Sea-change time

Partnering can mean many things. It can be a relationship between developer and “builder”, with all contractual relationships below this level based on competitive tendering, through to relationships along the supply chain, from the developer to the painter and decorator. One problem with partnering has always been the difficulty in agreeing on exactly what it is.

Even when applied to the whole supply chain, partnering will mean different things to the supplier at one end and the developer at the other. Each will have its own views and aspirations about what it can hope to gain from the process, which is why successful partnering requires total commitment from all the links in the chain and a shared attitude.

A client must be in no doubt about why it wants to partner and of the benefits it will bring to itself and the supply chain. A client must help to create, reinforce and believe in the process because it will have to drive the process and energise those with whom it partners. It needs to set the goals and targets, create a problem-solving structure, show a commitment to continuous improvement and create a mechanism to manage the risks and share rewards. It also needs to establish open lines of communication and a positive attitude.

Think like the client

Of course, the entire supply chain must think in the same way as the client. This develops the trust and openness necessary for partnering to be effective, and with it the move away from the adversarial, entrenched and self-preservatory attitudes that have too long dogged the industry. But never underestimate the commitment required to achieve this. Partnering calls for a sea change in attitude and practice, so there needs to be a strong emphasis on continuous training and the ongoing education of staff to secure buy-in at all levels. It should be seen as a philosophy that affects how people go about doing their jobs, not just a box-ticking process. This can only be built up over time.

One problem with partnering has always been the difficulty in agreeing on exactly what it is

Where partnering is effective, everybody in the supply chain stands to benefit. Work is negotiated not tendered. Value rather than lowest price is the priority. Contractors are invloved early on to ensure cost-effective design and the use of innovative, cost-effective techniques. Continuous improvement makes efficiency rise, allows risk to be managed and eliminates the dispute culture - and projects can be completed on time and to budget.

Compare this with typical competitive tendering. Here a design team works in isolation to produce tender information, a short and often highly fraught period for all concerned in which to price the works. Contractors fail to buy in to the design, and the tender analysis period is often painfully drawn out. The result is typically that the client selects the cheapest solution, and the contractors may exploit design omissions and ambiguities and rely on exclusions to minimise their tender price. Contractors also cut their overheads to unrealistic levels to secure the work.

The outcome of this process, which is reactive rather than proactive, is familiar. It leads to the project proceeding although the objectives of client and contractor are misaligned. The contractor has little or no commitment to the final cost of the project and commits a significant resource to reverse the loss situation. The client in turn commits a similar significant resource to contain the project costs. All parties adopt an adversarial approach to the project, which proceeds largely downhill.

This is why clients must ensure that partnering is a fundamental part of all construction projects and must engage the whole construction team in the process from the outset on the basis that fair pickings are to be had by all.

These are exciting times in construction; the next development upturn is already here. Varied projects exist that are all set for construction to begin, including the 2012 Olympics. Clearly those who stand to gain most from this are clients with the foresight to ensure they each have a team in place that they trust to deliver the work. Those clients who understand partnering and have already established their partnering credentials stand to gain most.