partnering in construction: a practical guide to project success

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PartneringinConstructionAPracticalGuidetoProjectSuccess

FrankCarrwithKimHurtado,CharlesLancaster,CharlesMarkert,andPaulTucker

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CoverdesignbyGreyCatGraphicDesign.

ThematerialscontainedhereinrepresenttheopinionsoftheauthorsandeditorsandshouldnotbeconstruedtobetheactionofeithertheAmericanBarAssociationortheForumontheConstructionIndustryunlessadoptedpursuanttothebylawsoftheAssociation.

Nothingcontainedinthisbookistobeconsideredastherenderingoflegaladviceforspecificcases,andreadersareresponsibleforobtainingsuchadvicefromtheirownlegalcounsel.Thisbookandanyformsandagreementshereinareintendedforeducationalandinformationalpurposesonly.

030201009954321

Partnering/FrankCarr...[etal.].p.cm.Includesbibliographicalreferences(p.).ISBN1-57073-737-11.ConstructionindustryUnitedStatesManagement.2.Strategicalliances(Business)3.Conflictmanagement.I.Carr,Frank.1944HD9715.U52P371999624'.068'4dc2199-39379CIP

Discountsareavailableforbooksorderedinbulk.Specialconsiderationisgiventostatebars,CLEprograms,andotherbar-relatedorganizations.InquireatBookPublishing,ABAPublishing,AmericanBarAssociation,750NorthLakeShoreDrive,Chicago,Illinois60611.

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SummaryofContents

Acknowledgments xi

AbouttheAuthors xiii

IntroductionTheNeedforChange

Chapter1FrequentlyAskedQuestions

Chapter2ConflictandItsRoleinDefiningPartneringValues

Chapter3HistoricalDevelopmentandApplicationsofPartnering

Chapter4BarrierstotheUseofPartnering

Chapter5EvaluatingtheBenefits:IsPartneringWorththeEffort?

Chapter6DevelopingConstructionContractPartneringProvisions

Chapter7ThePartneringProcess

Chapter8PreparingfortheWorkshop

Chapter9ConductingtheWorkshop

Chapter10ThePartneringCharter

Chapter11SustainingtheRelationship

Chapter12ImplementingPartneringinConjunctionwithValueEngineeringandTotalQualityManagementMethodologies

Chapter13AlternativeDisputeResolution

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Chapter14AlternativeDisputeResolutionSelectionProcessonPartneredProjects

Chapter15LawyerParticipationinPartnering

Chapter16LessonsLearned

Chapter17CaseStudies

Chapter18TheFutureVisionforPartnering

Glossary 255

Bibliography 269

Index 275

Contents

Acknowledgments xi

AbouttheAuthors xiii

IntroductionTheNeedforChange

Chapter1FrequentlyAskedQuestions

11Introduction

12ThePartneringConcept

13ThePartneringProcedure

14ThePartneringExperience

Chapter2ConflictandItsRoleinDefiningPartneringValues

21TheGoodOldDays

22SourcesofConflict

23ConflictBasics

24ConflictintheConstructionIndustry

25PartneringDefined

26CoreValues

27WhatPartneringIsNot

Chapter3HistoricalDevelopmentandApplicationsofPartnering

31Partnering:TheDevelopmentoftheProcess

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32StrategicAlliancePartnering

33ProjectPartnering

34PartneringWorldwide

35PartneringApplications

Chapter4BarrierstotheUseofPartnering

41UnderstandingBarriers

42ConstructionIndustryBarriers

43OrganizationalBarriers

44IndividualBarriers

45PlantoOvercomeBarriers

46Success

Chapter5EvaluatingtheBenefits:IsPartneringWorththeEffort?

ValueAdded

52AffirmationofDirectBenefits

53BenefitEvaluation

54HardDataonPartnering

55SubjectiveEvaluationofPartnering

56TheRealBenefitsofPartnering

Chapter6DevelopingConstructionContractPartneringProvisions

61AdvisingaClientaboutUsingPartnering

62DraftingSpecificPartneringProvisionsinthePrivateSector

63IntegratingPartneringConceptsthroughouttheConstructionContract

64PublicSectorPartnering

Chapter7ThePartneringProcess

71IntroductiontotheStepsofPartnering

72StepOne:StartPartneringEarly

73StepTwo:SecureManagementCommitment

74StepThree:HoldaJointPartneringWorkshop

75StepFour:DevelopaPartneringCharter

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76StepFive:PlanforOngoingPartneringRelationship

77StepSix:ImplementFeedbackandProblem-SolvingActivities

Chapter8PreparingfortheWorkshop

81ConductingInternalPartnering

82IdentifyingWorkshopParticipants

83SelectingaFacilitator

84DesigningtheWorkshop

85ChoosingtheWorkshopLocation

Chapter9ConductingtheWorkshop

91AgendaDevelopment

92WorkshopElements

93OpeningtheWorkshop

94Relationship-Building

95Problem-Solving

96WorkshopClosure

97PartneringWorksheet

98SampleWorkshopAgendas

99WorkshopFlexibilityandStructure

Chapter10ThePartneringCharter

101TheNeedforaWrittenCharter

102CharterElements

103BuildingtheCharter

104MutualVision

105CommonGoals

106ImplementationPlanfortheCharter

107 149

TheImportanceoftheCharter

108SampleCharters

Chapter11SustainingtheRelationship

111TheNeedtoSustainthePartneringRelationship

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112DesigningthePlan

113TheChampion'sRoleDuringtheRelationship

114RelationshipEvaluation

115Follow-UpSessions

116BetweentheMeetings

Chapter12ImplementingPartneringinConjunctionwithValueEngineeringandTotalQualityManagementMethodologies

121ValueEngineeringChangeProposals(VECPs)

122TotalQualityManagement(TQM)

Chapter13AlternativeDisputeResolution

131LitigationAvoidanceInterest

132ADRContinuum

133IndividualMethods

134Third-PartyAssistedMethods

135AdjudicativeMethods

136ADRandPartnering

Chapter14AlternativeDisputeResolutionSelectionProcessonPartneredProjects

141HelpinDecidingWhentoUseAlternativeDisputeResolution(ADR)

142TheADRQuestionnaire

143ComputingtheADRQuestionnaireScore

144InterpretingtheADRQuestionnaireScore

Chapter15LawyerParticipationinPartnering

151RaisingtheIssueaboutLawyersandPartnering

152LawyersOutsidethePartneringTeam

153PuttingLawyersonthePartneringTeam

154 216

In-HouseCounselorOutsideCounsel

155LawyersasPassiveParticipants

156LawyersasActiveParticipants

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157LawyersasFacilitators

158TheLawyer'sProfessionalResponsibilitiesinPartnering

Chapter16LessonsLearned

161RoughSpots

162GettingStarted

163WorkshopTips

164WorkingTogether

Chapter17CaseStudies

171J6LargeRocketTestFacility

172BonnevilleNavigationLock

173InformationTechnologyServicesforFederalEnergyRegulatoryCommission,andtheGeneralServicesAdministration

174 247

ChevronWastewaterTreatmentProject

175ShoreIntermediateMaintenanceFacility(SIMA),U.S.Navy

176MurphyCanyonHousingRevitalizationProject,U.S.Navy

177GazeleyProperties,UnitedKingdomOperations

Chapter18TheFutureVisionforPartnering

Glossary 255

Bibliography 269

Index 275

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AcknowledgmentsTheauthorsgratefullyacknowledgeHalPerloffofWickwireGavin,P.C.,ofVienna,Virginia,andformerlyoftheOfficeoftheChiefCounsel,U.S.ArmyCorpsofEngineers,forhisinvaluableeditorialandadministrativeassistanceinpreparingthisbook.Hespentmanyhoursworkingwithallofustocoordinateoureffortsinthisundertaking.Wedeeplyappreciatehissupport.

TheauthorsalsoacknowledgethevaluableassistanceofRhondaWall,U.S.ArmyCorpsofEngineers,MobileDistrict,toco-author,PaulTucker.Herassistancetohiminthepreparationofhismaterialsisgreatlyappreciated.

TheauthorsfurtheracknowledgethesignificantcontributionsofJeffreyChu,whowrotetheChapter15sectionon''TheLawyer'sProfessionalResponsibilitiesinPartnering."Hisadvicewillbeinvaluabletoanylawyerwhodesirestoparticipateinpartnering.

TheauthorsalsoacknowledgethecontributionsofWilliamC.O'Connor,whomadesubstantialcontributionstothevalueengineeringportionofChapter12.Mr.O'ConnorisaprofessionalengineerregisteredinColoradoandCalifornia,andisatrainedmediatorandfacilitator.

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AbouttheAuthorsFrankCarristheChiefTrialAttorneyandAgencyDisputeResolutionSpecialist,U.S.ArmyCorpsofEngineers,Washington,D.C.HereceivedhisB.A.in1966,andhisJ.D.in1969,fromDuquesneUniversity.In1974,hereceivedanL.L.M.fromGeorgetownUniversity.Mr.CarrservedonactivedutywiththeU.S.Armyfrom197075andinthelate1990sretiredasaColonel,MilitaryJudge,intheArmyReserve.Hehasreceivednumerousmilitaryandcivilianawards.InthemilitaryhewasawardedtheLegionofMeritMedal,aBronzeStarMedal,twoMeritoriousServiceMedals,threeArmyCommendationMedals,twoArmyAchievementMedals,andtheNationalDefenseServiceMedal.Asacivilian,hewasawardedtwoMeritoriousCivilianServiceAwardsandwasselectedasthe1989CivilianoftheYearbytheCorpsofEngineers.In1995,asamemberoftheCorps'sAlternativeDisputeResolution(ADR)andPartneringTeam,hereceivedtheNationalPerformanceReview'sHammerAward.In1997,hewaspresentedtheChiefCounsel'sDisputeAvoidanceandResolutionAward.Mr.Carrhasservedasanofficerinmanyprofessionalandgovernmentalorganizations,includingtheAmericanBarAssociation,PublicContractLawSection;theBoardsofContractAppealsBarAssociation;FederalBarAssociation,ConstructionCommitteeoftheGovernmentContractsSection;andtheDepartmentofDefenseADRWorkingGroup(Procurement).Mr.Carrisafrequentlecturerandauthoronfederalgovernmentprocurementandlitigationtopics.

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CharlesL.Lancasterisalawyerandconsultantinconflictresolution.HeholdsaB.A.fromAustinCollege,anM.A.inEnglishLiteraturefromtheUniversityofWisconsin,andanM.A.inEnvironmentalManagementandaJ.D.fromtheUniversityofHouston.HewasthefirstlawyerstaffmemberattheUniversityofVirginia'sInstituteforEnvironmentalNegotiation,andworkedbyspecialappointmentwiththeU.S.ArmyCorpsofEngineersastheAssistantProgramManagerintheirpioneeringprogramonalternativedisputeresolution.Hehasbeenaprivateconsultantinconflictmanagementsince1990.Mr.LancasterhasfacilitatedpartneringworkshopsintheUnitedStatesandaroundtheworld,consultingwithgovernmentagenciesandprivateindustry.Heisco-authoroftheU.S.ArmyCorpsofEngineers'descriptivepamphletonpartnering,andhaspreparedacasestudyofasuccessfulpartneringeffort.Inadditiontohispartneringwork,Mr.Lancasterspecializesinlarge-groupproblem-solvingprocesses,publicinvolvement,facilitation,conflictmanagementconsulting,andtraining.

CharlesD.MarkertistheSeniorVicePresidentandTechnicalDirectorofMTIGlobalGroup,Inc.,andisaprofessionalfacilitatorofbusinesssolutionsthatimproveenterpriseoutcomes.Hisspecialtiesincludepartnering,strategicplanning,processimprovement,re-engineering,andinnovation.HeholdsaB.S.inCivilEngineeringfromMichiganStateUniversity(1960),anM.S.inOceanEngineeringfromUniversityofRhodeIsland(1974),andanM.A.inPublicAdministrationfromAmericanUniversity(1980).Mr.MarkertservedasanengineerandmanagerinaciviliancareerwiththeU.S.NavalFacilitiesEngineeringCommandfrom1966to1996.AsadirectorofPlanningandEngineeringOperationsfortheEngineeringCommandHeadquarters,heledavarietyofquality-basedimprovementefforts.HewasawardedtheMeritoriousCivilianServiceAwardforhisaccomplishments.Inhisconsultingbusiness,hehasfacilitated

partneringfortheconstructionofseveralU.S.embassies,substantialInformationTechnology(IT)contracts,andvariousboardsofdirectors.Hehasalsofacilitatedstategicplanningandre-engineeringfornonprofitorganizationsandfederalagencies.HeisaregisteredprofessionalengineerinVirginiaandacertifiedBottomLineInnovationTMconsultant.

PaulTuckeristheChiefoftheConstructionDivisionforthe

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U.S.ArmyCorpsofEngineers,MobileDistrict,andisresponsiblefortheCorps'sconstructioninAlabama,Tennessee,Mississippi,Florida,andLatinAmerica.HeisagraduateofLouisianaTechUniversity,1972,withaB.S.inEngineering.HeisamemberoftheSocietyofAmericanMilitaryEngineersandisaRegisteredProfessionalEngineerinLouisianaandTexas.Mr.Tuckerhasbeeninvolvedinpartneringsinceitsinceptioninthefederalgovernment.HehaslecturedtogovernmentandprivateindustrygroupssuchasAmericanCollegeofConstructionLawyers,EngineeringNewsRecord,FederalProcurementInstitute,U.S.ArmyCorpsofEngineersContractingOfficers,SocietyofAmericanMilitaryEngineers,TexasA&MConstructionManagementProgram,andmanyothersintheU.S.andoverseas.HehasservedasamemberoftheConstructionIndustryInstitute'sPartneringIIResearchTeam,whichdevelopedatoolkitforpartnering.Mr.TuckerisoneoftheforemostauthoritieswiththeU.S.ArmyCorpsofEngineersonpartnering.

KimberlyA.HurtadoistheManagingShareholderofHurtado,S.C.,CounselorsatLaw,locatedinBrookfield,Wisconsin,andpracticesexclusivelyintheareasofconstructionandprojectdevelopmentlaw.Ms.HurtadoholdsaB.A.fromtheUniversityofWisconsin(1981),andanM.A.inCommunications(1983)andaJ.D.(1988)fromMarquetteUniversity.SheistheformerlawclerktoChiefJusticeRolandB.DayoftheWisconsinSupremeCourt,andheadedMichaelBest&FriedrichLLP'sConstructionFocusGroupbeforeformingherownfirmin1998.Ms.HurtadoservesasanadjunctlectureratMarquetteUniversityLawSchoolandattheUniversityofTexasAustinGraduateSchoolofConstructionintheareasofADR,Partnering,andDesign/BuildConstruction.ShewasthePresidentoftheWisconsinBarAssociation'sConstructionandPublicContractLawSection(199798),theChairoftheAmericanBarAssociationForumontheConstructionIndustry'sContractNegotiationsand

AdministrationDivision(199799),andisamemberoftheAssociatedGeneralContractorsofAmerica'sContractDocumentsCommittee.Ms.HurtadowasselectedbyEngineeringNewsRecordinits1996Construction'sNextGenerationLeadersSeries,andisnamedinWho'sWhoAmongAmericanLawyers.Ms.Hurtadofrequentlyactsasapartneringfacilitatorandasaprivatemediatorandarbitrator.

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IntroductionTheNeedforChangeSuccessintheconstructionindusntrycanbeachievedandamplifiedwhenthevalueofcooperationisaccepted.Unfortunately,cooperativerelationshipsonaconstructionprojectrarelyjust"happen."Theyrequireacommitmentfromowners,designers,andcontractorstoactivelyencourageandnurturesuchrelationships.

Intheconstructionindustry,whencooperativerelationshipsarenotestablished,theconsequencescanbedisastrous.Thisisclearlyreflectedinourhistory.OverthepastseveraldecadesintheUnitedStates,therehasbeenanunprecedentedriseinthenumberandcomplexityofconstructiondisputes.Thenumberofconstructioncasesfiledbeforeadministrativeboardsofcontractappeals,aswellasstateandfederalcourts,hasdoubled,tripled,andevenquadrupledinsomefora,andclaimantsreportthatdisputeresolutionismorecontentiousandhostilethaneverbefore.Thecostofconfrontationalrelationshipshasbeenstaggeringandthefrustrationsofallpartiesinvolvedhavebecomeoverwhelming.Theconstructionindustryhaslearnedthepainfullessonthatacorporateculturethatfosterslitigationisneitheranefficientnoraprofitablebusinesspractice,andthatchangeisneeded:

Litigationisnotcounterproductiveifithelpsdefinelegalandfactualissues,buildingafoundationforfairandexpeditioussettlements.Butthat'snotoftenthecase.Andthecurrentfloodofsuitsissostrongthatiterodesboththeprocessandpeopleofconstruction.Fortoolongtheindustryhasrailedandralliedagainstthe"liti-

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giousnature,"andfortoolongwe'vebeentoocomfortableasindividualsandascompaniesaboutbeinginvolvedinlawsuits.1

Somehavesuggestedthatlitigationisinevitableinahigh-risk,competitiveendeavorsuchasconstruction.Therisksandcompetitivenessofconstructioncontractingarenot,however,therealcausesofthislitigiousness.Theyaremerelyareflectionofanunderlyingbreakdowninrelationshipswithintheconstructionindustryitself.Foryears,ownersandcontractorshavebeenengagedinnothinglessthanjob-sitewarfare.Oftentimes,subcontractors,suppliers,designers,andconsultantsjoinedownersandcontractorsinthefray,eachwithaseparateagendaandconflictingobjectives.Partiesinvolvedinconstructionprojectsbecameincreasinglydemanding,andcametoviewotherswithwhomtheyworkasadversaries.Itisnotsurprisingthatdistrustbecamerampantintheconstructionindustry,communicationgrewstifledand,consequently,claimsincreased.Thisadversarialenvironmentalsomadeitmoredifficulttosolvetechnicalproblemssothatprojectproductivitydeclined.Moneyandtimewerenotusedefficientlyasaresultofthesedifficulties.

Confrontationalrelationshipshavetakenaheavytolloneveryoneintheconstructionprocess.Thereislittlecooperation,anincreaseindisputesandscheduledelays,lessprofitsforcontractorsanddesigners,andmorecoststoowners.Theneedforchangeisgreat,butculturalnormsthathaveevolvedoverdecadesarenoteasilychanged.Asimplefixcannotreversethesystemofconfrontationandconflictinplaceforyears.Aculturalchangeinthemindsetsofconstructionorganizationsisrequired.Thisisasignificantparadigmshiftformanyorganizations.Tomakesuchashift,thoseintheconstructionindustrynotonlyhavetorecognizetheneedforchangeandbefullycommittedtomakingit,theyalsorequireaclearpathtofollowforbuildingbetterrelationships.

Onewaytheconstructionindustryhasbeguntofostersuchachangeisbypartnering.Partneringcanovercomeresistanceandopenthewaytomeaningfulandproductiveinteractionsbetweenorganizationsandindividuals.Itprovidesastep-by-stepprocedureforthoseembarkingonaconstructionprojecttomodifythe

1"YourChoiceMakestheDifference,"EngineeringNews-Record,Vol.226,No.6,at56(Feb.11,1991).

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adversarialnormsoftheindustry.Withpartnering,partiesmovefromconfrontationaltocooperativerelationshipsandshareinthemutualbenefitsoftheirnewrelationship.

Thepartneringprocessitselfisneithercomplexnordifficulttounderstand.Partnering,atitsessence,isafacilitatedprocessforimprovingcommunicationsonaconstructionproject.Attitudesarethefoundationforrelationships.Byimprovingcommunicationandfosteringamorefavorableenvironmentforrisksharingandteamwork,partneringcanchangethoseattitudes.Whenprojectparticipantsarecommittedtopartnering,amazingthingshappen:creativesolutionstoproblemsbegintosurface;helpingteammembersbecomesthenorm;simplehandshakesstarttohavemeaningagain;and,maybebestofall,theworkplaceismoreenjoyable.

Thefoundationforimplementingpartneringisinaninitialworkshopwheretheparticipantsintheconstructionprojectcometogethertobuildtheirnewrelationship.Althoughtheprocessisstructured,theworkshopitselfisconductedinaninformal,flexibleatmosphere.Theobjectiveistocreateaprojectteamwithamutualvisionandcommongoals.Toreachtheseobjectives,allparticipantsjointlycommittoimprovecommunicationsandresolveproblemspromptlyinawaythatismutuallybeneficialandconsistentwiththeteam'sgoals.

Partneringwasinitiallydevelopedintheprivatesectortoestablishlong-termrelationshipsamongcontractingpartiesfortheeconomicadvantageofeach.Oftenreferredtoas"strategicalliance"or"strategicpartnering,"thisprocesscommitsthepartiestoenterintoanumberofprojectsovertimepremisedonacontinuallycooperativeandfinanciallyrewardingrelationship.In1987,theConstructionIndustryInstituteattheUniversityofTexasAustinestablishedataskforcetoevaluatethisformofpartnering.Itdescribedpartneringas"along-termcommitmentbetweentwoormoreorganizationsforthe

purposeofachievingspecificbusinessobjectives."

Apioneerinconstructionindustrypartnering,theU.S.ArmyCorpsofEngineersintroducedtheideaofprojectpartneringinthepublicsectorinthelate1980s.TheCorps'sMobileDistrictwasthefirsttousepartneringonapublicconstructionproject.DanBurns,theChiefofConstructioninMobile,Alabama,wasfamiliarwithwhatwasoccurringintheprivatesectorandreachedanagree-

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mentin1988withacontractortoinitiatepartneringonasingleCorpsproject.Aftertheinitialsuccessofthispartnering,seniorleadershipoftheCorpsquicklyrecognizedthetremendouspotentialforpartneringandmovedswiftlytochangethecorporatecultureoftheentireorganization.In1990,LieutenantGeneralH.J.Hatchissuedthefirstagencypolicystatementencouragingtheuseofpartnering.Later,in1991,atameetingofCorpsmanagersheldtodiscusspartnering,theseniorleadership,ledbyMajorGeneralPeterOffringa,DirectorofMilitaryPrograms;CharlesSchroer,ChiefofConstruction;andLesterEdelman,ChiefCounsel,expressedtheirstrongsupportforpartnering.

TheArmyCorpsofEngineersviewedpartneringasadisputepreventionprocessthatcouldbeusedonindividualconstructionprojectstoachievemutuallybeneficialgoalsforthegovernmentandcontractors.TheCorpsrecognizedthatpartneringneednotberestrictedtoextendedbusinessventures.Knownas"projectpartnering,"thistypeofpartneringhassincebeenutilizedbymanyotherU.S.governmentagencies,includingtheDepartmentoftheNavy,theDepartmentofVeteransAffairs,theStateDepartment,andtheGeneralServicesAdministration.Numerousprivateconstructioncontractors,tradeassociations,anddisputeresolutionassociationsalsohaveembracedprojectpartneringandreportedonitstremendoussuccess.TheseassociationsincludetheConstructionIndustryInstitute,theAssociatedGeneralContractorsofAmerica,theDisputeAvoidanceandResolutionTaskForce,theDesign-BuildInstituteofAmerica,andtheAmericanArbitrationAssociation.

Today,partneringisbeingusedextensivelybyprivateorganizationsintheconstructionindustryandisbeingconsideredforusebymanyothers.Thosewhohaveparticipatedinpartneringfrequentlycommentthatthesuccessofpartneringisreal.Theyreportthatthisprocessdeliversprojectsontimeoraheadofschedule,withinbudgetfor

owners,ataprofitforcontractors,andwithlittleornolitigation.Thedocumentedsavingsonawidevarietyofconstructionprojectsreinforcetheseparticipants'subjectiveperceptionsoftheprocess.

Whenattitudeschangeandpartiesrealizethattheycanworktogetherasateamonaproject,tangibleresultsareachieved.Partneringworkstoimprovethequalityofconstructionprojectsandtofulfilltheexpectationsofallparticipants.Partneringmin-

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imizesconflictandmakestheworkplacemoreenjoyableforeveryone.Forthoseintheconstructionindustrywhohaveyettotrypartnering,itistimetoask,"Whynot?"Thesuccessofpartneringdoesnothavetobelimitedtoafewlargeorganizations.Partneringhasthepowertodramaticallychangethecultureoftheentireconstructionindustryforthebetter

Chapter1FrequentlyAskedQuestions11Introduction12ThePartneringConcept13ThePartneringProcedure14ThePartneringExperience

11Introduction

Partneringisarelativelynewconceptbeingembracedbytheconstructionindustry.Sincepartneringinvolvesaninnovativeandcreativeprocessforchangingthecorporatecultureoforganizations,itisnotsurprisingthat,whendiscussed,therearequestionsaboutpartnering.Whetheraskedataconstructionmeeting,seminar,orconference,thesequestionsmaybephraseddifferently,buttheytendtoraisethesamecommonconcerns.Therearethreebasictypesofinquiries:questionsabouttheconceptualbasisofpartnering;questionsabouttheprocedureforimplementingpartnering;andquestionsabouttheexperienceothershavehadwithpartnering.Thesequestionsaddresstopicsthatareconsideredingreaterdetailinthechaptersthatfollow.Here,inastraightforwardquestion-and-answerformat,areresponsestofrequentlyaskedquestionsaboutpartnering.Theyaredesignedtoenablepeopleunfamiliarwiththeprocesstogetaquickandbasicunderstandingofthepartneringprocess.

12ThePartneringConcept

Whatispartneringreallyallabout?

Partneringisastructuredprocessdesignedtocreateanatmosphereofcommitment,cooperation,andcollegialproblem-solvingamongorganizationsandindividualsthatworktogetheronaconstructionproject.Partneringusesmutuallydevelopedvisionstatements,commongoals,guidingprinciples,issueresolutionprocedures,andevaluationmethodstohelpensureprojectsuccess.Theprocessisnormallyinitiatedataworkshopbeforeconstructionbeginsandinvolvesallkeyorganizationsintheproject.Afacilitatorisusuallyinvolvedinrunningtheworkshop.

Ispartneringthelatestmanagementfad?

Althoughmanagementfadscomeandgo,goodbusinesspracticessurviveandthrive.Bothpublicandprivateorganizationsintheconstructionindustryhaveusedpartneringsuccessfullyformorethanadecade.Asmoreconstructionorganizationsbegintousepartneringandsharetheresults,thequestionofpartnering'sdurabilitywillbefinallyanswered.Atthistime,partneringisaprovengoodbusinesspracticethatisgrowinginpopularity.

WhyshouldI,asanindividual,participateinaworkshopwhenseniormanagementfortheownerandcontractorwilldominateit?

Attheworkshop,everyoneisconsideredequal.Noparticipantororganizationshouldbeallowedtodominatetheworkshopprocess.Allpartiesneedtorecognizethatpartneringisthebuildingofateamfortheproject.Ifselectparticipantstrytodominatetheworkshop,theywillundercutthesynergyforthatteam.Itistheworkshopfacilitator'sresponsibilitytosustainthesynergybyencouragingallthe

participantstomaintainalevelplayingfieldduringtheworkshop.Thefacilitatorassistseveryoneattheworkshoptobuildtheirteam;heorshekeepsthegroupfocusedasa

teamsothatnosingleparticipantororganizationdominatesthediscussionsanddecisionsreached.Thesegroundrulesalsoapplytofollow-upsessions.

Whenwesignapartneringcharter,dowethrowourcontractoutthewindow?

Partneringisnotaprocessthatchangestheparties'contractobligations.Whiletheuseofpartneringfacilitatesthemannerinwhichthecontractingpartiestreateachotherduringthecourseofcontractperformance,partneringshouldnotbeusedasameanstoopenthedoortothecompromiseofcontractrequirements.Simplystated,thewrittenmaterialscreatedduringpartnering,suchasacharterofmutualvisionandcommongoals,donotchangethetermsoftheparties'contracts.Thewrittenpartneringmaterialsarenotcontractamendmentsbutstatementsofconceptsconsistentwithcontractrequirements.Partneringcreatesaclimateinwhichtheinterestsandexpectationsofthecontractedpartiesaremorereadilyachievable.Tothisend,awrittencharteriscreatedduringpartneringthatstatestheparties'commoninterestsinreducingtime-consumingandcostlydisputes,aswellasimprovingcommunicationstothebenefitofallparties.Thiswrittencharterdoesnotremoveorcreatenewobligationsbeyondtheparties'contract(s).

Whatistheriskforagovernmentcontractingofficerinsigningpartneringdocuments?

Thereisnorisktothecontractingofficerinsigningwrittenmaterials,suchavisionstatementorprojectcharter.Thecharterdoesnotchangethetermsorconditionsofthewrittencontract.Atapartneringworkshop,concernsaboutthecontractmayberaisedandaddressed,especiallyifthecontractingofficerispresent.Thisprocessnotonlyclarifiescontractrequirements,butalsodistinguishestheserequirementsfromthecommongoalsidentifiedbythepartiesintheir

charter.

WhyshouldI,asanowner,beinterestedinhelpingacontractormakeaprofit?

Allcontractingpartieshaveaneconomicinterestinthesuccessoftheproject.Justasownersareconcernedwithgettinggoodvaluefortheirmoney,contractorsareinbusinesstomakeafairprofitfortheservicestheyprovide.Whenacontractorissqueezedforprofit,thequalityofworkandbusinessrelationshipscansufferorbedestroyed,creatinghostilityandexpensive,protractedlitigationofclaims.Drivinggoodcontractorsoutofbusinessisnotinanyone'sbestinterest.Thelong-termgoalofeveryownershouldbetokeepgoodcontractorsinbusinesssothatcompetitivebiddingisasrobustaspossibleinthefuture.

Whatifasubcontractor,supplier,designer,orotherpartydoesn'twanttoparticipateintheworkshop?

Whenakeycontractingparty(ownerorprimecontractor)refusestoparticipate,partneringwillnotwork.Whenaprincipalparty(subcontractors,designers,suppliers)withaminorroleintheprojectdoesnotwanttoparticipate,partneringcanproceedbutmaynotbecompletelyeffective.Thepartneringteamshouldconsiderhowbesttointeractwithotherswhodonotparticipatesothatcommongoalsarestillpromotedontheproject.

Whatinterestdoesthedesignerhaveinparticipatinginthepartneringworkshop?

Designersshouldparticipatebecausetheyshareaneedforeffectivecommunicationintheactivitiestheyundertakethroughoutanyproject,includingtaskssuchasthesubmittalprocess,requestsforinformation,andprocessingofchanges.Thedesigneralsosharestheowner'sandcontractor'sinterestinavoidingcostlydisputes.Asuccessfulprojectis,inpart,atestamenttothequalityofthedesign;

therefore,thedesignerhasadirectinterestinmaximizingthepotentialforthatsuccess.Partneringenhancestheopportunityforthedesigntobewellimplementedbycreatingclearercommunicationsandcooperationamongthosewhowillconstructusingthedesigner'splansandspecifications.

Dowereallyneedthecustomer/userattheworkshop?

Partneringshouldincludetheultimateuserofthecontractwork,thatis,thecustomer.Toooften,theinterestofthisvitalstakeholderintheprojectisoverlooked.Customersneedtobeinvolvedinthepartneringprocessfromstarttofinish.Theyprovidevaluableinformationabouttheirprojectneedsandcanparticipateinproblem-solvingsessionsattheworkshopandfollow-upmeetings,andmaygainabetterunderstandingofwheretheirdollarsaregoingwhenmodificationsarerequiredduringconstruction.Atypicalgoalofthepartneringteamistodeliveraqualityprojecttothecustomerthatmeetsthecustomer'sfunctionalneedsandfinancialconstraints.Customersatisfactionisanessentialingredientinvirtuallyallpartneringprojects.

Doespartneringraiseethicalproblemsforgovernmentemployees?

Thereisnothingaboutthepartneringprocessthatisunethicalorillegal.Developinggoodrelationshipswithcontractorsanddesigners,andimprovingcommunicationswiththeirpersonnel,aresoundbusinesspracticesanddonotviolateanystandardsofconductforgovernmentemployees.Theethicalresponsibilitiesofgovernmentemployeesandtherulesprecludingtheiracceptanceofgiftsorgratuitiesfromcontractorsapply,whetherornotthereispartneringontheproject.

Shouldlawyersbekeptoutoftheworkshop?

Someownersandcontractorsviewlawyerssolelyasadvocatesfortheirclientsandbelievelawyerstobetooargumentativetoservearoleinthepartneringworkshop.Adifferingviewisthatlawyerscanprovidevaluableassistancetotheirclientandthepartneringteamattheworkshop.Whentheyserveasactiveteamparticipants,lawyersmayprovideadvicetothepartytheyrepresent,actasscrivenerstohelpframeteamgoalsarticulatedbythegroup,orhelpstructurethe

techniquesfordisputeavoidanceorotherprocedures.Thelawyers'roleshouldbecarefullyconsideredaccord-

ingtotheneedsoftheproject,andbediscussedbytheparticipantswhomeetwiththefacilitatortodesignthepartneringprocessfortheproject.

13ThePartneringProcedure

Isn'tpartneringexpensive?

No.Thecostsforpartneringgenerallyincludeonetothreedaysoftheparticipants'timeatthestartofaprojecttoconducttheworkshop,andlaterforanyfollow-upsessions.Therearealsothefacilitator'sfeesforthesemeetings.Thesecostsaresmall,however,whenaprojectisdeliveredwithintheowner'sbudget,ataprofitforthecontractor,andonoraheadofschedule.

Whopaysfortheworkshops?

Anycontractingpartycanpayforthecostsassociatedwithpartnering.Asageneralrule,however,thekeycontractingparticipantstypicallysharethecostforthepartneringworkshopandfollow-upsessionsequally.Alternatively,theownermaypayforthecostoftheinitialworkshopandthecontractorpaysforfollow-upsessions.Onfederalgovernmentprojects,costsassociatedwiththepartneringworkshopareusuallysplitbetweenthegovernmentandthecontractorunderafixed-priceconstructioncontract.Thegovernmentcanreimburseacontractorforitspartneringcostsunderacost-plus-feecontract,however,bycontractuallytreatingthemasallowablecosts.

Isn'tpartneringtootime-consuming?

No.Althoughtheinitialworkshoptoinitiatepartneringmaytakebetweentwoandthreedaysatthestartofamultiyearproject,thisamountoftimeissmallincomparisontothetimesavedoverthecourseoftheproject.Attheinitialworkshop,manypartneringteams

willidentifyandresolvepotentialproblems.Thiscanpre-

ventweeksormonthsofdelayafterthenoticetoproceedwithconstruction.Later,theteamusespartneringprocedurestoworktogethertoavoidotherscheduledelaysandtoachieveprojectgoals.

DoIhavetoparticipateintheworkshop?

Anyonewhohasadirectimpactinthesuccessoftheprojectshouldbeaparticipantandattendtheinitialpartneringworkshoptobecomeateammember.Participationintheworkshopassuresanunderstandingoftheteam'scommongoalsandmutualvision.Whenanindividualisnotpresentattheworkshop,partneringmayhavenomeaningtothatperson.Asaresult,otherteammemberswillhavetoputinextraefforttodevelopthatperson'sunderstandingoftheimportanceofteamworkandcooperationtotheoverallsuccessoftheproject.

WheredoIfindthenamesoffacilitators?

Thereisnosingleorganizationthatmaintainsanall-inclusivelistoffacilitatorsqualifiedforpartnering.Sometradeassociationshavedevelopedandmaintainfacilitatorlists,suchastheAssociatedGeneralContractorsofAmerica,andtheAmericanConsultingEngineersCouncil.Also,theAmericanArbitrationAssociationandotherprivate,nonprofitdisputeresolutionorganizationsarecompilingfacilitatorlists.Theselistsareagoodplacetostartasearchforafacilitator.Anothergoodwaytofindafacilitatoristoaskorganizationsthathaveconductedapartneringworkshopforarecommendation.

Doweneedafacilitatorforthefollow-upsessions?

Maybe.Theneedforafacilitatoratfollow-upsessionsisdependentonthematurityofthepartneringteamandcomplexityoftheproject.Asageneralrule,thefacilitatoroftheinitialworkshopwouldfacilitateanyfollow-upsessions;however,occasionallyamemberoftheteammayhandletheroleofthefacilitator

atfollow-upsessions.Thedecisionwhethertohaveafacilitatorinfollow-upsessionsshouldbemadebytheentirepartneringteam.

Whatifwedon'thavetimeforfollow-upsessions?

Follow-upsessionssometimesaredelayedorcanceledbecauseofthepressuresofprojectperformanceandcompletionschedules.Thispreventsthepartneringprocessfromeffectivelyworkingwhenitismostneeded.Ittakesastrongcommitmenttopartneringtoensurethatfollow-upsessionstakeplacewheneveryoneisotherwisebusy.Toavoidthisproblem,ascheduleforthefollow-upsessionsshouldbeestablishedduringtheinitialworkshop.Datescanbesettomeetallteammembers'schedulerequirements,whichcreateabetterchanceoffollow-upsessionsoccurring.

Doesthesuretyorsimilarpartyhavearoleinpartnering?

Insituationswheretheirinputwillenhancedisputeavoidanceandaddressproject-specificneeds,asuretymaybeinvitedtohaveaparticipatoryroleinpartnering.Suretiesincreasinglyencouragetheuseofpartneringbasedontheirowninterestsinassuringthecompletionoftheprojectontimeandwithinbudget.

Whatdowedoifpartneringisnotworking?

Whateveryoudo,doitquicklybeforeproblemsescalateandtherelationshipdeterioratesfurther.Onetechniqueistohavecriticalmembersofthepartneringteamineachorganizationgettogetherandcandidlydiscussthesituation.Anotherapproachistohaveaspecialfollow-upsessionofallteammemberstofocusonthisoneissuewithasinglepurposeofrejuvenatingthepartneringcommitmentandbrainstormingpotentialsolutions.

Canwestartpartneringduringcontractperformance?

Thisquestionisnormallyraisedwhenprojectsrunintotrouble.Thebesttimetousepartneringtobuildaprojectteamisatthebeginningofaproject,settingapositiveteamspiritanddevelopingameanstoaddressissuesbeforeproblemsarise.However,partneringcanbeginatanytimeandstillbehelpful.Itisnevertoolatetoestablishapartneringrelationship.Whenthereareproblemsinthemiddleofaprojectandpartneringisbeinginitiated,theproblemsmustbeaddressedatthesametimethattherelationshipisbeingcreated.Afacilitatorwithconflict-resolutionskillsmaybeneededtohelptheteamworkonresolvingtheirproblems.Withitsfocusoncommongoalsandamutualvisionforsuccess,thepartneringprocessshouldhelpthefacilitatorandparticipantsunderstandtheirmutualinterestinnegotiatingsolutionstoproblems.

Aretherecontractclausesthatareusedforpartnering?

Yes.Therearecontractclausesthatprovideforbothvoluntaryandmandatoryparticipationinpartnering.Determiningwhichclausetousedependsonanumberoffactors,includingwhetheraprojectispublicorprivate,thenatureofthedesign,andtheconstructionchallengeswhichwillbefacedontheproject.

14ThePartneringExperience

Howsuccessfulispartnering?

Therearenumerouspartneringsuccessstoriesfrombothprivateandpublicsectorconstructionprojects.Theseprojectsweresuccessfulbecausepartneringcreatedateamwithcommongoals,amutualvision,andanagreed-uponsetofpositivebehaviors.Well-documentedbenefitsofpartneringinconstructionmanagement

literatureincludecompletionofprojectsontime,withinbudget,andwithlittleornoneedforlitigation.Alongwiththesebenefits,individualsreportlesspaperworkandmorejobsatisfactiononpartneredprojects.

Howdoespartneringdealwithacontractorwhowantstomakeexcessiveprofitthroughchanges?

Thereareownerswhofeelthatcontractorsusechangeorderstoreapexorbitantprofitsnotcontemplatedbytheoriginalcontractterms.Ontheotherhand,somecontractorsfeelthatownersdonotappreciatethefullcostofchangedcontractualrequirements.Therealityisthatchangescanreduceproductivityandaffectmoralewhenreworkisrequired.Partneringhelpsenableallcontractingpartiestounderstandthatchangesrequirecoordinatedeffortanditcanhelpestablishrealisticexpectationsforafairchange-orderprocess.

