Developing Cooperative Project Client-Supplier Relationships: How Much to Expect from Relational Contracts Harvard Case Solution & Analysis

In recent years the infrastructure promoters are interested in translating Toyota lean management paradigm for new infrastructure projects. This approach assumes, customers and suppliers of the projects are ready to work together. To turn on this premise, customers began to experiment with relational contracts. An empirical study on the use of relational contract 4.2 billion expansion of Heathrow Airport in London confirms, however, the old saying that the devil is in the details. Undoubtedly, relational contracts allow the customer to design and suppliers to work together to achieve a common goal. However, intertwined ways in which the client implements the contract, writing commercial parts as well as setting and interpretation of the data throughout the project is critical to encourage suppliers to work together and meet the expectations of the client. This study unpacks five factors to create relational labor contracts in projects: suppliers seek to exploit reputation benefits from participation in the project, providers have flexibility in their production processes, customers and suppliers to choose the right people to work, the client learns a relational contract in response to provider feedback; . customer and aligns his practice to monitor and improve performance with the skills of providers' Hide
by Nuno Gil Source: California Management Review 27 pages. Publication Date: February 1, 2009. Prod. #: CMR422-PDF-ENG

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Developing Cooperative Project Client-Supplier Relationships: How Much to Expect from Relational Contracts

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