Partnering - Construction Project Management

Partnering offers a new paradigm for building owner and construction industry relations. Adopting a partnering approach, all parties agree from the beginning, in a formal structure to focus on creative cooperation and teamwork in order to avoid adversarial confrontation. Working relationships are carefully and deliberately built, based on mutual respect, trust and integrity. There is certainly sufficient empirical data to support the following ascertions:-

Partnering can provide the basis for participants to re-orient themselves towards a "win-win" approach to
problem solving and can foster synergistic team work.

Partnering represents a proven approach to construction management and project control.

For those in the business and governmental community that have had problems with construction projects, including delays, litigation, cost overruns and excessive change orders, the partnering approach may seem like a theory that can not withstand the reality of the job site. (Bearing in mind that those within the scientific community will jump to tell you that if the practice does not work... the theory is wrong) However, recent developments in the partnering process combined with a more widely accepted use of this quality construction management system, have vaulted partnering into the forefront of construction project management. Progressive general contractors throughout the United States and Britian have successfully used the partnering management tool for projects of all types and sizes.

How does partnering actually work?

Usually a 1 to 3 day session(s) that involves all the key players, including the main contractor, sub contractors and professional consultants meeting together as the starting point for the partnering process. Three core principles undergird the parternering relationship:

commitment, communication and conflict resolution.

During the partnering workshop, a project charter is developed,*1 value engineering mechanisms are designed, conflict resolution procedures are created and potential problems are discussed prior to construction beginning on the site. It is clear that there are those who consider it absolutely essential that an experienced partnering facilitator is engaged for the process. Once the partnering session is completed, a partnering coordinator is given the responsibility to keep the partnering on track and champion the process through to the successful completion of the project. While partnering may not resolve all the problems encountered in the construction process, it does create a framework for conflict resolution, improved communications, reduced litigation and cost containment on potential overruns. The investment in partnering is worthwhile when comparing it to the potential of increased costs and delays when the partnering process is not used. While every construction project is a challenge, the construction industry now has a project management tool to overcome the traditional obstacles that can adversely impact a successful construction project.

*1

See attached example of what can be generated

By Brett K. Jamieson

Partnering Agreements & Charters

Partnering Charter
Charter: We, .............................................., are committed to Partnering through the construction, administration and completion of this Project on time and within budget. We agree to make our best efforts to achieve the goals listed below, and believe that these goals reflect our intentions and commitment to the performance of this project as a team.

GOALS
1. Accident-free job site. 2. Resolve all safety issues immediately. 3. No more than two percent cost growth. 4. Complete all contract phases ahead of schedule, including punch-list. 5. By .............................. (date), define in writing, roles and communication lines for the partnering arrangement. 6. Execute necessary contract changes without delaying the project. 7. Foster a positive job environment. 8. No repeats on notices of deficiencies. 9. Participation of all appropriate team members in the quality control program. 10. Avoid litigation by: Addressing issues and working them out as a team before they become differences. Resolving differences through negotiation. If all other methods fail, obtain a disinterested third party arbitrator's opinion.

11. Build a project of which we can all be proud. 12. Submittal and evaluation of all submittals to avoid delaying project progress. 13. Empower joint problem resolution at the lowest possible level. 14. Foster new ways of doing business.

By Brett K. Jamieson

MISSION The .......................team is committed to providing a quality ........................to ......................................that meets requirements as defined in the contract, on schedule and within the contract budget. This will be accomplished through establishing and working within a cooperative relationship among team members to achieve the following program goals: Deliver on or ahead of schedules Produce a quality project that meets or exceeds performance specifications Reach timely resolution of all issues Achieve zero claims Complete testing successfully Perform within contract cost Use cooperative teams to ensure timely placement of production contract Develop and maintain positive working relationships among all stakeholders Constantly seek product improvement

By Brett K. Jamieson

PARTNERING AGREEMENT between ................................. and ............................. for CONTRACT BETWEEN ............................ AND ............................. I. We, .................... and the Contractor 's team personnel dedicated to ............................, are committed to a positive utilization of partnering in the performance and administration of this project. We believe that through partnering we will be able to provide a dependable, quality project completed on time and within budget. We will work as a team to build action plans, to break down communication barriers, resolve conflicts at the lowest possible level, to streamline the paperwork process, and build a team spirit to achieve maximum success for all: a quality product that meets all the ........................... requirements, on time delivery, within budget, and with a fair profit for the contractor.

II. We are committed to open communications, joint problem solving and teamwork to accomplish all the goals and objectives of the .......................contract to include: a. Adopt a total team approach resulting in an outstanding project team performance. b. Encouraging information sharing at all levels. All team members will stress the importance of a timely, positive and ongoing communications. c. Produce high quality cost effective, reliable units. d. Team members will use The Alternative Dispute Resolution process [to be described in the attached "Partnering Infrastructure"] to the maximum extent feasible to reduce and/or eliminate the need for litigation. e. Encourage all team members to respond swiftly to concerns, deadlines and requests. f. Achieve and complete all milestones on or ahead of schedule.

g. Successfully complete the project within budget. h. Each party shall bear their own costs associated with effectuating this partnering effort. There will be no change in the contract price as a result of this partnering effort. i. j. The Team process action teams will report regularly to the Management Working Group. If the team determines that it will be useful in advancing the goals of this agreement, partnering workshops may be held to help improve communications and the team efforts. Each party will bear their own costs of participating in these workshops.

k. We believe that this partnering statement will encourage synergy, pride in performance and quality workmanship leading to a showcase project and outstanding project performance.

By Brett K. Jamieson

l.

Our goals will be achieved through a commitment to teamwork and partnering characterized by mutual trust, responsiveness, flexibility and open communications. To accomplish these goals we commit to project decision-making at the lowest possible level within the team infrastructure.

m. To facilitate the implementation of the goals set forth in this Agreement, the organizational structure set forth at Attachment 1 is established. n. This Agreement does not create any legally enforceable rights or duties. Any changes to the contract must be made by the contracting officer under the terms of the written contract. Any changes to the subcontract between .................. and .......................must be made by ........................'s Subcontracts Manager under the terms of the written subcontract. Rather, the Partnering concept is a team relationship that promotes the achievement of mutually beneficial goals.

By Brett K. Jamieson

Alternative Partnering Agreement 1. We, ........................ and ...................................., dedicated to ........................................., are committed to a positive utilization of partnering in the performance and administration of this contract. We believe that through partnering we will be able to provide a dependable, reliable, quality product completed on time and with a fair profit for Raytheon. We will work as a team to build action plans, breakdown communications barriers, resolve conflicts at the lowest level possible and build team spirit to achieve the maximum success. Performance Goals: Soldier Satisfaction Quality Work On Time Delivery Successful IOT&E Re-engineer Administrative processes for cost saving Communications Goals: Timely resolution of conflicts Effective and Timely communications Minimize oversight Resolve issues at lowest level Validate Partnering Effectiveness

2. This agreement does not create any legally enforceable rights or duties. Any changes to the contract must be made by the contracting parties under the terms of the written contract. The Partnering concept is a team relationship that promotes the achievement of mutually beneficial goals.

By Brett K. Jamieson