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PPT : Relational Contracting and the Application of Lean Principles: an Aerospace, Construction Industry Comparison

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Hypothesis
* Neo classical forms of contract and arms’ length contractual relations do not support collaborative or “lean” working and lead to adversarial working relationships. The ensuing mistrust and defensive behaviour increases transaction costs and undermines the efficiency gains intended from applying lean principles.

Rationale for the Research
* Contract Law
o Classical, adversarial presumption in the West (Macneil, 1974)
o Arm’s Length Contractual Relations (Sako, 1993)
o Presumption to protect your own company using
+ contract terms
+ contract law WHEN not IF things go wrong, i.e. contracting for failure)
* Contract documents
o Terms agreed ex-ante i.e. before any work starts on the new product (Cullen et al)
* Competitive markets require increased efficiency from contractors
* Therefore contactors must develop:
o Lean or agile management of unforeseen events
o Collaborative working relations (e.g Integrated project teams)
o Jointly developed legal, commercial and technical processes
o Mutually acceptable risk and reward sharing
o Holistic supply chain management perspective
o Mutual trust
* N.B Contract documents must formally recognise the relational basis of contemporary contractual relations

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PPT : Relational Contracting and the Application of Lean Principles: an Aerospace, Construction Industry Comparison Category : Aerospace
Source : www.leanconstruction.org
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Language : English
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