Industrial construction and production is increasingly moving to an Integrated Project Delivery method, which is a whole new way of looking at project delivery, but one that offers real benefits and opportunities. In a nutshell, Integrated Project Delivery uses the knowledge and expertise of all team members, including the use of new technologies, to get better results and value through the lifecycle of the project. If that doesn’t sound clear, here are a few examples:
- Instead of the design process starting with architects and engineers sitting in an office off-site somewhere, the design process actually includes everyone who will be part of the project including, but not limited to, the facility managers, the end users, the contractors and the suppliers.
- All processes are made on an outcome-driven decision making procedure and not merely on the basis of lowest cost alternatives.
- Because of increased communication with the end users, designers are aware of the effects of their decisions at the time the decisions are made--there’s no surprises.
- Risk and reward are decisions that involve the input of all stakeholders, and are properly balanced.
Therefore, Integrated Project Delivery (IPD) builds on the expertise of people at all levels of the project, using effective collaboration, transparency, trust, shared risk and reward, value-based decision making, and the utilization of the latest technological opportunities.
Pros of Integrated Project Delivery (IPD)
The construction industry is notorious for the amount of waste that it produces, as much as 30% waste on any given job, according to the Economist. But the construction industry is also notoriously slow in adopting new technologies, making it progress far slower than other industries. A study from the US Bureau of Labor Statistics shows that construction, out of all non-farm industries, saw a decrease in productivity from 1964 to present, while all other industries saw an average 200% increase in productivity. Clearly, something needs to change. But IPD results in greater efficiencies, according to early studies. In one study in the United Kingdom, they estimated a savings of up to 30% in the cost of construction on jobs where integrated project delivery (IPD) was used over a series of consecutive projects, and a 10% savings in individual projects.
Cons of Integrated Project Delivery (IPD)
The downside to IPD is that it is often hard to get stakeholders to sign off on the new project philosophy when they can’t see the savings. As IPD doesn’t cater to the lowest bid on a project, but looks at long-term value as defined by the entire team in the lifecycle of a project, it can be harder to get those entrenched in the old way of doing things to change to this new and tech-heavy system.
Cache Valley Electric has had great success with Integrated Project Delivery and continues to seek out and find opportunities to spread this success into new horizons. Cache Valley Electric is a leader in integrating cutting-edge technology and best business practices to achieve the best possible results on a job.