, p. 32), “In a multi-party agreement (MPA), the primary project participants execute a single contract specifying their respective roles, rights, obligations, and liabilities”. Each party’s contributions and interests are known to everyone. Trust is required as compensations come from project success. Project success is dependent on the participants’ commitment to work together as a team. Integrated teams are creative and flexible,
	thus making Multi-Party agreements well suited to handle uncertain or complex projects. These type of agreements require team building, thorough planning and negotiation, which needs to take place at an early stage of the project and may be costly. Previous experience with working with the other participants and this type of project is crucial in order to limit the cost of this process. It is further stated that although this type of agreement varies depending on the project needs and participants, there are some shared key attributes ;		thus making Multi-Party agreements well suited to handle uncertain or complex projects. These type of agreements require team building, thorough planning and negotiation, which needs to take place at an early stage of the project and may be costly. Previous experience with working with the other participants and this type of project is crucial in order to limit the cost of this process. It is further stated that although this type of agreement varies depending on the project needs and participants, there are some shared key attributes;
			[[File:Aspects_of_IPD_agreement.PNG‎\|thumb\|right\|500px\|Figure 2: Main Aspects of IPD Agreement <ref name="AGREEMENT"/>]]
	- Parties are bound together by a single agreement or an umbrella agreement		- Parties are bound together by a single agreement or an umbrella agreement

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	- Roles are assigned to the person or entity best capable of performing.		- Roles are assigned to the person or entity best capable of performing.
	~~[[File:Aspects_of_IPD_agreement.PNG‎\|thumb\|right\|500px\|Figure 2: Main Aspects of IPD Agreement <ref name="AGREEMENT"/>]]~~
	Common forms of multi-party agreements include:		Common forms of multi-party agreements include:

Amani at 21:33, 4 March 2019

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	*'''Accountability and risk''': The design-builder accepts risk for designing and constructing the project in accordance with the project criteria and the owner can look to the design-builder as a single point of accountability. In the multi-party model, by contrast, the owner contracts with at least two other parties and yet retains ultimate accountability and risk for decision-making and the project outcome.		*'''Accountability and risk''': The design-builder accepts risk for designing and constructing the project in accordance with the project criteria and the owner can look to the design-builder as a single point of accountability. In the multi-party model, by contrast, the owner contracts with at least two other parties and yet retains ultimate accountability and risk for decision-making and the project outcome.



	In a 2005 paper, Owen Matthews and Greg Howell Matthews, <ref name =''Owen''> '' Owen & Greg Howell (2005) Integrated project delivery An example of relational contracting. Lean Construction Journal Vol 2 #1 April 2005''</ref>, a Florida based constructor, listed four problems with the ‘traditional’ contractual approach:		In a 2005 paper, Owen Matthews and Greg Howell Matthews, <ref name =''Owen''> '' Owen & Greg Howell (2005) Integrated project delivery An example of relational contracting. Lean Construction Journal Vol 2 #1 April 2005''</ref>, a Florida based constructor, listed four problems with the ‘traditional’ contractual approach:

