Relationship-Based Contracting Solutions
Overview
Relationship contracting structures seek to avoid or limit disputes by recognising and developing convergent interests among the parties involved. Parties are encouraged to proactively manage and resolve difficulties and conflicts for their mutual success. These models have been very successfully applied in both specific projects and in longer-term strategic relationships. The most recognised examples of relationship contracting are:
Partnering maintains traditional risk allocations. However, the mutual understanding, commitment, equity, trust and goals of the parties are expressly incorporated into the contracting structure. Maintaining goodwill and proactive dispute avoidance/resolution is often supported by escalation concepts for rapid dispute management.
In an alliancing model the parties effectively abandon traditional rights of action, other than in limited circumstances. Their interests are aligned by a pre-agreed equitable sharing of risks and rewards. The parties take a no blame focus to achieving successful project outcomes. Disputes are proactively resolved to the mutual benefit of project participants.
Our services
Our high calibre team:
Relationship contracting structures seek to avoid or limit disputes by recognising and developing convergent interests among the parties involved. Parties are encouraged to proactively manage and resolve difficulties and conflicts for their mutual success. These models have been very successfully applied in both specific projects and in longer-term strategic relationships. The most recognised examples of relationship contracting are:
Partnering maintains traditional risk allocations. However, the mutual understanding, commitment, equity, trust and goals of the parties are expressly incorporated into the contracting structure. Maintaining goodwill and proactive dispute avoidance/resolution is often supported by escalation concepts for rapid dispute management.
In an alliancing model the parties effectively abandon traditional rights of action, other than in limited circumstances. Their interests are aligned by a pre-agreed equitable sharing of risks and rewards. The parties take a no blame focus to achieving successful project outcomes. Disputes are proactively resolved to the mutual benefit of project participants.
- Would your organisation be suited to and benefit from relationship-based contracting structures?
- Are you familiar with the range of options available, how they are implemented and the pitfalls?
- Do you understand the circumstances in which particular approaches are most likely to be effective in avoiding or minimising disputation for mutual benefit?
- Do you know how to implement, monitor and manage a successful relationship based contract solution?
Our services
Our high calibre team:
- provides detailed advice on alternative structures, including relevant considerations, requirements, suitability, advantages and disadvantages
- works with clients to establish and effectively implement appropriate relationship contracting structures
- guides the management and resolution of issues and disputes within the established frameworks, including strategic advice and alternative support techniques for pro-active dispute resolution.