The Use, Benefits and Risks of Relationship Contracting

Many local governments have adopted relationship contracting (also called relational contracting, partnering, alliancing or collaborative contracting) for the delivery of complex public services and infrastructure to ensure alignment of incentives and outcomes and collaborative procurement objectives. This article demonstrates how relationship contracting prioritises ongoing cooperation, joint problem-solving and shared objectives over short-term price competition or tightly prescriptive specifications. It also shows that unlike rigid transactional deals, relationship contracting assists in better risk allocation, innovation and improved supplier relationships and capacity building.

The team at Muscat Tanzer have considerable experience in relationship contracting and the development of procurement and contract models and documents to assist with the delivery of complex infrastructure and services.

Please don’t hesitate to contact us if you have any questions or need assistance with your next relationship contracting project.