Contracting Methods for Integrated Project Delivery: A Healthcare Case Study

Contracting methods for commercial construction projects utilizing an integrated project delivery (IPD) method vary based on experience, company culture, and sophistication of project participants. This research compares and contrasts contracting methods across two concurrent hospital construction projects in Colorado’s Denver metro region. One facility had a project value of roughly $160 million. The second had a project value of roughly $110 million. This research compares pre-construction data as well as findings from a short survey of project participants to analyze differences in contracting methods and outcomes. Several of the contractors and designers surveyed worked on one or more projects resulting in reliable direct comparison analysis. Metrics for comparison include: average time to negotiate and implement the project-unique contracts, impacts on profit, and design/construction productivity. Preliminary findings suggest that differences in contracting methodology and types of contracts used primarily impacts relationships, but also has possible impacts on pre-construction productivity.