Hoezen, M; Voordijk, H and Dewulf, G (2012) Contracting dynamics in the competitive dialogue procedure. Built Environment Project and Asset Management, 2(1), pp. 6-24. ISSN 2044-124X
Abstract
The competitive dialogue (CD) aims to align complex demands of principals with possible solutions that contractors have to offer. It is, however, unclear how formal and informal structures and processes in the CD are interrelated. The purpose of this paper is to provide insights in to the development of and the relationship between interaction processes during negotiations and commitments in terms of formal and informal contracts during a CDprocured project. Based on a case study of a complex construction project, an eventdriven explanation is provided of the sequence in which a discrete set of critical events occur. Critical events show that problems of understanding are caused by differences between the formal legal and the informal psychological contract of one of the parties involved. During all phases of a project, the parties involved oscillate between negotiations and commitments, depending on whether there is understanding or not. Negotiations and commitments act as substitutes. The formal legal contract and the informal psychological contract are complementary. The competitive dialogue develops less promisingly than hoped for due to risk aversion actions by at least one of the parties involved. Insights of this study help to create more cooperative working relationships and to reduce failure costs of large complex projects. The indepth case study offers a unique opportunity to reconstruct an intensive procurement process by detailed firsthand information in a specific case.
| Item Type: | Article |
|---|---|
| Uncontrolled Keywords: | competitive strategy; construction works; contracting; contracts; conversation; procurement; project planning; the Netherlands |
| Index terms: | construction work, project planning, dynamics, interaction, case study, Netherlands, construction project, psychological contract, complex project, negotiation, commitment, competitive strategy, procurement process |
| Subjects: | psychology, conflict resolution, Geography, data collection methods, control systems, contractual arrangements, systems engineering, economic analysis, strategic project management, behavioral psychology, operations management, production management |
| Topics: | Research Practice, Stakeholder Management, Organizational Design, Engineering Principles, Project Management, Procurement, Business Strategy, Geographical Context |
| Descriptive scope: | 3 PCE |
N.B. Descriptive scope is a count of how many of the five facets of empirical research are indicated by the words used in title, abstract and keywords. It is not intended as a judgement on the research; merely a count of the kind of word we would expect to indicate Phenomenon, Concepts, Theoretical framing, Empirical techniques, Analytical techniques. If all five are present, then a code of “5 PCTEA” will indicate this. If you feel the coding for this record is questionable, we welcome discussion around the terms we matched or the way we categorized them. The facet you would expect may not be coded, or a facet may be coded inappropriately. This can also bear on a larger question, of which facets should be treated as defining in construction management research. Please get in touch, and we will look at it. More details here