Lawyer Ashcraft says IPD has "definitely" become easier. Sutter's Christian agrees: "It's always easier with [veterans]. We tend to reuse companies that we have had positive experiences with."
Contracts can take less time to execute. For a first-time client, it can take six or seven months to work out an agreement, most often because of insurance issues, says Bernita Beikmann, director of lean strategy for architect HKS. For repeat clients, a contract can take a few weeks.
After six IPD projects since 2006, Boldt's Kievet says he is not sure whether IPD is easier, but the results are better.
James Mobley, chief operating officer of Devenney Group Ltd. Architects, does not think IPD is getting easier or better. "It takes just as long to complete the construction documents and obtain permits, a risk-averse contractor mentality still prevails, and our most profitable project matches typical profit margins," he says.
Room for Improvement
Mobley, an IPD proponent, sees room for improvement. "From a business point of view, IPD has not always been profitable for architects and engineers," he says.
Devenney's first IPD project was the pioneering 11-party Sutter Eden Medical Center. Mobley considers the job a success, though signatories made only 80% of expected profit.
In total, Devenney has completed six IPD acute-care and behavioral-health hospitals for three owners. Another is nearly done and one is just under way. One job was six months ahead of schedule, three were on schedule, and two were late by four and seven months. Another is trending three months late, says Mobley.
Three of those projects did not produce a profit; two projects went over budget; and Devenney had to return anticipated profit, which had been distributed at certain project milestones, on two.
Further, some agreements put the architect's profit 100% at risk but not the contractor's. That inequity pits the designer against the contractor, subverting the collaborative spirit, says Mobley.
In addition, during preconstruction, the design team is dependent on the contractor's cost estimates, which often are low. That results in an aggressive target price and sets the stage for trouble.
Too often during construction, collaboration breaks down, costs escalate, and "we watch our profits turn into revenue for the contractors," says Mobley. The architect's "leadership and vision are still too often overshadowed by aggressive behaviors of builders focused solely on risk and reward," he adds.