A Game Theory Perspective on Delivery Methods in Construction

Off-site construction (OSC) is an innovative construction method that transfers most of the site-based work to a more controlled environment. Construction waste minimization, speedy schedules, higher sustainability, and better quality are some of the perceived benefits of OSC. Therefore, significant research attention has been given to OSC. However, minimal research attention has been given to procurement management in OSC, which could impact its pace of adoption. Existing studies on the procurement methods of OSC projects have overlooked several criteria related to OSC that impact the selection of the appropriate procurement methods (i.e., design-build, construction management, etc.). In addition, the literature lacks decision-making tools to assist OSC practitioners in selecting the appropriate procurement method. In this regard, this study contributes to the body of knowledge by (1) identifying the criteria that impact the selection of OSC procurement methods; (2) developing a multi-criteria decision-making (MCDM) model to select the appropriate OSC procurement methods. The developed MCDM model uses a hybrid approach of analytic network process (ANP) and evidential reasoning (ER). The ANP, which considers the interdependencies among the collected OSC procurement criteria, is used to calculate the relative importance weights through questionnaire surveys. The ER method evaluates various OSC procurement methods in accordance with the criteria importance weights. The results indicate that project quality, cost control, and funding arrangement are the prominent selection factors. On the other hand, the model reveals that the integrated project delivery (IPD) and construction management (CM) methods have the highest utility scores. The MCDM model has been validated by comparing the results with similar studies. The present study could assist OSC practitioners in selecting the appropriate procurement method for OSC projects.

Small and Medium-sized Enterprises (SMEs) are vital to Sri Lanka's economy, particularly in the construction sector, which largely relies on traditional procurement methods. This reliance results in persistent issues due to industry fragmentation. To address these challenges, it is vital to investigate the applicability of Integrated Project Delivery (IPD), a procurement method tailored to address the needs of construction SMEs. Despite its potential benefits, comprehension and implementation of IPD within the Sri Lankan construction industry remain limited due to the intricate nature of SMEs. Hence, the study aims to investigate the strategies to minimise barriers to IPD implementation within construction SMEs in Sri Lanka through a qualitative approach. A total of 15 semi-structured interviews with Sri Lankan construction industry experts were conducted. The literature review identified a range of barriers, including financial, technical, legal, and cultural challenges, which were further explored through these interviews. The research highlighted the lack of advanced strategies within Sri Lanka's construction SMEs to address these challenges effectively. Significant barriers to IPD implementation, such as narrow-mindedness, reluctance to change, and copyright issues, were validated and identified through the manual content analysis. The study proposes several strategies to facilitate IPD implementation, including introducing new guidelines from the Construction Industry Development Authority (CIDA), setting minimum parameters for team selection, implementing various versions of IPD rather than a pure IPD approach, and addressing conflict points early. The research offers valuable insights for both academia and industry practitioners, presenting strategies to enhance the efficiency, quality, and sustainability of construction SMEs through the adoption of IPD.

Purpose– The purpose of this paper is to present a comprehensive literature review that seeks to address modern factors worldwide that are associated with the selection of current procurement methods. The aim is to develop an up-to-date multi-attribute procurement decision-making chart for selecting the appropriate method for the project.Design/methodology/approach– Stage 1 (literature review). The search engines, Emerald; Business Source Premier; Science Direct and Sage were selected to identify journals that have published the most procurement methods-related articles. The search covered the period 1980-2015. Stage 2 (Survey) – after analyzing and appraising the literature, an up-to-date utility decision-making chart for selecting the appropriate procurement method for the project was developed. The chart was based on findings from a survey that included 57 construction professionals and who have demonstrated sound experience about the various procurement options.Findings– There is no one best procurement method for all projects. The selection depends on the nature of the issues or problem at hand. Decision making is not a punctual act. It is often a complex process. Effective decision making also demands quality and timely information, and a careful consideration of alternatives. The multi-attribute decision-making chart presented in this paper has included modern criteria and the client would have end up with different recommendations and consequences should these criteria were not included in priority weightings.Practical implications– The literature review provides states-of-the art research in the field of procurement methods in construction and the multi-attribute chart is intended to offer decision makers an opportunity to broaden their horizon on the different alternatives procurement routs that could lead to different consequences.Originality/value– To the best of the authors’ knowledge, very few publications have discussed modern selection criteria for procurement methods in construction under one study. Therefore, this paper has established a platform for scholars and researchers to obtain more useful insights into procurement methods concerns. It has identified research trends in procurement methods which may allow industrial practitioners to appreciate the key concerns in their development of modern concepts and principles such as supply chain, lean construction, sustainability, innovation, value engineering, e-procurement and Building information modeling. The inclusion of these modern criteria will present and add value to procurement decision makers within the construction industry.

