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TEAM 1 Share All Project Risks. Implications - DBB. Architect develops and complete bid documents prior to construction review Project has a short and discrete bid phase Contractor constructs project based on contract Rigid change process Client/Owner has limited involvement after design. - PowerPoint PPT Presentation
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TEAM 1
Share All Project Risks
Implications - DBBArchitect Contractor Client/Owner
Risk Level Low High Medium
Behavior Delivery and Done Lowest cost and fast delivery
Holds other parties accountable
Focus Design and Aesthetics
Time and Cost Satisfactory Conclusion
• Architect develops and complete bid documents prior to construction review• Project has a short and discrete bid phase• Contractor constructs project based on contract• Rigid change process• Client/Owner has limited involvement after design
Implications - DBArchitect Contractor Client/Owner
Risk Level High High Medium
Behavior Collaboration with Contractor
Collaboration with Architect
Holds other parties accountable
Focus Design, Cost and Implementation
Construction, Cost and time
Satisfactory Conclusion
• Architect develops and complete construction documents collaboratively• Project has no bid phase• Contractor and Architect share benefits• Collaborate change process• Client/Owner has limited involvement in design
Implications - IPDArchitect Contractor Client/Owner
Risk Level Medium Medium Medium
Behavior Collaboration with all Parties
Collaboration with all Parties
Collaboration with all Parties
Focus Design, Cost and Implementation
Design, Cost and Implementation
Design, Cost and Implementation
• All parties have same level of risk• IPD Agreement must be signed prior to project initiation• Architect, Contractor, and Client/Owner share benefits• Collaborate change process with all parties
IPD AdvantagesConstruction Projects
• Common goals that are agreed in advance between the Architect, Contractor, and Client/Owner
• Shortened feedback loop• Shared risks provide incentives to
resolve conflicts and complete project• End goal is the focus vs. financial gain• Reduced project waste• Reduced schedule time
IT Projects
• Common goals that are agreed in advance between the Designer, Developer, and Client/Owner
• Shortened feedback loop• Shared risks provide incentives to
resolve conflicts and complete project• End goal is the focus vs. financial gain• Reduced project waste• Reduced schedule time
IPD DisadvantagesConstruction Projects
• Architect and Client/Owner have increased risk levels compared to DBB
• Less individual accountability amongst parties
• Increase reliability on Client/Owner• Increase susceptibility to scope creep• Architect has higher financial risk• Contractor has less opportunity to make
additional profits
IT Projects
• Designer and Client/Owner have increased risk levels compared to DBB
• Less individual accountability amongst parties
• Increase reliability on Client/Owner• Increase susceptibility to scope creep• Designer has higher financial risk• Developer has less opportunity to
make additional profits
Challenges• Early commitment from all parties• Trust• Frequent meetings, coordination and collaboration• IT Projects conducted in virtual job sites• Reliance on arbitration and cooperation over legal recourse• Requires modeling technology
• Construction projects require rapid visual models• IT projects require rapid workflow and data modeling
• Change process requires rapid evaluation and decision making• Achieving waste reduction without increasing the project scope or project schedule• High tech and standardized technology across all parties