procurement
Trialling IPI at Dudley College
Open to students in autumn 2017, Dudley College’s Centre for Advanced Building Technologies - or Advance II as it is more commonly known– stands out as a case study in innovation. Not only is the award-winning centre the first of its kind in the FE sector to offer training in advanced building technologies, but it is the first project in the UK to use Integrated Project Insurance (IPI) - the novel procurement model outlined in the Government Construction Strategy 2011-15 and promoted by IPInitiatives
interested in trialling an innovative approach to procurement. They believed using the IPI model had the potential to provide valuable learning for themselves and the wider sector, while delivering a low carbon, highly sustainable facility which would be a teaching tool in itself. Sitting alongside its sister building,
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Advance I, at the West Midland’s college, Advance II was nominated as the official Government trial project for IPI. Delivery using the unique model of insurance- backed alliancing focuses on early engagement, collaboration and non- confrontational working practices, with the aim of driving down operational inefficiencies and controlling costs. Under the model, traditional procurement
LEADING provider of education and training for the construction sector, Dudley College was
contracts are eschewed in favour of the formation of a project alliance team. This sees all parties - from the client
to the design and construction teams - come together to form an alliance, a “virtual company” with an agreement to share in any pain/gain associated with the scheme. This integrated approach to the sharing of opportunities and risks throughout project delivery extends to a team commitment to operate within a culture of “no blame, no claim”, for all decisions to be made on a “best for project” basis and includes the adoption of a project bank account to ensure timely payment for all parties. Shared risk management is incentivised with a whole team project insurance cover that includes cost overrun, project delivery and latent defects cover. Choosing to procure the project using
IPI was attractive to the client not only because the unique insurance backed alliancing model would limit liability for any “painshare”, but also because it was hoped that the removal of such significant risk would encourage the most strongly aligned collaboration – a team focused on end results without the burden of anxieties about blame, fault or failure. Following confirmation of their intention
to use IPI, Dudley College appointed the whole project team including national construction company Speller Metcalfe, at the project’s inception, with Derry Building Services, Fulcro, Metz Architects and Pick Everard making up the rest of the alliance team. The scheme was facilitated by IPInitiatives who developed and own the Integrated Project Insurance product. Whilst many projects have aspired to
the ideals of wholly collaborative working, Advance II has been the first to fully adopt the IPI model. A key element of the IPI approach is
the setting of project success criteria by which to monitor and evaluate a project’s success. In addition to targets relating to time and cost, also included in this
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