Amani at 21:30, 4 March 2019

2019-03-04T21:30:44Z

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	*'''Integrated Project Delivery: First Principles for Owners and Teams,” July 7, 2008, http://www.agc.org/galleries/projectd/20080707%203xPT%20IPDW%20final.pdf		*'''Integrated Project Delivery: First Principles for Owners and Teams,” July 7, 2008, http://www.agc.org/galleries/projectd/20080707%203xPT%20IPDW%20final.pdf
	This document outlines “first principles” regarding IPD, from a full range of stakeholders. A workshop involved 3xPT Strategy Group members and a broad range of additional owners, general contractors, architects, engineers, subcontractors, attorneys, professional liability professionals, general liability professionals, and sureties. The workshop defined guidelines for integrated project delivery approaches and improved industry outcomes, looking through the lenses of four delivery models (design-bid-build, design-build, construction management at risk, and project alliance). The workshop explored approaches to integration within these models. Four teams explored and defined integration options to generate ideas and insights of the four models. In follow-up sessions, characteristics of IPD identified during the workshop were sifted and refined to arrive at a set of “first principles” of IPD applicable to all delivery constructs. This paper sets forth those first principles, regarding process and organization, scope, performance metrics, tools and methods, and contractual agreements.		This document outlines “first principles” regarding IPD, from a full range of stakeholders. A workshop involved 3xPT Strategy Group members and a broad range of additional owners, general contractors, architects, engineers, subcontractors, attorneys, professional liability professionals, general liability professionals, and sureties. The workshop defined guidelines for integrated project delivery approaches and improved industry outcomes, looking through the lenses of four delivery models (design-bid-build, design-build, construction management at risk, and project alliance). The workshop explored approaches to integration within these models. Four teams explored and defined integration options to generate ideas and insights of the four models. In follow-up sessions, characteristics of IPD identified during the workshop were sifted and refined to arrive at a set of “first principles” of IPD applicable to all delivery constructs. This paper sets forth those first principles, regarding process and organization, scope, performance metrics, tools and methods, and contractual agreements.

			*''' Ghazal Ebrahimi`s THESIS, (2018) STAKEHOLDER PERSPECTIVES ON ADOPTION OF INTEGRATED PROJECT DELIVERY (IPD)'''
			In this thesis, Ebrahimi used qualitative methods to characterize environments supportive of IPD and keys to its successful implementation. Ebrahimi also investigated whether the contractual risk sharing framing of IPD hinder or enhance innovation adoption, and she identified the factors that can impede IPD adoption for public sector projects in British Columbia. Moreover, she found that while executing IPD is perceived to be beneficial in many ways, successful implementations require specific preconditions beyond educating the industry about IPD principles. Success with this method requires the development of novel approaches to project
			planning and management, and early acculturation to collaboration across the AEC industry. IPD was found to be instrumental in addressing some of the barriers to innovation adoption; however, foundational changes to the existing policies, regulations, and programs governing the industry’s operations, and alternative business and financing models are required to alter the industry’s approach towards innovation adoption.

	*'''Lahdenperä, P. (2012). Making sense of the multi-party contractual arrangements of project partnering, project alliancing and integrated project delivery ''' Construction Management and Economics, 30(1), 57–79. doi:10.1080/01446193.2011.648947		*'''Lahdenperä, P. (2012). Making sense of the multi-party contractual arrangements of project partnering, project alliancing and integrated project delivery ''' Construction Management and Economics, 30(1), 57–79. doi:10.1080/01446193.2011.648947

Amani at 20:30, 4 March 2019

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	[[File:Essential_criteria_of_IPD.PNG\|center\|Table 2:essential characteristics/ criteria of IPD ]]		[[File:Essential_criteria_of_IPD.PNG\|center\|Table 2:essential characteristics/ criteria of IPD ]]
	To implement these IPD principles, not only the concept of differing organizational goals needs to be broken, but a system needs to be created where all parties interests and risks are associated with the outcome of that project. Therefore Multi-Party Agreements have been created. The Integrated Project Delivery Agreement (IPDA) is a three-way contract between the owner, the design team and the contractor. Each party’s success is directly tied to the performance of the others. MPA attempts also to increase collaboration even further through a shared “pain/gain” payment structure along with “no blame” contract clauses.		To implement these IPD principles, not only the concept of differing organizational goals needs to be broken, but a system needs to be created where all parties interests and risks are associated with the outcome of that project. Therefore Multi-Party Agreements have been created. The Integrated Project Delivery Agreement (IPDA) is a three-way contract between the owner, the design team and the contractor. Each party’s success is directly tied to the performance of the others. MPA attempts also to increase collaboration even further through a shared “pain/gain” payment structure along with “no blame” contract clauses.


