Integrated Project Delivery

What is IPD

Pipeline projects run successfully when they’re planned and executed by a single, collaborative project team who share the same objectives, responsibilities, and risks. The Integrated Project Delivery (IPD) model has allowed us to plan and execute pipeline projects effectively.

IPD uses a team-based approach in every phase of the pipeline project. Instead of each party focussing exclusively on their scope, IPD brings every team member together at the beginning of the project. This allows for collaboration in all phases of the project. It starts with streamlined planning, decision making, and the development of a plan for execution where all interests are aligned to meet the objectives of the project. This better way of managing pipeline projects can reduce or eliminate change orders, schedule delays, poor construction quality, cost uncertainty, and broken relationships.

5 elements of IPD model

Early involvement of key participants

This is the most critical IPD element. Early collaboration and engagement from all key team members will ensure a high-value design with better price control and fewer change orders that will best achieve project goals. All must commit to the overall success of the project, not just their own scope.

Shared risk and reward based on project outcome

All parties involved in the project share the same risk. They will also share the same reward. When risk and reward are based on compensation, it gives all parties the incentive to understand what the objectives are and how to meet them.

Joint project control

Communication between all team members is essential. When all parties involved understand of each other’s perspectives, it creates a balance of interests that is equal and not favouring one party over another. Joint project control reflects fairness and gives all parties a voice in decisions that will help achieve a positive project outcome.

Reduced liability exposure

Limiting liability will increase communication, foster creativity, and reduce contingencies. Liability exposure raises project costs through increased contingency allocations, whereas limited liability can eliminate redundant risk allowances.

Jointly developed and validated targets

The team will create jointly developed targets at the beginning of the project. These targets will act as metrics for compensation adjustment and the goals for the design. All parties will own the objectives and are equally committed to their success. These jointly developed and validated targets are the mission statement of the IPD project.

Who is on the IPD team?

Key team members include the Project Owner, EPCM Consultant (Plex), Pipeline Contractors, and a Steering Committee. The Steering Committee will be made of non-project members from the Project Owner, EPCM Consultant, and Pipeline Contractor. Any third-party services will be chosen and managed by Plex Projects as the EPCM Consultant.

Early involvement by key participants is why the IPD model works so well. Joint project control with shared targets and shared risk will bring a shared reward based on project outcome. Everyone is equally invested in the project’s success. For this to work, continuous, open communication is required between the parties. Transparency and clear communication ensure everyone is in check, and that project control is balanced equally to serve the interests of all parties.

Plex has support from the Integrated Project Delivery Alliance who is made up of team members who have been successfully utilizing IPD in other industries.  More information is available at their website www.ipda.ca.

Choose the better way of planning & executing pipeline projects

Benefits to pipeline owners

As the pipeline Project Owner, you’ll experience cost certainty. You will benefit from efficient and effective execution, which means higher productivity and meeting schedule milestones. You can expect strengthened relationships with external stakeholders, and your team culture will get a positive boost of morale. IPD projects see faster integration into operations. That means your project will start to produce revenue faster. It’s a better way of doing things for everyone involved.

Why Plex Projects?

Statistically, our approach has more positive outcomes compared to the traditional execution of pipeline projects. Our team will use our industry expertise to develop high-value engineering and execution plans. As active members of the IPD team, we are fully committed to the success of your project for all parties. Your highly accurate project estimate will be based on the entire team’s input. That allows us to create a fixed-price contract for the construction of the pipeline project. Our profit will be contingent on the Pipeline Contractors, upon successfully meeting the project goals. Resources for the Planning phase are provided at cost, anticipating a shared profit at the end of the project. Read more about how Plex Projects’ Integrated Delivery Model can work for you.

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