Lean Integrated Project Delivery
5 minutes
5 Questions
Lean Integrated Project Delivery (Lean IPD) is a collaborative delivery method that combines the contractual structure of Integrated Project Delivery with Lean construction principles and tools. In the PMI Construction Professional (PMI-CP) framework, it is a relationship-based model within the contract lifecycle. It emphasizes shared risk, shared reward, and early involvement of all key stakeholders, in contrast to traditional transactional methods such as Design-Bid-Build. The contractual foundation is usually a multiparty agreement, often called an Integrated Form of Agreement (IFOA). The owner, designer, and builder, and sometimes key trade partners, sign one contract instead of separate bilateral contracts. This aligns everyone's interests around project success rather than individual profit. Key contractual features include: - A shared risk and reward pool, where profit depends on meeting cost, schedule, and quality targets. - Limited liability waivers among the parties, which encourage open communication and innovation. - Collective decision-making through governance bodies such as a Project Management Team and a Senior Management Team. - Transparent, open-book accounting. The Lean component provides the operating system for delivery. Common practices include: - Target Value Design (TVD), which designs to a set target cost instead of estimating cost after design. - The Last Planner System (LPS), a pull-based planning method that improves workflow reliability and reliable commitments. - Continuous improvement, waste reduction, and value stream mapping. - Big Room co-location, which supports real-time collaboration. - Building Information Modeling (BIM), used for integrated design and clash detection. Within the contract lifecycle, Lean IPD shifts effort to the early phases. Intensive collaboration during validation and conceptualization establishes the business case, the allowable cost, and the target cost. Procurement focuses on selecting partners for their collaborative capability rather than lowest price. For PMI-CP practitioners, the main benefits are fewer disputes, better predictability, and greater value for the owner. The main challenges include cultural resistance, the need for mature and trusting relationships, legal unfamiliarity, and the strong owner commitment required for success.
Lean Integrated Project Delivery (Lean IPD): A Complete Guide for the PMI-CP Exam
Introduction
Lean Integrated Project Delivery (Lean IPD) is one of the most collaborative and transformative contract and delivery approaches in the construction industry. For the PMI Construction Professional (PMI-CP) exam, you need to understand what Lean IPD is, why it exists, how it works in practice and how it differs from traditional delivery methods such as Design-Bid-Build (DBB), Design-Build (DB) and Construction Manager at Risk (CMAR). This guide covers each of these areas and ends with targeted exam tips.
Why Lean Integrated Project Delivery Is Important
Traditional construction delivery models often split responsibility, risk and reward among the owner, designer and builder. That split creates predictable problems:
• Adversarial relationships: Each party protects its own interests, which leads to claims, disputes and litigation.
• Waste: Rework, waiting, over-processing, change orders and poor coordination drive up cost and delay schedules.
• Late involvement of builders: Contractors join after design is complete, so constructability knowledge arrives too late to shape the design.
• Information silos: Design and construction knowledge is not shared in real time.
• Misaligned incentives: A contractor may profit from change orders, while a designer may have no stake in construction efficiency.
Lean IPD addresses these problems by aligning everyone's commercial interests with project success. It matters for several reasons:
• Better value for the owner: Waste is eliminated and spending is focused on what the owner values.
• Fewer disputes: Shared risk and reward, often with liability waivers among the core parties, reduce litigation.
• Innovation: Early involvement of all key players encourages creative problem solving.
• Predictability: Lean planning tools such as the Last Planner System improve reliability of schedule commitments.
• Industry trend: Complex projects such as healthcare facilities, laboratories and campuses increasingly use IPD, so construction professionals must understand it.
What Lean Integrated Project Delivery Is
Lean IPD combines two complementary ideas:
1. Integrated Project Delivery (IPD): A delivery method and contractual arrangement that brings together people, systems, business structures and practices. It uses the talents and insights of all participants to optimize results, increase value to the owner, reduce waste and maximize efficiency through all phases of design, fabrication and construction. The American Institute of Architects (AIA) and AIA California Council have published widely used definitions and guides for IPD.
