In the last five years, there has been considerable conversation about Integrated Project Delivery (IPD) and its value to the building and construction industry.
The basic principles of IPD imply tight communication and an alignment of interests between the owner, architect, engineer and general contractor as well as the many other specialists and subcontractors that such as the structural engineer, sitework and excavation team, mechanical, electrical, and plumbing trades, etc. The AIA/AIA-CC Integrated Project Delivery Guide defines IPD as:
"…a project delivery method distinguished by a contractual agreement between a minimum of the owner, design professional, and builder where risk and reward are shared and stakeholder success is dependent on project success."
It’s an all-for-one approach that can facilitate greater efficiency—including reduced design and construction costs, fewer change orders, tighter schedules, better quality and lower risk to the entire project team and the owner.
In the recently released CMAA document "An Owner’s Guide to Project Delivery Methods", the authors note that one of the advantages of an IPD approach is that "the entire team’s interests are aligned with the project goals making the chance of success, once underway, extremely high."
However, reaching a point where all parties are in alignment throughout the course of a project is challenging. The CMAA report further noted, "Actual agreement on the criteria and the final IPD contract can be very difficult and can take an inordinate amount of time and effort, for which the owner may be paying, if not in money then in time."
In recent years, both AIA and ConsensusDOCS have introduced standardized IPD contract documents. The AIA offers the AIA 195 and 295 agreements, which outlines transitional IPD terms for the owner/ architect and owner/contractor, respectively. The AIA C191 and C195 multi-party agreements establish a framework for the owner, architect, contractor and other project participants to find common ground. As well, the ConsensusDOCS 300 from ConsensusDOCS brings the owner, architect and contractor together with the Principles of Lean.
However, most owners and project teams develop custom IPD agreements because of the need to carefully outline risks and rewards– and in many cases, these modified contract documents do not represent the full adoption of pure IPD commitments. Instead, the IPD methodology is most commonly used as a transitional scope to blend conventional contracts with more collaborative approaches, as compared to a true IPD multi-party arrangement with associated risks and rewards.
While many of its "successes" to date have been documented in the healthcare industry, IPD is a principle and methodology that can be applied across all markets. It has been particularly successful in the construction of new and renovation of old office and educational buildings.