By Lynn Pearcey, MBA, Copywriter, AIA Contract Documents
December 7, 2022
IPD contracts were created to solve the efficiency challenges the industry was facing during the late 1960s and early 1970s. The principle behind them is simple: rather than working in disparate silos as they had done historically, participants collaborate. This leads to better results for all parties.
IPD contracts come with risks, hence the need for collaboration. There’s no room for finger-pointing or buck-passing with an IPD because, under this agreement, everyone either wins or everyone loses.
Five Things you Should Know …
IPDs are unique contracts. Before entering one, there are five things you should know:
IPDs are great tools that drive efficiency, productivity, and foster relationships. While they can be complicated, when used properly, the benefits of an IPD far outweigh the risks. They’re not for every project so it’s important to keep scope and scale in mind and use an IPD only where it fits. Understanding how and where to apply will help drive your success and add another instrument to your contract and document arsenal.
AIA Contract Documents Integrated Project Delivery (IPD) Family of Documents
AIA Contract Documents has provided this article for general informational purposes only. The information provided is not legal opinion or legal advice and does not create an attorney-client relationship of any kind. This article is also not intended to provide guidance as to how project parties should interpret their specific contracts or resolve contract disputes, as those decisions will need to be made in consultation with legal counsel, insurance counsel, and other professionals, and based upon a multitude of factors.