	===Multi-Party Agreements ===		===Multi-Party Agreements ===

Amani at 20:18, 4 March 2019

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	According to the AIA Californian Counsel (2007a, p. 32), “In a multi-party agreement (MPA), the primary project participants execute a single contract specifying their respective roles, rights, obligations, and liabilities”. Each party’s contributions and interests are known to everyone. Trust is required as compensations come from project success. Project success is dependent on the participants’ commitment to work together as a team. Integrated teams are creative and flexible,		According to the AIA Californian Counsel (2007a, p. 32), “In a multi-party agreement (MPA), the primary project participants execute a single contract specifying their respective roles, rights, obligations, and liabilities”. Each party’s contributions and interests are known to everyone. Trust is required as compensations come from project success. Project success is dependent on the participants’ commitment to work together as a team. Integrated teams are creative and flexible,
	thus making Multi-Party agreements well suited to handle uncertain or complex projects. These type of agreements require team building, thorough planning and negotiation, which needs to take place at an early stage of the project and may be costly. Previous experience with working with the other participants and this type of project is crucial in order to limit the cost of this process. It is further stated that although this type of agreement varies depending on the project needs and participants, there are some shared key attributes ;		thus making Multi-Party agreements well suited to handle uncertain or complex projects. These type of agreements require team building, thorough planning and negotiation, which needs to take place at an early stage of the project and may be costly. Previous experience with working with the other participants and this type of project is crucial in order to limit the cost of this process. It is further stated that although this type of agreement varies depending on the project needs and participants, there are some shared key attributes ;
	~~[[File:Aspects_of_IPD_agreement.PNG‎\|thumb\|right\|500px\|Figure 2: Main Aspects of IPD Agreement <ref name="AGREEMENT"/>]]~~
	- Parties are bound together by a single agreement or an umbrella agreement		- Parties are bound together by a single agreement or an umbrella agreement

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	- Roles are assigned to the person or entity best capable of performing.		- Roles are assigned to the person or entity best capable of performing.
			[[File:Aspects_of_IPD_agreement.PNG‎\|thumb\|right\|500px\|Figure 2: Main Aspects of IPD Agreement <ref name="AGREEMENT"/>]]
	Common forms of multi-party agreements include:		Common forms of multi-party agreements include:

Amani at 19:59, 4 March 2019

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	===Multi-Party Agreements ===		===Multi-Party Agreements ===
	~~[[File:Aspects_of_IPD_agreement.PNG‎\|thumb\|right\|500px\|Figure 2: Main Aspects of IPD Agreement <ref name="AGREEMENT"/>]]~~
	According to the AIA Californian Counsel (2007a, p. 32), “In a multi-party agreement (MPA), the primary project participants execute a single contract specifying their respective roles, rights, obligations, and liabilities”. Each party’s contributions and interests are known to everyone. Trust is required as compensations come from project success. Project success is dependent on the participants’ commitment to work together as a team. Integrated teams are creative and flexible,		According to the AIA Californian Counsel (2007a, p. 32), “In a multi-party agreement (MPA), the primary project participants execute a single contract specifying their respective roles, rights, obligations, and liabilities”. Each party’s contributions and interests are known to everyone. Trust is required as compensations come from project success. Project success is dependent on the participants’ commitment to work together as a team. Integrated teams are creative and flexible,
	thus making Multi-Party agreements well suited to handle uncertain or complex projects. These type of agreements require team building, thorough planning and negotiation, which needs to take place at an early stage of the project and may be costly. Previous experience with working with the other participants and this type of project is crucial in order to limit the cost of this process. It is further stated that although this type of agreement varies depending on the project needs and participants, there are some shared key attributes ;		thus making Multi-Party agreements well suited to handle uncertain or complex projects. These type of agreements require team building, thorough planning and negotiation, which needs to take place at an early stage of the project and may be costly. Previous experience with working with the other participants and this type of project is crucial in order to limit the cost of this process. It is further stated that although this type of agreement varies depending on the project needs and participants, there are some shared key attributes ;
			[[File:Aspects_of_IPD_agreement.PNG‎\|thumb\|right\|500px\|Figure 2: Main Aspects of IPD Agreement <ref name="AGREEMENT"/>]]
	- Parties are bound together by a single agreement or an umbrella agreement		- Parties are bound together by a single agreement or an umbrella agreement