2. Lean Construction: A production management philosophy adapted from the Toyota Production System and lean manufacturing. Its focus is maximizing value and minimizing waste. The Lean Construction Institute (LCI) has been instrumental in developing lean construction practices.
Lean IPD is therefore the use of an integrated, collaborative contract structure (the commercial and legal framework) combined with lean operating principles and tools (the production and management system).
Key Defining Features of Lean IPD
• Multi-party agreement: The owner, the architect/designer and the general contractor/construction manager, often with key trade partners and consultants, sign a single contract. One example is an Integrated Form of Agreement (IFOA).
• Early involvement of key participants: Builders, trade partners and designers engage from the earliest conceptual stages.
• Shared risk and reward: Profit is pooled and placed at risk. If the project meets cost and quality goals, the team shares the savings. Overruns reduce the shared profit.
• Collaborative decision-making: Decisions are made jointly, often by a Project Management Team (PMT) and a Senior Management Team (SMT).
• Liability waivers: Parties commonly waive claims against each other, except in cases such as willful misconduct, to encourage open communication.
• Jointly developed and validated targets: Cost, schedule and quality goals are set together through a validation phase.
• Open books and transparency: Financial information is shared openly among the parties.
• Co-location: Teams often work in a shared space, sometimes called a Big Room, or Obeya.
Core Lean Principles Applied in Lean IPD
• Value: Defined from the owner's or customer's perspective.
• Value stream: Map all the steps needed to deliver value and remove those that do not add value.
• Flow: Keep work flowing smoothly without interruptions.
• Pull: Work is released only when the downstream process is ready, which avoids overproduction.
• Perfection / continuous improvement: Pursue improvement continuously (Kaizen).
• Respect for people: Empower the people doing the work.
The Eight Wastes (DOWNTIME)
Lean seeks to eliminate eight types of waste:
• Defects (rework)
• Overproduction
• Waiting
• Non-utilized talent
• Transportation
• Inventory
• Motion
• Extra-processing
How Lean IPD Works
Phase 1: Team Assembly and Contracting
The owner selects key participants based on qualifications, collaborative culture and value rather than lowest bid. Selection often involves interviews and workshops. The core team signs a multi-party agreement that sets out:
• Governance structure (SMT, PMT, Project Implementation Teams)
• The risk/reward pool and the profit-at-risk mechanism
• Cost reimbursement terms, usually actual costs paid at cost with profit held separately
• Liability waivers and dispute resolution procedures
• Decision-making rules, typically consensus-based
Phase 2: Validation (Conceptualization)
The team studies the owner's business case, needs and constraints. It confirms whether the project can be delivered within the owner's allowable cost and schedule. The outcome is an agreed Expected Cost or Target Cost, which is often set below market cost to drive innovation. If the project cannot be validated, the owner may stop with limited sunk cost.
Phase 3: Design (Criteria, Detailed Design, Implementation Documents)
• Target Value Design (TVD): Cost becomes a design criterion rather than an outcome. Designers and builders design to the target cost and estimate continuously as the design develops, rather than designing first and estimating later.
• Set-Based Design: Several options are kept open and narrowed down as information emerges.
• Choosing by Advantages (CBA): A structured decision method that compares alternatives based on the importance of their advantages.
• Building Information Modeling (BIM): Shared digital models support coordination, clash detection and prefabrication.
• Big Room collaboration: Cross-functional clusters, organized by system such as structure or MEP, work together.
Phase 4: Construction
• Last Planner System (LPS): A collaborative planning and control system with these levels:
– Master Schedule (milestones)
– Phase / Pull Planning (working backward from milestones with the trades)
– Lookahead Planning (typically 6 weeks, used to identify and remove constraints)
– Weekly Work Planning (reliable commitments made by the last planners, such as foremen)
– Learning: tracking Percent Plan Complete (PPC) and analyzing the reasons for variance
• Just-in-Time delivery and prefabrication
• 5S workplace organization: Sort, Set in order, Shine, Standardize, Sustain
• Gemba walks, meaning going to the actual place where the work is done
• Plan-Do-Check-Act (PDCA) cycles and A3 problem solving
• Takt planning: Work is paced in a rhythm through defined zones.
