The IPD method or integrated project delivery method is a construction project delivery method in construction management. In contrast to the traditional project delivery method, this delivery method aims to bring more efficiency to the final output of a construction project.



In this method, all project participants come together to create an inclusive IPD team throughout the design process, fabrication, and construction. As a result, conflicts between the different stakeholders are minimized during the construction process.



Formed by the merger of integrated practice and lean construction, IPD helps increase productivity, avoid time and cost overruns, reduce the wastage of construction materials, and improve the final project outcome.



Table of Content
What is a project delivery method?
What is IPD (Integrated Project Delivery) method?
Who makes up the IPD team?
How does IPD work?
Principles of Integrated Project Delivery
Advantages of Integrated Project Delivery
When should project owners use the integrated project delivery method?
The bottom line


What is a project delivery method?
A project delivery method is an important aspect of project management that enables a project owner to choose the best approach to execute a project. There are four prominent project delivery methods currently in practice in the construction industry - Design-Bid-Build (DBB), Design-Build (DB), Construction Management At-Risk (CMAR), and Integrated Project Delivery (IPD).



These project delivery methods vary in terms of:

risk and responsibility involved
type of legally enforceable contract
data sharing between the parties
level of effective collaboration
Depending upon the project type, the owner can choose the best method that suits the budget and risk & reward distribution parameter.



What is IPD (Integrated Project Delivery) method?
The American Institute of Architects defines IPD as a collaborative alliance of people, systems, business structures, and construction practices. The collaboration harnesses the talents and insights of all the project participants to optimize the project outcome. Using construction technology, the IPD project team increases the value of the project, reduces waste, and maximizes overall construction efficiency.



The integrated project delivery method (IPD) organizes construction projects in such a way that all project stakeholders, from owner to architect and design team to general contractor (GC), are involved in all stages of the construction process.



IPD model creates multi-party agreements between IPD participants, which means that everyone is contractually obligated to fulfill the project. Team members reach an agreement on delivery terms, and all parties sign the same contract. That is, everyone is exposed to the same level of risk, reward, profit, and responsibility.



Who makes up the IPD team?
At the basic level, any IPD project requires a team of a few key stakeholders, including the project owner, designing firm, and builder. In extensive terms, the IPD team consists of the owner, architects, general contractor, construction manager, engineers, fabricators, and various subcontractors. The early involvement of these entities in the IPD process results in better collaboration throughout the construction process.



How does IPD work?
The integrated project delivery strategy encourages more collaboration among construction project stakeholders. While each project's delivery method is unique, there are certain common steps to the IPD.



Hiring a team
A project owner works to quickly hire a complete team that includes a design team, general contractor, engineers, a project management team, and other subcontractors. Most project owners who use an IPD employ a lean construction strategy to save costs and delays. This can include lowering the number of supplies, crews, and waiting periods between construction phases.



IPD contract signing
The next step is signing a contract specifying the project's timing, schedule, obligation, payments, construction risk, and reward terms. Everyone shares equal accountability in an IPD contract. The project enters the design phase only after the parties agree on the contract's terms and conditions.



Design approval
During the design phase, owners, architects, and engineers collaborate with the other stakeholders in a project to ascertain the design is viable for every team. This keeps everyone on the same page from the start and avoids any potential delays. Engineers, general contractors, and other specialists provide valuable inputs to the design team during this phase.



Construction commencement
Once the design is finalized and approved by everyone, the actual construction phase of the project starts. Although the GC and project manager (PM) are directly involved in daily construction, they keep every member of the IPD team in the loop and share everything to progress or delay.



Principles of Integrated Project Delivery
Integrated Project Delivery is founded on trust-based collaboration. Furthermore, the collaboration is well-structured, which allows participants to focus on the overall project results rather than the individual goal.

For a successful IPD project, the participants must embrace the following IPD principles.



Early involvement of key project participants
The IPD method requires the major participants to come together in the early phase. The influx of knowledge and expertise from all essential stakeholders improves decision-making and chalking out a well-informed roadmap for the project.



Early goal definition
Once all the key stakeholders participate early in the project, they also define the project goals. While setting these goals, every stakeholder put forth its insight and feedback, thereby making well-defined project goals that put the project outcomes at the center. These goals are reviewed and agreed upon by every party.



Elaborate planning
The IPD method recognizes everyone’s inputs during the planning phase. This results in elaborate planning, which ultimately increases efficiency during execution. Thus the integrated approach does not reduce the design efforts but greatly improves the end results by streamlining and shortening the expensive construction efforts.



Mutual trust & respect
In an integrated project, the owner, designer, consultants, builder, subcontractors, and suppliers recognize the benefits of collaboration and are dedicated to working together in the project's best interests.



Equal sharing of risks and rewards
In an IPD project, all the participants are equally responsible for the project’s success. Therefore, they are all obliged to share the risks and rewards equally, and this provision is legally enforceable in the single IPD contract. This construction contract is signed before the construction starts, and everyone is aware of the terms and conditions.



Open communication
IPD’s core focus is to enhance the overall team performance. For this to happen, an open and direct communication channel is established. To avoid a blame culture, all the responsibilities are clearly defined. Identification and resolution of problems are prioritized over finding the liable parties.



Use of cutting-edge technology
Modern cutting-edge technologies have a significant role in integrated projects’ success. Technologies such as BIM (Building Information Modelling) are making a huge leap in changing over to open and interoperable data exchanges. Based on transparent data structures, such technology is crucial for IPD’s success. After all, the open nature of this technology enables improved communications among all parties.



Advantages of the IPD
IPD method is designed to incentivize everyone associated with the project since everyone is responsible for its success. Here are some of the advantages of the integrated project delivery method compared to other project delivery methods.



Established clear communication
All the stakeholders in an IPD construction project are accountable for its success or failure. Therefore, before beginning the project, a clear and open communication channel. This eliminated loopholes in the communication between the various parties involved. Moreover, it also promotes frequent cross-team check-ins to avoid lapses arising due to communication gaps.



Quality is rewarded
Since everyone is aware of their roles and responsibilities, they tend to perform better. Adding to that, the method also identifies quality contributions and rewards them. This reward system acts as an encouragement for everyone to give their best for the success of the project and elevates its quality.



Increases productivity
A significant advantage of the IDP project is the early collaboration of different teams. This collaboration paves the way for everyone to provide their input and come up with the best designs and roadmap for the project.



This also waives off the waiting time between different construction phases and enhances productivity as every team is aware of its role right from the beginning. For instance, the GCs can order construction materials and equipment in advance as they take part in the design phase and know the exact requirement.



When should project owners use the integrated project delivery method?
Choosing a construction project delivery method critically impacts the project’s outcomes. Hence, project owners should be careful while selecting the best project delivery method. The integrated project delivery method is best suited for complex projects that require everyone associated with the construction project to be on the same page.



Here are some characteristics of projects to be considered for choosing the IPD method.

Complex projects such as manufacturing plants, healthcare facilities, and infrastructure projects require sophisticated technology and coordination between the stakeholders
Team members need to have trust in each other and are willing to collaborate
Projects that require extensive use of data sharing platforms like BIM or PMIS
The project participants have sufficient manpower to address and resolve issues
The members have already worked together in the past and know each other


The bottom line
Every project delivery method has pros and cons, and the end goal should be considered while selecting the best project delivery method. IPD is an ideal choice for owners who wish to mitigate the risks involved in construction projects while willing to compromise a bit on their profit share.



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