With one exception, every aspect of current Integrated Project Delivery programs is supportive of the paradigm shift to collaboration. The one key element not in alignment with this objective is traditional insurance.
Traditional insurance products are utilized through a claims process based on a judgment that someone is at fault. The potential this creates for undermining collaboration is easy to find. An architect may become skittish about working with the CM/GC in design fearing that any flaw will result in a claim against her professional liability policy. Conversely, the CM/GC could resist deep involvement in design because he does not carry professional liability insurance.
Fortunately, a new insurance product that would help overcome this problem is being evaluated. At its core would be a project specific policy that provides no-fault coverage to the IPD team. At a minimum, builder’s risk, commercial general liability and professional liability coverages would be included. A second tier of traditional fault-based insurance covering third party claims would also be in place.
Problem solved? Stay tuned. The devil will be in such details as policy limits, premiums, and deductibles. Many aspects of this new policy are yet to be developed, but the opportunity that lies ahead is quite tantalizing.« Back to news