Amani at 19:55, 4 March 2019

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	'''3.Inability to coordinate''' - …… no formal effort to link the planning systems of the various subcontractors, or to form any mutual commitments or expectations amongst them. Project organizations looked like 20 or more rubber balls, representing subcontractors, all tethered to a single point by long elastic bands. When the connection point is jiggled, the balls jiggled in all random directions colliding with each other in unusual and unexpected ways.		'''3.Inability to coordinate''' - …… no formal effort to link the planning systems of the various subcontractors, or to form any mutual commitments or expectations amongst them. Project organizations looked like 20 or more rubber balls, representing subcontractors, all tethered to a single point by long elastic bands. When the connection point is jiggled, the balls jiggled in all random directions colliding with each other in unusual and unexpected ways.

	'''4.The pressure for local optimization''' - ~~Each~~ subcontractor fights to optimize their performance because no one else will take care of him. The subcontract … and the inability to coordinate drives us to defend our turf at the expense of both the client and other subcontractors. Remember that everyone on the project other than the prime contractor is a subcontractor. These subcontractors frequently, in their life outside of the subcontract, may be generous, caring and professional. However, since right or wrong is defined by the subcontract, more often than not, they take on a very legalistic and litigious stance becoming an army where the rules of engagement are “Every man for himself.”		'''4.The pressure for local optimization''' - each subcontractor fights to optimize their performance because no one else will take care of him. The subcontract … and the inability to coordinate drives us to defend our turf at the expense of both the client and other subcontractors. Remember that everyone on the project other than the prime contractor is a subcontractor. These subcontractors frequently, in their life outside of the subcontract, may be generous, caring and professional. However, since right or wrong is defined by the subcontract, more often than not, they take on a very legalistic and litigious stance becoming an army where the rules of engagement are “Every man for himself.”


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	:- Risk allocation mechanism: Risk allocation mechanism defined in the tradition delivery methods obstructs the sharing of risks and rewards. Owner’s warranty safeguards contractors against any design fault as long as it is constructed according to plans and specifications. Designers and contractors try to transfer the blame of the problem on the other party in case of any delays, cost overruns or any other issue arising on the construction site.		:- Risk allocation mechanism: Risk allocation mechanism defined in the tradition delivery methods obstructs the sharing of risks and rewards. Owner’s warranty safeguards contractors against any design fault as long as it is constructed according to plans and specifications. Designers and contractors try to transfer the blame of the problem on the other party in case of any delays, cost overruns or any other issue arising on the construction site.


	*'''Technological Issues''':		*'''Technological Issues''':
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	:-Interoperability: Different organizations utilize different IT systems based on their needs and availability. When these organizations form a project team, interoperability issues arise due to an inconsistency of data format and structures <ref name="Moses,S"> '' Moses, S., El-Hamalawi,A.,Hassan,T. M. , 2008. The practicalities of transferring data between project collaboration systems used by the construction industry, Autom.Constr.17, 824''</ref>. Resolving these issues to facilitate uninterrupted information transfer is essential.		:-Interoperability: Different organizations utilize different IT systems based on their needs and availability. When these organizations form a project team, interoperability issues arise due to an inconsistency of data format and structures <ref name="Moses,S"> '' Moses, S., El-Hamalawi,A.,Hassan,T. M. , 2008. The practicalities of transferring data between project collaboration systems used by the construction industry, Autom.Constr.17, 824''</ref>. Resolving these issues to facilitate uninterrupted information transfer is essential.

	*'''Mistrust among project participants''' and adversarial relations among project participants impede communication and sharing Good communication is built on a basis of trust. "The current industry atmosphere is not mature enough for IPD adoption" . The status of owners and contractors are not equal. So, it is hard to have mutual respect and trust between them.		*'''Mistrust among project participants''' and adversarial relations among project participants impede communication and sharing Good communication is built on a basis of trust. "The current industry atmosphere is not mature enough for IPD adoption". The status of owners and contractors are not equal. So, it is hard to have mutual respect and trust between them.

