Selection of appropriate project delivery system is key for project success. It also gains much importance in a fast developing economy like India where there is a greater emphasis on development of housing and infrastructure involving huge investments. The present practices of project delivery led to inefficiency and distrust among the employer, consultant, contractor, and suppliers. Integrated Project Delivery (IPD) is a project delivery approach that integrates people, systems, business structures and practices into a process that collaboratively contributes to optimise the project results. However, the adoption of IPD in Indian construction is in its formative stage due to the challenges that are faced by various stakeholders. The objective of this study is to analyse the perceptions of the beneficiaries and intermediaries in the construction sector, on these challenges. An exploratory study has been conducted among various beneficiaries and intermediaries of construction sector in India using a questionnaire survey to gain insight into the perceived challenges. It has been observed that the intermediaries and beneficiaries differ in their perceived challenges, which is also found to be significant in legal issues. An in-depth analysis also revealed that the stakeholders perceived the following challenges significantly different: Employer's unwillingness to share consultant in the profits of the project (Finance), Resistant to change (Culture), Disengagement agreement of the parties to implement the project on time (Legal), and Unfamiliarity with BIM (Technical).