Comparative Analysis of Collaborative Standard Form Construction Contracts Common in the Healthcare Industry

Abstract

Construction contracts form a mutual agreement between entities that dictate specific conditions for project delivery. The following research analyzes the content of standard form contracts typical for commercial construction in the healthcare industry to assess contract alignment with industry-accepted performance indicators. The research includes a content analysis of industry-standard form contracts and highlights differences across delivery methods with a focus on the effort needed to achieve project collaboration. Distinct standard form contract templates in addition to executed contracts common to the healthcare construction industry were reviewed. Findings suggest that standard-form contracts place a higher level of importance on issues related to cost and schedule over those related to quality and collaborative effort. This study contributes to the industry by showing that collaborative contract types do not necessarily show an increase of terms associated with collaboration, effort, and quality over more traditional contract types. Content analysis can be a valuable tool for reviewing standard form contracts commonly used in the healthcare design and construction industry. By analyzing the language used in contracts, project staff can identify patterns and trends that inform better alignment with expected project outcomes. This may be achieved by specifying key performance indicators (KPIs) and ensuring that their distribution is commensurate with project goals. Additionally, content analysis may reduce the time spent creating and negotiating contract language by quantifying the keyword content of contracts. This can lead to more efficient and effective contract development processes, ultimately benefiting all parties involved in the project.