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Integrated Project Delivery: Managing Liability Risks for the Design Professional

Hancock, Brian
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Abstract
In today’s construction industry a paradigm shift is happening and along with it a complete new way of thinking. This paper was written to help identify the liability changes design firms in the construction industry may expect to face through the use of Building Information Modeling (BIM) and Integrated Project Delivery (IPD). The traditional delivery methods and tools utilized in the construction industry have led to an entrenched set of standards and legal precedents. Design firms have been able to rely on this when entering into agreements for their services and thus been able to anticipate the level of liability they may be accepting. The use of IPD and BIM introduces a complete change in these standards and precedents previously set. The extent of these changes is too broad and largely unknown to address within the scope of this document. As part of the management of risk, the identification of the potential changes to the design firms’ liability is crucial. This paper identifies the major areas of concern and provides some examples where a design firms’ liability may change. The reader should use this information as a springboard for investigating how these changes may affect their business and how to address them to manage their risk. This paper does not identify all possible changes in liability or risk nor does it provide specific methods for addressing these risks as each firm will need to individually evaluate the potential changes based on their business model and services offered. Given the potential impact, adjustments will likely be required in all areas of the design firms’ business. Each firm will not only need to identify all the potential risks due to the changes in liability but they will also need to identify what procedures will need to be modified to mange the risks. Once these procedures have been identified they will need to be implemented in the design firms’ culture. Since the necessary modifications extend beyond a trivial modification of a single process, a change management model should be followed. This paper provides the reader with a suggested change management model and approach to identify design firm specific risks from liability changes and incorporate the proper procedure modifications to address these risks in the design firms’ culture. The suggested model employs an 8-step process based on John Kotters’ book Leading Change, and utilizing a committee approach as part of the process. If implemented properly the change management model and committee approach suggested should provide the reader the tools necessary to help ensure a successful transition is achieved from traditional methods to the use of BIM and IPD.
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2010-12-17
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