Contract Strategy: When a Contracting Strategy Points to Collaboration
In COAA’s first article in this series, the best practice of “institutionalizing” contract strategy assessment activities and decisions was discussed.
This article expands on the series theme, recognizing that there is a wide range of contracting approaches – from so-called “traditional” to so-called “collaborative.” The term traditionally refers to the widely accepted and utilized approaches that contractualize construction project delivery models in which design and construction are often sourced separately and performed sequentially – and rather importantly for the purposes of this article – contracted in a way where the owner retains management control while transferring risk to contractors and subcontractors.
These models include: (i) Design-bid-build (DBB) and (ii) Engineering, Procurement Construction management (EPCm), and to a lesser extent: (ii) Design-Build (DB); and (iii) Engineering, Procurement Construction (EPC) delivery models.
Whereas, the term collaborative refers to the contractualization of construction project delivery models characterized by early collaboration on design, construction and price and contracts that align the parties’ interests and encourage cooperation, joint management and share risk.
These models include: (i) Early Contractor Involvement (ECI); (ii) Project Alliancing; and (iii) Integrated Project Delivery (IPD).
DOWNLOAD ARTICLE #2 IN THE SERIES to learn more.
