Maintaining Relationship Based Procurement

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.