HowcanpartneringhelpacontractorfindcostsavingswhenthecontractalreadyhasaValueEngineeringChangeProposal(VECP)clause?

SinceittakesasubstantialefforttoprepareandsubmitValueEngineeringChangeProposals,acontractormaybereluctanttopursueVECPsiftheownerisnotalreadycommittedtothem.Thequestionoftheowner'scommitmenttovalueengineeringchangescanberaisedandaddressedattheinitialpartneringworkshop.TheVECPprocessitself,particularlytimefactorsforVECPsubmittalsandreview,alsocanbeclarifiedduringtheinitialworkshop.

Whatisthechanceofasuccessfulpartneringrelationshipwhenmillionsofdollarsare''leftonthetable"inafixed-price,lump-sumcontract?

Excellent.Thereisaperceptionthatifacontractorleavesmillionsofdollarsonthetable,comparedtootherbidders,thenthecontractorhasunderbidthecontractandwillbelookingforwaystomakeitup.Thisisnotalwaysaccurate.Insomeinstances,thecontractormayhavebeeninnovativeandisplanningtobecreativewithnewtechniquestosavemoney.Partneringgreatlyenhancesthereceptivenessofowners

tothesetechniquesbycommunicatingclearlyabouttheminadvanceofworkbeingper-

formed.Partneringestablishesanatmospherewherecreativityandinnovationarewelcomeinthepursuitofmutualsuccess.

Isn'ttherepressuretogiveintocontractor(orowner)(ordesigner)demandswhenyouusepartnering?

Partneringisnotamethodthatpressuresanyoneto"givein"tootherteammembers.Inapartneringrelationship,positivecommunicationisfosteredinstead.However,theremaybesomeapprehensionaboutonepartyunfairlymanipulatingtheprocess.Suchconcernsshouldberaisedasapotentialproblemattheworkshoporatafollow-upsession,andcanbecandidlyaddressed.Partneringteachesgive-and-takecommunicationskillsfortheoverallbenefitoftheprojectteam.Thisproblem-solvingmethodnecessarilyrequiresconsensusbuilding.Anytimeateammembermakesarequest,theotherpartiesshouldgiveitseriousconsideration,buttherequestshouldnotbepermittedtobecomeaunilateraldemandforaparticularsolution.Ifa"demand"isasserted,thenitshouldbeidentifiedandrearticulated.Intheworstcase,wherecommunicationreachesanimpasse,thepartneringrelationshipshouldbereevaluated.Demandsareanindicationthatoneteammemberisseekingtodominatetheothermembers.Thisistheantithesisofgoodpartnering.Thoseteammembersgenuinelydesiringthebenefitsofpartneringshouldredirectthissortofdestructiveinteraction.

Ifpersonalitiesactuallyclash,shouldtheparticipantsonthepartneringteambechanged?

Sometimes,despiteallefforts,personalitiesorpersonalcommunicationstylesonapartneringteamwillclash.Duringthecourseofconstructionoftheproject,ifrelationshipsamongsometeammembersbecomedetrimentaltotheabilityoftheteamasawholetoworktogethertoachievecommongoals,someplayersonthepartneringteammayneedtobechanged.PartneringisATTITUDE.If

theattitudeofateammemberisnotinsyncwiththecooperativeattitudeofotherteammembers,discordanddistrustwillbetheresult.Withouttrustthepartneringeffortwillfloun-

der.Ifnecessary,changesinteammembersshouldbemadeasquicklyandearlyaspossibletoeliminatefurtherproblems.

Whenpartneringopensupcommunications,doesn'tithurtanorganization'sinternalchainofauthority?

Partneringdoespromotecommunicationswithotherteammembersoutsideyourorganization.Thiscross-communicationisactuallyfruitfulandshouldnothurtinternalcommunications,especiallyupthechainofauthority.Withpartnering,theparticipantshavetheopportunitytodevelopanissue-resolutionladder,whichenhancescommunicationsinternallyalongagreed-upontiersofmanagement.Anissue-resolutionladderassuresseniormanagementthatissueswillberaisedinatimelymannerandcriticalinformationwillflowbothupanddownthe"chain."Astrustisbuiltthroughopencommunications,thisprocessshouldcontinuetokeepseniormanagementinformedofanythingsignificantinvolvingtheproject,whilepromotingtimelyresolutionofissuesbythoseinthefield.

Whatisthebenefitoftheworkshopforthesubcontractor?

Subcontractorswillbeabletoinformtheotherparticipantsoftheirinterestsandvaluetotheproject.Subcontractorswill,inturn,learnandappreciatewhatisimportanttotheotherprojectparticipants.Subcontractorparticipationintheworkshopcanhelppreventdisputesduringperformance.Forexample,theymayhavespecificknowledgeabouttheirportionoftheprojectnototherwiseknownbytheprimecontractor(suchasalonglead-timefordeliveryofanitemthatwouldaffecttheprojectschedule).Suchissuescanbeidentifiedandaprocessfortheirresolutioncommenced,orevenfinalized,atthepartneringworkshop.

Howcanyouletsomeoneknowthatyoufeelotherteammembersaretakingadvantageofyouduringpartnering?

Twoessentialelementsofasuccessfulpartneringrelationshiparetrustandcommunication.Ifanyteammemberfeelsheorsheis

beingtakenadvantageofbyotherteammembers,trustwillbeadverselyaffected.Teammembersshouldbeencouragedtoplainlyandpromptlycommunicatethisfeelingtotheotherswhenanissuearises.Anyteammember'sconcernshouldbeheardandconsideredbytheentireteam.Thepartneringprocessisdesignedtoenhancetheabilityofteammemberstocommunicatesensitiveconcernsthroughteachingnewcommunicationtechniques,andbycreatingongoingevaluationmechanismsandfollow-upsessionstoprovideopportunitiestosharesuchconcerns.

I'mjustasmallcontractor;howcanItakeadvantageofpartnering?

Thesizeofthecontractordoesnotdiminishthebenefitsofimprovedcommunications,trust,andteamwork.Itisinthebestinterestofasmallcontractorwithlimitedresourcestounderstandtheproblemsotherpartiesanticipateontheproject.Up-frontknowledgereducesconfusionatthestartofthejobandpromotescost-effective,mutualproblemsolving.

Whenisthebesttimetobeginthinkingaboutpartnering?

Thinkaboutpartneringattheinceptionoftheproject,withcandiddiscussionaboutitsbenefitsduringbidding,andagainwiththedesignersandsubcontractorsastheyareselectedfortheproject.Iftheparticularprojecthasalreadyprogressedbeyondthesepoints,butthepartiesarestillwillingtocommittomakingpartneringanactivepartoftheproject,itisnevertoolatetobegin.

Chapter2ConflictandItsRoleinDefiningPartneringValues21TheGoodOldDays22SourcesofConflict23ConflictBasics24ConflictintheConstructionIndustry25PartneringDefined26CoreValues27WhatPartneringIsNot

21TheGoodOldDays

Whenthoseintheconstructionindustrygettogetheratconferencesandseminars,itisalmostguaranteedthat"oldtimers"willbeheardbemoaningthelossofthesimplehandshakeastheemblemofperson-to-personcommitmentintheconstructionindustry.Theyarequicktopointoutthatinthenot-so-distantpast,ahandshakewasallthatwasneededtocreateagoodworkingrelationshipandanagreementtosolveproblemstogether.Perhapsthesememoriesaremerelythestuffoflegend,butitisdemonstrablytruethatrelationshipshavegrownmoreadversarialandthatlitigationovercontractrequirementshasbecomeincreasinglyprevalentintheconstructionindustryinthelastseveraldecades.

Litigationreflectsabreakdownofrelationshipsandarelianceonajudicialsystemtodecideconflicts,ratherthandirectproblem-solvingbyindividualsortheorganizationstheyrepresent.Whenorganizationsenterrelationshipsorplantheiractivitieswithlitigationinmind,theycreateconflictaspartofthestructureofthenewrelationship.Theconstructionindustryispoorerforthelossofthepersonalcommitmentofahandshakeinfavorofthisadversarialmentality.

Partneringoffersanopportunityforcontractingpartiestoreturntothosenostalgicdaysofconstructionindustrylegend.Inthepartneringprocess,theprojectteambuildsnewandbetterworkingrelationshipsbasedonasetofsharedcorevaluesthathelpthemtobetterresolveconflict.Thischapterexaminesthesourcesofconflictthatcreateprojectstrife,definespartnering,anddiscussespartnering'scoreattributesandvalues,whichresultinavoidanceorlesseningofprojectconflict.

22SourcesofConflict

Conflictisafeelingorconditionthatoccurswheneverapersonorgroupfacesasituationthatinvolvesthenecessityofmakingachoicebetweentwoormoreoptions.Oneessentialelementofconflictisthatitalwayspresentsatleasttwoincompatiblepossibilities.Theneedtoexercisechoicemaynotfeelagreeable.

Conflictcanalsoexistasanemotionfeltbyoneormorepeople.Whenapersonistornbetweentwoormoreopposingchoicestheymaysuffertheemotionof"internal"conflict.

Inhisbook,TheMediationProcess,Dr.ChristopherW.Moore,aconsultantandteacherofconflictresolution,describesthesourcesofconflictasacircleofpotentiallyinteractivematters.Heidentifiesfivefundamentalsourcesofconflict:interests,data,relationships,values

andstructure.

Interestconflictsarethemostfamiliarsourcesofconflict.Interestsarethesourceofthedispute.Fortheresolutionofadispute,interestsmustbesatisfiedoratleastaddressedinasatisfactoryway.Substantiveinterestsarethethingsatissue(resources).Proceduralinterestsrefertotheprocessormethodofresolvingconflict.Psychologicalinterestsrefertothewaypeoplefeelabout

theconflictinteractionbetweentheparties.Wheninterestsconflict,problemsolvingandcollaborativenegotiationthatseeksawin-winsolutionarethepreferredpartneringapproachestoresolvesuchconflictsandpreserverelationships.

Dataconflictsresultfromthelackofdata,misinformation,differentinterpretationsofinformation,anddifferentviewsontherelevanceofdata.Clear,completecommunicationisessentialtoavoiddataconflict.

Relationshipconflictsareoftenbasedonemotions.Theseconflictsarecharacterizedbymisperception,stereotyping,orpoorcommunication.Relationshipconflictsclosemindsandblinddisputantstotheirownbestinterests.Partneringputsspecialemphasisonbuildingpositiveworkingrelationshipsbecausetheyaresoimportanttoeffectiveresolutionofthistypeofconflict.Whenpersonalrelationshipscauseconflict,therelationshipmustbeaddressedbeforeproductivenegotiationsaboutunderlyinginterestconflictscanbegin.

Valueconflictsarisefromfundamentallydifferentlifestyles,goals,ideologies,orreligiousbeliefs.Negotiatingachangeinsomeone'svaluesystemisusuallyfutile,butmostproblemscanbedefinedintermsthatavoidvalues-ladenimplications.Partiesusuallycanagreeonproductiveapproachestoproblemresolutionwithoutrequiringoneanothertochangetheirfundamentalvalues.

Structuralconflictsresultfromthe"rules"orcircumstancesthatconstrainhumaninteraction.Forexample,thefixed-pricebiddingregulationsinpublicsectorconstructioncreateastructuralsituationthatmaycauseconflict;thetimeallowedforperformanceofacontractmaycreateastructuralconflict;ororganizationalstructuresmaycreatestructuraldecision-makingconflicts.Oftenitisimpossibleforpeopleengagedinastructuralconflicttodoanythingtoalterthestructure.Theycan,however,definerolesclearly,shareinformation

aboutstructuralconstraints,andworktogethertolessentheireffects.

Thepartneringprocessspecificallyaddressesthesepotentialsourcesofconflicttodefuseproblemsthatinevitablyarise.Relationshipbuildingisaprimarypurposeofthepartneringworkshop,asisestablishingopencommunications.Thus,relationshipanddataconflictscanbesubstantiallylessened.Problem-solvingprocessesestablishwaysthatinterestscanbepositivelyaddressed,validatingproceduralandpsychologicalneedswhile

searchingforwin-winsubstantivesolutions.Structuralconflictscanalsobeaddressedthroughcollaborativeproblem-solvingtechniques.Finally,partneringestablishescoresharedvalueswhichteammemberscanemphasizeandrelyuponintheirworkingrelationshipsandinmanagingconflict.

23ConflictBasics

Dr.CharlesP.Lickson,theauthorofthebook,IroningItOut:SevenSimpleStepstoResolvingConflict(1996),suggestscertaingroundrulesorpresumptionsnecessaryforpartiestounderstandaboutthestudyofconflict,whichhecalls"ConflictBasics"(SeeFigure21).Thesepresumptionsaredesignedtoprovideaframeworkforsharedunderstanding,andcontainvaluableinformationabouthowpeopleandorganizationsseeconflict.Whenpeopleinconflictobjectivelyunderstandhowtheyperceiveconflict,thepossibilitiesincreaseforconstructivelyresolvingit.

24ConflictintheConstructionIndustry

Whiletheconstructionindustryhasnomonopolyonconflict,negativeexperiencesintherecentpastwithintheconstructionindustryhavepromptedmanytochooseadversarial,ratherthancooperative,strategiesintheirefforttosucceed.Changingthisdynamicrequiresknowledgeofthecontextandsourcesofconflictintheconstructionindustry.Whenthesefactorsareunderstood,betterchoicescanthenbemadetopromotecooperativeconflictmanagementandteamsuccess.

TheConstructionIndustryInstituteattheUniversityofTexas(CII)wasfoundedasapartnershipofowners,contractors,andacademicleaders,withavisionofimprovingthecompetitivenatureoftheU.S.

constructionindustry.CIIrecognizesthreefundamentalsourcesofconflict:increasedrisk,lackoftrust,andpoorcommunication.

Riskisinherentinconstructionwork.Managersmustfaceriskandplanforit.Unfortunatelythecultureofconflictcancre-

1.Humanbeingsseethingsoftennotasthingsare,butaswhotheyare.2.Nothingisobvious;donotassumethateveryoneseesthingsasyoudo.3.Simplicitydoesnotmeanunimportant;don'tneglectthesimplepoints.4.Conflictisanormalpartofindividualandorganizationalexistence.5.Dealingwithconflictinvolvestworesponses:(a)automatic(oruncontrolled)and(b)learned(orcontrolled).6.Theautomaticresponsetoconflictsituationsmayormaynotbealterable.Dealingwithconflictmayinvolveautomatic(evenautonomic)reactionsthatarenotusuallycontrollable,oritmayrequirebehaviormodificationandrationaldecision-makingthatfollowscarefulconsiderationofavailablealternatives.7.Thelearnedresponsetoconflictcanaffectourlivespositivelyfrombothaphysicalandmentalstandpoint.Ifwerealizethatwearereactingtoconflictinacertainwaybecauseofsomethingthathappenedtousortoourorganization,wecanprobablyalterourbehaviororreaction.Mostpeople,andevenorganizations,areunwilling(orunable)tochangetheirvalues.Thus,resolutionofconflictsinthevaluedomainrequiresfindingawaytoavoidthevalues-ladencontextandallowstheindividualororganizationtokeepitsvaluesinplace,whilefindingawaytoaresolution.8.Individualshavecertainstylesofbehavior.Thesestylesdictateingreatmeasuretheautomaticresponsetoconflict.Organizationsalsohavestyles.Thestylesofindividualandorganizationalbehaviorcancontributetopositiveornegativeworkingrelationships.9.Individualsandorganizationswant(andneed)tocommunicatewitheachotherandresolveconflicts.

Figure21ConflictBasics

ateunmanageableanduncontrollablerisksduetounpredictableexternalfactors.Lackoftrustamongorganizationsstemspartiallyfromtheadversarialrelationsofrecenttimes,wherestiffcompetitionhasjeopardizedrelationships.Lackoftrustandpoorcommunicationgohandinhand,resultingindefensivewallsofsilencewithinandbetweenorganizations.Contractingpoliciesandrulesandregulationsestablishedoutsidetheconstructionprocessmaylimitwhoisallowedtotalktowhom.Ifleftunaddressed,thesesourcesofconflictwillcrippletheabilityoftheconstructionindustrytomeetthefuturewithconfidence.Forexample,somebelievethatanyrelationshipotherthanoutrightcombatbetweentheownerandcontractorisaformofcollusion.Manylawsandacquisitionregulationsseemtobebasedonthebeliefthatpeoplecannotbetrustedtointeracthonestlyforthepublicorgroupgoodandexecuteaqualityproject.Thisisespeciallytrueinthepublicsector.Governmentofficialsinthecontractingarenaaresubjectedtoextremescrutinyintheirdealingswithcontractors;an"arm'slength"policyapplieswhichinhibitscooperation,communication,andcreativity.

Onconstructionprojects,itisnotuncommontohearthat"it'smywayorthehighway,"and"niceguysfinishlast."Inthismindset,projectdecisionswillbebasedonpowerandauthorityinsteadoffactsandsharedinterests.Neitherpartyreallycaresabouttheimpactofadecisionontheotheronlyhowthedecisionwillaffectthem."Poisonpen"memos,hostilecommunications,andfault-findingcharacterizethisattitude.Thepartiesspendfarmoretime''posturing"thangettingthejobcompleted.Posturingistheartofdocumentingandattemptingtomakecertainthatapositionissustainablebasedonthedocumentingundertaken.Posturingfostersthedevelopmentofhiddenagendasamongthepartiesthat,inturn,breedsmistrust.Unfortunately,itisoften"companypolicy"todocumenteverythingforthepurposeoffutureprotectionorthepursuitoflegalremedies.

Usefulexchangeofinformationislostintheavalancheofpaper.Thelowestresponsible,responsivebidderselectionprocessplacesextremepressureonthebidderstoprovideamarginallyadequatebidtocoverthework,withasmallmarginforcontingencyandprofit.Thissystemmayresultinsituationswherecontractorsfeelcompelledtofindprofitinchangeordersandclaims.

Aconstructioncontractrelationshipmayalsohaveconflictbuiltinwhencontractscontainambiguousterms.Tobecompetitive,contractorsbasebidsonthelow-dollarestimateoftheambiguousitemswhiletheowner'sexpectationtypicallyisbasedonreceivinghighestquality.Contractorsandownersthusenduppullinginoppositedirectionsfromtheverybeginningoftheirrelationship.Asaresultthereislessopportunityforclarifyingcommunicationandagreaterchanceofmisunderstandingcontractrequirements,causingdelay,rework,andincreasedcoststobothparties.

Designersalsoareaffectedbyconflictarisingfromcurrentpracticesinprojectdelivery.Underthetypicaldesignprocess,theremaybeinsufficienttimeorfeesfordesignerstofindordetailthebestsolutiontoadesignissue.Businesspressuresorindustrypracticemayleavedesigndetailsincompleteuntilthejobprogresses.Designersmaymakeinsufficientfieldobservationstosupporttheconstructabilityoftheirdesigns,whichseemfineonpaper.Requestsforinterpretationofthedesigndocumentscanbecomeasourceofdelayanddiscord.Whiledesignstandardshavebeencreatedtoestablishmoreuniformandmoreclearlyunderstoodpractices,theysometimesprecludebetterdesignsolutionstouniquesiteconditionsorcustomerrequirements.

Partneringwascreatedtoaddressorlimittheseformsofconflictonconstructionprojects,butitcanonlyworkwhenconflictisrecognizedandmoreeffectivecommunicationsareimplemented.Whenconflictarisesduringthepartneredrelationship,teammembersnegotiateusingcollaborativeproblem-solvingtechniquesdevelopedintheirpartneringworkshopstoreacharesolutionthatwillmeettheteam'sneedsandsatisfyitsmutualinterests.

Acriticalfirstelementofreducingconflictistocreateasharedconceptofhowpartneringcanbeusedbytheteamtoaddressdisputeavoidance.Thisrequiresanunderstandingofthedefinitionof

partneringandisaidedbyanexplorationofthevaluesofpartneringthatmakeiteffectiveasaconflictmanagementtool.

25PartneringDefined

Partneringhasbeenformallydefinedmanytimesbyorganizations,governmentagencies,andwriters.(SeeFigure22.)

"Partneringisavoluntary,organizedprocessbywhichtwoormoreorganizationshavingsharedinterestsperformasateamtoachievemutuallybeneficialgoals."

"BuildingSuccessforthe21stCentury:AGuidetoPartneringintheConstructionIndustry,"ReportoftheDisputeAvoidanceandResolutionTaskForceoftheAmericanArbitrationAssoc.(1996).

"[Partneringis]aproject-focusedprocessthatbuildsanddevelopssharedgoals,interdependence,trustandcommitment,andaccountabilityamongteammembersandthatseekstoimproveteammembers'problemsolvingskills."

TheConstructionIndustryInstitute,InSearchofPartneringExcellence:AReportbythePartneringTaskForce,Austin,Texas:CIISpecialReport171(1991).

"...thepartneringprocessattemptstoestablishworkingrelationshipsamongtheparties(stakeholders)throughamutually-developed,formalstrategyofcommitmentandcommunication.Itattemptstocreateanenvironmentwheretrustandteamworkpreventdisputes,fosteracooperativebondtoeveryone'sbenefit,andfacilitatethecompletionofasuccessfulproject."

AssociatedGeneralContractorsofAmerica,Partnering:AConceptforSuccess,AGCPublication#1205(Sept.1991).

"Partneringisamanagementapproachusedbytwoormoreorganizationstoachievespecificbusinessobjectivesbymaximizingtheeffectivenessofeachparticipant'sresources.Theapproachisbasedonmutualobjectives,anagreedmethodofproblemresolutionandanactivesearchforcontinuousmeasurableimprovements."

JohnBennett&SarahJayes,TrustingtheTeam:TheBestPracticeGuidetoPartneringinConstruction,CenterforStrategicStudiesinConstruction,UniversityofReading,England(1995).

"Partnering,simplyput,istheexpressrecognitionoftheimpliedcovenantofgoodfaithandfairdealing.Itrequiresthecontractingpartiestousebestefforts,throughamutuallydeveloped,formalstrategyofcommitmentandcommunication,tocreateanenvironmentoftrustandteamworkforthecooperativeavoidanceofdisputesandthe

facilitationofprojectcompletioninatimelyandcost-effectivemanner."

KimberlyKunz,"Counsel'sRoleinNegotiatingaSuccessfulConstructionPartneringAgreement,"TheConstructionLawyer:JournaloftheForumoftheConstructionIndustry,Vol.15,No.4,19(Nov.1995).

Figure22PartneringDefined

The"team-building"conceptrecognizesthatpeopleworkingtogethercanachievesynergisticresultsgreaterthanthoseofanyindividualwithintheteam.Successfulteamslearnthatateamneedsmorenurturingthanmerelynamingtheteammembers.Theprocessofbuildingateamincludesdevelopingacollaborative,trustingrelationshipamongtheteammemberssothattheirskillsandexpertisecanbecombinedmosteffectively.Thisrequiresthatpeoplecommunicatereadily,candidly,andwithoutfear.

Inanadversarialconstructionenvironment,synergyisnonexistent.Eachsidecreatesanindependentteamwithanindividualstructureandgoals,withoutconsideringtheimpactontheotherparties.Claimsconsultantsandlitigationlawyersmayevenbepartofeachorganization'sstaff.Mistrustisinherentinthisenvironment,withconflictandlitigationloomingfromthestart.Whenarelationshipisstructuredinthisway,thereislittlechanceofdiscoveringthebenefitsofworkingasateamwiththeotherprofessionalsinvolvedintheproject.

Team-buildingacrossorganizationallinesimpliesthatthereisaneedforchangetoreduceconflict.Ratherthantwoteamsonaprojectengagedinatug-of-warwitheachother,pullinginseparatedirectionstowarddifferentgoals,partneringstrivestobridgethegapbetweenorganizationsandhavethempulltogethertoreachcommongoals.Inpartnering,organizationsaregiventheabilitytobeginanewrelationshippositivelyandbasetheireffortsonamutuallyagreedvisionforsuccess.Newteamsalwaysgothroughaperiodofgettingtoknowoneanotherbeforeasuccessfulworkingrelationshipisborn.Thisisdoublytrueinthecontextofpartnering,wheretheindividualsinthenewteamalsobelongtodifferentorganizations.Thereisaninherentsuspicionandwarinessthatisnormalinnewrelationships.Byrecognizing,acknowledging,andthenunderstandingandovercomingthesedifferences,partneringdirectlyaddressesthese

concerns.

26CoreValues

Partneringisbasedonthefollowingfivecorevalues:

1.Managementcommitmentremainsstrongandvisible.Topmanagementcommitmenttotheprocessofpartneringisapre-

requisitetobeginbuildingthenewrelationship.Theseniormanagersoftheteammustvisiblysupporttheconceptandcommunicatetheirsupporttothepeopleontheprojectsitewhoworktogethertocompletetheproject.Theworkofmanagementdoesnotendwithmerelyshowingsupportforpartneringatthestartoftheproject.Managersmustbewillingtodelegateauthoritytomakedecisions:theyshouldpushdecision-makingpowerdowntothejobsitewhereverpossibletoencourageefficientandcost-effectiveproblem-solvingatalllevels.Sitemanagersmustfollowthisprincipleaswell,empoweringtheirworkerstosolveproblemsandtopracticeopencommunicationsacrossorganizationallines.Managersmustconstantlyworktoinstillpartneringcharacteristicsinfront-lineworkers,provingthevalueofthenewparadigmbyexampleinwordanddeed.Partneringworkswhenmanagement'scommitmentisvisiblyandcontinuallydemonstratedduringthelifeoftheproject.

2.Mutualtrustcontinuestocharacterizetherelationship.Trustisdifficulttobuildandeasytodestroy.Trustmaybecreatedfirstwithwords,butitstruefoundationcomesfromwitnessingactionsthataffirmit.Therearetwoaspectsoftrust:beliefthatpeoplewilldowhattheysaytheywill;andconfidencethatpeoplehavetheabilitytodowhattheysaytheycan.Trustatbothlevelsisessentialtoaneffectivepartneringrelationship.Astrongcultureoftrustcanbedevelopedbyactivelyhelpingeachothertosucceed.

3.Opencommunicationisthenormattheprojectsiteandamongmanagementpersonneloff-site.Whenpeoplereflectonbehaviorsthattheyvaluemostinpastsuccessfulteam-basedworkefforts,theywilltypicallymentionhowthemembersoftheteamcommunicated.Somewilldescribethewaypeople"clicked"onaninterpersonallevel;otherswillmentiontherespectgainedfortheircolleaguesthroughprofessionalcollaboration,whichthenledtoinnovationandeffectiveproblem-solving;otherswillidentifytheinteractionthatledto

discoveryofaconcealedproblemthatcouldthenbesolvedproactively.Opencommunicationisthesourceofthesebenefits.Poororrestrictedcommunicationisthefundamentalsourceofmost(ifnotall)destructiveconflictintheworkplace.Acentraltaskoftheparticipantsinapartneringworkshopistoestablishthepersonalinteractionsandcommunicationslinksthatwill,inturn,enableproductive,candid,andeffectiveworkingrelationships.

4.Sharedresponsibilityincludessharedriskoffailureandsharedbenefitsofsuccess.Acohesiveteamacceptssharedresponsibilityforsuccessfulproblem-solvingandprojectcompletion."We'reallinthistogether"becomesastatementoffact,notjustaslogan.Thus,allpartiesshareinthesearchforsolutionstoproblemsratherthantryingtodecidewhobearstheriskunderthecontractortheblamefortheproblem.

5.Commongoalscontinuetobethemotivatingforceforteamachievement.Acentraltaskattheinitialpartneringworkshopistodefinecommongoalsforteamsuccess.Eachday,theteamshouldask,"Arewestillmovingtowardourcommongoals?"Iftheseself-definedcommongoalscontinuetobemotivatingfactors,partneringisaliveandwell.

Thesefivecorevaluesofpartneringarestressed,explained,andexperiencedinthepartneringworkshop.Keepingthesefivecorevaluesaliveintheworkplaceassuresthatteammemberswillbeheadinginthedirectionofgreaterteameffectivenessandsuccess.Ensuringviabilityofthesecorevaluesisaprocessthatrequiresconstantnurturing,monitoring,andinnovation,aswellasfollow-uponthepartofallteammembers.

27WhatPartneringIsNot

Toachieveafullunderstandingofpartnering,itishelpfultoexaminewhatpartneringisnot.Thefollowinglimitationshelptoclarifymisperceptionsaboutthepartneringprocess.

Partneringisnotjustonemeeting.

Partneringisaprocess.Itrequirestime,commitment,andfollow-upfromateamthatisregularlyinvolved.Sometimes,aprojectmanager

maycalla"partneringmeeting"forproblem-solvingonthejob.Thisisnotpartnering,eventhoughthepartiesmay,infact,bemovedtogreatercollaborativeeffort.Thedangerofafastandlooseuseoftheword"partnering"isthatpeoplewillmisunderstandwhattheprocessisandviewitonlyasaconflict-resolutionmethod.Partneringoffersmuchmorethanreactiveconflict

resolution.Partneringpromisesthebenefitofthemostefficientformofconflictresolution:conflictprevention.Italsobuildspositiveworkingrelationshipsandestablishestheclimateforcreativityandinnovationthatissoimportantoverthelifeoftheproject.

Partneringdoesnotmodifythecontractdocuments.

Thenewworkingrelationshipthatiscreatedbypartneringdoesnotamounttoamodificationoftheparties'contractdocuments.Theselegallybindingdocumentsremainunchanged,intact,andfullyenforceable.Allcontract-createdrisksandremediesremaineffectiveandavailabletotheparties.Partneringisaprocessthatiscomplementarytocontractualrightsandremedies.Partneringcreatesaclimateofcooperationandcollaborationaimedatachievingjointlydefinedgoalsthatarefullyconsistentwiththecontract.Writtenmaterialscreatedinpartneringmeetingsdonotcreatenewcontractprovisions.Theirpurposeisaspirationalandinspirational,ratherthanlegal;theyreflectthewaytheteamaspirestoachievejointlydefinedgoalsforsuccessandvoluntarilycommitstoworktogetherinproductiveways.

Partneringisnotoneway.

Partneringisjustwhatthenameimplies,ajointefforttowardcommongoals.Intermsofcollaborationandproblem-solving,itisatwo-waystreet.Whenusedinitsmostproductiveway,partneringcanbemorethananagreementtogive-and-take.Collaborativeproblemsolvingistheonlywaytoreachtheelusivewin-winsolutiontoaconflict.Atthepartneringworkshop,participantsexperiencethevalueofworkingtogetherastheydiscusscommongoals,writetheircharter,andprepareactionplans.Inthemeltingpotofideas,theexperienceandexpertiseofthewholeteamissynergisticallycombinedtocreateoutcomesthatgobeyondcompromisetofindingsolutionsthataddresstheinterestsofall.Suchatwo-wayexchangeofideasonlyoccurs

whenteammemberscommunicatecandidlyandopenly.

Partneringisnotpressuringtheotherparty.

Partneringwillnotworkifparticipantsbelieveitismerelyameanstoexertpressureonotherstomakethem"goourway."Atruecollaborationenablesateamtousetheexpertiseofallmembersinasearchforthebestcourseofaction,inlightofallrelevant(andsometimescompeting)factors.Howcanateamdothis?Itdoesthisbyprinciplednegotiation,choosingcriteriafordecisions,generatingoptions,andmakingachoice.Thispermitsteammemberstocollectivelyexamineoptionsandtogetherdecidethebestcourseofaction.Thistechniqueistaughtintheinitialpartneringworkshop,asteammemberslearnthat"conflictisnormal;combatisachoice."Teammembersneednotfearconfrontingconflictbecausetheconceptthattheresourcesoftheentireteamwillbeappliedtoreacharesolutionisreinforcedthroughpartneringactivities.

Partneringisnotsaying,"Readthecontract."

Theconstructioncontractdefinesthelegalrelationshipoftheparties.Itisanimportantsourceofrequirements,aswellasriskallocationandpurpose.Partnering,however,teachesthataproductiverelationshipreliesontheabilityofpeopletoworktogethereffectively.Whenanissueraisedduringtheconstructionprocessismetwiththeresponse,"readthecontract,"anopportunityforcommunication,cooperation,andjointeffortislost.Whenthecontractistheonlysourceofinformationrelieduponforproblem-solving,thereisanincreasedlikelihoodformisinterpretationleadingtoreworkanddelay.

Partneringisnotfindingsomeonetoblame.

Itisimportantfortheteamtorememberthepartneringaxiom,"fixtheproblem,nottheblame!"Whenfindingsomeonetoblameforaproblemisthefirstconcern,problem-solvingtakesabackseat.Partneringrequiresthatthepartiesassumeanewattitudetowardthe

risksoftheconstructionprocess.Thecontractdocumentsassigntheriskofnonperformanceamongtheparties;

thatis,theytellthepartieswhowillbearresponsibilityforcertainproblems.Intermsofgettingthejobdone,however,noorganizationcanbesuccessfuliftheprojectisderailed.Whentheinitialreactiontoaproblemistolookatthecontract'sallocationofrisks,theteamisnotworkingeffectivelyorefficientlytogetthejobdone.

Partneringisnotsaying,"Putitinwriting."

Toooften,"putitinwriting"istheresponsewhenanissueorconcernisraisedataconstructionsite.Theimplicationisthatnothingcanbediscussedandnoactiontakenunlesswrittencommunicationtravelsthroughtherequiredchainofauthority.Solutionswaitwhilepaperisshuffledupanddownorganizationalchains.Akeyprincipleofpartneringisefficiencyincommunicationandproblem-solving.The"putitinwriting"mentalityhindersproblem-solvingcommunicationamongprofessionalcolleaguesanddelaysselectionofabeneficialsolution.Partneringattemptstostrikeanewbalancebetweentheneedforappropriatedocumentationofdecisionsandtheneedforefficientandeffectivecommunicationatthejobsite.Partneringemphasizespersonalcommunication:"Talk,thenwrite."Thereshouldbeaclimateoftrustthatneithersidewilltrytogainanadvantagefromcandidandfrankcommunications.Whenteammemberscommunicatedirectlyandtothepoint,theyaremorelikelytoavoidmisunderstanding,createclarity,refineissues,andengageinmeaningfulnegotiations.Theythenshouldbeabletofindthebestsolutionforthegoodoftheprojectandteammembers,whichthereaftercanbememorializedwithappropriatecontractdocumentation.

Partneringisnotadversarial.

Partneringdoesnotrequirethatteammembersleavetheirbrainsbehindinfavorofpreservingrelationshipsatallcosts.However,partneringdefinitelyisnotanadversarialprocess.Adversarial

processesincludetakingstepstobuildyourowncaseforyourdecisions;erectingawallofpaperbydocumentingeverypossible

infractioninperformanceorpotentialsourceofaclaim;keepingyourdecisionmakingandrationalesconfidential.Adversarialattitudesassumethatthepartiesareinacompetitive,zero-sumgame,whereonesidewinsonlywhattheothersideloses.

Partneringproposesabetterwayofresolvingprojectissues.Insteadofhidinginformation,informationissharedanddiscussedintheteamcontext.Insteadofover-paperingeveryactionforthepurposeofclaiming(ordenying)additionalcompensation,problemsandoptionsarecandidlydiscussedandateamdecisionisreached.Insteadofcombat,thereisproductivecompetitionofideasandviews,heldinthecontextofpositiveworkingrelationshipsbasedontrustandcandor.Whenteammembersareenabledbypartnering,theycanbe"hard"intacklingaproblem,whilebeing"easy"ontheircolleagueswhomayhavedifferingviews.Withtheexplicitgoalsfoundinthepartneringcharter,teammembersengageinprinciplednegotiationtofindthebestcourseforthegoodoftheprojectandtheteammembers.Partneringprovestheadage:"Conflictisnormal;combatisachoice."

Partneringisnoteasy.

Organizationsmakeabigmistakewhentheybelievethatpartneringcanbecreatedinafewhoursataworkshopandwillthenautomaticallyyieldbenefitstoaproject.Theworkshopisonlythebeginninginbuildingproductiverelationshipsandprocesses.Ittakesconstantattentionandeffortbyeachindividualteammembertopromotepartneringattitudesinwordanddeed.Theteammustalsocommitthetimetocheckinonthehealthofthepartneringrelationshipandtheprogresstowardthemutualgoalsfoundinthecharter.Whensurveys,reportcards,orotherfeedbackprocessesindicateareasforimprovement,theteammustchooseandapplyappropriatecorrectiveaction.Theteammustbepreparedtocommitresourcespeople,time,andmoneytotheseefforts.Thebottomline:

partneringworksonlywhenpeople"walkthetalk"byfulfillingthepartneringcommitmentseveryday.

Partneringmaynotbeabletocreateacompletelyconflict-freeconstructionproject,butitdoesofferachancetodobetter.Theresultisimprovementsinthebottomline(budget,schedule,andprofit),andincludestheopportunitytoreturntoamoresat-

isfyingwayofdoingbusiness.Themostsuccessfulprojectintermsoftimeandmoneycanstillbefrustratingandstress-filledwhenthereisconstantconflictatthejobsiteorintheboardroom.Partneringwillnotsolveallproblems,butitwillmakeeffectiveproblem-solvingpossible.

Partneringoffersateamtheabilitytotakecontroloftheirsituation.Teammembershavetheopportunitytoreachacrossthebarriersofcontract,organizations,layingblame,andriskallocation.Theyaregiventhechance,iftheywilltakeit,topulltogethertowardcommongoalsratherthancompetingforshort-term''wins"attheexpenseofothers.

Whentheteamtrulyembracespartnering,thecorevaluesofpartneringwillbefoundintheworkplace:therewillbevisibleorganizationalsupport,demonstratedpersonaltrust,candidconflict-solvingcommunication,sharedresponsibilityandopportunity,andconcentratedeffortstrivingtowardcommongoals.Whenthesecorevaluescontinuetocharacterizeaworkingrelationship,anefficientandeffectiveteamminimizestheimpactofconflictandmaximizesprojectsuccess.

Chapter3HistoricalDevelopmentandApplicationsofPartnering31Partnering:TheDevelopmentoftheProcess32StrategicAlliancePartnering33ProjectPartnering34PartneringWorldwide35PartneringApplications

31Partnering:TheDevelopmentoftheProcess

Atpresent,partneringprinciplesareappliedinconstructionmostcommonlyonaproject-specificbasis;thatis,theteam-buildingprocessisappliedtoaconstructionprojectatitsinceptionandtherelationshipcontinuesuntiltheprojectiscompleted.Theterm"partnering,"however,hasalsobeenappliedtolong-termrelationsbetweenindependentbusinessorganizations,wherethecooperativeandcollaborativerelationshipsareemployedoveralong-termormultiprojectarrangement.Suchalong-termrelationshipiscalled"strategicalliancepartnering,"whilethemorefamiliarproject-centeredprocessiscalled"projectpartnering,"atermcoinedbymanagersintheU.S.ArmyCorpsofEngineers.

TheConstructionIndustryInstituteattheUniversityofTexasinAustindefinespartneringintermsoflong-termrelationships,whichwouldapplyclearlytostrategicalliancepartnering:

Partneringisalong-termcommitmentbetweentwoormoreorganizationsforthepurposeofachievingspecificbusinessobjectivesbymaximizingtheeffectivenessofeachparticipant'sresources.Therelationshipisbasedupontrust,dedicationtocommongoals,andanunderstandingofeachother'sindividualexpectationsandvalues.Expectedbenefitsincludeimprovedefficiencyandcosteffectiveness,increasedopportunityforinnovation,andthecontinuousimprovementofqualityproductsandservices.1

Bothstrategicalliancepartneringandprojectpartneringplaceimportanceoncollaborative,nonadversarialeffortstoimprovequalityinallaspectsofabusinessrelationship.Instrategicalliancepartnering,timeismadefortheteammemberstodeveloprelationships,collectandevaluateinformation,refinestrategies,andrefocustheirenergiesinlightofmeasurableperformancefactors.Workshopsarearegularcontributortoplanningandnurturingtherelationship.