Phase 5: Closeout and Incentive Distribution
Final costs are compared to the target cost. Shared savings, or shared losses capped at the profit pool, are distributed according to the agreement. Lessons learned are documented for future projects.
Commercial Model Explained
A typical Lean IPD compensation structure has three components:
1. Reimbursable costs: Each party's actual direct costs and overhead are paid at cost.
2. Profit at risk: Profit is pooled and depends on project performance against the target cost and other goals.
3. Incentive compensation layer: Additional savings below target may be shared among the parties, often including the owner.
If costs exceed the target, the profit pool shrinks. In most agreements, parties do not lose more than their profit, so their costs remain covered. This limits catastrophic risk while still motivating performance.
Lean IPD Compared with Other Delivery Methods
• Design-Bid-Build: Sequential and linear. The contractor joins after design, and price is set by lowest bid. Relationships tend to be adversarial, and the owner holds separate contracts with the designer and the contractor.
• Design-Build: One entity holds single-point responsibility for design and construction. It is more integrated than DBB, but the owner remains outside the team and risk is transferred to the design-builder.
• CMAR: The CM joins during design and provides a Guaranteed Maximum Price (GMP). Collaboration is better than in DBB, but contracts are still separate and risk is transferred to the CM.
• Lean IPD: Uses a multi-party contract with shared risk and reward, joint governance, early involvement of all key parties and lean tools. Risk is shared and managed collectively rather than transferred.
Benefits of Lean IPD
• Reduced cost and schedule overruns
• Higher quality and fewer defects
• Better constructability
• Fewer change orders and claims
• Greater innovation and stakeholder satisfaction
• Transparency and trust
Challenges and Limitations
• Requires a sophisticated, engaged owner
• Cultural shift: teams used to adversarial models may struggle
• Possible legal and insurance complexities, such as liability waivers and unfamiliar insurance products
• Public procurement rules may restrict qualification-based selection or multi-party contracts
• Higher up-front investment in planning and collaboration
• Not always cost-effective for small or simple projects
Key Terms to Memorize
• IFOA: Integrated Form of Agreement
• Target Cost / Expected Cost: Jointly validated cost goal
• Allowable Cost: The maximum the owner is willing or able to spend
• Target Value Design: Designing to a set cost target
• Last Planner System: Collaborative production planning
• PPC: Percent Plan Complete, which measures planning reliability
• Big Room / Obeya: Co-located collaborative workspace
• Pull Planning: Planning backward from a milestone
• Choosing by Advantages: Decision-making method
• Risk/Reward Pool: Shared profit tied to outcomes
• SMT / PMT: Senior and Project Management Teams
Exam Tips: Answering Questions on Lean Integrated Project Delivery
1. Look for collaboration keywords. If a question describes early involvement, a multi-party contract, shared risk and reward, joint decision-making or co-location, the answer is most likely IPD or Lean IPD.
2. Distinguish risk sharing from risk transfer. DB and CMAR transfer risk to a single party. IPD shares risk among the parties. Choose answers that emphasize collective responsibility.
3. Choose the collaborative response. In scenario questions, the best answer usually involves bringing the team together, such as a Big Room session, a joint problem-solving meeting or an A3 analysis. Avoid answers that assign blame, issue claims or escalate to litigation. Liability waivers and consensus governance are the norm in IPD.
4. Know the Last Planner System levels. Expect questions on pull planning, lookahead planning (constraint removal), weekly work plans and PPC. A low PPC indicates unreliable planning. The correct response is root cause analysis and learning, not punishment.
5. Target Value Design means cost drives design. If a question asks how cost is managed during IPD design, the answer is designing to a target cost with continuous estimating, not estimating after design.
6. Selection is qualification-based. In IPD, team members are selected for capability and collaborative fit, not lowest price. Be wary of answers involving competitive low-bid selection for core IPD partners.
7. Recognize the eight wastes. You may be asked to identify the type of waste in a scenario. For example, materials stored on site for weeks is inventory, crews idle while awaiting an inspection is waiting, and rework is a defect.
