IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v13y2020i1p289-d472586.html
   My bibliography  Save this article

Preparing for Successful Collaborative Contracts

Author

Listed:
  • Ole Jonny Klakegg

    (Department of Civil and Environmental Engineering, Norwegian University of Science and Technology, 7491 Trondheim, Norway)

  • Julien Pollack

    (School of Civil Engineering, The University of Sydney, Darlington, NSW 2006, Australia)

  • Lynn Crawford

    (School of Civil Engineering, The University of Sydney, Darlington, NSW 2006, Australia)

Abstract

Preparing well before entering a contract is always vital, independent of the characteristics of the project and type of contract. However, as projects become larger and more complex, and value for stakeholders and society becomes the dominating perspective on success, the need for well-developed collaboration is becoming more and more critical. In this paper, we investigate how the parties should prepare for a collaborative project. The purpose is to help owners secure the success of the project for its key stakeholders. We choose to address the issues as an active risk mitigation strategy that serves as a vehicle to reduce uncertainty, avoid unnecessary risks, and utilize opportunities as a project owner. We look at the project mainly through a project owner perspective, but on key points, we contrast this with contractor perspectives. The research was performed in Australia in 2020 and includes public and private sector investment projects. The methodology is qualitative case studies and includes primarily in-depth interviews supplemented with document studies and two workshop group discussions. The paper highlights the difference between being collaborative in a contract and using a collaborative contract. The results document significant differences in preparations depending on the degree of complexity of the projects. One major difference is illustrated in the different levels of precision in terms and definitions used in communication. Complex projects require freedom of interpretation only gained by allowing wide and less precise expressions.

