More-Stable Owner-Contractor Relationships

This paper presents an updated and enhanced version of a study conducted by the task force of the Construction Owners Association of Alberta (COAA) on “More-Stable Contractor Relationships.” The purpose of the study was to explore the current contracting philosophies, strategies, methods of execution, tendering processes, and techniques. The purpose of the study was also to identify the problem areas and determinants of success in the execution of projects, and to share these findings with the industry for further improvement. We have found that the industry is somewhat complacent and appears reluctant to embrace change. There is a preoccupation with contract award on the basis of lowest lump-sum bid although most recognize that this often results in a higher end price for the product. There is a need for improvement in the areas of life-cycle costing, contracting process, risk management, teamwork, trust, and cooperation, as well as communication and the use of quality management principles. There are ample opportunities to be more progressive. The survey and subsequent evaluation concluded that any initiatives to formulate more stable contractor relationships must come from construction owners.