Integrated Project Insurance
Achievement of another ground-breaking milestone
IPInitiatives are pleased to announce that IPI brokers Griffiths & Armour have placed the first-ever “Integrated Project Insurance” (“IPI”) policy on Dudley College’s Innovative new building to provide training in leading construction technologies; “Advance II”.
Developed in partnership with IPInitiatives, the policy uniquely covers cost overrun on a “no blame” basis, and embedded within the IPI product are measures to minimise risks of delays and cost increases: independent facilitation and technical/financial risk assurance. Given that it includes latent defects cover for 12 years, it is broadly cost neutral; and can therefore provide a cost-effective form of financial security to any funder.
This is the third in a series of ground-breaking milestones, the first two being:
- Procurement of an Alliance of six partners simultaneously under the Restricted Procedure of the EU Directive, using “cost effectiveness” and the cutting of process waste – not lowest cost pricing – as the key criterion for the award of the “most economically advantageous” bids; this was achieved in just six months and without any hint of legal challenge
- Signature (on commencement) by the College and the five partners of the first Alliance Contract for use with the IPI model; this includes no blame/no claim undertakings, omits all clauses that proliferate process waste, and includes gain/pain share formulae geared to collective delivery, on time, of a solution that is “fit for the purpose” set out in the strategic brief.
Dudley College Advance II was accepted on the Cabinet Office’s Trial Projects Delivery Programme on 30 July 2014, and Phase 1 of the Alliance Contract started on 8 May 2015; Phase 2 started on 1 March 2016 and completion is due in June 2017.
The project is supported by a 4-year Innovate UK grant “delivering more for less under the IPI model”, with a consortium of eight industry partners and Reading University, and a full report will be issued after completion, in late 2017.