Joining Construction partnering may Forces offer a solution Can anything be done to address increasing costs, staff shortages, and escalating concerns about safety and the environment without break- to help ease ing the bank? In a word, yes. Construction partnering can provide all of these benefits and more – and it’s not difficult to do. the problems in Construction partnering is a commitment amongst the owner, consult- Alberta’s frenzied ing engineer and/or architect, and the contractor to improve communica- tion and avoid disputes by working together toward common goals and construction objectives, generally on a project-specific basis. Partnering builds goodwill and trust, encourages open communication, industry and helps the parties eliminate surprises and adversarial relationships. It enables the parties to anticipate and resolve problems, and avoid or mini- By Allan Lowe mize disputes through informal conflict management procedures. Part- nering is often referred to as dispute prevention. Construction partnering is not intended to be an extension of the legal relationship between the parties that is formed by the contract and speci- fications for a project. However, the partnering process and philosophies establish working and communication relationships. In 1996, the Construction Industry Institute (CII), based at the Univer- sity of Texas in Austin, researched nearly 300 projects that were completed
OPENMIND SPRING 2008 15 Joining Forces
Project Partnering: Degree of Success
High
Low
Meeting Cost technical satisfying avoiding satisfaction overall Schedule Control performance customer litigation project results needs team
Success Criteria Larson, Erik: Project Contractual Relationships - Construction Partnering: Results of Study of 280 Construction Projects, Journal Adversarial Guarded Adversarial Informal Partners Formal Partners of Management in Engineering, March April, 1995 using the partnering approach and found every researched category. In addition, and many other factors. Evaluation tools are significant benefits. Total project costs the relationship between partnering and available to evaluate the potential benefits of were reduced by 10 per cent, overall project project success was not affected by whether partnering on any construction project. completion time was reduced by 20 per the contract was awarded on a low-bid or Partnering can be effective on projects cent, and lost-time accidents were 1/83rd of non-low-bid (i.e., negotiated) basis. industry standard. Schedule changes were Closer to home, the southeast leg of What is Partnering? 48 per cent less, and the number of claims the Anthony Henday Drive Ring Road in was reduced by 83 per cent. Change orders Edmonton, a $493-million project, was Partnering is: were also reduced by 80 per cent due to the recently completed using formal partner- • Working together instead of against use of a partnering approach. At the same ing for PCL Construction Management each other time, profitability increased by 25 per cent, Inc.’s internal construction team and an • A process for relationship building and job satisfaction was up by 30 per cent. informal partnering approach with PCL’s • A philosophy of teamwork Erik Larson, professor of project man- client and other external stakeholders. and understanding the other agement at Oregon State University, Steve King, project manager for PCL, parties’ needs conducted a 1994 study on the effects of says, “This project came in on time and on • A commitment to cooperate and communicate construction partnering on 280 construc- budget, and there is no doubt in my mind tion projects (see above). The study com- that this would not have happened with- • An attitude of goodwill and trust pared the effectiveness of controlling costs, out using the partnering approach. It really • Sharing risks with a “win-win-win” attitude schedule, technical performance, customer works, if people work at it.” satisfaction, avoiding litigation, and project Almost any construction project can Partnering isn’t: team satisfaction rates under four different benefit from using the partnering process. • Relaxing contract terms approaches to managing the owner-con- However, the benefits of formally partner- • Circumventing the processes tractor relationship: adversarial, guarded ing on a construction project increase with • Expecting extra work for free adversarial, informal partnering, and for- the project’s increased risk. The risk can be • An excuse for poor performance mal partnering. The results showed formal evaluated in terms of design and construc- • A cure-all partnering on projects produced superior tion complexity, the numbers of major • Easy to achieve results to all of the other approaches in stakeholders involved, budget constraints,
16 OPENMIND SPRING 2008 of any size – while smaller developments that are underway but still may involve smaller numbers, there may be experiencing difficulties. increased risk because there is also less mar- Depending upon the stage gin for costs caused by low efficiency and of the project and the needs other problems. of the team, construction The northwest extension of the Calgary partnering can be utilized at Light Rail Transit system is also using a different stages of a project partnering approach. “Our firm is respon- and may not even be project- sible for the construction of the Crowfoot specific. Station, a $14-million project,” says Greg Beck, a principal of The LeBlond Partner- Once a decision has been ship - Architects and Planners. “We’ve used made to partner on a con- the partnering approach on this project, as struction project, a partner- we have on previous projects with this con- ing facilitator typically tractor, and there is no doubt that it is a very starts by conducting inter- effective approach to construction.” views with key stakeholders from all main The northern extension of the There are several different types of con- parties. A partnering program specific to the Calgary LRT is being constructed struction partnering. Collaboration can project is then designed, followed by a part- using a partnership approach occur prior to the project start-up, or within nering workshop. Partnering philosophies the first few weeks of development. With and tools are used throughout the project, internal partnering, individual organiza- and the partnership is maintained using tions can address their own issues, concerns follow-up processes and tools. Additional and also the identification of roles within partnering workshops may be held at key their own organizations. A further form of project stages, depending on the complex- collaboration, described as design partner- ity and length of the project. ing, occurs among the owner, designer, and These workshops provide an oppor- contractor representatives. tunity for the teams to get together, away Partnering can also occur for projects from the jobsite, very early in the project.