8. Understand the profit-at-risk mechanism. Costs are typically reimbursed, and profit is at risk. If the project overruns, parties lose profit, not cost recovery. Savings are shared.
9. Know when IPD is appropriate. IPD suits complex, uncertain, innovative projects with an engaged owner willing to collaborate. It is less suitable for simple, well-defined, low-risk projects, or where procurement laws require low-bid selection.
10. Watch for traps. Statements such as the contractor bears all cost overrun risk, the owner is not involved in day-to-day decisions or the designer completes drawings before the contractor is engaged contradict IPD principles.
11. Link lean tools to their purpose.
• Last Planner System: reliable workflow
• Target Value Design: cost control
• BIM: coordination
• Choosing by Advantages: decision-making
• 5S: workplace organization
• A3 / PDCA: problem solving and continuous improvement
• Gemba: observing actual work
12. Apply PMI's mindset. PMI emphasizes stakeholder engagement, value delivery and collaboration. When in doubt, select the answer that maximizes value for the owner, encourages transparency and removes waste through team-based solutions.
Sample Question Walkthrough
Question: During construction on a Lean IPD project, the team notices that weekly Percent Plan Complete has dropped from 85% to 60%. What should the project manager do first?
A. Impose penalties on underperforming trades
B. Analyze the reasons for variance with the last planners and address root causes
C. Issue a formal notice of delay to the trade partners
D. Re-baseline the master schedule
Answer: B. The Last Planner System relies on learning from plan failures by identifying the reasons for non-completion collaboratively and removing constraints. Penalties and formal notices conflict with IPD's collaborative culture, and re-baselining is premature before the root causes are understood.
Summary
Lean IPD combines a multi-party, shared risk and reward contract with lean production methods to deliver maximum value with minimum waste. The core concepts to know are early involvement, joint governance, Target Value Design, the Last Planner System, Big Room collaboration, the eight wastes and the profit-at-risk model. On the exam, favor collaborative, transparent and value-focused answers, and reject those that rely on blame, risk transfer or siloed work.
Lean Integrated Project Delivery (Lean IPD) is one of the most collaborative and transformative contract and delivery approaches in the construction industry. For the PMI Construction Professional (PMI-CP) exam, you need to understand what Lean IPD is, why it exists, how it works in practice and how it differs from traditional delivery methods such as Design-Bid-Build (DBB), Design-Build (DB) and Construction Manager at Risk (CMAR). This guide covers each of these areas and ends with targeted exam tips.
Why Lean Integrated Project Delivery Is Important
Traditional construction delivery models often split responsibility, risk and reward among the owner, designer and builder. That split creates predictable problems:
• Adversarial relationships: Each party protects its own interests, which leads to claims, disputes and litigation.
• Waste: Rework, waiting, over-processing, change orders and poor coordination drive up cost and delay schedules.
• Late involvement of builders: Contractors join after design is complete, so constructability knowledge arrives too late to shape the design.
• Information silos: Design and construction knowledge is not shared in real time.
• Misaligned incentives: A contractor may profit from change orders, while a designer may have no stake in construction efficiency.
Lean IPD addresses these problems by aligning everyone's commercial interests with project success. It matters for several reasons:
• Better value for the owner: Waste is eliminated and spending is focused on what the owner values.
• Fewer disputes: Shared risk and reward, often with liability waivers among the core parties, reduce litigation.
• Innovation: Early involvement of all key players encourages creative problem solving.
• Predictability: Lean planning tools such as the Last Planner System improve reliability of schedule commitments.
• Industry trend: Complex projects such as healthcare facilities, laboratories and campuses increasingly use IPD, so construction professionals must understand it.
What Lean Integrated Project Delivery Is
Lean IPD combines two complementary ideas:
1. Integrated Project Delivery (IPD): A delivery method and contractual arrangement that brings together people, systems, business structures and practices. It uses the talents and insights of all participants to optimize results, increase value to the owner, reduce waste and maximize efficiency through all phases of design, fabrication and construction. The American Institute of Architects (AIA) and AIA California Council have published widely used definitions and guides for IPD.
