Lean IPD allows you to complete large construction and infrastructure projects faster and cheaper. These Lean IPD tips increase your chances of success:
Essential tips for optimal success with Lean IPD
Lean IPD is a relatively new but highly efficient method for delivering large construction and infrastructure projects within time and budget. Lean IPD combines principles from Lean Management with intelligent contracts between different builders.
Lean IPD contracts ensure that all builders benefit from a quick and cost-effective project. The more risk the partners take and the faster and more economical they deliver, the more profit they can make.
Sounds good, of course, and the following Lean IPD tips will give increase the chances of a successful project even further.
6 tips for successfully applying Lean IPD
1. Select the right partners
Lean IPD depends on good cooperation between all partners in the construction or infrastructure project. All partners must be reliable, willing and able to cooperate optimally. Otherwise, a Lean IPD project becomes loss-making for all parties involved. Everybody wins or everybody loses.
Therefore, think carefully in advance about the criteria that will be used to choose potential partners.
2. Start on time
Lean IPD expects you to make clear agreements with all partners early in the project. Each party must think carefully and disclose their costs, the lead time of the works and the risks they can take.
Only when everyone has put their cards on the table, the Lean IPD contract is drawn up and the project can begin. The sooner there is clarity, the better.
3. Involve all parties from the beginning
Lean IPD assumes that you come to good agreements with all builders early in the process. After all, all partners sign the same common contract. The information and choices of one builder can influence the choices of another.
Therefore, involve all parties from the start in determining timelines and risk appetite. Adding parties to the contract at a later date is usually less easy.
4. Make sure everyone understands the benefits of Lean IPD
Lean IPD is only successful when all parties are committed to the project in the best possible way. To achieve this, all parties must understand the benefits of Lean IPD, both for the project (fast and budget-friendly delivery) and for their own company (increased profits).
The added value of Lean IPD is determined by the risk all stakeholders are willing to take. If they are sure of their delivery capabilities and cooperation, then they can put more money at risk for the chance to make more profit from the project.
5. Provide good change management and people management skills
Since a lot is decided beforehand and the interests of all parties are fixed in one common contract, changes during the project are often extra sensitive.
Provide a project manager with good change management and people management skills who uses open communication to get all partners to accept and comply with necessary changes during the project.
6. Make use of external experts
When different parties need to be aligned, it can be useful to call on an external party who can stand back and objectively view and reconcile different points of view.
External experts can also play different roles in the different phases of Lean IPD projects:
- during the preparation phase, an external expert can help with risk simulations and contract negotiations.
- during the project, an external expert can help align (the external interests of) the various parties.
- after the project is completed, an external party can objectively look back on the project and collect lessons learned. Towards future projects, this can be particularly useful.
More Lean IPD tips?
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