Partnering in projects and construction contracts

Partnering is a structured form of cooperation where the client, consultants, contractors and other key actors jointly solve the project or contract assignments. It is based on trusting and cooperation. Everyone’s cards are on the table, and all players complement each other throughout all stages of the construction process. Our customers are Luleå University of Technology and Luleå Railway Center (JVTC) and Skellefteå Municipality.

”Partnering is a managerial approach used by two or more organizations to achieve specific business objectives by maximizing the effectiveness of each participant’s resources. The approach is based on mutual objectives, an agreed method of problem resolution and active search for continuous measurable improvements” (Bennet and Jayes, 1995).

The left Figure 1 shows a traditional project contracting configuration and the left Figure shows a partnering configuration.

partnering-diagram

The partnering concept focuses on:

  •  Teaming together key personnel from the client, contractor and important subcontractors.
  •  Trust building.
  • Openness between the parties (transparency amongst the partners)

Partnering creates a win-win situation where increased efficiencies means contractor’s operating costs are lowered and savings can be passed on to the customer.
Partnering can contributed to a cost reduction between 5 and 30 % and time savings between 10 and 40 %.