Considering Overhead and Profit in IPD - A Position Paper
A continual area of challenge for companies and teams entering into IPD projects is understanding exactly how overhead and profit are handled. On what are they based? How are they calculated? What’s included or excluded? Designers and constructors calculate them differently--why is that, and how are those differences accommodated? These are just a sampling of the kinds of questions that typically arise.
Written by experienced IPD professionals and shared publicly, the goal of this paper is to improve transparency and provide clarity to the market and the RFP process, helping owners, individuals, companies, and teams navigate the topic by suggesting specific solution paths (and outlining their ramifications), showing examples, and providing sample calculation templates.