The first steel columns were set last month on a new $268 million, 760,000 square foot hospital under construction in Owensboro, Kentucky. Owensboro Medical Health System is the project’s owner. The core project participants include Turner Construction Company (construction manager), HGA (architect), and SSR (mechanical, electrical, plumbing engineer).
The project is one of the first to employ an integrated project delivery (IPD) process. IPD has generally been described as a project delivery method that maximizes collaboration and a shared purpose among the major project participants in order to achieve the best project outcome. The hallmarks of IPD include early substantive involvement of core participants, joint or collaborative project management, and a joint sharing of risks and rewards. The major project participants, including the owner, architect, and constructor, are aligned by a single contract. The AIA and Consensus DOCS have developed IPD contract forms that are currently being used on several projects across the country. The Owensboro project is using a manuscript agreement since negotiations on the agreement began before the industry forms were available.
According to project participants, the main goals of the IPD agreement on the Owensboro project were to eliminate wasted cost, increase quality, increase job safety, generate project savings, and optimize team cooperation. The IPD agreement establishes a potential bonus pool to be shared among the project participants provided that established program and scope requirements are met, final costs come in under the GMP, the scheduled delivery date is met, and certain safety requirements are achieved. The Owensboro project is scheduled for completion in 2013.