This article presents the results of a quantitative study evaluating relationships between various project outcome metrics and the use of Integrated Project Delivery (IPD). Conflicting results within the literature about these relationships, coupled with significant industry interest, motivated this study. Data from 93 building construction projects were analyzed in a multivariate context controlling for the contribution of covariates unrelated to delivery methods. At the 95% confidence level (CL), significant performance outcomes were not found for IPD projects. Though, at the 90% CL, lower levels of cost and schedule growth were found to be significant for IPD projects when compared to projects completed using other common delivery methods. Also, IPD healthcare projects were found to have significantly fewer Requests for Information (RFI) than non-IPD healthcare projects. Lastly, urban projects showed significantly higher levels of cost and schedule growth, along with increased RFI and punchlist frequency counts, than either suburban or rural projects. Recommendations include exercising caution in the use of IPD as a means to check cost and schedule growth while improving design quality. Project owners should also moderate expectations that IPD is a solution to many of the industry’s problems as postulated by prevalent qualitative and trade literatures.

PurposeThis paper examines the profit distribution of engineering projects in the integrated project delivery (IPD) mode. IPD is a new delivery method that can ameliorate many of the disadvantages of traditional delivery methods and improve project results. In the implementation of IPD, the profit distribution is key for ensuring the success of IPD projects.Design/methodology/approachThis paper described a new method for characterizing profit distribution in the IPD mode. The payment function and Shapley value of the cooperative fuzzy game of fuzzy alliance were defined by considering the Choquet integral of the fuzzy measure. The participation of each player was considered, and the influence of participation on the profit distribution was discussed. Lastly, changes in the profit distribution of core participants under different alliance combinations were studied.FindingsA case from a report of The American Institute of Architects (AIA) was used to verify the fuzzy alliance model. There was a significant correlation between the degree of participation of the owner, architect and builder and the profit distribution among these three participants.Research limitations/implicationsThe theoretical research in this paper has some limitations. Initially, this paper selects a case with only three key participants in order to simplify the research. When there are many core participants, how to establish the alliance in the IPD mode and how to establish the corresponding profit distribution model, further work is certainly required to disentangle these complexities in models. Second, in this case, BIM technology has little impact on the income of the whole project. Therefore, this paper does not consider the impact of BIM technology on the marginal effect of the IPD project. Third, the contract type in the case is a custom tri-party based on IFOA. There is no classified discussion of the impact of different contracts on the profit distribute in the paper.Practical implicationsBased on the in-depth study of cooperative game with alliance structure, this paper promotes the classic cooperative game with alliance structure. The authors define the payoff function of fuzzy cooperative games by Choquet integral of fuzzy measure, and introduce the idea into the field of IPD. It aims at extending the solution to a cooperative game without a core. It can be obtained through a simple calculation. In the IPD alliance, the fuzziness and uncertainty of the participation degree of each participant will affect the profit of the whole project. The authors find that the higher the participation rate of players, the more profit each participant has. The greater the influence weight of the designer on the alliance, the lower the influence weight of the contractor on the alliance, the lower the participation of the contractor and the designer, and the lower the income distribution value of the three core participants. It shows a monotonous decline status.Social implicationsFor any construction enterprise, it can make more profits if it joins the grand alliance. In the IPD alliance, each participant can maximize their own interests, which can also promote the enthusiasm of construction enterprises to participate in the alliance and increase the application of IPD mode in AEC industry. This research method provides a new fast, effective, and more realistic solution method for cooperative countermeasures. It can be further extended to other cooperative game fields and advance a new research perspective and solution for the distribution of cooperative interests.Originality/valueThe contribution of this paper is the development of a fuzzy alliance model that provides a tool for measuring the profit distribution in IPD. This is the first quantitative model to connect the degree of participation with the profit distribution in IPD using fuzzy alliance.

