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Develop Phase: Other Business Relationships - A second relationship continuum

5 important questions on Develop Phase: Other Business Relationships - A second relationship continuum

What is the purpose of looking beyond the structure of a a contractual relationship?

This is often helpful from a business perspective and can lead to better decision-making regarding the formalization of that relationship.

What are basic levels of business relationships?

Partnering
Project alliances
Strategic alliances

What is the description of Partnering?

By sharing management responsibilities through open communication and shared objectives is effectively when both parties have the same level of commitment. Having to define the commitment level in more detail can reduce this to a more traditional contract

What is the description of Project alliances?

rime-based approach for a particular project and ends after the project is completed. Based on a mutually shared risk-and-reward scenario for both parties. This requires open book accounting from both parties.

What is the description of Strategic alliances?

Similar to project alliances but for a much longer commitment, usually a number of years. A typical example would be a long-term outsourcing relationship that provides goods or services in exchange for a guaranteed cash flow.
The inherent benefit is that both parties will begin to understand each others requirements and can institute continuous improvements to increase profitable returns in the future.

The question on the page originate from the summary of the following study material:

Fundamentals of Contract and Commercial Management | 9789087537135 | International Association for Contract, et al

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