New form of procurement used for Derby Silk Mill project

Speller Metcalfe has been contracted by Derby Museums to redevelop the facilities at Derby Silk Mill, a UNESCO World Heritage site, in order to open the whole museum to the public for the first time in 50 years.

The scheme is the second in the UK to be delivered using the innovative Integrated Project Insurance procurement approach, following Speller Metcalfe’s Dudley College, Advance II. As an IPI scheme, Speller Metcalfe form part of a much larger project team and alliance board, and as a collective, this collaborative board make decisions to enhance the design of the redevelopment in-line with all party’s requirements.

Speller Metcalfe is the only contractor in the UK to have delivered IPI, working as the main contractor on three completed and live projects including Advance II and the Institute of Transformational Technologies (IoTT) for Dudley College and Derby Silk Mill.

What is Integrated Project Insurance (IPI)?

Integrated Project Insurance or ‘IPI’ is an innovative, next-generation model of procurement capable of being applied to a vast range of projects in the public and private sectors, trialled and promoted by the Government Construction Strategies 2011 and 2016 – 2020, and has, “the potential to be transformational for the industry,” (CE Report 2018).

This fresh approach unlocks the potential of integrated collaborative working by aligning the interests of all team members with the needs of the client, Derby Museums, to assure all solutions are achievable and insure project outcomes rather than individual liabilities from the outset.

Key benefits of using the IPI model

  • IPI supports collaborative working and the use of truly integrated teams, helping to drive out waste, deliver innovation and provide better, more cost-effective solutions to the needs of clients;
  • The formation of an ‘Alliance of Equals’ for the Derby Silk Mill projects’ design and delivery team, irrespective of size or roles, has encouraged collaborative working and a ‘no blame culture’ so that solutions were made in the interest of the project not individual companies;
  • Derby Museums and key partners are bound together through an alliance contract and gain/ pain share incentives
  • The early involvement of suppliers has helped inform design decisions;

“It’s about creating a ‘no blame’ environment, taking risks and being experimental. The entire supply chain is involved from the beginning. You all agree on the principles that are best for the project.”

Hannah Fox, Director of Projects and Programmes for Derby Museums.

Footer Reference

Monitor report. Speller Metcalfe Ltd. Derbyshire. December 2019.

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