IPD in Healthcare Construction

Integrated Project Delivery (IPD) in Healthcare Construction

In the dynamic world of healthcare construction, where complexity and high stakes are the norm, choosing the right project delivery method is crucial. Integrated Project Delivery (IPD) is one such method that has gained acknowledgment for its collaborative approach, bringing together all stakeholders—from owners and designers to contractors and technology teams—early in the project lifecycle. It involves a contracting method with multiple parties, typically including the owner, designer, and builder, under one contract. This contract structure includes shared contingencies, profit at risk, guaranteed costs, and, if delivered under budget, shared savings.

Overview

IPD is a collaborative approach that aligns all key stakeholders, including the owner, design team, contractors, subcontractors, and technology partners, from the very beginning. Unlike traditional project delivery methods, which often involve stakeholders working in isolation, IPD emphasizes shared goals, risks, and rewards. This encourages a more cohesive and communicative project team focused on delivering a project that is on time, within budget, and fully meets the needs of the owner and end users.

Benefits of IPD

The IPD approach offers specific advantages:

1. Enhanced Collaboration: IPD fosters a collaborative environment where various teams work closely together from the project’s inception. This ensures that needs are fully unified into the overall project plan, minimizing risks of rework and misalignment.

2. Improved Efficiency: Early involvement of various teams helps identify potential issues and solutions upfront, reducing delays and costly rework. This leads to more efficient project execution and smoother paths to achieving project milestones.

3. Cost Control: Engaging all teams in the planning and design phases can lead to more accurate budgeting and cost management, helping to avoid unexpected expenses.

4. Innovation and Adaptation: The collaborative nature of IPD encourages the sharing of innovative ideas and solutions, leading to more creative problem-solving.

5. Streamlined Communication: IPD’s emphasis on open communication channels ensures that stakeholders are always in the loop, leading to better coordination, collaboration, efficiency, and quicker resolution of issues.

Challenges of IPD

While the IPD framework offers many benefits, it also presents challenges:

1. Coordination Complexity: Close coordination among all stakeholders is required to align requirements with overall project goals. This can be complex and time-consuming.

2. Resource Commitment: Early involvement means various teams must commit resources from the start, which can be challenging if the owner’s departments are already stretched thin.

3. Budget Management: Ensuring that all needs, particularly technology needs, are adequately represented and funded within an IPD framework can be challenging, requiring ongoing advocacy and communication.

4. Change Management: Implementing new processes can be met with resistance. Teams must manage change effectively to ensure smooth adoption.

5. Data Security: Managing identity and access across multiple communication systems and project delivery platforms raises concerns about data security and privacy, necessitating robust measures to protect sensitive project information.

IPD Lite

IPD Lite is a streamlined version of IPD that incorporates some of the collaborative principles of IPD without fully adopting the multi-party contractual framework. This approach allows organizations to benefit from the collaborative and efficiency-enhancing aspects of IPD without the need for a comprehensive multi-party contract. This is often used in healthcare construction.

1. Early Involvement: Like IPD, IPD Lite involves early engagement of key stakeholders, including designers, contractors, and sub-contractors, to foster collaboration from the beginning of the project.

2. Expanded Pre-Construction Services: The construction manager’s role in pre-construction services is significantly expanded, often starting at the conceptual design phase. This helps in identifying potential issues early and improving project planning.

3. Lean Practices: Often incorporates lean construction practices to enhance efficiency and reduce waste, even though it may not involve a full IPD agreement.

4. Shared Goals: While it may not include a formal multi-party contract, IPD Lite still emphasizes aligning the goals and incentives of all parties to promote a collaborative working environment.

5. Flexibility: Offers more flexibility compared to full IPD, making it easier to implement in projects where a full IPD agreement might be too complex or costly.

Alternative Methods

IPD is one of several contracting methods that healthcare organizations may choose based on their unique goals, budgets, and project requirements. Other methods include Design-Build (DB), Design-Assist, and Construction Manager at Risk (CMAR), among others. Each approach has its advantages and suitability depending on the specific needs of the project.

Equinox HIT is your HIT construction partner. For more information on how Equinox HIT can guide your organization to manage the IT components of healthcare construction projects successfully, please contact us today.

References

1. Cumming Group. (2024). Integrated Project Delivery in Healthcare Construction: Evolving Strategies for Complex Facilities. Link.

2. ForConstructionPros. (2012). Transition to Integrated Project Delivery with a Hybrid Contract Model. Link.

3. HDR. (2022). 6 Advantages of Integrated Project Delivery. Link.

4. Healthcare Design. (2015). Delivering Results: A Breakdown Of Healthcare Construction Delivery Methods. Link.

5. Healthcare Facilities Management. (2023). Selecting the contract that best fits the project. Link.

6. Lean IPD. (ND). What is Integrated Project Delivery? Link.