Mapping how IBA delivers on the Construction Playbook
The Construction Playbooks are full of valuable narrative, “policies” and “drivers” but these do not automatically translate into successful delivery of the Treasury’s call to “change our approach to delivery”. Insurance Backed Alliancing (“IBA”) may not be the only answer, but it is now proving to be a unique one upon which you can rely, as demonstrated by the Second Prospectus of the Dudley College Institute of Technologies Alliance.
By way of short explanation, this mapping tool shows the relationship between the IBA processes and the Playbooks’ policies and drivers (other than those which are pre-alliance) and then maps these processes against the required outcomes. To facilitate causal connections the Playbook’s “build better faster greener” outcomes have been expanded into some more specific terms as follows:
-
Better: improved quality, value for money and raising productivity
-
Faster: optimising programme and predictability of delivery
-
Greener: low carbon/sustainability
followed by the two “cross-cutting priorities” relating to safety.
“Pop-up” windows appear when you hover your cursor over any coloured field and elaborate (a) each stage of the IBA process or (b) each ticked causal connection to each outcome.
Public Playbook Chapters
Private Playbook Chapters
Playbooks for
-
Public sector policies
[Government Guidance]
-
Private sector drivers
[Trust and Productivity]
Procurement & IBA Phases
Playbook Outcomes
"Driving better, faster greener delivery”with cross- cutting priorities
Insurance Backed Alliancing Processes
Improved Quality
Value for Money
Raising Productivity
Optimising Programme
Predictability of Delivery
Low Carbon /Sustainability
Safety of Products & Services
H&S & Wellbeing in Workplace
3.2 | 2 | Outcome-based brief | P | Client defines need – solutions, informed by the industry, follow | ||||||||
5.1 | 1 | Benchmarking | Benchmarked and prioritised targets – outcome based | |||||||||
7.1
8.0
| 2 | Risk Allocation
Economic Status
| Independent assurance collaboratively minimises risk for
whole alliance, including suppliers
| |||||||||
6A | 4/5 | Effective contracting; alliances partnerships and frameworks | Earliest selection of whole alliance - contract signed;
cultural and commercial interests aligned
| |||||||||
3.1 | 3 | Early supplier engagement | 1 | Alliance engages suppliers’ expertise to identify innovative options such as MMC, standardisation and digital twin to meet client needs | ||||||||
2.2 | 6/8 | Embed digital
technologies
| Interactive digital twin to produce “best for project”
solution – one team one platform one model
| |||||||||
5.2 | 8 | Delivery model
assessments
| Proposition for full development and delivery agreed; final
funding provided; unique IPI policy incepted
| |||||||||
6B | 5/8 | Effective contracting; value-based procurement | 2 | Add remaining suppliers and execute agreed plan.
At completion prove Fitness for Defined Purpose
| ||||||||
7.2 | 4 | Payment and pricing | Payments through PBAs, target cost owned and managed by
whole alliance, outcomes incentivised
| |||||||||
10 | 7 | Resolution Planning | Independent assurers, governance transparency and
maximum liability minimise risk for whole alliance
| |||||||||
8/9 | Handover and effective aftercare
| 3 | Seasonal commissioning, ongoing FM support, digital O&M
and LDI, lessons learnt shared for continuous improvement
|
Improved Quality 3.2
Optioneering by IPT focussed on client needs, with supplier product knowledge from the outset instead of optimisation of tender position(s). Such expert advice may allow client to re-evaluate priorities.
Value for Money 3.2
“Trinity” approach to give scorecard-based priority to deliver value – profit separated from cost of the works so focus is on “best for project” outcome instead of optimised return for partners
Raising Productivity 3.2
Liberation of IPT from imposed processes and solutions, enabling ownership for success. With a clear focus on objectives and priorities from the start there is no delay due to uncertainty.
Predictability of Delivery 3.2
IPT-wide ownership of solutions, logistics and programmes, backed by incentives and overrun cover – clear target / critical delivery dates are set and one version of the truth ensures everyone can track progress.
Low Carbon/Sustainability 3.2
Collective knowledge of partners and suppliers, motivated by success criteria with incentives that focus the team on achieving the agreed performance criteria.
Safety of Products and Services 3.2
Collective knowledge of partners and suppliers, motivated by success criteria – project sign off includes 3rd party technical audit
H&S and Wellbeing in the Workplace 3.2
Collective knowledge of partners, suppliers and operators, motivated by success criteria – collaborative culture adopted and monitored throughout for the benefit of all stakeholders.
