Relationship contracting in Malaysia

Abstract

Relationship contracting is a form of contract system where management of relationship is given precedent over the dictate of a standard form of contract. It emphasises on trust, teamwork, sharing of profit or loss, sharing of risks and alignment of interests. Contract based on relationship is yet to be fully explored and utilised in Malaysia. Most construction companies are accustom to traditional contracts such as lump sump, turn key and cost per unit contracts. The research project focuses on developing a process to evaluate the suitability of applying relationship contracts in Malaysia's construction industry.