The American Institute of Architects (AIA) introduced two new types of Integrated Project Delivery (IPD) agreements aimed at fostering BIM adoption by its architectural member firms

In an effort to move the industry forward towards adoption of BIM (building information modeling) the AIA introduced two types of Integrated Project Delivery agreements. These new standard form contracts, which implement the principles and concepts laid out in Integrated Project Delivery: A Guide, provide two levels of design and construction integration.

The first type of agreement is meant as a transition bridge towards integrated project delivery. The second type of agreement is based on a Single Purpose Entity (SPE) designed to introduce a fully integrated way of delivering a construction project. Both types provide a roadmap for implementing IPD and are key to BIM adoption.

"We are excited to introduce these agreements, which provide a clear set of guiding principles to implement the business models and objectives we laid out in the IPD Guide," said Suzanne Harness, managing director and counsel, AIA Contract Documents. "By providing both the transitional forms and a full integration approach, parties can select the format that works best for their projects."

Agreements for BIM: B195/A195-2008 and C195-2008

Transitional agreements:

AIA B195-2008 is a new owner-architect contract document. AIA A195-2008 is a new owner-contractor contract document. Both are rather short and focus on business terms as they are coupled with the new and lengthy AIA A295-2008 "General Conditions" document that defines both respective duties for owner, architect, and contractor, and also describes in detail how all parties are to work together at each phase of the project. Both types of documents require the use of Building Information Modeling (BIM) -- not CAD. And both types reformat the nomenclature of the past concerning phases. The IPD phasing is as follows:

• Conceptual Phase (expanded programming) - This phase determines "what" is to be built, who will build it, and how it will be built. The architect, contractor and key consultants are on board. Program is finalized, schedules are prepared and key subcontractors and suppliers are identified.
• Criteria Design Phase (expanded schematic design) - In this phase design takes shape with significant input from the contractor regarding cost, scheduling, and constructability.
• Detailed Design Phase (expanded design development) - During detailed design all key decisions are finalized. At the conclusion of this phase the contractor will prepare a guaranteed maximum price proposal for the owner's acceptance.
• Implementation Documents Phase (expanded construction documents) - The traditional shop drawing process is merged into this phase and that information is added to the BIM (building information modeling) data.
• Construction Phase - Because of the greater effort put into finalizing all design decisions and incorporating shop drawing information prior to construction, the construction phase under IPD will be much more efficient. Unlike the traditional approach where dispute resolution procedures between owner and contractor and owner and architect may be separate, A295-2008 contemplates completely consolidated proceedings.

Under this format the contractor and subcontractors and fabricators can utilize the BIM prior to construction, thereby increasing accuracy and resolving issues prior to construction.

SPE agreement:

AIA C1950-2008 is a more revolutionary "one-for-all-and-all-for-one" model where the owner, architect and construction manager form a limited liability company (LLC) with each entity as a company member. The single purpose of the company is to plan, design, construct, and commission the project. This revolutionary approach incorporates:

• Mutual, unanimous decision making - SPE makes decisions through the unanimous vote of its members acting through a governance board; for day to day operations a Project Management Team makes all decisions unanimously on a "best for project" basis.
• Mutually agreed upon target cost - Members agree upon a target cost to complete the design and construct the project. If they cannot agree upon a target cost, the SPE dissolves.
• Mutually established performance goals - Members mutually agree upon performance and schedule goals with associated compensation for goals achieved, and establish them in an exhibit to the agreement. If a goal is achieved, all members benefit; if a goal is not achieved, no members benefit.
• Cost-based compensation - Non-members earn profit only through the achievement of performance goals, or from sharing any savings achieved by completing the project for less than the amount of the target cost.
• A waiver of claims - Members waive claims against the company and against each other (other members), except for willful misconduct; company exculpates and indemnifies its members on the same basis. As a result, all disputes are resolved through the SPE's dispute resolution procedures, rather than in court.

C195-2008, Single Purpose Entity Agreement for an Integrated Project, is currently available with a number of optional exhibits, including the Target Cost Amendment. To avoid challenges presented by state licensing statutes, the SPE performs professional design services and construction management services by contracting with its members. The AIA plans to release a standard form SPE-Member services agreement and SPE-Owner agreement in November 2008. These agreements will define the relationships between the SPE and its members.

The benefits of the SPE include greater efficiency, optimal project outcomes and goal achievement and reduced claims.

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