Construction companies are constantly searching for ways to improve project efficiencies and avoid cost and schedule overruns. Industry experts have offered countless methods to accomplish these goals, from technological advancements to new building materials to better work environments.
However, one aspect of the building process has recently emerged as one of the most important factors affecting a job’s success: project delivery method. Although the delivery method debate has typically been dominated by design-bid-build and design-build, there’s a new method creeping into the narrative and demonstrating successful results: Integrated Project Delivery (IPD).
What is integrated project delivery?
An IPD arrangement involves the owner, general contractor, architect, and major subcontractors and suppliers entering into a mutual contract to collectively determine project goals, costs, risk sharing, compensation and general responsibilities.
Those stakeholders in the IPD can form a limited liability company (LLC) or use an American Institute of Architects’ IPD agreement to spell out all of the details of the project, and they typically waive liability claims against each other.
IPD agreements aim to create more collaborative projects where all stakeholders can offer their opinions, especially at the early stages of the project. If done successfully, according to experts, they can:
- Allow for faster construction timetables
- Keep projects within budget
- Reduce the number of change orders
- Allow companies to secure their preferred trade partner early on in the process
Best Integrated Project Delivery.
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