A team-based delivery method where owner, architect, and contractors share risks, rewards, and decisions from the very start.
Integrated Project Delivery (IPD) is a collaborative project delivery method that contractually aligns the interests of the owner, architect, and key contractors through a multi-party agreement with shared risk and reward tied to project outcomes. IPD maximizes collaboration using BIM, colocation, and lean construction principles to achieve superior performance in cost, schedule, and quality. All key parties are involved from early design.
IPD fundamentally changes how estimators work because pricing happens collaboratively and openly rather than through sealed competitive bids, with target costs set early and trade contractors helping refine scope during design. Because profit is pooled and tied to hitting shared cost and schedule targets, estimating accuracy directly affects every party's payout, raising the stakes on transparent, validated numbers over protective contingency padding.
On a $40M hospital, the GC, architect, and mechanical and electrical subs sign a multi-party IPD agreement and place their fees in a shared pool, so when the team value-engineers the chilled-water system below the target cost, the savings are split among all signatories.
Get AI-powered bid alerts, automated form filling, and proposal drafting.
Start Free Trial