Performance of Integrated Project Delivery (IPD) For Mechanical and Electrical Contractors

Integrated Project Delivery (IPD) is a relatively new delivery system that is generating much interest in the construction industry today. IPD is characterized by a multiparty contract and the very early involvement of key participants including the owner, architect, general contractor, and important trade contractors such as mechanical and electrical contractors. Several organizations and publications have expressed great interest in IPD but very few studies statistically evaluated the benefits. Additionally, the few studies that have evaluated the impacts of IPD have focused on the general contractors? perspective. No studies have focused solely on the effects that IPD may have on key trade contractors who typically represent 40-50% of the total cost of a project ( Hanna 2001). This research fills this gap by performing a comprehensive analysis of IPD from the perspective of mechanical and electrical contractors through a comparison of IPD with design-bid-build, construction management at risk, and design-build for many performance metrics. A literature review was conducted to gain an understanding of the prior research on IPD as well as insight into the trends and methodology of prior project delivery system literature. Then, a data collection tool was developed and sent to mechanical and electrical contractors in the U.S. and Canada. After data collection, a univariate analysis was performed comparing IPD to non-IPD for mechanical and electrical contractors using safety, cost, schedule, communication, quality, business, labor, and change metrics. Additionally, a comprehensive metric for collectively measuring overall project performance called the Project Quarterback Rating (PQR) was developed and analyzed. Finally, analyses were performed to determine other delivery characteristics that affect project performance for mechanical and electrical contractors. The results from the study indicate that IPD outperforms non-IPD for mechanical and electrical contractors in six metrics related schedule, communication, quality, and change management. These metrics are the deficiencies per million dollars, resubmittals per million dollars, change order processing time, schedule growth, rework cost, and change order effect on cost. Additionally, after the PQR development, the study shows evidence that mechanical and electrical contractors on IPD projects have superior overall performance when compared with design-bid-build. Finally, the study shows that, in addition to the selected project delivery system, increased involvement of owners and designers in the construction phase, earlier involvement of key subcontractors in the design phase, and the use of lean construction principles improve overall project performance for MEP contractors