IPI: A transformational opportunity for its generation?

IPI: A transformational opportunity for its generation?

Is Integrated Project Insurance (IPI) the solution to proper collaboration and better outcomes in construction?

Designed specifically to tackle the inefficiencies of the industry, where a culture of blame leads to contractual disputes, the concept centres around collaboration, achieved through an insurance backed alliance who are collectively incentivised by ‘best-for-project’ practice to deliver superior outcomes for all stakeholders, from the client through to specialist sub-contractors and suppliers.

Image showing architects and plans

The liability position of architects, engineers and the construction supply chain has long been adversely impacted by poor risk management. Digital disruption is affecting many industries today and the introduction of Building Information Modelling (BIM) has the potential to transform productivity within construction. However, in order to fully realise the benefits BIM can bring to the digitally engineered environment, particularly in its ‘level 3’ iteration, there are considerable insurance hurdles to overcome.

Griffiths & Armour believe that an evolved approach to insurance and risk management would help to deal with the considerable changes regarding how construction projects and the supply chain are procured, managed and funded. In the near term, consultants will certainly continue to require the proven safety net of reliable and effective PI cover for the majority of their workload. Access to IPI will increase their suite of available insurance options, and on those projects benefitting from IPI, the need for the consultants to maintain PI is removed altogether.

IPI is aligned to the move to integrated teams operating in a ‘blame-free’ environment and BIM is a fundamental element which cultivates cooperation through effective information management; indeed, Mark Bew who is Strategic Adviser the UK’s Centre for Digital Built Britain, has stated that IPI offers the only insurance model that truly complements BIM, especially when it moves to Level 3.

Image showing an office

As highlighted by the recently completed £11.685M Dudley College Advance II project, IPI is less about insurance and more about fostering a trusting, collaborative culture through a new procurement model which provides an opportunity to drive down costs by eliminating waste, whilst simultaneously amplifying the quality of UK construction. Through shared common purpose and responsibility, the first trial project at Dudley College was completed on time with costs coming in 6% under the investment target. As a pilot, there were clearly lessons to be learned and we expect to see further pilot projects evolve with the vision of delivering savings of at least 20% on cost and 40% on project time. These aren’t the only benefits to be had of course, as we all profit from better relationships across the spectrum, enabling us to transcend the triangulation between cost, value and time.

If you are interested to learn more about the specific successes of the Dudley College pilot and find out more about the benefits that collaborative working can bring to your next project please do not hesitate to contact us.

If you have any questions relating to this article or would like to discuss the subject matter in more detail, please get in touch using the contact details below and we will be happy to speak with you.

  Jack Wolstencroft   Tom Alston
  Jack Wolstencroft
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  Tom Alston
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