What is the Most Efficient Project Delivery Style for You?

Tom Chapman is the Sr. Vice President, Construction at IPS. Chapman has over 27 years of experience in the engineering, procurement, and construction management fields related to the bio-pharmaceutical manufacturing process and R&D, life science and power generation projects. He oversees engineering and design phases from feasibility through detailed design, pre-construction, and construction activities.

Chapman also personally directs engineering and design, CM, and C&Q teams, and design/build subcontract partners during the concept, preliminary and detailed design, procurement, pre-construction, construction, startup, and qualification phases of projects.

Q: How would you describe the different types of delivery what attributes they bring to the client?
A: (Lean) EPCMV, Single-Source Professional Services Provider

• Single interface by the owner.
• Single contract covering all aspects of project delivery, including validation.
• Maximum collaboration that allows for streamlined communication between the owner and EPCMV.
• Targets cost through design control management.
• Reduces omissions with a higher degree of technical integration that results in reduced schedule and cost risk.

(Lean) IPD, Multi-Party Integrated Project Delivery

• Multiple interfaces by the owner.
• Integrated form of agreement (IFOA) contract — all parties signatory put profit in a common owner matched incentive/penalty pool at risk, mutual indemnification, and waivers of damages.
• Maximum diversity of thought in delivery.
• Targets cost through shared risk/reward with key performance indicators (KPI).
• Reduces schedule and cost risk.
• Reduced litigation claims.

Owner-Architect-Constructor (OAC)

• Multiple interfaces by the owner.
• Design-Bid-Build contract.
• Process is a very cost-focused delivery.
• Owner assumes more risk.

Design-Build

• Single interface by the owner.
• Single contract with the flexibility to adjust the level of services.
• Maximum diversity of thought in delivery.
• Typically, fixed price or guaranteed maximum price.

Owner/EPC (Engineering, Procurement, and Constructor)

• Single interface by the owner.
• Single contract covering all aspects of project delivery, excluding validation.
• Provides assurance of labor availability depending on the level of self-performed work.
• Reduced markups and enhances procurement transparency.

Q: Which of the above delivery methods would IPS recommend to the owner?
A: Every client is different, but in general, we think the (Lean) EPCMV, Single-Source Professional Services Provider, and (Lean) IPD, Multi-Party Integrated Project Delivery bring the most value to the client.

They both share, in the concept of target value delivery, elimination of waste, highly collaborative, and diverse thought delivery. It is a more manageable and less resource-intensive oversight by the owner. Streamlines decision making and has a higher probability of meeting anticipated cost and schedule targets. The key is the ability of the owner to focus on establishing a high-performing team, removing the need for multi-contract conflicts of interests.

IPS also recommends Design-Build for the right client as an alternate. All of the above maximizes speed of delivery.

Q: What makes IPS different from most EPCMV providers?
A: IPS has flexibility in collaborating with multiple firms and partners to bring our client the best-suited team member to deliver their capital investment. We don’t have to do everything — we have the flexibility to provide parts of the project delivery or the entire project delivery.

Q: How can our readers contact you?
A: IPS has 19 offices in 10 countries. Visit www.ipsdb.com to find your local location contact information. Also, be sure to stop by INTERPHEX Booth #2132.