Relationship contracting in Australia

Abstract

Trust is the principle foundation of partnering and relationship management. Successful partnering can only be achieved when a cooperative relationship is built between partners. In order to build either a long or short-term relationship, trust is a major component because of the increase in openness it engenders between parties. This paper discusses how procurement methods in the construction industry are changing and moving towards a more relationship-based contracting approach. This paper details the role of trust in facilitating relationship-based contracting from a general perspective to its implications for a construction project. The authors indicate how changes in procurement culture towards sustainable business relationships benefit different parties in the industry and have the potential to achieve empowerment and regional development. This paper is based on research undertaken in the public sector in Queensland, Australia.