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Construction Bids
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January 6, 2011
A lawyer and an insurer recently gave very different opinions about integrated project delivery or IPD. The lawyer said it offers an incredible opportunity to save time and money but the insurer said most big insurance companies won't touch it with a 10-foot pole.
| Tips on using IPD |
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Here are some tips from Lisa Dal Gallo If you are considering using IPD:
• Without the right attorney, IPD won’t work. Find an attorney who doesn’t like to litigate and will help you make the deal. • Hire an attorney or consultant with IPD experience. • Owners must be sure they have a competent internal team. • Get buy-in from the core team: owner, architect, contractor and key subs. • In IPD, good ideas come from everywhere including the lowliest sub. Listen. • Make the deal before you write the contract. Key points include identifying the at-risk profit pool, the target cost, the way decisions are made and liability waivers. • Keep contracts below 40 pages. • Make sure everyone signing the contract realizes how important it is. “I don’t want you to be hyperventilating... but everyone at the table should be breathing heavily.” • Check egos at the door. • Practice team building and mutual respect. • Set up a decision making panel that represents all team members. • Get together. If you can’t afford one space for everyone, make sure they work together physically at least one day per week. • Use LEAN techniques and BIM. |
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