Construction Education: Principles, Practices, and Simulations for Enhancing Lean Education and Training

2023

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DOI: https://doi.org/10.60164/a6g1i0a6i/

Authors: Robert Leicht, Frode Drevland

Citation:

Leicht, R., & Drevland, F. (2023). Lean Construction Journal -Special Issue Call for Lean Education: Principles, Practices, and Simulations for Enhancing Lean Education and Training. Lean Construction Journal 2023 pp 184-205.

Abstract:

Question: Why is Integrated Project Delivery (IPD) a relatively underutilized procurement
method in construction?

Purpose: Expose and explain a few market failures that owners/developers might be ignoring
by choosing traditional methods over IPD.

Research Method: Game theoretic modeling and application of microeconomic principles.
Informed by interviews with IPD participants, we model the important strategic and
social advantages of IPD that complement more well-known efficiency advantages.

Findings: Our primary insight is that traditional design-bid-build projects encounter pervasive
moral hazard problems and externalities that reduce the efficiency of construction and
create conflict between participants. At a basic human behavior level, IPD eliminates
or mitigates these issues.

Limitations: The interviews we conducted provide insight, not empirical inference.
Therefore, this paper stands on its theoretical contribution and makes no boast of
providing representative data or causal analysis.

Implications: Owners/developers would do well to embrace IPD given its social and strategic
contributions to Lean Construction. Additional efficiencies we highlight complement
the more well-known advantages, possibly tipping the scales toward IPD for a greater
number of construction projects.

Value for practitioners: This paper will explain how non-integrated methods such as designbid-build create greater cost and conflict than previously realized. It suggests a path forward through (scalable) IPD that mitigates these costs.

Keywords: Integrated Project Delivery, Procurement Methods, Moral Hazard, Cooperative
Methods, Circular Economy, Construction Efficiency, Lean Procurement