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Partnering
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Partnering
• The West’s response to Japan’s greater efficiency in major manufacturing industries
• Japan’s approach is based on cooperative, long term relationships
• Partnering in construction concentrates on establishing effective relationships
• It achieves high efficiency by everyone cooperating to achieve agreed objectives
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Partnering
• Provides sets of actions which help construction project organizations adopt cooperative ways of working which deliver improved efficiency
• As initial actions are effective, further sets of actions build ever greater cooperation and efficiency
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Project Partnering
• The most basic form of partnering
• Provides a set of actions designed to be applied to an individual project
• Suitable for people new to partnering
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First Partnering Workshop
• Agrees mutual objectives
• Agrees decision making system
• Agrees a specific, measurable performance improvement
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Decision Making System
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First Partnering Workshop
Decision-Making
Performance Improvement
PARTNERING
Mutual Objectives
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Partnering Workshops
• At key stages in project• Review progress• Ensure mutual objectives and
performance improvement are achieved• Consider adopting more challenging
objectives and improvements• Solve all persistent problems
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Development of Effective Teams
Cautious exploration
Listening and understanding
Mutual objectives and agreed Decision-Making
Cooperative teamwork
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Strategic Partnering
A group of companies partnering on a series of projects
To achieve greater benefits than those delivered by project partnering
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Seven Pillars of Partnering
Performance improvement
Integration
Project processes
Strategy Feedback
Membership
Equity
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Strategy
• The kind of buildings or infrastructure to be constructed
• The standard of their products and the technologies to be used
• Services to be provided for customers• Plans for performance improvements• Clear and fair financial plans• Flexibility to cope with change
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Membership
• Evaluate companies technological skills• Check business characteristics include
cooperative attitudes• Aim for strengths which compliment rather
than duplicate each other • Potential for performance improvements• Potential to develop new ideas
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Equity
• Financial arrangements encourage long-term developments aimed at improved joint performance
• Fair distribution of costs and profits• Reliable sources of finance• Problems seen as opportunities• Decisions based on long-term interests of all
the companies
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Integration
• Agree how the companies will work together• Strategic team provides leadership and
makes strategic decisions• Aim to act as a single organization• Well integrated information and
communication systems• Well organized meetings• Interface teams for key activities
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Project Processes
• Projects supported by standardised actions, processes and technologies
• Project organizations assembled quickly• Construction teams work virtually
automatically• Relentless search for best practice based on
feedback• Flexible enough to deal with difficult problems
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Performance Improvement
• Continuous measurable improvements in performance
• Benchmarks based on industry norms for all key aspects of performance
• Major steps forward driven by task forces
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Feedback
• Strategic feedback• Individual company feedback• Project organization feedback• Construction team feedback• Formal systems to collect and act on
feedback
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Internal Partnering
• Companies change internal organization to support partnering
• Led by internal partnering team of senior managers
• Encourage the use of partnering on new projects
• Support construction teams in using cooperative behaviour
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Strategic Collaborative Working
• A group of companies cooperate to develop a long-term business
• Formal agreement to develop a product and supporting services
• Led by strategic team of senior managers from all the companies
• Set and meet tough targets
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Strategic Collaborative WorkingWorking Organization
Internal Partnering
Team
Internal Partnering
Team
Project Team
Task Force
Strategic Team
Task Force
Project Team
Interface Team
Interface Team
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Partnering Performance
Cost reduction Time reduction Project partnering 30% 40% Strategic partnering 40% 50% Strategic collaborative working 50% 80%
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Efficient Partneringacts on the following propositions
• Reduce the number of teams involved• Improve the quality of relationships• Reduce performance variability• Reduce external interference
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Efficient Partneringacts on the following propositions
• Select teams competent in the technologies required by the project
• Ensure teams accept the agreed objectives• Ensure teams are motivated to achieve agreed
objectives• Foster accurate communications between
teams• Minimise the effort needed to achieve
accurate communications between teams
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Efficient Partneringacts on the following propositions
• Minimise the length and intensity of negotiations over the transactions which bring teams into the project organization
• Ensure teams regard the transactions as advantageous to themselves
• Minimise the resources teams devote to improving the terms of the transactions which brought them into the project organization
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Project using Partnering
The project is to construct a new hotel on a virgin site. The hotel has 300 guest rooms
and the other spaces expected in a 5* hotel
The building is 10 stories high with a steel structural frame, concrete beam floors and
roofs, and high quality, pre-fabricated external cladding.
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Teams Team-daysBrief 1 80Design 14 460Plan 2 100Procurement 9 270Manufacturing 10 200Production 40 2250Commissioning 4 140TOTALS 80 3500
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For a project with 80 teams (N=80)
Possible relationships = 80 x 79/2 = 3160
2038 of these do not occur
Actual relationships 3160 - 2038= 1122
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Largest number of teams in one time interval is 23 in 21st time interval
They are constructing theservice cores, risers and main plant, the main
entrance and vertical circulation
The work is supervised by design and construction management teams
34 x 33/2 = 253 possible relationships
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During the 21st time interval the following teams work simultaneously
2 out of 4 plan and control teams3 out of 4 service core teams
4 out of 4 risers and main plant teams6 out of 8 entrance and vertical circulation teams1 out of 1 contracts and payment systems teams
2 out of 2 designer and construction manager’s supervision teams
This gives a total of 18 teams with 153 relationships
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Established Relationships
Every team on a project has established relationships with at least one but often several other teams giving a total of 1023 established
relationships
Established Relationships Indicator ER=1023/1122=0.91
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The relationship fluctuation indicator FE = 0.86
This reflects a strong influence of established relationships throughout the project because
both ER and FE are comparatively high
Partnering aims to build on and further enhance established relationships between
project partners
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Relationship Quality Indicator for established relationships ranges from 0.70 to 0.98
Total Relationship Quality Indicator 958/1122=0.85
The high number of established relationships together with the number of high values for
individual Relationship Quality Indicators means the total Relationship Quality Indicator is
good because there are only 99 boundary relationships in this project out of possible 1122
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The project organisation is not overly complex There are 31 time intervals out of a potential
maximum of 159
The intervals are relatively short in comparison to total project duration (prevent escalation
of problems when teams interact for a prolonged period)
Relationships configuration complexity indicator = 0.85
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The past performance of the 80 teams over their previous 10 projects provides team Performance Variability Indicators which
range from 0.65 to 1.0
Performance Variability Indicator Rp=0.89
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Historical records for projects using Partnering gives
External Interference Indicator = 0.74
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Established Relationships ER=0.91
Relationship Fluctuation FE=0.86
Relationship Quality QR=0.85
Relationship Configuration CR=0.85
Performance Variability Rp=0.89
External Interference I=0.74
Project using Partnering