Integrated Project Delivery: What AEC Project Owners and Contributors Need to Know

By Akio
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UCSF Medical Center Mission Bay IPD Construction 01

UCSF Medical Center Mission Bay: An IPD success story. 
Image source: www.ucsfmissionbayhospitals.org

What is IPD?

Integrated project delivery (IPD) is a collaborative building delivery method.

IPD integrates diverse stakeholders—owners, engineers, architects, construction companies, contractors, and government agencies—to form a collaborative team under one contract. IPD also incorporates a variety of systems, practices, and business and financial structures. It is a joint venture approach, with shared risks and rewards.

clicktotweetClick to Tweet: “IPD is a joint venture approach
for #AEC with shared risks & rewards”

Successful IPD has been achieved through many different approaches, including design-assist, design-build, and public-private partnership.

The goal of IPD is faster delivery of a high-quality, cost-effective project.

Traditional Delivery

A project not utilizing IPD can be a fragmented process. In traditional project delivery, various project contributors typically don’t work together efficiently.

Often, teams are assembled on a “just-as-needed” basis. The process is linear and segregated, and information, including costs, is not shared.

Risk is individually managed, while compensation—or reward—is individually pursued.

The result is an overrun budget and schedule, yielding project outcomes below expectations.

Benefits of IPD

Conversely, a project utilizing IPD allows project team members to work together as a single, virtual company. In an IPD approach, key project stakeholders are assembled early in the process.

As a result, IPD leverages the experience, talent, and input of team members from the start.

clicktotweetClick to Tweet: “#IPD leverages the experience,
talent & input of team members from the start”

Information is openly shared, and decision-making is faster in regards to scheduling, budgeting, and materials. With the right IT infrastructure, IPD can help manage costs, safety, and field conflicts, resulting in reduced waste and increased productivity during a project life cycle.

Coordinated IPD phases, such as conceptualization and design, result in a more efficient—and potentially shorter—construction phase than traditional delivery. The project risk is shared. Compensation is based on collaboration and tied to the project’s overall success. Individual actors have the potential to profit more than under a traditional model.

The AEC industry is faced with global market challenges, such as efficiency, productivity, and high costs. IPD can solve industry challenges and achieve successful outcomes by enabling collaboration among project experts through all phases of design, fabrication, and construction.

Case Study: UCSF at Mission Bay

A recent example of a public works IPD success story is the $1.5-billion University of California, San Francisco Medical Center (UCSF) at Mission Bay in San Francisco, CA.

The collaborative project team comprised the owner, designers, the contractor, and 17 subcontractors. The design-build challenge called for integrating three separate hospitals along one common spine within an 878,000-square-foot structure.

Additional challenges included changing legislation, workflow practices, and technology over an 8-year life cycle.

Furthermore, 18 months after construction began, UCSF added cancer-treatment services to its design, requiring an additional 175,000 square feet. The team segregated out this revised area as a new project to control overall scheduling and budgeting.

Despite the revised design, the UCSF Medical Center was completed in June 2014, one week ahead of schedule, and had a $200-million reduction in budget from the initial estimate.

clicktotweetClick to Tweet: “IPD enabled @UCSFMBHospitals construction
to finish ahead of sched & $200M under budget”

UCSF Medical Center Mission Bay IPD Construction 03

UCSF Medical Center Mission Bay.
Image source:  www.ucsfmissionbayhospitals.org

Overcoming the Challenges of Adopting IPD

The complexity and size of a project, as well as differences in business models, will influence how willing stakeholders are in participating in the IPD process. The idea of sharing information, balancing financial risk, and being project-focused presents an enormous challenge for companies whose previous experience is based solely in a traditional delivery method.

To be successful, AEC companies will need to overcome a fear of change and be open to collaboration, transparency, and trust. Adopting IPD also has the perception of liability. A contractual agreement assigning risk to each party, however, will adjust participant liability.

