In one subcontract negotiation, the proposed terms were so one-sided that we eventually left the table – after long preparation and several rounds of discussion. If a fair working relationship cannot be established before signing, it is unlikely to improve when the project is under pressure.
Moving risk to a contractor or subcontractor does not make the risk disappear. The EPC still has to deliver the plant, and LDs rarely compensate for the full impact of delay, lost production, rework, or poor performance.
Of course, money matters to both sides. The Client wants the best possible result for the money spent. The Contractor wants to deliver efficiently and maximise margin.
But these interests do not have to create opposition. There is a wide band where both Parties can have their fruit, especially over the long term. Both sides benefit from clear scope, practical risk allocation, timely decisions, fewer changes, less rework, and an outcome that meets the requirements.
On one project I led, real progress started when the Contractor understood that our Owner-side comments were not criticism (for its own sake), but we aimed to improve the project they had committed to deliver. After that tipping point, discussions opened. Most problems surfaced earlier, decisions were made faster and solutions were found sooner. Cooperation became productive, and progress accelerated.
Good Owner involvement can add valuable technical judgement and deeper operational experience. Listening to such input does not weaken the Contractor – open cooperation produces better solutions.
You can win the contract negotiation and win the argument, but still lose heavily on the project.
When people stop defending their positions and start to focus on solutions together, all Parties in the same boat begin rowing in the same direction.
A fair contract and an open working relationship give both sides the best chance to deliver well and benefit from the result.