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Indiana University Health Team Signs IPD Contract on Riley Hospital Addition

INDIANAPOLIS, Ind. — Indiana University Health and its building team on the Riley Hospital for Children Simon Family Tower at IU Health have signed an Integrated Project Delivery contract for the design and construction of the remaining portions of the hospital addition.

IU Health has created an IPD methodology to improve its project-delivery process. The methodology is focused on measurable outcomes that include improving patient outcomes, patient and staff satisfaction, and staff efficiency. The goal is to reduce first-time construction costs as well as lifecycle operating costs.


The project team includes IU Health (client), BSA Life Structures (MEP design), Bright Sheet Metal (mechanical and ductwork subcontracting), Cripe Architects + Engineers (equipment planning), Ermco, Inc. (electrical subcontracting), HKS Architects (architectural design), Maregatti Interiors (interior design), Messer Harmon (construction manager), North Mechanical Contracting, Inc. (plumbing subcontracting) and Ratio Architects, Inc. (architectural design). In addition, Baker & Daniels LLP serves as the project team’s legal counsel.

“This IPD project is unique because 100 percent of the team profit is at risk,” said Donnie Reed, director of operations at Riley at IU Health and the developer of IU Health’s IPD Program. “Conditions of satisfaction are being used to determine the amount of profit the team earns. Because of this, each team member has a stake in the game and is driven to provide the highest value and make the project a success.”

IPD uses early involvement of key project participants, which enables cross-functional teams of designers and contractors to drive collaborative solutions throughout the entire project delivery process.

“We feel the IPD process will produce more reliable and consistent project results over traditional project delivery methods,” Reed said. “The end result should lead to a reduction in design and construction costs compared to historic benchmark costs.”

The first phase of the Riley Simon Family Tower at IU Health opened in January 2011 and the project is scheduled for completion in 2013.

About Indiana University Health
Named among the “Best Hospitals in America” by U.S. News & World Report for 13 consecutive years, Indiana University Health is dedicated to providing a unified standard of preeminent, patient-centered care. A unique partnership with Indiana University School of Medicine – one of the nation’s leading medical schools – gives our highly skilled physicians access to innovative treatments using the latest research and technology. Discover the strength at iuhealth.org.

About Messer Harmon
Messer Harmon LLC is a construction manager and general contractor providing leadership for complex commercial building projects. Messer Harmon is comprised of Messer Construction Co. and Harmon Construction, Inc. (HCI). Messer, which was founded in 1932, focuses on healthcare, life sciences and higher-education building. Harmon, founded in 1955, provides general construction services. For more information, visit www.messer.com or www.harmongroup.com.

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Posted July 12, 2011

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