Keys to IPD success include:

  • selecting the right project delivery strategy based on project size, complexity, and schedule
  • selecting the right team
  • choosing the right contract
  • establishing an effective compensation structure
  • and implementing an operating model aligned with processes and resources.

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“5 Keys to IPD Success”

Adhering to the core principles of IPD—mutual trust, shared risk and reward, and open communication—are crucial in achieving team integration and overall project success.

Finally, a common collaboration platform, integrated project management tools, and a 3D BIM system to enable the open exchange of data are essential to the successful implementation of an IPD approach. Cloud-based programs are particularly useful for tying together project contributors from all corners of the globe.

IPD Offers a Better Collaboration Framework

Collaboration among the owner, contractors, and design professionals is based on shared information and risk/reward. In the IPD method, the entire team is communicating and is on the same page throughout the project, enabled by collaborative technologies.

The outcomes are improved efficiency and productivity, higher-quality and cost-effective design and construction, faster delivery, reduced liability, and shared profits.

clicktotweetClick to Tweet: “Integrated Project Delivery: What AEC
Project Owners and Contributors Need to Know”


Related Resources

Optimized Construction Industry Solution Experience

Civil Design for Fabrication Industry Solution Experience

Collaborative and Industrialized Construction Solutions from Dassault Systèmes


References: http://www.enr.com/articles/38058-health-care-best-project-ucsf-medical-center-at-mission-bay

 

Watch the “Optimized Construction” Industry Solution Experience in Action [VIDEO]

By Akio
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NOW AVAILABLE: a demonstration video of Optimized Construction from Dassault Systèmes.

In this webinar, you will observe interactions between a general contractor and a subcontractor, facilitated by Optimized Construction on the 3DEXPERIENCE platform.

Optimized construction demo video 1

When the subcontractor shares a 3D model with the general contractor, it’s a smooth exchange. Multiple project contributors may be employed by different organizations and still work together seamlessly within a single environment.

In the Design-Review process, the subcontractor reviews and validates an installation, and makes a suggestion to enhance the work instructions.

An interactive Work Breakdown Structure enables the general contractor to segregate project tasks by type, and delegate each task to the appropriate worker. The status of each task is tracked within the 3D model.

Dashboards offer various views, including a Phase Gate view and an Issue Summary view, for the general contractor to manage the project using integrated project plans.

Watch the video to witness Optimized Construction in action:

Optimized construction demo video 2

Optimized Construction is ideal for integrating project data, tracking progress, and bringing together the full project team – including owners, architects, engineers, general contractors, fabricators and subcontractors – on a single, intuitive, collaborative platform.

Watch now.

A “Perfect Storm” for AEC Industry Transformation

By Akio
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shutterstock_122817211

Click to TweetClick to Tweet: A “Perfect Storm”
for #AEC Industry Transformation

It’s no secret that the AEC industry is suffering from a surplus of waste: wasted materials, wasted time spent on rework and change orders, waste from highly fragmented processes.

However, what the industry is beginning to realize is that it’s not the first group to think, There must be a better way.

The aerospace industry is one recent example; in the 1990s, companies such as Boeing began to look at technologies and processes used in other industries to tighten their supply chain and manufacturing processes. A switch to all-digital modeling made this possible.

Also necessary was a switch in mindset. Aerospace professionals had to switch their thinking from “project” to “product,” and adopt product lifecycle management tools that would deliver increased value to the end-user.

With these 2 steps, AEC professionals can likewise optimize their processes:

Step 1. Adopting Revised Business Models

According to Hector Lorenzo Camps, founder of PHI Cubed Inc., the industry is looking for ways to improve, but to truly move forward will first have to revise its compensation and business models.

Click to TweetClick to Tweet: “To move forward, #AEC industry
1st must revise its comp & business models” @HectorCamps

Although design-build contracts are increasingly popular, there remains too little true partnership among all parties involved in the design, construction and operations processes.

Today’s typical contracts emphasize distinct roles for all players in order to help control liability.

“Many relationships in the industry are strained because of the adversarial nature of the industry standard contracts that pin professionals against each other to divide risk,” Camps says.

