Abstract
The mining industry faces growing challenges in the next decade with the need to secure much needed critical minerals, while demonstrating sustainable and responsible mining and extraction methods, stricter regulations, and increasing operational costs. Recently, the mining industry has been plagued by several large projects that have incurred significant cost and schedule overruns. To tackle these challenges and improve project outcomes, mining companies should consider exploring how adjacent markets are applying innovative project delivery methodologies such as Integrated Project Delivery (IPD). The presentation will show how IPD projects have been used on major infrastructure, industrial and nuclear projects and how these learnings can be applied to mining projects.
What is Integrated Project Delivery (IPD)?
IPD is a collaborative project delivery approach that brings together key stakeholders—owners, engineers, contractors/builders, and suppliers—from the outset of a project. This method promotes transparency, shared decision-making, the ability to thoughtfully engage subject matters experts in all phases of the project, mutual accountability, and the use of shared tools and common language throughout the life of the project. By aligning the goals of all parties, IPD fosters a more efficient and cooperative working environment where risks and rewards are shared based on project performance.
Key Principles of IPD
- Early Involvement: In IPD, all stakeholders are involved from the early stages of a project’s development during what is called the “Validation Phase”. This facilitates better planning, early identification of risks, and the ability to address potential issues before they escalate.
- Shared Risk and Reward: IPD distributes both risks and rewards across the entire project team. This collaborative structure encourages all parties to work toward common goals, leading to greater accountability and improved project outcomes.
- Collaborative Decision-Making: Diverse expertise is tapped through collaborative decision-making in IPD. This results in innovative solutions to challenges and more effective problem-solving throughout the project lifecycle.
- Open Communication: A hallmark of IPD is open and transparent communication between all team members across each organization within the IPD, which helps resolve challenges quickly and strengthens team cohesion.
The Canadian infrastructure sector and the US Industrial Sector are increasingly using the IPD delivery model which is particularly well-suited for complex projects in which a high degree of trust and transparency is required between the project Owner and project partners.