Expectations of wider growth are well supported by the project benefits reported by a majority of owners who are familiar with IPD (but only a small percentage [23%] reports that familiarity). More than three-quarters achieve a wide range of benefits, from increased process efficiency and project quality to reduced risk of litigation and construction costs. Since owners ultimately select the delivery systems for projects, this positive response suggests that increased familiarity by owners can lead to wider IPD adoption.

However, it is also important to recognize that over half of owners included in the survey had little or no familiarity with IPD as a delivery system. In addition, 23% of contractors believe that owners' lack of familiarity with IPD is the greatest obstacle to its adoption. This implies that IPD advocates need to find ways to educate owners about its benefits.

Triggers for IPD Delivery

Owner mandate is also widely recognized as the top trigger for IPD delivery by the highest percentage (49%) of contractors, which is still less than half of total contractor respondents. Among the many contractors who ranked other reasons above owner mandates, there is a notable difference in the responses of those from larger companies and those from smaller ones. Contractors from companies with fewer than 50 employees believe that improved ability to control costs and address schedule concerns are the key factors that encourage them to use IPD.

On the other hand, a higher percentage of contractors from larger companies finds that the shift of risk from owners to the project team is the most important factor, and nearly as many find that an IPD team's flexibility to innovate is also a key driver.

It is respondents from smaller construction firms, not those from larger ones, who reflect owners' priorities. More than 70% of owners familiar with IPD believe that the ability to address schedule concerns (78%) and control costs (73%) are the key drivers for IPD projects. The ability to innovate was selected by 65% of owners, and shifting risk away from the owner was selected by only 53% of owners.

The study's findings demonstrate that none of the established delivery systems—design-bid-build, design-build or CM at-risk—is recognized industry-wide as the single key to unlocking better communication and collaboration. While IPD is still emerging, it has the potential to enhance collaborative projects. If IPD is to take hold in the construction industry, though, its advocates need to think strategically, especially when it comes to the priorities of owners, because they make the final decision on delivery systems.

Direct project metrics like the impact on project cost and construction schedule are more important to owners than how those goals are achieved. However, larger construction companies—those that have a greater knowledge of the IPD delivery system in general and hold great sway in the industry—regard factors that support the improved metrics, such as IPDs' capacity to shift risk and support innovation, to be top drivers.

The study suggests IPD has the potential to unlock benefits better than more established delivery systems. But industry must be prepared to engage owners on the metrics that matter most to them.

Harvey M. Bernstein is vice president of industry insights and alliances for Dodge Data & Analytics. He oversees DD&A's thought leadership, market research and SmartMarket Report initiatives.

Donna Laquidara-Carr is director of industry insights for Dodge Data & Analytics and has served as managing editor on numerous SmartMarket Reports covering diverse industry trends.