What is Integrated Project Delivery?

Integrated Project Delivery (IPD) is a construction delivery method that has been gaining popularity in recent years. It is a collaborative approach that brings together the owner, designer, and contractor early in the design process to work together as a team. The goal of IPD is to align the interests of all parties involved in the construction process and create a more efficient and cost-effective project. In this article, we will explore what IPD means for construction owners like municipalities and government agencies.

‍

Benefits of IPD for Owners

IPD offers several benefits for construction owners.

1. Early involvement of all key stakeholders

One of the most significant benefits is that IPD allows for early involvement of all key stakeholders in the project. This means that the owner, designer, and contractor are all involved from the beginning of the design process. This early involvement allows for better communication and collaboration, which ultimately leads to better project outcomes.

2. Increased cost predictability

Another benefit of IPD for owners is increased cost predictability. With IPD, the owner and the contractor work together to develop a Guaranteed Maximum Price (GMP). The GMP is a contract between the owner and contractor that sets a price for the project. This price is determined early in the design process and is based on a detailed understanding of the project scope and requirements. By developing a GMP early in the project, the owner can be confident that the project will be delivered within budget.

3. Increased schedule predictability

IPD also offers owners increased schedule predictability. With IPD, the owner, designer, and contractor work together to develop a detailed project schedule. This schedule is developed early in the design process and takes into account all aspects of the project, including design, procurement, and construction. By developing a detailed project schedule early in the project, the owner can be confident that the project will be delivered on time.

In Summary

To summarize, 3 main benefits a construction owner can realize while using IPD are:

1. Early collaboration and involvement from key stakeholders
2. Increased cost predictability through the development of a Guaranteed Maximum Price (GMP)
3. Increased schedule predictability given the open lines of communication

‍

Challenges of IPD for Owners

While there are many benefits to IPD for owners, there are also some challenges.

1. The need for early involvement

One of the biggest challenges is the need for early involvement in the project. This means that the owner must be prepared to commit time and resources to the project early in the design process. This can be challenging for some owners, particularly those who are not experienced in this kind of construction process.

2. The need for a high level of collaboration and communication

Another challenge of IPD for owners is the need for a high level of collaboration and communication. IPD requires close collaboration between the owner, designer, and contractor throughout the project. This level of collaboration can be challenging for some owners, particularly those who have not worked in more collaborative environments previously.

In Summary

In summary, while there are many benefits of using IPD for construction owners, 2 identified challenges are:

1. The commitment of time and resources early in the design process to ensure the project starts correctly
2. The need for a high level of collaboration, communication, and transparency, something not everyone is experienced or comfortable with

‍

Conclusion

Overall, IPD offers many benefits for construction owners like municipalities and similar government agencies. By involving all key stakeholders early in the design process, IPD allows for better communication and collaboration, leading to a more efficient and cost-effective project. While there are some challenges to implementing IPD, the benefits make it a compelling option for owners looking to deliver construction projects successfully.

The solution?

Worried about your teams ability to commit the time and resources while participating in a more collaborative environment?

The Aidi solution was built from the ground up to support the needs of construction owners. We give your team a platform they can rely on to perform their duties effectively and transparently, while also improving collaboration and communication channels.

Interested? Let’s chat!