	*'''Lack of professional bodies''' to enhance IPD awareness, thus the understanding of IPD in the industry is rare. In industry, on one side, lack of understanding for industry participants, especially the construction professionals in the top management level, may result in the slow change of attitudes towards IPD and increase the concern that IPD may not be helpful to improve project performance, thus IPD is not selected as the procurement method. On the other side, even though some flexible managers want to try new business models like IPD, it is rare for industry professionals to help them achieve real integration in projects.		*'''Lack of professional bodies''' to enhance IPD awareness, thus the understanding of IPD in the industry is rare. In industry, on one side, lack of understanding for industry participants, especially the construction professionals in the top management level, may result in the slow change of attitudes towards IPD and increase the concern that IPD may not be helpful to improve project performance, thus IPD is not selected as the procurement method. On the other side, even though some flexible managers want to try new business models like IPD, it is rare for industry professionals to help them achieve real integration in projects.


	*'''Organizational issues''':		*'''Organizational issues''':
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	= Conclusion =		= Conclusion =
	Integrated Project Delivery removes impediments to eﬀective project performance, aligns the parties to common goals, and encourages action that benefits the project. It increases the likelihood of project success, but requires rethinking project management and increasing project planning eﬀorts. In addition, legal issues, mistrust among key parties, and lack of owner willingness are major barriers to the use of IPD. To overcome the legal barriers, the support of government and attention from researchers are necessary. Moreover, there is a need to improve the level of awareness of the potential benefits of IPD adoption, thereby enhancing owners willingness. This can be achieved through continuous professional development programs done by professional bodies in the built environment.		Integrated Project Delivery removes impediments to eﬀective project performance, aligns the parties to common goals, and encourages action that benefits the project. It increases the likelihood of project success, but requires rethinking project management and increasing project planning eﬀorts. In addition, legal issues, mistrust among key parties, and lack of owner willingness are major barriers to the use of IPD. To overcome the legal barriers, the support of government and attention from researchers are necessary. Moreover, there is a need to improve the level of awareness of the potential benefits of IPD adoption, thereby enhancing owners willingness. This can be achieved through continuous professional development programs done by professional bodies in the built environment.


	= Bibliography =		= Bibliography =

Amani at 19:44, 4 March 2019

2019-03-04T19:44:54Z

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	:-Interoperability: Different organizations utilize different IT systems based on their needs and availability. When these organizations form a project team, interoperability issues arise due to an inconsistency of data format and structures <ref name="Moses,S"> '' Moses, S., El-Hamalawi,A.,Hassan,T. M. , 2008. The practicalities of transferring data between project collaboration systems used by the construction industry, Autom.Constr.17, 824''</ref>. Resolving these issues to facilitate uninterrupted information transfer is essential.		:-Interoperability: Different organizations utilize different IT systems based on their needs and availability. When these organizations form a project team, interoperability issues arise due to an inconsistency of data format and structures <ref name="Moses,S"> '' Moses, S., El-Hamalawi,A.,Hassan,T. M. , 2008. The practicalities of transferring data between project collaboration systems used by the construction industry, Autom.Constr.17, 824''</ref>. Resolving these issues to facilitate uninterrupted information transfer is essential.

	*'''Mistrust among project participants''' and adversarial relations among project participants impede communication and sharing Good communication is built on a basis of trust. ~~One contractor explained why mistrust blocked IPD implementation:~~ "The current industry atmosphere is not mature enough for IPD adoption. The status of owners and contractors are not equal. It is hard to have mutual respect and trust between ~~them. In this situation, even though the contractors come up with some good ideas to add value, or save money for the owner, I do not think the owner can accept~~ them.		*'''Mistrust among project participants''' and adversarial relations among project participants impede communication and sharing Good communication is built on a basis of trust. "The current industry atmosphere is not mature enough for IPD adoption" . The status of owners and contractors are not equal. So, it is hard to have mutual respect and trust between them.