Inprojectpartnering,theworkingrelationshipmustbebuilt"onthefly"duringtheconstructionproject.Theinitialpartneringworkshopisthuselevatedinimportance,asaretheearlycollaborativeactivitiesoftheteam.Ongoingevaluationofsuccessoccursonaday-to-daybasissothataproject'smilestonesaremet.Whilethequalityofworkandrelationshipsdefinitelyimproves,thereisnotaconcentratedfocusonacontinuousimprovementprocess.

Theessentialdifferencebetweenthetwovarietiesofpartneringisthetimethatcanbedevotedtodevelopthepartnership.Strategicalliancepartneringrequiresmoretimeandacontinuingbusinessrelationship,withitspromiseofthegreaterbenefitsfromcontinuedimprovement.Projectpartneringappliestheconceptsandtechniquesofstrategicalliancepartneringtotheshort-term,project-basedrelationshipofthetypicalconstructionproject.Bothvarietiesofpartneringappeartohavedevelopedfrombusinessmanagementpracticesthatwere

inspiredbythequalitymovementandtechniquesoforganizationaldevelopment.

1ConstructionIndustryInstitute,InSearchofPartneringExcellence,1991.

32StrategicAlliancePartnering

Inthe1980s,thequalitymovementwaschangingthefaceofbusinessmanagementintheUnitedStates.Ideasaboutcontinuousimprovement,andafocusonqualityandcustomersatisfaction,transformedtheinternalworkingsofmajororganizationsintheUnitedStatesandworldwide.Keystothenewworldofworkweretheconcentrationonproductiveworkingrelationshipsandthevalueofteamwork.(SeeChapter12foradiscussionofpartneringasaqualitymethodology.)

Asbusinessmanagerssawthebenefitsofthequalitymovement,theysoughttoexpandthisthinkingtootherrelationshipsinthebusinessworld,outsidethewallsoftheirorganizations.Oneofthefirstthatwasputtothetestwastherelationshipwithconstructioncontractors.Couldtwoseparateorganizationsworktogetherinsomewaytobenefitfromtheirindividualquality-improvementlessons?Couldteam-buildingbeusedtobridgethegapbetweenorganizations?Howcouldthisbeaccomplished?

Strategicalliancepartneringseemedtobetheanswer.Businessmanagerssawthattheycouldusethesamelargeconstructioncontractorstimeandagain,formaintenanceworkaswellasnewconstructionprojects.Clearly,therewasanopportunitytobuildacontinuingrelationshipwithanotherorganization.Ifsuccessful,bothorganizationscouldreapthebenefitoftheirrelationshipforyears.

Instrategicalliancepartnering,theorganizationsrecognizethattheyhavespecificbusinessgoalsincommon.Theyestablishacommitmenttoworktogethertorealizetheircommongoalsbymakingthebestuseoftheirresourcesandpersonnel.Theirjointeffortsareguidedbytheoriesandtechniquesofcontinuousprocess

improvement,leadingtoqualityimprovementandrealizationoftheircommongoals.Sincetheorganizationscommittoalong-termrelationship,therearemanyopportunitiesforcontinuousimprovement.

Theinitialdevelopmentofastrategicalliancepartneringeffortissimilartoprojectpartnering.Themajorelementsarethesame:(1)elicitseniormanagementsupport;(2)conductaninitialworkshoptobeginbuildingtheteam;and(3)usefollow-upworkshopstoreinforcecommitments.Sincestrategicalliance

CaseStudyinStrategicAlliancePartnering2

DupontandFluorDanielCorp.wereearlyinnovatorsinstrategicalliancepartnering.DupontchoseFluorDanielforitsconstructionexpertiseandcommittedtosendone-thirdofitsbusinesstoFluor.Foritspart,FluorcreatedanewdivisionofitsbusinessdevotedtoDuPont'sneeds.Thetwoorganizationshavetheopportunityto"frontload"theirrelationship,toprovideearlyplanningandconsultationaswellasinnovativetechniques.Aseachprojectbegins,managersfromthetwocompaniesuseworkshopsessionstoreviewproceduresandestablishtheprojectteam.Teamsalsotakeonproblemresolution.Thereisanannualreviewofthepartneringrelationship.

partneringisbuiltonlong-termrelationships,thereistheopportunityforconstructionexpertstobeinvolvedfromtheearliestinceptionofaconstructioneffort,addingengineeringexpertisetothedesignphaseofeachproject.

Anotherfeatureofstrategicalliancepartneringistheneedtoworkconstantlyontherelationshipandtorevisittheoriginalgoalstheorganizationsidentified.Experiencemayprovethattheteamneedstochangecourse.Perhapstheunderlyingassumptionsofthegoalswerefaulty;moreworkonteam-buildingisrequired,orthatefficienciesaregreater(orless)thanexpected.Allthesecircumstancesmayrequiretheteamtoconsideralteringtheirgoals.Whenasufficientclimateoftrustisinplace,theseissuescanbeaddressedopenlyandresolvedinduecourse.

Problemresolutionprocessesarealsoakeyfeatureofstrategicalliancepartnering.Theteammustconsiderhowproblemswillbeaddressedandresolved.Problemsmaybetechnicalorprojectoriented

or,inalong-termrelationship,theymayalsobebusiness-orientedissuessuchascontinuedfaircompensationorqualityimprovementtargets.

Strategicalliancepartneringmakesitpossibleforseparateorganizationstorealizethemutualbenefitsofasynergisticrelationship,wherethestrengthsofeachcombinetoenablecontinuousprocessimprovement,betterqualityofwork,andattainment

2JohnBennettandSarahJayes,TrustingtheTeam:TheBestPracticeGuidetoPartneringinConstruction.Reading,England:CentreforStrategicStudiesinConstruction,UniversityofReading,1995.

ofcommongoals.Thiscanbeaccomplishedwhenseparateorganizationscommitthemselvestoanewlong-termrelationshipbasedoncooperation,whichgeneratesnumerousprojectsratherthanfosteringconstantcompetition.Theorganizationscancontinuallyworktoimprovecommunicationsandtomaintainaclient-focusedenvironment.Strategicalliancepartneringalsoallowsorganizationstoshareavisionofqualitywork.

33ProjectPartnering

Projectpartneringappliesalliancestrategiesonasingleconstructionproject.Itwasdevelopedfortworeasons.First,ittakesanextraordinaryamountofcommitment(andalargeandcontinuingvolumeofwork)fortwoorganizationstoformandmaintainastrategicalliance.Anappropriate"match"cannotbemadequicklyortakenlightlybytheparties.Thedegreeofalignmentbetweentheorganizationsplustheirwillandabilitytooperateonthebasisofcontinuousimprovementarerareintoday'sbusinessworld.Whenpossible,strategicalliancepartneringofferstremendousbenefitsthatshouldincreasewithtimeandexperience,butthisisadmittedlynotpossibleformanyorganizations.

Thesecondreasonthatprojectpartneringdevelopedisthatgovernmentandpubliccontractingrequirescompetitivebidding.Publicagenciesareprohibitedfrommakinganyalliancewithacontractorthatwouldguaranteefutureworktotheexclusionofothercontractors.Eachprojectmustbebidasanindependenttransactionandthecontractawardedtothequalifiedbidderwiththelowestcost.Thiseffectivelyprecludesstrategicalliancepartneringasitiscurrentlyusedintheprivatesector.

Thequestionfacingearlyinnovatorsofprojectpartneringwas,"Can

thelessonsandtechniquesofstrategicalliancepartneringbeofbenefitintheproject-focusedenvironmentoftheconstructionindustry?"Theanswerwas"yes"buttheobstaclesseemeddaunting.Policymakersandmanagerswonderedwhetherthereweresufficientshort-termcommongoalstoprovideincentivesforthepartneringrelationshipintheabsenceofamultiyearbusinesscommitment.Sincecontractfundsarefixed,theyasked,whereisthemonetaryincentivetomakecontinuousimprovement?Could

significantmutualbenefitsreallybeexpectedovertherelativelyshorttermofthetypicalpublicconstructionproject?

Projectpartneringappliestheconceptsandtechniquesofstrategicalliancepartneringtothetypicalshort-termconstructionproject.Indoingso,theteamformationandrelationshipbuildingmustbecompressed.Partneringcanonlybeginafterthecontractisawarded.Thus,theessentialfeatureoftopmanagementcommitmentandinvolvementmustbemarshaledquicklyanddisplayeddirectlyandeffectivelytojobsitemanagers.

Relationshipbuildingmustalsobeginattheworkshopamongpeoplewhomayneverhavemetbefore.Theyareaskedtomeetandlearnabouteachother,andthendevelopmutualgoalsforaprojectinthespaceofafewdays.Thisisatallorderforpeoplewhomayhaveingrainedsuspicionsaboutthe"otherside"anddeep-seateddisdainfor"touchy-feely"facilitators.Thebestapproachtoconvincereluctantteammembersistostressthesynergiesofworkingtogetherincontrastwiththecostsofconflict.Combinethiswithemphasisonthebenefitandsuspicion-destroyingvalueofopencommunication,andmostworkshopparticipantswillbewillingtogivetheprocessatryonthejob.

Alongwithbuildingthedesiretoworkwiththenewrelationship,thenewteammustbegivenappropriatetoolsattheoutsettohelpthemgetthejobdone.Forexample,giventhatconflictisinevitable,thenewteamwilldecidehowtheywillhandleconflictwhenitoccurs.Implicitinthisprocessisaclearunderstandingofhoweachorganizationmakesdecisions.Thenewteamispressedtosettimegoalsfordecisionmakinganddesignaspecificescalationladderthatwillelevateproblems,whennecessary,tothenextlevelofmanagementtokeeptheprojectmovingforward.Theseprocesstoolswillensurethatproblemswillnotgetstuckonsomeone'sdesk,and

lackofdecisionmakingwillnotfesterintoaproject-damagingsickness.

Oneimportanttoolforsuccessisthepartneringcharteradoptedattheinitialpartneringworkshop.Projectpartneringemphasizesthecharterasalivingmemorialofhighaspirationsandconcrete,objectivecommitmentstoactualachievementtargets.Itembodiesthecommongoalsofthenewteamandbecomesthetouchstoneforeachmember'sefforts.Writtenattheinitialpartneringworkshopatthestartoftheproject,thecharterbecomespartoftheworkenvironmentfortheteam.Itisposted

atthejobsiteandshouldbepartofeveryproblem-solvingmeeting.Partneringisworkingwhenallteammemberscanaffirmthattheyarefurtheringtheefforttowardtheteamvisionandgoals.Wheneachteammembercandeclarethatagreed-uponpositiveandprofessionalattitudestowardothersarethestatusquoatthejobsite,partneringisareality.Mostimportantly,whenproblemsaresolvedanddecisionsmadeintheinterestofteamandprojectsuccess,partneringisdefinitelyworking.

34PartneringWorldwide

PartneringisbeginningtospreadfromtheUnitedStatestobusinesscommunitiesaroundtheworld.Researchersreportmostpartneringexperienceinothercountriescomesintheformofstrategicalliancepartnering.Inadetailedreview,researchersattheUniversityofReadinginEnglanddescribehowpartneringhasbeenimplementedintheUnitedKingdom.3Itissignificanttonotethatthecasestudiescitedbytheauthorsincludemoreexamplesofsupplier/manufacturerpartneringthanconstructionindustrypartnering.Thesesupplier/manufacturerrelationshipshavebeencalled"supply-chainpartnering,"whereanongoingrelationshipisbuiltoncontinuousimprovementintheinteractionbetweenthesupplierofcriticalmaterialsandthepurchaserorenduser.Examplesalsoincludepartneringbetweencustomersandsuppliersofcriticalmanagementservices.ThereisadefinitelinkbetweentheprinciplesofthequalitymovementandthestrategicalliancesdescribedbyBennettandJayes.

TheU.S.DepartmentofStatehasusedprojectpartneringonforeignbuildingprojects.ManyofthecontractororganizationsinvolvedhavebeenUnitedStatesorEuropeanorganizations,buttheStateDepartmenthasnowusedpartneringinatleastoneprojectinvolvingahost-countrycontractingfirm.

3BennettandJayes,supran.2.

35PartneringApplications

Partneringhasbeenappliedinanumberofareaswherecontractperformancedependsonproductivecooperationbetweentheparties.Experienceshowsthatpartneringcanbeadaptedtoaddresstheparticularneedsoftheworkingrelationshipsinvolved.Thus,smallconstructionprojectsadaptpartneringworkshopprocedures;environmentalprojectsexpandtheconceptofworkshopparticipantstoincludestateandfederalregulatorsintheteam;andpartneringhasbeenusedinprojectsoutsidetheconstructionindustry.

ASmallProjectPartnering

Earlypartneringeffortswerelimitedtolargeprojectswhereitwouldbeeasiertojustifythetimeandeffortrequired.Aspartneringbecamemorefamiliar,managerssoughttousethetechniqueonsmallerprojects.TheU.S.ArmyCorpsofEngineershaspublishedacasestudyshowingthatpartneringcanbeadaptedandusedtoadvantageinsmallerprojectsthanwasoriginallythoughtfeasible.4

ThepurposeoftheDraytonHallStreambankProtectionproject,forexample,wasstabilizationoftheerodingbankofastreamwhichwasthreateninganationalhistoricsite.Thetotalprojectcostwaslessthan$200,000andworkwascompletedwithinthreemonths.Ashortenedagendawasthemajoradjustmentreportedinthecasestudy.Whileparticipantsmetforonlyone-halfday,theywereabletoestablishlinesofcommunication,clarifyrolesandresponsibilities,andshareperceivedproblems.Theythencreatedandsignedapartneringcharter.Duringthecourseofconstruction,issueswereresolvedquicklyandprojectmodificationsweremadewithlittleimpactonthebudget.

4SusanL.Podziba,"SmallProjectsPartnering."Washington,DC:U.S.ArmyCorpsofEngineers,ADRCaseStudy94-ADR-CS-10,Jan.1994.

BEnvironmentalProjectsPartnering

TheU.S.DepartmentofDefense(DOD)hasusedpartneringtoimproveperformanceandresponsivenessinenvironmentalprogrameffortsincludingcompliance,cleanup,,pollutionprevention,andconservationefforts.Earlyon,managerswhowereinterestedinusingpartneringprinciplesrealizedthatthedefinitionofworkshopparticipantswouldhavetobeexpandedforenvironmentalprograms.Thetypicalpartneringrelationshipofownerandcontractor/subcontractorispresentinmanyenvironmentalefforts(especiallycleanupofpollutedsites),butinenvironmentalprogramsthereareothersignificantpartieswhohaveaninterestinthefinalproductandmight,therefore,beatthepartneringtable.Partneringparticipantsinenvironmentalprogramsmayincluderegulatoryagenciesatthestateandfederallevels,localgovernments,andcitizenadvisoryboards.Thepartneringteamwillalsoberequiredtoconsiderhowtocommunicatewiththosewhohaveaninterestintheeffortbutwhomaynotbepartoftheformalpartneringeffort.Effectivepublicinformationandpublicinvolvementprogramsmayberequired.

Alongwiththeneedtoinformthepubliceffectively,keypartneringprinciplesinenvironmentalprogramsareconsensusdecision-makingandanagreed-uponprocesstoresolvedisagreementsamongtheparticipants.Insituationswhereadditionalpartieshavegoalsthatmaynotbeascloselyalignedasthoseoftheowner,designer,andcontractor,itisdoublyimportanttohaveaprocessinplacewhichreducesthetimededicatedtoconflictmanagement.

CSupply-ChainPartnering

Partneringhasbeenappliedtothesupplier/manufacturerrelationshipsinherentinavalue-addedbusinessrelationshipwhere,ateachstepin

theproduction,manufacturingprocessesaddvaluetothefinalproduct.Typicalofthistypeofpartneringistheexperienceofasupplierofbuildingmaterialstoamajorhomebuilder.Thetwobusinessesshareinformationaboutproductneedsandmanufacturingtechniquessothatproductscanbetailoredanddeliveredinatimelymannertothejobsite.Thecontractoroftenassiststhesupplierbyinvestinginfacilitiesandcapacity.

DServiceSectorPartnering

BennettandJayesin1995reportedanumberofcasestudiesofpartneringintheservicesector,particularlymaintenanceandfacilitiesmanagementservices.Thesearetypicallystrategicalliancepartneringarrangements,wherelong-termrelationshipsarecharacteristic.

EInformationTechnologyServicesPartnering

Governmentagenciesandprivatecontractorshaveusedpartneringinadministeringcontractsforinformationtechnology(IT)services.Theselong-term,multifacetedcontractscallforthecontractortoprovidevariedservices,software,andhardwaretovariousfunctionalunitsoftheagency(thecustomersfortheservices).ComputerDataSystems,Inc.(CDSI),hasreportedsuccesswithtwofederalagencieswhenpartneringwasusedtoimproveperformanceandworkingrelations.5Theprocessofpartneringwasborrowedfromtheconstructionindustryfortheseefforts.(Oneofficialcommentedthatbuildingasoftwaresystemissimilartoconstructingabuilding.)CDSIreportssignificantadaptationsinthewaypartneringhasbeenimplementedforITprojects.Forexample,bi-weeklymeetingsofallkeydecisionmakersaresettodiscussthepartneringrelationship.''Lessonslearned"sessionsfollowsignificantactivities,withassessmentsofwhatwentwellandwhatcouldbeimproved.Participantsreportindirectbenefitsintheformofpositiveworkingrelationshipsthathaveimprovedcooperationwithintheteam.Surveysofcustomersatisfactionalsohavedocumentedsteadyimprovement.

Theaboveexamplesshowthatpartneringprinciplescanapplyoutsidetheconstructionindustrytorelationshipsthatincludecontractsformaterialsandservicesandmultiplestakeholders.Indeed,partneringcanapplytoanycontractualrelationshipthatwillbenefitfromcloser

cooperationandcommunicationamongtheparties.

5StephenM.Daoust,JeanMurphy,andStephanieSchultz,"PartneringwiththeFederalGovernmentAContractor'sPerspective,"ContractManagement,Feb.Apr.1997.

Chapter4BarrierstotheUseofPartnering41UnderstandingBarriers42ConstructionIndustryBarriers43OrganizationalBarriers44IndividualBarriers45PlantoOvercomeBarriers46Success

41UnderstandingBarriers

Partneringrequiresthatorganizationsandtheindividualswithinthemmakeafirmcommitmenttochangingadversarialattitudesandconfrontationalbehaviors.Thissoundssimpleenough,butdoingitisnotalwayseasy.Partneringconceptsaresometimesmetwithresistanceintheconstructionindustry,evenasmoreandmoreorganizationstoutitsbenefits.Why?Whatpreventssomefromdoingwhatothershavedonesosuccessfully?Whydosomepeopleresistchangingpastworkhabits?Whycan'teveryoneonaconstructionprojectautomaticallyworkwelltogetherandcooperate?

Thefirststepontheroadtoachievingchangeistorecognizethebarriersthatholdorganizationsandindividualsback.Onlythencanaplanbedevisedtoovercomethem.Thischapterfocusesonidentifyingsomecommonpartneringbarriers,considerswhythesebarriersexist,andoutlinesbasicstrategiestoovercomethemtoallowpartneringtobesuccessfullyundertaken.

42ConstructionIndustryBarriers

Thoseintheconstructionindustryrecognizethefactthattheconstructionprocessitselfcontributestomakingtheirrelationshipsmoreadversarial.Constructioncontractingisahigh-riskendeavor.Thecompetitivebiddingprocesscombinedwiththeinherentuncertaintiesofconstructionmakeforlowprofitmarginsandpotentiallyseriousloss.Contractsattempttoallocatetheriskbetweenthecontractingparties,buttheycannoteliminateriskaltogether.

Aslongasowners,designers,andcontractorsviewriskandcompetitionasinevitablycausingadversarialrelationships,thesituationwillcontinue.Thegreatestsinglebarriertopartneringintheconstructionindustrymaybetheresistanceofindividualstoacceptthenotionthatadversarialrelationshipsarenotinevitable.Oncethisbarrierfalls,teammembershavetheabilitytoexamineotherorganizationalandindividualobstaclesthatlimitthepotentialbenefitsderivedbypartnering.

43OrganizationalBarriers

Constructionmanagersquicklydiscoverthattheirorganizationsarelikeotherorganizationstryingtomakefundamentalchangesincorporateculture.Changeisoftenmetwithresistance.Seekingchangetoincorporatepartneringintheconstructionprocessisnoexception.Someofthemostcommonbarriersintheconstructionindustrytopartneringareidentifiedhere.

AStatusQuoThinking

"That'sthewayithasalwaysbeendoneinourcompanyandweknow

itworks!"Organizationsmayresistchangebecauseittakeseffortandenergytochange.Seniormanagersneedtoseeaclearbenefittoovercomethebeliefthat,"ifitain'tbroke,don'tfixit!"Theoldwayofconductingbusinessiscomfortablebecauseitisunderstoodandpredictable.Movingoutofthecomfortzoneinvolves

stressandrisk-taking.Manyorganizationsareunwillingtotakeonadditionalrisk.Withpartnering,resistancetochangecanbeovercomebymakingmanagementawareofthebottom-linebenefitsofpartnering.

BAdversarialMind-Set

"Ourorganizationisgoingtogetallitcananddoesn'tcarehowotherssurvive."Thiscorporatemind-sethasasingleobjectivedrivenby"me"ratherthan"us"attitudesandawillingnesstofighttomaintaintheupperhand.Thismayworkonceortwice,butovertimeareputationforadversarialmanagementwillbeestablished,anditwilldrivegoodorganizationsawayfromcontractingwithsuchafirm.Organizationswithanadversarialmanagementstyleneedtounderstandthatthisapproachiscostingthemalong-termexistence.Learningtoworktogetherinadynamicpartneringrelationshipwillreapthemsynergisticbenefitsthatsimplycannotbeachievedbyisolationism.

CPolicies,Rules,andRegulations

"It'sagainstthecompanyrulestodothis."Thisisofteninvokedbyorganizationstostopchangeinitstracks.Inconstruction,toooftenpolicies,rules,andregulationsreflectoldmanagementpracticesthatwerecreatedwithoutinformationaboutnewmethodssuchaspartnering.Therulesneedtobereviewedandrevisedasnecessarybeforethepeopleheldaccountabletocomplywiththemwillfeelcomfortableinriskingchange.

DInternalConflict

"Thisismyunit'sresponsibility,notyours!"Overlapping

responsibilityinanorganizationmayresultininternalconflict.Partneringcanbedifficultifinternalconflictisnotresolved.Whenanorganizationlacksafullyoperationalinternalteam,itisinapoorpositiontobuildanexternalteamforaproject.Aninternalteam-buildingsessionpriortopartneringcanhelpovercomethisbarrier.

EFearofCooperation

"I'mnotgoingtogiveanybodyoutsidethisorganizationanyinformationthatmayhurtourcompany'scompetitiveadvantage!"Somemanagersaresuspiciousofbeingtakenadvantageofbyotherorganizations.Theydonotwanttoriskbeingusedorlosingtheproprietaryideasthatmaketheirorganizationsuccessful.Thesefearscanpreventmanagersfromacceptingpartneringconceptsasbeneficialtotheirorganization.Beforeorganizationalchangescanoccur,managersneedtounderstandhowsharinginformationcanbenefiteveryorganizationinaprojecttoreachcommongoals,andthatmeansareavailableduringthepartneringprocesstoprotectproprietarydata.

FSuspicion

"Thatcompanycan'tbetrusteditmusthavesomehiddenmotiveforwantingtousepartnering!"Inanindustrywhereitiscommontohaveinformal,long-termrelationshipswithspecificcompanies,itmaybedifficulttobreakintoandparticipatewithestablishedgroups.Inaddition,asinglebadexperiencewithaspecificorganizationcanhavenegativeconnotationsforanextendedperiodoftimethereafter.Wheneitheroftheseeventshashappened,itmaycausealackoftrust.Forpartneringtowork,theorganizationmayhavetoworkinternallyandexternallytoaddresstheseproblemswhilecandidlyandexpresslyacknowledgingthattrustwillnotbeautomaticandwillneedtimetodevelop.

GRisk-Taking

"Wheneveramistakeismadeinthiscompany,somebodywillpayfor

it!"Inacorporateatmospherewhereblameisprominentlyplacedandheadsroll,managerswillbereluctanttoriskchange.Theymayfeelthatthereissafetyonlyindoingwhathasbeendonepreviouslywithoutmishap.Whowantstotakeariskwhenitmaynotworkandthepersonalconsequencesaresevere?Thisisacorporateculturethatcannotbechangedunlessseniormanagementcommitstoalessrigidstructureandcommunicatesittoeveryoneintheorganization.

HEconomicRestraint

"Partneringjustwastestimeandmoney."Often,theperceivedtimeandmonetaryrestraintsonprojectscanimposesignificantbarrierstopartnering.Projectschedulingmaybefast-tracked,whichputspressureonprojectmanagerstogetthejobstartedassoonaspossible,ifnotsooner.Committingpersonnelresourcestoapartneringworkshopmaybeseenasdelayingthestartoftheproject.Also,somemanagersmayfindfundstopayfortheworkshopandfacilitatordifficulttojustifywhenthebenefitsofpartneringbenefitsarenotreadilyapparenttothem.Thesemanagersneedtorecognizethattheeconomicbenefitsofpartneringarereal,butthattheymayhavetowaituntiltheendoftheprojecttorealizetheeconomicimpact.Asthepoolofstatisticaldataontheresultsofpartneringgrows,thereturnintimeandmoneywithlessdisputescanbeobjectivelydemonstratedandcanbridgetheexpectationgapforthosewithnoorlimitedpartneringexperience.

IOrganizationalStructure

"OurcompanyhasapolicythatIcan'ttalktoyou."Manyorganizationsrestrictcommunicationswithotherorganizations.Often,intheseorganizations,therearewrittenpoliciesorpastpracticesthatobstructcommunicationsacrossorganizationallines.Partneringcanbreakdownthisobstaclebydemonstratingtoseniormanagersthebenefitsofcommunicationsinprojectproblem-solving,withresultantsavingsoftimeandmoneytotheircompany.

JLackofSeniorManagementSupport

"Dowhatyouthinkisbest."Afatalbarriertopartneringiswhen

thereisalackofaclearexpressionoftopmanagementsupport.Ifthereisonly"lipservice"supportforpartneringbymanagement,itlessensthelikelihoodthatthosewhomightotherwiseimplementpartneringwillbewillingtoundertakearisk.Seniormanagementneedstobeclearandconsistentinitssupportofpartneringfromthebeginningoftheprojecttoitsconclusion.

KMisconceptions

"Partneringisanothernameforcompromise."Managerswhoareunfamiliarwiththeconceptofpartneringmaythinkthatitcreatesnewlegalrightsorisawaytochangecontractterms.Theyneedtounderstandthatpartneringclearlyisnotacontract.Itisachangeinattitudethatcancreateanopportunityforeachpartytorealizeitsexpectationswithoutrequiringanycompromiseoftheircontractualrelationship.

44IndividualBarriers

Individualscanalsobesignificantbarrierstobeginninganewpartneringeffort.Whenindividualsdonotbelieveinpartnering,theymaypassivelyharmtheprocessbybeingunwillingtochange.Sometimes,theseindividualswillgoevenfurtherandtrytounderminethepartneringprocess.Consequently,individualconcernsaboutpartneringneedtobesurfacedandaddressedasearlyaspossibleinthepartneringprocess.Internalpre-workshopmeetingswithineachorganizationarethebesttimetoaddressindividualperceptionsthatmayaffectpartnering.

AAttitude

"Partneringwillneverwork!"Negativepersonalattitudesaredetrimentaltoeffectiverelationships.Partneringisnoexception.Iftopmanagementpermitsnegativeattitudestoexistinsteadofworkingtochangethem,partneringwillnotbeassuccessful.Thisisespeciallytrueiftheindividualwiththenegativeattitudeisaseniormanageratthejobsite,suchastheprojectmanager.

BLackofEmpowerment

"I'minchargehereandI'llmakethedecisions!"Someindividualscannotletgoofbeingtotallyincharge.Theyarenotabouttorelinquishdecision-makingauthoritytoanyoneelse.Whenother

individualsarenotempoweredtomakedecisions,notonlycandecisionsbedelayed,butcreativesolutionstoproblemsareoftenstifled.Thesedecisionmakersneedtobemadeawareofthebenefitsofempowerment,and,atthesametime,bereassuredthattheirrealconcernscanbeaddressedbythepartneringteam.

CRealSupport

"Allright,whosestupiddecisionwasthis?"Organizationsthatempowertheirmanagerstomakedecisionsmustsupporttheexerciseofthatauthority.Managersmaynotalwaysmakethebestdecisions,butiftheyarefrequentlysecond-guessedorchastised,theywillavoidmakingdecisionsinthefuture.Seniormanagersmustdemonstratesupportforindividualmanagersevenwhentheydonotagreefullywiththedecisionsreached.Iffront-linemanagersresponsiblefortheprojectcommittopartneringfortheproject,seniormanagementwillundercutitsgreatestbenefitsbyattackingisolateddecisionsbeforetheprojectiscompleteandpartnering'sfullbenefitsaremeasurable.

DParadigmParalysis

"I'vemadeupmymind,sodon'twastemytimetryingtochangeit."Anopenmindtoconsideringnewandinnovativeideasishelpfultoacceptingtheorganizationalchangesbroughtaboutbypartnering.Denyingthepossibilityforimprovementisasurewayofmaintainingoldproblems.Whenmanagersbelievethatpartneringisawasteoftimeandthatnothingwillchange,whocanbesurprisedwhennothingdoeschange.Itisaself-fulfillingprophecy.Theneedtoovercomethisbarrierearlyinthepartneringprocessisessential.Atthepartneringworkshop,especiallywhenanorganizationhasnotparticipatedinpartneringpreviously,thesubjectofparadigmshiftwilloftenbeaspecificitemraisedfordiscussion.

EAll-Knowing

"Ialreadyknoweverythingthereistoknowaboutpartnering;whyshouldIwastemytimewithit?"Thisisanindividual'sfailuretorecognize

thateveryprojectisunique.Whenanindividualhasthisattitude,partneringcommunication,team-buildingandproblem-solvingwillbelessrobust.Thisindividualneedstoberemindedthatprojectproblemscanvary,anddifferentparticipantswillbeinvolved,resultinginsolutionsuniquelytailoredtothisspecificproject.

FDisinterest

'Justleavemealonetodomyworkmyway!"Thereareindividualswhoarenotinterestedinparticipatingonteams.Theymaynotrealizethevalueofteamworkorhowitcanimprovetheirindividualworkingenvironment.Workshopteam-buildingexerciseswillhelptodemonstratethebenefitsofpartneringtotheseindividualsthroughexperience.Thisshould,inturn,spurtheirgreaterinterestinbeingontheteam.

GIndecision

"Idon'tknowifweshouldreallybedoingthisnow."Bythetimeanindecisivepersongetsaroundtoagreeingtoparticipateinpartnering,theopportunityforsuccessfulpartneringmayhavebeenmissed.Partneringcanhelpevenifstartedlateinaproject,butcanneverbeaseffectiveaswhenitisbegunatprojectinception.

"Iknowmorethantherestofyou!"Someindividualsfeeltheydonotneedateamtodecidewhattodobecausetheyalreadyknowwhat'sbest.Theyhaveanegoblock.Thisattitudecaninhibitfulldevelopmentofjointproblem-solvingskillsbytheteamandresultinlackofacceptanceofothers'decisions.Theteam-buildingexercisesinaninitialpartneringworkshopcanbeusedtoexplorethebenefitsof

groupdynamics,butexploringself-esteemissuesunderlyinganegocentricattitudemayrequiremorethanonepartneringsession.Thisindividualmayneedtoexperiencepersonallythevalueofteamproblem-solvingduringpartnering.

IDoubt

"Well,Ijustdon'tknowaboutthisand,ifwhatIhearistrue,thismightnotwork."Thisdiscussionusuallybeginswithanindividualstatingaproblemthatoccurredonapriorprojectthatusedpartnering.Then,thatsamepersonsuggeststhatthispastexperienceprovespartneringdoesnotwork.Thiscanbeabarriernotonlytothisperson,butthedoubtcanspreadtoothers.Itshouldnotbeignored.Whenindividualshaveexperiencedpastprocessproblems,theymaybeunwillingtochangeunlesssomeoneelsecanexplainwhathappenedandwhy.Whenexplanationsareprovided,thenthecurrentpartneringteamcancraftsolutionsbylearningfromearliermistakes,ratherthanabandoningtheprocessaltogether.

JSelf-Interest

"Idon'tseewhat'sinitforme."Somesaypartneringisofferingthemnothingexceptmorework,morepeopletodealwith,andalossofpower.Theymayalsofeelthattheyarenotrewardedfortheirefforttosupportpartneringonaproject.Atapartneringworkshop,individualexpectationsandinterestsneedtobeontheagenda.Personalinterestscanbesatisfiedinpartneringasthebenefitsofteamworkareexaminedintheworkshop.

KTheOpposingForces

TheforcefielddiagraminFigure41showsthedrivingforces(interests)andtherestrainingforces(barriers)tobeginningpartnering.Aforcefielddiagrammaybeusefulasamanagementanalysistooltoidentifyandassessthestrengthofforcesthatarepromotingchangeandthosethatareresistingit.Objectivelyassessingforceswhen

commencingpartneringallowsmanagerstoplanstrategiestoencouragechangeandovercomebarrierstotheprocess.Aforcefielddiagramcanbeusedtohelpinpreparingfortheorganization'spartneringeffort.Keepinmindthateachopportunitytousepartneringmaypresentadifferingsetofforceswithdifferingstrengths.Whenallthingsareconsidered,commit-

Figure41ForcesThatMustBeConsidered

tedorganizationsandknowledgeablepeoplearetheoneswhoeithermakeorbreaktheprocess.Ananalysisoftheinterestsandbarriersoforganizationsandindividuals,however,shouldhelptoexpeditethechangeandassurebetterpartneringrelationships.

45PlantoOvercomeBarriers

Whenpartneringisproposed,potentialorganizationalandindividualbarriersshouldbeconsideredwhichpreventpartneringfromstartingorderailitafterwards.Theproponentofpartnering

shouldacceptthelikelihoodofthesebarriersandcreateaplantoovercomethem.Developingsuchaplandoesnothavetobeadifficultortime-consumingtask.Thefollowingmethodsmaybehelpfultocreateaplanforovercomingbarriersandbuildingacceptanceforpartnering.

ATraining

Acriticalfirststepforanyorganizationistotrainindividualsaboutpartnering.Trainingwilltypicallyclarifythepartneringprocessitselfand,ideally,willcorrectanymisconceptionsindividualshaveaboutit.Whentrainingisheld,barrier-orientedquestionsshouldbeanticipatedandcandidlyaddressed.(SeeChapter1,FrequentlyAskedQuestions.)Apre-trainingwrittenassessmentcanbeusedtorevealspecificissuesparticipantsmayhaveandtostructureatailoredtrainingprogram.

BPublications

Publicationsaboutpartneringareanexcellentsourceofinformationthatcanbeusedtoexplaintheprocessandtorelateindividualexperiencewithit.Theycanbefoundincasestudies,magazinearticlesandtradejournals.(SeetheBibliography.)Frequently,thesepublicationsdescribethebarriersfacedbyanorganizationonaspecificprojectandhowtheywereovercome.Theyalsocanreflecthowindividualattitudeswerechangedandindividualinterestsmetbypartnering.Thesearevaluablelessonslearnedfromothers'experiencesandprovideanorganizationadditionalinformationinawrittenmediawhichmaybemorepersuasivetosomeinovercomingtheirresistancetopartnering.Theuseofwrittenmaterialsalsomaybehelpfultoreinforceconceptsduringgroupdiscussionsinpartneringsessions.

CCommitment

Manyofthebarrierstoinitiatingpartneringhavedifferentsourcesbutshareacommonresult:theydiminishthecommitmentpeople

arewillingtomaketodothethingsnecessarytobeginanewinitiativesuchaspartnering.Afurthercomplicatingfactorstemsfromthedifferinglevelsofcommitmentbetweenthosewhoaredoubtfulaboutchangesandthosewhoarebelieversinthevalueofthenewpath.Organizationsmustbeawarethatastrongaffirmationofpartneringbyafullycommittedsupportermayhaveanintimidatingeffectonthosewhosecommitmentisweak.Itmaybehardforpeoplewithdifferingcommitmentstopartneringtostarttocommunicateeffectivelyandtotrustoneanother.Organizationsmustavoidoversellinganychangeinitiative;itisbettertobringalongpartneringdoubtersbyaddressingtheirconcerns,educatingtheirignorance,andexercisingpatience.Commitmenttopartneringwillcomewithknowledgeandunderstanding.

DSuccessStories

Anothereffectivetooltoovercomebarriersistopublishsuccessstoriesfromotherprojectsthatrelaterealexperience.Successstoriescanbeusedtoexplainhowexpectationsandinterestscanbemetinreallife.Theycanengageindividualstomakecomparisonswithpersonalexperience.Theyarepowerfulvalidationoftheoriesthatmaybeabstracttothem.Whentheoryisillustratedwithrealexperience,confidenceincreasesandsometimesanenergizingchallengecanbefound:''Iftheycandoit,socanwe!"

Successstoriescanprovideconvincingevidenceofpartnering'sbenefits.Forthosewhomustseeconvincingdatabeforetheycanacceptanewinitiative,thereisampleevidenceofbothobjectiveandsubjectivebenefitsofpartneringfoundinthesestories.

EInformalExchange

Professionalcolleaguescanofferawealthofknowledgeandexperienceaboutpartnering.Often,individualswilltrusttheircolleagues'evaluationofpartneringmorethananyothersource.Thiscanbedonefirsthandbynetworkingwithcolleagues,oranorganizationcanraisetheissueataprofessionalconferenceormeeting.Providinganopportunitytolearnfromcolleaguesisagreatwaytoestablishconfidenceinpartnering.

46Success

Therecanbemanybarrierstobeginningapartneringprogram.Someareorganizationalandothersarisefromindividualexpectations.Itonlytakesafewtoblockchange.Therefore,barriersneedtobecarefullyanalyzedandquicklyaddressed.Throughcarefulassessmentofthebarriers,aplantoovercomethemmaybedevelopedtoplacepartneringfortheprojectonthepathmostlikelytoproducesuccessforallpartiesinvolved.

Chapter5EvaluatingtheBenefits:IsPartneringWorththeEffort?51ValueAdded52AffirmationofDirectBenefits53BenefitEvaluation54HardDataonPartnering55SubjectiveEvaluationofPartnering56TheRealBenefitsofPartnering

51ValueAdded

Similartoprogramsundertakenbymanagersinthebusinesscommunity,managersofconstructionprojectswouldliketoprovideaddedvaluetowhattheydo.Theideaofaddingvalueunderliesbusinessimprovement.Infact,oneofthebasictenetsofbusinessimprovementisthatallstepsinanendeavorthatarenon-valueaddingshouldberemoved.Thismaybeeasiersaidthandonebecausetoeliminatestepsthatdonotaddvaluerequireschange.

Partneringrequiresadramaticchangeinthecorporatecultureinmostorganizations.Beforeundergoingthechange,therefore,itisfairforprojectmanagerstoquestionthevalueofpartnering.Inevaluatingthevalueofthepartneringchange,twotypesofvalueorbenefitareconsidered:directbenefitsandindirectbenefits.

ADirectBenefits

Organizationsandindividualscanquicklygraspdirectbenefitsbecausetheyareusuallymeasurable.Directbenefitsofpartneringincludemeasurableimprovementssuchasreductionoreliminationofclaims,moreefficientuseoftime,improvedsafetywithlessaccidents,minimizationofformaldisputes.andincreasedvalue-engineeringsavings.Inconstructionprojects,thesedirectbenefitsarereadilyquantifiable.

