Integrated Project Delivery - The Nuts and Bolts

Date: 11/8/2023

Integrated Project Delivery (IPD) is a construction project delivery method that emphasizes early collaboration and open communication among all project stakeholders, including the owner, designer, general contractor, and subcontractors. IPD projects are typically characterized by the following key characteristics:

• Multi-party contract: All project stakeholders are typically parties to a single contract, intended to create a more aligned and collaborative team environment.
• Shared risk and reward: Project stakeholders share in both the risks and rewards of the project, which incentivizes everyone to work together to achieve the best possible outcome.
• Early collaboration: IPD projects begin with a period of early collaboration, during which the project team works together to develop a shared vision for the project and to identify and mitigate potential risks.
• Open communication: IPD teams communicate openly and honestly with each other throughout the project lifecycle, which helps to avoid misunderstandings and conflicts.
• Lean construction principles: IPD teams often employ Lean construction principles to improve efficiency and reduce waste.
• Alignment of goals: IPD projects are aligned on the owner's goals for the project, from the beginning.
• Transparency: IPD teams are transparent with each other about their costs, schedules, and risks.
• Continuous improvement: IPD teams are constantly looking for ways to improve the project process and outcome.
• Focus on value: IPD teams are focused on delivering the best possible value to the owner.

IPD has been shown to have a number of benefits for construction projects, including:

• Improved project performance: IPD projects are more likely to be completed on time, on budget, and to meet or exceed the owner's expectations.
• Reduced conflict: IPD teams are less likely to experience conflict and disputes, which can save time and money.
• Increased innovation: IPD encourages teams to think creatively and to come up with new and better solutions to project challenges.
• Improved relationships: IPD fosters stronger relationships between project stakeholders, which can lead to long-term benefits for all involved.

IPD is a complex project delivery method, but it can be very effective when implemented correctly. It is important to choose the right team members for an IPD project and to create a strong collaborative culture.

If you want to take a deeper dive into IPD, we recommend the following:

• Integrated Project Delivery for Public and Private Owners - A Joint Effort of the National Association of State Facilities Administrators (NASFA); Construction Owners Association of America (COAA); APPA: The Association of Higher Education Facilities Officers; Associated General Contractors of America (AGC); and American Institute of Architects (AIA)
• Transforming Project Delivery: Integrated Project Delivery, Howard Ashcraft - Oxford Review of Economic Policy, Volume 38, Issue 2, Summer 2022, Pages 369–384