Suggested Citation

  • Ole Jonny Klakegg & Julien Pollack & Lynn Crawford, 2020. "Preparing for Successful Collaborative Contracts," Sustainability, MDPI, vol. 13(1), pages 1-18, December.
    • Handle: RePEc:gam:jsusta:v:13:y:2020:i:1:p:289-:d:472586
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/13/1/289/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/13/1/289/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. David Baxter & Carter B. Casady, 2020. "Proactive and Strategic Healthcare Public-Private Partnerships (PPPs) in the Coronavirus (Covid-19) Epoch," Sustainability, MDPI, vol. 12(12), pages 1-8, June.
    2. Schmidt, Klaus M., 2017. "Contributions of Oliver Hart and Bengt Holmström to Contract Theory," Munich Reprints in Economics 49921, University of Munich, Department of Economics.
    3. Nannan Wang & Minxun Ma & Yunfei Liu, 2020. "The Whole Lifecycle Management Efficiency of the Public Sector in PPP Infrastructure Projects," Sustainability, MDPI, vol. 12(7), pages 1-17, April.
    4. Mike Bresnen & Nick Marshall, 2000. "Building partnerships: case studies of client-contractor collaboration in the UK construction industry," Construction Management and Economics, Taylor & Francis Journals, vol. 18(7), pages 819-832.
    5. Johan Larsson & Lisa Larsson, 2020. "Integration, Application and Importance of Collaboration in Sustainable Project Management," Sustainability, MDPI, vol. 12(2), pages 1-17, January.
    6. Klaus M. Schmidt, 2017. "Contributions of Oliver Hart and Bengt Holmström to Contract Theory," Scandinavian Journal of Economics, Wiley Blackwell, vol. 119(3), pages 489-511, July.
    7. Aarhaug, Jørgen & Fearnley, Nils & Gregersen, Fredrik A. & Norseng, Robert Bjørnøy, 2018. "20 years of competitive tendering in the Norwegian bus industry – An analysis of bidders and winning bids," Research in Transportation Economics, Elsevier, vol. 69(C), pages 97-105.
    8. Yujing Yang & Wenzhe Tang & Wenxin Shen & Tengfei Wang, 2019. "Enhancing Risk Management by Partnering in International EPC Projects: Perspective from Evolutionary Game in Chinese Construction Companies," Sustainability, MDPI, vol. 11(19), pages 1-16, September.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Fischer, Roger A., 2020. "How the G7 reviews its work on development: A case study of internal accountability," IDOS Discussion Papers 19/2020, German Institute of Development and Sustainability (IDOS).
    2. Alexander Teytelboym & Shengwu Li & Scott Duke Kominers & Mohammad Akbarpour & Piotr Dworczak, 2021. "Discovering Auctions: Contributions of Paul Milgrom and Robert Wilson," Scandinavian Journal of Economics, Wiley Blackwell, vol. 123(3), pages 709-750, July.
    3. Manning, Stephan, 2017. "The rise of project network organizations: Building core teams and flexible partner pools for interorganizational projects," Research Policy, Elsevier, vol. 46(8), pages 1399-1415.
    4. Stavros Sindakis & Saloome Showkat & Jiafu Su, 2023. "Unveiling the Influence: Exploring the Impact of Interrelationships among E-Commerce Supply Chain Members on Supply Chain Sustainability," Sustainability, MDPI, vol. 15(24), pages 1-27, December.
    5. Per Erik Eriksson & Ossi Pesamaa, 2007. "Modelling procurement effects on cooperation," Construction Management and Economics, Taylor & Francis Journals, vol. 25(8), pages 893-901.
    6. A. Q. Adeleke & A. Y. Bahaudin & A. M. Kamaruddeen, 2018. "Organizational Internal Factors and Construction Risk Management among Nigerian Construction Companies," Global Business Review, International Management Institute, vol. 19(4), pages 921-938, August.
    7. Shoeb Ahmed Memon & Steve Rowlinson & Riza Yosia Sunindijo & Hafiz Zahoor, 2021. "Collaborative Behavior in Relational Contracting Projects in Hong Kong—A Contractor’s Perspective," Sustainability, MDPI, vol. 13(10), pages 1-15, May.
    8. Mohammad Ajmal Nikjow & Li Liang & Xijing Qi & Samad Sepasgozar, 2021. "Engineering Procurement Construction in the Context of Belt and Road Infrastructure Projects in West Asia: A SWOT Analysis," JRFM, MDPI, vol. 14(3), pages 1-17, February.
    9. Nerhagen, Lena & Brandt, Daniel & Mortazavi, Reza, 2023. "Use of public transport as a means to reach national climate objectives - On the importance of accounting for spatial differences and costs," Transport Policy, Elsevier, vol. 131(C), pages 56-65.
    10. Tan, Si Ying & Foo, Chuan De & Verma, Monica & Hanvoravongchai, Piya & Cheh, Paul Li Jen & Pholpark, Aungsumalee & Marthias, Tiara & Hafidz, Firdaus & Prawidya Putri, Likke & Mahendradhata, Yodi & Gia, 2023. "Mitigating the impacts of the COVID-19 pandemic on vulnerable populations: Lessons for improving health and social equity," Social Science & Medicine, Elsevier, vol. 328(C).
    11. Hee-sung Bae, 2021. "The Interaction Effect of Information Systems of Shipping and Logistics Firms and Managers’ Support for Blockchain Technology on Cooperation with Shippers for Sustainable Value Creation," Sustainability, MDPI, vol. 13(8), pages 1-14, April.
    12. Mark Geoghegan & Kathryn Cormican & Qiong Wu, 2021. "Sustainable Team Design: A Challenge to Traditional Beliefs in Information-Intensive Service Industries," Sustainability, MDPI, vol. 13(24), pages 1-19, December.
    13. Peter Konhäusner & Marius Thielmann & Veronica Câmpian & Dan-Cristian Dabija, 2021. "Crowdfunding for Independent Print Media: E-Commerce, Marketing, and Business Development," Sustainability, MDPI, vol. 13(19), pages 1-17, October.
    14. James Robert Mason, 2007. "The views and experiences of specialist contractors on partnering in the UK," Construction Management and Economics, Taylor & Francis Journals, vol. 25(5), pages 519-527.
    15. Jarosław Górecki & Manuel Díaz-Madroñero, 2020. "Who Risks and Wins?—Simulated Cost Variance in Sustainable Construction Projects," Sustainability, MDPI, vol. 12(8), pages 1-31, April.
    16. Wang, Nannan & Gong, Zheng & Liu, Yunfei & Thomson, Craig, 2020. "The influence of governance on the implementation of Public-Private Partnerships in the United Kingdom and China: A systematic comparison," Utilities Policy, Elsevier, vol. 64(C).
    17. Jiabao Jing & Xiaomei Deng & Rashid Maqbool & Yahya Rashid & Saleha Ashfaq, 2020. "Default Behaviors of Contractors under Surety Bond in Construction Industry Based on Evolutionary Game Model," Sustainability, MDPI, vol. 12(21), pages 1-28, November.
    18. Rocio Rodriguez & Göran Svensson, 2021. "The Role of Public Resource Desynchronization on Business Model Sustainability in the Private Healthcare Industry," Sustainability, MDPI, vol. 13(11), pages 1-15, May.
    19. Roberto Moro-Visconti, 2021. "Networking Digital Platforms and Healthcare Project Finance Bankability," Sustainability, MDPI, vol. 13(9), pages 1-18, April.
    20. Fuguo Cao & Cong Wang, 2022. "An Empirical Study of Determinants of Pay-for-Performance in PPP Procurement," Sustainability, MDPI, vol. 14(19), pages 1-20, October.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jsusta:v:13:y:2020:i:1:p:289-:d:472586. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.