Leading Industry Organizations Affirm 'There's a Better Way To Negotiate Contracts'
ConsensusDOCS, a coalition of 22 leading construction industry organizations, has published “ConsensusDOCS Procedures,” which describe how the coalition organizations collaborate to develop model construction contract documents and forms that advance the project's best interest.
Procedures sets an example for openness and transparency, the coalition says. Rather than approach negotiations as a zero-sum gain among competing interests, ConsensusDOCS emphasizes a mutually beneficial approach that leads to better project results.
"Contracts help define business relationships," said E. Colette Nelson, executive vice president of the American Subcontractors Association Inc. and chair of the ConsensusDOCS Business and Marketing Advisory Council. "Early on, ConsensusDOCS made a decision that its process for developing contract language for the industry would be transparent and inclusive. The ConsensusDOCS Procedures describe how the ConsensusDOCS' mission of collaborating in the best interest of a project materializes at the operational level. The Procedures guide the ConsensusDOCS coalition, but their collaborative approach may also inspire others to re-think the old, stereotyped 'push risk to the weakest party' approach to negotiating contracts."
To help the coalition continue its success, the ConsensusDOCS Procedures:
- Affirm a commitment to "a transparent and efficient consensus decision-making process"
- Invite all potential stakeholders in collaboratively producing standard contracts
- Establish stakeholders' right to have a voice in ConsensusDOCS contract deliberations, including assuring that "all voices are heard, the opinions in the minority are respected and actively considered, and that the final product furthers the mission of ConsensusDOCS"
- Ensure that the ConsensusDOCS timely respond to new case law developments and emerging industry issues
- Establish a minimum of a five-year drafting cycle, and establish a process for revising documents sooner, if needed
- Establish structures for ConsensusDOCS document development and marketing, including advisory councils and an executive director.
The ConsensusDOCS Procedures, available online at www.ConsensusDOCS.org, are the product of the coalition's experience in balancing diverse interests. The 2007 launch of the ConsensusDOCS documents was made possible by the joint work of more than 20 organizations, including designers, owners, contractors, subcontractors and sureties (DOCS). The coalition also released a first-of-its-kind building information modeling addendum (BIM Addendum) June 30, 2008, and is currently developing other documents.