Improved Quality 5.1
With all skills in the IPT the cost and time to deliver best quality can be reliably benchmarked to ensure it meets the performance criteria, delivering outcomes which are of an appropriate standard and durability.
Value for Money 5.1
With all skills in the IPT VFM can be benchmarked free from traditional process waste and impositions delivering outcomes which are more suitable, functional and affordable.
Optimising Programme 5.1
With integrated collaborative working and digital twin the IPT collectively develops the most efficient sequence for building. Team members agree who needs to do what and when, enabling work to seamlessly flow from trade to trade.
Predictability of Delivery 5.1
Upfront collaborative team development provides a fully informed digital delivery plan enabling everyone to visualise, track performance against targets and take corrective action as necessary.
Low Carbon/Sustainability 5.1
Collaboration of design, supplier and FM experts enables low carbon to be embedded in solutions and measured against the established building performance criteria.
Safety of Products and Services 5.1
Specialists’ and supplier participation in the alliance ensures practical approaches to safe solutions
H&S and Wellbeing in the Workplace 5.1
Workplace wellbeing in accordance with the “alliance principles” is embedded in solutions, collaboratively adopted and monitored throughout.
Improved Quality 7.1/8.0
Independent assurers and partners contribute expertise to incorporate the most innovative and appropriate design, materials and products to minimize risk of defects and maximise life cycle efficiencies
Value for Money 7.1/8.0
Innovation is a primary means for delivering VFM: independent assurance underpins innovation and draws on a wide range of experience to provide advice when queries arise.
Predictability of Delivery 7.1/8.0
Regular interactive third-party reviews minimise the risk of errors and omissions remaining undetected
Safety of Products and Services 7.1/8.0
The third-party assurers raise any safety risks for proactive resolution
H&S and Wellbeing in the Workplace 7.1/8.0
The facilitator and third-party assurers raise any H&S or wellbeing issues including any departure from the alliance principles for proactive resolution
Improved Quality 6A
By being collectively responsible, the IPT self-assures quality; and great teams aspire to “deliver better”, with specialists recommending best materials, products and design to enhance the quality of the project.
Value for Money 6A
Alliances of high calibre people in all required disciplines working collaboratively deliver VFM.
Raising Productivity 6A
Team agrees and implements the best approach based on collective experience thus eliminating the duplication and reworking that comes with poorly coordinated/managed activity
Optimising Programme 6A
From commencement each alliance partner and supplier is ready to mitigate each other’s constraints, optimising programme by agreeing the most efficient sequencing and workflow between trades.
Predictability of Delivery 6A
By engaging key suppliers at the outset, the partners can plan on known data and firm commitments. The whole alliance is incentivised to achieve time objectives
Low Carbon/Sustainability 6A
By engaging key suppliers at the outset, the alliance has access to their R&D/product knowledge
Safety of Products and Services 6A
By engaging key suppliers and a FM partner, the alliance can develop solutions on safe principles
H&S and Wellbeing in the Workplace 6A
Partners and suppliers with focus on site operations ensure safe and fair treatment at the workplace
Improved Quality 3.1
Supplier product knowledge, controlled factory manufacture and buildability expertise obviates unnecessary untried bespoke solutions, improving reliability and mitigating the risk of defects.
Value for Money 3.1
Supplier product knowledge, controlled factory manufacture and buildability expertise obviates unnecessary untried bespoke solutions, improving reliability and mitigating the risk of defects.
Raising Productivity 3.1
When engaged early enough to influence designs including with MMC, suppliers readily collaborate to optimise sequencing, logistics and activity durations.
Optimising Programme 3.1
Programmes are built on firm information about supplier activities, both in the factory and also interfaces on site, reducing “dead time” and maximising efficiencies.
Predictability of Delivery 3.1
By engaging key suppliers at the outset, the partners can plan on known data and firm commitments on well developed solutions, optimising MMC wherever appropriate.
Low Carbon/Sustainability 3.1
By engaging key suppliers at the outset, the alliance has access to their R&D/product knowledge to minimise the environmental impact of the build process and maximise the performance of the facility.
Safety of Products and Services 3.1
By engaging key suppliers and a FM partner, the alliance can adopt safe working methods, processes and safe-to-operate solutions both in factory and on site.
H&S and Wellbeing in Workplace 3.1
Partners and suppliers with focus on safety and operability produce safe manufacturing and site operations for all and the best workplace outcomes.
Improved Quality 2.2
Digital twin utilising the early integration of specialists’ expertise/design facilitates optioneering, right first time design and clash detection, leading to the production of the best truly coordinated solution.
