Challenges and Opportunities in Adopting Early Contractor Involvement ECI Client S Perception
Challenges and Opportunities in Adopting Early Contractor Involvement ECI Client S Perception
Challenges and Opportunities in Adopting Early Contractor Involvement ECI Client S Perception
Farshid Rahmani
To cite this article: Farshid Rahmani (2021) Challenges and opportunities in adopting early
contractor involvement (ECI): client’s perception, Architectural Engineering and Design
Management, 17:1-2, 67-76, DOI: 10.1080/17452007.2020.1811079
Introduction
Over the past decades, development of relationship-based approaches to project contracting have
arisen in response to increasing problems in the construction industry (Manley, 2002) in an effort
to achieve specific business objectives by maximising the effectiveness of each participant’s
resources and establishing ongoing business relationships (Rahmani, Khalfan, & Maqsood, 2016a).
Evidence shows the use of relationship-based procurement (RBP) could improve project performance
and offer direct benefits to the whole supply chain (Walker & Hampson, 2003). Among different RBP
methods, Early Contractor Involvement (ECI) has emerged as a new construction procurement
approach that typically is utilised for complex projects to alleviate uncertainty and manage risks
more effectively (Eadie & Graham, 2014). Originated in the UK in 1998, development of Early Contrac-
tor Involvement (ECI) is an endeavour to involve the contractor at the early design and planning stage
of a project to improve the project outcomes including cost, time, quality, and working relationships
(Rahmani et al., 2016a).
In Australia, ECI is adopted and contextualised from the British version in 2005 for delivery of a
number of projects mainly in the road and rail sectors (Campbell & Minns, 1996; Walker & Lloyd-
Walker, 2014). While the number of projects procured under ECI has been increasing in last few
decades (Edwards, 2009; Love, O’Donoghue, Davis, & Smith, 2014; Scheepbouwer & Humphries,
2011; Whitehead, 2009), shifting from conventional to relational procurement methods such as ECI
still requires deliberate efforts and fundamental changes by clients involved in the projects (Eriksson,
Atkin, & Nilsson, 2009; Kumaraswamy, Ling, Rahman, & Phng, 2005). Like other procurement systems,
clients should understand why ECI is suitably deployed over other types of procurement systems
(Walker & Lloyd-Walker, 2012) to evaluate their individual and organisational capability to ascertain
that they are adequately equipped to overcome difficulties associated with adoption of collaborative-
based approaches. However, despite the growing use of ECI by public sectors in Australia in past
decades, there has been limited research that investigated the characteristics of this delivery
system from the public sectors views. The aim of this study is to investigate the challenges and oppor-
tunities for clients to implement ECI for their projects. Influenced by the aim of this study, the prin-
cipal research question is ‘how clients in construction perceive the challenges and opportunity
associated with adoption of Early Contractor Involvement (ECI)?’. This research question encompasses
the dimensions of the fundamental benefits and barriers in utilising ECI and identification of other
aspects that are essential to understand the core characteristics of ECI.
This paper is structured as follows: A literature review is presented that describe the concept of ECI.
This review is followed by the methodology section, which describes the research process and pro-
vides details of data collection technique. This paper highlights the important findings from the study
and future research directions.
ECI as a hybrid version of the original British version includes two phases with two separate contracts
throughout the different stages of project. The first phase, similar to design alliancing, involves the
contractor in a collaborative environment where all project participants become responsible for resol-
ving problems during the planning and design phase. In the second phase, a conventional form of
contract such as Construct only, Design and Construction and Managing Contractor at risk (Love
et al., 2014) is adopted to complete the design and construct the project. Prior to commencement
of the first phase, client normally develops a business case as well as some works on preliminary plan-
ning and detailed design report. The selection process of the contractor involves several interviews
with potential contractors on the basis of non-price, qualification-based dialogues. Upon the appoint-
ment of the contractor, an open book reimbursement contract is signed at the rates contained in the
contractor’s tender including margins and overhead (Rahmani et al., 2017). The contractor alongside
with client and designer collaborate to develop the plans, design and risk adjusted price. If the client
agrees with the price, the appointed contractor sign the contract for the second phase including
detailed design and construction, otherwise the project moves to the market as a construction
contract.
Research methodology
Research methodology refers to the various means by which data can be collected and analysed
(Collis & Hussey, 2009). The choice of research methodology is guided by the philosophical underpin-
ning of the research problem, the sources from which data is collected, feasibility of the study and
other factors such as time, location and ethical issues (Lewis, Saunders, & Thornhill, 2009). Guided
by the research aim, this study considers the reality through a position of the social construction of
information. This subjectivist point of view of reality as projection of individual imagination
encourages a concern for understanding the process through which human beings concretise
their relationships to the world (Morgan & Smircich, 1980).
