Abstract

Province of Quebec (Canada) is in the process of implementing integrated project delivery (IPD) in its procurement process for public infrastructure to more effectively and efficiently achieve functional, environmental, and economic objectives. This paper analyzes the procurement legislation, regulations, and context of three jurisdictions through a comparative law approach and under the light of Macneil’s relational contract theory. It is found that Quebec’s procurement process has transactional features that should be counterbalanced, in the context of IPD implementation, by focusing on relational values, whether at the macro or personal level. These relational mechanisms should help legislators and public bodies establishing and operationalizing a viable and relational context of professional services and construction works procurement for IPD projects.

Highlights

  • The public sector has traditionally used design-bid-build as its main delivery method to complete construction projects, usually adjudicated using the lowest responsive and responsible bidder criterion

  • What are the specific regulatory transactional features acting as a barrier to integrated project delivery (IPD) implementation and which relational mechanisms could help to mitigate those features? This study aims at providing legislators and public bodies, such as the Société québécoise des infrastructures (SQI), establishing and operationalizing a viable and relational context of procuring professional services and construction works for complex projects, in terms of developing the necessary innovations to deliver environmentally friendly buildings at a competitive cost, and achieve environmental goals and sound management of public funds by using IPD

  • The procurement regulatory framework is considered by some researchers as an exogenous uncertainty leaving little scope to apply a more relational contracting approach relying on risk-sharing mechanisms, open communication, and joint goals, and this externally imposed regulatory framework could hinder the development of inter-organizational trust [23]

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Summary

Introduction

The public sector has traditionally used design-bid-build as its main delivery method to complete construction projects, usually adjudicated using the lowest responsive and responsible bidder criterion. Macneil assumes that there are 10 common contractual norms, which are interpreted according to a discrete/relational spectrum, and determining how contracting parties must, or should, behave during the exchange: these norms are role integrity, reciprocity, planning, effectuation of consent, flexibility, solidarity, linking norms (restitution, reliance, and expectation), power, propriety of means, and harmonization with the social matrix This sociological approach to contracts helps to understand the relational, non-market aspects of economic activities [10], making it an appropriate theoretical framework to study the implementation of IPD in Quebec’s public procurement process. The paper concludes by formulating implications for public authorities, policy makers, and outlining future research

Integrated Project Delivery
Relational Contract Theory
Relational Contracts in Construction
Relational Contracts and Governance
Power and Public Markets for Professional Services and Construction Works
Bureaucratization as a Form of Domination
Planning Linearity and Rigidity
Factors Influencing Regulation Content and Decision-Making of Public Bodies
Social Context as a Driver for Choice
Macro Source of Trust and the Tenderer’s Perception of Public Bodies
The Need for a Particularistic Source of Trust
Development of Relational Trust in the Procurement Process
Levelling Expectations Between the Parties
Mutual Planning of Objectives and Conflict Resolution
Mutual Determination of Objectives
Flexible Requirements and Conflict Resolution
Findings
Conclusions
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