Recent developments in both relationship contracting and non-traditional project delivery methods have had a substantial impact upon the way organisations within the Australian construction industry carry out their business to achieve successful project delivery.

In the late 1980s, following a period of high-profile disputes, there was a trend towards a more co-operative and collaborative approach to contracting. It was during this time that the concept of partnering was introduced to Australia. Partnering in turn led to the development of relationship contracting.

Relationship contracting has developed into a wide ranging concept which varies from informal agreements to work co-operatively for the success of the project, to the implementation of a pure alliance arrangement and, most recently, the use of ECI.

The concept of relationship contracting brings with it a range of principles and concepts, which include:

• shared and common goals;
• pro-active objectives and key performance indicators;
• issue management and resolution processes;
• robust risk and opportunity management;
• probity and accountability;
• ongoing review and evaluation leading to continuous improvement and team building;
• plans and strategies for achieving stretched goals and outstanding performance; and,
• pain/gain or incentivised remuneration based on outcomes and performance.

The need for relationship contracting in Australia has increased in recent years due to the substantial growth in construction activity, including a significant increase in the growth of gas sector work. Much of the construction activity has been carried out using a fast track approach in an environment where resources are limited.

This presentation will discuss the development of relationship contracting and, in particular, will look at ECI arrangements and alliance delivery models for gas infrastructure delivery.