Using a design-build contract for Lean Integrated Project Delivery

Using a design-build contract for Lean Integrated Project Delivery

2011

Download PDF

DOI: https://doi.org/10.60164/o99f9ppz9

Author: Joel Darrington

Citation:

Darrington, J. (2011).  Using a design-build contract for Lean Integrated Project Delivery. Lean Construction Journal, 2011, pp. 85-91.  https://doi.org/10.60164/o99f9ppz9 www.leanconstructionjournal.org‌

Abstract:

Purpose: By making a distinction between design-build as a project delivery system and design-build as a contract type, I suggest that design-build contracts can be a useful vehicle for implementing Lean Integrated Project Delivery.

Research Method: Experience, observations and personal insight.

Findings: Not all owners are legally allowed or institutionally prepared to enter a threeparty relational contract that some consider the hallmark of Integrated Project Delivery™. Some of those owners are better suited to a design-build contract format. A design-build contract can be structured as a relational contract in order to more fully implement Lean IPD, or can be structured as a transactional contract using a traditional design-build form in which the supply chain chooses to implement Lean IPD principles without an owner mandate.

Limitations: Design-build contracts do not displace the need for three-party relational contracts. Owners who have legal authority and suitable temperament may be better served by a three-party integrated agreement. Since not all owners fit that description, design-build contracts may be useful vehicles to deliver Lean IPD projects.

Implications: Lean IPD can more deeply penetrate the industry if more owners are able to utilize it. Increasingly, public owners are gaining legal authority to use design-build procurement. Many private owners would have difficulty getting internal stakeholders to agree to a three-party integrated agreement, but may be able to implement Lean IPD using a design-build contract instead.

Value for practitioners: Having an alternative contracting method opens up new avenues for practitioners to implement Lean IPD on projects that might not otherwise allow for it.

Keywords: Lean; Integrated Project Delivery; design-build; contract type; relational contract

Paper type: Forum essay