Influenced by the research philosophical position, in order to gain an insight about client’s views
about challenges and opportunities in adopting ECI, this study adopts a qualitative research
approach as the method of inquiries as advocated for the study of the complex nature of the
phenomenon when the objective of the research is understanding and describing the phenomena
from the participants’ perspective (Flick, 2009).
Data collection
The choice of techniques for collecting data is highly influenced by the strategy adopted for conduct-
ing the research. The choice of qualitative approach guided this study to employ semi-structured
interviews as the primary data collection technique. This study intended to capture professionals’
point of view about ECI. Interviews, therefore, could document research participants’ attitudes, feel-
ings, beliefs, experiences and reactions.
The strategy for recruitment of participants for this study was driven by the principles of purposive
sampling in an effort to involve participants who could contribute to understanding the concepts
being explored. Targeted participants were involved in the construction of infrastructures in Australia
within the public sector organisations including state government departments. Ideal participants
had been involved in the implementation process of ECI and could provide input into their experi-
ence in that area. There are six states in Australia with their own state constitutions dividing the
state governments into the same divisions of legislature, executive and judiciary as the federal gov-
ernment. Approval to conduct the study within the organisation was sought from the head of each
department via email. Three departments in Victoria, Queensland, and South Australia responded to
the request and agreed to participate in the research project. Upon receipt of the approval, a list of
candidates who had interest in participating in the research study including their contact details was
requested. Initially participants were sought through invitational emails sent directly to them or their
secretary and additional participants were identified through snow ball sampling approach from the
other participants referral.
In total, 25 in-depth semi-structured interviews were conducted with experts and key manage-
ment representatives on three state government organisations. The 25 people who were interviewed
all performed senior leadership roles for their department with several decades of experience within
their field of practice specialised in the establishment and delivery of collaborative contracts for
complex projects and programmes including ECI as well as other conventional procurement strat-
egies. Table 2 provides a summary of the participants’ profile.
Interviews involved the researcher and participants in detailed discussion of the issues tackled in
the research. Each interview took 30–45 min and all interviews were audio recorded and sub-
sequently transcribed to text format files. The analysis process adopted a ‘content analysis’ approach
for the identification of common threads that extends throughout an entire interview or set of
interviews.
Although the hard-dollar stage of the model gives the client the ability to justify obtaining value for
money to the government to some extent, a general perception that ECI is a softer form of contract
raises treasury’s concerns with respect to the value for money. This finding is supported by Rahmani
et al. (2016b) and Walker and Harley (2014) that the use of relationship based procurement models
are unable to demonstrate the full value of what they have done and hence remain unproved for a
number of advisors in government departments.
Unfamiliarity of the client with the process was described as another barrier. One of the respon-
dents mentioned that ‘From having gone through the process I think one of the challenges from the
client’s side is that ECI is rarely used for projects so we gain limited experience and lesson learned for
the next [ECI] projects’. Respondents indicated that they had fairly good understanding of both the
traditional contracts as well as highly collaborative approaches such as PPP and Alliancing but
were unfamiliar with the ECI process where the combination of both is in place. In addition, misun-
derstanding of key strategic decisions, lack of confidence and knowledge of the delivery team seem
to be the impediments for adoption of ECI. These issues were perceived as one of the challenges in
the project teams for running and facilitating the ECI process due to lack of adequately trained
resources. The result of a study conducted by Love et al. (2014) within the public sector in the
Western Australia also show unanimous agreement with this finding in that the lack of experience
of clients in using ECI and competent resources influence the public sector’s choice of ECI procure-
ment method.
72 F. RAHMANI
Remuneration mechanism of ECI was deemed to be problematic which did not cover the actual
costs of design and tendering to the contractor for the first stage. Although the level of senior per-
sonnel and amount of time invested in the process from the contractor’s side is significant, there is no
remuneration to the contractor for the ECI service (Laryea & Watermeyer, 2016) and this was seen as
one of the challenges in motivating contractors to get engaged in an ECI process.
Change in relationship protocol was described as an issue in transitioning from early stage of col-
laborating and open book into a traditional environment. What might have been appropriate beha-
viours and communication protocol in the early stage may no longer appropriate for the second
stage. This issue can be attributed to the lack of guidance available to navigate and manage the
change in relationship at the transitioning stage (Farrell & Sunindijo, 2020) coupled with the predo-
minant cynical attitude exists in the construction industry (Scheepbouwer & Humphries, 2011).