Value for Money 2.2
Transparency during delivery avoids the time and cost of reworking and with early optioneering including regular reaffirmation of cumulative cost, solutions can be tested virtually, enabling the client and end users to focus on suitability of outcomes.
Raising productivity 2.2
When engaged early enough to influence designs including with MMC, suppliers readily collaborate to optimise sequencing, logistics and activity durations.
Optimising programme 2.2
Programmes are built on firm information about supplier activities, both in the factory and also interfaces on site, reducing “dead time” and maximising efficiencies.
Predictability of deliver 2.2
By engaging key suppliers at the outset, the partners can plan on known data and firm commitments on well developed solutions, optimising MMC wherever appropriate.
Safety of products and services 2.2
By engaging key suppliers and a FM partner, the alliance can adopt safe working methods, processes and safe-to-operate solutions both in factory and on site.
Optimising programme 5.2
The transition to Phase 2 ensures clarity about the ongoing project and confirms the input of the relevant expertise required to deliver the most efficient “faster delivery”.
Predictability of delivery 5.2
The transition to Phase 2 only occurs when the alliance partners are confident that the solution can be delivered within the agreed time and cost parameters.
Low carbon/sustainability 5.2
As a prerequisite to moving to Phase 2 delivery, any requirements for low carbon will be identified, incorporated and assured.
Improved Quality 6B
The process of integration of new suppliers and the focus on compliance with the PEP assure quality and the strategic brief is used to validate detailed development and delivery on an ongoing basis.
Value for Money 6B
By ensuring “fitness for the purpose defined in the strategic brief”, VFM remains a focus during delivery, with the agreed success criteria used to validate the suitability of the outcomes delivered.
Raising Productivity 6B
Alliance partners and suppliers are incentivised to deliver below the target cost to achieve gainshare.
Optimising Programme 6B
Alliance partners and suppliers are incentivised to deliver by the target date to realise gainshare.
Predictability of Delivery 6B
Alliance partners and suppliers are incentivised to keep to time; ongoing monitoring of programme, activity and resources, plus realisation of opportunities and mitigation of risks, means accuracy improves as the project progresses.
Safety of Products and Services 6B
The third-party assurer regularly monitors compliance with the Project Execution Plan, identifying for rectification any non-conformance with the strategic brief.
H&S and Wellbeing in the Workplace 6B
Suppliers are encouraged to uphold compliance with the Project Execution Plan and strategic brief, identifying potential issues and recommending improvements.
Improved Quality 7.2
Timely cashflow both facilitates and motivates quality work; defects delay completion, risking gainshare – knowing you will be paid for what it is agreed you need to do means you can focus on delivering it instead of looking for alternatives to improve your profitability.
Value for Money 7.2
Timely cashflow and collective budget ownership motivate commitment to the right solutions; it encourages early procurement of materials to secure best prices thus delivering VFM.
Raising Productivity 7.2
Timely cashflow together with incentivised process improvement and right first-time delivery, aid productivity; greater certainty on cashflow promotes greater commitment to resources.
Optimising Programme 7.2
Timely cashflow underpinned by incentives on cost and time are powerful motivators to faster delivery; people commit to a project on which they know they are going to be rewarded fairly.
Predictability of Delivery 7.2
Timely cashflow underpinned by incentives on cost and time powerfully motivate people to take greater ownership, commit the necessary resources and deliver on their promises.
Improved Quality 3.2
Optioneering by IPT focussed on client needs, with supplier product knowledge from the outset instead of optimisation of tender position(s). Such expert advice may allow client to re-evaluate priorities.
Value for Money 10
Insurers state that failure to collaborate is the greatest threat to successful projects. The transparent process underpinned by alliance principles means IBA protects VFM as all parties are aware and committed to rectify any shortcomings.
Predictability of Delivery 10
Ongoing third-party reviews and the insurers’ indemnity support any special measures to ensure completion. The no blame culture leads to rapid and amicable problem resolution.
Improved Quality
For the user “quality” means enabling unfettered operational performance: this is the focus of Phase 3
Value for Money
Post completion is where VFM is truly judged and IBA delivers the agreed outcomes, defect-free and with LDI cover to respond to future failures.
Raising Productivity
Digital O&M supports efficient facilities management, with remote monitoring from product sensors. Operational performance which meets the needs of end users unlocks productivity for years to come
Predictability of Delivery
From “soft landings” to 12 years after completion IBA offers maximum support to the user; thorough system interface testing and performance proving demonstrate the facility and services operate as expected.
