Wednesday, August 5, 2009

IPD, What does it mean contractually?

I'm a member of the Linked in Group, BIM Experts, and someone posted the following question on the BIM Expert discussion board.

IPD - What does it mean contractually ?

The ideal of IPD (Integrated Project Delivery) is obviously simple and "in theory" possible. However as a fledgling BIM Manager I'm finding it difficult to track down any contract docs, or examples, for use between the relevant parties. Any suggestions welcome...

I though I would share my response with those of you who follow the blog. On a slightly different note, I apologize for the dearth of posts recently. I am getting settled into a consulting gig in Austin, Texas and July was a very busy month. I hope you find the comments below helpful.


Collaborative Construction Resources specializes in helping owners, contractors, design professionals and specialty sub-contractors craft, draft, negotiate, execute and implement integrated or collaborative agreements that enable stakeholders on major construction projects to deliver services and supplies on a cross disciplinary basis in an integrated environment.

There are simply NO off the shelf contracts available for forming a collaborative or integrated team. Integrated or collaborative agreements are fundamentally different than traditional transactional agreements typically used in the AEC Industry and integrated team members MUST approach the creation of those instruments with a completely different mindset than they approach the creation of a traditional set of transactional documents for a Design-Bid-Build project.

That is because integrated agreements arise out of pre-existing and trusted business relationships. Simply put, you don't enter into an integrated agreement with strangers. You seek out trusted business partners with whom you have done business in the past and with whom you are comfortable doing business in the future. Then you leave all your preconceived notions at the door and come to the negotiating table to hammer out a collaborative or integrated agreement that will align and serve the competing interests of the various stakeholders better than the old transactional document do.

That process is not easy, there are only a handful of lawyers in the country that understand it - I'm one that does by the way - and it is not a cheap process because the integrated team is, literally, creating a new legal framework for IPD, BIM and Lean Construction processes almost from scratch. The good news is that the AIA and ConsensusDOCS have both drafted form instruments that the team can uses as a starting point for drafting the new generation of agreements that will be required to create a legal framework within which integrated team members can achieve IPD, BIM and Lean Construction processes.

I could write pages and pages describing the various instruments available and explaining the way to put that legal framework in place, but it would be easier if you just called me. You can reach me at 859-912-774 or you can email me at

Again, my company provides collaborative consulting to integrated teams interested in creating the legal framework that is required to achieve IPD, BIM and Lean Construction on a complex project. There are lots of entities out there trying to achieve IPD, BIM and Lean Construction within the traditional transactional legal framework and that is a very very difficult thing to do. When the integrated team members join forces and share the cost of hiring Collaborative Construction to guide them through the process they will come away with an effective legal framework and new business processes that support and compliment IPD, BIM and Lean Construction.

I hope the foregoing helps, and I'd be happy to talk to you - or anyone else that's interested - about how to create an effective legal frmaework within which integrated teams can pursue and achieve IPD, BIM and Lean Construction.

Phone: 859-441-6033
Cell: 859-912-7747
Skype: JameswithCCR


No comments: