Schinnerer's RM Blog - ipd tag

Revisions Coming from ConsensusDOCS

Thu, 18 Nov 2010 19:37:00 GMT

The ConsensusDOCS coalition is releasing modified contract forms in January 2011 to respond to emerging trends and practices. Among the revised standard forms is the ConsensusDOCS 300, the Standard Tri-Party Agreement for Integrated Project Delivery, and the new versions of the standard owner agreements with design professionals. ConsensusDOCS is now three years old and has grown to a coalition of 29 construction industry associations. Stay tuned for more information on these newly revised documents in January following their release.

New IPD Coverage

Mon, 13 Sep 2010 12:49:00 GMT

Schinnerer has seen few attempts at true integrated project delivery (IPD). Despite all the talk about significant changes in how projects are designed and constructed, most of the “integrated” projects we have seen are basically design-build projects using standard contract forms.

Despite this, we have been preparing for the rush of IPD projects by developing new forms of project-specific insurance that will not only cover the design team but also the increasing design liability of the construction team. The shared-risk, shared-profit collaborative aspects of IPD result in many aspects of the relationship being defined contractually. However, it is unclear how courts will construe the provisions of multi-party agreements with extensive waivers of rights, unusual limitations on risk, and blurring of responsibilities. Without clear law, such as the law of negligence that applies normally to design and other professional services, it is difficult to craft a responsive and affordable insurance policy specifically for IPD projects.

While the goal of IPD is to have the parties share risk as a way to protect project-based interests, there is a misalignment of currently available insurance to cover this risk-sharing and team decision-making. The unique challenges of the IPD system can best be solved by having a project-based policy that cultivates the commonality of interests in completing a project.

Schinnerer and CNA have responded to this gap by developing professional liability exposure coverage for all members providing design or design and construction services through a multiparty agreement on a project basis. While this project-based coverage will not be available on extremely large or high-risk projects, it will respond to the need for a dedicated policy to cover the design exposure on projects such as office buildings, public and private educational and healthcare facilities, and certain residential, commercial, and mixed-use projects, for example.

We also developed a special variation of the project-specific coverage for the highly unusual (and probably highly unlikely) Special Purpose Entity called for in the AIA IPD contract. Because of the project client’s involvement as a joint owner of a limited liability company with the architect and construction manager, no current professional liability policy can cover the design risks.

Look for more information as the coverage is rolled out nationally at www.Schinnerer.com.

New IPD Guide Published

Wed, 11 Aug 2010 14:15:00 GMT

In a joint effort, several leading construction industry organizations have published a guide called Integrated Project Delivery For Public and Private Owners. Contributors include the Construction Owners Association of America (COAA), the National Association of State Facilities Administrators (NASFA), the APPA (formerly the Association of Physical Plant Administrators), the Association of Higher Education Facilities Officers, the Associated General Contractors of America (AGC), and the American Institute of Architects (AIA).

The publication outlines the basic principles of integrated project delivery (IPD), and includes useful tips and advice for project owners considering this approach to construction. It divides IPD strategies into two areas of usage, “philosophy” and “delivery method,” and three levels of collaboration, “typical,” “enhanced,” and “required,” explaining the implications of each category. The paper also clarifies the relationships between IPD and three other trends in the industry: lean construction, building information modeling (BIM), and sustainability. Furthermore, risk and liability issues are discussed for many topics.

Notable sections of the paper include “First Steps” for implementing the strategy and “Recommendations for All Owners (Not Just Public).”

Copies are available from the following websites:

www.nasfa.net

www.coaa.org

www.agc.org/project delivery

Managing a Firm’s BIM Usage

Wed, 12 May 2010 18:08:00 GMT

In a recent Guidelines for Improving Practice article, we reported on a McGraw-Hill Construction Research & Analytics report on building information modeling (BIM). According to the study, about half of the design and construction industry has already adopted BIM, and it is suggested that the rate at which BIM users will use the design tool on projects will double in two years.

Attracting Investors through BIM

Wed, 07 Apr 2010 19:55:00 GMT

Building information modeling (BIM) is becoming more popular in the construction industry for a bevy of reasons. According to Dennis Neeley of the AIA, one extremely attractive reason for BIM’s increase in popularity is the way developers can use it to attract investors to their project. Neeley believes that in ten years BIM will be expected and demanded by investors.