Intelligent Environments can respond to the changing needs of their users, activities, and contexts. They can automatically and dynamically adjust key environmental parameters, such as temperature, light, sound, furnishings, and more. However, most of the attempts to develop Intelligent Environments have focused on their technical aspects, and have largely ignored the dynamic interrelationship between the user and the built environment. As a result, the environmental conflicts among users, their activities and their physical settings have not been completely resolved. This paper applies concepts of environmental design to theorize a framework and propose a more comprehensive model for building Intelligent Environments. In contrast to the current approach, which is based on a systems theory, the method here looks to a collaborative design as a model: it views the modification of settings in Intelligent Environments as a dynamic, collaborative design activity akin to the work of a human design team. The proposed model is developed as a team-type structure of multiple intelligent agents, each of which can sense immediate changes in its domain of responsibility, and can propose corrective measures by negotiating with other agents to form a collective response.