Collaborative Contracting

Collaborative Contracting

The construction industry is facing numerous challenges and difficulties, and one of the most prominent issues is project overruns. Studies have shown that only 8.5% of large construction projects meet their cost and time targets, indicating a significant problem in the sector. The top causes of cost overruns are often rooted in the early stages of a project. Poor quality of technical documents and studies, poor estimation of scope, time, and cost, permit risks, conflicts on trust between partners, and conflicts on scope, time, and cost are all contributing factors to project delays and overruns.

Fortunately, the industry has recognized these challenges and has developed accepted practices to help solve them. Collaborative contracting, for example, is an industry solution that can help construction companies overcome these obstacles. There are various standards such as the ISO 44000, established contract models such as NEC4 and Bouwteam, and guidelines such as the PIANC report on ECI. These standards have proven to be effective in reducing project overruns and improving collaboration in large construction projects. These approaches prioritize communication, trust, and cooperation between all stakeholders, ensuring that everyone is working towards the same goals, and can help to minimize disputes and delays.

By implementing collaborative contracting practices, developers and construction companies can significantly improve their project outcomes and avoid the costly delays and overruns that are all too common in the industry.

Our approach

1.  Establish Collaborative Advantage

  • Identify Clients core goals it wants to be achieved on the project
  • Identify how collaborative arrangements can meet those core goals
  • Identify common goals to deliver value for money & fairness to all

2. Early Market Engagement

  • Engage with the market as to Clients plans and solicit potential bidders of the upcoming Client procurement proposal.
  • Explore ‘best fit’ collaborative contractual arrangements with bidders
  • Consider compensation arrangement for bidders' costs
  • Bidder engagement meetings: establish how client core and common goals can be aligned 

3. Shortlist & select Contractor + Consultants

  • A selection process geared to assess potential bidders' suitability
  • Bid process to outline scope, requirements, deliverables, timelines
  • Select bidder(s) subcontractors & supply chain which best fulfil the Client core & common goals

4.  Working together to achieve Goals

  • Fostering greater subcontractor & supply chain engagement 
  • Identify and collate key project risks & how they may be dealt with
  • Promoting High Performing Team Culture and Behaviours

5. Implement the Collaboration Contract

  • Lock in the Collaboration Contract to fix price, time, and quality
  • Partners, subcontractors & suppliers work jointly to manage the project
  • Open communication with all project participants

6. Managing Collective Ownership

  • Continuous Performance Measurement and Management
  • An Integrated Delivery Program means no sudden surprises
  • A risk sharing mechanism fosters parties to achieve Client goals

7. Tools

  • Establish bid competition by evaluating bidders budget pricing at an early stage. 
  • Open-book cost estimating and scheduling, leading to informed design choices and pricing proposals without surprises. 
  •  Effective oversight: use an independent cost estimator to provide confidence that bid pricing is fair and reasonable. 
  • Continuous monitoring of Client’s project outcomes: budget, time, risks, and governance as project progresses

8.  Bonus Deliverables

  • Constructability & de-risking during design & engineering phase
  • Safety in Design & Construction ​
  • Integration of sustainable solutions​
  • Greater ability to instill Innovation ​
  • Sound basis for O&R management & dispute resolution during delivery  

Our services

Audit on ECI Effectiveness

Main Contract Review

Procurement & Contract Selection

Client Capture Avoidance Assistance 

Contractor Selection in a Collaborative Delivery Model

360° Team Assessments, Simulations / Roleplaying

ECI (services) Execution Plan

ECI Project Communication Plan


Code of Conduct / Charter / Game Rules

Training: Relational Contracting -- Leading by Example

Project Start-Ups & Follow-Ups​​

Foundations for ECI Budgeting​

Setup for Knowledge Sharing​

Collaboration assessment​​

ECI teambuilding workshops​

Risk Management & Value Engineering Sessions​

Advisory in Risk Mitigation/ Sharing / Transfer Strategies  ​

Review & Assist in Drafting Employer’s Requirements ​

Coordination of Gap Analysis  & Site Investigation Setup ​

Oversight Contractor’s Design & Engineering Work  ​

Monitoring Design & Engineering Progress