Influence of multiparty IPD contracts on construction innovation

Construction is often cited for challenges in adopting new innovations, slow diffusion of innovations through the industry, and significant barriers to adoption for firms. The reasons for the challenges are often tied to the fragmented nature of the industry, with vertical, horizontal and longitudinal fragmentation creating boundaries to sharing information or collaboration to enable innovative solutions. These boundaries that divide firms by area of expertise, timing of involvement, and alignment with project goals offer little incentive for seeking innovative solutions, or may even penalize firms that pursue innovative solutions. The rise of multiparty contractual agreements have enabled discussion regarding means of increasing collaboration, decreasing the negative effects associated with fragmentation, and ultimately increasing the potential for innovation in the delivery of construction projects. This paper seeks to analyze the barriers associated with innovation in the construction industry and explore the opportunities for improving the adoption and diffusion of innovation through the use of multiparty Integrated Project Delivery (IPD) contracts. Using the lens of innovative capacity, defined as the abilities and willingness of firms to engage in inter-organizational, collaborative and distributed novel activities, project outcomes will be explored for both innovation and diffusion. In addition, insights from a case study IPD project will be provided based upon a lessons learned workshop for a first time IPD owner with their signatory team members, facilitated by an IPD expert