Integrated project delivery (IPD)
Integrated project delivery (IPD) is a project delivery model built around a collaborative alliance of stakeholders who each share risk and reward. It involves the key project stakeholders (the client, architect, contractor, and so on) entering into a single contract that encourages collaboration, optimises results, reduces waste and maximises efficiency and expertise.
The stakeholders collectively determine project goals, budgets, allocation of risk and compensation. The contract typically specifies the separate responsibilities of the stakeholders but enshrines collective responsibility for the project’s successful delivery.
The IPD contract agreement is typically signed by a ‘leadership team’ comprising the client, lead designer/architect and contractor. They are primarily responsible for delivering the project to the budget, schedule and quality specified by the client. Subcontractors and other stakeholders may agree to become ‘risk/reward partners’ (or they can be contracted on conventional sub-contract agreements).
Risk/reward partners agree to be reimbursed on a cost plus overhead and profit basis if the project performs well. The profit is fixed as a lump sum amount at the point at which the contract amount is negotiated and agreed by the stakeholders. The risk/reward partners may lose some or all of their profit if the project falls behind the budget or schedule, and the contract will lay out the terms of this loss. It is usual for the client to agree to pay for the project at cost if all profit is lost, thereby allowing stakeholders to limit their losses purely to the profit they would otherwise have earned on the project.
The benefit of the IPD method is that the contract removes barriers to collaboration and innovation, combining incentives for the project team as a whole rather than having them seek increased profits from the project individually. Instead of individual successes or failures, the overall outcomes determine the collective rewards.
By openly sharing the project goals, risk and rewards, this can result in a more dependable flow of information between the main parties, leading to a sharing of knowledge and technology. In addition, the project can benefit from being able to adopt lean construction principles, overlapping design and construction phases, and so on.
[edit] Related articles on Designing Buildings Wiki
- Collaborative practices.
- Consortium.
- Construction contract.
- Construction manager at-risk.
- Construction management contract.
- Construction project.
- Design and build.
- Integrated project team.
- Integrated supply team.
- Just-in-time manufacturing.
- Joint venture.
- Kanban.
- Lean construction.
- Managing the procurement process.
- Partnership.
- Procurement route.
- Tender process.
Featured articles and news
Retrofit 25 – What's Stopping Us?
Exhibition Opens at The Building Centre.
Types of work to existing buildings
A simple circular economy wiki breakdown with further links.
A threat to the creativity that makes London special.
How can digital twins boost profitability within construction?
The smart construction dashboard, as-built data and site changes forming an accurate digital twin.
Unlocking surplus public defence land and more to speed up the delivery of housing.
The Planning and Infrastructure Bill
An outline of the bill with a mix of reactions on potential impacts from IHBC, CIEEM, CIC, ACE and EIC.
Farnborough College Unveils its Half-house for Sustainable Construction Training.
Spring Statement 2025 with reactions from industry
Confirming previously announced funding, and welfare changes amid adjusted growth forecast.
Scottish Government responds to Grenfell report
As fund for unsafe cladding assessments is launched.
CLC and BSR process map for HRB approvals
One of the initial outputs of their weekly BSR meetings.
Architects Academy at an insulation manufacturing facility
Programme of technical engagement for aspiring designers.
Building Safety Levy technical consultation response
Details of the planned levy now due in 2026.
Great British Energy install solar on school and NHS sites
200 schools and 200 NHS sites to get solar systems, as first project of the newly formed government initiative.
600 million for 60,000 more skilled construction workers
Announced by Treasury ahead of the Spring Statement.
The restoration of the novelist’s birthplace in Eastwood.
Life Critical Fire Safety External Wall System LCFS EWS
Breaking down what is meant by this now often used term.
PAC report on the Remediation of Dangerous Cladding
Recommendations on workforce, transparency, support, insurance, funding, fraud and mismanagement.
New towns, expanded settlements and housing delivery
Modular inquiry asks if new towns and expanded settlements are an effective means of delivering housing.