In this episode, Riccardo Cosentino sits down with fellow Oxford alumni, Rachael Patel, to discuss integrated project delivery (IPD). With a background as a registered nurse, Rachael brings her unique expertise to her current role in the health sector specializing in strategic planning and execution of health services, research and infrastructure projects in North America. The pair discuss the impediments and challenges of adoption of the IPD model, specifically how it relates to private and public healthcare major infrastructure projects and the procurement process.

“You add an integrated project delivery, where the idea is risk sharing and then you use that same methodology to calculate value for money, IPD will never win because IPDs base core base is sharing risk. It’s two issues in our procurement, it’s the idea of what value for money is and how we calculate money.”– Rachael Patel

Key Takeaways: 

• The origin of IPD and how its optimizing project design and construction 
• Why value for money is problematic for IPD
• Finding a better way to allocate risk, relational over transactional  
• The policy associated in procurement and how it is hindering the marketplace shift to alternative models

Links Mentioned: 

• A critical perspective on Integrated Project Delivery (IPD) applied in a Norwegian public hospital project
• Benefits and challenges to applying IPD: experiences from a Norwegian mega-project

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The conversation doesn’t stop here—connect and converse with our LinkedIn community: 

• Navigating Major Programmes Podcast
• Riccardo Cosentino
• Rachael Patel

Transcript:

Riccardo Cosentino  00:00

If you're listening to Navigating Major Programmes, the podcast that aims to elevate the conversations happening in the infrastructure industry and inspire you to have a more efficient approach within it. I'm your host Riccardo Cosentino. I bring over 20 years of major programme management experience. Most recently, I graduated from Oxford Universities they business group, which shook my belief when it comes to navigating major problems. Now it's time to shake yours. Join me in each episode as a press the industry experts about the complexity of major program management, emerging digital trends and the critical leadership required to approach these multibillion dollar projects. Let's see where the conversation takes us.  Racheal Patel is an Associate Vice President and senior project manager at a global architecture and engineering firm. She's a registered nurse, and also the Master of Science in major program management from the University of Oxford, and a Master of nursing from the University of Toronto. Racheal is a skilled leader in the health sector specializing in strategic planning and execution of health services, research and infrastructure projects in Canada and the United States. Her expertise includes guiding organization for the initial strategic planning phase, through detailed planning and design to the implementation of transformative and innovative capital projects. Hello, everyone.  Welcome to another episode of navigating major programs. I'm here today with Richard Patel. I met Racheal at Oxford University when we were completing together our mastering major program management. And I asked Racheal today to join us on the podcast to discuss her dissertation, which is quite interesting and very relevant to the topics that we've been discussing on navigating major programs. How're you doing, Racheal?

Racheal Patel  02:00

I'm good Ricardo. And thanks for having me here. I'm excited to have a platform to talk about my dissertation and you providing that platform to talk about major programs. So thank you very much for having me.  

Riccardo Cosentino  02:14

It's my pleasure. So maybe since I've tucked up your dissertation a little bit, well, what was the topic of your dissertation?  Yeah, so my topic was actually looking at the challenges of adopting integrated project delivery in health infrastructure here specifically in Ontario. And I kind of was interested in this because here in Ontario, as you know, we've been in a transactional type of model for some time, and I wanted to see could we push the boundary and look at other project delivery models that would achieve the the goals of infrastructure for healthcare in a different manner? Interesting. And you talk about transactional contracting, and you talk about IPD, can you maybe explain for some of our listeners the difference or what was in the context of your, your research, what those terms mean?

Racheal Patel  03:20

So when we when I say transactional, it's more of a contractual obligation. So it's what we see today, like a p3, you know, alternative delivery model where you have a relationship based on some terms and conditions. Relational, it's a similar idea in that more, they're not similar, but it's a similar idea, in that it's a relationship based model where you're working together as a team, there's no one, you know, a buyer and a seller you are, I guess, in a way, a group or collaborative, all working towards the same goal and you have incentives and so forth, in a nutshell, that it's different. We in transactional, as you know, you have contractual requirements, you're obligated to meet certain things, whereas in relational, it's really about the relationships and the collaboration and the people and people organizations that come together to deliver. So it's, it's harder, sorry, relational is more softer compared to transactional in my non legal way of trying to explain.

Riccardo Cosentino  04:41

So another way of putting that is an is one that of an example that I use in the past is that transactional contracting or is more of a zero sum game where there is a party, a winning party in the losing party. We're in relational contracting. We're all on the same table, we all have one common goal, one common incentive. And all of the incentives are aligned providing a more collaborative environment.  

Racheal Patel  05:11

Yeah, yeah, that's probably more eloquent and articulate in the way I'm trying to explain it. That yeah, like, with relational, and specifically with IPD, you have everyone coming together with a common goal objective, and you're all measured on that same group of objectives or metrics metrics. And I would say transactional is a very much risk transfer moving risk to one party to hold that and your obligation to meet those risks, that transfer of that risk. But yes, I would say what you what you said is more eloquent than how I'm trying to explain it.

Riccardo Cosentino  05:54

No, yours is more is more detailed and more accurate by this very broad strokes. But maybe maybe for again, for our listeners, I know, in your research, you know, part of your literature review you you actually had a bit of a dive into IPD, which means integrated project de...