ROAD TO SUCCESS: Thanks to a partnering approach, the $493-million Anthony Henday Drive Ring Road was completed on time and on budget
OPENMIND SPRING 2008 17 Joining Forces
the project’s chances for success. several factors improve the effectiveness of Online surveys Typical items covered in the workshop partnering on a project. provide feedback to include: an overview of partnering, the Commitment to the partnering princi- project organization and lines of communi- ples and processes by all parties, including keep partnership goals cation, a vision for success, goals, key expec- senior management, is essential. The ear- on track throughout tations and the needs of each stakeholder lier partnering is instituted on a project, the group and potential project challenges. greater the success rate. Diligent use of the the project. Attendees learn to identify celebrations throughout the Partnership Projects All project personnel with decision-mak- life of the project and select Infrastructure ing authority should attend. Learning the partnering champions from • Deerfoot Trail Extension issues and concerns of all parties early on each major stakeholder pays dividends throughout the project. group. Also the develop- • Stoney Trail NW Consideration should be given to inviting ments of the following items • Anthony Henday Drive Ring Road – southeast leg owner representatives, consulting engineer/ are covered: strategies and • Highway 63: 10 & 11 Twinning Project architect/design firm representatives, con- action plans to address key (near Fort McMurray) tractors, key sub-contractors and suppliers, challenges, an issue resolu- • James MacDonald Bridge Rehabilitation municipal representatives, and environment tion process, partnering fol- • Macleod Trail/Shawnessy Boulevard Interchange and safety officials. low-up tools and methods, Buildings The items covered in a workshop are key and the partnering charter. • Crowfoot Library to the success of partnering on each project. Holding a partnering • Valley Square Recreation Center The sessions are very interactive, and the workshop for a project does • Signal Hill Fire/EMS Station items covered and the processes involved, not automatically guarantee • Bearspaw/Glenmore Water Treatment Plant Upgrades while not complicated, greatly enhance success. Research shows that
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000.InnovRehab_1-4S_nBL.indd 1 3/4/08 11:32:00000.Loblaw_1-4S_nBL.indd AM 1 2/22/08 1:58:19 PM tools developed in the workshop, including an excellent tool.” the issue resolution process and follow-up At the completion of a project, a review processes and tools, contribute greatly to of partnering and the project’s success is success. Frequent measurement and fol- conducted, as well as identifying potential low-up is key to partnering success. And, improvements for future projects. finally, partnering is hard work – the work As Brian Pearse, vice-president of Stew- must be done, and the team must celebrate art, Weir & Co. Ltd. and president of the successes, often. Consulting Engineers of Alberta, says, The initial partnering workshop gives “Construction partnering really isn’t new – the project an excellent kick-start. How- it is just using a process to get us back to ever, once the workshop is done and the where we used to be with a good handshake project is underway, it is easy to lose the and the commitment to work together. benefits gained from the partnering work- Partnering isn’t easy, but if the parties put shop. A monthly online partnering team in the effort, it works.” survey is an effective way to avoid this. Participant feedback is gathered on the Brian Pearse, vice-president, About Allan Lowe & Associates Inc. Stewart, Weir & Co. Ltd. achievement of the goals and strategies Allan Lowe, MBA, B.Comm., C.E.T., is president identified in the workshop for the project’s really keep the partnership at the fore- of Allan Lowe & Associates Inc., and offers com- success. The team is then provided with a front,” says Nino De Laurentiis, southern plete construction partnering and follow-up summary report of the feedback to use in region construction manager for Alberta services. In addition to construction partnering, making adjustments to ensure the part- Infrastructure and Transportation. “We Allan Lowe & Associates services include facili- nership goals from the workshop continue review them every month, and the anony- tated planning, meeting facilitation, and organ- throughout the life of the project. mous feedback really helps to keep the izational improvements. For more information, “We’ve found that these online surveys partnering commitments on track. It is visit www.allanlowe.com.
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