AIA Expands Dialogue on Construction Inefficiencies
Much is being written these days about the construction industry’s problems with productivity, cost over-runs and inefficiencies. For some time many of us have suspected the systems that are ingrained in the business are no longer working. Now the American Institute of Architects (AIA) and its California Council are advancing Integrated Project Delivery (IPD). In a press release the AIA pointed to studies highlighting construction performance.
Recently, a number of studies have been conducted which show increasing inefficiencies and waste in the construction industry. An Economist article from 2000 identifies 30 percent waste in the U.S. construction industry; a National Institute Standards and Technology (NIST) study from 2004 targets lack of interoperability as costing the industry $15.8 billion annually; and a U.S. Bureau of Labor Statistics study shows construction alone, out of all non-farm industry as decreasing in productivity since 1964, while all other industry has increased productivity by over 200 percent. These inefficiencies, coupled with new technologies such as building information modeling (BIM) and owner demand for better quality and cost controls, have created a need for a collaborative approach to construction and design.
Collaboration is the operative word there. Incentives to collaborate haven’t been there because as James R. Bedrick, AIA, puts it the… fundamental problem with almost all current models is that compensation for both the designers and the builders is based on the costs of the project rather than the value they produce.
In effect, higher cost is rewarded.
The AIA has a free guide to IPD that puts forth a model for the industry to achieve an integrated project team approach to building. It also takes you through project execution and gets into contractual arrangements that will enhance team integration. For those of you into design build, this may be an eye opener. For those of you looking for a better way to build that focuses on long-term happiness for all players you will like it.
Lively Discussion