Long-term partnerships have become popular models in Finnish public and private sectors. Public-Private-Partnerships are new models in construction sector. In real estate sector owners have increased outsourcing facility services. This development has meant that the amount of partnership agreements have become bigger. Because of these facts also the interest of researching long-term contracts in the field of construction and real estate has increased.
This research is a qualitative research which is carried by abductive logic. In this research long-term contracts in the field of construction and real estate are outlined in terms of contract law. The goal of the research is to find out: Which factors in terms of contract law have importance in mentioned long-term contracts? This is solved by examining literature, contracts and making theme interviews.
This research contains next contract law mindsets: process concept of contract, relational contracting, dynamics of contract, proactive contracting and contractual risk management. These mindsets function partly as a background for the research and partly as a tool to outline mentioned contracts.
The results of the research show firstly, what is contract management and how a company can with it arrange comprehensively it's contract policies and this way make it's business more efficient. Secondly the results show, what responsive contract is and how it can bring flexibility to long-term contractual relationships. The results also show, have trust and duty of loyalty in long-term contracts effect on parties. Also the results show how these mentioned three questions become apparent in practical contract policies in the field of construction and real estate. The results also show what the key elements in terms of contract law are in facility service partnership agreements.
Research brings contribution to Finnish contract law and especially to the research of long-term contracts. On the other hand it brings contribution to construction economics and management by enhancing the importance of contracts as part of sector's business. Results create conclusions and recommendations to the construction and real estate sector
