A Relational Contractual Framework for Promoting Collaborative Project Environments

Previous studies have shown the potential of integrated project delivery (IPD). They demonstrated its superiority to other delivery methods in terms of exhibiting enhanced productivity, cost, schedule, quality, and risk performances. It achieves so through cooperative collaboration, open information sharing, risk and reward sharing, and early involvement. Yet, voids have been identified in current IPD agreements that hinder them from attaining their full potential. This research proposes a contractual framework that fills these voids by utilizing the lessons learned from prior IPD projects and building on the strengths of relevant partnering contracts from the United Kingdom (U.K). In other words, this research presents a relational contract framework that integrates the strengths of the U.S. IPD with the U.K. partnering agreements. A three-step methodology was utilized. First, the authors reviewed the available standard forms of IPD and partnering contracts in the U.S. and the U.K. markets. Second, the authors investigated past IPD projects to analyze their faced contract-based problems and lessons learned. Third, the authors developed a contractual framework that addresses the critical contractual aspects. The developed framework should be useful to contract drafters as it promotes a more efficient and effective contracting environment throughout improved cooperation, risk sharing, incentives, and conflict mitigation. The authors encourage legal professionals to utilize the proposed framework in the process of updating and further enhancing the IPD standard forms of contract.