2. Lean Construction: A production management philosophy adapted from the Toyota Production System and lean manufacturing. Its focus is maximizing value and minimizing waste. The Lean Construction Institute (LCI) has been instrumental in developing lean construction practices.
Lean IPD is therefore the use of an integrated, collaborative contract structure (the commercial and legal framework) combined with lean operating principles and tools (the production and management system).
Key Defining Features of Lean IPD
• Multi-party agreement: The owner, the architect/designer and the general contractor/construction manager, often with key trade partners and consultants, sign a single contract. One example is an Integrated Form of Agreement (IFOA).
• Early involvement of key participants: Builders, trade partners and designers engage from the earliest conceptual stages.
• Shared risk and reward: Profit is pooled and placed at risk. If the project meets cost and quality goals, the team shares the savings. Overruns reduce the shared profit.
• Collaborative decision-making: Decisions are made jointly, often by a Project Management Team (PMT) and a Senior Management Team (SMT).
• Liability waivers: Parties commonly waive claims against each other, except in cases such as willful misconduct, to encourage open communication.
• Jointly developed and validated targets: Cost, schedule and quality goals are set together through a validation phase.
• Open books and transparency: Financial information is shared openly among the parties.
• Co-location: Teams often work in a shared space, sometimes called a Big Room, or Obeya.
Core Lean Principles Applied in Lean IPD
• Value: Defined from the owner's or customer's perspective.
• Value stream: Map all the steps needed to deliver value and remove those that do not add value.
• Flow: Keep work flowing smoothly without interruptions.
• Pull: Work is released only when the downstream process is ready, which avoids overproduction.
• Perfection / continuous improvement: Pursue improvement continuously (Kaizen).
• Respect for people: Empower the people doing the work.
The Eight Wastes (DOWNTIME)
Lean seeks to eliminate eight types of waste:
• Defects (rework)
• Overproduction
• Waiting
• Non-utilized talent
• Transportation
• Inventory
• Motion
• Extra-processing
How Lean IPD Works
Phase 1: Team Assembly and Contracting
The owner selects key participants based on qualifications, collaborative culture and value rather than lowest bid. Selection often involves interviews and workshops. The core team signs a multi-party agreement that sets out:
• Governance structure (SMT, PMT, Project Implementation Teams)
• The risk/reward pool and the profit-at-risk mechanism
• Cost reimbursement terms, usually actual costs paid at cost with profit held separately
• Liability waivers and dispute resolution procedures
• Decision-making rules, typically consensus-based
Phase 2: Validation (Conceptualization)
The team studies the owner's business case, needs and constraints. It confirms whether the project can be delivered within the owner's allowable cost and schedule. The outcome is an agreed Expected Cost or Target Cost, which is often set below market cost to drive innovation. If the project cannot be validated, the owner may stop with limited sunk cost.
Phase 3: Design (Criteria, Detailed Design, Implementation Documents)
• Target Value Design (TVD): Cost becomes a design criterion rather than an outcome. Designers and builders design to the target cost and estimate continuously as the design develops, rather than designing first and estimating later.
• Set-Based Design: Several options are kept open and narrowed down as information emerges.
• Choosing by Advantages (CBA): A structured decision method that compares alternatives based on the importance of their advantages.
• Building Information Modeling (BIM): Shared digital models support coordination, clash detection and prefabrication.
• Big Room collaboration: Cross-functional clusters, organized by system such as structure or MEP, work together.
Phase 4: Construction
• Last Planner System (LPS): A collaborative planning and control system with these levels:
– Master Schedule (milestones)
– Phase / Pull Planning (working backward from milestones with the trades)
– Lookahead Planning (typically 6 weeks, used to identify and remove constraints)
– Weekly Work Planning (reliable commitments made by the last planners, such as foremen)
– Learning: tracking Percent Plan Complete (PPC) and analyzing the reasons for variance
• Just-in-Time delivery and prefabrication
• 5S workplace organization: Sort, Set in order, Shine, Standardize, Sustain
• Gemba walks, meaning going to the actual place where the work is done
• Plan-Do-Check-Act (PDCA) cycles and A3 problem solving
• Takt planning: Work is paced in a rhythm through defined zones.
