Dive Brief:
- Inspira Health Network has awarded Skanska USA a $200 million contract to build its new $350 million inpatient hospital in Harrison Township, NJ, according to the Philadelphia Business Journal.
- Skanska said it will use the integrated project delivery (IPD) method in construction of the five-story, 204-bed facility, and it will move forward with the architect (Array Architects) and engineer (Leach Wallace Associates) as partners in a single contract. Together, they will design and build a 41,000-square foot hospital as well as a new central utility plant.
- Skanska USA Executive Vice President and General Manager Ed Szwarc told the Business Journal that the hospital is the company's largest IPD project in North America so far and allows all parties to "share the risk and reward."
Dive Insight:
The typical IPD arrangement involves the architect, engineer and lead contractor entering into a single contract for a project, but the arrangement can also include large subcontractors and suppliers. Together they collectively determine project goals, costs, risk sharing, compensation and general responsibilities. The stakeholders in the IPD can form a limited liability company (LLC) or use an American Institute of Architects' IPD agreement to spell out all of the details of the project, and they typically waive liability claims against each other.
Magleby Construction Sun Valley Group Manager Layne Thompson told a group at the International Builders' Show last year that if executed correctly, IPD projects can speed up the schedule, promote adherence to the budget, keep change orders to a minimum and allow the establishment of preferred partnerships early in the project timeline. However, the newer method often faces obstacles from contractors and owners who worry about the legal risks associated with the project, as well as the construction industry's overall aversion to change.
Last month, Skanska announced its involvement in two other major U.S. hospital projects. The company won the $178 million contract to build the new Women and Children's Health Building for Christiana Care Health System in Newark, DE. Skanska is also part of a $206 million joint venture with Closner Construction for a 538,000-square-foot 243-bed Duke Lifepoint Healthcare facility in Marquette, MI.
