Collaborative contracting: Approach or Delivery Model?
Collaboration has become a critical factor in the successful delivery of major infrastructure projects. But what exactly is collaborative contracting and how does it fit into the broader landscape of project delivery solutions? Is it merely an approach that fosters better relationships, or can it stand alone as a formalised delivery model?
Collaborative contracting is both an approach and, in some cases, a distinct delivery solution. It refers to a mindset and set of practices aimed at fostering cooperation, trust, and joint problem-solving among project participants, but it can also take the form of specific contractual models designed to embed collaboration.
As an approach
Collaborative contracting emphasises building strong relationships between all parties involved in a project—clients, contractors, designers, and stakeholders—through open communication, shared goals, and joint decision-making. It encourages:
- Transparency in costs, risks, and project objectives
- Shared responsibility for the success and challenges of the project
- Problem-solving and innovation through teamwork, rather than adversarial relationships.
Regardless of the delivery model—for example, Design-Build, Engineering, Procurement and Construction, or Public Private Partnership—collaborative contracting principles can be applied to improve outcomes by aligning incentives and encouraging cooperation.
As a delivery model
Collaborative contracting can also manifest as specific contract structures or delivery solutions designed to formalise and enforce collaboration. Some of these models include:
Alliance Contracting: A formal collaborative delivery model where all parties (owner, contractor, designer) enter into a single, collective agreement. They share risks and rewards, and success is measured based on joint performance. Decisions are made collaboratively, and there’s a no-blame culture.
Integrated Project Delivery: Another formal model where all key stakeholders sign a multi-party agreement, aligning incentives and sharing both risks and rewards. The focus is on collaboration from the outset of the project, with joint decision-making and shared accountability.
Early Contractor Involvement (ECI): While not purely a contract type, ECI is a delivery model that promotes early collaboration by bringing contractors into the project during the design phase. This fosters a collaborative environment where constructability and risks are addressed early.
In summary:
As an approach, collaborative contracting can be applied to any delivery model to improve relationships and outcomes.
As a delivery solution, collaborative contracting models like Alliance Contracting or Integrated Project Delivery formalise collaboration through contractual agreements that share risks, rewards, and responsibilities among all project participants.
Therefore, collaborative contracting can shape both how a project is executed (approach) and how contracts are structured (delivery model).
