Which statement best describes IPD in relation to traditional contracts?

• A. It is simply a modification of standard agreements
• B. It eliminates all risk
• C. It is a different kind of contract emphasizing shared ownership, risk, and reward
• D. It relies on separate agency relationships

Answer: (C)

Integrated Project Delivery is a different kind of contract approach that brings the owner, designer, and builder into a single multi-party agreement with shared ownership, risk, and reward. This setup emphasizes early collaboration, aligned objectives, and transparent information so decisions are made as a team, with incentives tied to project outcomes. The aim is to reduce waste, avoid disputes, and deliver value faster by treating the project as a unified effort rather than a collection of separate contracts.

This differs from traditional contracts, which separate the participants and assign risk through individual agreements, often fostering an adversarial mindset and shifting risk between parties rather than aligning it. IPD does not eliminate risk; it distributes it among the core team. It also does not rely on separate agency relationships; instead, it creates a single, integrated team under one contract whose shared goals drive decisions.