ABSTRACT
The paper explores the nature of project complexity as it relates to the selection of contracting strategies. Inspired by contemporary thoughts (chaos theory, social systems theory and post-modernistic philosophy), complexity is viewed as a continuum increasing from state order (determinism) towards state disorder (chaos). A number of possible project tracks (planned and/or actual) may be plotted in a complexity-time space. The paper focuses on three such tracks representing alternative families of project strategies. Type A is the well known and well explored owner driven risk reduction lump sum bidding family of project strategies. Type B was put on the agenda in the 90’s by cost reduction initiatives in the oil industries in the UK and Norway. Type C family of strategies has been suggested recently by the European Institute of Advanced Project and Contract Management (Epci). As opposed to type A, type B and in particular type C family of strategies exploit the value of uncertainty and indeterminism. The paper concludes that implementing strategies on complex projects to produce extraordinary results certainly extends beyond lump sum contracting and other well known strategies.