BIndirectBenefits

Sometimesbenefitsarenoteasytoquantify,yetorganizationsreporthavingreceivedthemasaresultofpartnering.Benefitsthatdonotlendthemselveswelltomeasurementareoftenreferredtoasindirectbenefits.Usually,indirectbenefitsarefoundinanecdotalstoriesworkersrecallwhentheprojectiscompleted.Theyhavesomewonderfulexperiencestorelate,butfewoftheseexperiencescanbeobjectivelymeasured.Theseexperiencestypicallyreflectthatanenjoyableworkplaceenvironmentwascreated,therewasagreaterfocusonqualityratherthanconflict,therewasimprovedcustomersatisfaction,andanenhancedbusinessreputationresulted.

52AffirmationofDirectBenefits

Anumberoforganizationsandexperiencedprofessionalshaveaffirmedthedirectbenefitsofpartnering.Thissectionreviewssomeofthebenefitscitedbytheseauthorities.

AAssociatedGeneralContractorsofAmerica

OneofthefirstorganizationstoevaluatethebenefitsofpartneringwastheAssociatedGeneralContractorsofAmerica(AGC).Initsgroundbreakingpublication,Partnering:AConceptforSuccess(1991),theAGCidentifiesbenefitsfortheowner,contractors,

designers,subcontractors,andsuppliersfromapplicationofthepartneringprocess:

BenefitstotheProjectOwner

·Reducedexposuretolitigationthroughopencommunicationandissue-resolutionstrategies.

·Lowerriskofcostoverrunsanddelaysbecauseofbetterscheduleandcostcontroloverproject.

·Betterqualityproductbecauseenergiesarefocusedontheultimategoalandnotmisdirectedtoadversarialconcerns.

·Potentialtoexpediteprojectcompletionthroughefficientimplementationofthecontract.

·Opencommunicationandunfilteredinformationallowingforamoreefficientresolutionofproblems.

·Loweradministrativecostsbecauseofeliminationofdefensivecase-building.

·Increasedopportunityforinnovationthroughopencommunicationandtheelementoftrust,especiallyinthedevelopmentofValueEngineeringChangeProposals(VECPs)andconstructabilityimprovements.

·Increasedopportunityforafinanciallysuccessfulprojectbecauseofnonadversarialwin-winattitude.

BenefitstoContractor(s)

·Reducedexposuretolitigationthroughcommunicationandissue-resolutionstrategies.

·Increasedproductivitybecauseofeliminationofdefensivecase-building.

·Expediteddecision-makingwithissue-resolutionstrategies.

·Bettertimeandcostcontrolovertheproject.

·Lowerriskofcostoverrunsanddelaysbecauseofbetterscheduleandcostcontroloverproject.

BenefitstoDesignersandConsultants

·Minimizedexposuretoliabilityfordocumentdeficienciesthroughearlyidentificationofproblems,continuousevaluation,andcooperative,promptresolutionwhichcanminimizecostimpact.

·Enhancedroleindecision-makingprocess,asanactiveteammemberinprovidinginterpretationofdesignintentandsolutionstoproblems.

·Reducedadministrativecostsbecauseofeliminationofdefensivecase-buildingandavoidanceofclaimadministrationanddefensecosts.

BenefitstoSubcontractorsandSuppliers

·Equityinvolvementinprojectincreasesopportunityforinnovationandimplementationofvalueengineeringinsubcontractedwork.

·Potentialtoimprovecashflowduetofewerdisputesandwithheldpayments.

·Improveddecisionmakingavoidingcostlyclaimsandsavingtimeandmoney.

·Enhancedroleindecision-makingprocessasanactiveteammember.

·Increasedopportunityforafinanciallysuccessfulprojectresultingfromnonadversarialwin-winattitude.

BAmericanArbitrationAssociation

TheAmericanArbitrationAssociation(AAA),inthepamphlet,"ConstructionIndustryDisputeAvoidanceThePartneringProcess,"listsnumerousidentifiablepositiveoutcomesofpartnering.Theyinclude:

·Reducedexposuretolitigationthroughopencommunicationsandissue-resolutionstrategies.

·Lowerriskofcostoverrunsanddelaysbecauseofbettertimeandcostcontrolovertheproject.

·Betterqualityproductsbecauseenergiesarefocusedontheultimategoalandnotmisdirectedonadversarialconcern.

·Potentialtoexpediteprojectcompletionthroughefficientimplementationofthecontract.

·Opencommunicationallowingformoreefficientproblem-solving.

·Loweradministrativecosts.

·Increasedopportunityforinnovationandvalueengineering.

·Increasedopportunityforfinancialsuccessandimprovedcashflow.

·Anenhancedroleindecision-makingprocess.

TheAAA,whileinthebusinessofdisputeresolution,clearlyunderstandsthatthebestdisputeresolutionisprevention.Theyfurtheracknowledgethatpartneringisaprovenmethodofdisputeavoidancewhereeveryonebenefits.

In1996,theAAApublishedareportentitled,"BuildingSuccessforthe21stCentury:AGuidetoPartneringintheConstructionIndustry."Thereportcitesevidencefromsurveysofprojectteamsthatusedpartneringasakeyimprovementstrategy:

·Ninetypercentoftheparticipantssurveyedsaidpartneringimprovedthequalityoftheproject.

·Fivepartneredprojectswithtotalinstalledcostsof$492millionaveraged7percentsavings.

·Of30partneredprojectswithtotalcostof$684million,83percentwerecompletedearlyorontime.

CUnitedStatesDepartmentofDefense

Inpublicsectorcontracting,theU.S.ArmyCorpsofEngineerscommentonthebenefitsofpartneringinitspartneringcasestudies.FurtherexamplesofthedirectbenefitsofpartneringarefoundinPartneringGuideforEnvironmentalMissionsoftheAirForce,Army,Navy(UnitedStatesDept.ofDefense,July1996).

BenefitsofPartneringintheDODEnvironmentalMissionPerspectivesfromtheField

Therealimpetusforpartneringisthefactthatthepeopleinvolvedinimplementationarehearingthatitworks.Facedwithdifficultyinpersuadingorganizationsandpeopletoworktogether,programimplementersseepartneringasareal-lifesolution.Thefollowingaresomeoftheearlyresultsfromthefield:

AtMCBCampLeJeune,apartneringteamdevelopedanexpeditedprocessthatisintendedtoshortenstudytimefromanaverageof38monthsto19months.Onthefirstsitewheretheprocesswasused,theteamwasabletocompleteaRecordofDecisionin10months.Atothersiteswheretheprocessiscurrentlybeingapplied,theteamestimatestheywillbeattheoldprocessbyatleast13months.

TheBayouBonfoucaremediationprojectisnowprojectedtobecompletedthreetofouryearsaheadofschedule.Participantsgivemuchofthecredittopartnering.Onesaid:'Theprocessisworkingbecausepeoplearetalkingtoeachother.'Anotheradded:'Weallhaveaclearunderstandingofwhoisresponsibleforwhat.'

OntheBaird&McGuirecleanupproject,partneringhelpedreverseanadversarialrelationshipbetweenUSAGEandthecontractorthathadbeendeterioratingforninemonthsduetonumerouslargeandunforeseenchangeorderswhichimpactedthecontractfixedpriceandschedule.

AtReeseAirForceBase,agreatdealoffrustrationwasapparentwiththecleanupeffort'slackofcoordination.Partneringimprovedthesituation.Participantsnowsaythat,'Partneringsaveseverybodymoneyupfrontbecauseoftechnicalandregulatorydiscussionsbeforethescopeofworkiswritten.'

TheNavyanditscontractors,EPA,andtheStateofFloridahaveestablishedapartneringteamtooverseeallNavyrestorationactivitiesinFlorida.TheNavyestimatescostsavingsof$2,034,000inthetimeperiodfromDecember93July94,withmoretocomeinsubsequentmonths.$996,000insavingsresultedfromcostavoidanceofactualorimplied

penalties.Theremainderresultedfromreducedcycletimesandprocessimprovements.

MembersoftheSoutheastRegionalImplementationTeam(RIT)oftheCoastalAmericapartnershipdiscoveredredundanciesinaerialreconnaissanceofwhalemigrationsbyindividualagencies.TheRITaddedupagencyexpendituresforpartialandincompletecoverageandfoundthatoneagencycouldconductaerialreconnaissanceoftheentireareaforlessthanthesumoftheagencies'individualefforts.Thisinformationwaspassedalongtothenation-

allevel,andanagreementwassignedinearly1994.Today,oneagencyprovidesthenecessaryinformation,achievinggreatercoverageatlesscost."

IntheDODPartneringGuide,thebenefitsofpartneringareevaluatedfornumerousenvironmentalprojects.ThesebenefitsareconsistentwithbenefitsfoundbyAGCandAAAfortheconstructionindustry.Thecommonbenefitsincludebettercommunication,timesavings,andcostrealization.

53BenefitEvaluation

Canmanagerseverreallyknowwithabsolutecertaintywhetherachangesuchaspartneringhasbeenbeneficial?Whenadecisiontotakeanewstrategicdirectionismade,thatdecisionmeansthatanotherpathwillbetaken.Howdoresearchersaccountforthecostsorbenefitsoftakinganewroad?Researchersoftentrytoisolatetheirresearchsubjectfromexternalfactorsthatmayaffectresults.Whenresearchersevaluateanewmedicine,theylooktothenormalcourseofthetargetconditiontodeterminewhetherthenewmedicationhasmadeadifference.Double-blind,placebo-controlledstudiesarethegoldstandardinprovingamedicineiseffective.Theserigorousmethodsattempttoeliminateexternaleffects,eventothepointofusingpseudodrugs(placebos)andnotlettingpatientsorresearchersknowwhichpillisreal.Thismethodthenconcentratesonbuildingaclearstatisticalproofofapositivephysiologicaleffectofthemedication.

Inthesocialsciences,researchersseektomeasuretheeffectivenessofbehavioralchange.Forexample,didapublichealthprogram,designedtochangethewayfoodishandled,actuallyimprovethehealthofcitizens?Researchersmustlookattwopopulationstoseeanyeffectsonthosewhowerethetargetsofthepublichealtheffort

andthosewhowerenot.Whenthepurposeistopreventadisease,researcherscanlooktotheincidenceofthediseaseinthesubjectpopulations.Butaprogramtoeffectapurelybehavioralchangemaybeverydifficulttoevaluatedirectly.Itismuchmoredifficulttoisolatecauseandeffectinthestudyoflarge,diversepopulationswithmanypotentialexternaleffects

onbehavior.Consider,forexample,evaluatingaprogramtopreventteenpregnancy.Statisticscanbecomparedofsimilarpopulationstodeterminetherateofpregnancy,buthowdoresearchersknowthatotherfactors(changesinotherpublicpolicies,shiftingsocialmores,economiccircumstances,etc.)werenotoperatingtoaffecttheresults?Inevaluatingtheseprograms,researchersdotwothings.First,theymaystatisticallycomparesimilarpopulationsbylookingatthehistoricalexperienceofthosepopulationsandcreatingarepresentativenormativecase.Second,researchersinterviewpeopleandaskthemwhethertheeducationalprogrammadeadifference.Thisisanecdotalevidence,consideredbysometobelessreliablethan"hard"orempiricaldatabecauseitissubjecttoindividualperceptionsthatmaybeflawed.Clearly,bothmethodsneedtoaccountforpossibleexternalinfluencesthatmayaffectthepopulationsunderstudy,andthewaypeopleperceivetheeffects.

Partneringisinessenceaprocessforbehavioralchange.Themagnitudeofthechangeistremendousformostorganizationsandgoesdirectlytothecoreofallitsrelationships.Itcanyielddirectbenefits,bothintermsofpositivebottom-lineachievements,andintermsofproblemsavoided.Thesebenefitshavebeenevaluatedbycomparingthemtononpartneredprojects.Partneringalsoyieldsmoreindirectbenefitssuchaspositiveworkingrelations,professionalism,trust,opportunitiesexploited,andproactiveproblem-solving.Theseresultshavebeeninvestigatedthroughtheharddataofcomparativestudiesandthroughsurveysofpartneringparticipants.

54HardDataonPartnering

Twogovernmentorganizationshaveawealthofexperienceinconstructionmanagement.TheU.S.ArmyCorpsofEngineersisthelargestcivilengineeringorganizationintheworld.TheCorps'

responsibilityincludescivilworks,largelyinwatermanagement,includingfloodcontrol,navigation,shoreprotection,andwatersupplyprojects.TheCorpsalsomanagesmilitaryconstructionfortheU.S.ArmyandAirForce.TheorganizationwhichmanagesconstructionfortheU.S.NavyistheNaval

FacilitiesEngineeringCommand(NAVFAC).Boththeseorganizationshaveusedpartneringandhavebeenthefocusofstudiesdesignedtodeterminethecostsandbenefitsoftheprocess.

HarddatafromcomparativestudiesundertakenbytheCorpssupportsthevalueofpartnering.In1993,astudycomparedpartneredandnonpartneredprojects,findingastatisticallysignificantreductionincostgrowth(thepercentdifferencebetweenoriginalandactualcost).1ThisstudyexamineddatacompiledfromtheU.S.ArmyCorpsofEngineers.Thisandotherresearchhasalsoshownpositivebenefitsinreducingschedulegrowth(thedifferencebetweenestimatedandactualtimetoprojectcompletion).2Thesestudiesnotethatcompletingprojectsonschedulebenefitsallpartieswithmonetarysavings:theowner'sadministrativecostsarereducedwhilethecontractoralsoseesdecreasedcostsandavoidsliquidateddamages.

Recentstudiessupportearlierconclusionsthatpartneringgeneratesmeasurable,objectivebenefits.ThebenefitsfoundintheworkofWestonandGibsonwereconfirmedbyMajorJeffreyHillswhenheexaminedpartneredandnonpartneredprojectexperienceintheKansasCityDistrictoftheCorpsofEngineers.MajorHills'spurposewastomeasurethebenefitsofpartneringasobjectivelyaspossible.Heexaminedhistoricalcostsofnonpartneredprojectswithinthedistrict,choosingprojectswhichwerecompletedbeforepartneringwasintroduced.Thesewerecomparedwithcompletedpartneredprojects.Twokeyindicatorswereusedtoevaluatetheeffectofpartnering:costgrowth(percentcostincreaseoverestimate)andschedulegrowth(timeincreaseoverestimate).Atotalof26partneredprojectswerecomparedwiththedistrictexperiencein83nonpartneredprojectsinMajorHills'sfinalupdateofhisoriginalinvestigation.3

1DavidWestonandG.EdwardGibson,Jr.,''PartneringProject

PerformanceintheU.S.ArmyCorpsofEngineers."JournalofManagementinEngineering,Oct.1993,at41025.2KellyJ.SchmaderandG.EdwardGibson,Jr.,"PartneredProjectPerformanceintheU.S.NavalFacilitiesEngineeringCommand."ProjectManagementJournal,Sept.1995,at3948;WestonandGibson,supran.1.3Maj.JeffreyW.Hills,"TotalEnvironmentalPartnering."ContractManagement,Sept.1996,at49.

MajorHillsfoundsignificantpositiveresultsineachindicatorforpartneredprojects.Thisresultconfirmedhisearlierconclusioninasimilarstudy.4Resultsshowthatcostgrowthwasreduced53percentonprojectswherepartneringwasused(12.24percentnonpartneredversus5.76percentpartneredtotalprojects).Similarpositiveresultswerefoundinschedulegrowthwheretherewasa54percentreduction(25.77percentnonpartneredversus11.93percentpartneredprojects).Hillsconcludedthatpartnering,whenconscientiouslyapplied,wasdemonstrablybeneficialandhadsucceededindramaticallyimprovingthedistrict'soveralltimeandcosttrendsforallprojects.Hillssurmisedthattherewasacarry-overinbetterrelationswiththecontractorcommunityatlarge,showninfewermodifications,easiernegotiations,andbetterrelationsoverall.Herecommendsthatpartneringbeinstitutionalizedbypreparingawrittenpolicyandguidelinesfortheprocess.Contractorswouldbeinformedabouttheprocess,anditcouldbeuniformlyapplied.Keytotheprogram'ssuccessinKansasCity,saysHills,wasthestrongandformalemphasisplacedonthepartneringprogram,providingafirmandvisiblebaseforimprovement.

Hills'sconclusionsaresupportedbythebroadlybasedstatisticalreviewofmilitaryconstructionpracticescarriedoutbyProfessorsPocockandLiufromtheUniversityofIllinoisin1996.5Theresearcherssoughttoevaluatethebenefitsofpartnering,design/buildtechniques,andacombinationoftheseprocesseswith"constructibility"processes(whereaconstructionexpertisdirectlyinvolvedinthedesignprocess).Theycompared209projects:90wheretraditionaldesign/bid/buildpracticeswerefollowed;63partneredprojects;40design/buildprojects;and16combinationprojects.(Theresearcherscommentedthatmilitaryconstructionprojectshavemoreconsistentadministrativeproceduresandmorecompleterecordsthandoprivatesectorconstructionprojects,making

themagooddatasource.)PocockandLiucomparedprojectsbasedoncostgrowth,schedulegrowth,numberofmodificationspermilliondollarsinprojectcost,andnumberofmodificationsduetodesigndeficiencies.

4Maj.JeffreyW.Hills,"PartneringforProfit."TheMilitaryEngineer,Sept.Oct.1992,at4849.5JamesPocockandLiangLiu,"AlternativeApproachestoProjects:BetterorWorse?"TheMilitaryEngineer,JuneJuly1996,at5759.

Theresearchersfoundthateachalternativehadanadvantageinoneormoreperformanceindicatorsoverthetraditionalprojectdeliveryprocess.Partneringperformedbestofallmethodsinreducingschedulegrowth,whileshowingreductionsinbothcategoriesofmodificationsovertraditionalpractice.Dataoncostgrowthshowedpartneredprojectstoberoughlyequaltothetraditionalapproach.Theresearchersconcludethatthealternatives,includingpartnering,showclearbenefitsoverthetraditionalapproachandmightbechosentoaddressaparticularanticipatedprojectchallenge.Thus,partneringwouldbethefirstchoicewhereaprojectpresentedachallengingtime-criticalschedule.

Thereareotherobjectiveindicatorsofthebenefitsofpartneringwhichhavebeenmentionedbyresearchers.Mostprominentisthereductioninthenumberofdisputesthatresultinclaimsandlitigation.Researchershavereportedestimatesofthesavingsduetoreducedlegalfees,thetimeandeffortwhichisnotspentonpreparingforlitigation,andtheaccompanyingreductioninstressandfrustration.6

55SubjectiveEvaluationofPartnering

Thoughsomepeopledistrustanecdotalevidence,thereisreallynootherwaytoassesschangethanbyaskingindividualstoassesstheeffectofabehavioralchangeinitiativeonthem.Whensuchsurveyinformationistakenfromalargesample,orisduplicatedovertime,confidenceintheresultsshouldincrease.Onestudysurveyedprojectparticipantsandthefacilitatorswhoguidetheminimplementingpartnering,andsupportsthevalueofpartneringincreatingapositiveworkrelationshipwhichhasbenefitsforprojectsuccess.

6OsamaAbudayyeh,"Partnering:ATeamBuildingApproachtoQualityConstructionManagement."JournalofManagementinEngineering,Nov.Dec.1994,at2629;GaryD.Bates,"PartneringinSmallPackages."

JournalofManagementinEngineering,Nov.Dec.1994,at2223;Hills,supran.4;Hills,supran.3;ErikLarson,"ProjectPartneringResultsofStudyof280ConstructionProjects."JournalofManagementinEngineering,MarchApril1995,at3035;SchmaderandGibson,supran.2;WestonandGibson,supran.1.

In1995,LieutenantCommodoreKellyJ.SchmaderandProfessorG.EdwardGibson,Jr.,publishedareviewofNAVFACexperiencewithpartnering.Theycollectedandanalyzedobjectivedatafrom39projectsoncostchange,change-ordercost,claimscost,valueengineeringsavings,anddurationchange.Theresearchersalsointerviewedmorethan200participantsinvolvedintheseprojects.Fromtheseinterviews,theyreportanastonishingfact:onlythreepeoplehadnegativecommentsaboutpartnering.Thefollowingareselectedcommentsrecordedbytheresearchers:

"Weavoidedaclaimbypartnering.Also,customersbecameawareofpotentialproblemsearlyon,soamoreusableprojectwasultimatelydelivered."

"Notallofthepartneringbenefitsaretangible.Becausewepartnerthelarge,morecomplicatedprojects,youcanexpectmorechanges.Butyoucan'tputapricetagonthegoodworkingrelationshipsthataredeveloped."

"Theprojectteamutilizedpartneringtoovercomedesignissuescreatedbyfast-trackconstruction.Thecontractoralsodevelopedseveralvalueengineeringproposalsthatsavedthegovernmenttimeandmoney."

"Priortoimplementingpartneringontheproject,thecontractorwasencounteringdifferingsiteconditionsonadailybasis,andthefrustrationonbothsidesbuilttoanuntenablemanagementproblem.Followingthepartneringsession,bothsideshadnewavenuesforcommunication,andwebeganresolvingthedifficultissuesthathadplaguedtheproject.Wefeelwesuccessfullyturnedaroundaprojectthatwasgoingbad.WeavoidedarealliabilityproblemfortheNavy,andwegivecredittochangingthedirectionoftheprojecttopartnering."

"Duringinitialexcavation,anolddumpsitewasrevealed,whichrequirednumerousroundsoftestingtocategorizethesite.ClosepartneringrelationshipsbetweentheROICC[ResidentOfficerinChargeofConstruction],baseenvironmental,stateregulators,andthecontractorhelpedgettheprojectcategorizedandbackontrackinlessthanamonth.Thistypeofenvironmentalproblemhistoricallyhastakenaboutoneyear

toresolve."

Toprovideperspective,SchmaderandGibsonquotethenegativecommentstheyreceived.Althoughthesecommentsmaybeisolated,theyunderscoretheneedtomorefullyexplainthepart-

neringprocessandtheimportanceofhavingaplantoaddressconcernsthatariseduringpartnering.

"Therearenotasmanyclaimsonthepartneredprojectsbecausenobodywantstogivetheprocessablackeye,sotheytendtopaythecontractoroffratherthanholdtheline."

"Partneringhadanegativeimpactontheprojectschedule,becauseweweretoopatientwiththecontractor,oftenhesitatingtoimplementremedies,issuedelinquencylettersandretainfunds."

"Thecustomerwasinvolvedinthepartneringsessions.Consequently,therewaspossiblytoomuchaccesstopartiesotherthantheROICC,whichcreatedmorechangesthanifthecustomerswerenotpartytothepartneringsessions."

SchmaderandGibsonconcludethatthevastmajorityofNAVFACpersonnelaresatisfiedwiththeirpartneringexperienceandperceivethattheprocesscontributedtothesuccessfulcompletionofprojects.Theauthorsalsopointoutthatthereisverylittleriskassociatedwithpartnering.

Positiveperceptionsofthecooperativeatmosphereatpartneredprojectshavebeenrecordedelsewhere.Inthefirstgovernment-publishedhandbookonpartnering,theU.S.ArmyCorpsofEngineersreportssignificantpositiveperceptionsofthepartneringrelationship.7Asquotedinthehandbook,ColonelCharlesE.Cowan,oneoftheearlyproponentsofpartneringintheU.S.ArmyCorpsofEngineers,capturedthevalueoftheintangiblebenefitsofpartneringwhenhesaid:

Iamoccasionallyaskedifpartneringworks.Myansweris,evenifthereweretobenofinancialorperformanceadvantages,it'sclearlytheethicalwayofdoingbusiness.WeintheCorpsofEngineersarecommittedtoourvaluesofintegrity,quality,professionalism,andespritdecorps.Ourcountryneedsacapable,innovativeCorpsofEngineersandacapable,

healthyconstructionindustry.

Partneringcreatestheatmospherethatallowsethical,cooperativeprofessionalrelationstothriveforthebenefitofall.Whensuchanatmosphereprevails,peopleareproudtobeinvolvedintheproject.OneCorpsmanagersaidthisaboutthepartneringattitude:

7Lester.Edelman,FrankCarr,andCharlesLancaster,Partnering.Washington,DC:U.S.ArmyCorpsofEngineers,IWRPamphlet91-ADR-P-4,Dec.1991.

"Ihavefieldemployeeswhosayit'sapleasuretocometoworkandnotbeafraidtoadvisethecontractorofanyperceivedproblemandbeproudofworkingontheprojectasateammember."

Prideandpleasureareintangibleaspectsofpartneringbuttheymaybemorepowerfulproofofthevalueoftheprocessthanalltheobjectivefactors.

56TheRealBenefitsofPartnering

Partneringispersonallyrewarding,professionallysatisfyinganditisgoodbusiness.Thebenefitsofpartneringarereal,documented,andrepeatable.Thisnotwithstanding,participantsmustrealizeandacceptthefactthatpartneringchangesprocess.Theywillengageinafacilitatedtransformationfromseparate,oftensuspicious"forcedcooperation"intoacollaborative,goal-orientedteam.Thenewpartneringteamisabletorealizethepowerofsynergyandcreativityindesigningjointproblem-solvingtechniques,capitalizingonopportunities,andhelpingeachotherbesuccessful.Asshowninsubjectiveandobjectivestudies,thechangesbroughtaboutbypartneringarearealbenefitandgodirectlytothebottomlineinimprovedcostmanagement,schedulecompletion,andquality.Atthesametime,teammembersfindthatworkinginapartneringrelationshipispersonallyrewardingintermsofreducedstressthroughgreatercooperation,andintermsofincreasedgrowthforprofessionaldevelopmentwithcolleagues.Partneringthusbenefitseveryoneontheteamandeachorganization'sbottomline.Indeed,partneringaddsbothdirectandindirectvalue.

Chapter6DevelopingConstructionContractPartneringProvisions61AdvisingaClientaboutUsingPartnering62DraftingSpecificPartneringProvisionsinthePrivateSector63IntegratingPartneringConceptsthroughouttheConstructionContract64PublicSectorPartnering

Acommonmisperceptionoflawyerswhoareuncomfortablewithpartneringisthatitsomehowwillbeusedtomodifytheparties'contract.Thisconcernrepresentsafundamentalmisunderstandingaboutthenatureandpurposeofpartnering.Inreality,theparties'constructioncontractcontinuestogoverntheirrightsandobligationsthroughouttheproject.Partneringworkswithinthatlegalframeworktopromoteclear,objectivecommunicationssothattheteammembersachievetheirmutualcontractgoalsaseffectivelyaspossible.Partneringisnotintendedtobe,andshouldnotbeusedas,aninformalcontractamendmentmechanism.Makingsurethatclientsandtheotherprojectteammembersunderstandhowtheparties'contractdocumentsandpartneringmaterialswillfunctiontogetherisacriticalissuewhenpreparingaconstructioncontractonaprojectthatwillusepartnering.Also,lawyersshouldbemindfulofthelimitationsimposedbystatutesandregulationsgoverningpublicsectorcontractingthatdonotexistwhenadvisingclientsintheprivatesector.

61AdvisingaClientaboutUsingPartnering

Thereareseveralconsiderationsthatshouldbediscussedwhenadvisingaclientaboutwhetherpartneringwouldbeusefulforaparticularconstructionproject.First,thelawyershouldassesstheclient'spriorconstructionexperience,thescopeofworkanticipatedonthisparticularproject,andtheclient'sknowledge,ifany,aboutpartnering.Partieshavinglimitedknowledgeaboutthepartneringprocesswillneedfurtherinformationaboutthetypicalactivitiesundertakeninprojectpartnering,aswellasthepotentialcostsandbenefitsassociatedwithusingpartnering.Thosehavingsomeexposuretothepartneringconceptoractualexperienceapplyingitonpreviousprojectsmayhavestrongopinionsaboutwhetheritwillbeusefulonthisspecificproject.Theinitialdiscussionexploringtheclient'sneedsanddesiresforasuccessfulprojectcanbeusedbyacarefulpractitionertoprovidetheclientwithadynamicexampleofthesynergisticproblem-solvingmechanismusedinthepartneringprocess.

Thecontractdefinitionof"partnering"isbestdevelopedbylisteningcarefullytotheclient'sversionoftheattractiveattributesofpartnering.Inaddition,issuesareoftenraisedduringthisdiscussionthatmaybefruitfultoexploreduringinitialpartneringworkshopproblem-solvingsessions.

Implementingpartneringismoreinvolvedwhenundertakingconstructionondesign/build,multiphased,orothercomplexprojects.Thetimingofpartneringsessionsoverthecourseoftheseprojectsshouldbefullydiscussedandreflectedinthepartneringmaterials.Thebestmeansofinvolvingnewparticipantsintroducedaftertheinitialpartneringworkshopshouldalsobecovered.

Asecondconsiderationtodiscusswiththeclientistherolethattheclientenvisionslegalcounselplayinginthepartneringprocess.In-houseandoutsidecounselcanfunctionsolelyinatraditionalcapacityasanoption-generatorandadvocatefortheirclientduringthecontractdraftingandnegotiationphaseand/orthroughouttheproject.Lawyerscanbecalledupontoreviewpartneringmaterialstoconfirmthattheyareconsistentwiththecontractualagreementsofthepartiesortogenerateideasabouttheclearestwaytoframepartneringvisionorgoalsstatements.Increasingly,keyparticipantsareaskingtohavetheirlawyerspassivelyoractivelyparticipateinpartneringsessions.Considerationsregarding

thesemoreinteractiverolesandissuesofconflictofinterestmustbecandidlydiscussedwiththeclientbeforethelawyeractsasapartneringparticipantwiththeothercontractingparties.

Iftheclientwantstohavecounselactivelyparticipateduringpartneringsessions,thisissueshouldbeverycarefullydiscussed.Authorizedrepresentativesoftheorganizationsthatwillberepresentedatthepartneringsessionsshouldsignwrittenconflict-of-interestwaiverswhenlawyer(s)willactivelyparticipate.

Afterconfirmingtheclient'sneedsregardingpartnering,thelawyernextshouldassesswhetherotherpotentialteammembersarewillingandabletocommittothepartneringprocesscontemplatedbytheclient.Initialpartneringworkshopsmaycausepartiestorevealconsiderableinformationabouttheiroperationsandfinancialmattersrelatingtotheirperformance.Noteveryoneintheconstructionindustryiswillingtosharethisotherwiseproprietaryinformation.Adiscussionaboutcontractconfidentialityandrelatedpartneringprovisionscanprovideneededprotectionstoallayfearsandpermitmorecandidexchangeduringpartneringsessions.Notethatwhenthisanalysisisundertaken,itoftentimesrequiresthelawyertomakeinquiryofotherteammembersortheirlegalcounsel.Insomeinstancesthismeansrepeatingtoprospectiveteammemberstheinitialpartneringdescriptionpresentedtoone'sownclient.Suchaninterviewcanbeinvaluabletoobjectivelyassesswhetherfundamentalpartneringgoalsaresharedamongprospectiveteammembersandtoencouragetheseotherstobecomeactiveparticipantsinthepartneringprocess.

62DraftingSpecificPartneringProvisionsinthePrivateSector

Thefundamentalbusinessphilosophybehindpartneringshouldbe

keptinmindwhilepreparingaprivatesectorconstructioncontract.Ideally,suchacontractwillbeconsistent,andactinconcert,withprojectpartneringgoals.Sincecontractdocumentsareoftenpreparedandexecutedbeforetheteammembersholdtheirfirstpartneringsessiontoestablishthosegoals,constructioncontractpartneringprovisionsusuallyfocusonfiveareas:

1.definingthepartneringconcept;

2.choosingorarticulatingameansofselectingafacilitator(ifdesired);

3.establishingprocedurestocreateandmaintaintheteam'spartneringrelationship;

4.identifyingissuesthatwillbeaddressedand/orrefined,usingthepartneringprocess;and

5.describinghowconfidentialinformationtobesharedduringpartneringwillbeprotectedfromreuseordisclosure.

Clientswithextensivepartneringexperienceorgroupsthatstrategicallypartneronanumberofprojectsmaydesireadditionalpartneringprovisionsconsistentwithpreviouslyestablishedmutualgoals,suchasareiterationoftheteam'spreviouslycreatedvisionstatementorcharter.Ifpreviouslydevelopedactionplanswillcontinuetobeimplementedonthisproject,theycanbeincorporatedbyreferenceasexhibitstothecontractorcriticalelementscanbereiteratedandformalizedascontractprovisions.

ADefiningPartnering

Thereareasmanydefinitionsofpartneringastherearecontractswhereithasbeenused.Forpurposesofdevelopingapartneringdefinitionforaspecificproject,theexampledefinitionsinChapter3provideausefulstartingpoint.Thedefinitionofpartneringshoulddescribethecontemplatedpartneringprocessobjectivelyandthensubjectivelyconveythespiritofcooperativecommunicationandteamworkthatarethehallmarksofallpartneredprojects.Thiscontractpartneringdefinitionwilloftenforminitialimpressionsabouttheprocessforthosewhoparticipateinpartneringforthefirsttime.

Asaresult,considerablecareshouldbeinvestedinarticulatingtheconceptfortheteamintheprojectgeneralconditionsorasimilarshareddocument.

BChoosingaFacilitator

Ifthepartieshavesufficientexperiencewithpartnering,theymayalreadyknowfacilitator(s)theywanttoretainfortheproject.Insuchcase,theparties'contractshouldidentifytheperson(s)and

expresslystatewhoisresponsibleforhiringandpayingforthefacilitator'sservices.

Whereaparticularfacilitatorisnotidentifiedinadvance,thepersonsresponsibleforselectingoneandthetimingofthisactivityshouldbestatedinthecontract.Ifthereareanyqualificationsthatthepartiesdeemnecessaryforthefacilitator,theseshouldbeidentifiedtoassistinthesearch.

Itmayalsobehelpfultosetlimitsontheamountthefacilitatorwillbepaidandtodefineageneralscopeofanticipatedactivitiesthefacilitatorwillundertake.(Note,however,thatwhereworkshopdesignershaveexperiencewithpartnering,theymaywanttoaddressthesesortsofissuesinthepre-partneringworkshopplanningsessioninsteadofintheircontract.)

Ifoneormorelawyersareaskedtohelpintheworkshopplanningthepartneringsessionsortoparticipateinpartneringsessions,extremecareshouldbetakentoobjectivelydefineeachtaskthelawyeristoundertake.Ifdisputedissuesthereafterarise,thecontractshouldindicatethatthelawyersmaybeexcusedfromfurtherperformanceasparticipants,ifaconflictofinterestiscreated.Thelawyershouldthenwithdrawfromrepresentingtheclientinthisorsubsequentprojectdisputestoavoidprofessionalresponsibilityproblems.Thisisanextremelychallengingareafromalegalethicsperspective,andverylittlecaselawexistswhichcanbeused,evenbyanalogy,forguidance.Asaresult,carefulstudyofthespecificsituation,whichinmoststatesinvokesethicsrulesregardingjointrepresentationofclients,isstronglyurged.(SeeChapter15,Section158forafurtherdiscussionofprofessionalresponsibilityissuesinvolvedinpartnering.)

Evenwhereaconflictofinterestdoesnotexist,considerablecareshouldbetakentodiscussthoroughlycounsel'santicipatedrolewith

keyparticipantrepresentatives(aswellasthosewhohaveauthoritytomakebindingdecisionsfortheseorganizations,ifthosearedifferentpersons)tohelpensuretheircomfortlevelwithcounsel'srole.

CPartneringProcedures

Partneringisaproject-longprocess.Contractprovisionscanreflectthissimplybyindicatingthatpartneringwillbepracticedor

implemented''throughouttheproject."Wheregreaterspecificityisrequested,adescriptionoftypicalphases,suchasthepre-workshopdesignsession,initialpartneringworkshop,andprocessesforformalizingactionplansandestablishingfollow-upsessionsthroughouttheproject,canbedescribed.Thoseindividualsrepresentingstakeholderswhowillparticipateindesigningtheinitialpartneringworkshopshouldbeidentifiedexpressly,ifknown.

DIssuestobeAddressedinPartneringWorkshop

Wheretheconstructionprojectisanticipatedtorequireuntesteddesignorconstructionmethods,fast-trackedscheduling,orotherchallengingconditions,theseissuesmaybecalledoutforspecificproblem-solvingdiscussionordevelopmentofactionplansattheinitialpartneringworkshop.Someteamsalsoexploreandselectnonbindingalternativedisputeresolution(ADR)proceduresintheirfirstpartneringsession,whiletheircontractsetsforththeproceduresforformaldisputeresolutionifADRisunsuccessful.Oftentimesintheprivatesectortheformaldisputeresolutionprocessisbindingarbitration.Ifafacilitatorhasbeenidentifiedbeforethecontractsfortheprojectarecompleted,itmaybeusefultogetfeedbackfromthefacilitatoraboutsuchpotentialissues.

EConfidentiality

Constructionindustryformcontracts,suchasthosepromulgatedbytheAmericanInstituteofArchitectsandtheAssociatedGeneralContractorsofAmerica,alreadycontainprovisionsregardingconfidentialityandproprietaryownershipofdocuments.Whatistypicallyaddedtopartneringprovisionsistheconceptthatverbalrepresentationsmadebyaparticipantinaworkshoporactionplandevelopmentsessionshouldbesimilarlyprotectedasconfidential.In

keepingwiththeopennessfosteredbythepartneringprocess,contractsmayreflectthatinformationsharedduringpartneringactivitiesmaynotbeusedtounfairadvantageduringthisprojectorotherunrelatedprojects,orusedwhatsoeverinlaterdisputesabouttheproject.Somegofurther

andexpresslyprovideintheircontractthatanythingsaidduringpartneringsessionsisconfidential.Adherencetoconfidentialityrequirementsiscriticaltothesuccessofpartneringandshouldbemutuallyimposedonallteammembersandtheirstakeholderorganizations.Onsomeprojects,aconfidentiality"oath"isexecutedatthebeginningoftheinitialpartneringworkshopbyallinattendancetosecuretheiractivesupportfortheconcept.

(SeeFigure61foranexampleoftypicalpartneringprovisionsforadesign/bid/buildproject.)

63IntegratingPartneringConceptsthroughouttheConstructionContract

Aprivatesectorconstructioncontractthatfullyintegratespartneringpreceptswillreflecttheexplicitgoodfaithandfairdealinginherentinpartneringthroughoutthedocument.Formany,thisisaccomplishedthroughprovisionsthatassignrisktothepartybestabletocontrolit.One-sidedtransfersofresponsibility,suchas"nodamagefordelay"provisionsorindemnityclauseswhichmakeonepartytakeanunreasonableamountofriskforanother'sactions,areseldominkeepingwithpartneredprojectsandareeitherexcludedorhandsomelycompensated.

Complementaryconceptssuchasvalueengineeringclausesandtotalqualitymanagementprovisionsaremorelikelytobepresentinconstructioncontractswherepartneringistobeundertaken.(SeeChapter12foradiscussionabouttheseinterrelateddisciplinestobeusedindraftingcontractprovisionsthathelpeachtobeimplementedsuccessfullyontheproject.)

