Integrated project delivery (IPD)
Also: Multi-party agreement, Alliance contracting
Quick definition: A collaborative delivery approach in which the owner, designers and builder work as one team, usually under a single multi-party agreement, sharing risk and reward according to project outcomes.
Explanation
Beginner explanation
In IPD the owner, architect, engineers and contractor sign one contract together and win or lose as a group. That gives everyone a reason to solve problems together instead of protecting their own scope.
Technical explanation
The AIA and AIA California Council guide (2007) describes IPD as an approach that integrates people, systems, business structures and practices, and lists principles including mutual respect and trust, mutual benefit and reward, collaborative decision making, early involvement of key participants, early goal definition, intensified planning, open communication and appropriate technology. Contract structures typically include a target cost, a shared profit pool, limited liability waivers among the parties and joint governance. In Canada, CCDC 30 is the standard IPD contract (2018, reissued 2025). BIM, co-location ("big room") and Last Planner are common enabling practices.
Practical example
A health authority procures a new outpatient clinic under CCDC 30 with the architect, engineers, construction manager and key mechanical and electrical trades as parties. Savings below the target cost are shared among all of them.
Why it matters
IPD can remove the adversarial incentives of traditional contracts, but it requires experienced partners, open-book accounting and strong governance.
Standards and references
- Integrated Project Delivery: A Guide. The American Institute of Architects and AIA California Council, 2007.Widely accepted professional interpretation
Supports: IPD description and nine principles; AIA National and AIA California Council, version 1, 2007 - CCDC contract documents (catalogue). Canadian Construction Documents Committee (CCDC).Widely accepted professional interpretation
Supports: CCDC 30 Integrated Project Delivery Contract (2018 and 2025 editions) · Status: Catalogue lists CCDC 2 (2020), 3 (2016), 4 (2023), 5A/5B (2025), 11 (2019), 14/15 (2026), 17 (2025), 18 (2023), 30 (2025), 31 (2020), 32/33 (2026).
VDC Stack.io writes its own explanations and does not reproduce copyrighted standards text. Consult the cited standard for normative wording.
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VDC Stack.io. (2026). Integrated project delivery (IPD). In VDC Stack.io Knowledge Dictionary. Retrieved from https://vdcstack.io/dictionary/integrated-project-delivery/