The Covid-19 emergency has posed some very tough questions for client-contractor relations, the type of challenges that could potentially damage long term partnering arrangements and the organisations involved beyond repair.  The whole supply chain is at risk if cashflow is withheld and a contentious culture develops.  The fallout could be significant and no-one wins.

Construction News reports that 24% of contracting firms expect to end up in court as a result of the pandemic but, perhaps, the fact that 76% believe they might not is actually the news here.

This suggests the vast majority of clients and suppliers alike are taking a mature and collaborative approach to squaring this particular circle. It has been very interesting to observe how government and the civil service have set a positive “tone” with the contractual issues that have arisen.  Reflecting on our own personal experience, we cannot remember a series of instructions and guidance – such as the Cabinet Office’s PPN’s –(PPN02/20 PPN01/20  responsible contractual behaviour guidance) that has ever been so dynamic. 

Ideally it should not have taken a crisis of this magnitude to act as the catalyst for change but there are many positive signs which augur well for the difficult times ahead.

At 4i Solutions Limited we work with partnership teams, investing in team development and leadership to deliver better outputs. Often this is through the use of collaborative contracts such as PPC2000, TPC2005 and TAC and the bespoke price frameworks that can be developed within them. The key lesson that we reflect on and keep coming back to though, is the need for us as individuals to keep a cool head and a positive “tone” in discussions and negotiations.  Something which is far easier to achieve where there already exists strong collaborative partnership based on transparency and a shared vision.