Lean construction is emerging as the answer to the commercial construction industry’s decades-long struggle with waste. An important goal of lean is alignment of objectives among important members of the project team. The skillful use of incentives and risk sharing plays a valuable role in achieving this alignment.
As Integrated Project Delivery (IPD) gains more currency, commentators are looking more closely at the legal issues this innovative approach can raise. As the contractor and chief trades participate in design, they run the risk of assuming some design responsibility. Insurance companies are developing IPD-specific products to cover this risk, but have yet to issue such policies. Proficient use of 3D design models reduces design errors, yet in human hands will never be infallible.
Today’s uncertain economy gives owners more risk of contractors becoming financially distressed. If a contractor is financially at risk, progress can be delayed or halted entirely, resulting in loss of time and money. This article provides four suggestions for owners to protect themselves.
For an insightful analysis of the legal concerns raised by Integrated Project Delivery (IPD), it’s worth your time to ready The Legal Worries Raised by IPD. Author Stephen Hilger, a Grand Rapids, Michigan lawyer, provides a balanced view of potential IPD pitfalls. He concludes that its benefits outweigh the risks, provided you proceed with eyes wide open.
With one exception, every aspect of current Integrated Project Delivery programs is supportive of the paradigm shift to collaboration. The
Incentives are an essential part of a successful Integrated Project Delivery (IPD) program. Incentive programs reward the successful IPD Team
The pinnacle of lean construction is integrated project delivery (IPD). With IPD, the owner, contractor and designer enter into one
(As appeared in the American Bar Association’s Under Construction Journal August 2009) Current economic conditions are creating a great deal
Construction subcontracts prepared by contractors generally contain flow-down provisions binding subcontractors to terms in the contractors’ master agreement with the
In September 2001, the Department of Defense instituted a new design-build business model based on collaboration. It includes contract incentives
The initial writing presented by a contractor to an owner is usually in the form of a proposal. Based on
As seen in the Cincinnati Business Courier As a construction owner, you can incur liability if you fail to recognize
The traditional method of contracting is based on the transaction. Money is exchanged for goods and services. It places the
The use of technology is driving the future of the design and construction industry. The best example currently emerging is
On April 25, 2007, the Ohio Supreme Court shook the foundation of a longstanding doctrine of construction law. Its decision
Program management is emerging as a new tool for owners who have downsized or eliminated in-house construction staff. Such trends