Thursday, January 5, 2012
Integrated Project Delivery and the Cost Curve
Integrated project delivery is touted by many as a better mousetrap, a way to use less cheese and catch more mice. Hard data is not yet in to back up some of the more exhuberant claims of increased efficiency, and this may be one reason owners are reticent to grab these new types of agreement. Another reason, posed by my article that appeared in the December Hill Newsletter, may be that integrated project delivery shifts the cost curve to earlier in the project, and this goes against the grain of most developers.
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Roland, I would have to agree with you in that IPD does shift costs upfront AND that most developers don't like spending money upfront, down the middle or in the back end. But there is no saying or agreeing that what most developers want to do is the thing that they should do. I have spent 20 years in design/construct and 10 years doing forensics and i can not tell you how many 'forensic' problems have as a large feeder to their roots what can only be called "a failure to communicate". Projects without a clear definition of design criteria, operating profiles, intended 'use' of the space, etc, etc. And this occurs on developer flip buildings and "buy and hold" owners too. To the extent that IPD enhances communication and in that reduces the chance of misunderstanding, then it has a value strictly on that aspect alone. There are other good points too, but that's another post. Remember, when building a barn - measure twice and cut once.
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