Integrated Project Insurance prepares to move on site at Dudley

First trials of a project operating with Integrated Project Insurance is now underway in Dudley in the West Midlands.

Dudley College

IPI, developed by Griffiths & Armour, insures the whole project team, including the client, against all risks so they can concentrate on innovatons rather than having to cover themselves against potential problems and all rights of subrogation are waived. it is one of three government trials of new procurement techniques.

IPI is intended to support collaborative working and the use of integrated teams, helping to drive out waste, deliver innovation and provide better, more cost effective solutions. Liabilities to third parties arising during the construction process are covered. There are no internal liabilities to consider and the project team operates on a completely blame-free basis.

"The initial selection of the team was not on price, but on quality" - Alastair Hamilton, Pick Everard

The trial IPI project is to build a new Centre for Advanced Building Technologies (CABTech) at Dudley College. The facility will include a four storey hangar where students will learn how to fabricate and assemble buildings using the latest available technologies. There will also be a digital centre for BIM training.

Procurement for the project has now been completed and the alliance of consultants, specialist contractors, constructors and an overall project co-ordinator has begun the process of fusing together into an integrated and collaborative team. That team is supported by a project bank account, BIM and lean design and implementation practices.

The project has undergone a review of comparative benchmarking and availability of investment funding to establish the project cost - which has been set at £11.7M. The members of the alliance take collective responsibility for creating and delivering a solution which is fit for the purpose as set out in the strategic brief, and have to meet prioritised success criteria within agreed target cost. 

There is a collective commitment of the alliance members to control cost, with the objective of saving 15% - 20% by cutting out process waste. And there is collective accountability for completion by Spring 2017. There are gain share options for the team to inspire them to hit the performance targets.

The team are the client – Dudley College – and Metz Architects, Pick Everard, Fulcro Engineering Services, Speller Metcalf Construction and Derry Building Services.

"The initial selection of the team was not on price, but on quality," explained Pick Everard director Alastair Hamilton.

"The process was one of the most challenging we've been through, but was delivered on programme, which is very unusual in the public sector at the moment. Under the IPI model we have created a multi-party, virtual company, called the Alliance, which is contracted to deliver the new college building under an incentivised cost plus contract."

 The “fundamental principles” set out in the preamble to the IPI policy encapsulate the approach:

  • Alliance Members embrace fully integrated collaborative working and act in a spirit of mutual trust and co-operation at every stage of the project and comply with the Alliance Principles pursuant to the Alliance Contract. 
  • there are mutual no-blame/no claim undertakings.all decisions are taken on a ‘best for project’ basis.
  • there is independent facilitation and financial/technical risk assurance at all stages
  • Performance of the Alliance Members will be measured against agreed success criteria.
  • Alliance Members will work on an open book basis and seek ways of driving down costs and maximising gain share. 
  • will be no distinction or barriers between the design and construction elements of the project.

The Dudley project has been approved by Cabinet Office via its Roll Out Management Group. It is also the primary nominated project under procurement trials by Innovate UK’s Technology Strategy Board. It has the support of an industry steering group and academic partner reviewing its implementation and success. 

"If there is any issue with IPI, it is that it is still in its infancy and therefore there are a lot of lessons to be learned on how the process will work and how we will demonstrate value for money across the design and delivery of the new building at Dudley College," said Hamilton.

"The experiences we have on this project will be vital in helping others who adopt IPI."

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