Long term relationships – partnering and alliancing

Abstract

Partnering is a relatively modern concept which is intended to provide a framework for the establishment of mutual objectives amongst the members of the construction team with the objectives of improving working relationships, encouraging the principle of continuous improvement and developing an agreed upon dispute resolution procedure. Partnering has grown out of the development of strategic alliances initiated by major construction clients in order to manage the supply chain of their projects. More recent reports have focused upon client needs and perceptions. Undoubtedly, both private and public sector clients have concluded that the construction industry needs to reflect the best practices of modern manufacturing industry to provide a satisfactory product. The most successful partnering arrangements to date have looked to integrate not only consultants and main contractors, but also key suppliers. The early creation of a team that includes all of the contractor’s supply chain requires recognition of the total project budget and the contractor’s level of profit and overheads.