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
C20 Society; Buildings at Risk List 2025
10 more buildings published with updates on the past decade of buildings featured.
Boiler Upgrade Scheme and certifications consultation
Summary of government consultation, closing 11 June 2025.
Deputy editor of AT, Tim Fraser, discusses the newly formed society with its current chair, Chris Halligan MCIAT.
Barratt Lo-E passivhaus standard homes planned enmasse
With an initial 728 Lo-E homes across two sites and many more planned for the future.
Government urged to uphold Warm Homes commitment
ECA and industry bodies write to Government concerning its 13.2 billion Warm Homes manifesto commitment.
From project managers to rising stars, sustainability pioneers and more.
Places of Worship in Britain and Ireland, 1929-1990. Book review.
The emancipation of women in art.
Call for independent National Grenfell oversight mechanism
MHCLG share findings of Building Safety Inquiry in letter to Secretary of State and Minister for Building Safety.
The Architectural Technology Awards
AT Awards now open for this the sixth decade of CIAT.
50th Golden anniversary ECA Edmundson awards
Deadline for submissions Friday 30 May 2025.
The benefits of precast, off-site foundation systems
Top ten benefits of this notable innovation.
Encouraging individuals to take action saving water at home, work, and in their communities.
Takes a community to support mental health and wellbeing
The why of becoming a Mental Health Instructor explained.
Mental health awareness week 13-18 May
The theme is communities, they can provide a sense of belonging, safety, support in hard times, and a sense purpose.
Mental health support on the rise but workers still struggling
CIOB Understanding Mental Health in the Built Environment 2025 shows.
Design and construction material libraries
Material, sample, product or detail libraries a key component of any architectural design practice.