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Fact Sheet
Find out all you need to know about key working practices within the construction industry. Our fact sheets are designed to keep you informed with the latest methods and procedures, which you can adopt to help enhance your business.
Fact Sheet
Case Studies
PARTNERING

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

A growing number of clients and design teams are using collaborative working to produce a best value product. This idea of ''best value'' is becoming increasingly important to a wide range of clients most noticeably in the public sector. Partnering can take many forms, from individual tailor-made agreements to recognised contracts such as the ECC Partnering Option and ICE Partnering Addendum, but all provide a means to better understanding and working to achieve ''best value''.

Partnering does require a change in the culture in which most people currently work and the constructive support from senior management across the parties is crucial. The failures of projects adopting partnering agreements arise from a lack of support and a breakdown in trust. Unless realistic and achievable goals are mutually agreed, there is no basis for partnering. The correct approach will, however, yield a mutual understanding leading to continuous improvement, improved efficiency and competitive advantage.

Construct Wales has identified that construction projects of any size, duration or cost can achieve benefits through partnering. The programme has the expertise to assist in the formation and running of project and strategic partnerships together with advice for their successful application.

 
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