Collaborative procurement approach in the private construction industry : a preliminary study

The construction industry is fragmented and adversarial in nature due to the complexity of various participants coming together in the delivery of a construction project. This paper investigates the application of relationship contracting within the private sector of the South Australian construction industry as an alternative approach to procurement in addressing the issues associated with traditional forms of contracting. Through a review of literature and interviews with key participants of the construction industry, the research provides insights into how relationship contracting is being implemented, its benefits and the problems associated with its application in the private sector. The results showed that industry has reasonable level of knowledge on the principles of relationship contracting and willingness to use this alternative procurement approach in the private sector even though driven by different factors. It is suggested further research to be undertaken either with a focus on the relationship between the contractor and subcontractor or alternatively whether the requirements of green star buildings are bringing about a more collaborative approach.