Finding the Optimal Contractual Arrangement for Projects on Process Job Sites

This paper describes how, after trying a variety of contract strategies over a 3-year period, an alliance contract developed between a client and key electrical and mechanical contractors for project work. It explains why the benefits, in terms of time and cost, are not always quantifiable, even though teamwork benefits and close collaboration are apparent. It illustrates, through a number of case studies, the benefits that closer collaboration between clients and key contractors can engender and argues that such benefits will, in the long term, bring about real time and cost savings. The paper briefly describes the types of contract strategies available for this type of work and how these strategies developed over a period of time. The paper provides conclusions regarding the most appropriate contract strategy for the procurement of project work on the site and recommendations regarding actions that need to be taken by the client to ensure optimum efficiency in the future.