THE INTEGRATED PROJECT DELIVERY METHOD

Integrated Project Delivery (IPD) is a project delivery approach that integrates people, systems, business
structures and practices into a process that collaboratively harnesses the talents and insights of all
participants to optimize project results, increase value to the owner, reduce waste, and maximize
efficiency through all phases of design, fabrication, and construction

The Integrated Project Delivery (IPD) method is similar to Design-Build. However, the major difference in
this method is the risk (Figure 2.10). In DBB and CMAR, the owner “owned” the risk. In DB, the design
builder owned the risk. In IPD, the risk is shared between the owner, architect, and contractor, but so is
the reward. The contract becomes a multiparty agreement

DIFFERENCE OF INTEGRATED PROJECT DELIVERY AND DESIGN BUILD

IPD

• The stakeholders of the owner, architect, and general contractor all come together into one
agreement.

• Sharing the risk and reward of a project through target project goals, compensation may
increase or decrease depending on results.

DB

• The owner develops a single contract with the design build entity.

• Reduce risks to the owner of the property by assigning all responsibilities to one single entity.

ADVANTAGES OF INTEGRATED PROJECT DELIVERY METHOD

• This method incentivizes collaboration.

• The decision of the contractor doesn’t have to be based solely on the price.

• It can contain quantitative and qualitative decisions

• It has the potential to be the fastest delivery method from design to construction.

• The contractor can manage the cost by running estimates throughout the entire design process.

• This method incentivizes innovation.

• This method has the potential for zero change orders.

BENEFITS OF INTEGRATED PROJECT DELIVERY METHOD

• Better communication - In projects that use traditional delivery methods, the parties involved
don’t always get a chance to communicate directly with each other, and that can lead to
problems and inefficiencies.

• Increased transparency -Because everyone’s working toward one goal and sharing information,
the problem of conflicting agendas and hidden costs goes away.

• Fewer change orders and RFIs - With IPD, everyone involved in the project comes together at an
early stage and shares information and input.

• More profits for better outcomes - Typically, with an IPD contract, if the project is brought in
under budget, the contract signatories share in the savings, increasing their profit.

• Greater innovation - Up-front collaboration among multiple teams and the opportunity for the
project to leverage the core strengths of any team as unexpected setbacks are encountered
often leads to more innovative, effective ways of doing the work.

• Lower project costs - Change orders and RFIs drive up the cost of projects and slow schedules.
With an IPD approach, costs may be significantly reduced.

• Less wasted time and materials - With everyone’s profit riding on the overall success of the
project, all parties have incentive to find the most efficient means of getting the job done.

CHALLENGES OF INTEGRATED PROJECT DELIVERY METHOD

• This method is not traditional and requires a trust-based and collaborative team to succeed.

• The contractor and architect typically spend more time competing to win the contract in this
delivery, which costs more money.

• This method is not accepted by any public agencies yet.

REFERENCES:

https://perilloconstruction.com/design-build-vs-design-bid-build-differences/

https://info.aia.org/siteobjects/files/ipd_guide_2007.pdf

file:///C:/Users/Hanz/Downloads/Brad_Hardin_Dave_McCool_BIM_and_Construction_MaBookZZ.org.p
df

https://esub.com/construction-project-management-software-blog/integrated-labor-delivery-vs-
integrated-project-delivery/

https://www.unitedrentals.com/project-uptime/expertise/7-benefits-integrated-project-delivery-ipd-
construction-projects?
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