A new AIA Trust risk report, The Risks and Rewards of Integrated Project Delivery (IPD), focuses on the unique risks and rewards which architects may face when participating in collaborative delivery such as Integrated Project Delivery (IPD), Integrated Design Build (IDB), Integrated Form of Agreement (IFOA), Tri-Party Agreements, and other contracts which include risk and reward sharing agreements.
After providing some context and history about collaborative delivery, the report examines common contract terms which might create uninsurable risks for design team members. It also explores strategies to help mitigate those risks including why risk and reward sharing can benefit teams but especially benefit our owners. A real-life risk scenario is outlined to help better define those risks that some teams could face. The report concludes with a summary on the importance of team culture and other strategies for successful outcomes.
In many of these collaborative delivery models, project risks are proportionately shared along with rewards for the team members who participate in risk and reward as part of their contracts. Design firms and construction companies need to understand each other’s businesses and how the business of the collective enterprise will be successful, not just their individual parts. There are important steps that teams can take to more effectively manage their collective risks. In addition, there is a webinar on this topic with a self-assessment test offering AIA members 1.5 LU credits.