Posted in practice
on February 28, 2014 9:52 am EST
Is design-build trumping IPD?
The opportunity [with IPD] is the delivery of cheaper, faster and higher quality buildings by taking full advantage of the enhanced communication made possible by BIM software. The challenge is the appeal of design-build, which unlike IPD does not require a new business model, to owners.
Up to now, this column has focused on the progress of Building Information Modeling (BIM) software and Integrated Project Delivery (IPD), which uses BIM as its technical foundation. Both are growing elements of the construction market.
But a study published in 2011 by the Design-Build Institute of America (DBIA) says that design-build is growing a lot faster. The survey didn’t have a separate category for house of worship construction, but it found that between 2005 and 2010, design-build had gained 10% of the market and as of two years ago was being used on 40% of all non-residential construction projects. During the same period, design-bid-build declined from almost 70% market share to just about 50%. Construction-Manager-At-Risk also gained share but was still below 10% in 2010. IPD wasn’t on the radar.
Straight-line extrapolations are not accurate predictors of the future. But even if the curves are bending, it’s entirely possible that design-build is now poised to become the market leader. That can’t be good news, if you work in a design firm.
Graph courtesy of Reed Construction Data.
Looked at from the broad market perspective, IPD is developing in response to both an opportunity and a challenge. The opportunity is the delivery of cheaper, faster and higher quality buildings by taking full advantage of the enhanced communication made possible by BIM software. The challenge is the appeal of design-build, which unlike IPD does not require a new business model, to owners. As a building design professional, you’re dependent on software developers, lawyers and insurance underwriters to realize the opportunity presented by IPD—the software developers are pulling their weight, with regular revisions, mobile apps and better interoperability throughout all stages of the project delivery process.
If you want to capture all the value you create, you need to discover the story that emerges from your own process of creating value.
The three essentials
Meeting the very present challenge of design-build is, or should be, part of your job. Any business, or businessperson, has three essential tasks. You must create value in order to have something to sell. You must capture that value through the sales/order/billing cycle. These two tasks are obvious to everyone. But too many of us overlook the third essential, which links the other two. In order to capture the value you have created, you must communicate it.