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Contracting in the New Economy

Using Relational Contracts to Boost Trust and Collaboration in Strategic Business Relationships

Palgrave Macmillan

Authors:

  • Provides guidance for readers to generate greater value and mitigate risk through a collaborative and innovative contracting model

  • Uses case studies from multiple countries and industries to show relational contracting in practice

  • The authors are the world’s leading thought leaders on the topic, with backgrounds in law and business

Buying options

eBook USD 29.99
Price excludes VAT (USA)
  • ISBN: 978-3-030-65099-5
  • Instant PDF download
  • Readable on all devices
  • Own it forever
  • Exclusive offer for individuals only
  • Tax calculation will be finalised during checkout
Softcover Book USD 37.99
Price excludes VAT (USA)
Hardcover Book USD 37.99
Price excludes VAT (USA)

This is a preview of subscription content, access via your institution.

Table of contents (17 chapters)

  1. Front Matter

    Pages i-xxxvi
  2. Contracting in the New Economy

    1. Front Matter

      Pages 1-1
    2. Welcome to the Contracting Paradox

      • David Frydlinger, Kate Vitasek, Jim Bergman, Tim Cummins
      Pages 3-19
    3. Viewing Contracting Through a Different Lens

      • David Frydlinger, Kate Vitasek, Jim Bergman, Tim Cummins
      Pages 21-33
  3. The Science of Contracting

    1. Front Matter

      Pages 35-37
    2. Businesses Want Contracts; Business People Do Not

      • David Frydlinger, Kate Vitasek, Jim Bergman, Tim Cummins
      Pages 39-44
    3. The Social Science of Contracting

      • David Frydlinger, Kate Vitasek, Jim Bergman, Tim Cummins
      Pages 45-54
    4. The Economics of Contracting

      • David Frydlinger, Kate Vitasek, Jim Bergman, Tim Cummins
      Pages 55-69
    5. The Psychology of Contracting

      • David Frydlinger, Kate Vitasek, Jim Bergman, Tim Cummins
      Pages 71-87
  4. From Theory to Practice

    1. Front Matter

      Pages 89-91
    2. A Comparison of Transactional and Relational Contract Models

      • David Frydlinger, Kate Vitasek, Jim Bergman, Tim Cummins
      Pages 93-105
    3. When to Use a Relational Contract

      • David Frydlinger, Kate Vitasek, Jim Bergman, Tim Cummins
      Pages 107-122
    4. Choosing a Contract Model in Practice

      • David Frydlinger, Kate Vitasek, Jim Bergman, Tim Cummins
      Pages 123-135
    5. A Systemization of Contracts

      • David Frydlinger, Kate Vitasek, Jim Bergman, Tim Cummins
      Pages 137-147
  5. Five Steps to a Relational Contract

    1. Front Matter

      Pages 149-149
    2. The Importance of the Right Process

      • David Frydlinger, Kate Vitasek, Jim Bergman, Tim Cummins
      Pages 151-154
    3. Step 1: Lay the Foundation for a Partnership

      • David Frydlinger, Kate Vitasek, Jim Bergman, Tim Cummins
      Pages 155-174
    4. Step 2: Co-create a Shared Vision and Objectives

      • David Frydlinger, Kate Vitasek, Jim Bergman, Tim Cummins
      Pages 175-189
    5. Step 3: Adopt Guiding Principles for the Partnership

      • David Frydlinger, Kate Vitasek, Jim Bergman, Tim Cummins
      Pages 191-212
    6. Step 4: Align Expectations and Interests (Architect the Deal Points)

      • David Frydlinger, Kate Vitasek, Jim Bergman, Tim Cummins
      Pages 213-237

About this book

Today’s business environment is constantly evolving, filled with volatility, uncertainty, complexity and ambiguity and driven by digital transformation, globalization, and the need to creating value through innovation. These shifts demand that organizations view contracting through a different lens. Since it is impossible to predict every what-if scenario in a transactional contract, organizations in strategic and complex partnerships must shift to a mindset of shared goals and objectives built upon a strong foundation of transparency and trust, working together to mitigate risk much better than merely shifting risk to the weaker party.

Contracting in the New Economy helps you to not only develop this mindset – but also offers the practical tools needed to embrace the social side of contracting, enabling your organization to harness the value creating potential of formal relational contracts.  Briefly sharing the theoretical foundations that prove relational contracting works, it goes well beyond theory by providing powerful examples of relational contracting principles in practice.  

