Maintaining relationship based procurement

Davis, P R (2007) Maintaining relationship based procurement. Construction Economics and Building, 7(2), pp. 37-44. ISSN 2204-9029

Abstract

Alliance and relationship projects are increasingin number and represent a large pool of work. Tobe successful relationship style contracts dependon soft-dollar factors, particularly the participants'ability to work together within an agreedframework, generally they are not based on lowbid tendering. Participants should be prepared todo business in an open environment based ontrust and mutually agreed governance. Theresearch evaluates relationship maintenance inthe implementation phase of constructionalliances - a particular derivative of relationshipstyle contracts. To determine the factors thatcontribute to relationship maintenance forty-nineexperienced Australian alliance projectmanagers were interviewed. The main findingswere; the development of relationships early inthe project form building blocks of success fromwhich relationships are maintained and projectvalue added; quality facilitation plays animportant part in relationship maintenance and ahybrid organisation created as a result of alliancedevelopment overcomes destructiveorganisational boundaries. Relationshipmaintenance is integral to alliance project controland failure to formalise it and pay attention toprocess and past outcomes will undermine analliance project's potential for success.

Item Type: Article
Uncontrolled Keywords: alliance; procurement; relationship contracting/ maintenance
Index terms: relationship-based procurement, boundaries, implementation, governance
Subjects: business, property law, contractual arrangements
Topics: Procurement, Legal Issues, Governance
Descriptive scope: 2 PC

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