Construction

Ten ways to improve collaborative contracting for project delivery in the GCC

Designing the collaboration model

Collaborative models require a greater communication and transparency level, with every participant working towards a common goal. Pure alliancing models represent a big departure from traditional contracts in the GCC, where construction contracts are generally based on FIDIC forms of contract designed to favour one party. A more balanced approach is needed where the existing FIDIC forms can be made bespoke with collaborative principles from NEC 4 Alliance (UK) contracts and/or National Alliance Contracting guidelines (Australia), thereby a middle path is achieved. A legal perspective is required to ensure FIDIC contracts can be amended to make room for alliancing arrangements. At an organisational level, the contracts could be signed as a multi-party contract or between each party and the owner, with an addendum specifying collaboration and an Alliance Management Team (AMT) structure. A collaborative model combines features of a pure alliance model and elements of a FIDIC design & build contract, resulting in a palatable contract for both parties involved.

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