Integrated project delivery (IPD) method has recently emerged as an alternative to traditional delivery methods. It has the potential to overcome inefficiencies of traditional delivery methods by enhancing collaboration among project participants. Information and communication technology (ICT) facilitates IPD by effective management, processing and communication of information within and among organizations. While the benefits of IPD, and the role of ICT in realizing them, have been generally acknowledged, the US public construction sector is very slow in adopting IPD. The reasons are - lack of experience and inadequate understanding of IPD in public owner as confirmed by the results of the questionnaire survey conducted under this research study. The public construction sector should be aware of the value of IPD and should know the essentials for effective implementation of IPD principles - especially, they should be cognizant of the opportunities offered by advancements in ICT to realize this. In order to address the need an IPD Readiness Assessment Model (IPD-RAM) was developed in this research study. The model was designed with a goal to determine IPD readiness of a public owner organization considering selected IPD principles, and ICT levels, at which project functions were carried out. Subsequent analysis led to identification of possible improvements in ICTs that have the potential to increase IPD readiness scores. Termed as the gap identification, this process was used to formulate improvement strategies. The model had been applied to six Florida International University (FIU) construction projects (case studies). The results showed that the IPD readiness of the organization was considerably low and several project functions can be improved by using higher and/or advanced level ICT tools and methods. Feedbacks from a focus group comprised of FIU officials and an independent group of experts had been received at various stages of this research and had been utilized during development and implementation of the model. Focus group input was also helpful for validation of the model and its results. It was hoped that the model developed would be useful to construction owner organizations in order to assess their IPD readiness and to identify appropriate ICT improvement strategies.

There is an increasing trend towards more integrated project delivery (IPD) methods in the construction industry. However, the definition of IPD and its practical framework includes a wide range of collaborative principles or strategies. A synthesis of the research on IPD can provide a better understanding of the variety of practices and dimensions of what has been studied as IPD. Such a synthesis can help future researchers and practitioners to frame benefits and challenges associated with the range of IPD practices. In this paper, the authors report on an on-going research to perform a tertiary review of the research on IPD. In addition, the authors explore potential applications of the synthesis in the case of a project under construction in Peru, emphasizing the implementation of the lean concepts in IPD. The deductive tertiary review is used to identify IPD principles and was complemented by an inductive case study where the authors explore IPD implementation besides motivations and barriers to its application. The case study is being built by a company with extensive expertise in using lean, while it is the first trial of the company on implementing IPD. Practitioners can use the observations as a broad perspective of IPD to facilitate justification of implementing strategies associated with the IPD practices.

The Integrated Project Delivery method (IPD) is a contractual framework that features enhanced collaboration, risk and reward sharing under a single contract among the major project parties. This delivery method is gaining popularity in the US and other parts of the world, due to its proven results in efficient risk and cost sharing. Despite that, no significant investigations have been made to address the adaptability of the Middle East construction sector to the IPD delivery system. The objective of this research is to investigate the level of preparedness Middle Eastern markets have for adoption of the IPD delivery system. First, a thorough literature review was carried out to identify common barriers and enablers of applying IPD in construction. Second, a survey was carried out to assess and rank such barriers and enablers as they specifically apply to the Middle East construction sector. Third, through structured interviews with contract experts, strategies and guidelines were devised to be used by Middle East owners, consultants, and contractors who have the intention to implement the IPD delivery method in their projects. Finally, a thorough comparison was made between two major Middle Eastern countries, Egypt and the Kingdom of Saudi Arabia (KSA), in terms of IPD application. The findings reveal that the main barriers to implementing IPD stem from cultural resistance to the new system and lack of knowledge about it. The subsequent strategies outlined by the research are expected to help the construction industry in the Middle East gain more depth of knowledge about the benefits and application of IPD.

