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PARTNERING
This fact sheet provides construction
professionals, clients and their advisers with a
basic introduction to partnering and details of
where to obtain further information and guidance
on the subject. Its content is based on the CIB’s
guide Partnering in the team.
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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.
Partnering 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 (which can often be
written on as little as one sheet of paper), rather
than the contract document, drives the
relationship between the parties.
Partnering is NOT a new buzz word. It is also
NOT:
„ a new form of contract - it is a procedure for
making relationships work better
„ a soft option
„ a quick fix for a weak business - strong
players make each other stronger, weak
ones destroy each other
„ only about systems and methods - it is about
people, enabling them to operate more
effectively and efficiently.
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Partnering is only appropriate between
organisations who share the fundamental belief
that people are honest, want to do things which
are valued, and are motivated by challenge.
Such organisations trust their people and seek
ways to enable them to add value to their
business. Utilising this approach enables
organisations to set up mutually advantageous
commercial arrangements, either for single
projects or in long term strategic relationships
which help people to work together more
effectively.
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The benefits are generally cumulative, in that
strategic alliances produce significantly more
advantage than single project arrangements.
The benefits are significantly greater if partnering
is applied throughout the supply chain, rather
than simply between clients and main
contractors. It is acknowledged that the
extension of partnering down through the supply
chain, is still in its infancy. However, examples
are beginning to emerge. The challenge now
facing all participants is to understand what true
partnering means, how it can benefit all
concerned, and how to encourage its use on
appropriate projects.
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It is acknowledged that partnering is not an
appropriate procurement strategy for all
construction projects or programmes. When
considering partnering arrangements, parties
should seek by discussion to identify sources of
risk and then to establish who can best assess
and manage the quantum of risk. Partnering
succeeds best, and repays the initial investment
of resources, where
„ the client’s procurement strategy accepts
that the project or programme is high value
and high risk
„ the contractor’s interest is fuelled. by the
prospect of a high value/high attractiveness
account, core to their business
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The following basic features characterise a
partnering arrangement
 Each will produce a list of, say, a dozen
items, comparison of which is likely to
Mutual reveal at least a few common objectives.
Objectives The following list provides some examples
of how the mutual objectives can then be
addressed:
PARTNERING
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Problem Continuous Improved efficiency..........…....Co-operation

Resolution Improvement

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Cost reduction…...Continuous improvement
- agreed and committed to at the outset
Early action
of the project
- kept under review through meetings Cost certainty.....….............on danger areas
and effective communications
- requires long term goals - sustained Buildability,
reasonable profitability rather than quick Enhanced value.…...........value engineering
killing
- benefits from open book relationships Reasonable profits…...Predictable progress
- treated with mutual confidentiality
which results in working for each other’s Reliable product
success
- best between businesses with similar
quality...............…...Quality assurance/TQM
cultures and styles
Fast construction…...No avoidable hold-ups
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- a systematic approach to problem Certain completion
resolution on time......…...…...Critical path programme
- seeking solutions, not parties to blame
- more and better discussion - less Continuity of
paperwork, more constructive workload..............….Effective programming
correspondence
- based on win-win solutions Shared risks....................…Sensibly agreed
- equality of rights between parties
- requires mutual acceptance of the
principle that adversarial attitudes waste Reliable flow of
time and money design information.............…...Co-operation

„ &RQWLQXRXVLPSURYHPHQW Lower legal costs....…......Dispute resolution

- specific quantified targets, measured procedure
progress, reviewed performance
- allows that competition is not the only Good public relations.…..By being proactive
way to achieve best value for money
- customer focused, adding value, Prior agreement on
eliminating waste Profit sharing.........….......sharing of savings
- identifying and aiming for best practice

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Each of the partner’s teams should
brainstorm their objectives, focussing not
just on their end objectives but also on their
intermediate objectives through the
process.

