About
How a new collaborative way of working can help deliver better, more sustainable buildings at lower cost
The construction process is broken. Traditional conventions lead to lowest cost tendering and one-sided onerous contracts. Each party involved in a building project – the client, architect, engineer, contractor and their suppliers, is required to obtain their own expensive insurance policies such as professional indemnity, construction all risks, third party liability, product liability. The list goes on…
There are calls for more collaborative approaches to insurance and risk sharing to ensure better outcomes. Is there a solution out there?
Integrated Project Insurance or ‘IPI’ is an innovative model of procurement which unlocks the potential benefits of integrated collaborative working. IPI includes an innovative, blame-free insurance product which collectively insures the client and all the other project partners.
All the usual insurance products are covered under a single alliance contract, with conditions that incentivise shared responsibility. This eliminates the problems of conflicting insurance concerns and supports improved collaboration between all parties to deliver better outcomes and create value for all stakeholders.
Image L-R: IPI workshop at Cullinan Studio, Black Country & Marches Institute of Technology building in Dudley
There is clear evidence of IPI working in practice. Join us to find out more about pilot projects at Dudley College with architect Cullinan Studio, and IPInitiatives Ltd, one of the key supporters and custodians of the IPI model. Plus, hear lessons learned from developer TOWN on efforts to adopt a more collaborative approach to new development.
Watch the recording
Webinar summary & presentations
Introduction to the webinar – Katherine Adams and Richard Broad (00:00-09:53)
Kevin Thomas – Introduction to IPI (09:54-13:51)
- Kevin explains the formation of IPI Initiatives by three directors with extensive industry experience.
- The focus is on sharing risk and reward by integrating design and delivery, eliminating separate contracts and insurances.
- IPI Initiatives developed a new alliance contract and integrated insurance to bring the entire team together upfront.
IPI Initiatives Model and Process (13:52-16:06)
Slides – Kevin Thomas, IPInitiatives Ltd
- Kevin describes the IPI Initiatives model, focusing on the entire team working together from the start.
- The model includes a strategic brief and success criteria, with alliance partners forming a board to quantify needs.
- Suppliers are brought in as needed, and everyone is covered by the integrated insurance.
- The process involves three stages: optioneering, project execution, and post-completion support.
Insurance and Financial Mechanisms (16:07-28:57)
- Kevin explains the integrated insurance, which replaces traditional insurances like constructional risk, third-party liability, and professional indemnity.
- The model converts special indemnity to an outcome process, focusing on resolving issues rather than proving negligence.
- The integrated insurance includes cost overrun and latent defects liability protection.
- The financial mechanism involves a gain share for successful projects and a pain share for projects exceeding the target cost.
Richard Pulford – Case Study: Black Country and Marches IoT (28:58-36:42)
Slides – Richard Pullford, Cullinan Studio
- Richard Pulford presents a case study on the Black Country and Marches IoT project.
- The project involved a 5000 square meter college building with advanced construction and BIM technologies.
- The interview process for the project included team-building workshops to assess behavior and alignment.
- The project faced acoustic challenges, which were addressed by redesigning the building to buffer against noise.
Optioneering Workshops and Building a Day Workshop (36.43-41:57)
- Richard Pulford discusses the optioneering workshops, which involved detailed analysis of building elements against various criteria.
- The workshops helped align the team and record decision-making for future reference.
- The building a day workshop involved a visual sequence of the project, allowing suppliers to suggest improvements.
- The workshop saved six to seven weeks on the overall program by optimizing sequences and addressing potential issues.
Case Study: Animal Studies Center (41:57-53:32)
- Richard Pulford presents another case study on the Animal Studies Center, a retrofit project.
- The project initially considered a new build but decided to retrofit two existing buildings.
- The team validated the retrofit option by comparing costs and environmental performance.
- The project focused on air tightness and used a liquid-applied membrane to achieve a high air test result.
Richard Pender – Collaborative Approaches and System Thinking (53:33-1:06:03)
- Richard Pender, discusses the importance of collaborative approaches for new development.
- Collaboration is essential for addressing societal challenges like the housing crisis and delivering low carbon housing.
- The current system is risk-averse and adversarial, leading to system failure.
- IPI represents a collaborative way of working, integrating design and delivery, and using insurance for low probability, high impact outcomes.
Challenges and Opportunities for IPI (1:06:03-1:24:53)
- Richard Pender shares lessons from a project nearly approved using the IPI model.
- The project faced challenges due to the need for all key decision-makers to be on board.
- IPI requires a cultural change and investment in understanding different perspectives.
- The model offers opportunities for public authorities and repeat projects, focusing on complex urban regeneration and low carbon housing.
Q&A (1:24:43-1:31:51)
