“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
Multifamily Housing | Dec 7, 2022
Canada’s largest net-zero carbon residential community to include affordable units
The newly unveiled design for Canada’s largest net-zero carbon residential community includes two towers that will create a new destination within Ottawa and form a striking gateway into LeBreton Flats. The development will be transit-oriented, mixed-income, mixed-use, and include unprecedented sustainability targets. Dream LeBreton is a partnership between real estate companies Dream Asset Management, Dream Impact, and local non-profit MultiFaith Housing Initiative.
Student Housing | Dec 7, 2022
Cornell University builds massive student housing complex to accommodate planned enrollment growth
In Ithaca, N.Y., Cornell University has completed its North Campus Residential Expansion (NCRE) project. Designed by ikon.5 architects, the 776,000-sf project provides 1,200 beds for first-year students and 800 beds for sophomore students. The NCRE project aimed to accommodate the university’s planned growth in student enrollment while meeting its green infrastructure standards. Cornell University plans to achieve carbon neutrality by 2035.
Office Buildings | Dec 6, 2022
‘Chicago’s healthiest office tower’ achieves LEED Gold, WELL Platinum, and WiredScore Platinum
Goettsch Partners (GP) recently completed 320 South Canal, billed as “Chicago’s healthiest office tower,” according to the architecture firm. Located across the street from Chicago Union Station and close to major expressways, the 51-story tower totals 1,740,000 sf. It includes a conference center, fitness center, restaurant, to-go market, branch bank, and a cocktail lounge in an adjacent structure, as well as parking for 324 cars/electric vehicles and 114 bicycles.
Geothermal Technology | Dec 6, 2022
Google spinoff uses pay-as-you-go business model to spur growth in geothermal systems
Dandelion Energy is turning to a pay-as-you-go plan similar to rooftop solar panel leasing to help property owners afford geothermal heat pump systems.
Contractors | Dec 6, 2022
Slow payments cost the construction industry $208 billion in 2022
The cost of floating payments for wages and invoices represents $208 billion in excess cost to the construction industry, a 53% increase from 2021, according to a survey by Rabbet, a provider of construction finance software.
University Buildings | Dec 5, 2022
Florida Polytechnic University unveils its Applied Research Center, furthering its mission to provide STEM education
In Lakeland, Fla., located between Orlando and Tampa, Florida Polytechnic University unveiled its new Applied Research Center (ARC). Designed by HOK and built by Skanska, the 90,000-sf academic building houses research and teaching laboratories, student design spaces, conference rooms, and faculty offices—furthering the school’s science, technology, engineering, and mathematics (STEM) mission.
Giants 400 | Dec 1, 2022
Top 100 Office Building Core+Shell Contractors and CM Firms for 2022
Turner Construction, AECOM, Clayco, and Gilbane top the ranking of the nation's largest office building core+shell contractors and construction management (CM) firms for 2022, as reported in Building Design+Construction's 2022 Giants 400 Report.
Mass Timber | Dec 1, 2022
Cross laminated timber market forecast to more than triple by end of decade
Cross laminated timber (CLT) is gaining acceptance as an eco-friendly building material, a trend that will propel its growth through the end of the 2020s. The CLT market is projected to more than triple from $1.11 billion in 2021 to $3.72 billion by 2030, according to a report from Polaris Market Research.
Giants 400 | Dec 1, 2022
Top 40 Parking Structure Contractors + CM Firms for 2022
PCL Construction, Balfour Beatty, McCarthy Holdings, and Level 10 Construction top the ranking of the nation's largest parking structure contractors and construction management (CM) firms for 2022, as reported in Building Design+Construction's 2022 Giants 400 Report.
Contractors | Nov 30, 2022
Construction industry’s death rate hasn’t improved in 10 years
Fatal accidents in the construction industry have not improved over the past decade, “raising important questions about the effectiveness of OSHA and what it would take to save more lives,” according to an analysis by Construction Dive.