Integrated Project Delivery (IPD) as a delivery method has gained considerable attention since the mid-2000s and continues to grow in acceptance. As a delivery method, IPD benefits from collaborative governance, which brings parties together in multidisciplinary teams to define problems and seek solutions, while sharing the risks and rewards involved in the process. IPD agreements have varied in a continuum from contracts that mention IPD as a philosophy to promote collaboration, all the way to fully developed IPD agreements, including important tenets to operationalise these contracts. This chapter discusses essential elements of IPD agreements and underscores the importance of educating the industry on Lean concepts, principles, and tools that support the IPD environment. The chapter concludes with recommendations of different strategies that have been tried and tested by those who have implemented different levels of IPD in their projects and suggestions for future studies.

The construction industry is fraught with waste and inefficiencies resulting in projects often failing to meet owners’ expectations. Integrated project delivery (IPD) is the newest project delivery system (PDS) and changes the traditional roles and relationships of key project stakeholders. Through increased early collaboration, IPD attempts to eliminate waste and deliver the highest-value projects to owners. It is seen as a potential solution to many of the challenges impeding successful project performance. However, a transformational move toward IPD has yet to reach a tipping point, and its use is not prevalent throughout the construction industry. Little research has been done to quantitatively analyze IPD compared with the more commonly used delivery methods. Through substantial collection of quantitative project performance data and univariate statistical analysis, this study fills the gap in PDS research by evaluating the effects of IPD on building construction projects across a wide range of performance metrics from the perspective of general contractors and construction managers. This research demonstrates that IPD/near-IPD outperformed non-IPD projects with respect to performance in communication, change management, and business performance areas. Communication was found superior in terms of the number of requests for information (RFIs) per million dollars; change management in terms of change-order processing time; and business performance in terms of a project’s impact on company image and the potential for return business. A new term called project quarterback rating (PQR), which combines key performance metrics, was used to quantitatively evaluate overall performance. Statistically significant evidence of the overall superior performance of IPD/near-IPD compared with non-IPD projects was found. These results should encourage owners to consider the use of IPD, or IPD principles in conjunction with other delivery methods, in future capital facilities endeavors.

Por años, los proyectos de construcción se han desarrollado y entregado usando métodos de entrega tradicionales. Sin embargo, esos métodos se han considerado ineficaces para lograr los objetivos reales del proyecto. Un modelo integrado y colaborativo, como la Entrega Integrada de Proyectos (IPD, por su sigla en inglés), un método de entrega basado en contratos relacionales ha atraído un interés creciente tanto en la academia como en la industria, pero aún escaso en Arquitectura, Ingeniería y Construcción (AIC). La mayoría de las investigaciones anteriores enfatizan en la identificación de las barreras y desafíos para implementar la IPD y pocos estudios se enfocan en desarrollar estrategias para superar esas limitaciones. Un número limitado de estudios aborda el cómo aprovechar los beneficios de la IPD en entornos AIC donde la colaboración entre las partes interesadas es deficiente. Esta investigación busca la forma de integrar la IPD en los proyectos de AIC cuando la colaboración aún es limitada. Se desarrolló un “Modelo Evolutivo de la IPD” y los lineamientos para su implementación para aplicaciones en tales ambientes. La Investigación en Ciencias del Diseño fue el enfoque adoptado en este studio para discutir y evaluar el modelo propuesto. El modelo enfatiza un proceso evolutivo y flexible para la aplicación de la IPD en proyectos en AIC. El modelo postula los elementos de IPD deseables y requeridos según los niveles de dificultad de aplicación, enfatizando la disposición de las partes interesadas para utilizarlo y la introducción gradual de la IPD en tales ambientes.

Research question: How do architecture, engineering, and construction (AEC) professionals overcome the most prevalent barriers of implementing IPD? Purpose: To investigate how successful IPD projects overcome legal, cultural, financial, and technological barriers in an effort to achieve wider adoption of IPD by the industry and to provide lessons learned to industry professionals interested in implementing IPD as a delivery method. Research Design: A brief review of the current situation of the AEC industry; semistructured interviews with leading AEC professionals in nine IPD projects. Findings: The study finds that successful IPD projects are achieved through proper selection and involvement of all main players as well as these main players achieving trust in each other. Training, procurement ability, and collaborative technology are also among the key factors for a successful transition to IPD. Limitations/Implications: Eight out of nine cases are from the state of California. Value for Practitioners: This paper highlights common barriers that currently exist in implementing IPD and provides lessons learned to practitioners in order to overcome these barriers. Keywords: integrated project delivery (IPD), barriers, relational contracts, insurance, compensation, collaboration, integration Paper type: Full paper