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Partners have to accept that problems will occur,
if only because human endeavour is less than
perfect, so at the outset there should be an
agreed procedure for dealing with all problems
as they arise, before they become disputes.
The aim is to understand the problem correctly,
and then resolve it at the lowest possible level,
within a given timescale. If a solution cannot be
found at one level then the next level of
resolution is clear to everyone.
The agreed problem resolution procedure is
non-contractual and should always be used in a
genuine attempt to resolve the problem without
recourse to the contractual route.
Three levels of problem resolution are
recommended - technical, managerial and
‘political’ - each of which should follow an agreed
procedure, as illustrated below.
If a solution has not been agreed at the end of
the procedure, the problem may need to proceed
to adjudication. A failure to resolve a problem
within the partnering framework is damaging, so
every effort should be made by parties to
achieve a solution.
Problem resolution flow chart
Identify problem
Clarify problem with
other parties
Determine level
of decision
Agree to time limit
Problem
moves up to
the next level
Propose solutions
No
Problem resolved
Yes
Agreement
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Continuous improvement should be the concern
of all the parties involved in the project, as it is
only effective when all parties are motivated to
its achievement. The end result is a measurable
increase in value, whilst properly meeting the
client’s needs. It has multiple elements, some of
which are summarised below.
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Staff development Inherent in each
and training......................…..............organisation
Team continuity...............….....…....Management
Value
management.................…....……..….Conceptual
Value engineering.............….…...Design process
Get it right first time....................…..........Cultural
Quality................….......Continuous Improvement
Reduction of
waste..................…….……………Environmental,
design, construction
Whole life cost.......................…................Design
Benchmarking....….......Best Practice - examples
Looking for
opportunities..........…................Proactive attitude
Competition.............…......Internal and inter-team
Measurement....…....Key performance indicators
Benchmarking should be used to compare with
other projects. A wide range of comparators
should be used to identify where improvements
can be made. To achieve continuous
improvement requires individuals and teams
who do not quiescently accept the status quo,
but constantly look for opportunities for
improvement. It is important to measure
performance in the areas agreed at the
workshop at agreed intervals and to feed back
the results to the project team. This is not
necessarily easy, but is essential. Simple
measures can be used as a starting point,
developing and refining them as the project
proceeds.  
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5 Partnering is about people and relationships. Cynicism and lack of commitment by a few
(particularly at senior level) can destroy the efforts of many

5 The high integration of effort and understanding in a project using partnering means that it is
harder to replace a partner who falls out. By the same token the chances of such fall outs are
less and are likely to have been anticipated for longer.

5 Partnering empowers people and encourages them to work together. Without rigorous
management (measurement, benchmarking, goals) this can lead to “cosy” relationships,
reduced exposure to raw market forces and overlong carrying of non-performers.

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Published by Thomas Telford Publishing for the
Construction Industry Board. Tel: 0171 665 2464,
Fax: 0171 537 3631, Web site: http://www.t-
telford.co.uk (Priced £10)
Expanding on this fact sheet this guide details
the distinguishing factors of true partnering
arrangements against other forms of cooperative
working by setting out the basics, defines what is
meant by best practice, and sets out the reported
benefits. It also contains five detailed case
studies of successful partnering arrangements in
practice.
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Published by Thomas Telford Publishing for
Reading Construction Forum Tel: 0171 665
2464, Fax: 0171 537 3631, Web site:
http://www.t-telford.co.uk (Priced £50)
This guide discusses the benefits and costs of
partnering and makes the business case to
convince senior management. It deals with the
specifics of the two main types of partnering -
project partnering and strategic partnering - and
provides practical advice on how to go about it.
Contractual and legal issues are also covered
and the report is illustrated with many case study
examples.
processes; and feedback.
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Published by the European Construction
Institute. Tel: 01509 222620, Fax: 01509 260118.
(Priced £30)
This guide is aimed primarily at the public sector,
being applicable to both central government and
local authority construction projects. It provides
practical advice and detailed guidance on the
benefits of partnering and how to introduce
partnering arrangements on construction
projects. It outlines the principles and processes
and includes a step-by-step guide, starting with
the decision to partner, and finishing with
guidance on how to monitor its effectiveness.
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is the partnership of the construction industry,
its clients, and government working to improve
effectiveness and efficiency in construction.
For further information on the work of CIB visit
our web site: http://www.ciboard.org.uk
Or contact us at:
The Building Centre, 26 Store Street, London,
WC1E 7BT. Tel: 0171-636 2256, Fax: 0171-
637 2258. E-mail: cib@ciboard.org.uk

7KH 6HYHQ 3LOODUV RI 3DUWQHULQJ ¥ $ JXLGH WR &,% )$&7 6+((76 on the following subjects
are also available:
VHFRQGJHQHUDWLRQSDUWQHULQJ Productivity and cost improvement
Published by Thomas Telford Publishing for Value management
Reading Construction Forum Tel: 0171 665 Benchmarking
2464, Fax: 0171 537 3631, Web site: Standardisation and preassembly
http://www.t-telford.co.uk (Priced £50) _____________________________________
This guide describes current best practice in
partnering in the construction industry. It
explains that second generation partnering has
emerged and explains how it is underpinned by
seven pillars, each which represents a set of
management actions: strategy; membership;

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