Cultural barrier was identified as the biggest challenge where the traditional hard dollar mentality
was being brought to the ECI front-end by contractors or the clients. As commented by one of the
respondents: ‘People who grew up in an environment that is adversarial or always has been adversarial,
find it difficult to transition into more of a relationship type of environment’. Generally, absence of trust,
prevailed in the culture of construction industry, impedes the development and nurture of collabora-
tive and open book relationship between the client and contractor which requires diligent efforts
from both sides to overcome this challenge (Farrell & Sunindijo, 2020).
Misusing the relationship by the contractor to avoid contractual commitments and obligations
repeatedly came to the light as it was perceived that this opportunistic advantage seeking behaviour
negatively affect the working relationship between the client and contractor. Zhang and Qian (2017)
argue that the contractor’s opportunism can cause project disputes that lead to time and cost over-
runs and reduce production efficiency.
Interestingly, it was asserted that the barrier to ECI was a strong leadership on the client side or
strong leadership on the contractor’s side in which an imbalanced leadership between the two
sides means that one side dominates the leadership. According to Cox and Thompson (1997), asym-
metrical leadership in a working relationship creates a position of supremacy upon which the other is
dependent and use this to gain advantage. Table 3 demonstrates the challenges in adoption of ECI
found in this study.
The first column represents the list of challenges identified in this study and the second columns
shows the number of respondents described that item (in both percentage and number format).
Amongst identified challenges, it is evident that cultural barrier, demonstrating value for money,
change in relationship protocol, and inadequacy of contractor remuneration for early stage engage-
ment, were experienced by the participants in the most of their ECI contracts.
In discussing opportunities of ECI, participants identified a large number of benefits that the use of
ECI could offer. Higher certainty in the price and scope was identified as one of the benefits of using
ECI as a result of joint risk management with the help of expertise and experience of the contractor.
The greater certainty and better understanding of the risks by engaging project participants have
positive influence on the working relationship during the delivery phase, enhance trust and reliability
and reduce mindreading and inaccurate assumptions between parties (Marinelli & Salopek, 2019;
Rahmani et al., 2016a).
It was indicated that the ECI process created a better opportunity to undertake value engineering
resulting least reworks during the delivery stage. The refined solution caused by the constructor over-
seeing the design led to a better value outcome (Song et al., 2009).
Defining standards jointly was identified as another benefit of using ECI when standards of the
project were not well defined and developed. It was emphasised that the involvement of the
same management team in the both design development and delivery phases was a great benefit
to develop and refine the standards. One respondent commented that ‘the benefit is definitely
having similar people involved in the ECI development, the design development phases, what you’re
doing in D&C delivery. I’m talking about at the senior management top level’.
Establishing better communication between the client and contractor in the early stage of project
was suggested as a significant benefit of ECI to the working relationship. This finding is generally con-
sistent with the view of Rahmani et al. (2016a) that the frequent interaction between client and con-
tractor in an ECI contract results in enhanced communication, better working relationships and
reducing risk of opportunism.
Majority of participants (n = 22) pointed out that the positive working relationship built during the
collaboration phase was the most noticeable benefit that the ECI process offered. The essence of col-
laboration generated during the first phase remained in the second phase even though the contrac-
tual environment changed to the hard-dollar type of contract. This relationship was characterised as
being open, honest and collaborative by which mutual trust and understanding prevail in the
working relationship between the parties. No secrecy and transparency incorporated in the relation-
ship, generated a no blame environment in which there was little time spent on commercial claims,
or disputes, that can be seen often in normal contracting methodology. As explained by a
respondent:
The principal is able to go to tender on a hard-money basis with so much less uncertainty in the job than they
normally would and so even you engage in what you may refer to as an adversarial-type delivery method, most of
the scope for disagreement has been taken away.
Constructability (n = 22) and innovation (n = 20) are two benefits of ECI that respondents confidently
discussed more than other benefits identified earlier. Except for three participants who had a
different view on the constructability considerations for the clients, the rest of participants stated
that constructability was significantly improved in their ECI projects as a result of all parties
working together to develop the design and planning. For those three participants, it was not
their concern how the contractor was to build the project. Rather, they focused on the project out-
comes ensuring the project objectives were met. One of the statements as an example was ‘the way
the contractor builds and fabricates the project in terms of constructability, that’s where their innovation
is. So, it is not what we focus on, instead we focus on saving money’. However, the rest of participants
emphasised the importance of constructability consideration during the project design. Since the
client, designers, and the constructors work together in the same office and review all the designs
and construction processes in ECI arrangements, the constructability is evaluated and considered.