Phase 5: Closeout and Incentive Distribution
Final costs are compared to the target cost. Shared savings, or shared losses capped at the profit pool, are distributed according to the agreement. Lessons learned are documented for future projects.
Commercial Model Explained
A typical Lean IPD compensation structure has three components:
1. Reimbursable costs: Each party's actual direct costs and overhead are paid at cost.
2. Profit at risk: Profit is pooled and depends on project performance against the target cost and other goals.
3. Incentive compensation layer: Additional savings below target may be shared among the parties, often including the owner.
If costs exceed the target, the profit pool shrinks. In most agreements, parties do not lose more than their profit, so their costs remain covered. This limits catastrophic risk while still motivating performance.
Lean IPD Compared with Other Delivery Methods
• Design-Bid-Build: Sequential and linear. The contractor joins after design, and price is set by lowest bid. Relationships tend to be adversarial, and the owner holds separate contracts with the designer and the contractor.
• Design-Build: One entity holds single-point responsibility for design and construction. It is more integrated than DBB, but the owner remains outside the team and risk is transferred to the design-builder.
• CMAR: The CM joins during design and provides a Guaranteed Maximum Price (GMP). Collaboration is better than in DBB, but contracts are still separate and risk is transferred to the CM.
• Lean IPD: Uses a multi-party contract with shared risk and reward, joint governance, early involvement of all key parties and lean tools. Risk is shared and managed collectively rather than transferred.
Benefits of Lean IPD
• Reduced cost and schedule overruns
• Higher quality and fewer defects
• Better constructability
• Fewer change orders and claims
• Greater innovation and stakeholder satisfaction
• Transparency and trust
Challenges and Limitations
• Requires a sophisticated, engaged owner
• Cultural shift: teams used to adversarial models may struggle
• Possible legal and insurance complexities, such as liability waivers and unfamiliar insurance products
• Public procurement rules may restrict qualification-based selection or multi-party contracts
• Higher up-front investment in planning and collaboration
• Not always cost-effective for small or simple projects
Key Terms to Memorize
• IFOA: Integrated Form of Agreement
• Target Cost / Expected Cost: Jointly validated cost goal
• Allowable Cost: The maximum the owner is willing or able to spend
• Target Value Design: Designing to a set cost target
• Last Planner System: Collaborative production planning
• PPC: Percent Plan Complete, which measures planning reliability
• Big Room / Obeya: Co-located collaborative workspace
• Pull Planning: Planning backward from a milestone
• Choosing by Advantages: Decision-making method
• Risk/Reward Pool: Shared profit tied to outcomes
• SMT / PMT: Senior and Project Management Teams
Exam Tips: Answering Questions on Lean Integrated Project Delivery
1. Look for collaboration keywords. If a question describes early involvement, a multi-party contract, shared risk and reward, joint decision-making or co-location, the answer is most likely IPD or Lean IPD.
2. Distinguish risk sharing from risk transfer. DB and CMAR transfer risk to a single party. IPD shares risk among the parties. Choose answers that emphasize collective responsibility.
3. Choose the collaborative response. In scenario questions, the best answer usually involves bringing the team together, such as a Big Room session, a joint problem-solving meeting or an A3 analysis. Avoid answers that assign blame, issue claims or escalate to litigation. Liability waivers and consensus governance are the norm in IPD.
4. Know the Last Planner System levels. Expect questions on pull planning, lookahead planning (constraint removal), weekly work plans and PPC. A low PPC indicates unreliable planning. The correct response is root cause analysis and learning, not punishment.
5. Target Value Design means cost drives design. If a question asks how cost is managed during IPD design, the answer is designing to a target cost with continuous estimating, not estimating after design.
6. Selection is qualification-based. In IPD, team members are selected for capability and collaborative fit, not lowest price. Be wary of answers involving competitive low-bid selection for core IPD partners.
7. Recognize the eight wastes. You may be asked to identify the type of waste in a scenario. For example, materials stored on site for weeks is inventory, crews idle while awaiting an inspection is waiting, and rework is a defect.
