Speller Metcalfe has been named as the main contractor for a new £16m project to revamp Derby Silk Mill using an integrated project insurance (IPI) procurement model.
The Derby Silk Mill building is widely considered as the place where worldwide factory working originated from and forms part of the Unesco Derwent Valley Mills World Heritage Site.
The building will be redeveloped into an inspirational new museum, telling the story of Derby and its people’s industrial heritage and their lasting and continuing legacy as innovators in industry.
Midlands-based Speller Metcalfe will start work on the project in 2018.
IPI is a non-confrontational, collaborative approach and one of the preferred procurement methods set out in the government’s 2011-2015 Construction Strategy.
All key packages will be appointed from the outset to work out the best way to achieve and develop the project’s cost plan, which is insured by IPI.
The model aims to eliminate the blame/claim culture within a project by creating a shared risk, alliance contract between all members of the project team.
Des O’Neill, group managing director for Speller Metcalfe, said: “We are very excited to be working with Derby Museums on the redevelopment of Derby Silk Mill.
“Having been main contractor on the UK’s first IPI project at Dudley College we have seen first-hand the benefits of the model and appreciate how rewarding and beneficial it is to work with a client that is committed to engaging and working collaboratively with their project team from inception to completion.”
The museum is set to open in 2020, in line with the 300-year celebration of the Silk Mill.
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Does anyone know why this approach was called IPI?
The fundamental reason it delivers better project performance is the use of a project alliance contract to remove barriers to collaboration. The insurance product is a great idea, especially to overcome some of the common concerns from people who have not worked this way before.
In my experience once you have worked with a good project alliance, you wouldn’t want to use any other approach. Insurance is actually not a prerequisite – a project alliance can work very well at delivering better project outcomes without it. But I do understand why a one-off client, especially in the public sector, might be willing to pay the premium for someone else to cover the risk of going over budget, and make it feel more certain.
I hope Derby Museums, Speller Metcalfe, and the rest of the supply team have a great project. Are any other companies involved in the alliance?