GC21: a relationship-based contract
Cooperative contracting
NSW Government construction agencies developed the GC21 Edition 2 standard form contract (GC21) for design and construction. It follows the success with the C21 and GC21 Edition 1 contract forms.
GC21 encourages effective cooperation contracting, especially where the parties involve experienced personnel motivated to achieve successful project outcomes.
The GC21 Edition 2 standard form contract provides:
- relationship-based contracting with specified requirements for cooperation between the parties
- transparent and balanced allocation of risk
- mitigation of disputes
- incorporation of NSW Government policy initiatives
- support for continuous improvement and new cooperative approaches.
Contract provisions
To foster cooperative contracting, the GC21 provisions:
- encourage cooperation
- impose a duty on the parties not to hinder performance
- requires parties to provide early warning of events that may affect the project.
There are also innovative provisions for:
- early payment
- payment for defect-free completion of the work
- encouragement to agree on the implications of variations in advance
- entitlements to delay costs
- procedures for the expeditious resolution of issues.
Meetings and workshops
GC21 includes requirements for:
- a start-up workshop to establish relationships and a communication framework
- regular evaluation and monitoring meetings
- a close-out workshop to deal with future relationship issues.
Read more about GC21 meetings and workshops.
Essential treatments
This cooperative contracting approach includes 3 essential treatments:
- a legally binding contract, stipulating the rights and obligations of the contracting parties
- trust between the parties that enables cooperation, common sense, decency and good will to prevail
- a longer-term perspective and belief that the parties will be enriched by the experience and want to work together again.
Personal behaviours
Cooperative contracting needs and encourages personal behaviour involving:
Cooperative contracting requires the commitment of all parties to:
- cooperative contracting
- a successful outcome contract
- continuous learning and improvement, even when challenges, personal discomfort and possible failure are involved.
This is particularly so at the senior executive level. Senior executives provide those involved in the contract with leadership and valuable advice.
Cooperative contracting requires the trust and ongoing confidence of each party that the other will be:
- open
- honest
- reliable
- consistent
- responsive
- fair and reasonable.
Cooperative contracting needs and encourages mutual respect between contracting parties.
Respect is about having regard to the values of others. Values are the principles that guide organisational and individual behaviour. They determine what behaviour is acceptable and what behaviour is unacceptable.
We respect organisations and individuals when we respect their values.
GC21 provides for cooperation and regular 2-way flow of information. This is supported by the start-up workshop and regular evaluation meetings.
GC21 requires the parties to provide early warning and to respond in a timely manner to each other's requests, problems and concerns.
GC21 provides for the parties to jointly evaluate their performance as a team. This happens in regular evaluation and monitoring meetings.
Others participating in the contract and the overall project may also contribute.
Related resources
Find more resources on the construction category page.