Relationship Contracting

Relationship contracting can be defined if both the party involved in the contract/project work towards a single cause in turn benefiting both the parties involved. If a contractor has worked previously for a client and share a mutual beneficial relationship; the relationship cannot be used for future project involvement. Both parties have to sit together and decide on the scope of work along with the control and involvement of both the parties. This process of negotiating helps to keep the contractor on toes and does not allow the contractor to take a client for granted. The discussion between the client and the contractor also impacts on the packaging options consideration. A packaging option is a legal framework surrounding the procurement method. In recent years a greater adoption towards relationship contracting is observed. A team is formed in relationship contracting who oversee the work which is executed by the contractor. The relationship contracting eliminates adverse team relation by both parties working for a common goal in mutually benefiting each other.