	*'''Lack of professional bodies''' to enhance IPD awareness, thus the understanding of IPD in the industry is rare. In industry, on one side, lack of understanding for industry participants, especially the construction professionals in the top management level, may result in the slow change of attitudes towards IPD and increase the concern that IPD may not be helpful to improve project performance, thus IPD is not selected as the procurement method. On the other side, even though some flexible managers want to try new business models like IPD, it is rare for industry professionals to help them achieve real integration in projects.		*'''Lack of professional bodies''' to enhance IPD awareness, thus the understanding of IPD in the industry is rare. In industry, on one side, lack of understanding for industry participants, especially the construction professionals in the top management level, may result in the slow change of attitudes towards IPD and increase the concern that IPD may not be helpful to improve project performance, thus IPD is not selected as the procurement method. On the other side, even though some flexible managers want to try new business models like IPD, it is rare for industry professionals to help them achieve real integration in projects.

Amani at 19:27, 4 March 2019

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 :-  Risk allocation mechanism: Risk allocation mechanism defined in the tradition delivery methods obstructs the sharing of risks and rewards. Owner’s warranty safeguards contractors against any design fault as long as it is constructed according to plans and specifications. Designers and contractors try to transfer the blame of the problem on the other party in case of any delays, cost overruns or any other issue arising on the construction site.
 *'''Organizational issues''':
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 :*- Work processes:
 : An organization that is accustomed to their trial and tested work process expects to show resistance to the changes posed by IPD. The resistance can be aggravated by the by lack of awareness about new processes, inept communication of the effectiveness of the new processes and by trepidation of risk and liability involved in new processes. Zipf <ref name="Zipf"> ''Zipf,P. J., 2000. Technology-enhanced project management, J.Manage.Eng. 16, 34''</ref> emphasized the importance of workshops and training to organizational members about how their daily operations will change with the emplacement of new processes.
 *'''Lack of owner's willingness''': Without the owner's willingness, the risk will never be shared among all project participants. In the IPD context, the engaged owner is one of the key factors for project success. In regard to owner willingness, one site manager (contractor) stated "We do not mind early involvement and multiparty contract, since our knowledge in design can help us to solve the problems normally occurring in construction. I don't think the architects have problems with this, either. But the owner is not willing to adopt these strategies. They are the ones who decide which business models to be used, make payment and select the parties to work for them. If they do not want to implement IPD, what can we do?

Amani at 19:18, 4 March 2019

2019-03-04T19:18:50Z

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	*'''Customization''': A one-size-fits-all is not part of the equation in IPD. By its nature, IPD creates an environment that provides custom solutions to design and construction challenges. While there is continuous learning that can be applied to subsequent projects, every engagement provides an opportunity to learn and deliver unique solutions.		*'''Customization''': A one-size-fits-all is not part of the equation in IPD. By its nature, IPD creates an environment that provides custom solutions to design and construction challenges. While there is continuous learning that can be applied to subsequent projects, every engagement provides an opportunity to learn and deliver unique solutions.

	*'''Discoveries and Innovation''': From knowledge and understanding come innovation. IPD practices encourage a situation where discoveries and innovation are likely to occur. It provides a “big room” for the display of information and the working out of ideas <ref name="Ghassemi_IPD"/> (Ghassemi & Becerik-Gerber, 2011, p. 43). Discoveries and innovation might occur serendipitously in such an environment, by the merging of ideas from different disciplines. The resulting ideas, discoveries and innovations will be valuable to the project, increasing value and efficiency~~. increasing knowledge and making changes should be a continuous process, with the goal of the elimination of waste~~.		*'''Discoveries and Innovation''': From knowledge and understanding come innovation. IPD practices encourage a situation where discoveries and innovation are likely to occur. It provides a “big room” for the display of information and the working out of ideas <ref name="Ghassemi_IPD"/> (Ghassemi & Becerik-Gerber, 2011, p. 43). Discoveries and innovation might occur serendipitously in such an environment, by the merging of ideas from different disciplines. The resulting ideas, discoveries and innovations will be valuable to the project, increasing value and efficiency.

	*'''Better Business Continuity''': There is full alignment with the owner’s goals, which makes successfully completing a project on time and within budget greater than traditional delivery methods.		*'''Better Business Continuity''': There is full alignment with the owner’s goals, which makes successfully completing a project on time and within budget greater than traditional delivery methods.