Disputeresolutionprovisionsalsowillrequirespecialattentioninapartneredproject.Sinceprimaryfeaturesofpartneringaredisputeavoidanceandinformalconflictresolutionthroughenhancedteam

communication,apartneredconstructioncontractmayonlyaddressageneralprocessforresolvingconflictsamongcontractingparties.Anissue-resolutionladderdevelopedduringthepartneringworkshopsetsforthdetailsastoeachlevelofdisputeavoidanceandwhowilladministerthemsincethesearematterstoberesolvedthroughactionplanscommencedduringtheteam'sinitialpartneringsession.Alternatively,thecon-

I.ProjectPartneringA.PartneringDefined"Partnering"meansthatallprojectactivitieswillbeperformedbythepartiesinaspiritofgoodfaithandcooperation,withemphasisplacedonclearcommunicationsandproblemsolvingconsistentwiththegroup'scommongoalsandmutualvision.B.PartneringAgreementThe[partiesboundbythecontractdocuments]herebyagreethattheywillupholdpartneringfortheprojectandwillusebesteffortstosecuretheactiveparticipationoftheiremployees,subcontractors,suppliers,consultants,andotherinvolvedthirdpartiesinthisprocess.Allinformationsharedasaresultofpartneringonthisprojectwillbeheldbythepartiesinstrictconfidence.C.PartneringActivities1.Pre-WorkshopPlanning.Singlerepresentativesoftheowner,designer,andcontractorwillmeetwiththefacilitatorselectedforthisproject,[insertname],toplantheinitialpartneringworkshop.Theywillselectalocation,identifyparticipants,andprepareanagendaforworkshopactivities,includingidentifyingissueswherefurtheractionplansmayneedtobedevelopedbytheteam.2.InitialPartneringWorkshop.Beforeconstructioncommences,aninitialpartneringworkshopshallbeheld,ledbythefacilitator.Theworkshopwill,ataminimum,examineeffectivemeansofcommunicationfortheprojectteamanddevelopawrittencharterconsistingofamutualvisionandcommongoalsfortheproject,prepareactionplansorplanoutlines,andaddressanyothermattersontheworkshopagenda.3.Follow-up.Attheendoftheinitialpartneringworkshop,theteamwilldeterminethefrequencyoffollow-upworkshopsandwrittenmeasurestoconfirmthatthepartneringcharterisbeingimplemented.Asingleteammemberwillbeselectedtochampionpartneringgoalsandtoreportatweeklyjobprogressmeetingsonpartneringissues.Thisteammembermaycallforafollow-upmeetingatanytimenecessarytorecommittheteamto

partneringidealsortoengageinproblem-solvingandaction-plandevelopmentforspecificissuesthatariseduringthecourseoftheproject.4.Cost.The[owner,contractor,anddesigner]shallequallysharethecostforinitialandfollow-uppartneringsessions.

Figure61PartneringProvisionsforaDesign/Bid/BuildProject

tractmaysetforththeformal,bindingdisputeresolutionmechanismsthepartieswilluse,leavingthepartneringteamtodevelopdisputeavoidanceprocedureswhichareundertakeningoodfaithbythepartiesasaprerequisitetoformaldisputeresolution.

Inshort,thefairdealingthatisintentionallyinvokedthroughoutthepartneringprocessisbestservedwheretheparties'contractdocumentsreflectthesameevenhandedmindset.Iftherisksandrewardsarebalancedinapartneredproject,itwillbeeasierfortheparticipantsattheinitialworkshoptocreateasynergisticteamdynamicandtomaintainitaschallengingissuesarise.Havingacontractthatisinharmonywithpartneringgoalswillhelpensurethatpartnering'sgreatestreturnsaregleaned.

64PublicSectorPartnering

Inthepublicsector,partneringistypicallyavoluntaryprocess.Thefederalorstateagencyusuallyplacesastatementinthebidsolicitationorrequestforproposalsencouragingpartnering.Thisstatementcanencouragetheformationofapartneringrelationshipwiththecontractor,subcontractors,andsuppliers;brieflydescribethepartneringprocess;andstatetheadvantagesofworkinginanonadversarialenvironment.Thesestatementscanbeshortandconcise,astheexamplesadaptedfromfederalgovernmentprojects(Figures62and63),orlengthyanddetailed,astheexampleadaptedfromanArizonaDepartmentofTransportationproject(Figure64).

"Inordertomosteffectivelyaccomplishthiscontract,thegovernmentwillformacohesivepartneringrelationshipwiththecontractor,itssubcontractors,andthedesigner.Thisrelationshipwilldrawonthestrengthsofeachorganizationtoachieveaqualityprojectdonerightthefirsttime,withinbudget,andonschedule.Thisrelationshipwillbemutualinmakeupandparticipationwillbetotallyvoluntary."

Figure62SamplePartneringStatementI

"Inordertocompletethisprojectmostbeneficiallyforbothparties,thegovernmentproposestoformapartneringrelationshipwiththecontractor.Thisrelationshipwilldrawonthestrengthofeachpartyinanefforttoachieveaqualityprojectdonerightthefirsttime,withinbudget,andonschedule.Therelationshipwillbebilateralandparticipationwillbetotallyvoluntary.Anycostsassociatedwithpartneringwillbesharedequallywithnochangeincontractprice."

Figure63SamplePartneringStatementII

PARTNERINGSPECIFICATION§100ScopeofWorkA.COVENANTOFGOODFAITHANDFAIRDEALINGOurcontractimposesanexpressdutyofgoodfaithandfairdealinginitsperformanceandenforcementtowhichweagreemutuallytoimplement.Thecontractorandtheowner,withapositivecommitmenttohonestyandintegrity,furtheragreetothefollowingmutualresponsibilities:

a.Eachwillfunctionwithinthelawsandstatutesapplicabletotheircontractualduties;b.Eachwillassistintheother'sperformance;c.Eachwillavoidhinderingtheother'sperformance;d.Eachwillproceedtofulfillitsobligationsdiligently;e.Eachwillcooperateinthecommonendeavorofthecontract.

B.VOLUNTARYPARTNERINGTheownerwillencouragethefoundationofacohesivepartneringrelationshipwiththecontractor,itsprincipalsubcontractorsandsuppliers,andthearchitect/engineer.Thisrelationshipwillbestructuredtodrawonthestrengthsofeachorganizationtoidentifyandachievereciprocalgoals.Theobjectivesareeffective,efficientandsafecontractperformanceandcompletionwithinbudget,onschedule,andinaccordancewithdrawingsandspecifications.Thispartneringrelationshipwillbemutualinmakeup,andparticipationwillbetotallyvoluntary.Anycostsassociatedwilleffectuatingthisrelationshipwillbeagreedtobybothpartiesandwillbesharedequally.Follow-upworkshopswillbeheldperiodicallythroughoutthedurationofthecontactasagreedbytheteamparticipants.Theestablishmentofapartneringcharteronaprojectwillnotchangethelegalrelationshipofthepartiestothecontractnorrelieveeitherpartyfromanyofthetermsofthecontract.

Figure64SamplePartneringSpecification

Chapter7ThePartneringProcess71IntroductiontotheStepsofPartnering72StepOne:StartPartneringEarly73StepTwo:SecureManagementCommitment74StepThree:HoldaJointPartneringWorkshop75StepFour:DevelopaPartneringCharter76StepFive:PlanforOngoingPartneringRelationship77StepSix:ImplementFeedbackandProblem-SolvingActivities

71IntroductiontotheStepsofPartnering

Everypartneringrelationshipbetweenorganizations,whetherprivateorpublic,isunique.Thisisbecausenotwoconstructionprojectsareexactlyalike.Highwayconstructiondiffersfromofficebuildingconstruction,andthesamegeneraltypesofconstructiondifferbecausegeography,scale,schedule,andmaterialsaresitespecific.Eachcontractualrelationshipalsoinvolvesdifferentpeopleandorganizationshavingtheirownexpectationsabouttheproject.Asaresult,goalsandobjectivesmaydiffer.Further,asconstructionprogresses,newandunexpectedchallengeswillfacetheprojectteam,havingsomeimpactontherelationship.

Althoughpartneringrelationshipsareunique,inmostcasestheprocessforcreatingandsustainingthisrelationshipissimilar.Thesameprocesstoestablishpartneringcanbeappliedtodifferentprojects,yetcreateuniquerelationships.Evenifteammembersarefamiliarwithpartneringfromotherprojectsandtheprojectgoalsaresimilar,thereisdefinitevalueintakingpartintheprocessagainforanewproject.Participationinthepartneringprocessisimportantbecausetheprocessisdesignedtobuildworkingrelationshipsandproblem-solvingcapacityandtoachieveaqualityproductoneachuniqueproject.

Theprocesstocreateapartneringrelationshipusuallyconsistsofsixcommonstepsdesignedtobuildamongtheorganizationsarealteamthatissustainableforthedurationoftheproject.Theprocessprovidesstructuredinteractionthatestablishesthepartneringspiritandallowsflexibilitytoaddresstheuniquecharacteristicsoftheprojectteam.Ateachstep,characteristicsofpartneringareintroducedtotheteamandbuiltintotherelationship.(SeeFigure71.)Takentogether,thesestepsforgethepartneringrelationshipandsustainit.

72StepOne:StartPartneringEarly

Partneringismostsuccessfulwhentheprocesstoestablishtherelationshipisstartedearlybetweentheparties.Thismeansthepartneringprocessshouldstartpriortocontractawardandbeforeworkisperformedontheproject.Thepurposeistobuildtrustanddevelopateammentalityfromthebeginningofaproject.Theearlystartcanbeginintheproposalorbidsolicitationwithageneralstatementbytheownerofitsintenttousepartneringthroughoutperformanceofthecontract.

Thegreatestbenefitofstartingearlyisthatagoodworkingrelationshipcanbeestablishedatthebeginningofacontract,beforeproblemsarise.Ifpartneringisdelayeduntilaftercontractperformancehasstarted,evensimpleproblemscanrapidlyescalateintomajordisputes.Thiscancreateaconfrontationalattitudeamongthecontractingparties,whichcancauseacommunicationbreakdownandalackofcooperation.Whenthishappens,disputescangounresolvedandleadtocostlylitigation.

Thesecharacteristicsarehallmarksofthepartneringprocess:·CulturalChangeMovingfromanoldadversarialmannerofconducttoanewcooperativewayofdoingbusiness.·BarrierRemovalEliminatingindividualandorganizationalobstaclestoformingaprojectteam.·GoodWorkingRelationshipCreatingsynergythatflowsfromorganizationsandindividualsworkingtogetherwithmutualrespectandtrust.·NonadversarialEnvironmentEstablishinganatmospherethatfosterscooperationratherthanconfrontationbetweentheparties.·Team-BuildingAtmosphereParticipatinginastructuralprocesstobuildaunifiedteam.·MutualGoalsRecognizingbenefitsthatarecommontoallpartiesontheteam.·OpenCommunicationsBeinghonestandtrustworthyinoralandwrittencommunications.·JointProblem-SolvingWorkingtogethertosolveproblemsirrespectiveofresponsibility.·DisputeResolutionPlanUsingagreed-uponprocedures,shoulddisputesariseduringperformance.·RealisticExpectationsKnowingthecontractuallimitationsoftheotherpartiesandnotdemandingmore.·TeamCommitmentMakingarealdedicationtoparticipationinthepartneringprocessandnurturingitalongtheway.

Figure71PartneringCharacteristics

Inapartneringrelationship,allproblems,simpleandcomplex,arequicklyconfrontedandjointlyconsideredbyamutuallyagreed-uponprocessforexpeditedavoidancebeforetheyescalateintodisputes.Thisfocusonquickproblem-solvinggreatlyreducesthechanceforanadversarialrelationshiporneedforformaldisputeresolution.

Anotherbenefitofanearlystartisthatanorganizationhasthetimetoprepareitselfinternallyforpartneringbeforemeetingwithotherorganizations.Thisinternalstepcanbeveryhelpfultoorganizationsandindividualsinmakingtheculturalchangenecessarytoacceptapartneringrelationshipandworktowarditsmutuallydefinedgoals.Ittakestimeforpeopletoconvincethemselvesthatachangeisneeded;theymustfeelsecurethatthenewdirectionoffersabetterchanceforsuccess.Totakeadvantageofanearlystart,anorganizationcanplantohaveitsteammemberscometogetherbeforethecontractisawardedtoexplainthepartneringprocess,expresstheimportanceofcommitmenttopartnering,andaddressconcernsaboutchange.

73StepTwo:SecureManagementCommitment

Apartneringrelationshiprequiresthetotalcommitmentandsupportofthemanagementwithinanorganization.Thiscommitmenttopartneringneedstobeexpressedbybothtop-levelseniormanagersandoperationalprojectmanagersatthejobsite.Sincepartneringisafundamentalculturalchangeformostorganizations,teammembersneedtoknowthatpartneringhasthefullsupportandcommitmentoftheirseniorcorporatemanagementandon-siteprojectmanagement.

Inpartnering,decision-makingandproblem-solvingauthorityareoftendelegatedtotheoperationalleveltopromoterelationship-building.Managersmustendorsethisempowermentconceptbymakingclearthatjobsitedecisionswillbesupported.Atthesametime,field-levelpersonnelmustacceptresponsibilityandunderstandthescopeoftheirauthority.

Thecommitmenttopartneringbyseniormanagementmaybeexpressedinawrittenpolicydirectiveorinoralstatements.(For

samplepartneringpolicystatements,seeFigures72,63,64,and65.)

Whatevertheform,seniormanagement'scommitmenttoparticipateinpartneringandencouragingitsusesendsanimportantmessagethroughouttheorganizationthatthisnewwayofdoingbusinessisacceptable.Itempowersindividualstoactdifferentlythantheyhaveinthepast.

At___________,wesupporttheuseofinnovativeandcreativemeanstomakeourorganizationmoreefficientandeffectiveinbusinessrelationships.Partneringisanewprocesswhichmeetsthisdescription.Inpartnering,relationshipswithotherpartiesarebasedonrespect,trust,andteamwork,withafocusontheattainmentofmutuallybeneficialgoals.Itrequiresfullcommitment,openandclearcommunication,andthededicationofallteammembers.Ourpolicyistopromotepartneringwheneverpossible.Teammembersareencouragedtousepartneringtobuildbetterrelationshipswithourcontractorsandcustomers.Partneringisgoodbusiness.Itshouldbeappliedateveryopportunity.Withtheimplementationofpartneringbyeverypersoninourorganizationinvolvedonthisproject,wecanmakethisprojectasuccess.

Figure72SamplePolicyDirective

Operationalprojectmanagementsupportisprovidedattheworksitebytheresidentengineerandthecontractor'sprojectmanager.Theseindividualscanensurethateveryoneunderstandsthenewrelationshipandthatadequatetimeandresourcesareavailabletosustaintherelationshipthroughoutperformance.Thisistheday-to-daysupportnecessarytomakepartneringhappen.

74StepThree:HoldaJointPartneringWorkshop

Thepartneringrelationshipisestablishedataworkshopsponsoredjointlybythekeycontractingparties.Thisisthelinchpinoftheprocess.Theworkshopshouldbeheldafterthecontractawardbutpriortoactualperformance.Itistheidealtimetoformanewsynergisticrelationship.

Theaimofthepartneringworkshopistofosteropencommunications

andtrustinateam-buildingatmospherebeforethepartiesbeginworkunderthecontract.Also,thisisagoodtimetoidentifyandremoveorganizationalcommunicationsandproce-

duralbarriersthatactasobstaclestoworkingtogetherinanewrelationship.

Theworkshopisnotjustanotherroutinemeetingbetweenthecontractingparties.Itshouldtransformtherelationshipfromadversarialtocooperative.Thisisasignificantchangeformostorganizationsandittakesplanningandpreparationtoaccomplish.Agroupconsistingofrepresentativesfromkeyorganizationscanbeformedtodotheplanningandpreparefortheworkshop.

Theplanningteamwillhavetomakemanyimportantdecisionsfortheinitialmeetingtobeeffective.Oneimportantdecisionischoosingthesiteforthemeeting,asthelocationcontributessignificantlytotheatmosphereoftheworkshop.Anotherkeydecisionisidentifyingworkshopparticipants.Alongwiththeownerandcontractor,otherprincipalorganizationswithastakeinthesuccessoftheprojectshouldhaveparticipants.These''stakeholder"organizationscanincludemajorsubcontractors,suppliers,andtheultimateuserofthefacility.

Theworkshopplannersshouldalsochooseafacilitatorfortheworkshop.Afacilitatorisanindividualwhospecializesinassistingorganizationsinrunningmeetingssuchasthepartneringworkshop.Thispersonisanimpartialthirdpartywithexpertiseinorganizationaldevelopment,groupdynamics,collaborativeproblem-solving,andteambuilding.Thefacilitatormanagestheworkshopagendaandassiststhepartneringparticipantsreachconsensusduringtheprocess.

Finally,theplanningteampreparestheagendafortheinitialpartneringworkshop.Theymaywanttoincludethefacilitatorinthisplanningsincethefacilitatorwillbemanagingtheagendaattheworkshop.

Thepartneringworkshopagendatypicallycanbeseparatedinto

severalphases.Initially,theparticipantsmayworkonteambuildingactivities.Thisisusuallyfollowedbysessionsclarifyingrealisticexpectations,agreeingonalistofgoals,identifyingpotentialproblems,anddevelopingdisputeresolutionmeanstohandlethem.Althoughthereisnostandardworkshopagenda,thesemeetingsoftenfollowasimilarformat.Thepurposeistobuildanewworkingrelationship,apartneringteam,forthedurationofthecontract.Theentireworkshopgenerallylastsfromonetothreedays.

75StepFour:DevelopaPartneringCharter

Whenthepartneringworkshopnearscompletion,theteammembersdevelopawrittencharter.Thecharterisaconcisewrittenstatementofoneortwopagesthatdescribesthenewrelationship.Whenthecharterhasbeendrafted,theparticipantsattheworkshopsignitasanexpressionoftheircommitmenttoworktogethertowardthestatedgoalsinanonadversarialenvironmentonthepartneringteam.

Althoughthestructureofformalchartersmaybesimilar,thereisnooff-the-shelf,standardcharter.Eachshouldbeindividuallydevelopedtoreflectthespecificvisionandmutuallydevelopedgoalsofthepartneringstakeholderorganizationsthatparticipateattheworkshop.Workingtogethertodeveloptheformalchartergivestheparticipantsownershipofthecharter,andcontroloftheirpartneringrelationship.

76StepFive:PlanforOngoingPartneringRelationship

Afterthepartneringrelationshipisestablished,theteammembersmustcontinuetonurturetherelationshipduringtheentireperformanceofthecontract.Thecontinuingneedtoreinforcethepartneringrelationshipisnecessarybecauseoldmethodsofdoingbusinessarehardtochangeanditistooeasytofallbackonthemwhenproblemsbegintoarise.

Toensurethatpartneringissustainedduringcontractperformance,planningforthefutureisessential.Successfulplanningusuallymeansarrangingforperiodicworkshopand/orwrittenevaluationsbetweenstakeholderorganizations.

77StepSix:ImplementFeedbackandProblem-SolvingActivities

Periodicworkshopsshouldbeconductedtoreinforcetheteam'scommitmenttopartneringandtoidentifyareasforimprovementthroughouttheproject.Attheseperiodicorfollow-upworkshops,

afacilitatormaybeusedtodesignandconducttheworkshopandtomakesurethattheyarekeptseparateanddistinctfromroutineprojectmeetings.

Theperiodicworkshopsprovideaclearfocusonthepartneringrelationshipduringcontractperformance.Attheworkshops,therelationshipisevaluatedand,ifnecessary,changesaremade.

Chapter8PreparingfortheWorkshop81ConductingInternalPartnering82IdentifyingWorkshopParticipants83SelectingaFacilitator84DesigningtheWorkshop85ChoosingtheWorkshopLocation

81ConductingInternalPartnering

Aninternalpreliminarymeetingishelpfultoprepareforthepartneringworkshopandshouldbepartofanykeyorganization'spartneringplanningprocess.Organizationsthatarenewtopartneringshouldstronglyconsiderconductinganinternalpartneringpreparationmeetingwiththeirownpersonnelteammembersbeforemeetingwithworkshopparticipantsfromotherorganizations.Thiswillprovideanopportunitytofamiliarizepersonnelwiththepartneringprocess,addressmanagementissuesconcerninginternalrelationshipsandquestionsaboutpartnering,andidentifyindividualbeliefsthatmayneedfurtherinternalattentiontoovercomeattitudinalbarrierstopartnering.

Whenthereareunresolvedmanagementissuesamonganorganization'sworkshopparticipants,theymaycometotheworkshopresistingchangeandlackingcommitmenttoworkwithotherparticipantsinpartnering.Thismakestheorganizationill-preparedtobuildaunifiedpartneringteamwithotherorganiza-

tions,whichisnecessaryforasuccessfulworkshop.Aninternalmeetingcanpinpointthesemanagementissuesthatarebarrierstobuildingapartneringteam,andcandidlyaddressorminimizetheireffects.

Ataninternalpartneringpreparationmeeting,organizationalbarrierstopartneringarespecificallyidentified,discussed,andeliminated,whereverpossible.Themeetingalsoisusedtoclarifyindividualrolesandresponsibilitieswithintheorganizationontheproject,improvelinesofinternalcommunicationwithintheorganization,explainthepartneringconcepttofirst-timeparticipants,expressseniormanagementsupportforpartnering,andencourageparticipantstobuildbetterexternalpartneringrelationships.Throughaninternalpartneringpreparationmeeting,organizationalmanagementissuesaboutpartneringcanberesolvedandparticipants'understandingofbasicpartneringgoalscanbediscussed.Aninternalmeetingalsocanbehelpfulinselectingspecificindividualstoattendthepartneringworkshop,recommendingpossibleworkshopsites,andidentifyingpotentialfacilitators.

Thebenefitsofinternalpartneringpreparationareclear:organizationalbarrierstopartneringareminimizedoreliminated,andindividualparticipantsarebetterpreparedtocommittothepartneringprocess.Theinternalpartneringpreparationmeetingisanexcellentwaytogetreadyfortheteam'ssubsequentworkshopmeeting.

82IdentifyingWorkshopParticipants

Twoseparatedecisionsareinvolvedwhenidentifyingparticipantsforthepartneringworkshop.First,theorganizationsthatwillsendparticipantstotheworkshopmustbedetermined.Next,theindividualparticipantsfromeachorganizationwhowillberepresentedatthe

workshopareselected.

Theorganizationsthatparticipateinaworkshopwillvarydependinguponthetypeandscopeoftheprojectandrelatedcontractrequirements,ifany.Thecontractingpartiesthathavethegreateststakeintheoutcomeoftheprojectmustbeadequatelyrepresented.Iftheprojectiscomplex,additionalprinci-

palorganizationsoftenarenecessarytoestablishaviablepartneringteam.

Asageneralrule,everyorganizationthatcanmateriallyaffectprojectcost,time,quality,andsafetyshouldbeinvitedtoattendtheworkshop.Foraconstructionproject,theparticipantstypicallyincludetheowner(governmentagency),primecontractor,majorsubcontractors/suppliers,anddesigners.Thechallengeinitiallyistoidentifyallessentialstakeholderorganizationsandthentoconvincethemoftheneedforparticipation.Althoughsomewhoarenewtopartneringmaybereluctanttoparticipatebasedontheirperceptionsabouttheprocess,theyshouldbeadvisedthatitisintheirbestintereststobeinvolvedasanintegral,contributingmemberoftheteam,andthattheywillloseacriticalforumforinteractioniftheydeclinetoparticipate.

Animportantstakeholderorganizationoftenoverlookedistheultimateuser,tenant,orcustomer.Thepeoplewhowillusethecompletedprojectcometotheworkshopwithpracticalknowledgeaboutoperationalneedsanddesires.Aprojectdesignmaybereadilyconstructedbutifitdoesnotsuitthecustomer'sneeds,theresultiscostlyandtime-consumingchangesandrework.Theearlieruserissuesareidentified,thelessdelaytotheproject'scriticalpathwillresult.

Onceanorganizationagreestobecomeaparticipatingstakeholder,itmustidentifytheparticipantsfromitsinternalteam.Ataminimum,stakeholderteammemberswhohavesignificantmanagementresponsibilityfortheprojectorhaveasubstantialimpactondecision-makingmattersshouldbeselected.

Theproblemformanyorganizationsisnotinidentifyingasufficientnumberofparticipants,butratherthattoomanyindividualswanttoparticipateinthepartneringworkshop.Whenthishappens,senior

managementmustdecideonthenumberofparticipantsandselectthosewhoaretrulynecessaryforpartneringteam-buildingtotakeplace.Thecontractingorganizations,asthekeystakeholders,willhavethegreatestneedforrepresentationattheworkshop.Contractingpartiesmighthaveasmanyastentofifteenparticipantseach,whileotherprincipalorganizationsmaybeadequatelyrepresentedbyonlyoneortwoparticipants.(SeeFigure81foralistoftypicalworkshopparticipantsinaconstructionproject;Figure82forapossiblelistofworkshopparticipantsinafederalenvironmentalrestorationproject.

Thefollowingisashortlistofpossibleworkshopparticipantsinaconstructionproject:·Owner/CEO·ProjectEngineer·Chief,Construction·Chief,Engineering·ContractingManager·StructuralEngineer·GeotechnicalEngineer·SchedulingExpert·Designers/Consultants·MechanicalEngineer·ElectricalEngineer·SpecialtyConsultants·Inspectors·Lawyers·ConstructionManager·PrimeContractorCEO·ProjectManager·FieldSuperintendent·ProjectUser/Tenant·SubcontractorPrincipal·SubcontractorSuperintendent·SupplierPrincipal·ManufacturerRepresentative

Figure81WorkshopParticipantsI

Thefollowingisapossiblelistofworkshopparticipantsinafederalenvironmentalrestorationproject:·U.S.EPARegionalAdvisor·U.S.EPARegionalInspector·FederalAgencyCEO·ProjectEngineer·Lawyers·ContractingOfficer·DisadvantagedBusinessEnterpriseOfficer·StateRegulators·LocalGovernmentRepresentative·PublicInterestGroupRepresentative·ContractorCEO·ProjectEngineer·Subcontractors·KeySuppliers

Figure82WorkshopParticipantsII

83SelectingaFacilitator

Inallbutthesmallestprojects,itishighlydesirabletohireanindependentthird-partyfacilitatortoleadtheinitialpartneringworkshop.Afacilitatortypicallyisanindividualwithspecializedtrainingingroupdynamics,communications,andprocesstoolswhoassistsorganizationsinpromulgatingeffectivecommunicationproceduresandwhowillleadpartneringmeetings.

Theprimaryfunctionsofthepartneringfacilitatoraretoprovidestructuretoteamworkshop(s)andtoleadtheparticipantsinbuildingateamfortheproject.Thefacilitatorcanfocusonfulfillingcriticalagendaitemswhiletheparticipantsarefreetoconcentrateoneachseparatetopicbeingraised.Thefacilitatoralsobringsrelationship-buildingtechniquesandproblem-solvingmethodstotheworkshopthatparticipantsmayuseasmodelsorasalternativestoexpandtheircommunicationsskillset.

Thefacilitatormayalsobeabletopreventproceduraldisputes,sincetheneedforparticipantstocompeteforcontrolandleadershipofthemeetingisminimized.Usingaskilled,impartialfacilitatorwhohasnopersonaloreconomicinterestintheprojectcanreduceconcernsaboutfavoritismandkeepthegroupmovingtowarditsstatedgoals.

Sincethefacilitatorplaysacriticalroleinthepartneringprocess,selectingthefacilitatorisanimportantdecisionforthekeystakeholderorganizations.Selectinganappropriatefacilitatorcanbeachallenge,however,becauseeachfacilitator'straining,skills,andexperiencevarygreatly.Moreover,desiredfacilitatorcharacteristicsmaybedifficultfortheselectingstakeholderstoarticulateinitially.Twochartsareprovidedtoassistinunderstandingpartneringfacilitatorcharacteristicsandroles.(SeeFigures83and84.)

Agoodfacilitatormayhaveyearsofmediation,humanresources,orcommunicationsexperience,butnospecificexperienceinapartneringfacilitationorinconstruction.Althoughspecializedexperienceishelpful,itotherwiseshouldnotbetheprincipalprerequisiteforselection.Theproperbalanceoftraining,skills,andexperienceforthespecificprojectismostimportant.Priorpartneringfacilitationexperienceshouldbeoneofmanyfactorsinevaluatingpotentialfacilitatorsforselection.

Keystakeholdersdesigningthepartneringprocessmaywanttohire

twoormorefacilitatorsfortheirworkshops.Thisisparticularlyappropriatewhenthenumberofworkshopparticipantsislarge.Agoodruleofthumbistouseatleastonefacilitatorforeverytwentyparticipants.Twofacilitatorscanprovidebettercoverageoftheworkshop.Inthemultiplefacilitatorprocess,onefacilitatorleadstheworkshopsessionswhiletheotherfacilitator(s)listen,takenotes,planforthenextsession,andhelpprovideprompterassistanceduringbreakoutsessions.

Thefollowingcharacteristicsarehelpfulinselectingaqualifiedfacilitator.Recognize,however,thatcertaincharacteristicsmaybemoreimportanttoonestakeholder.Moreover,specificfactorsmaybeextremelysignificantgiventhenatureofaparticularprojectandlessrelevantonothers.Theimportanceassignedtoeachcharacteristicisuptothosewhoselectthefacilitator.Keepinmind,however,thatallparticipantsatthepartneringworkshopneedtofeelcomfortablewiththefacilitatorselected.Aworkshopfacilitatormayhaveallormanyofthefollowingcharacteristicsandskills:·Someknowledgeofthesubjectareainvolvedinthepartneredproject.·Theabilitytoperformpersonalitytesting.·Experienceinleadingteam-buildingsessions.·Anunderstandingofconflictmanagementanddisputeresolutiontechniques.·Trainingorexperienceincommunicationsandactivelisteningskills.·Experienceinleadinggroupproblem-solvingmeetings.·Knowledgeofconsensus-buildingtechniques.·Priorpartneringfacilitatorexperience.·Aneutralandimpartialpersonalbackground.

Figure83WhattoLookforinaFacilitator

Thefacilitatorplaysanessentialroleatthepartneringworkshopbyhelpingtocreateanatmosphereforbuildingapositiverelationship.Thereareavarietyofothertasksthatcanbeperformedbythefacilitatortohelpthepartiesachieveteam-buildinggoals.Thefollowinglistsummarizessomeoftheimportanttasksthatcanbeperformedbyafacilitatorbasedontheneedsoftheworkshopparticipants:·Talktokeyparticipantspriortotheworkshoptobetterunderstandtheirinterests.·Assistindesigningtheworkshopstructure.·Helpthepartiesselecttheworkshopparticipants.·Guidetheworkshopagenda.·Provideanonadversarialenvironmentfortheworkshop.·Createatrustingatmosphereforopendialogue.·Explainthepartneringconcepttotheparticipants.·Conductpersonalitytestingandexplaintheimpactofpersonalitytraitsonprojectcommunications.·Planandconductteam-buildingexercises.·Demonstratetechniquestoimprovecommunicationsandactivelisteningskills.·Drawoutideasfromallparticipants.·Assistparticipantsindefiningmutualgoalsandunderstandingvision.·Identifytheobstaclestoachangeintherelationship.·Buildconsensusamongtheparticipants.·Encourageparticipantstoidentifyproblemsandworkonstrategicsolutions.·Providestructurefordraftingacharterandavisionstatement.·Developanevaluationprocesstoimproveandsustaintherelationship.·Keepthefocusonthepurposeoftheworkshop.·Candidly,butdispassionately,articulateindividualororganizationalconcerns/issuestobegintheteamprocesstowardtheirresolution.·Actasascrivenerofkeyconcepts.

Figure84WhataFacilitatorCanDo

84DesigningtheWorkshop

Theworkshopdesignprocessshouldoccurveryearlyintheproject.Thisreducesthepossibilityofexistingconflictbetweentheparticipantsandincreasestheprospectsforasuccessfulpartneringworkshop.Thepartneringdynamicismucheasiertoestablishattheworkshopwhenthereisminimalexistingdissention.

Onaprojectwherepartneringisanticipatedinthebiddingphase,thecontractingpartiescanconductapartneringworkshopbeforethestartofprojectperformanceorshortlythereafter.Onmostprojectsthismeanspre-workshopdesignoccursimmediatelyaftercontractawardandtheworkshopitselfmighttakeplacewithinafewweeksthereafter.Thekeystakeholdersshouldstriveattheverylatesttoholdtheworkshoppriortothestartofconstructiontoattainthegreatestbenefitsfromthepartneringprocess.

Thepartiesoftenbringthefacilitatortheyselectintotheworkshopdesignprocessbeforetheinitialworkshop.Thispre-workshopplanningmeetingprovidesanexcellentopportunityfortheprincipalstogettoknowthefacilitatorandtodecidewhatwilltakeplaceattheworkshop.Thefacilitatorcanalsogetinformationabouttheorganizations,theirgoodorbadexperienceswithpartnering,knownissuesamongtheparties,therelationshipbetweenparticipantorganizations,andtheirexpectationsofabouttheprocess.

Beforethepre-workshopmeeting,however,thefacilitatorshouldfindoutwhetherthekeystakeholdershaveissuedstatementsofseniormanagementsupportforpartnering.Ifnot,thefacilitatormaybeabletoassistindraftingastatementofsupport,perhapsprovidingsamplesfromotherorganizations.(Figure85isasamplestatementofsupportforaspecificproject.)

Thefacilitatormaymakeadministrativedecisionsfortheprincipalsormerelyreviewwhathasalreadybeenplanned.Thefacilitatorcanassisttheprincipalsinrefiningthelistofcriticalworkshopparticipants,makingsuretheworkshopmeetingspaceisadequatelysized,necessaryequipmentisavailable,andsufficienttimeisallowedfortheworkshop.Oncetheseadministrativedetailshavebeencompleted,theworkshopdesignersandthefacilitatorcanworktogetherontheworkshopagenda.Thefacilitatortypicallysuggestsageneralformatandthenthegroupdeter-

MemorandumToStaffRE:Partneringforthe____________________project.1.Weareabouttostartworkonthe__________________project.Thisworkisimportanttoourorganizationandtoallteammembersbecause______________.2.Atthe___________project,wewillimplementpartneringinallourrelationshipswithallkeyparticipants.Partneringfocusesondevelopingrelationshipsbasedontrust,respect,andteamworktobetterattainmutuallybeneficialgoals.Partneringprovidesanopportunityforustoworkbetterwithallpartiesinvolvedwiththeproject.Istronglysupportthepartneringprocess.3.Thefulluseofpartneringshouldhelpusachieveourcorporateinterestinbuildingaqualityprojectontimeandwithinbudget.Itshouldalsoimproveyourworkingenvironment.Iexpectyourdailysupportofpartnering.

Questionsaboutpartneringmaybedirectedto:_________________.Thankyouforyourcooperation.

Figure85SampleProjectStatementofSupport

minestheschedulefortheworkshop,whichisthenrefinedforknownprojectneedsandgoals.

Theworkshopdesignersalsomaywanttoconsideratthepre-workshopmeetingwhetherthefacilitatorwillhaveacontinuingroleinthepartneringrelationshipthroughoutcontractperformance.Sometimes,however,itmaybebettertowaituntilaftertheinitialworkshoptomakethisdecisionbecauseparticipantsmayplanforfollow-upsessionsbasedonoutcomesatthatfirstworkshop.

85ChoosingtheWorkshopLocation

Althoughchoosingthelocationoftheinitialpartneringworkshopmayappeartobeaninsignificantadministrativetask,underestimatingtheimportanceoftheworkshopsitecanbeacriticalmistake.Participantsneedtofeelcomfortableandsecureduringtheworkshopforittobemostproductive.Theworkshoplocationshouldestablishanonadversarialatmosphere.Itshould''leveltheplayingfield"amongtheparticipants,allowingfrankcommentsandopendiscussions.Theparticipantsshouldperceivethesiteasneutralthatis,notprovidinganadvantagetoanyonestakeholderorganization.

Numeroushotelconferencerooms,associationmeetingrooms,andretreatcentersarewellsuitedtoapartneringworkshop.Thesesitesareusuallyinexpensiveandarereadilyavailable.Often,thekeystakeholderschoosetheworkshopsiteandjointlyshareitscosts.Whenpickingalocation,lookforasitethatoffersplentyofspaceforsmallgroupsessionsandwallspacetopostflipchartpagesthatareoftenusedbyfacilitators.Also,withlargegroups,considertheuseofadditionalbreakoutrooms.

Aneutrallocationtakestheparticipantsawayfromthenumerousinterruptions,bothbusinessandpersonal,thatareencounteredatwork.Suchasitelessensdistractionsandpermitstheparticipantstofocustheircompleteattentionandenergyonthepartneringprocess.Figure86summariesthetaskstobeundertakenbyworkshopdesigners,priortotheinitialpartneringworkshop.

___Selectthefacilitator___Conductameetingbetweentheworkshopdesignersandthefacilitator___Secureseniormanagementsupport___Provideorganizationalinformationtothefacilitator___Decideadministrativedetailsfortheworkshop___Selecttheworkshopparticipants___Choosetheinitialworkshoplocation___Settheagenda___Discussthefacilitator'scontinuingrolethroughouttheproject

Figure86WorkshopDesignChecklist

Chapter9ConductingtheWorkshop91AgendaDevelopment92WorkshopElements93OpeningtheWorkshop94Relationship-Building95Problem-Solving96WorkshopClosure97PartneringWorksheet98SampleWorkshopAgendas99WorkshopFlexibilityandStructure

91AgendaDevelopment

Sometimes,whenorganizationsandindividualsgettogetheratameetingwithcoffeeanddoughnuts,theparticipantsbelievetheyarepartnering.Later,afterseveralratherfriendlyhours,theyproclaimthattheyhavedevelopedapartneringteam.Itwouldbewonderfulifbuildingarealpartneringteamforthedurationofalong-termconstructionprojectwasthateasy.Inreality,itisnot.

Tobeginthetaskofbuildingthepartneringteam,themeetingamongtheprojectstakeholdersmustbegiventhetimeandattentionneededtotransformandunifythegroup.Theworkshopmusthaveaclearfocusonbuildingthepartneringteam.AvarietyoftypicalworkshopactivitiesarefoundatFigure91.

Figure91PartneringWorkshopPuzzle

Theseactivitiesinclude:makinggroupintroductions,identifyingworkshopexpectations,discoveringpersonalcommunicationstyles,exploringgroupdynamics,sharingteam-buildingexercises,statingroles,delineatingresponsibilities,findingcommongoals,planningaction,draftingacharter,developingevaluationcriteria,establishingproblemresolutionmechanisms,andplanningforfollow-upworkshops.Theseactivitiescannotbeaccomplishedthroughinformal,briefmeetingswhereeveryonemerelyassertstheirdesireto"partner"onaproject.Asageneralrule,thepartneringprocesstakesfromone-and-a-halftotwodaysandisthesinglefocusofacarefullydevelopedworkshoptailoredtospecificprojectneeds.

Developingapartneringteamishardwork.Itrequiresplanning,commitment,andfollow-through.Theinitialpartneringworkshopatthebeginningoftheprocessisessentialtothefuturesuccessoftheteam.Attheworkshop,participantsbuildteamrelationshipsthatcanbetterwithstandthepressuresinherentinanyproject.Achievingthisambitiousobjectivecallsforacarefullyplannedeffortandanagendatailoredtotheneedsofthepartiesandtheproject.

92WorkshopElements

Althoughthepartneringworkshopmayseemtohavemanydifferentandunrelatedactivities,awell-plannedworkshopcanbedividedintofourdistinctandflexibleparts.Firstisthe"openingoftheworkshop,"whichisdesignedtobreakdownbarriers,maketheparticipantsfeelcomfortable,andsetthegroundrulesfortheworkshop.Second,theworkshopagendafocusesonrelationship-buildingtoimprovecommunicationsandbeginteam-building.Third,theparticipantsengageinbuildingproblem-solvingprocesses.Finally,thereistheclosurewhenalltheparticipantssignthechartermemorializingthegroups'goals,andcelebratetheirnewteam.(SeeFigure92.)

Afacilitatorisoftenusedtoassiststakeholdersinorganizingactivitiesineachpartoftheworkshopandinestablishingtheoverallagenda.Thefacilitatorcanadjustthesequenceofactivitiesbasedonknownprojectneeds.Adjustmentscanevenbemade

Figure92BasicElementsoftheWorkshop

duringtheworkshopbythefacilitator,dependingupontheneedsarticulatedbytheparticipantsduringtheprocess.Someworkshopsmayconcentratemoreonrelationship-buildingbecausepartneringisnewtotheparticipants.Otherworkshopsspendsignificanttimedealingwithproblem-solvingduetothecomplexitiesoftheproject.Theflexibilityoftheworkshopstructureencouragestheseadjustments,andfacilitatorsshouldmodifythestructureatanypointbeforeorduringtheworkshopasnecessary.

93OpeningtheWorkshop

Openingtheworkshopinvolvesthreeelements:welcomingparticipantsandintroducingeveryone,settingexpectationsfortheworkshop,andadoptinggroundrules(seeFigure93).

