Learning through Failure - the Challenge of Lean Project Delivery from the Contractor´s Perspective in Peru

Alonso Medina1

1Head of the Corporate Learning Center, Graña y Montero, Av. Paseo de la República 4667, Surquillo, Lima 34, Perú, Phone +051 213-6565, alonso.medina@gym.com.pe

Abstract

Collaborative agreements are fairly recent and started as a customer need to find a new form of contractual agreement that foster collaboration between parties. The basic requirements are a trustworthy and knowledgeable client, an experienced team, and a contract that promotes collaboration. The construction industry in Peru has used traditional project delivery systems such as Design-Bid-Build, Design-Build, and occasionally Construction Management at Risk – always pursuing the lowest cost for an average design. In the pursuit of offering the optimal cost for a better design, the proposal to implement an Integrated Project Delivery (IPD) was put forward by the general contractor rather than by the customer – in contrast to the Sutter Health experience. The challenge of applying IPD as a contractor’s initiative increases due to a resistance to change, fear, the unawareness of middle managers, flawed bonus schemes, and late involvement in the design phase, among others. Many efforts have been made to use IPD, however we have not yet considered whether the Peruvian construction industry is ready for such a disruptive delivery system or if IPD has to be adapted to our reality. This paper aims to explain the successes and failures in the pursuit of an IPD in Peru and concludes with lessons learned and guidelines for further investigations to explore IPD applications in Peru.

Keywords

Integrated Project Delivery, IPD, Collaborative Agreement, Target Cost, Project Delivery System

Files

Reference

Medina, A. 2014, 'Learning through Failure - the Challenge of Lean Project Delivery from the Contractor´s Perspective in Peru' In:, Kalsaas, B.T., Koskela, L. & Saurin, T.A., 22nd Annual Conference of the International Group for Lean Construction. Oslo, Norway, 25-27 Jun 2014. pp 1425-1433

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