Formal and informal contracting with the competitive dialogue procedure

Recent developments in the construction industry led to the need for both more and changing formal contractual arrangements and for improved informal cooperation. In this context, the Competitive Dialogue (CD) was introduced by the European Commission in 2004. This procurement method consists of several discussion rounds between the principal and potential suppliers, during which all aspects of the tender can be discussed. The CD procedure aims to align complex demands of principals with possible solutions that contractors have to offer. It is, however, unclear how formal and informal structures and processes in the CD are interrelated and are determining its effectiveness. Major question is how processes and products differ between CD-procured projects and comparable projects which are traditionally procured. Insights of both formal and informal contracting processes are combined in a theoretical framework. Differences in (in)formal process and contract development between projects procured by the CD procedure and by traditional procurement procedures are studied in four comparable construction projects.