It is widely recognised that the construction industry is based on an adversarial approach to working and this does not necessarily deliver the best value to clients, contractors or suppliers. Like most good ideas, the concept of partnering is simple: more can be achieved by co-operating than by being adversarial. The team approach aims at increasing trust that in turn drives down costs, encourages innovation and improves the quality of services.
Partnering promotes improved performance through collaborative business relationships based on best value rather than lowest cost. Contracts are still based on competition but are judged on a combination of quality and cost. The development of openness and trust, either on a project specific basis or, over a longer-term strategic period benefits all parties involved. Partnering focuses on the needs of the customer and, in the right circumstances, can yield substantial rewards. Studies have shown that project partnering can achieve savings of 2-10% of the cost of construction of individual projects, with longer-term strategic alliances yielding savings of up to 30%.
The reduction of cost is not the only reward from partnering. Associated benefits include;
• Shorter overall programme time
• Better predictability of time and cost
• Increased client satisfaction
• Better profit margins for contractors and suppliers
• Greater understanding
• Better value
• Improved buildability and reduced maintenance requirements through early involvement of contractors