Application of Relational Contracting Methods to Federal Construction Projects

Abstract

Relational contracting is a method designed to improve relationships between contracted parties. The federal construction sector was a leader in the development and implementation of an early form of relational contracting known as partnering. Since then, alliancing has emerged as the new evolution of relational contracts. While it provides many potential benefits to contracting parties, alliancing has not yet been utilized in federal construction procurement, which is subject to stringent regulations. A commercially available standard form alliancing contract was selected for analysis against the Federal Acquisition Regulation. Key practices that characterize the alliancing method were identified. Utilizing a panel of federal contracting experts, qualitative data were gathered to analyze which of these key practices do or do not comply with federal regulations, why certain practices do not comply, and how those practices could achieve compliance. The results show that most alliancing key practices can be utilized in a federal acquisition project. While some practices cannot be used effectively under current regulations, these limitations do not significantly hinder the use of a comprehensive and effective federal alliancing contract

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