Delivering more for less under the IPI model

This project develops and trials a new way working on the construction of an £8m Royal Marines’ training centre in Lympstone, Dorset, for the MOD to be completed in 2015. Normally, design consultants and construction specialists in the design and construction team will each insure against their individual liabilities on a construction project. This is wasteful, not only in terms of insurance costs but because it sets boundaries between different disciplines and hinders how well the team can work together. The new approach, called ‘Integrated Project Insurance’ effectively provides insurance for the whole team working as a ‘virtual company’. Not only is this a more cost-effective approach, it frees the team from being concerned about their own liability and encourages them to concentrate on improving the project overall. Current estimates suggest that this new approach could save between 15% and 20% of construction costs, and deliver major improvements to new buildngs also.