Relational Contracting and Process Design Promoting Cooperation

Bengt Toolanen1 & Thomas Olofsson2

1PhD candidate, Tech Lic., Div of Structural Engineering, Luleå University of Technology, SE-971 87 Luleå, Sweden Bengt.Toolanen@ltu.se
2Professor, Div of Structural Engineering, Luleå University of Technology, SE-971 87 Luleå, Sweden Thomas.Olofsson@ltu.se

Abstract

In Sweden as in many other countries new demands have led to the set-up of public committees and research projects for scrutinizing the construction sector. The main conclusions are that traditional models for managing the building process do not match the nature of today’s fast- track, uncertain and complex projects. Since 2004 there is also a government appointed Committee in Sweden dealing with these matters. It is interesting to notice that the Committee has already given prominence to Lean Construction ideas and concepts as a model for the future of the Swedish construction sector. New ideas and innovative concepts for the development of the construction process in huge projects which are extremely quick, uncertain and complex have been tested by the Swedish mining company LKAB at a pelletizing plant project described in this paper. The project is procured as a partnering project on DB (Design and Build) basis and with transparent remuneration form. The expectations and demands from the client concerning targets regarding time, cost and functions are set high. Advanced design models such as 3D, 4D and VR has been used to support a concurrent engineering design and construction process. This paper will mainly deal with the relational contracting aspects. Especially, how the contracting model affects the process design. The results of the study presented are based on a field survey case study carried through by the authors.

Keywords

Procurement models, project types, lean contracting, relational contracting, field survey, process design

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Reference

Toolanen, B. & Olofsson, T. 2006, 'Relational Contracting and Process Design Promoting Cooperation' In:, 14th Annual Conference of the International Group for Lean Construction. Santiago, Chile, 1-. pp 191-203

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