PurposeThe purpose of this paper is to clarify that while integrated project delivery (IPD) methods can be momenta for restructuring architectural practice, they do not predetermine specific patterns of restructuration for the roles, responsibilities and services of architects.Design/methodology/approachThis paper is based on a multiple case study design; two IPD projects were theoretically sampled and studied. The data collection methods included semi-structured interviews and observations. An inductive data analysis approach was applied to frame the phenomena, conduct cross-case comparisons and develop propositions.FindingsWhile IPD implementations set expectations for new structures for practices, it is the project participants’ situated decisions that lead to the restructuration of some dimensions of architectural practice. The dimensions in this study included team formation, design leadership and collaboration and architectural services. IPD project participants locally changed and redefined conventional roles, responsibilities and project artifacts (e.g. drawings and models) that concerned design development and coordination.Practical implicationsIPD context, by itself, does not predetermine a fixed pattern of change in establishing designers’ roles, responsibilities and services because restructuration is highly negotiated amongst the IPD parties and can lead to different responses to this contractual setting. Contracts set expectations for collaborative behavior, but the fulfillment of these expectations is situated and emerging as project participants negotiate to develop practices.Originality/valueWhile IPD research and guidelines aim to provide recipes for IPD implementation, this study contributes to the body of knowledge by clarifying that IPD is a context in which unprecedented ways of practice restructuration could emerge.

Design-build, design-bid-build and construction manager at risk are conventional approaches of project delivery and have many restrictions in the construction industry. To overcome these restrictions, in recent years, Integrated Project Delivery (IPD) has appeared as an approach to deliver the projects. IPD is a delivery approach in which the owner, designer, and constructor work together collaboratively to create a project from the initial stages to deliver and operating the building. Building information modeling is the best tool for creating a virtual model being used more often in conjunction with traditional delivery methods. The early involvement and collaboration characteristics of the IPD approach can enhance the coordination of BIM technology. In this paper, the researcher will identify the status of using IPD and other traditional methods in the Republic of Iraq. It also indicates the most important area when using the IPD method obtains the benefits of using this method and investigates how this system related to BIM technology. A questionnaire form was distributed, then collected and analyzed statistically. The results indicate that 83.33% of the respondents used the traditional methods, while 16.66% was used the IPD method.

Traditional contractual delivery methods are perceived to have flaws that become more apparent when projects increase in size or complexity. The Integrated Project Delivery (IPD) is a contractual framework that features enhanced collaboration, risk and reward sharing, and early contractor involvement under a single contract among the major project parties (owner, engineer and contractor). This delivery methodology became more apparent due to the increasing level of complexity of the construction projects and the need for efficient risk and cost sharing to enhance project performance and foster collaboration rather than the traditional hostility. IPD methodology has proven promising results in many parts of the world. However, it has not been applied in Egypt. In addition, no significant investigations have been made to address the adaptability of the Egyptian construction sector to the IPD delivery. The objective of this research is to analyze the Egyptian market’s preparedness to the adoption of IPD delivery. First, a thorough literature review was carried out to identify common barriers and enablers of applying IPD in construction. Second, a survey was carried out to assess and rank such barriers and enablers as specific to the Egyptian construction sector. Finally, through structured interviews with contract experts, strategies and guidelines were devised to be used by Egyptian owners, consultants, and contractors who have the intent of implementing the IPD delivery in their projects. The findings reveal that the main barriers to implementing IPD stem from cultural resistance to the new system and lack of knowledge about it. In addition, even if owners overcome their cultural barriers and intend to apply IPD in their projects, there is a significant shortage of IPD experts in the country to help them with that. The results and subsequent strategies outlined by the research are expected to help the construction industry in Egypt gain more depth on the benefits and application of IPD. Consequently, the authors hope that such study encourages the adoption of IPD in Egyptian projects so that they can healthier construction in terms of better collaboration, less cost overruns, enhanced schedule performance, and minimal waste.