How to Effectively Establish a Construction Partnering Agreement Construction partnering is a unique form of business partnership used primarily in the construction, architecture and engineering industry. Partnering is designed to help project teams effectively resolve conflicts, establishing realistic goals and improving project results. The primary goal of construction partnering relationships is to facilitate effective and smooth implementation of building projects by resolving existing issues between the project team members. The key to success in this process is the effective management of time, cost and resources. Below are some key areas where construction partnering relationships can benefit projects: - Conflict resolution: Good construction partnering relationships help resolve disputes by removing the often difficult chore of negotiation from the schedule of project teams. When disputes arise during or after the implementation of a project, they often occur at the time of the least possible notice. Good partner relationships allow time for the parties to find reasonable solutions rather than escalate to more complicated disputes that involve more involvement and expense. If the conflict cannot be resolved, both parties should agree to continue working together until the matter is resolved. - Expenses: A successful construction partnering relationship means that costs are shared between the contractor and the hiring company. In order to be successful, the contractor must be able to pay for all of the materials, labor and supplies that will be required for the completion of the project. When costs are shared between contractors, project managers can provide them accurate cost information to ensure that the construction projects are within budget and on schedule. In addition, construction partnering allows contractors to receive payment while they are working on the project. - Issue Resolution: In most construction partnering relationships, issues are resolved through collaborative efforts between the project team, the hiring firm and the general contractor. This collaborative effort builds trust, promotes open communication and helps prevent risk. Once issues are resolved, both parties can focus on building the relationship and increasing the likelihood that the relationship will last. - Project Delivery: One of the key factors that make a construction partnering relationship work is that it requires project delivery on time. Both the project manager and project stakeholders must be committed to making sure that the schedule and cost estimates are realistic. To make matters even more difficult, both sides need to have excellent communication with each other. The successful construction partnering relationship requires a system for project delivery where everyone involved knows what needs to be accomplished and how long it will take. - Design Team and Construction Team: When construction partnering occurs, the project team is composed of several different disciplines such as design professionals, laborers and subcontractors. They must work together to complete the design phase of the project, as
well as meet the delivery date and timeline. Once the project is on schedule and on budget, the design team may be combined with the construction team to complete the construction phase. A successful construction partnering agreement makes everyone involved highly committed to one another's needs and achieving the results desired. This makes the relationship between the design team, the construction team and the subcontractor or other team members strong, which helps avoid misunderstandings, miscommunication and disputes over the course of the project.