UBC Faculty Research and Publications

Understanding the Disruptiveness of Integrated Project Delivery (IPD) in the AEC Industry Zadeh, Puyan A.; Thibault, Juliette Mollard; Staub-French, Sheryl; Bhonde, Devarsh

Abstract

The Architecture, Engineering, and Construction (AEC) industry is plagued by persistent challenges such as low productivity, cost overruns, and frequent project delays. Integrated Project Delivery (IPD) has emerged as a potential solution, offering collaborative approaches to improve project outcomes. This study proposes a two-tiered methodology for evaluating the disruptiveness of innovations in the AEC industry, with a particular focus on IPD as a disruptive innovation. In the first tier, a multidimensional framework is developed to systematically assess the disruptiveness of innovations in the AEC sector. This framework, informed by a thorough literature review and disruptive innovation theory, includes dimensions such as business models, processes, and anticipated outcomes. The second tier applies the framework by analyzing the disruptiveness of IPD. The assessment draws on data from three comprehensive studies, including ethnographic research, interviews, and focus groups, which examine IPD’s impact on different stakeholder groups such as clients, consultants, and contractors. Findings reveal that IPD has the potential to significantly disrupt traditional business models, processes, and project outcomes, particularly at the project level. Notable disruptive characteristics include shifts in collaboration dynamics, redefined project financing models, and improved efficiency. However, several barriers hinder IPD adoption, including resistance to change and misalignment with conventional contractual structures. Expert interviews support these results, indicating that IPD represents a fundamental shift in the AEC industry. This research contributes to the existing body of knowledge by offering a structured framework for assessing the disruptiveness of AEC innovations and demonstrating its practical application. In this way, AEC organizations, projects, and practitioners can better strategize for the adoption of any new disruptive innovation and thus pursue a strategic advantage in the highly competitive industry market.

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