Traditionally, construction project contracts are signed, sealed and filed away, only to be dusted off and used to support or refute an argument when disputes occur. For clients and supply chains, disputes might seem inevitable when delivering multimillion-pound projects, critical infrastructure and complex buildings in an uncertain construction environment. As well as unexpected events during construction, political, economic and environmental factors can also present unforeseen challenges.

Collaborative contracts versus traditional

However, instead of the traditionally one-sided contract terms, which from the outset pitch individual parties against one another, collaborative contracts can establish and promote effective project management designed to leave no one party exposed. This is achieved through contractual mechanisms that champion shared goals, risk and responsibility.

There are many differences between a collaborative and traditional contract – not least in the type of language used. Collaborative contracts are intended to be used by the parties operating the contract and need to be written in such a way that they can be clearly understood by the users.

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