Contractors generally have different insight into the project constrains and hence they can
propose a wide range of other solutions if the initial design was not in compliance with the
project objectives even though the integrated solutions in the design process may cause a slight
deviation from the original design (Song et al., 2009). It was perceived that the constructability
enhancement resulting from the contractor’s contribution to the design, reduces the risk of under-
taking designs in a way that some components of that design would not be able to be built as
they are designed. This can, therefore, significantly reduce the waste of design efforts and risk of
delay which helps the project to complete more economically. This is described as a result of
careful considerations of the safety issues during the design development and a smaller number
of claims by the contractor where some small changes in design in the construction stage can
make a big change in construction costs or time.
74 F. RAHMANI
In defining innovation, it was suggested that innovation was created by a collaborative link
between the designers and the constructors and the collaboration institutionalised in an ECI contract
allowed the contractor to propose innovative solutions to problems that were different to what nor-
mally were done, therefore the ECI, in the contractual sense, was set up to encourage innovation. One
of the respondents provided more details about their recently completed project that
In our [name of project], which was a [multi]million-dollar project, we put it out as an ECI. We had two design and
construct ECI proponents and both of them came up with very different scenarios to our reference design. Both of
their designs were better as opposed to our reference design and cheaper, so then the process was really good in
constructability, and the innovation was just fantastic.
ECI provides an opportunity for the contractor and designers, as well as the client to develop inno-
vative solutions that can add value to the project. Ironically, it was suggested that the competition in
the second phase of an ECI was the best vehicle for securing innovation because the proponents had
to demonstrate innovative solutions to win the job. ECI process requires the client to be ‘open to
negotiate’ about the innovative ideas but at the same time needs to be very clear about their expec-
tations. The importance of a formal innovation process for driving innovation was emphasised by a
few respondents:
You do need to have a sort of formal innovation process, rather than just expecting people to sit around and
come up with good ideas … you just have to use a structured approach … using a variety of different
methods of getting people together … the process of managing those innovations and scoring them and
working out which ones are worth pursuing and which ones aren’t, linking them all with sustainability and
that sort of thing.
Conclusion
It is generally accepted that the early acquisition of construction knowledge and experience improve
the project time, cost and performance. The development of ECI was based on this premise that the
involvement of the main contractor at the early stage of the project can bring significant benefits to
all parties engaged in the project.
The growing use of ECI in public project in Australia, triggered this study to explore the challenges
and opportunities of adoption of ECI. Since clients have great influence on the project outcomes
given that their financial status, characteristics, management competency and construction experi-
ence make significant contributions to project success, this paper focused on construction client
organisations as the context of this study. This could also be perceived as a limitation of this study
as the ECI involves the contractor at the early stage to create an integrated team that includes
client, consultant and contractor. Consequently, the results of this study are based on the client
ARCHITECTURAL ENGINEERING AND DESIGN MANAGEMENT 75
representatives’ point of views. Since the contractors and designers are also main components of a
construction project’s delivery team, there is a need for future research concentrating on contractor
and designer organisations.
The findings of this study enrich and extend the field beyond its current intellectual foundations
and connect it more closely to the challenges of contemporary project procurement management
practice. This article presents the application of ECI in the Australasian context and shows the oppor-
tunities and difficulties that state governments would face in adopting ECI as a delivery system.
The empirical findings of this study suggest a number of challenges and opportunities in imple-
menting a successful ECI that public client representatives could envisage through the experience
from their past projects delivered under ECI.
The enhancement in constructability, improving working relationship, greater certainty in price
and scope, and innovation are shown the major opportunities ECI can provide. In turn, cultural
barrier, demonstrating value for money, change in relationship protocol, and inadequacy of contrac-
tor remuneration for early stage engagement are reported as the challenges clients experience in uti-
lising ECI.
The use of ECI in the current structure for projects in the future is significantly dependent on the
outcomes of more projects once a greater number of ECI schemes have been completed. While the
growing maturity of the industry towards ECI would lead the decision-makers select this delivery
system with more knowledge, further studies are required to be carried in order to refine, improve
and extend the results of this study.
Disclosure statement
No potential conflict of interest was reported by the author(s).
ORCID
Farshid Rahmani http://orcid.org/0000-0002-2312-807X
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