“Motivation and Means: How and Why IPD and Lean Lead to Success”, co-sponsored by the Integrated Project Delivery Alliance, explodes several myths about Lean and IPD.
Myth #1: Delivery matters less than choosing the right people; behaviors can’t be dictated by a contract. You won’t get the A Team every time, but you can still foster positive behavior, says principal author Renée Cheng, PhD, AIA, Professor, School of Architecture, University of Minnesota. Think through which players you want on your team, how to create the right culture, and how to get rid of nonperformers.
Myth #2: IPD contracts are too complicated, Lean tools are too rigid. IPD and Lean are “a lot more flexible than people think,” says Cheng. Investing the time up front for designing your IPD and Lean procedures can pay off in huge ROI. Teams also vary in how they use IPD and Lean. It’s not as rigid as commonly believed, she says.
Myth #3: IPD only works on large complex healthcare projects. Teams new to IPD and Lean are at a disadvantage. Cheng says there’s no evidence that small projects cannot benefit from using an IPD and Lean. Moreover, you can have a team that’s new to IPD, or one that has half its team members experienced in IPD and Lean, and both can still work, she says.
Myth #4: Owners aren’t getting best value; or, owners are getting value but the team is not making a profit. Cheng says it’s hard to get at “pure results” for owners because “it usually depends on how well the owner sets the cost and schedule targets.” The research did show that 100% of owners in the study said their IPD/Lean projects met or exceeded expectations.
In terms of meeting schedule, some teams were just a bit over, a number were under. Similarly, with regard to budgets, one project team went over, some were at budget, a number were under.
As for profitability, Cheng says some project teams have reported making 20-30% more in an IPD than under a non-IPD. “I did see teams working collectively with the owner to determine a target cost, and this drove the original allowable cost way below market, and the profit was distributed.”
Myth #5: IPD and IPD-lite are essentially the same; financial incentives and release of liability are no big deal. Cheng says the behavior is “strikingly different” between those who have skin in the game and those who do not. “Those in the signatory pool behave much more collaboratively, there’s a lot more fluidity in how they’re willing to trade scope, and they’re much more willing to call out behavior that’s not productive.”
Finally, there’s a lot more “fun and enjoyment” in true IPD projects, says Cheng—“a lot more time being spent on positive things. It’s very positive and collaborative.”
Related Stories
AEC Tech | Jan 28, 2021
The Weekly show, Jan 28, 2021: Generative design tools for feasibility studies, and landscape design trends in the built environment
This week on The Weekly show, BD+C editors speak with AEC industry leaders from Studio-MLA and TestFit about landscape design trends in the built environment, and how AEC teams and real estate developers can improve real estate feasibility studies with real-time generative design.
Multifamily Housing | Jan 27, 2021
2021 multifamily housing outlook: Dallas, Miami, D.C., will lead apartment completions
In its latest outlook report for the multifamily rental market, Yardi Matrix outlined several reasons for hope for a solid recovery for the multifamily housing sector in 2021, especially during the second half of the year.
Modular Building | Jan 26, 2021
Offsite manufacturing startup iBUILT positions itself to reduce commercial developers’ risks
iBUILT plans to double its production capacity this year, and usher in more technology and automation to the delivery process.
Data Centers | Jan 21, 2021
The Weekly show, Jan 21, 2021: Data centers in a pandemic world, and LGBT certification for AEC firms
This week on The Weekly show, BD+C editors speak with AEC industry leaders about LGBT certification for architecture, engineering, and construction firms, and the current state of data centers in a pandemic world.
Contractors | Jan 20, 2021
Webcor, a major California builder, celebrates its 50th anniversary
Webcor celebrates its 50th anniversary as a major California builder
Multifamily Housing | Jan 20, 2021
Abandoned Miami hospital gets third life as waterfront condo development
The 1920s King Cole Hotel becomes the Ritz-Carlton Residences Miami in the largest residential adaptive reuse project in South Florida.
Market Data | Jan 19, 2021
2021 construction forecast: Nonresidential building spending will drop 5.7%, bounce back in 2022
Healthcare and public safety are the only nonresidential construction sectors that will see growth in spending in 2021, according to AIA's 2021 Consensus Construction Forecast.
Multifamily Housing | Jan 14, 2021
The Weekly show, Jan 14, 2021: Passive House innovations, and launching a design studio during the pandemic
This week on The Weekly show, BD+C editors speak with AEC industry leaders about innovations in Passive House design, and the challenges of building a design team and opening a new design studio during a pandemic.
Multifamily Housing | Jan 11, 2021
McHugh Construction completes 5th-tallest all-residential building in the U.S.
McHugh Construction Completes Two Chicago Apartment Projects for Fifield Cos. and Crescent Heights, Including NEMA Chicago –Tallest All-Residential Building in Chicago and 5th Tallest in North Americ
Multifamily Housing | Jan 8, 2021
Student housing development in the time of COVID-19
Despite the coronavirus pandemic, many college and university residences were completed in time for classes, live or virtual. Here are 14 of the best.