Contracts are designed as instruments of certainly and we try to control and constrain change because we are frightened of scope creep.”
In my previous role managing construction product testing deals, the “scope creep” was the only certain uncertainty.
The real problem was more feature creep, manufacturers would be within the testing process for 12 - 24 months. Often testing requirements would change due to their commercial strategy or regulatory requirements. Occasionally, product innovation would also occur during that time.
Learn more about Relational Contracting
Naturally, that would change the scope, the parameters of the testing and the number of “billable hours” that we would require to test with the rigour required for the industry.
At this point, the relationship became the key to the success of the project or the failure.
Indeed, we knew the contract was the “scaffolding” of the relationship and that’s not to say I had many a meeting (or two) where it was cited.
However, looking at the 9 principles of relational contracting and thinking about when projects were successful. What we did well was creating “mutual objectives”,“problem-solving” together and having honest and open “communication.” These were the pillars required for managing the commercial contract successfully when scope creep was commonplace.
This is a short snapshot, yet a repeated story from my time in construction. Our contexts and experiences will build our own perspectives, I wonder what your thoughts are?
Loading...
Finally, you may have a question about your own organisation’s approach to relational contracting. Please feel free to ask any questions, we would love to help.
Matt Tizzard | mtizzard@worldcc.com
Shape the Future of Contracting and Commercial Practices
Benchmarking Survey 2023 - we need your opinion.
In today's rapidly evolving business landscape, staying ahead requires a deep understanding of industry benchmarks and best practices.
This survey will take 20 - 30 minutes of your time and is your opportunity to contribute to a global initiative to transform contracting and commercial practices worldwide.
By participating in our survey, you join a diverse community of contracting and commercial professionals dedicated to driving positive change and setting industry standards. Your insights and expertise are crucial in shaping the future of our field. Together, we will redefine what it means to excel in contracting.
Thank you for reading. If there are any topics, resource or support you need from me or WorldCC, please do not hesitate to reach out. Have a great week!
