Design to Fixed Target Cost
What if we tied the team’s profit to a fixed cost before design began? That’s the key to Integrated Project Delivery. Sutter Health faced a crisis in their business. The cost of delivering hospitals using CM, DB or LS approaches had risen to $2 million per bed. Yet, the business case didn’t make sense past $1.5 million. They challenged their partners to find a better way to build. The challenge was accepted and integrated project delivery was born as a means to eliminate financial waste.