In the Integrated Project Delivery (IPD) process, one core idea is that there is shared risk and responsibility for the delivery of the project. This has made it difficult on the companies who insure these project teams as the normal approach is that each player on the project has their own liability insurance. That approach is based on the suspicion by team members that one of their partners might be intentionally negligent leading to a loss of life or shoddy construction.
According to Green Source Magazine, “The $385 million Owensboro Medical Health Center project in Owensboro, Kentucky, is using IPD and has a single-project insurance policy that covers the entire team, in addition to the conventional Owner-Controlled Insurance Program (OCIP) for construction-related risks.”
Markku Allison, resource architect for The American Institute of Architects (AIA), is quoted in the Green Source article about the importance of finding new insurance models such as this to cover projects with shared risk and responsibility, because traditional insurance policies don’t cover all of the concerns which may come up on an IPD project.
This is a breakthrough in the insurance industry and may become a benchmark for future IPD projects around the country.
Photos courtesy of Owensboro Medical Health System.
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