PARTNERING REPORT

Partnering Report

Word Count = 1967(does not include Cover page, Abstract, Table of Contents and Bibliography)

Abstract

It is important for parties in a project to work together and create an environment for growth and success. Construction partnering is often viewed as a commitment between the owner, consulting engineer and/or architect, and the contractor(s) to improve communications and avoid disputes by working together towards shared and common goals and objectives on a project specific basis (Allan Lowe and Associates Inc. 2011).

This report describes partnering and explores key areas surrounding it. It looks at framework contracting and if/how the two concepts complement each in construction. Furthermore, it looks at the differences between project, strategic partnering and discusses various strengths and weaknesses. Additionally it discusses the strengths and weaknesses of different types of collaborative contracts, and the problems that may be experienced when using them; especially regarding interpretation of clauses.

Table of Contents

Abstract2

Introduction4

Partnering and Framework Contracting4

Project & Strategic Partnering7

Advantages and Disadvantages of Partnering8

Key Benefits of Partnering8

Disadvantages of Partnering9

Partnering Contracts9

JCT 05 Constructing Excellence10

PPC 2000 (Amended 2008)11

The Nec3 Partnering Option X12 (Ice)11

Conclusion12

Bibliography13

Partnering Report

Introduction

This report has been written to explain partnering in the construction industry. Partnering contracts help legitimise relationships, although, each has its own strengths and weaknesses and each is highly adaptable. There are differences in the way that each contract is applied and in the terms and conditions provided within the contract.

The information is intended to help prospective companies understand the different aspects of partnering and to understand some of the benefits. And how it can help build goodwill and trust, encourage open communication, and help the companies eliminate surprises and adversarial relationships. The report also identifies some of the recent partnering contracts in use today and discusses the problems surrounding using them.

Partnering and Framework Contracting

The UK Construction Industry has attracted considerable criticism for failing to meet the needs of its clients. Many theorists see partnering as the answer to the industry's problems.

Partnering however has been used within the construction industry since the 1990's but it was the publication of Sir Michael Latham's report 'Constructing the team' which led to the consideration of its benefits.

Partnering is often seen as a collaborative approach that benefits all parties involved, while focusing on the needs of the customer and although there is not one agreed definition, one a number of authoritative definitions of partnering comes from Bennett & Jayes, 1998.

“Partnering is a management approach used by two or more organisations to achieve specific business objectives by maximising the effectiveness of each participant's resources. It requires that the parties work together in an open and trusting relationship based on mutual objectives, an agreed method of problem resolution and an active search for continuous measurable improvements."

In the right circumstances the rewards of partnering can be substantial as it looks at lowering costs, greater quality control, eliminating any unforeseen problems and very importantly finishing the project on time and within budget.

Partnering incorporates individuals at every level of the project, promoting good communication and feedback systems to obtain a greater ...