Low Carbon/Sustainability
Digital O&M supports efficient facilities management with particular focus on sustainable operation. Construction solutions designed with operation in mind and supported by those who developed them, lead to facilities being run as intended and performing as expected in Phase 3.
Safety of Products and Services
Having been comprehensively tested and proved, products and services are both suitable for safe operation and maintenance.
H&S and Wellbeing in the Workplace
Having been a member of the IPT, the FM provider ensures H&S compliance and a build solution that promotes wellbeing in workplace.
Low carbon/sustainability 2.2
By engaging key suppliers at the outset, the alliance has access to their R&D/product knowledge to minimise the environmental impact of the build process and maximise the performance of the facility.
H&S and wellbeing in workplace 2.2
Partners and suppliers with focus on safety and operability produce safe manufacturing and site operations for all and the best workplace outcomes.
Improved quality 5.2
As a prerequisite to moving to Phase 2 delivery, the quality level is determined and “locked in” and only solutions which satisfy the necessary purpose, and quality and risk criteria are endorsed for delivery and insured.
Clients defines the need – solutions follow
What is the primary need, what would success look like, what “social value” drivers are there, and how much does the client want to invest?
Benchmarked and prioritised targets – outcome based
A focus on “what should it cost”, “how long should it take” and “how can this be improved” to deliver best practice solutions which minimise waste and inefficiency.
Independent assurance collaboratively minimises risk for the whole alliance
Progressive alliances innovate and seek to deliver beyond expectations: independent third-party technical and financial risk assurance, delivered interactively and collaboratively, gives partners and suppliers confidence, as it also does to the client, insurers and any funders. Collective ownership of risk means solutions which minimise risk can be adopted, led by the most appropriate partners to oversee mitigation of that risk
Earliest selection of the whole alliance – contract signed; cultural and commercial interests aligned
Firms and project staff are specifically selected for their collaborative alliancing ethos as well as their skills and track record of successful project delivery. Once appointed, the partners cease being individual firms and people and become an alliance culturally and commercially aligned around the client. Great teams of great people deliver great outcomes.
Alliance engages suppliers’ expertise to identify options to meet client needs
The early integration and collaboration of design partners and key deliverers/suppliers yields more than the sum of the parts; solutions which are usually too late to be considered are bought to the table from the beginning.
Interactive digital twin to produce “best for project” solution – one team, one platform, one model
The IBA leads to more appropriate outcomes through the collaborative use of digital twin, without silo protections and constraints. Paper drawings and submittals are minimised with the potential to move to 4D and 5D, enabling full co-ordination of time and cost of delivery.
Proposition for full development & delivery agreed; final funding provided; unique IPI policy incepted
Transition to detail design and delivery only occurs once a rigorous review of the proposed solution has confirmed it will be “fit for the purpose defined in the strategic brief”. It must be recommended by the client and alliance partners, endorsed by the assurance team, and accepted by the insurers and funders.
Add remaining suppliers, execute agreed plan and prove Fitness for Defined Purpose
Key suppliers are imbedded during phase 1; the remaining suppliers are appointed in phase 2 in accordance with the agreed Project Execution Plan. The focus is then on efficient and timely execution, with progressive assurance testing, leading to proving that the facility is “fit for the purpose defined in the strategic brief”. Completion is independently verified by the third-party assurer after any rectifications, and approved by the alliance board
Payments through PBAs, target cost owned & managed by whole alliance, outcomes incentivised
Cost is developed top-down to be affordable within the client’s funding limit and the alliance is incentivised to achieve that cost. Payments are made on forecast, reconciled during each cycle and made through a PBA to ensure funds are held in trust and released at the same time to partners and key suppliers – and ongoing to the other suppliers.
Independent assurers, governance transparency & maximum liability minimise risk for whole alliance
Under IBA disputes are “managed out” before they can materialise; the alliance principles are agreed at the outset, underpinning collaboration; the third-party assurers assist the alliance members in finding practical solutions to issues and each partner is free to collaborate beyond boundaries because they know in advance their maximum liability.
Seasonal commissioning, ongoing FM support, digital O&M and LDI, lessons learnt shared
“Transition to Operation” (Chapter 12 of the Playbook) has no policies but messages clearly the need for early preparation for “soft landings”. The IBA process includes rigorous performance testing and gathers O&M data through digital twin; seasonal commissioning (Phase 3) provides ongoing monitoring and evaluation and lessons learnt. Latent Defects Insurance cover extends for 12 years to address latent defects without allocation of blame. Feedback informs future improvement.