A review of the concepts and definitions of the various forms of relational contracting

Rowlinson, Steve & Cheung, Yan Ki Fiona (2004) A review of the concepts and definitions of the various forms of relational contracting. In Kalidindi, S.N. & Varghese, K. (Eds.) International Symposium of CIB W92 on Procurement Systems, 7−10 January 2004, Chennai, India.

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Construction project teams are unique entities, created through a complex integration of factors, with inter-disciplinary players, varying roles, responsibilities, goals and objectives (Goodman and Chinowsky, 1996). Collaboration and teamwork are therefore crucial since sharing up-to-date information between participants leads to minimising errors, reduction of time delays and breaking the widespread rework cycle, which allows a sustainable relationship between participants to evolve. Benefits of collaborative, rather than adversarial, working relationships within construction organisations are well documented (Walker and Hampson, 2003).

Successful sustainable relationships rely on relational forms of exchange characterised by high levels of trust. However, it was shown in the past that the construction industry has a stronger preference for distrust rather than the full benefits of cooperation (Wood and McDermott, 1999). There is a need for culture change to bring about increased cooperation between parties on a long-term basis. With relational contracting, based on the sustainable relationship and trust, a win-win situation can be created for both the client and contractor. The development of trust between organisations is seen as a function of the length of the relationship between them (Bresnen and Marshall, 2000a). It is also believed that the construction industry is one which requires lots of trust between participants due to the high uncertainty in the industry.

This paper aims to look at the how traditional procurement methods are changing and moving towards sustainable procurement forms through the relational contracting approach. A critical review on first and second generation partnering will be presented, followed by a discussion of how change in procurement culture, towards sustainable business relationships, can be investigated.

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ID Code: 17861
Item Type: Conference Paper
Refereed: Yes
Additional Information: Yan Ki Fiona Cheung is the maiden name of Fiona Lamari
Keywords: relaitonal contracting, partnering, alliance, culture, CRC for Construction Innovation, Program A : Business and Industry Development, Project 2002-022-A : Value in Project Delivery Systems: Facilitating a Change in Culture
Subjects: Australian and New Zealand Standard Research Classification > BUILT ENVIRONMENT AND DESIGN (120000) > BUILDING (120200) > Building Construction Management and Project Planning (120201)
Divisions: Past > QUT Faculties & Divisions > Faculty of Built Environment and Engineering
Past > Institutes > Institute for Sustainable Resources
Past > Schools > School of Urban Development
Copyright Owner: Copyright 2005 Icon.Net Pty Ltd
Copyright Statement: The Participants of the CRC for Construction Innovation have delegated authority to the CEO of the CRC to give Participants permission to publish material created by the CRC for Construction Innovation. This delegation is contained in Clause 30 of the Agreement for the Establishment and Operation of the Cooperative Research Centre for Construction Innovation. The CEO of the CRC for Construction Innovation gives permission to the Queensland University of Technology to publish the papers/publications provided in the collection in QUT ePrints provided that the publications are published in full. Icon.Net Pty Ltd retains copyright to the publications. Any other usage is prohibited without the express permission of the CEO of the CRC. The CRC warrants that Icon.Net Pty Ltd holds copyright to all papers/reports/publications produced by the CRC for Construction Innovation.
Deposited On: 16 Feb 2009 23:40
Last Modified: 24 Mar 2014 01:44

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