Our common law legal system is based on the adversarial model. Parties represented by lawyers make arguments to "win" a case. And lawyers apply the same competitive approach to contracts, including those in the supply chain. The results are contracts that mitigate risk, but with negative consequences like: "unfair" risk allocations, overly protectionist legal provisions -- and resource consuming negotiations that erode trust, damage relationships and leak value.
However, there are some new types of contract – and a new, more collaborative form of contracting process – that can produce more positive results such as: shared risk-reward, stronger more collaborative relationships that are primed to create value -- and less conflict in general.
These contracts include: New Engineering (NEC3) and Integrated Project Delivery (IPD) and Alliance Agreements.