In addition, the authors provide a practical and proven approach for helping you to put relational contracting theory into practice for your own relationships. First by providing a framework for approaching any contracting situation and helping organizations finding the best contract model for each situation. And then by sharing five proven steps you can take to create an effective relational contract for you own strategic and complex business relationships.

For anyone involved in developing contracts —lawyers, in-house counsels, contract managers, C-level managers, procurement officers, and so on — this book will empower you to create powerful cooperative alliances that will help you reach —and surpass — your business goals in today’s dynamic new environment.

Keywords

  • relational contracts
  • collaborative contracting
  • flexible contracting
  • agile contracting
  • relationship-based contracts
  • high-risk contracts
  • contract negotiation
  • strategic contracts

Authors and Affiliations

  • Cirio Law Firm, Stockholm, Sweden

    David Frydlinger

  • University of Tennessee at Knoxville, Knoxville, USA

    Kate Vitasek

  • Commercial Officers Group, Inc, Westminster, USA

    Jim Bergman

  • World Commerce & Contracting, Petersfield, UK

    Tim Cummins

About the authors

David Frydlinger is a Partner at Cirio law firm in Sweden, an adjunct faculty member at the University of Tennessee and active in World Commerce & Contracting in Sweden. He is a Vested Certified Deal Architect and has more than twenty years of experience in drafting and negotiating outsourcing and other complex commercial contracts. David is also author and co-author of several books, including Getting to We: Negotiating Agreements for Highly Collaborative Relationships

Kate Vitasek is a world authority on highly collaborative win-win relationships for her award-winning research and Vested® business model. Author of six books and a Graduate and Executive Education faculty member at the University of Tennessee, Vitasek has been lauded by World Trade Magazine as one of the “Fabulous 50+1” most influential people impacting global commerce. Vitasek is a contributor for Forbes magazine and has been featured on CNN International, Bloomberg, NPR, and Fox Business News.

Jim Bergman is the CEO of Commercial Officers Group, an advisory and training firm focused on establishing high-yield contracting for a global client base and across multiple sectors.  He has over thirty years of “in the trenches” experience in commercial contracting, initially as a contract attorney, with an emphasis on collaborative and strategic models.  He has developed contracting processes for a number of Fortune 500 companies, and his efforts have generated value worth over US$500 million.

Tim Cummins is the President of World Commerce & Contracting, formerly IACCM. Tim works with leading corporations, public and academic bodies, supporting executive awareness and understanding of the role that procurement, contracting and relationship management increasingly play in 21st century business performance and public policy.  Prior to WCC, Tim's business career included executive roles at IBM and a period on the Chairman's staff, leading studies on the impacts of globalization and the re-engineering of IBM's global contracting processes.


Bibliographic Information

  • Book Title: Contracting in the New Economy

  • Book Subtitle: Using Relational Contracts to Boost Trust and Collaboration in Strategic Business Relationships

  • Authors: David Frydlinger, Kate Vitasek, Jim Bergman, Tim Cummins

  • DOI: https://doi.org/10.1007/978-3-030-65099-5

  • Publisher: Palgrave Macmillan Cham

  • eBook Packages: Business and Management, Business and Management (R0)

  • Copyright Information: The Editor(s) (if applicable) and The Author(s), under exclusive licence to Springer Nature Switzerland AG 2021

  • Hardcover ISBN: 978-3-030-65098-8Published: 25 May 2021

  • Softcover ISBN: 978-3-030-65101-5Published: 26 May 2022

  • eBook ISBN: 978-3-030-65099-5Published: 24 May 2021

  • Edition Number: 1

  • Number of Pages: XXXVI, 310

  • Number of Illustrations: 21 b/w illustrations, 82 illustrations in colour

  • Topics: Supply Chain Management, Procurement, Management

Buying options

eBook USD 29.99
Price excludes VAT (USA)
  • ISBN: 978-3-030-65099-5
  • Instant PDF download
  • Readable on all devices
  • Own it forever
  • Exclusive offer for individuals only
  • Tax calculation will be finalised during checkout
Softcover Book USD 37.99
Price excludes VAT (USA)
Hardcover Book USD 37.99
Price excludes VAT (USA)