In­te­grated project de­liv­ery gains ac­cep­tance as it shows re­sults

Modern Healthcare - - CONSTRUCTION & DESIGN - By An­dis Robeznieks

In­te­grated project de­liv­ery, a build­ing process that gets ar­chi­tects, en­gi­neers and con­struc­tion man­agers out of their si­los and work­ing col­lab­o­ra­tively, is gain­ing mo­men­tum as it demon­strates it can cut costs and speed project com­ple­tion.

Of the 151 com­pa­nies par­tic­i­pat­ing in this year’s Mod­ern Health­care Con­struc­tion & De­sign Sur­vey, 51% said they had been part of an IPD team in 2013.

In health­care, the con­cept was born partly out of frus­tra­tion among hospi­tal of­fi­cials who had to deal with “pro­fes­sion­als who weren’t act­ing pro­fes­sion­ally,” said Andrew Quirk, se­nior vice pres­i­dent for Skan­ska USA and na­tional di­rec­tor of its Health Care Cen­ter of Ex­cel­lence in Nashville.

Chicago-based Gil­bane Build­ing Co., with 91 IPD projects in its 2013 port­fo­lio, is a leading prac­ti­tioner of the process. “If prop­erly im­ple­mented early in the project, the in­te­grated team in­sti­tutes open, col­lab­o­ra­tive, project-ori­ented goals which re­sult in cost- ef­fec­tive and timely built fa­cil­i­ties that are of the high­est qual­ity,” Gil­bane of­fi­cials wrote in their sur­vey re­sponse.

DPR Con­struc­tion re­ported that us­ing IPD led to an “eas­ier to build project in the field” and saved the com­pany both time and money. DPR worked on 21 IPD projects in 2013, in­clud­ing Uni­ver­sal Health Ser­vices’ Te­mec­ula (Calif.) Val­ley Hospi­tal, com­pleted by the com­pany’s New­port Beach, Calif. of­fice. DPR and Turner Con­struc­tion fin­ished the 140-bed hospi­tal last year at a cost of $1.07 mil­lion per bed—far be­low the state aver­age of $1.8 mil­lion per bed.

“IPD con­trib­uted to mak­ing the hospi­tal one of the most cost-ef­fec­tive hos­pi­tals ever built in Cal­i­for­nia and raised the com­mit­ment and sense of own­er­ship among the seven-party con­trac­tual IPD team,” said Te­mec­ula Val­ley CEO Dar­lene Wet­ton.

Mem­bers of the Amer­i­can In­sti­tute of Ar­chi­tects are cred­ited with cod­i­fy­ing IPD prin­ci­ples in a 2007 guide­book.

IPD teams “can in­clude mem­bers well be­yond the ba­sic triad of owner, ar­chi­tect, and con­trac­tor,” the guide- book said. Teams may em­ploy a va­ri­ety of con­trac­tual ar­range­ments, but shar­ing risk and re­ward is a uni­fy­ing tenet of the IPD con­cept.

Though gain­ing in pop­u­lar­ity, the idea of shared risk causes some com­pa­nies and hos­pi­tals to hes­i­tate be­fore fully com­mit­ting to IPD, Skan­ska’s Quirk said.

A typ­i­cal IPD fi­nan­cial model calls

for the cre­ation of a project con­tin­gency fund.

If a project comes in on time and un­der budget, con­trac­tors are re­warded with a share of the sav­ings. If the fund is de­pleted by de­lays and cost over­runs, the ex­tra ex­pense comes out of con­trac­tor fees—as well as the hospi­tal’s pocket.

The Great Re­ces­sion slowed the IPD move­ment’s mo­men­tum. Richard Galling, pres­i­dent and chief op­er­at­ing of­fi­cer of Brook­field, Wis.based de­vel­oper Hammes Co., said some hospi­tal oper­a­tors were mov- ing to­ward IPD, but pulled back dur­ing the eco­nomic slow­down. Some went back to the tra­di­tional “hard bid” process, think­ing they could get a bet­ter price, but ul­ti­mately did not, Galling said.

Both Skan­ska and Hammes re­ported that they worked on only three IPD projects in 2013. “It’s a good ve­hi­cle, but it’s not the an­swer for ev­ery­one,” Galling said.

The leading health­care IPD firm in the Mod­ern Health­care sur­vey was Haskell, a Jack­sonville, Fla.-based in­te­grated de­sign, en­gi­neer­ing and con­struc­tion firm.

Haskell re­ported that it had 100 IPD projects last year.

Last March, Haskell fin­ished work on the Scripps Pro­ton Ther­apy Cen­ter in San Diego, and it has an Au­gust 2015 com­ple­tion date for the Mary­land Pro­ton Treat­ment Cen­ter in Bal­ti­more, to be op­er­ated by the Univer­sity of Mary­land.

Jim Ea­ton, Haskell’s vice pres­i­dent and health­care di­vi­sion leader, said the process is a nat­u­ral evo­lu­tion of the de­sign-build meth­ods the com­pany has used since its found­ing in 1965. “The lines be­tween de­sign- build and truly in­te­grated project de­liv­ery are go­ing to dis­ap­pear,” Ea­ton said. “It’s def­i­nitely se­man­tics now.”

Work was com­pleted last March on the Scripps Pro­ton Ther­apy Cen­ter in San Diego, which was built us­ing IPD.

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