December 2022CONSTRUCTIONBUSINESSREVIEW.COM9in the best position to manage and control it. There needs to be a move away from the traditional design-bid-build delivery hard bid model that does not promote collaboration, innovation, prefab, and constructability. All too often, there is a rush to build and many lump sum projects experience scope gaps, cost overruns and schedule delays. Alternative collaborative approaches like design-build are available that engage the general contractor at the same time as the design team. The contractor is involved in constructability reviews and target value design (design to cost rather than estimate costs based on a design), avoiding the `design, then price' situation where it's common to find a project over budget and in need of value engineering or project spec cutting. Integrated project delivery (IPD), although not new, has seen increased popularity. This agreement between at least the owner, primary designer, and primary builder allows early conceptualization of the project and seek to reduce errors and waste PMs must understand the different forms of contracts, risks, and opportunities, and with that they will be better equipped to make better decisionsand minimize redesign problems. Each party's success is directly tied to the performance of other team members.Examples of IPD ExperienceDPR has been one of the early-adopting general contractors that has worked under an IPD agreement and our lean construction experience has helped pioneer the way for increasing their use in the industry, particularly in the US. DPR was part of a working group to create a platform for contracting IPD projects and helped develop Consensus Docs 300 which is a standard multiparty IPD agreement. This document has been in use for approximately 10 years and was initially developed for healthcare projects.Working collaboratively under a traditional project delivery approach becomes more difficult as uncertainty and project complexity increases, and we've found great success in unlocking creativity, driving reliability, successfully delivering complex capital projects, and delivering predictable outcomes using the IPD method. The lessons learned in the U.S. can absolutely be applied in markets around the world.Measures of `Success' in the Continual Improvement of the Construction IndustryFirst, PMs must understand the different forms of contracts, risks, and opportunities, and with that they will be better equipped to make better decisions. And from a technology standpoint, reskilling and upskilling of PMs is certainly going to make an impact. Customers insisting that the PM assigned to their projects is a certified PMP will be a must if we are going to see real improvements in the construction industry. I also hope to see more use of early contractor involvement agreements and progressive, open book design and build agreements that allow for collaboration. In Singapore we are the Design and Builder on two Biotech facilities using AIA 141 Standard Form of Agreement Between Owner and Design-Builder. Standard Forms in Singapore and SE Asia do not promote collaboration. Many owners are unaware of all their options and the background, advantages, and consequences of different delivery methods. It is a goal to see PM professionals extend their learning deeply beyond hard bid and lump sum contracting.As an evolving industry, we should always pride ourselves on continuous learning and growth.
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