8. Understand the profit-at-risk mechanism. Costs are typically reimbursed, and profit is at risk. If the project overruns, parties lose profit, not cost recovery. Savings are shared.
9. Know when IPD is appropriate. IPD suits complex, uncertain, innovative projects with an engaged owner willing to collaborate. It is less suitable for simple, well-defined, low-risk projects, or where procurement laws require low-bid selection.
10. Watch for traps. Statements such as the contractor bears all cost overrun risk, the owner is not involved in day-to-day decisions or the designer completes drawings before the contractor is engaged contradict IPD principles.
11. Link lean tools to their purpose.
• Last Planner System: reliable workflow
• Target Value Design: cost control
• BIM: coordination
• Choosing by Advantages: decision-making
• 5S: workplace organization
• A3 / PDCA: problem solving and continuous improvement
• Gemba: observing actual work
12. Apply PMI's mindset. PMI emphasizes stakeholder engagement, value delivery and collaboration. When in doubt, select the answer that maximizes value for the owner, encourages transparency and removes waste through team-based solutions.
Sample Question Walkthrough
Question: During construction on a Lean IPD project, the team notices that weekly Percent Plan Complete has dropped from 85% to 60%. What should the project manager do first?
A. Impose penalties on underperforming trades
B. Analyze the reasons for variance with the last planners and address root causes
C. Issue a formal notice of delay to the trade partners
D. Re-baseline the master schedule
Answer: B. The Last Planner System relies on learning from plan failures by identifying the reasons for non-completion collaboratively and removing constraints. Penalties and formal notices conflict with IPD's collaborative culture, and re-baselining is premature before the root causes are understood.
Summary
Lean IPD combines a multi-party, shared risk and reward contract with lean production methods to deliver maximum value with minimum waste. The core concepts to know are early involvement, joint governance, Target Value Design, the Last Planner System, Big Room collaboration, the eight wastes and the profit-at-risk model. On the exam, favor collaborative, transparent and value-focused answers, and reject those that rely on blame, risk transfer or siloed work.
Test mode:
PMI-CP - Lean Integrated Project Delivery Example Questions
Test your knowledge of Lean Integrated Project Delivery
Question 1
During design on a Lean Integrated Project Delivery project under an Integrated Form of Agreement (IFOA), the project management team (PMT) finds that a specialty façade trade's design-assist input will drive much of the remaining target cost. The trade's estimated cost is already inside the validated target cost. The IFOA lets additional parties join the shared risk-and-reward pool through a defined joining mechanism. The trade wants to share in the incentive. Which approach BEST fits the contract?
Question 2
Under a typical Integrated Form of Agreement, how is risk pool members' financial exposure handled once actual project costs exceed the target cost by more than their combined at-risk profit?
Question 3
Under an Integrated Form of Agreement for Lean Integrated Project Delivery, what is the main purpose of the mutual waiver of liability among the core team parties?
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More Lean Integrated Project Delivery questions
15 questions (total)
Other Contract Lifecycle and Delivery Methods concepts
Advising Leadership on Delivery Method SelectionAlliancing and Collaborative ContractingClauses on Changes, Delays and Extensions of TimeCommunication Gaps from Contractual ArrangementsConstruction Management at Risk and Agency CMContract Administration During ExecutionContract Award and MobilizationContract Close-Out and Final AccountDesign-Bid-Build DeliveryDesign-Build and EPC DeliveryGuaranteed Maximum Price and Target CostKey Contract Clauses: Scope, Time and PaymentLiquidated Damages, Indemnity and Liability ClausesLump Sum, Unit Price and Cost-Reimbursable PricingMulti-Party Agreements and Shared Risk and RewardProcurement and Tendering StrategyPublic-Private Partnerships and ConcessionsRisk Apportionment Across Delivery MethodsRoles and Responsibilities by Contract StructureStandard Forms of Construction ContractSubcontracting and Supply Chain ContractsSupporting Leadership Through the Contract LifecycleTermination, Suspension and Force MajeureThe Contract Lifecycle from Discovery to Close-OutThe Integrated Form of Agreement (IFOA)