Construction companies are constantly searching for ways to improve project efficiencies and avoid cost and schedule overruns. A new method has been creeping into the narrative and demonstrating plausible success: integrated project delivery (IPD). Construction Dive staffer Emily Peiffer explores the new topic and shares insights from an International Builders Show session. Peiffer writes,
An IPD arrangement involves the owner, general contractor, architect, and possibly other major subcontractors and suppliers entering into a mutual contract to collectively determine project goals, costs, risk sharing, compensation and general responsibilities, according to CPA and business advisory firm Padgett Stratemann.
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 Thompson, 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