New collaborative forms of agreement—namely, Integrated Project Delivery—remain slow to take off as AEC professionals explore new liability rules and shift from a “best for me” to a “best for project” mentality.

Click to TweetClick to Tweet: #AEC is shifting (slowly) from
“best for me” to “best for project” mentality.

Tied to this need to collaborate is another necessary step for AEC professionals: the need to shake their reliance on a 2D, paper-based management process.

Step 2. Adopting Tools for Better Integration

Until all industry players make the switch to 3D processes, there will be a problem with what Camps calls “two versions of the truth with documentation, one in 2D and the other in 3D.”

Many firms are working with a mix of 2D CAD and 3D BIM to accommodate all parties’ preferences.

“Contractually, firms go with the 2D documents, which often are obsolete and predate the model. Builders under pressure, wanting to build from the best available data, are asking to build from the model and produce 2D documents after,” Camps says. “The coordinated model needs to drive the dimensional and informational control of the project and the field implementation documents. The contractual language needs to reflect this.”

Camps believes owners—who ultimately stand to gain the most from collaborative projects—will drive this evolution to 3D.

“All they need to do is write into their contracts the information management strategy. As long as the roles, responsibilities and use case for information are defined, and intellectual property is dealt with, they should have no problem getting professionals to deliver digital documents,” he says.

Why Now Is The Time For Change

The good news? The AEC industry is already beginning to adopt the tools and processes that will make transformation possible.

“We have the perfect storm for real industry transformation as significant as the industrial revolution,” Camps predicts.

Click to TweetClick to Tweet: .@HectorCamps predicts a “perfect storm
for #AEC transformation as significant as #IndustrialRevolution”

First, AEC professionals are beginning to borrow concepts from manufacturing. To further reduce waste and improve quality, the industry is looking to close the gap between design and fabrication. Lean construction is one such effort, as the industry attacks waste by taking lessons learned from Lean Manufacturing and Just in Time delivery models.

Second, Camps points to a number of technology solutions becoming available that may further speed improvement.

For example, the advent of cloud computing is making it easier than ever for all players to work together in a more tightly connected process.

As Camps points out, AEC companies generally have far fewer employees than manufacturing industries, making it potentially more difficult to invest in an expensive data management system. Cloud computing can allow even small firms to participate in building lifecycle management without having to invest in prohibitively expensive data management systems.

Click to TweetClick to Tweet: Cloud computing allows small firms to
participate in #BLM without investing in expensive systems

By putting data on the cloud, it’s also typically easier for various parties to share data and resources related to a project.

“This ad hoc approach to PLM makes it very easy for the AEC industry to adopt the benefits of integration and collaboration without all the forward structuring that would happen if they had to form a unique corporation in order to integrate their processes,” Camps says.

In addition, the Internet of Things is making it easier to move digital models from the drawing table to the field, giving contractors and designers rapid insight into potential problems. And Camps even points to rapid manufacturing, such as 3D printing, as a potentially promising technology for optimization, as these tools could someday make it possible to produce one off building components while maintaining the economies of scale of standard offsite production facilities.

Beyond technology, however, today’s growing engagement from public owners looking to spend more wisely is invigorating further innovation in connectedness.

The most carefully watched case in point is the UK’s Level 2 BIM requirement for federal buildings, set to become effective in 2016.

“It’s expected that by 2019, BIM Level 3 will be required. Level 3 in essence is ‘full collaboration between all disciplines by means of using a single, shared project model which is held in a centralized repository,’” Camps says.

He adds, “By that definition, they just described the 3DEXPERIENCE Platform.”

Related Resources

Collaborative, Industrialized Construction Solutions from Dassault Systèmes

Spotlight on PHI Cubed: Guiding the AEC Industry Toward Greater Levels of Integration

Spotlight on MEMKO: Pushing Collaboration Across the Project Life Cycle to Revolutionize Design and Construction

Spotlight on Impararia: Reducing the Gap Between Aerospace Optimization and AEC Inefficiency



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