Figure93OpeningtheWorkshop

AWelcomeandIntroductions

Thefacilitatorinitiallywelcomestheparticipants,explainsingeneralthepartneringprocess,andidentifiestheagendaforthepartneringworkshop.Morethanonefacilitatormaybeusedifthereisalargegroup.Establishingarelaxedandcomfortableatmospherefortheworkshopisparticularlyimportantforparticipantswhopreviouslyhaveneverparticipatedinapartneringworkshop.

Aftertheinitialwelcome,mostfacilitatorswilluseanintroductorygroupexercisetofurtherhelptheparticipantsfeelatease.Onesimplebutusefulexerciseistohavetheparticipantsdivideintopairsandintroducethemselvestooneanotherforseveralminutes.Whentheone-on-oneintroductionsarecompleted,eachparticipantintroducestheirpartnertotherestofthegroup.Introductionsmayincludecurrentpositionwiththeorganization,experience,education,family,andsomethingpersonallikeapetpeeve,hobby,orrecentbookread.Thistypeofexerciseestablishesaninformalatmosphere,improveslisteningskills,andmakesthegroupmorecomfortablewitheachotherbypersonalizingtheirrelationship.Itbeginstheprocessofbreakingdownbarriersandallowsparticipantstoseeeachotheras

individuals,notsimplyasrepresentativesoftheirparticularorganizations.

Anotherintroductoryquestionthatafacilitatormightask,is"Whatwasyourfirstjobinwhichyouearnedmoney?"Itissurprisinghowmuchtheanswertothissimplequestionopenscommunications.Participantsfindthatothersstartedwithsimilarexperiencesandtheywanttosharetheircommonpast.

BExpectations

Whenintroductionsarecompletedandparticipantsarebeginningtofeelmorerelaxedandfocused,thefacilitatormayasktheparticipantswhattheirindividualexpectationsareforthepartneringworkshop.Eachparticipantshouldbeallowedtorespondwithoneexpectationinaninitialround.Additionalroundsmaybenecessaryforeveryonetoexpressalltheirexpectations.Sometypicalresponsesfromtheparticipantswillbe:togettoknoweachother,tocreatesomethingtobetakenbacktotheproject,todevelopcommongoals,tocreatea"buy-in"commitmentfromleadership,toproduceanagreement,toestablishrapportandcandor,todevelopmechanismsandprocessestoadheretopartneringgoals,toestablishproblem-solvingplans,tosavetimeandmoney,andtobuildteamwork.Alltheexpectationsexpressedbytheparticipantscanbecapturedinwritingonflipchartsanddisplayedaroundtheroominsomefashion.

Sincepartneringmaybeveryfamiliartosomeparticipants,andacompletelynewexperienceforothers,thisactivityhelpsallparticipantsgainarealisticunderstandingoftheworkshop'spurpose.Also,whentheparticipantsareinvolvedinaprocessofexpressingexpectations,individualmisconceptionsandmisunderstandinghaveanopportunitytosurfaceandbeaddressed.Thisstartstocreateacommonframeworkofexpectationsfortheworkshop,whichfacilitatorsmayusetorefinetheworkshopagendaandtoidentifyproblem-solvingtopicsforlaterdiscussion.

CAdoptingGroundRules

"Groundrules"insportsarethespecificrulesofplaywhichareadaptedtotheplacewherethegamewillbeplayed.Thegroundrulesforconductingapartneringworkshopareestablishedina

similarmanner.Therearespecificrulesforcommunication,buttheyareflexibleenoughsothattheparticipantscanmodifythem.Thecommunicationrulesforapartneringworkshopshouldencourageopenexpressionofideas,fullparticipationbyall,andaspiritcharacterizedbyactivelisteningbytheentiregroup.Participantsshouldbeencouragedtothinkaboutgroundrulesthatwillpromoteopencommunication.Groundrulesforapartneringworkshopmaybefewandshouldbefairlysimple.Figure94isasamplelistofgroundrulesusedbysomefacilitatorsasasuggestedstartingpoint.

·StayFocused·AppointaTimekeeper·ListenasAllies·100MileRule·OneConversationataTime·FreedomofMovement·ManageYourTimeWisely·HonorTimeLimits·UseBrainstormingProcess·AllParticipate,NoOneDominates·NoCriticizingIdeasorOthers·PollEveryonetoSpeakorPass·UseMulti-VotetoPrioritize·GenerateLight,NotHeat·Three-KnockRule·ParkingLot

Figure94GroundRules

Someofthesegroundrulesareobviousandself-explanatory.Severalbenefitfromabriefdescription.Forexample,the"100MileRule"meansallparticipantsshouldbehaveasiftheywere100milesfromtheoffice,eventhoughtheymaybenextdoor.Theyshouldavoidbeingdistractedbyphonecallsorday-to-daybusiness.The"FreedomofMovement"rulemeanstherewillbeveryfewscheduledbreaksbutifanyoneneedstogetacupofcoffeeorleavetheroomforamoment,theyshoulddoso.The"UseMulti-VotetoPrioritize"rulemeansusingaspecificprocessofvotingbychoosingaspecifiednumberofitemsonalistthateachparticipantfeelsisimportant.Theresultingvotetallydeterminestheorder,priority,orselection.The''Three-KnockRule"isaneffectivewaytostopsidebarconversationsonasubjectthathasalreadybeendecided.Anypersonintheroomhaspermissiontoraploudlyonthetablethreetimes.Thegroupisalertedthatsomeonefeelsthediscussionisofftrack,oradistractingsideconversationistakingplace,orthegrouptorefocusonsomethingelse.Itgiveseveryoneabettersenseofcontrolandcanhelpgetthemeetingbackontrack.The"ParkingLot"rulesavesgoodideasthatareraisedatthewrongtime.TheParkingLotisasheetofpaperonwhichanyideamaybeplacedtobeaddressedlaterintheworkshop.Theseideasusuallypullthediscussionawayfromtheagenda.Ratherthantaketimeatthemomenttodiscusstheidea,itisoftenbettertowritetheideaontheParkingLotsheetforconsiderationattheappropriatetime.

Theteamoftensuggestsadditionsordeletionstothelistofgroundrulesrecommendedbythefacilitator.Somepossibleadditionsincludethefollowing:

·FrankandCandidDiscussion

·LeaveYourRankattheDoor!

·BeOpen-minded

·NoTurfBattlesAllowed!

·BeUnconventional

·BeaGoodListener

·UnderstandBeforeTryingtoBeUnderstood

·MaintainaPositiveAttitude

·CommittoSuccess

Thesesuggestionsareoftenaccompaniedbydiscussionamongtheparticipantsbeforetheyareadoptedasgroundrules.

Someoftheseadditionalgroundrulesdeserveexplanation.Thesuggestedgroundruleof"NoTurfBattlesAllowed!"addressestheprotectionistattitudesofsomeparticipants.Forexample,participantssometimeshaveissuesthattheyfeelarenon-negotiable.Adesignermayfeeladamantthatasteelstructureistheonlyacceptableconstructionmethodwhen,infact,othersmayknowofnewtechniquesthatmakeaconcretestructurelessexpensive,moresuitable,andquickertoconstruct.Closed-mindedattitudesandturfprotectinglimitthecreativityandfreeflowofideasthatareessentialforpartneredproblem-solving.Thisgoeshandinhandwithanothergroundrulerequiringopen-mindedness.Itisessentialthatparticipantsbeflexible,keepapositiveattitude,andbewillingtolistentootherviewpointsfromtraditionallyopposingpositions.Thefinalexplanationis"LeaveYourRankattheDoor!"Thisruleguardsagainstleadersusingtheirstatustoforceanideaordecision.Pullingrankdoesnotgarnerlasting"buy-in"fromtheparticipants.

Theparticipantsshouldrealizethatthepartneringworkshopisnotaquickfix.Thedevelopmentofpartneringrequirescommitment,notonlytothepartneringteam,buttotheworkshopitself.

94Relationship-Building

Partneringisbuiltonateam'ssynergy.Thestrengthofacollaborativeteamismorethanthesumoftheirindividualstrengths.Butthesynergisticbenefitsinateameffortcanonlybeachievedwhen

Ifthemajorityoftheparticipantsattheworkshoparerelativelynewtothepartneringexperience,manyfacilitatorswilltrytoeliminatebarrierstoinnovationandreduceparticipants'resistancetochangebyshowingvideossuchasJoelBarker'svideoprogram,"DiscoveringTheFuture:TheBusinessofParadigms."Thesevideoprogramsexplainwhychangeinthiscasepartneringisseenasthreateningandshowhow

toimprovetheprocessofinnovativethinking.Italsowillenhanceeachindividual'sreceptivenesstochange.

individualteammembershaveproductiveworkingrelationshipswitheachother,characterizedbyopencommunication,collaborativeproblem-solving,anddedicationtocommongoals.Oneofthemostimportantthingsafacilitatordoesishelpworkshopparticipantsbuildpositiveworkingrelationshipsthatwillcarrythroughtocontractcompletion.Attheworkshop,ateachingtooltostrengthencommunicationsamongthegroupisoftenusedasafirststep.Figure95isagraphicrepresentationofrelationship-building.

ATeam-BuildingExercises

Team-buildingexercisesassistinestablishingpositiverelationships.Teamexercisesareanimportanttooltogettheparticipantsthinkingandworkingasateam.Speciallydesignedexercisesthatcontrastcompetitionandcooperationareusefulearlyinaworkshop.Fortheseexercises,andperiodicallythroughoutthework-

Figure95Relationship-Building

shop,theparticipantscanbedividedintosmallerworkinggroupswithdifferentcombinationsofowner/contractor/designerandfield/officepersonnel.Thesetypesofexercisesdemonstratethatinternalcompetitioncanbedestructivetotheteam,andthatagroupworkingtogethercanproducebetterresultsthananyindividualcouldproducealone.Theseexercisesalsodemonstratehowtodisagreewithoutbecomingdisagreeableandhowtosupporteachother'sideas.Theyprovideclearexamplesofwhycertaintypesofbehaviorarenotinthebestinterestsoftheteam,andshowthebenefitsofcollaborativeproblem-solving.

BRoadblockstoTeamDevelopment

Therearemanyroadblocksthatcanhinderdevelopmentofacohesivepartneringteam.Someexamplesareegoism,poorcommunications,ineffectiveleadership,inflexibility,prejudices,conflictingorunclearobjectives,prohibitiverulesandregulationsthatarenotusefulinthecontextoftheproject,uncleardelegationofauthority,conflicts(suchaspsychologicalandemotionalresponses),faultfinding,hiddenassumptions,andlackoffeedback.Attheworkshop,participantsareencouragedtoidentifywhattheybelieveareroadblockstobuildingateamfortheproject.Oncethishasbeendone,everyonecanjoininadiscussionoftheseroadblocks.Suchadiscussioncanhelpmakeeveryoneawarethattheseroadblocksexistandshouldbeavoided.Thepartneringworkshopprovidesaprocessforcommunicationstobeimprovedandcounterproductivebarrierseliminated.

CTeamDecision-Making

Inthepartneringworkshop,decisionsarenormallymadebyconsensusoftheparticipants.Sincesomeparticipantsmaynotunderstandtheconsensusdecision-makingprocess,adiscussionabout

ithelpsthemtoacceptconsensusdecision-makingasbeingineveryone'sbestinterest.Thefacilitatorexplainsthatconsensusdecision-makingisaprocessofreachingdecisionsasateam.Aconsensusdecisionmaynotbethefirstchoiceofeveryone,butthedecisionshouldbeonewithwhicheveryonecanlive.

Atoolthatcanbeusedeffectivelytoreachconsensusisthe"ComfortCheck."UsingFigure96,thefacilitatoraskstheparticipants,"Onascaleof1to5,howcomfortableareyouwith___?"Oneis"Ihateit,"fiveis"Iloveit,"andthreeis''Icanlivewithit."Thefacilitatorasksforeitherashowofhandsforeachnumberorasecretballot,andthenplotstheresultsonaflipchartforalltosee.Adiscussionfollowstodiscoverwhatchangestotheproposalmustbemadeforthosewhovotedaoneortwotoraisetheirvotetoathree.Thegroupworkstorevisetheconceptuntilallvotesarethreeorhigher.Now,consensusisbeingbuilt.Thistypeofdecisionmakingencourageseveryonetoparticipate,resultsinbettersupportfordecisions,andemploysathoroughproblem-solvingprocess.

DEliminatingBarrierstoPartnering

Stakeholdersneedtorecognizethattheremaybepotentialstumblingblocksorbarrierspreventingindividualsfromfullyparticipatinginpartnering.Onlyafterthesebarriershavebeen

Figure96TheComfortCheckConsensusTool

identifiedandaddressedwilleveryonebegintoparticipatefully.Brainstormingisthebesttooltouncoverbarriers.Oneeffectivetechniqueistohaveeveryonesilentlywriteperceivedbarriersoncards.Thefacilitatorcollectsandreadsthemastheyareplacedonthewallorflipchart.Thentheyshouldbesortedorprioritizedbytheteam.Oncebarriersarerevealed,theteamcandiscusshowthesebarriersmightbeovercomeduringthisproject.Theagendamaycontrolhowmuchtimeisspentdiscussingthesebarriers.Leavingthempostedonthewallduringtheworkshopcanhelptheparticipantskeeptheminmindastheydevelopgoals,actionplans,andthegroup'swrittencharter.

ECoreValues

Anotherpartofthepartneringworkshopistodiscoverthecorevaluesoftheparticipants.Corevaluesareprinciplesforthepartneringteamtoabidebyforthedurationoftheproject.Thefacilitatorcanleadtheteaminthiseffort.Todevelopasetofcorevalues,individualvaluesarefirstlistedinaquietfive-minutesession.Eachworkshopparticipantsuggestsacorevaluetheywouldliketoseepracticedbytheteam.Aftermakingalistonaflipchart,avoteistakentoidentifywhichofthelistedvaluestheteammemberswouldneverviolateonthisproject.Theresultisthatonlyafewsuggestedvalueswillmakethelistoftheteam'scorevalues.Thesecorevaluesmaybeexpressedagainintheteam'scharter.

FStandardsforBehavior

Standardsforbehaviordescribehowworkshopparticipantswanttobetreatedonadailybasisduringtheconstructionproject.Sincetheteammemberswillbeworkingcloselytogetherandtheirbehaviorwillaffectthepartneringrelationship,standardsforbehaviorarean

importanttopicofdiscussionatthepartneringworkshop.Ifrelationshipsarepositive,teammemberswilllikelytreateachotherwithrespectandcourtesy.Additionally,communicationwillbeencouraged.Ontheotherhand,ifrelationshipsarenegativeoradversarial,rudenessandpoorcommunicationwillcharacterizedailybehavior.Whenworkshopparticipantsareable

todescribepositiveandnegativebehaviorcharacteristics,andthendedicatethemselvestothepositive,theyaretakinganimportantsteptowardimprovingtheirworkingrelationship.

Thefacilitatorwillguideworkshopparticipantsinadiscussionofstandardsofbehavior.Aneffectivemethodistohavetheworkshopparticipantsconsiderpositiveandnegativebehaviorcharacteristics.Thefacilitatorasksthemtodiscussinsubgroupsoffourtosixpeopletheirmostsuccessfulteamworkexperienceandhowteammembersbehavedtowardoneanother.Eachparticipantshouldshareanexperience.Whenthesubgroupshavehadtimeforeveryonetocontribute,theyareaskedtoidentifythefactorsthatcontributedtothosesuccesses.Theseresultinglistswillincludespecificcircumstancesaswellasgeneralstatementsaboutworkingrelationships.Fromthecombinedlistsofallthesubgroups,thewholeteamcanbeaskedtobrainstormthefactorsthatbestdescribedhowtheytreatedeachother.Theresultisthelistofpositivebehaviors.Theprocessisrepeated,withthegroupsdiscussingtheirmostdifficultorunsuccessfulteamworkexperience.Theresultwillbealistofnegativebehaviors.Theclearmessage:Teamswillbesuccessfuliftheycanpromotethepositivebehaviorsandlimitthenegative.Thepositivestandardsofbehaviorcanthenbeusedinbuildingthegroup'scharter.

GPersonalStyleRecognition

Insomepartneringworkshops,thefacilitatormayuseapersonalstylerecognitionexercisetoassisttheparticipantstobetterunderstandcommunications.Theseexercisesindicateeachparticipant'spersonalstyleofinteractingandhowitaffectstheircommunicationsindifferentsituations.Itisimportantthattheparticipantsknowtheirownpersonalstyleandrecognizeotherstyles.Forexample,oneteam

membermayhavevaluableknowledgeonacertainsubject.Thatperson'spersonalstylemaymakewrittencommunicationmorecomfortablethaninteractingorallyinagroupsetting.Ontheotherhand,anotherteammembermaybeenergizedbygroupinteractionbutfinditverydifficulttoprepareawrittenreport.Theseindividualshavedifferentcommunicationstrengths.Throughpersonalstylerecognitionexercises,workshopparticipantslearnaboutthemselvesandgainan

appreciationofthestylesofotherteammembers.Iftheteamistotakebestadvantageofteammemberstrengths,personalcommunicationstylesshouldberecognizedandunderstood.Aself-examinationinstrument,suchastheMyers-BriggsTypeIndicatorsurvey,wouldbeappropriateaspartofthisexercise.

HMutualVisionandCommonGoals

Abasicobjectiveoftheworkshopistohavetheparticipantsrecognizethattheyhaveamutualvisionandcommongoalsfortheproject.Thisisanimportantopportunityforteammembersfromthestakeholderorganizationstoworktogethertodefinetheirrelationship.Oftenafacilitatorwillformsubgroupstodeveloplistsofcommongoalsandtheteam'smutualvisionstatement.Onceeachsubgrouphasdevelopeditsmutualvisionandcommongoals,allparticipantscomebacktogethertodiscussthem.Eachsubgroupwillhaveanopportunitytopresentitslistofcommongoalsandmutualvisionstatementtoallparticipants.Thisisfollowedbyadiscussionthathelpsinselectingthemutualvisionandcommongoalsforthepartneringcharter.Chapter10containsafullerpresentationonthedevelopmentofmutualvisionandcommongoalsstatementsforapartneringcharter.

Themutualvisionandcommongoalsdiscussionusuallyconcludesthefirstdayoftheworkshop.Somefacilitatorsmayassignhomework.Theparticipantsmaybeaskedtoponderovernightthefollowingquestions:Whatismyroleinthisproject?WhatdoIneedfortheprojecttobesuccessful?Whatchallengesmeaboutthisprojectinitiative?WhataremyresponsibilitiesonthisprojectandhowdoIinteractwithothers?

Aplanned,informalsocialactivitythateveningisanexcellentopportunityforparticipantstogettoknowoneanotherbetterandto

informallydiscussthesequestions.Thiscouldconsistofrefreshmentsandhorsd'oeuvres,acookout,oraplanneddinnerevent.

IRolesandResponsibilities

Thenextmorning,thesessionbeginswithareviewofthevisionstatementandcommongoalsfromthepreviousday.Thisreview

maycausesomerevisions,butusuallytheyarenotsignificant.Afterthemutualvisionstatementandcommongoalshavebeenrevised,thefacilitatorshouldleadageneraldiscussionabouteachparticipant'sperceivedroleandresponsibilities.Theteammembersneedaclearunderstandingtoavoidconfusionthatcouldcauseconflict.Thediscussionwillprovidemoredefinitionandclarificationoftheindividualrolesandresponsibilities.Uponcompletionoftheexercise,amatrixshouldbedevelopedwitheachteammember'sroleandresponsibilityclearlystated.

95Problem-Solving

ATheScopeofProblem-Solving

Thepartneringworkshopofferstheopportunityforparticipantstoconsiderproblem-solvingasaprocess(SeeFigure97)andtoestablishplanstoaddressproblems,issues,anddisputesthatmayariseontheirproject.Inproblem-solving,therearethreedistinctapproaches.Thefirstapproachistheteam-basedanalysisofproblems(ProblemIdentification)andthedevelopmentofaplanformarshalingteamresourcestoresolveproblems(ActionPlans).Thisapproachappliestoproblemsthattheteamforecastsassignificantchallenges.Italsoassistswiththeoverallcontractperformanceandrequiresarelativelylong-termeffortandacoordinatedplan.Theactionplansaredevelopedduringtheworkshoporoutlinedforfuturedevelopmentbyasubgroupoftheteam.

Thesecondapproachistodevelopaprocessthatdefinesthewaythatteamresponsibilitywillbeexercisedinsolvingissuesthatariseduringtheproject,particularlythosethatcallforrapidresponse(IssueEscalationLadder).Thisapproachisbasedonthepresumptionthat

issuesareresolvedmostefficientlywhentheyareaddressedatthelowestoperationallevel,andareonlyescalatedtothenextlevelofmanagementinacontrolledmanneriftheyarenotpromptlyresolved.

Finally,despitetheeffortsoftheteam,theremaybeproblemsthatcannotberesolvedwithouttheuseofamoreformalizeddisputeresolutionprocess,commonlyreferredtoasAlternativeDisputeResolution(ADR).Thisthirdapproachreliesonathird

Figure97Problem-Solving

partytohelpparticipantsreachresolutionforarangeofdisputes.Third-partyarbitratorsareavailabletohelptheteamwithoutreducingtheteam'sdedicationtopartneringprinciples.ThedisputeresolutionprocessesusedinADRaremorelikelytopreservepositiveworkingrelationshipsandprovideefficientdisputeresolutionthanresortingtothemoreadversariallitigationintheboardsofcontractappealsorthecourts.Optionsincludeuseofprojectneutrals,mediation,arbitration(bindingarbitrationisnotanoptionforfederalgovernmentcontractsatthistime),andvariousotherADRmethodsthataretypicallyidentifiedinthepartiescontractandimplementedonlyifthefirsttwoproblem-solvingapproachesfailtoproduceamutuallyacceptableresult.

BProblemIdentification

Attheworkshop,thefirstproblem-solvingapproachisintroducedasatwo-stepprocess:(1)problemsareidentifiedbythegroup,and(2)actionplansaredevelopedtoaddressthoseproblems.Although

participantsmaynotcometotheworkshopwith

specificprojectproblemsinmind,theycandrawfromtheirpastexperiencetoidentifyparticularproblemareasthatmayariseonthisproject.Attheworkshop,anexperiencedfacilitatorcanalsoassistthepartiesinidentifyingproblemsthattheteammaywanttoaddress.Onceidentified,thefacilitatorengagesparticipantsingeneratingactionplans.

Agoodwaytobeginproblemidentificationistoexamineparticipants'experiencesonsimilarpastprojectsbeforeconsideringthecurrentproject.Thisprocessstartsbydividingworkshopparticipantsintoowner,designer,andcontractorsubgroups.Eachsubgroupworksindependentlytolistproblemsfrompriorprojects.

Participantsineachsubgroupareeachaskedtoidentifyapotentialproblem.Thiscancontinuearoundthesubgroupseveraltimes,asparticipants'sharetheirpastproblems.Participantsshouldnotbecompelledtoidentifyaproblemduringeachsubsequentrotation.Ifsomeonecannotthinkofaproblemtoidentifyduringarotation,theycanpassandstillhaveanotheropportunitythenexttimearound.Whenthelastpastproblemisidentified,alistispreparedforreviewbyallparticipants.Oncepastproblemsarereviewed,theseparticipantsremaintogetherandareaskedtodescribeproblemstheyanticipateonthisproject.Theycanthenbrainstormalistof"RocksintheRoad"thattheyexpectmaycauseproblems.Then,theseseparatelistsarepresentedtoallparticipantstofacilitateadiscussionaboutproblems.

Frequently,whensubgroups'listsarepresented,thereareseveralsimilarproblemsanticipated;thesecanbegroupedtogetherbythefacilitator.Onceconsolidated,theconsensusmethodisusedtoprioritizethemajorproblems.Atthistime,anotherimportantstepintheworkshopbegins.Theteamwillbedividedintonewsubgroupsthatcrossorganizationallines.Thenewsubgroupsaddressthetop

priorityproblems,usinganactionplanproblem-solvingtechnique.Sincetherearemanyproblem-solvingtechniques,eachwithitsownspecificsteps,thefacilitatorshouldstartthisprocessbyteachingthegroupseveralmethods,whichtheycanimmediatelyusetoaddressissues.Groupsshouldbeencouragedtoexperimentwithdifferentmethodstoseewhicharemostfunctionalfortheparticipantsandissuespresented.

Thefollowingproblem-solvingprocessprovidesageneraloutlineofhowateammightapproachbuildingaproblem-solvingactionplan.Thefundamentalstepsinthistechniqueare:

1.DefinetheProblem

2.AnalyzetheProblem

3.ConsidertheCharacteristicsofanIdealSolution

4.DevelopPossibleSolutions

5.DesignateResponsibleTeamMemberstoSelectandRefineaSolution

ThesestepswillbeconsideredindetaillaterinthecontextofcreatingaspecificactionplanandareillustratedinFigure98.

CCreateActionPlans

Awrittenactionplanmaybedevelopedforeachmajorproblemidentifiedbytheteam,dependingonthedesiresoftheteam.Responsibilityforeachactionplanshouldbeassignedtoaparticipantorasubgroup.Aspecifictimeperiodshouldbefixedfor

Figure98

TheActionPlanningProcess

completinganactionplandraft;actionplanoutline;orevaluationofthepertinentaspectsoftheproblem,dependingonitscomplexity,needforoutsideinput,andtimeconstraints.Whenneeded,theassignedsubgroupcanarrangetomeetaftertheworkshoptofurtherdeveloptheplan.Eachactionplanorevaluationshouldbesharedwiththeentirepartneringteam.

Developingactionplansisoneofthemostimportantstepsoftheentireworkshopprocess.Itfacilitatesopencommunicationandcooperationacrossorganizationallines.Itis,therefore,amodelforfuturepartneringbehavior.Theuseofanactionplanworksheetishelpfulinensuringthatactionsareclarifiedandspecificallyassignedtoteammembersforcompletion.Figure99showsasampleproblem-solvingworksheet.Figure910illustratesanactionplanworksheet.

Theproblemidentificationprocessshouldbeexplainedbythefacilitator.Theprocessaddressesthefollowingsteps:

1DefinetheProblem

Aproblemshouldbedefinedasspecificallyaspossible.Definingtheproblemputsboundariesonthewayparticipantsunderstandaproblem:thatis,whatitis,andwhatitisnot.Workingtogethertodefinetheproblemwillensurethateveryoneattheworkshopunderstandstheproblem,andistalkingaboutaddressingthesameissue.Thesubjectofproblemidentificationanddefinitioncanbeinitiatedbyaskingquestionssuchas:

Whatmaygowrongonthisproject?Whatareasmayneedimprovement?Whattellsyousomethingiswrong?Isthisproblemasymptomofyetanotherproblem?Whatistheimpactofthisproblem?

Howcanthisproblembemademorespecific?

Afteraproblemisidentified,theparticipantsmayneedtorestateitseveraltimestoclarifyit.Thisrestatinghelpsparticipantsunderstandcriticalattributesoftheproblem.Thefirstwayaproblemisstatedoftenisincompleteorpoorlyarticulated.Participantsmaybecomedeadlockedinsolvingaproblemsimplybecauseofthewayitisdefined.Theultimatestatementofthe

PROBLEM-SOLVINGWORKSHEET

Writeabriefsentencestatingtheproblem.

Whatsymptomsindicatetheproblemexists?

Whatarethepossiblecausesoftheproblem?

Asaresultofsolvingthisproblem,whatdoyouwanttoachieve?

Factorsaffectingthisprobleminclude:

Risks?

Impactofignoringproblem?

Whatkeyplayersareneededtosolvethisproblem?

Listthepossiblecoursesofactionyoucouldtaketoaddresseachproblemcauseidentifiedaboveaspossiblecauses.

Figure99Problem-SolvingWorksheet

PROBLEMTITLE____________________________

_________Date/Time

AGREEDUPONSTATEMENTOFTHEPROBLEM________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

POSSIBLECAUSES____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

POTENTIALSOLUTIONS____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

THEPROPOSEDSOLUTIONWITHJUSTIFICATION________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

______________________________________________________________________________________ResponsibleTeamMember

______________________ResponsibleTeamMember

Figure910SampleActionPlanningWorksheet

problemmustrelateobjectivelytoperformance.Itmustbeasspecificaspossible.Ideally,aproblemstatementwilllenditselftoactionsthataremeasurable.Thismeansthatsuccesscanbeobjectivelyevaluated.Inaddition,problemstatementsshouldbemanageableinsizeandcomplexity;itisfutiletodefineaprobleminbroadtermsthatwouldrequireanoverlydiversesetofactions.

2AnalyzetheProblem

Thepurposeofanalysisistoclarifythefactorsthatcontributetotheproblemandexaminehowthesefactorsinteract.Theobjectofthisactivityisforthegrouptolearnabouttheproblemindetail.Problemsarepartoflargersystemsofinteractionamongpeople,corporatestructures,supplydemands,andcustomerneeds.Effectiveproblem-solvingtakesaccountoftheseexternalfactorsandconsiderswhethertheyarecausingtheproblem.Whenunderlyingcausesoftheproblemsareidentified,theteamismostlikelytoarriveatthebestsolution.

Toanalyzeaproblem,participantsshoulddiscusswhichfactorseachbelievesmaybecausingtheproblem.Forexample,participantsmaystatetheproblemthus:Weneedanaccurateprojectschedule.Searchingforthecausesofthatproblem,participantsmightcomeupwithalistthatrequiresadditionalquestionstobeexaminedtoaddresstheunderlyingcauses:

Howtoestimateaccurately?Howtomonitorongoingefforts?Howtokeeptasksontime?Howtoaltertheschedulewhenneeded?Howtocapturelosttime?

Sometimescausesofproblemsmaynotbeimmediatelyapparent.

Manytoolscanbeusedtoassistindeterminingtherealcausesofaproblem.Flowcharts,datacollection,cause/effectdiagrams,andhistoricalinformationarejustafewtoolsthatfacilitatorsmightsuggestbeusedtoascertaincauses.Itmaybenecessarytogatherinformationtoanalyzeaproblem.Ifso,theteamcanagreeontheprocessfordatagathering.Thismaymeanthattheactionplanisdevelopedaftertheworkshop.

Theparticipantsshouldconsiderallfactorsthataffecttheproblem.Thisincludesaskingwhethertheteamneedstospendtimeworkingitout.Whatistheriskoftotallyignoringthisproblem?Theanswertothisquestionwillassesstheimportanceofsolvingtheproblemandprioritizeitamongotherproblems.Oftenaprobleminitiallyappearstohavemoreimpactthanitactuallydoes.Theteammaydecidethataproblemhaslittleornorealimpactontheproject,andcanrefocusonmorecriticalissues.

3ConsidertheCharacteristicsofanIdealSolution

Buildingonproblemanalysis,participantsbeginthinkingaboutsolutions.Agoodwayforparticipantstostartdevelopingsolutionsistothinkaboutthecharacteristicsofanidealsolutiontotheproblem.Itisimportanttothinkaboutthecharacteristicsoftheidealbeforeconsideringspecificsolutionstotheproblemathand.Thesehallmarksofthebestpossibleoutcomearethenusedtoevaluatespecificsolutions.Byseparatingthediscussioninthisway,agroupcanavoidlimitsoncreativityandthepossibilityofhardfeelingswhenproposedsolutionsaresuggestedandcritiquedoneafteranother.

4DevelopPossibleSolutionsandaPlantoResolvetheProblem

Next,theparticipantsshouldbechallengedtogeneratealistofthebestpossiblesolutionstotheproblem.Afteralistiscreated,eachoptionisevaluatedandrefined.Possiblesolutionsareagaincomparedtothecharacteristicsofanidealsolution.Throughconsensusoftheparticipants,thebestsolutionisselected.Aplanofactionisthendesignedtoreachthisbestsolution.Questionstoaskforeachactionplaninclude:''Whatshouldbedone?"and"Whenshoulditbegin?"Someproblemscanberesolvedimmediatelywithasimplesolution;otherproblemsmaybemorecomplexandneedadetailedplanthat

willbeimplementedoverthelifeoftheproject.

5DesignateResponsibleTeamMembers

Afteraplanisdeveloped,thegroupmustdecidewhichteammembersarebestsuitedtoimplementthesolution.Theseteammembersarethechampionsfortheactionplan.Theyareresponsibleforrecognizingthesymptomsoftheproblemandworkingtogethertocarryouttheactionplan.Forpotentialproblems,responsibleteammemberswillbeassignedtowatchforthatissuetoemergeandtoalerttherestoftheteamshoulditbecomeaproblem.

DIssueResolutionLadders

Day-to-dayjob-siteissuesareresolvedmoresmoothlyiftheteamhasaprocessinplacetofollowwhentheyarise.TheIssueResolutionLadderestablishesadecisionprocessthatisacceptabletotheteam,andhelpstoensurethattheseday-to-dayissueswillbeaddressedinatimelymanner.ThetypicalIssueResolutionLadderidentifiesresponsibleteammembersateachlevel,withinthestakeholderorganizations,whoareexpectedtoworkonresolvingtheissues.Whentheissuecannotberesolvedatthelowestorganizationallevel,theissueiselevatedtothenextlevelforresolution.Ignoringanissueisnotacceptable.Further,unresolvedissuesmustbeescalatedinatimelymanner.Infact,manyteamsspecifytimeperiodswhenissuesmustbeescalatedtothenextleveliftheyarenotresolved.Somesetlimitsonfieldleveldecision-makingandforceanescalationtohigherlevelsofmanagementwhenissuesinvolvecriticalpathdelaysorsubstantialcoststotheproject.

AgroundruleforIssueResolutionLaddersisthattherewillbenojumpingoflevelsor"rungs"ontheladder.Teammembersareexpectedtofollowtheladder.Thisencouragesissuestoberesolvedatthelowestappropriatelevel,whileatthesametimemakingit

acceptabletoelevateanissuewhennecessary.IssueResolutionLadderscantakemanyforms.Someteamscreateamatrixoftheorganizationsshowingeachindividual'sresponsibility.Oftentimesateachlevelthereareseveralnames.Figure911showsoneformofanIssueResolutionLadder.

Attheworkshop,thefacilitatorpresentsthetaskofcompletingtheIssueResolutionLadderdirectlytotheparticipantsasa

Figure911IssueResolutionLadder

jointtaskfortheircommoneffort.Oncomplexprojects,theremaybedifferentprojectareasthatrequirespeciallytailoredIssueResolutionLadders.Forexample,theconstructionmanagementgroupwillhavedifferentnamesonitsladderthanwillthefinancial,engineering,orqualityassurancegroups.Thisisanopportunityforthefacilitatortosubdividetheteamintogroupswithparallelresponsibilities.ThesegroupscanthencreatetheirownIssueResolutionLadders.

TheIssueResolutionLadderservesseveralimportantpurposes.Itclarifiesrolesandresponsibilitiesformakingdecisions.Itprovidesspecifictimesfordecisionmaking.Itallowsforanorderlyandspecificescalationofanissue.Finally,itcanbeusedaspartoftheproblem-solvingprocesstoidentifycriticalfactorsandencouragecreativesolutions.

ECreatingaDisputeResolutionActionPlan

WhenateamdealswithresolvingissuesatthelowestlevelandpreparesanIssueResolutionLaddertopromotedecisionmaking,mostconcernswillberesolved.However,theparticipantsmustdecidehowtodealwithissuesnotresolved.Unresolvedissuesmayleadtodisputesthatcanbecomecontractclaims.Whenthisoccurs,litigationoftenresults.Butlitigationisnotasatisfactoryanswerforateamthathopestomeetitspartneringgoals.

Fortunately,todaythereisanalternativetolitigationthatmanypartneringteamsmaywishtoconsider.ThegrowingareaofADRoffersmanytechniquesthatcanassistinresolvingdisputeswithoutlitigation.ThisbookincludesadiscussioninChapter13devotedtothevarietiesofADRtechniquesavailable.Partneringteamsshouldrealizethisisalargetopicrequiringtimeandstudytomakeaninformeddecision.TheymaydecidethattheywanttocommitthemselvestoconsideringADRasaninterimstepbeforeadisputeis

consignedtolitigation.

Whenpartneringworkshoptimepermits,theteamcandiscussanddecidewhatADRtechniquestheywouldliketoemployasabackupfortheteam.ThefacilitatorcanintroducethetopicandmaygiveabriefingonADRtechniques.Theteammustthendecidehowtoapproachthesubject.ItisrarethatworkshoptimewillbesufficientforaseminaronADR.Theteammaywishto

assignresponsibilityfordevelopinganADRplantoasubgrouporactionteamthatwillthendevelopaplanintheweeksfollowingtheworkshop,forexample.TheteammaywishtogivetheADRactionteamguidelinesonwhattoconsiderastheplandevelops.ThefacilitatorcanassisttheactionteamtobrainstormconcernsfortheADRplantoaddress.

ItwouldbeappropriatefortheteamtoconsidertheroleoflawyersinbuildingtheADRactionplan.Iflawyershaveparticipatedattheworkshop,theymayreadilybeincludedontheactionteam.Iflawyershavenotbeenattheworkshop,thereistheopportunityfortheirskillstobeusedandforthemtobecomeacquaintedwiththeprojectandthepartneringprocess.TheroleofthelawyerinpartneringisdiscussedinChapter15.

96WorkshopClosure

Thefinalsteponthepartneringagendaistoreachclosureonworkshopitemsbeforeteammembersdepart.Thisusuallyconsistsofdraftingthecharter,planningforthefuture,signingacharter,andcelebratingthenewrelationship(SeeFigure912).Theagendaneedstobecarefullymanagedtoallowsufficienttimetoconducttheactivitiesnecessarytowrapuptheworkshop.Thisisamajorresponsibilityofthefacilitator,whomustwatchtheclockclosely.

WORKSHOPCLOSUREDrafttheCharterPlanfortheFutureSignandCelebrate

Figure912WorkshopClosure

ADrafttheCharter

Asignificantpartofwrappingupthepartneringworkshopisthepreparationoftheteam'scharter.Thisisthesinglerecordthatdescribestherelationshipcreatedattheworkshop.Itneedstobepreparedattheworkshopandreflecttheconsensusofthewholeteam.Itisoftenhelpfultouseaworksheetwhendevelopingthecharter.Figure913isasampleworksheet.Thefacilitatorshouldarrangetohavethecharterprintedoutimmediatelysoitcanbesignedbyallparticipantsbeforetheworkshopends.

BPlanfortheFuture

Anotherpartofwrappinguptheworkshopisdevelopingaplantosustainthenewrelationship.Thisisamajoritemontheworkshopagenda.Asubgroupmayactuallydeveloptheplan,butallparticipantsshouldagreetoit.Thisreflectstheparticipants'commitmenttothepartneringteam.

Developingaplantomonitortheeffectivenessofpartneringthroughouttheprojectisessentialtomaintainingahealthyteam.Theplanmayprovideforfollow-upmeetingsandevaluationforms.Somepartneringteamsmaywanttoevaluateday-to-dayoperations,suchasresponsivenesstorequestsforinformation,timelychangeorderprocessing,shop-drawingreviewturnaroundtime,andschedule.Otherpartneringteamsmaybemoreinterestedinteamperformance.Theymayquestionwhethertheteam'spurposeiscleartoallmembers.Dotheindividualteammembersfeeltheyarepartoftheteam?Dosometeammembersfeeltheyarerestrictedbythegroup?Isthereopen,honestcommunication?Isthewholeteammakinggooduseoftheirskills?Areteammembersencouragedtoparticipate?Isconflictpreventedoravoided?Doafewteammembersruntheshow?

Evaluationformscanaskanyorallofthesequestions.Theresponsesontheevaluationformscanbeasignificantpartinplanningthefollow-upsessionagendas.AcompletediscussionoftheplanningprocessforsustainingtherelationshipisfoundinChapter11.Inthatchapter,evaluationformsandasamplefollow-upsessionagendaareprovided.

