Governance Systems

Steps to reduce adversarial conflicts.

Published December 2004 The goals of a sucessful governance system for project management and a suggestion for implementation.

Mutual incentives, close working relationships, and a shared vision for all project participants is crucial for large capital projects. The goal of a governance system is to establish those three realities. An idea to avoid adversarial arrangements and eliminate destructive conflicts is to write a single contract that combines both AE and CM firms and which forces collaboration between these two entities; putting them jointly at risk and jointly under a combined incentive award fee.

- From Tradeline's Conference on The Up-Front Planning, Structuring, and Shaping of Large Capital Projects 2004