Integrated Project Delivery contracts are a relatively new entry into the U.S. marketplace and very few projects have been carried out using these contracts; however, the concepts of IPD have been around for many years. Pure IPD, in its contractual sense, requires a multi-party agreement among the prime players in the design and construction process – at least the owner, the designer and the builder – but this agreement can include many of the important subconsultants and subcontractors as well. The intention of the multi-party contract – or the closely integrated family of contracts – is a team-based approach that, according to Integrated Project Delivery, A Working Definition, Version 2, AIA California Council and McGraw Hill Construction, 6/13/2007: … integrates people, systems, business structures and practices into a process that collaboratively harnesses the talents and insights of all participants to reduce waste and optimize efficiency through all phases of design, fabrication and construction. IPD is an attempt to properly reflect, in contract, the working relationships and efforts that are possible when a team is working in an integrated fashion to complete a design and construction project.
The IPD team is formed at the project design stage and lives with the project to its vary end. The concept is that the breath of knowledge of the team helps to facilitate every project step and will lessen the problems and traditional hassles always in the tradition model.