What if we tied the team’s profit to a fixed cost before design began? That’s the key to Integrated Project Delivery. Sutter Health faced a crisis in their business. The cost of delivering hospitals using CM, DB or LS approaches had risen to $2 million per bed. Yet, the business case didn’t make sense past $1.5 million. They challenged their partners to find a better way to build. The challenge was accepted and integrated project delivery was born as a means to eliminate financial waste.
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Turn on the latest reality show about construction. What do you see? Last minute heroics. Thousands of loose ends. Total mayhem as the project is turned-over to the customer. Construction projects don’t have to end with a mad scramble. What if the turnover went smoothly and there were no deficiencies? Makes for dull TV, but in the real world it’s what the customer really wants to see. (click thumbnail for pdf download)
What if we put our money where our mouth is? That was the question we asked ourselves. What would happen if we put our fee at risk by tying it to the outcomes that define success for our customer? Some might call it reckless. We call it accountability. We did it on Villa Marguerite and found that it was a great way to keep our team focused on what’s important – not to mention the value it delivered to the customer. (click thumbnail for pdf download)