Preparing to fail by failing to prepare
Posted by APM on 29th Feb 2016
The London branch welcomed Peter Madden on Thursday 25th February 2016 to give an enlightening presentation on the paradox of relational contracting in the planning, appraisal and delivery of the UK’s critical infrastructure.
Peter shed light on how risk is transacted and managed at the front end phase of major infrastructure programmes in the UK and more particularly on how this is influenced by policy and its influence on the adopted contract strategy.
He pointed out that major programmes have a poor record for benefits realisation relative to forecast time and cost and the seminar explored the extent to which this is influenced by contract method.
He went on to explain that major programmes appear to be more successful if the actors are permitted to collaborate in the interests of managing emergence, complexity and risk over long time horizons. The contracting method most likely to enable this is relational contracting, yet it is the least likely to be adopted.
The seminar concluded by suggesting steps that may be taken to influence policy and planning to advance wider adoption of relational contracting as a ‘contracting innovation’, to prepare the UK Infrastructure and Construction Industry for the more successful delivery in future, of the huge wave of infrastructure investment that will present itself over the next twenty years.
Peter has kindly given permission for his presentation slides to be available to view in the APM resources action of our website.