Whatisimportanttoyou:Personally?__________________________________________________________________________________________________________________________________________Professionally?__________________________________________________________________________________________________________________________________________Organizationally?__________________________________________________________________________________________________________________________________________CoreValuesToprepareavisionstatementforthisproject,itisnecessarytodefinethosecorevaluesyouandyourcompanyconsiderimportantenoughtodrivebehaviorsonandaroundthisproject.Personal_______________________________________________________________________________________________

YourOrganization_______________________________________________________________________________________________

PartneringTeam_______________________________________________________________________________________________

GuidingPrinciplesStatementsValuestatementsthatreflecthowyouwantteammemberstoconductthemselvesonthisproject.Theseareoperationaldefinitionsofcorevaluesselectedbytheteamasthosevaluestheywillnevercompromise.1.___________________________________________________________________2.___________________________________________________________________3.___________________________________________________________________4.___________________________________________________________________5.___________________________________________________________________GoalsListyoursuggestedspecificandmeasurabledesiredaccomplishmentsforthisproject.1.___________________________________________________________________2.___________________________________________________________________3.___________________________________________________________________4.___________________________________________________________________VisionStatementListelements,words,orphrasesthatyouwouldliketoseeintheteam'svision

statement.____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________DraftVisionStatementWriteadraftvisionstatementusingoneortwosentences.Itshouldbeconcise,inspiring,andchallenging.__________________________________________________________________________________________________________________________________________

Figure913PartneringWorksheet

CSignandCelebrate

Thefinalactivityoftheworkshopisfortheteammemberstosigntheteam'scharterandcelebratethebeginningoftheirnewrelationship.Theteammemberssignthechartertoexpresstheirpersonalcommitmenttotheteam'smutualvisionandcommongoals.Thesigningshouldbedonewithallteammemberspresent.Teamphotographsaresometimespartofthecharter-signingcelebration.Ifphotographsaredesired,arrangementsshouldbemadeinadvancetohaveaphotographeravailablewhenteammemberssignthecharter.Also,someteamsmaywanttocelebratetheirnewrelationshipbydesigningaspecialteamlogoforthecharter.However,theteamshouldavoidspendinganinordinateamountoftimecomingupwithalogoforthepartneringteam.Asageneralrule,thedesignofthelogoshouldbekeptsimpleandshouldnotdelaythesigningofthecharter.Followingthesigningofthecharter,theteammaywanttohaveareceptionordinnertocelebratethisnewrelationship.Ingeneral,theflowoftheentireworkshopisshowninFigure914.

97PartneringWorksheet

Tobuildthecharter,itishelpfultouseaworksheetsimilartoFigure913(Seepage130).Referencemaybemadetothisworksheetthroughouttheworkshopforthepurposeofworkingtowardtheformulationoftheteam'scharter.Participantsmaybeaskedtojotdowntheirideasintheappropriatepartoftheworksheetforaboutfiveminutespriortoateamorsubgroupdiscussingthesubject.

98SampleWorkshopAgendas

Two-DayWorkshops

Thevastmajorityofpartneringworkshopsforconstructionprojectsareconductedoveratwo-dayperiod.Sometimes,thework-

DAYONEIntroductionsSetGroundRulesStatePersonalExpectationsPresentOrganizationChartsDescribePartneringDoCooperation/CommunicationExerciseConductPersonalStyleDiscussionIdentifyPotentialProjectProblemsDiscussCommonGoalsandMutualVisionDAYTWOIdentifyCoreValuesConductProblem-SolvingMakeActionPlansDevelopIssueResolutionLadderCreatePlanfortheFutureDevelopCharterSigntheCharterCelebrate

Figure914Two-DayAgendaFlowchart

shopmayextendtothreedayswhenthestakeholdersareunsureofpartneringandarereluctanttochangetheirpastpractices.However,thisisrare.Apre-workshopdesignmeetingwiththefacilitatornormallyhelpstofittheneedsofthestakeholdersintotheagendaoftheworkshop.Thescopeoftheactivitiesdescribedinthischapterisbasedonthetwo-dayworkshop.Inatwo-dayworkshop,afacilitatorshouldbeabletocompletealloftheagendaitems.(SeeFigures915and916.)

AGENDADAYONEIntroductionsGroundRulesWorkshopExpectationsPersonalStyleAssessmentHandlingChangeDiscussionof"WhatIsPartnering"OrganizationandRolesLunchTeam-BuildingExercisesTeamProcessViewpointsBarriersModelProjectCharacteristics/InterestsVisionDevelopmentDAYTWOExpectedProblems(RocksintheRoad)ActionPlanDevelopmentIssueResolutionLadderPartneringCharterDevelopmentLunchDisputeResolutionDiscussionActionPlanPresentationFollow-UpPlanningSigningPartneringCharterClosure

Figure915SampleAgendaIforaTwo-DayWorkshop

AGENDADAYONEIntroductionsPersonalExpectationsandConcernsPresentOrganizationChartsPartneringDescribedStyleDiscussionCooperation/CommunicationExerciseLunchVisionDiscussion''RocksintheRoad"DiscussPotentialGoalsPreliminarySubgroupMeetings(GoalDevelopment)DAYTWOIdentifyCoreValuesSharedByGroupDevelopVisionStatementDraftReportonGoalsDevelopIssueResolutionLadderLunchConductActionPlanningCreateEvaluationProcessCreateImplementationStrategyCharterDevelopmentSignCharter

Figure916SampleAgendaIIforaTwo-DayWorkshop

BOne-DayWorkshops

One-daypartneringworkshopsarerareformostconstructionprojects.However,unusualcircumstancessuchaslimitedfunds,teammemberavailability,andprojectsizemayallowlessthananidealamountoftimeforthepartneringworkshop.Ifthepartneringteammembershaveexperiencepartneringonotherprojects,itmaybepossibletoshortentheagendatofitaone-dayworkshop.Certainly,aone-daypartneringworkshopisbetterthannoneatall!

Inaone-dayworkshop,severalstepsmustbereducedoreliminated.Thefocushereneedstobeonunderstandingpartnering,establishingcommongoals,recognizingtheimportanceofteamwork,andsigningthecharter.(SeeFigure917.)

99WorkshopFlexibilityandStructure

Thepartneringworkshophasadefinitepurposeandclearobjectives.Itseekstochangeseparatestakeholderswithaconfrontationalhistorytoaunifiedteamwithamutualvision.Ataworkshop,eachpartneringteamwilldevelopitsownuniquerelationship,tailoredtotheinterestsoftheparticipantsandthenatureoftheproject.Partneringcreatesanewparadigmfortherelationshipbetweenthepartiesinaconstructionproject.

Duringtheworkshop,participantsbecomefamiliarwiththenatureofthenewparadigmandhowtomakethechangesuccessfully.Thepartneringworkshopprovidesadefinitestructure,andbroadflexibilitywithinthatstructure.Theworkshopprocesscontainsadefinitestructurefoundinitsagenda,andpermitsflexibilitywithinthatagendatoaccommodatetheneedsandexperienceoftheparticipants.Flexibility,withinastructuredagenda,shouldbetheway

theteamaddressestheirworkingrelationshipduringthecourseoftheprojectaswell.Partneringissustainedwhenteammembershaveaplantomeetregularly,evaluatesuccess,andfindwaystoreinforcethenewparadigmstheyhavecreatedintheirinitialworkshop.

WORKSHOPAGENDAIntroductionStatePersonalExpectationsDescribePartneringDiscussImportanceofCooperation/CommunicationDevelopMutualVisionIdentifyPotentialProblemsDiscussCommonGoalsPlantoSustaintheRelationshipDevelopCharterSignCharterCelebrate

Figure917SampleAgendaforaOne-DayWorkshop

Chapter10ThePartneringCharter101TheNeedforaWrittenCharter102CharterElements103BuildingtheCharter104MutualVision105CommonGoals106ImplementationPlanfortheCharter107TheImportanceoftheCharter108SampleCharters

101TheNeedforaWrittenCharter

Sometimesparticipantsatthepartneringworkshopquestiontheneedtowriteapartneringcharter:"Ifcommunicationshavebeensoopenandsuccessfulwhydoweneedaformalcharter?Whyshouldourteamgoalsbememorializedinwriting?Ithoughtpartneringputthehandshakebackinconstruction,sowhoneedsanotherdocument?"

Theanswertothesequestionsisthatthecharterisameansofdocumentingparticipants'personalcommitmenttotheprinciplesthatwillguidethemduringtheirrelationship.Itservesasaconcisewrittenreminderofthevaluetheparticipantsplaceonworkingcollaborativelyandthedesiretochangefromanadversarialtoacooperativerelationship.Draftingthecharteralso

servestoestablishasenseofgroupownershipamongtheteammembersbecausetheyhaveanactivepartindeveloping,writing,andadoptingthecharter.Theparticipantsarenowaunifiedteamcapableofhavinganexistencethatisdistinctfromanyindividualmemberororganization.

Thecharteris,therefore,thesymboloftheteam'snewworkingrelationship:partnering.Itistheculminationofthepartneringworkshopactivitiesanditsummarizescommitmentsreachedduringtheworkshop.Withoutawrittenrecord,theteammemberscaneasilyforgettheircommitmenttothepartneringrelationship,andthemutualvisionandcommongoalsthattheyhavesetforthemselves.Itwouldbeasifagroupofpeoplegottogetherforatwo-dayseminarandwentawaywithfondmemoriesbutnolastingimpressionofaccomplishment.

Anotheradvantageofhavingacharterinwritingisthateveryteammembercantakeatangibleproductbacktotheirrespectiveworkplaces.Thechartercanbeusedthroughouttheprojecttoreinforcetheteam'scommitmentandtoremindtheteammembersofthegoalstheyagreedtointheworkshop.Additionally,ifadisagreementbeginstodevelop,thechartercanbeareferencetoolforresolvingitinatimely,efficientmanner,withtheleastimpacttotheproject.

Awrittenrecordofagroup'sfundamentalprinciplesisnotunusualoruncommon.Mostcountrieshavefoundingdocumentswordsthatembodythespiritofthenationandtherelationshipofthegovernmentandpeople.TheMagnaCartaembodiedprinciplesoftherelationshipofEngland'snobilityandtheirking.TheU.S.ConstitutionestablishedtheframeworkoftherelationshipofAmericansandthegovernment,andtheirrolesandresponsibilities.Thepartneringcharterdoesthesamethingasthesefundamentaldocuments;itrecordsthe

commitmenttotheprinciplesunderlyingtherelationship.Thecharterisanessentialproductthatrequirescapturingtheinputofeveryparticipantattheworkshop.Thecharteristhesymbolofthepartneringrelationshipandthefoundationforthenewteam'sinteractions.

102CharterElements

Thecharterisastatementoftheteam'smutualvisionforthefutureoftheproject.Generalstatementsencourageteammem-

berstodowhattheyagreedtheywoulddoattheirinitialpartneringworkshopthroughouttheperformanceoftheproject.Inmostrelationships,thepartneringcharterconsistsofcommitmentstoteamwork,communication,problem-solving,andempowereddecision-making.Thecharter,forexample,mightalsoincorporatestandardsofquality,budgetarygoals,safety,risksharing,andfulfillingthedesignintent.Thereis,however,nosetformulafortheingredientsthatmakeupthecharter.Theonlyrequirementsarethatitshouldbeaclear,concisestatementoftheteam'smutualvisionandcommongoals.Theoverallmessagesshouldbeeasytorecall.Thechartershouldexpresstheprinciplesthatwillguidetheteammembers'conductduringtheircontractualrelationship,andembodytheexpectationsofteammembers'behavior.Howtheyarestatedisuptothepartneringworkshopparticipants.Finally,thechartershouldbesignedbyeverymemberoftheteam.

Perhapstheonlyspecificcriteriasuggestedforthecharterisitslength.Thisiscontrolledbycertainfactorsthatunderliethereasonforthecharter.First,thepartneringcharterisnotacontractoracontractamendment,althoughitwillbesignedbyallteammembers.Thechartershouldcontainonlytheteam'smutualvision,astatementofcommongoals,andtheteam'sguidingprinciples.Second,itshouldbeavailableforreadyreferencebyallteammembers.Oftentimes,thismeansthatthecharterwillbeframedanddisplayedatprominentlocationsatthejobsiteandintheteammembers'offices.Finally,thechartermustbeconcisetoencouragesharedunderstandingofitsterms.Forthesereasons,mostchartersarenotmorethanonepageinlength.

103BuildingtheCharter

Thecharterisdevelopedusingtheexperience,desires,andideasthat

participantsshareduringtheworkshop.Whenparticipantsexploreareasofcorevaluesandpositiveworkingrelationships,theyarepreparingthebuildingblocksofthecharter.

Theactualdevelopmentofthechartershouldbeledbythefacilitatorwithallparticipantspresent.Thefacilitatorwilloftensuggeststepsindevelopingthepartneringcharter.Usually,the

participantswilldividetasksamongthemselves,workseparatelyinsmallgroups,andthenreportbacktotheentiregroup.Oneapproachusedbysomefacilitatorsistohaveeachsmallgroupdraftitsowncharter.Theneachsmallgrouppresentsitsversionofthechartertotheentiregroup.Afterallthepresentationsaremade,thefacilitatorcanleadtheconsolidationofthepresentedversionsintoacollectivefinalcharter.Anothermethodistoselectoneversionofthecharterdevelopedinthesmallgroupsessionstobeusedasaframethatcanincorporateideasfromtheothersmallgroups.Nomatterwhatapproachistaken,itisimportantthattheparticipantsavoidgettingboggeddowninpersonalinterests.Anexperiencedfacilitatorcanrecognizethisproblemquickly,andefficientlyresolveitbyencouragingindividualstoactivelylistenandtonotmonopolizetheprocess.

Figure101isanexampleofaworksheetthatcouldbegiventoparticipantsinadvanceoftheworkshoporcompletedduringaquiettimeduringtheworkshop.

Oncethegroup'sideasareincorporatedintoadraftcharter,aconsiderableamountoftimemaybespentwordsmithing.Wordsmithingisanimportantprocessthatallowseachpersontocontributetothedocumentandbuildconsensus.Theparticipantsmaydebatetheuseoftherightverboradverb,forexample.Again,thisprocessisaprecursortothewayteammemberssolvelargerproblemsdowntheroad,utilizingconsensus-buildingratherthantakingpositions.Itisimportantthatthefacilitatorusethisactivityofwordsmithingasateachingtool.Whenparticipantsworktogethertofindtherightwordforthecharter,theyhaveacommonpurposeandareworkingcollaboratively.Teammembersmustlistentoothersandseekthecombinationofwordsthatwillallowalltogivetheirassent.Thisistheveryessenceofpartneringconsensus.Itisimportantthatconsensusisreachedwitheveryparticipantinthewordingofthefinal

document.Everyonemustbuyin!Theyneednottotallyagreewitheachword,buttheycannothavefundamentaldisagreementwiththedirectionofthestatement.

Anotherconsiderationisthetimingofwritingthecharterduringthecourseoftheworkshop.Thepurposeofmanyofthepartneringworkshopactivitiesistogainingknowledge,developinformation,andmakedecisionsaboutwhatshouldbeinthecharter.Thecharterformationisthelaststepincapturingthe

Company/Organization_______________________________________________Thepartneringcharterreflectsthedesiresoftheorganizationsinvolvedintheprojectthroughastatementofvision,values,andculture,andoutlinesmutualgoalsfortheproject.ValuesToprepareavisionstatementforthisproject,itisnecessarytodefinethosevaluesthatyouandyourcompanyconsiderimportantenoughtodrivebehaviorsonthisproject.Whatisimportanttoyouandtoyourcompanyororganization?1.___________________________________________________________________2.___________________________________________________________________3.___________________________________________________________________4.___________________________________________________________________Theinterestsofallpartiesneedtobeconsideredwhencreatingmutualgoals.Win-winthinkingisonlyachievedwhendoingworkthatwilltrulybenefitallparties.Mutuallyagreedupongoalsmayincludevalueengineeringsavings,completionaheadofschedule,limitingcostgrowth,fastturnaroundofsubmittals,zerolost-timeaccidents,zerolitigation,minimizingdocumentation,practicingthecommonvalues,andanyotherproject-specificgoals.Describebelowyourspecificandmeasurablegoalsforthisproject:1.___________________________________________________________________2.___________________________________________________________________3.___________________________________________________________________4.___________________________________________________________________Elementsorphrasesthatyouwouldliketoseeinthevisionstatement:1.___________________________________________________________________2.___________________________________________________________________3.___________________________________________________________________

4.___________________________________________________________________

Figure101PartneringCharterWorksheet

vision,goals,andcommitmentmadebyeachparticipant.Theactualwritingofthecharterusuallyoccursattheveryendoftheworkshoppossiblyduringthelastone-and-a-halftotwohours.Thisallowstheparticipantsampletimetoreflectonwhathasbeendiscussed,andtoconsidertheirroleintheteamandtheirpersonalcommitmenttothegroup.

104MutualVision

Most,ifnotall,partneringchartersbeginwithasimplestatementoftheteam'smutualvision.Thisiscommonlylabeledamissionstatement,avaluestatement,orapurposestatement.Nomatterwhatthetitle,themutualvisionisintendedtocapturetheessenceoftherelationship.Itshouldbeconcise,inspiring,andcompelling.Normally,thevisionstatementisnomorethanoneortwosentences.

Thefacilitatorwillpreparetheteamforwritingthemutualvisionstatementbyassistingparticipantstodefinecorevaluesandpositivebehaviors.Participantsmaybeaskedtoreflectonpastexperiences,positiveandnegative,tohelpthemgaininsightintopreparingthevisionstatement.Peopleenjoyrelatingtheirpersonalexperiencestocolleagues,yettheymustbeencouragedtoreflectontherootcausesforsuccessorfailureinparticularinstances.Thefacilitatorallowsgroupstointeractinformallyinrelatingsuchexperiences,butthenprovidesdirectguidanceinhelpingthegroupdefinealistofpositivevaluesandbehaviors.Perhapsthebestwaytodescribeamutualvisionstatementistogiveexamples.Partneringteamshavedescribedtheirvisionas:

"We,asapartneringteam,arecommittedtoopenandhonestcommunicationinanatmosphereofmutualtrust,flexibility,jointproblem-solving,andteamwork."

"Workingtogetheraspartnersinanatmosphereoftrustandmutualrespectwithopenandhonestcommunication,wearecommittedtodeliveringaprojectofhighestquality.Wearededicatedtoremainingflexibleinappreciatingandaddressingtheneedsofallpartnersinthepromptresolutionofproblemsastheyarise."

"Ourcharterforsuccess...isourcommitmenttoworkcooperativelyandinharmonyandtocommunicateopenlyinanatmos-

phereofconfidenceandtrust.Wewillworkasateamtobuildactionplans,tobreakdowncommunicationbarriers,resolveconflictsatthelowestpossiblelevel,tostreamlinethepaperworkprocess,andbuildateamspirittoachievemaximumsuccessforall:aqualityproject,asafejobsite,on-timecompletion,withinbudget,withafairprofitforthecontractor."

"We...arecommittedtoapositiveutilizationofpartneringintheperformanceandadministrationofthiscontract.Webelievethatthroughpartneringwewillbeabletoprovideadependable,reliable,qualityproductcompletedontimeandwithafairprofitfor[thecontractor].Wewillworkasateamtobuildactionplans,breakdowncommunicationbarriers,resolveconflictsatthelowestlevelpossible,andbuildteamspirittoachievethemaximumsuccess."

"We...arecommittedtoapositiveutilizationofpartneringintheconstructionandcontractadministrationofthisproject....Ourgoalswillbeachievedthroughacommitmenttoteamworkandpartneringcharacterizedbymutualtrust,responsiveness,flexibility,andopencommunication.Toaccomplishthesegoals,we...committoprojectdecision-makingatthelowestpossiblelevelwithintheteamattheprojectsite."

Theseexamplesshowthekindsofcorevaluesandpositivebehaviorsteamshavearticulatedasembodimentsoftheirmutualvision.Thevarietyofexpressionintheseexamplesindicatesthecreativitythathasmotivatedtheparticipants,andyetrecurrantthemesareeasytofind.Craftingthevisionstatementisyetanotherexampleofastructureandprocesswithinwhichtherecanbetremendousflexibilityforexpressingtheindividualneedsoftheparticipants.

105CommonGoals

Establishingcommongoalsfortheteamisthekeystoneofthecharter.Sincethecharteristhesymbolandfoundationofthenewworking

relationship,thedevelopmentofthecommongoalsisparamountinorganizingtheframeworkforthecommitmentsthatarebeingformalized.Thesegoalsmustberealisticandobjectivelyattainableandshouldreflectthevisionoftheteam.

Somepartneringchartersincludedetailedcommongoals.Partneringteamshaveincludedcommitmentstoimprovespecific

functions,suchastimelyprocessingofchangeorders,quickturnaroundonrequestsforinformation,promptshop-drawingreviews,anddisputeresolutionatthelowestlevel.Thechartermayalsoincludestandardsforquality,budgetarygoals,safetygoals,andrisk-sharingmechanisms.Asanexample,thecharterfortheJohnJ.SparkmanCenterAdditionatRedstoneArsenalinHuntsville,Alabama,includedgeneraltermsofteamwork,andthegoalsofprovidingasafe,qualityproject,completedontimeandwithinbudget;timelyandequitableproblemresolution;andmutualrespect.

Sometimesthecommongoalsinthecharterwillbestatedinabsoluteterms.Forexample,theteammaychoosetostrivefor''zerolost-timeaccidents"duringthecourseofconstruction.Careshouldbetakenwhenusingabsolutetermsinagoal.(SeeFigure102foranexampleofwhensettingspecificgoalscanpresentaproblem.)Ifanambitiousorunrealisticgoalisnotattained,then

ThecharteroftheJ6TeamforLargeRocketTestFacilityatArnoldAirForceBase,Tennessee,containedanabsolutegoalofzerolost-timeaccidents,andawarding100percentoftheawardfee.Duringthelifeofthecontract,thecontractorperformednearly2.3millionman-hoursofworkwithonlyfourlost-timeaccidentsaphenomenalachievement.However,duringonespecificaward-feeperiod,oneoftheaward-feeofficialsdeterminedthattheawardfeeshouldbereducedbecausetheabsolutegoalofzerolost-timeaccidentswasnotachieved.Ittookconsiderablediscussionbetweentheteamandtheaward-feeboardtoconvincetheboardthatonelost-timeaccidentwasnotafailure,andthereforewasnotsufficientreasontoreducetheawardfee.Thepartneringchartersetsgoals,notcontractobligations.Thetwoarenotmutuallyexclusive,butthecharterisnotintendedanddoesnotfunctionasacontractaddendum.

Figure102SpecificGoalsCanBeaProblem

theteammayfeelthattheyhavefailed.Careshouldbegiventoprovidingflexibilityinstatingagoal.Someteamsmayexpresstheirgoalinmoregeneralterms,suchas"maximizevalueengineering."Othersmayestablishdefinitegoalssuchas"attain2percentvalueengineeringsavings."Theteamhasthediscretiontodeterminewhichwaytheywanttohead.Thedecisionwilldependuponthematurityoftherelationshipandthepartneringexperienceoftheparticipants,withmoreexperiencedteamstypicallychoosingmorespecificgoals.Whentargetsaremeasurableandconcise,itiseasiertogaugeperformance.Failingtomeetanambitiousorunrealisticgoalmayleadtofrustrationforateam.Facilitatorsshouldhelptheteambalancetheneedformeasurablegoalswiththeneedtoevoketeamspiritthrougharticulationofsubjectiveideals.

Figure103containsalistofexpressionsofcommongoalsthatmightbefoundinapartneringcharter.Ifeachtopicisexaminedmoreclosely,itisnothardtoseewhyapartneringteamcouldfindcommongroundusingthesecategories:

Time.Thetimeallottedtocompletingtheprojectisimportanttoallparticipants.Meetingthescheduleforcompletionhasramificationsforthedesigner's,contractor'sandowner'sbudget,costs,andprofits.Inotherwords,"Timeismoney."

Budget.Thoughoftenconsideredanowner'sissue,finishingaprojectwithinbudgetassuresthecontractorafairprofitandtimelypayment.Often,teamswillmentionpromptpaymentaspartoftheirbudgetgoal,realizingthatcashflowiscriticaltothecontractor'sabilitytoperformeffectively.

Communication.Noonelikestobeblindsidedbyaproblem.Whencommunicationisopenandcandid,teamscanaddresspotentialproblemsproactively.Thisbuildstrustandmakesworkingrelationsbetter.

Safety.Safejobsitesbenefiteveryone.Thisisaclearwin-winsituationfortheteamtohelpkeepprojectcostsandinsuranceratingslow.Toooften,safetyisconsideredtobeonlya"contractorissue,"butwhentheownercommitsresourcesandavisiblepresenceinpromotingsafety,thisgoalcanbereached,withbenefitstoteamunityandspirit.

ValueEngineering.Valueengineeringeffortsmustovercomepotentialdifferencesinprofessionalopinionsamongtheowner,designer,andcontractor,andrecognizethatsuchproposalstake

Eachpartneringcharterisuniquetotherelationshipamongtheparticipants.Nonetheless,therearecertaincommongoalsthataretypicaltomostcharters.Thesecommongoalcategoriesarepresentedherewithasampleofthestatementsthatareoftenusedtodescribethem.GoalCategory SampleStatementTime Wewillcompletetheprojectontimeoraheadof

schedule.Budget Wewillmanagecoststoassistcompletionofthe

projectwithinbudget.CommunicationWewillbeopenandhonestincommunicationinour

dailyoperations.Safety Wewillmaintainanabsolutelysafeprojectforall

participants.ValueEngineering

WewillworktogethertotakeadvantageofallVEopportunities.

IssueResolution

Wewillquicklyraiseandresolveissuesatthemostappropriatelevel.

Follow-UpSessions

Wewillmeetperiodicallytoreviewoursuccessandrenewourcommitmenttopartnering.

Quality Wewillconstructtheprojecttoachievethedesignintentandcustomerexpectations.

Team-Building Wewilldeveloparealteamspiritcharacterizedbytrust,respect,andcollaboration.

Paperwork Wewillminimizepaperworkandalwayspracticetheconceptof"talkbeforeyouwrite."

Litigation Wewillcompletetheprojectwithoutlitigation.Profitability Wewillworktogethersothatthecontractorand

designerwillmakeareasonableprofit.

Figure103SamplePartneringCharterCommonGoals

timetoprepareandyetmaynotbeadopted.Aresponsivevalueengineeringactionplandevelopedwithaneyetowardremovingthesebarrierscanyieldsubstantialdividendsfortheteam.

IssueResolution.Efficientandeffectiveproblem-solvingiscentraltoteamsuccess.Whenissuesareraisedandsolvedattheoperationallevelbyhands-onmanagers,projectdelaysareminimizedandsolutionsarebetterachieved.Teamsarechallengedattheworkshoptobuildescalationladdersthatassigntime-criticalissueresolutionresponsibilitytopairedindividualsineachaffectedorganization.

Follow-UpSessions.Teamsdedicatethemselvestocontinuingtheirgoodworkingrelationshipwhentheycommittomeetregularlyatfollow-upsessionsduringconstruction.Thesearemorethanproject-orientedmeetings;thepurposeisexplicitlytore-examineandre-dedicatethegrouptopartnering.Oldwaysdiehardsuccessfulteamstakethetimetorejuvenatethenewparadigm.

Quality.Thisissueisoftenconsideredtobeanowner'sprimaryconcern.However,contractorshaveastronginterestincreatinganexcellentproductthatsatisfiesthecustomer.Clearly,thereiscommongroundtostriveforexcellenceinqualityperformance.

Team-Building.Theteammetaphorrefersfirsttoindividualattitudestowardtheothermembersoftheteam,andsecondlytothewaycommongoalsdefinethegroupeffort.Teamspiritputsgroupsuccessaheadofindividualconcerns.Whencommongoalsdefinegroupsuccess,unifiedteameffortcanbedirectedinthemostproductiveways.

Paperwork.Manypartneringteamsidentifyexcessivepaperworkasanissuerequiringgroupeffort.Underlyingtheantipathytopaperworkistherealizationthatamemorandumisoftenusedasasubstituteforperson-to-personcommunication.Teamsrealizethatdecisionsmust

beappropriatelydocumented;ontheotherhand,theyrealizethatunnecessarypaperworkcanbeabarriertoproductivecommunication.Hence,manyteamsexpresstheirgoalas"talkbeforeyouwrite."

Litigation.Itiseasyforpartneringteamstorealizethatlitigationrepresentsalose-loseoutcome.Nooneenjoyslitigationbecauseofthetimeandcostsrequiredtoprepareforcourt;paymentsaredelayed;theoutcomeisindoubt;andsomeoneelsenotassociatedwiththeprojectmakesthedecisionthatendsthe

dispute.Someteamshaveagoalof"nolitigation."The"nolitigation"goaldoesnotmeancontroversieswillalwaysbeavoided.Itmeansthatemphasiswillbeplacedonresolvingconflictbytheteaminwaysthatwillavoidcostlythird-partydecision-making.

Thislistofcommongoalsdoesnotexhaustthepotentialtopicsapartneringteammightwishtoincludeintheircharter.Itdoesgiveanideaofthewaysateammayapproachissueswithmutualinterestsinmind.Thebenefitofclarifyingandexpressingcommongoalscomesintherealizationbyparticipantsthattheywillbeindividuallysuccessfulwhentheteamissuccessfulinachievingthepartneringgoals.

Itmustbeemphasizedthatgoalsbemutualorcommontoallparticipants.Considerableeffortmaybeexpendedtoensurethateverygoalbeimportanttoeveryparticipant.Discussthemuntilthemutualinterestisdiscovered.

106ImplementationPlanfortheCharter

Aseparateimplementationplanmaybepreparedinworkshopswheretheparticipantsexpresshowthepartneringrelationshipwillfunction.Figure104providesanexampleofanimplementationplan.Thisplansupplementsthecharterwithmilestones,

ThecharterfortheOliverLock&DamReplacementProjectatNorthport,Alabama,includedgeneraltermsofteamwork:providingasafe,qualityprojectcompletedontimeandwithinbudget;promptequitableproblem-solving;andopencommunication.Theparticipantsthendevelopedaone-pageimplementationplanforreachingmajorgoalsinthecharter:Safety,whichincludedgoalsofnofatalitiesandafrequencyrateof1.25;Quality,whichincludednorework;Schedule,whichincludedspecificmilestonesofthecompletiondate,anda21-dayshutdownwindowfortheexistinglocktotransitiontothenew

lock;andBudget,whichspecifiedacostgrowthoflessthan$2million.

Figure104ExampleofanImplementationPlan

objectives,processes,roles,andresponsibilities.Iftimepermits,teamsmayworkonspecificimplementationplansduringtheworkshop.Thefacilitatorcanassistteamsindefiningstrategicdirectionsandmakingassignmentsofrolesandresponsibilities.Ataminimum,teamscancommittobuildinganimplementationplanatlatermeetingswithinaspecifiedtimefollowingthepartneringworkshop.

Animplementationplanisalivingdocumentthatcouldchangeduringthelifeoftheproject.Theimplementationplanprovidesaclearunderstandingofhowthecharter'sgoalswillbereached.

107TheImportanceoftheCharter

Whenconsensusisreached,thechartershouldbepreparedforimmediatesignatureofallparticipantstoreflecttheirnewrelationshipasteammembers.Thesigningofthechartershouldbeasymboliceventduringtheworkshop.Theparticipantshaveinvestedagreatdealoftimeandefforttoreachthisstageofthepartneringworkshop.Theteam'ssuccessinworkingtogethertoproduceasignificantproductshouldnotbetakenlightly.Signingthechartersignifiestheircommitmenttothemutualvisionandthecommongoalsthattheywishtoattain.Itisthefirstactiontobetakenbythenewlyformedteam.Thesigningshouldgiveeachworkshopparticipantasenseofbelongingtoanewcollaborativeteam,andshouldcementeachteammember'scommitmenttotheothers.

Sometimes,themostseniorexecutivesofthepartneringorganizationshavenotbeenabletoparticipateintheworkshop.Whenthisoccurs,theyshouldconsiderattendingthesigningceremonyandwitnessingthecommitmentofthenewteamtopartneringprinciples.Althoughonlythosewhoattendtheworkshopshouldsignthecharter,the

presenceofseniorexecutives(andanywordsofencouragementorsupporttheymayoffer)isanimportantsignofsupportandcanleadtothesuccessoftheearlypartneringefforts.

Inadditiontothecharterasaconcretesymbolofthepartneringrelationship,anotherformofsymbolismissometimes

usedtoremindtheteammembersoftheirmutualvisionandcommongoals.Logosprovideaneverydayawarenessofthepartneringrelationshipanddevelopasenseofownershipatthejobsite.Someconstructionprojectsprovideready-madelogoexamplesthatcanbedevelopedintoapartnering-specificlogo.

Itisrecommendedthatthecharterbefinalizedpriortoattemptingtocreatealogo.Duringthecharterdevelopmentphase,theparticipantsmaybetemptedtospendtoomuchtimecomingupwithanacceptable,inspirationallogo.Ifthishappens,itcanshortchangecriticaltimeneededforcharterrefinement.

Thewrittenchartermemorializesthecommitment,vision,andgoalsofthepartneringteam.Itisthemostimportantproductoftheinitialpartneringworkshop.Thecharterestablishestheprinciplesthatwillguidetheactionsoftheteamandsetsastandardofexcellenceforthenewworkingrelationship.

108SampleCharters

ThechartersinFigures105through107werewrittenbypartneringteamsforactualprojectsandmaybehelpfulindraftingaconstructionprojectpartneringcharter.

FORTHELARGEROCKETTESTFACILITYTHEPARTNERINGAGREEMENTOFTHEJ6TEAM

ARNOLDAFB,TNI.We,theJ6Team,arecommittedtoapositiveutilizationofPARTNERINGintheconstructionandcontractadministrationofthisproject.WebelievethatthroughPARTNERINGwewillbeabletoprovideasafe,quality,functionalprojectcompletedontimeandwithinbudget.Wearecommittedtoopencommunications,jointproblemsolving,andteamworktoaccomplishthefollowinggoals:·Asatisfiedcustomerwithaqualityfacilitywhichworks.·Asafeprojectwithzerolost-timeaccidents.·Successfulprojectcompletionwhichincludes:

·Contractcostgrowthlimitedto2percent·Award100percentoftheawardfee·Completionwithinrespectivebudgets·Maximizingvalueengineering·Completiononoraheadofschedule

·TotalteamapproachresultinginOutstandingProjectTeamPerformance.

II.Ourgoalswillbeachievedthroughacommitmenttoteamworkandpartneringcharacterizedbymutualtrust,responsiveness,flexibility,andopencommunication.Toaccomplishthesegoals,we,theJ6Team,committoprojectdecision-makingatthelowestpossiblelevelwithintheteamattheprojectsite.

Figure105SampleCharterI

SPARKMANCENTERADDITION

REDSTONEARSENAL,ALABAMA

PARTNERINGAGREEMENTforthe

JOHNJ.SPARKMANCENTERADDITIONWe,thepartnersofTheSparkmanCenterAddition,pledgetouseatotalteamapproach,whichresultsinmutualrespectandpositiverelationshipsamongourmembers.Wewillsuccessfullycompletetheprojectwithinrespectivebudgetsby:

OntimecompletionTimelyandequitableresolutionsofissuesMaintaininganaccident-freeworkplaceIncorporatinglessonslearned

Wewillcelebrateoursuccessesandtakeprideinanon-time,qualityprojectthatmeetstheneedsofourcustomer.

Huntsville,AlabamaMay31,1996

Figure106SampleCharterII

PartneringAgreementAmongEPA,USACE,Mass.DEP.Baird&McGuireTaskForce,OHM

We,thepartnersoftheBaird&McGuireSuperfundSite,agreetoworktogetherasacohesiveteamtoproduceaqualityprojectthatprotectsandinformsthesurroundingcommunityinaccordancewiththecontract,ontime,withinbudget,andsafely,whileenablingthecontractortoearnafairprofit.Membersofthepartneringteamwilldealwitheachotherinafair,open,trusting,andprofessionalmanner.Inthatspirit,wearecommittedtothefollowingconcepts:Communication1.Communicateproblemsopenlyandasearlyaspossible.2.Establishandmaintaincommunityrelationsthroughopenlinesofcommunicationbykeepingthepublicinformedandanintegralpartofthecleanupprocess.3.Resolveproblemsandmakedecisionsatthelowestpossiblelevelinatimelymanner.4.Maintainaprofessionalatmosphereofmutualrespectandresolvepersonalconflictsimmediately.5.Communicateproblemsopenlybeforeresortingtowrittencorrespondence.6.Developaperiodicevaluationprogramonthepartnership'seffectiveness.Performance1.Produceaqualityproductthefirsttime,throughaneffectiveandcommittedqualitymanagementprogram.(QA&QC)2.Completeprojectaheadof,oron,schedule.(Avoiddelays.)3.Performworkinasafemanner,minimizingrecordablelost-timeinjuriesandmaintainingtheutmostconcernforpublicsafetyinthesurroundingcommunity.4.Promoteprideinworkmanshipbyallmembersofthepartneringteam.5.Minimizeformaldisputes.(Nolitigation.)6.Ensuresuccessfulprojectcompletion.

Figure107SampleCharterIII

Chapter11SustainingtheRelationship111TheNeedtoSustainthePartneringRelationship112DesigningthePlan113TheChampion'sRoleDuringtheRelationship114RelationshipEvaluation115Follow-UpSessions116BetweentheMeetings

111TheNeedtoSustainthePartneringRelationship

Whenthepartneringworkshopends,therelationshipamongtheteammembersmustcontinue.Likeanyothernewrelationship,partneringstartswithhighhopesforasuccessfulandharmoniousrelationship.However,justlikeamarriage,oncethehoneymoonisover,thedailyroutineandthechanceofunexpectedproblemscanchallengethepartneringrelationship.Somerelationshipswillflourish,manywillflounder,andotherswillfail.Thereasonforthedifferentresultsisnotthesincerityoftheteam'sinitialcommitment.Thedifferenceoftenliesintheefforttheteammembersputintosustainingtherelationship.

Aftertheworkshop,theteammembersneedtofocustheirenergyonwaystosustaintheirnewrelationshipandkeepitmov-

inginapositivedirection.Eachteammemberneedstonurturetherelationshiptokeepitgrowing.Sustainingthepartneringrelationshipisthemostdifficulttaskthattheteammemberswillencounter;itisalsothemostcrucial.Thefoundationforpartneringcanbeestablishedwithinthefirstfewmonthsoftheproject,butthefullsuccessofpartneringrequirescontinualdedicationandeffortoverthelonghaultokeeptherelationshiphealthy.

Intheearlydaysorweeksofapartneringrelationship,therelationshipwillprobablybetested.Often,oneteammemberwillwaitsuspiciouslytoseeiftheothersupholdthegoalsoftherelationship.Sometimesateammemberwilltestanother'scommitmentbyraisinganissuejusttoseehowthatteammemberdealswithit.Thistestingreflectstheapprehensionfoundintheculturalchangebroughtaboutbypartnering.Itisnormalandnatural.Apprehensionwillhangovertherelationshipuntiltheteammembersprove,throughpositiveaction,thattheyaretrustworthyandcommittedtothecommongoalsinthecharter.Thesustainabilityoftherelationship,ofcourse,dependsuponmaintainingopencommunication,trust,andcommitment.Italsodependsonhavinganactionplanforsustainingtherelationship,includingtoolsandtechniquesdesignedtokeepcommitmentsinthefaceoftheinevitablechallengesencountered.

112DesigningthePlan

Thebesttimetoplantosustaintherelationshipisneartheendoftheinitialpartneringworkshop.Alltheteammembersarestilltogetherandtheirinterestinhavingasuccessfulrelationshipshouldbeatitshighest.Theplanningnormallyoccurswhiletheparticipantsdraftthepartneringcharterorjustaftertheysignit.Atthistime,theteammembers'effortsarewellspentindevisingaplantocontinuethemomentumoftheworkshop.

Thefacilitatorcanstarttheplanningbyleadingtheteammembersinadiscussionofwhattodonext.Itisimportantfortheteamtoputpartneringtoworkrightawaytosustainthepartneringspirit.Oncetheteammembersrecognizetheneedtobuildaplantosustaintherelationship,anactionplancanbedeveloped.Theplanshouldcontaindetailssuchaseventsandmilestones.

