The development of contract strategies for construction projects

The term contract strategy is used in this thesis to describe the organisational and contractual policies which are chosen for the execution of a specific project. The overall aim of this thesis is to present a conceptual framework for the process which leads to the choice of a contract strategy and to derive a methodology for the development of a contract strategy for a project. The thesis demonstrates that the development of a contract strategy is an important task for the client or his project manager. This task is shown to comprise a thorough assessment of the choices available for the implementation and management of design and construction. A pattern of interrelated decisions is required which seeks to maximise the likelihood of achievement of key project objectives. It is likely that the chosen strategy will be optimal, since it is rarely feasible to maximise the likelihood of achieving all project objectives and priorities whilst simultaneously meeting all the constraints on the project and also achieving the desired allocation and management of risk. The primary sub-systems of the contract strategy process are identified and discussed. The need for an early and clear establishment of project characteristics by the project management team is shown to be of paramount importance. The thesis then describes and evaluates the different choices available from which an appropriate contract strategy will be selected. These include organisational structures for design and construction, types of contract and tendering policies. Guidance is given on the circumstances which may lead to a specific choice. Two case studies, with which the author has been involved, are included to illustrate the application of a contract strategy approach and the difficulties which may be encountered. Finally, a recommended methodology for developing a contract strategy is proposed. The research has been primarily based on UK practice and on international projects involving U. K. firms. Nevertheless, it is suggested that the concept and proposed methodology is internationally applicable, provided care is exercised in matters of detail.