Integrated Project Delivery, or IPD, is a delivery method that is not widely utilized in the A/E/C industry currently. We anticipate it to gain popularity over the next few years based on efficiencies that can be realized.
IPD is a project delivery method where the primary involved parties—the Owner, Designer and Contractor(s)—are fully integrated into one legal entity. Here are three key benefits of IPD for an Owner to consider when choosing a delivery method for a project.
1. Increased collaboration
Because all involved parties are one legal entity, whether by partnership agreements or multi-party contracts, there is increased project transparency and integrated financial interests. The team can freely share documents without legal or proprietary risk—increasing overall collaboration within the team. Due to the high level of teamwork, often early on in the project, BIM and IPD typically go hand in hand.
2. Shared risk and liability
The IPD core team usually has a multi-party contract, forms a join venture or forms a project-specific LLC. As a result, the risk, responsibility and liability for project delivery are spread equally among the primary parties. However, because there is shared risk, this means there needs to be a high level of trust between parties as well as a high level of Owner involvement throughout the IPD process.
3. Aligned goals
Each party in a typical construction project has its own goals and objectives. For example, the Architect may want the most creative and innovative design. The Owner wants the best outcome for the cost and to be on schedule. The Contractor wants be able to deliver the proposed design within the budget and schedule parameters. With IPD, the goals of the project are aligned because all parties are working together from the beginning—allowing the team to focus on the complete project outcome rather than individual success.
IPD is common for large, complex projects such as healthcare facilities and hospitals that require a high level of flexibility and certainty. While it is not commonplace in the A/E/C industry yet, it is an up-and-coming method that can increase quality while lowering overall cost. It is the ultimate team approach to a project that benefits all parties involved.
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