Factors Driving Success of Cost Management Practices in Integrated Project Delivery (IPD)

Faris Elghaish,M Reza Hosseini,Sepehr Abrishami,Saeed Talebi,Michail Kagioglou,Igor Martek

doi:10.3390/su12229539

Faris Elghaish, M Reza Hosseini + Show 4 more

Open Access

https://doi.org/10.3390/su12229539

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Abstract

Integrated project delivery (IPD) is a mode of project procurement recognised as facilitating superior project performance. However, this success is contingent on effective cost management practices that share cost data with all project stakeholders in an accurate, timely and transparent manner. Despite an extensive literature on aspects of cost management, none identifies the essential ingredients required of an effective cost management system, sufficiently robust to support successful IPD projects. Candidate cost management augmenting practices are drawn from the literature, and presented for scrutiny in questionnaire form, to fifty IPD experienced experts, based in the USA, UK and Australia. Findings reveal activity-based costing (ABC) to be effective at identifying overhead costs and creating accounting transparency. Similarly, earned value management (EVM), in combination with ABC, is effective at developing mathematical models for equitable risk-reward distribution. Moreover, web-based management systems, as supported by Building Information Modelling (BIM), are effective at generating trust and collaboration on which IPD success depends. A questionnaire survey using purposive sampling was conducted to assess the factors driving success of implementing IPD regarding cost management process. The contribution to knowledge made by this paper is in identifying requisite support mechanisms essential to elevate traditional cost management practices to the higher standard needed to ensure IPD delivery success.

Highlights

Integrated project delivery (IPD) is characterised by early, collaborative engagement of key stakeholders throughout all the phases of a project [1,2]
This, represents a significant knowledge gap, as already noted by researchers. This study addresses this gap and identifies the antecedents to the successful design of cost management practices in IPD projects—including Building Information Modelling (BIM)-enabled IPD projects
Integrated project delivery (IPD) is a construction procurement model that integrates all project dimensions, including people, organisations and business structure, right from the conceptualisation stage. It is regarded as a superior delivery mode to traditional methods of project delivery, such as design-bid-build, construction management at-risk, and design-build, in that it has the potential for improving fourteen key metrics of project performance, including quality, scheduling, communication management and cost performance, among others

Summary

Introduction

Integrated project delivery (IPD) is characterised by early, collaborative engagement of key stakeholders throughout all the phases of a project [1,2]. Major barriers have been identified that hinder widespread adoption [7,8], with IPD requiring extensive support systems [9]. Failure to establish these support systems from the project outset can erode the successful delivery of IPD projects [10]. The IPD compensation model ( known as risk-reward compensation) is of primary importance [13]. It is this that plays a pivotal role in stimulating creativity, motivating collaboration, and sustaining performance [14,15]. Researchers have attempted to identify those factors that affect the success of cost management practices in IPD projects, a brief description of which follows

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