Partnering to be made clearer

Partnering supply chains must be governed by clearer contracts or the partnerships will not survive a recession. That's the view of David Bowen, senior consultant for contract services provider Turner & Townsend.

His report, Will it all end in tears for the UK construction industry?, has just been completed. He told CJ: "So far the industry has enjoyed a strong economic environment, but many supply chains have the wrong idea of partnering and this could lead to collapses if the economy starts to falter and competition increases."

Bowen said contracts need to be made clearer, and disputes should be settled "internally" rather than going through the courts. He proposed a three-stage process: the set up of a steering group made up of representatives of each part of the chain; the installation of an agreed mediator; and finally the move to adjudication.

"I know this is the way the legal system wants to go," said Bowen. "Many civil disputes are going this way as courts demand the use of mediation. The government, wants to cut the costs and time of court proceedings. This has been helped by the ECC contract, a huge improvement on the JCT and ICE formats."

However, Bowen argued that not enough of the private sector is using the ECC contract, especially smaller clients.