Selecting the Right Contracting Model for Effective Delivery of your Major Projects

Paul Foster, Chief Executive, Sellafield Ltd confirmed to Chair this event. The proposition that contract choice is a major factor in success or failure of the delivery of major projects has become a truism. This seminar is an opportunity to explore in detail 2 key questions about this vital aspect of major project delivery: • What drives decision making on contract choice within client organisations and how can it be improved? The type or model of contract to be used is one of the major planks of a client organisations’ procurement strategy. It defines and shapes the relationships through the life of projects, blocking or enabling productive collaboration with delivery partners. How does practice differ across public, private and regulated sectors, different governance arrangements and with different levels of project complexity and organisational capability? • Does the market (do we/I mean clients here?) dictate contract choice too heavily? Given the importance of contract choice for project success should early contractor involvement be used more effectively to give the supply chain a voice in contract selection? How can this work in practice? At the extremes, supply chain organisations’ exposure to the risks inherent in particular contract models has been cited as a factor in high profile corporate failures. Such failures have a direct and highly visible impact on customers, creating huge operational and reputational risks for clients. Would contractor involvement in contract choice also improve the sustainability of the supply chain?