Partnering in the Team: A Report by Working Group 12 of the Construction Industry Board(CIB reports)

This report promotes the practice of partnering where appropriate in both private and public sectors by establishing best practice benchmarks, facilitating the widest dissemination of good practice, and ensuring the development of appropriate training and education packages. The working group for this guide was chaired by Charles Johnston from the Construction Clients Forum. Partnering includes the concepts of teamwork between supplier and client, and of total continuous improvement. It requires openness between the parties, ready acceptance of new ideas, trust and perceived mutual benefit...We are confident that partnering can bring significant benefits by improving quality and timeliness of completion whilst reducing costs. Sir Michael Latham, Constructing the Team,1 1994, quoting the Chartered Institute of Purchasing and Supply Partnering arrangements are also beneficial between firms...Such arrangements should have the principal objective of improving performance and reducing costs for clients. They should not become cozy . The construction process exists to satisfy the client. Good relationships based on mutual trust benefit clients. Sir Michael Latham, Constructing the Team, 1994 Background The last five years has seen an explosion of interest in the application of partnering to the construction industry following major successes in other industries and other countries. In July 1995 the Construction Industry Board set up its twelfth working group at the request of the Construction Clients Forum. This report is their output following a major literature search, a consultative workshop, and formal consultation amongst the CIB's member bodies. It develops and illustrates Sir Michael Lathams views of partnering whilst setting out to quash a few myths about the subject. Introduction Partnering is a structured management approach to facilitate teamworking across contractual boundaries. Its fundamental components are formalised mutual objectives, agreed problem resolution methods, and an active search for continuous measurable improvements. It should not be confused with other good project management practice, or with long-standing relationships, negotiated contracts or preferred supplier arrangements, all of which lack the structure and objective measures that must support a partnering relationship. The critical success factor for partnering is the commitment of all partners at all levels to make the project a success. The result is that the partnering agreement drives the relationship between parties rather than the contract document. Purpose The purpose of this report is to promote the uptake of good practice in partnering between client and supplier at any point in the supply chain. However it is acknowledged that the extension of partnering down through the supply chain is in its infancy, and the CIB looks forward to examples of success in the future as this is critical for the overall success of construction projects for the client. Readership The report should be read by all construction professionals, clients and their advisers as an introduction to the key principles that distinguish true partnering from other forms of co-operative working practices. Further guidance The report provides a guide to the disciplined framework of partnering, and describes five good examples which were on site at the end of 1996. It is not a code of practice, as there is insufficient experience of its application in construction to date. Neither does it provide detailed step-by-step guidance at the working level, because the working group identified two other reports well suited for this purpose: the Reading Construction Forum's Trusting the Team, 2 and the European Construction Institute's Partnering in the public sector, 3 endorsed by HM Treasury, DOE, the National Audit Office and the Audit Commission. This latter report is significant as it demonstrates how partnering should be applied to projects after award of contract - hence complying with the EC and UK regulations for public sector procurement. The challenge now for UK construction - clients, private and public sector, consultants, contractors, specialists and suppliers, whether as individuals or companies - is to work together to understand and realise the benefits of partnering while managing the pitfalls. The CIB will support this activity by identifying good examples of partnering and ensuring the commercial benefits to all parties are widely promulgated.

Table of Contents:
* Introduction and executive summary * The basics of partnering * Best practice * The reported benefits of partnering * Case studies of partnering in practice * Partnering for a new office development * Partnering for a corporate head office development * Partnering for a waste water treatment scheme * Partnering for a term maintenance contract * Partnering for a new highways project