Collaborative Construction Contracts for Complex and International Projects

Description

Complex and international construction projects often involve unique hurdles that traditional contract project delivery cannot overcome especially due to current global trends and market forces. Traditional contract models often position owners, contractors, engineers, and other stakeholders in adversarial relationships from the start of the project which leads to project delays, quality issues, and complicated claims. Many studies show that over time, the construction industry has declined in productivity when compared to other major industries. One of the most significant causes of low productivity and heightened disputes is the misalignment of commercial interests among stakeholders caused by traditional contracting methods.

In contrast, collaborative contracting models, including alliance contracting, integrated project delivery, and other progressive models on mega projects have resulted in a greater level of schedule, price, and overall project certainty. In the collaborative contract context, owners and all stakeholders are integrated into a single contract that optimizes early collaboration and significantly reduces disputes.

Some of the advantages of collaborative contracting include better transparency, flexibility, cost savings from early risk management and adversarial dispute resolution, and optimal working relationships among stakeholders centered on a culture of trust and collaboration instead of confrontation. Some of the potential disadvantages of collaborative contracting can include some of the stakeholders not embracing a "no fault/no blame" mindset with potential disputes, defects, and poor performance. Also, some project owners and contractors are uncertain as to how to negotiate, draft, and perform collaborative contracts and may fall victim to old habits that undermine good faith, trust, and collaboration.

Listen as our distinguished panel of construction attorneys discusses trends, key requirements and benefits of collaborative contracting, the multiple factors that drive a project's success both nationally and globally, and the potential challenges and risks of collaborative contracting. The panel will also address best practices for construction counsel when crafting dispute resolution provisions in the collaborative contract context.