Oftenthisplanwillestablishthedateforthenextfollow-upsession,thelocationwhereitwillbeheld,whichteammember(s)areresponsibleforsettingitup,andunderwhatconditionsorcircumstancesitshouldtakeplace.Sometimestheplanwillstatethatthefollow-upsessionwilltakeplaceautomaticallyinsixmonthsoratspecifiedperiodicintervals.Otherplanswillnothaveascheduledtime;theylettheteammembersdecidelaterwhenitisneeded.Duringplanningtheteamshouldselectachampionandsetupcriteriafordeterminingtheteam'seffectiveness.Thedetailsoftheplantosustaintherelationshipshouldbeestablishedattheendoftheworkshop,duringafacilitator-leddiscussion.

113TheChampion'sRoleDuringtheRelationship

Nomatterhowcommittedtheteammembersareastheydeparttheinitialworkshop,therelationshipwillnotrunbyitself.Tofulfilltheintentofthepartneringrelationship,achampionmustassumeresponsibilityfortheinitiation,development,andmaintenanceofthefollow-upprocess.Thischampionneedstoprovidethemoral,administrative,andlogisticalsupportthatwillberequiredtomakethefollow-upplanwork.Thechampionshouldbeanactivememberintherelationshipandhaveafingeronthepulseoftheteaminordertotaketheappropriatestepsnecessarytokeepthepartneringeffortandtheprojectontrack.

Anyoneoftheteammemberscanbethechampion.Thefacilitatornormallystartstheselectionprocessbydiscussingtheneedforachampionandtherolesandresponsibilityofthechampion.Theteammaydecidetohaveonechampionormultiplechampionsfromeachorganization.Theteamcanbeginselectingachampionorchampionsbyaskingfornomineesandvolunteersfromamongtheteammembers.Thentheteamcanelectachampionortheycanpickone

groupbyconsensus.Themainfactorintheselectionprocessisthatthechampionhasthebackingoftheteamtokeepthepartneringprocessaliveandhealthy.

Thechampion'sroleistosupporttheactivitiesoftheteamandtodetermineifallteammembersarekeepingtheircommitmentstothevisionandgoalsthatwereestablishedinthecharter.Thechampioncanuseafollow-upactionplantoensurethat

everyoneisperforminginaccordancewiththosecommitments.Thechampionprovidessupportbykeepingteammembersfocusedonthecommonobjectivesandbyremindingmembersoftheirroles.Todeterminewhetherteammembersarekeepingtheircommitments,thechampioncansimplystayalertandtalktomembersabouttherelationship,oruseevaluationformstoreviewtherelationship.Whenafollow-upsessionisscheduled,thechampionwillarrangeforthelogisticalsupport,findalocation,arrangeformeetingrooms,notifyteammembers,andworkwithafacilitatortodetermineaproductiveagendaforthissession.Iftherelationshipappearstohaverealproblems,thechampioncanconveneaspecialmeetingpriortoanyscheduledsession.

114RelationshipEvaluation

Aneffectivemethodforevaluatingthepartneringrelationshipistoconductperiodicsurveysoftheteammembersthroughwrittenevaluationforms.AsampleevaluationformisshowninFigure111.Thisprocessallowsallteammemberstoinformthechampionandothermembersonhowwelltheyfindthepartneringrelationshiptobeworking.Theseresponsesareveryhelpfulinuncoveringpotentialproblems.Itshouldbenoted,however,thatoccasionallythesurveyresponsesmaynotreflecttheactualsuccessofpartnering.Sometimesissuesunrelatedtotheprojectorpartneringsurfaceinthesurveyresponsesofteammembers.Inotherwords,ifaparticipantjusthadaflattireonthewaytoworkandruinedhisbestsuit,thatpersonmaybereactingtothisincidentratherthanevaluatingthepsychologicalaspectsofthepartneringrelationship.Whilesurveysarehighlysubjective,theyprovideabeginningpointfortopicsthatrequirefurtherattentionanddiscussion.Thecriteriafortheevaluationformsshouldbedeterminedduringthepartneringworkshoporbyanaction-

planteamiftimeislimitedattheinitialworkshop.Likewise,ascoringsystemcanbedevisedtoreflectparticipants'subjectiveperceptionsofprojectperformance.Ataspecifictimeduringtheproject,eitherthechampionorthefacilitatorshouldsendouttheevaluationformstoeachteammember.Eachteammembershouldpromptlycompletetheformandreturnit.Oftentheteam

Wheredoyouseetheteamrightnow?(circlerating)1.Team'spurpose:Istheteam'spurposecleartoyou?I'muncertain 12345 I'mclear

2.Membership:Doyoufeellikeyouareapartofthegroup?I'mout 12345 I'min

3.Elbowroom:Doyoufeelconstrictedbythegroup?I'mcrowded 12345 I'mcomfortable

4.Discussion:Isthereopenandhonestcommunicationamonggroupmembers?Cautious/guarded 12345 Open/free

5.Useofskills:Isthegroupmakinggooduseofyourskills?Poor 12345 Full

6.Support:Doesthegroupencourageallofitsmemberstocontribute?Forselfonly 12345 Forallmembers

7.Conflict:Isconflictidentifiedandworkedthroughorisitignored/avoided?Ignored/avoided 12345 Workedthrough

8.Influenceonmembers:Doafewofthemembersruntheshow?Afewmembers 12345 Allmembers

9.Problemresolution:Areproblems/issuessolvedorelevatedquickly?Never 12345 Always

Figure111PartneringTeamDevelopmentRating

utilizesthefacilitatortocollecttheformsandcompilethisdatasincethefacilitatorisaneutralpartyandisfocusedonhelpingthegroupremainimpartialandobjective.Afterthefacilitatorscoreseachelementandinformstheteamoftheresults,theycandecidewhichareasneedimprovementorhavepotentialproblems.Thentheteamcandevelopanagendaforthefollow-upsession.Byidentifyingandpromptlyaddressingtheseareas,thefollow-upsessionscanenhancethegroup'sproductivityandreinforcepositiveteamrelationships.

Afterareasonableamountoftime,thechampionmaywanttomonitortheteam'simprovementbyconductinganothersurveyandcomparingtheresultstothepreviousresponses.Ifsignificantimprovementisreflected,theteamshouldcelebrateandrecognizethesuccessfulimprovementsinthenextfollow-upsession.Also,thechampionmaydecidetorecommendotherareasfortheagendaatthenextfollow-upsession.

Dependingontheresultsofthesurvey,thechampionmaywanttoadjusttheperiodbetweenfollow-upsessions.Iftheresultsshownoproblems,theperiodcouldbeextended.Ifthereareproblems,however,theperiodmaybeshortened.

Inevaluatingsurveyresults,theteamshouldfocusontheitemswiththelowestscores.Extremelylowscores(lessthan2)mayrequireimmediatedevelopmentofaspecificplanforimprovementwithoutwaitingforafollow-upworkshop.Forexample,Item4(Discussion)inFigure111evaluatestheopen,honestcommunicationbetweenthegroupmembers.Ifthetabulatedaverageofthegroup'sresponsesisgreaterthan3.5,theteammayfeelsatisfiedandmoveontootheritems.Iftheresponseaverageisbetween1and2,however,thentheteammaywanttouseproblem-solvingtechniquestodeterminewhytheteammembersfeelthatcommunicationsarecautiousandguardedandwhatmightbethebestcourseofaction.Asageneralrule,the

teamshouldfocusontheitemswiththelowestscore.

Figures112and113areadditionalsamplesofevaluationformsusedtorateperformanceandrelationships.Theseformsaremoredetailedandshouldbeusedlaterduringtheprojecttokeeptheteammembersawareoftheirprogress.Figure112usuallycontainsthegoalstakendirectlyfromthecharter,whileFigure113maycontaintheguidingprinciplesandpossiblysomeelementsofFigure111.

PARTNERINGPERFORMANCEEVALUATIONIndicators 1 2 3 4 5 PointsCommunicationsIssueResolutionProblemNoticeResponsivenessScheduleCustomerSatisfactionActionPlan#ActionPlan#ActionPlan#ResourcesTOTAL1=Poor;2=Marginal;3=Satisfactory;4=Good;5=Excellent

Comments:(Addacommentforanyscoresthatare2orbelow.)____________________________________________________________________________________________________________________________________________________________________________________________________________ChooseOne:Owner______________Contractor______________Architect/Engineer______________Other(specify)______________PositiveComments(optional):____________________________________________________________________________________________________________________________________________________________________________________________________________Date:__________

Figure112PerformanceEvaluation

PARTNERINGPERFORMANCEEVALUATIONIndicators 1 2 3 4 5 PointsCommitment/IndividualsCommitment/LeadershipRespectAttitudeTrustTeamworkBarriersOpennessSynergyExpectationTOTAL1=Poor;2=Marginal;3=Satisfactory;4=Good;5=Excellent

Comments:(Addacommentforanyscoresthatare2orbelow.)___________________________________________________________________________________________________________________________________________________________________________ChooseOne:OwnerContractorArchitect/EngineerOther(specify)

____________________________________________________

PositiveComments(optional):___________________________________________________________________________________________________________________________________________________________________________Date:_____________

Figure11-3RelationshipEvaluation

115Follow-UpSessions

Themostvitaltooltosustainahealthypartneringrelationshipisthefollow-upsessions.Theactionplanforsustainingpartneringshouldincludeplanningforfollow-upsessions.Thesesessionsshouldbedesignedtoreinforceteam-buildingskills,assesstheprogressofthepartneringteam,andtocelebratesuccess.Theinitialpartneringworkshopfocusesonchangingtheattitudesoftheteammembersfromthetraditional''us"and"them"totheteam-spirited"we."However,thischangecanbefragileandneedsperiodicreinforcement.Themoretimethatpasses,themorelikelyoldhabitsandattitudescanre-emerge.Anoccasionalone-ortwo-dayfollow-upsessioneveryfourtosixmonthswillsignificantlyimprovethespiritofthepartneringteam.Thefrequencyoffollow-upsessionsdependsupontheturnoverofteammembers,projectprogressevaluations,orchangedcircumstances.Thefollow-upsessioncanbeusedtofurtherdefinetheactionplansforaddressingongoingissuesortorekindlethepartneringspirit.

Thefollow-upsessioncanbeledbytheworkshopfacilitatorortheteammembersmaychooseafacilitatorfromwithinthepartneringteam;commonlythechampionischosen.Theadvantageofusingtheoriginalfacilitatorisobviousneutralpartystatus,independentviewpoint,andprojectfamiliarity.

Thelocationofthefollow-upsession,liketheinitialworkshop,shouldbeataneutralsite,andconducivetorelaxationandopencommunications.Allteammembersshouldattend.Thisprovidesthemanoccasiontomeetinarelaxedatmosphereawayfromthestressanddistractionsfoundattheirdailyworksite.Thisgivestheteammemberstheopportunitytoconcentrateonprojectissuesandprocessrefinementwithouthavingtosimultaneouslyjuggleworkshop

attendanceandday-to-dayprojectissues.

Thepartneringevaluationformsdevelopedduringtheinitialsessionshouldbesenttoteammembersshortlybeforeafollow-upsession.Theresultsoftheevaluationcanthenbeusedtobuildonteamstrengthsandtodevelopactionplanstoimproveweakareas.Intheeventthatitisnecessarytobringnewmembersintotheteam,afollow-upsessionisthebesttimetointroducethemtopartnering.Additionalteam-buildingmayberequiredduringthefollow-upsessionsothatthenewmemberscanbecomefamiliar

withtheteam'svisionsandgoals,andagreetothem.Asampleagendaforafollow-upsessionisprovidedinFigure114.

116BetweentheMeetings

Sustainingthepartneringrelationshipshouldnotbelefttojusttheworkshopandfollow-upsessions.Everydayonthejob,theteammembersshouldbecommittedtopracticingthevaluesofpartnering.Also,individualswhowerenotpresentattheworkshopneedtounderstandhowpartneringwillaffectthem.

Thereareparticularactionsthathavebeenusedonprojectstosustainthepartneringrelationshipbetweenthemeetings.Theteammemberscantakethistimetoeducateeveryoneinvolvedintheprojectontheadvantagesofpartneringanditsmeaningtotheirspecificproject.Asafirststep,organizationsshouldpostthepartneringcharterinthemostvisiblelocationofeachofficetofamiliarizeeveryonewiththecommitmentsoftheentireprojectteam.Everyformalmeetingshouldhavepartneringasanagenda

A.IntroductionofNewMembersB.ReaffirmCharterObjectivesandCommitmentsC.ReviewEvaluationData

StrongAreasWeakAreas

D.DiscussionofStrongAreasE.DevelopActionPlansforWeakAreasF.NewIssuesandConcernsG.Celebration/Social

Figure114AgendaforFollow-UpSession

item.Manypartneringteamsactuallydevelopandcirculateanewsletterpublicizingupcomingevents,newteammembers,andprojectprogress.Thisnewslettercouldalsobeusedtoupdatepersonalissues,suchasbirths,promotions,reassignments,andsocialactivities.Somethingassimpleasa"Fridayafternoonattitudeadjustment"get-togethercanrefreshthepartneringspirit.Alloftheseactivitieshopefullycauseindividualsonthejobsitewhowerenotpresentattheworkshoptodevelopasenseofbelongingtotheteam,bringownershiptothecommitments,andacceptanceofthepartneringgoals.

Othercreativemethodsusedbythepartneringteamtosustaintherelationshipcanbeasvariedasthebackgroundoftheteammembers.Manynontraditionalfollow-upactivities,suchascookouts,sportsteams,rivercruises,whitewaterraftingtrips,challengecourses,andcharityfund-raiserscouldbeselectedbytheteammemberstorenewthespiritandkeepcreative,inspirational,andinnovativeideasflowing.Someteamsemploytheuseofhats,t-shirts,andcoffeemugswiththepartneringteamnameandlogotoinstillprideandcamaraderie.AtSotoCanoAirbaseinHonduras,thepartneringteamforamedicalfacilityrenovationprojectprovidedt-shirtswiththeprojectnametoalltheteammembers.Thiswasextendedtothejob-siteworkforce.Productivityandworkmanshipincreased,absenteeismdecreasedand,asaresult,thetimetocompletionimproved.Sometimessomethingasseeminglyinsignificantasat-shirtcanhaveaprofoundimpactonbuildingthegoalsespousedinthepartneringprocess.Theteamshouldbeencouragedtodevelopeffectivewaystokeepthepartneringspiritvibrant.Theprimaryobjectivesofpartneringarebreakingdownbarriers,openingcommunications,andworkingtowardcommongoals.Anyactivitythatfosterstheseobjectiveswillenhancethepartneringrelationship.

Chapter12ImplementingPartneringinConjunctionwithValueEngineeringandTotalQualityManagementMethodologies121ValueEngineeringChangeProposals(VECPs)122TotalQualityManagement(TQM)

Partneringisinfusedwith"valueengineeringchangeproposal"("VECP")and''totalqualitymanagement"("TQM")concepts.Thiscanbeconfusing.ThischapterexplainsthedistinctionsbetweenthethreeconceptsandexplorestheinteractionofVECPandTQMwiththepartneringprocess.

121ValueEngineeringChangeProposals(VECPs)

AWhatIsaValueEngineeringChangeProposal?

Avalueengineeringchangeproposalallowsthecontractortoidentifywaystoconstructaprojectwithcomparableorbetterqualitythantheoriginalprojectspecifications,withinashortertimeframe,orinamorecost-efficientmanner.Basedonthecontractor'spracticalexperiencewithsimilartypesofconstruction,theremaybebetterandlesscostlywaystogetthesamefinalproduct.Forexample,whenacertainmethodormaterialworkedwellononeprojectandisspecificallyexcludedbythespecificationsonasimilarproject,themethodcouldberaisedasaVECP.Such

proposalsmayincludeutilizingnewproducts,substitutingmorereadilyavailableproducts,employinglesscostlydesignorinstallationtechniques,makingscheduleadjustments,andfindingotherdeliverymechanismsthatthecontractorcanidentifytosavemoneyandprovideaqualitysolution,butwhichwerenotcontemplatedundertheoriginalprojectdesigns.

OwnerswillinsertaVECPclauseintheircontractiftheyrecognizethewisdomandbenefitofencouragingcontractorstoproposecost-reducingideasduringconstructionandtheyarewillingtosharethesavingswithcontractors.Typically,suchaprovisionprovidesforasplitorproportionalsharingofthesavingsbetweentheownerandcontractorresultingfromthechange.ThecontractorisnotrequiredtosubmitanyVECPsand,ifsubmitted,theownerisnotrequiredtoacceptthem.Anyproposalsubmittedbythecontractormustbeinwritingand,onceacceptedbytheownerandthecost/savingsareagreedupon,achangetothecontractismade.

BTheBenefitstoPartneringfromValueEngineeringChangeProposals

Partneringandvalueengineeringaremutuallybeneficialmethodologies.Valueengineeringhelpsimplementpartneringgoalsinsuchareasascostcontrolandcompletiontime.Indeed,meaningfulvalueengineeringmaybeoneofthegoalscommonlyidentifiedduringapartneringworkshop.Thevalueengineeringprocesscanbethefirsttangibleworkactivitywherepartneringprinciplesareimplementedandthepartiesarerewardedwithclearandtangiblemonetaryresults.

ManyconstructioncontractorsrecognizethatVECPisanexcellentwaytoimproveprojectqualityandgenerateadditionalprofits,providedthataquickandreasonabledecisionisobtainedfromtheowner.Bettercommunications,whichresultfrompartnering,infact,

helpspeedtheVECPdecision-makingprocess.

Atthestartoftheproject(thetimeaVECPismostcost-effectivelysubmitted),otherdecisionsneedtobemadequickly.Thesedecisionsaffectallfacetsofthejob:selectionofsubcontractors,orderingmaterials,negotiatingandsigninglaboragreements,andhiringsupervisorystaffandworkers.Thisisalsothetimemanykey

submittalsneedtobepreparedandpresentedtotheownerforapproval.Delayinanyareacanbecostly.Forthecontractor,shrinkingmarginsandacompetitivemarketlimitthetimethatcanbedevotedtoeffortsthatmayfailorthatareslowtoyieldpositiveresults.Ifcommitmentsaremadeduringtheinitialpartneringworkshoptosupportthevalueengineeringprocess,thecontractormaybemorewillingtoinvestthetimeandenergyrequiredindevelopingVECPproposalsearlyintheproject.

AbigreasonthattheVECPsavingsamountsarenothigheronconstructionprojectsisthattheprocesstodevelopandapprovethemisnotworkingwell.Contractorsarefrustratedbyownerstakingtoolongorrefusingtoacceptproposalsthatcontractorsstronglyfeelwouldbenefittheproject.Designersmayviewdesignalternativesasathreattotheiraestheticcontributionstotheprojectorascreatingstructuralorotherconstructabilityconcerns.Ownersmayhaveother,morepressingpriorities.Contractorshavealargeup-frontinvestmentinpreparingVECPsbutmayhaveaverylowreturnontheseefforts.ThiscanresultinarelativelysmallnumberofVECPsbeingsubmittedaswellasthelowaveragedollarsizeofchange.WhatappearstobeneededmosttoencouragecontractorstosubmitmoreVECPsistrust.Thiscanbedoneaspartofpartneringifthereis"buy-in"andaproceduralframeworkisestablishedtomorepromptlyconsiderVECPs.

FederalagencieshaveexperiencedsomepositiveresultswithVECP,eventhoughmanydonotaggressivelypursuethem.SeveraloftheseagencieshaveVECPsavingsratesthatdemonstrateencouragingresults.

TheArmyCorpsofEngineershashadgreaterreturnswhenitusesvalueengineeringincombinationwithpartnering.TheCorpsofEngineersLosAngelesDistrict,forexample,constructedtheArizona

CanalDiversionChannel(ACDC)projectinPhoenix.Theprojectconsistedofalarge,open-topboxsewerrunningparalleltotheexistingArizonaCanalandthroughanaffluentneighborhoodinPhoenix.Thepurposeoftheprojectwastocatchanddivertrunoffinheavyrainstoprotectthecanalfromdamage.

Aspartoftheprocessofgettingapprovalfromnearbypropertyownersfortheproject,theCorpsagreedtoverystringentdesignandschedulingconstraints.Thedesignincludedcastinga

roofsectionoverpartoftheboxsewertohideitfromview.Thecontractalsohadfixeddatesforstartingandcompletingeachportionoftheproject,withlittlefloatbuiltintotheschedule.

Uponstartingtheproject,theCorpsdecidedtotrypartneringandconvincedthecontractortoparticipate.Attheinitialpartneringworkshop,atthepointwhereeachsidedecidedthattheothersidewashuman,thecontractorexplaineda$2millionVECPproposaltouseprecastconcretefortheroofsection.Thisproposalgavethesamedesiredendproduct,cuttheconstructiontime,andhadthepotentialtolimitdisruptiontotheadjacentpropertyowners.

TheCorps,asitturnedout,haddesiredtohaveaprecastroofonthesewer,butdesigncompletiontargetsandcalculationcomplexitymadeitimpossiblefortheirstafftodesigntheprecastroofandstillawardtheprojectonschedule.Thus,theywerethrilledtobeabletoaccomplishwhattheywantedandsavemoneyinaddition.Laterintheproject,thecontractorcameupwithanadditional$2millionofVECPproposals.

WhywastheCorpsabletoachievetheseVECPbenefitsonthisproject?Theanswerissimple:partnering!Theassociatedcommunication,trust,andteamworkthatwerethedirectoutgrowthsofthepartneringprocessmadetheVECPprocessmoresuccessful.

CHowtoIncludeVECPinthePartneringProcess

Thereareseveralthingsthatownersshoulddoiftheyarereallyseriousaboutimprovingtheircost-savingsthroughaVECPprogram.First,theyneedtovisiblysupporttheVECPprogram.Second,theirVECPeffortsshouldbelaunchedintheinitialpartneringworkshop.Third,VECPsshouldbeincorporatedasearlyaspossibleintotheproject.

Attheworkshop,valueengineeringshouldberaisedasadiscussiontopic.Itcanbepresentedbytheownerasatooltohelpthepartneringteamreachtheircommongoals.ThediscussionmayincludepastVECPexperiencesand,ifunsuccessful,whywith

partneringtheeffortwillbedifferent.Thereshouldthenbeanopenandfrankdiscussionamongthepartiesstatingtheirconcerns,desires,andexpectationsaboutVECPs.Duringtheworkshop,thecontractorcanassessthecommitmentoftheowner,whatstepsareneededforVECPapproval,theinformationneededforevaluation,andthetimeframesinvolved.ItisparticularlyhelpfulforthepartneringteamtoadoptastrategyandatleastoutlinetheproceduresforVECPsduringtheirinitialworkshopsession.Thestrategymaysimplyincludeabrainstormingsessiontoidentifypotentialproposalsandalistofguidingprinciplesforsubmittals.TheproceduresmayincludeidentifyingspecificteammemberskeytoprocessingVECPsubmittalsandtargettimeframes.(SeeFigure121foranexampleofvalueengineeringdocumentation,whichmightbegeneratedinapartneringsession.)

ToimplementaVECPprogram,getastrongcommitmentfromtheseniormanagement,makeitcleartothecontractorthattheownerwantsVECPs,andenlistthesupportoftheprojectdesigner.AnexpressVECPclauseshouldbeincludedintheprojectcontract,notjustbeambiguouslyreferenced.Theownershouldconsidersendingalettertothecontractorstatingtheowner'spositivepolicyforVECP.

OncethecontractorcommitstotheVECPprogram,theprojectdesignershouldmakeasimilarcommitment.ItshouldbemadecleartothedesignerthattheownerwantstosavemoneythroughtheuseofVECPs,andthatdesignerswillberewardedforparticipatingintheVECPprocessratherthandefendingtheirdesignordelayingtheevaluativeprocess.Emphasizethattheirparticipationinthisareawillaffecttheirratingorownerapprovaloftheiroverallworkproduct,andthatthedesignerwillbeacriticalplayerinVECPdecisions,alongwiththeownerandthecontractor.

Finally,theownerneedstopublicizeeachVECPsuccessthroughout

theteamandtoanyotherprimecontractorsworkingontheproject.Forthosehavingastrategicpartneringrelationship,thesesuccesseswillformthebasisforrefiningtheprocesssoitcanbeimprovedforthenextsharedproject.

TheVECPprocesshasapotentialtogenerateattractivesavingsatatimewhensuchsavingsaregreatlyneeded.AnimportantpartofeveryinitialpartneringworkshopshouldbeadiscussionoftheVECPprogramandateamcommitmenttoit.

VALUEENGINEERINGCHANGEPROPOSAL(VECP)

Company:____________________ProposalNumber:______________________Project:____________________________________________________________ShortTitle:___________________________________________________________________BriefDescription:

ReasonfortheChange:

PotentialCostSavings:

TimeConstraints:

SubmittedBy:________________________________________Date:____________________ApprovedBy:________________________________________Date:____________________

Figure121ValueEngineeringChangeProposalSubmittalFormat

122TotalQualityManagement(TQM)

AWhatIsTotalQualityManagement(TQM)?

TQMisafundamentalpreceptofanybusinesseffortwhereorganizationsandpeoplecometogetherwiththeobjectivetoachievesomethingofvalueforthosewhoparticipate.Totalqualitymanagementisaprocessthathasnosingledefinition.Manyorganizationsandindividualshavetriedtodefineitbyitseffects.Hereareseveralofthosecommondefinitions:

·TQMiscontinuousprocessimprovement.

·TQMistheapplicationofqualityimprovementtoolsandtechniquestoanorganizationanditsaim.

·TQMisbuildingaqualityrelationshipwithsuppliersandcustomers.

·TQMisusingthebrainpoweroftheworkforcetoaffectimprovementstotheprocessanddecisionmaking.

·TQMisimprovingleadershipandmanagement.

·TQMisahabit,notanact(withapologiestoAristotle,whosaid,"Qualityisahabit,notanact.").

AmorestructureddefinitionofTQMisprovidedbytheFederalQualityInstitute(FQI),anorganizationintheexecutivebranchoftheU.S.governmentthatwasestablishedtohelpfederalagenciesadoptTQM.

TQMisastrategic,integratedmanagementsystemforachievingcustomersatisfaction.[It]isacomprehensive,customerfocusedsystemthatmanyorganizationsareadoptingtoimprovethequalityoftheirproductsandservices.

FQIdescribesTQMasincorporatingthreeprinciples:

"focusingonachievingcustomersatisfaction;seekingcontinuousimprovement;andfullyinvolvingtheentireworkforce.Achievingtheseprinciplesrequirestheestablishmentofaculturalshiftwithinanorganizationaimedatmakingthenewculturemoreparticipative."

TherearesevenoperatingpracticesidentifiedbytheFQIthatareusedtomeettheseprinciples.Theyare:

·DemonstratingpersonalleadershipofTQMbytopmanagement.

·Strategicallyplanningtheshort-andlong-termimplementationofTQMthroughouttheorganization.

·Assuringthateveryonefocusesoncustomerneedsandexpectations.

·Developingclearlydefinedmeasuresfortrackingprogressandidentifyingimprovementopportunities.

·Providingadequateresourcesfortrainingandrecognitiontoenableworkerstocarrythemissionforwardandreinforcepositivebehavior.

·Empoweringworkerstomakedecisionsandfosterteamwork.

·Developingsystemstoassurethatqualityisbuiltinatthebeginningandthroughouttheprocess.

BThePrecursorofTQM:TheDemingSystemofProfoundKnowledgeTM

ThedevelopmentofTQMwasstronglyinfluencedbyconceptscreatedbyDr.W.EdwardsDeming,shortlyafterWorldWarII.Overtheyears,Demingdevelopedasetof14pointstohelpexplainhisqualityphilosophy.HealsotaughtthathisentirephilosophywasembodiedinwhathecalledhisSystemofProfoundKnowledgeTM.TheW.EdwardsDemingInstitutenowcarriesontheefforttopreserve,further,andencouragethetransformationthatDemingdescribedinhisphilosophy.

TheDemingSystemofProfoundKnowledgeTMismostfullyarticulatedinDeming'slastbook,TheNewEconomics,inwhichhesays:

Theprevailingstyleofmanagementmustundergoatransformation.Asystemcannotunderstanditself.Thetransformationrequiresaviewfromoutside.[Weneed]anoutsideviewalensthat[Deming]calledthesystemofprofoundknowledge.Itprovidesamapoftheorybywhichto

understandtheorganizationthatweworkin.

ProfoundKnowledgeconsistsoffourinterrelatedcomponents:appreciationforasystem;knowledgeaboutvariation;theoryofknowledge;andpsychology.(SeeFigure122.)

Figure122TheSystemofProfoundKnowledgeTM

Appreciationforasystem."Asystemisanetworkofinterdependentcomponentsthatworktogethertotrytoaccomplishtheaimofthesystem.Asystemmusthaveanaim.Withoutanaim,thereisnosystem.Asystemmustbemanaged."Thereexistsatremendouslevelofinterdependencebetweenthecomponentsofthesystem.Eachofthecomponentshasanobligationtothesystem,andthepeopleinthesystemhaveanobligationtonegotiateonthebestinterestsofeveryone.

Knowledgeaboutvariation."[Therewill]alwaysbevariationbetweenpeopleininputs,inoutputs,inservice,inproduct."Wemustunderstandwhatvariationistellingusabouttheprocess,aboutthepeoplewhoworkinitandknowwhattodoaboutvariation.Asanexample,creditorblameshouldnotbebasedonnaturalvariationofthesystem.

Theoryofknowledge."TheTheoryofKnowledgehelpsustounderstandthatmanagementinanyformisprediction."Astatementoftheorybasedonknowledgecanpredictthefuture.Itmaybewrong.Whetheritisprovenrightorwrong,moreknowledgehasbeengained.Theinterpretationofsuccess(orfailure)isbestusedtoadjustthestatementoftheory.Thishelpstoaddvaluetodata.Theorystatementsalsoaidincommunicationbyforcingoperationaldefinitionsofthetheory.

Psychology."Psychologyhelpsustounderstandpeople,interaction

betweenpeopleandcircumstances,interactionbetweencustomerandsupplier,interactionbetweenteacherandpupil,interactionbetweenamanagerandhispeopleandanysystemofmanagement.Peoplearedifferentfromoneanother.Amanagerofpeoplemustbeawareofthesedifferencesandusethemforoptimizationofeverybody'sabilitiesandinclinations.Thisisnotrankingpeople.Managementofindustry,educationandgovernmentoperatetodaybasedonsuppositionthatallpeo-

piearealike."Peoplearesignificantlydifferentfromoneanotherinthewaystheyact,react,andlearn.Whatmotivatesonepersonmaybeofnointerestatalltoanother.Everyone,however,canexperienceintrinsicandextrinsicmotivation.Extrinsicmotivationisderivedfromexternalsourcesandincludesthingslikepay,bonuses,andgoodratings(orgrades).Intrinsicmotivationcomesfromwithinindividuals.Joyofdoingyourbest,thepleasureoflearningandbeinginnovativeareallintrinsic.

Weallrespondtobothinvaryingdegrees.Whenpeoplearemanipulatedorbecomeobsessedwithextrinsicmotivation,theycanbecomedemotivatedwhenmanagementthinkspositivemotivationisbeingprovided.Rewardscanactuallybecomediscouragement.Thisconceptisnoteasilyunderstoodandmustbestudiedwithanopenmindinordertodevelopanewwayofthinkingaboutotherwisecommonlyacceptedideas.

TheinterpretationofDr.Deming's14PointsinFigure123(seepp.178179)wasmadebyCharlesD.Markertin1991toshowthatthepointscanequallybeappliedathomeandinthecommunity.1Iftheycouldbeunderstoodandappliedathomewithfamily,friends,andneighbors,theymustintuitivelybeapplicabletoanybusinesssetting,notjustfactories.

DemingdidnotlikeputtinglabelslikeTQM,oranyothername,onhissystem.TheTQMlabelisoftenattributedtotheU.S.DepartmentofDefenseandismorerecentlyknownasTQL(TotalQualityLeadership).

TQMhasmanybuilt-insubtleties.Afewoftheseareobvious;somearenot.Allareimportant.Herearesomeofthe"truths"thatwritersonTQMhavefound.

·Anestimated85to95percentoftheproblemsarewiththeprocess,

notthepeople.Managementownstheprocess.

·Peoplearegenerallywillingworkersdoingthebestthattheprocess/systemwillallow.

·Measuresshouldbeusedasanindicatortofixtheprocess,nottopunishorrewardworkers.

·Usebothtrainingandeducationwithyourworkforce,andknowthedifferencebetweenthetwo.

1InpersonalcorrespondencewithDr.Deming,MarkertaskedDr.Demingwhathethoughtofhis"HomeVersionofDr.Deming's14Points."Dr.Demingrespondedthat,"Yourwordsliftmyspirit."

·Teamempowermentmeansacceptingteamdecisions.

·Thechainofcommandisstillintact.Itisbehaviorthatisdifferent.

·Trustisearnedby''walkingthetalk."

·Weliveinaworldofprocessesthatcanusuallyallbeimproved.Knowwhichonestoimprovenext.

·ThetransformationtothisnewTQMculturewilltakedecades.Someprogresscanberealizedalmostimmediately.Sustainabilityiselusive.

ManypeoplehavetheimpressionthatTQMisappropriateonlyforaproductionprocessorassemblyline.Nothingcouldbefurtherfromthetruth.Weliveinaworldofprocesses.Wehaveaprocesstogetupinthemorningandgotowork.Livingisaprocess.Itcanbeflow-chartedandhasthepotentialtobeimprovedthroughTQMtechniques.

Finally,contrastingcharacteristicsbetweentraditionalandTQMorganizationsaredescribedbytheFederalQualityInstituteinFigure124(Seep.180).

CTheInteractionofPartneringandTQM

PartneringandTQMaresimilar,yetdifferent,managementmethodologies.ThebasicdifferencebetweenTQMandpartneringisthatTQMhasasystem-wide,long-termfocus,whilepartneringarrangementshavealifeequaltotheprojectduration.Asaresult,partneringandTQMcomplimentandenhanceeachother.Bothstresseffectivecommunicationandunderstandingascriticalelements,andbothinvolveauniqueprocess.Eachincorporateslogicalandrationalproblem-solvingtechniques.Bothstrivetoimprovebusinessendeavors.Forexample,ifabusinessrelationshipisforgedtodeliver

abuilding,someinfrastructurecomponent,oraproductionfacility,thenitisinthebestinterestofallconcernedtoaccomplishthegoalwiththeleastturmoilandwaste,andinthemostexpedientandleastcostlywaypossible.PartneringandTQMaremethodologiesdesignedtoachievethat.PartneringisaprocessthatworksevenbetterwithorganizationsthatpracticethephilosophyofTQM.

1.ConstancyofPurpose.Realizewhatyourpurposeisinlife.Beaboutthebusinessofpursuingthatpurposeateveryopportunity.Everythingyoudoshouldbeinlinewithit.2.OpenYourMindtoaNewWayofThinking.Theworldaroundyouischanging.Yourenvironmentisdifferentfromthatofyourancestors,andsoitwillbeforyourdescendants.Recognizeandchangeyourparadigms.3.StopContinually"CheckingUp"onOthers.Checkingupforthepurposeofpassingcriticaljudgmentontheachievementsofothersiscounterproductive.Thereisnorewardforfindingfault.Setaboutthetaskofbuildingpeople'sskillsandconfidence.4.EstablishLong-TermRelationshipsBasedonTrustandLoyalty.Atraditionofnurturingafamilysupportgroupforthelong-termwillmakelifeapleasantjourney.Includefriendsandprofessionalsaswellasfamilymembers.Donotfallintothetrapof"What'sinitforme?"Bea"giver,"nota''taker."5.ConstantlyImproveForever.Recognizethereisalwaysroomtoimproveyourselfandyourrelationshipswithothers.Neverbesatisfiedwiththestatusquo.Ifarelationshipisworthkeeping,itisworthimprovingandkeepingforever.6.HelpPeopletoLearnby"Doing."Experienceistheinstructionmanualforthebody,brain,andbeing.Giveyourknowledgeandtoolsforcopingwith"life"toyourfamilyandfriendssotheymaybetterunderstandhowtodealwithpeopleandwiththeinevitable"upsanddowns"oflife.Becomeastudentofyourownhumannaturefirst.7.SetanExample.Settinganexampleisthemostpowerfulwaytoleadpeopletotheirfullestpotential.Helpotherswithouttellingthemhowtolivetheirlives.Remember,whatyouDOisso"loud,"theycannothearwhatyou'resaying.Thegloryofleadingotherstogreaterachievementsbelongstoyouonlyasthewarmreflectionoftheirsuccess.8.NeverStrikeFearofYouintheHeartsofOthers.Beapproachable,caring,loving,andgiving.Afeelingoffearinotherswillpreventthemfromeversharingtheirthoughts,

Figure123"The'HomeVersion'ofDeming's14Points"or"TotalQualityLiving"**DevelopedexclusivelybyCharlesMarkert.

feelings,ortheirliveswithyou.Suchalossisyoursaswellastheirs.Fearpreventstheseedsoftrustfromeverflourishing.Harborkindnessinyourheartandnurturewarmfeelingsinyourmindtowardothers.Thereisnosuchthingas"constructive"criticism.Learnbygivingpositivefeedback,foritistrulythe"BreakfastofChampions."9.CauseOtherstoVoluntarilyHelpOneAnother.Beacatalystforcooperation.Besharingofyourtime,yourpossessions,andmostofall,yourfriendship.Developanddemonstratepositivesynergywithothers.10.LivebyStrongBeliefsRatherThanShallowWords.Exhortingotherstochangetheirbeliefsandbehaviorisnottheanswer.Demandsandpronouncementswillproducelittle.Rather,communicatethisphilosophyasyourbelief,andshowyourcommitmentbypracticingyourbelief.11.Explainthe"WhatandtheWhy"oftheDesiredOutcome.Demandingspecificandexactingperformancewillnotproducethedesiredresults.Rather,explainwhathastobedoneandwhyitmustbedone,andfurther,askforsuggestionsandideasonhowthedesiredresultmightbetterbeachievedorexceeded.Mostimportantly,ACTontheirsuggestions.12.HelpAlltoTakePrideinTheirAchievements.Helpothersbeproudofwhotheyareandwhattheyhaveaccomplished.Avoidcomparingonepersontoanotherorhighlightingshortcomings.Competitionbetweenfamilyandfriendswillonlycausesomeonetoloseprideandself-esteem.Yourlove,respect,andtrustarefarmorevaluablethantokenmonetaryrewards.13.HelpImproveYourselfandOthers.Lifeisado-it-yourselfproject.Createopportunitiesforotherstoimprovethemselvesineveryway.Helpthemtobemorethantheyeverimaginedandtobecomealittlebettereveryday.Yourrewardisinknowingyouhelpedthemtohelpthemselves.Expandandimproveyourownthoughtsanddeeds.Makeyourselfmorevaluabletoothers.14.GetEveryoneInvolvedinImprovingLifeAsWeKnowIt.Buildabetterself,family,neighborhood,andworld,bygettingeveryonetousebetterwaysofrelatingtooneanother.Suchenthusiasmiscontagiouswhenitisnurturedandbelievedbyyou.

Figure123(continued)

THETRADITIONALWAY

THETQMAPPROACH

Theorganizationstructureishierarchicalandhasrigidlinesofauthorityandresponsibility

Theorganizationalstructurehasbecomeflatter,moreflexible,andlesshierarchical

Focusisonmaintainingthestatusquo(ifitain'tbroke,don'tfixit).

Focusshiftstocontinuousimprovementinsystemsandprocesses(continuetoimproveitevenifitaintbroke)

Workersperceivesupervisorsasbossesorcops.

Workersperceivesupervisorsascoachesandfacilitators.Themanagerisseenasaleader.

Supervisor/subordinaterelationshipsarecharacterizedbydependency,fear,andcontrol.

Supervisor/subordinaterelationshipsshifttointerdependency,trust,andmutualcommitment.

Managementperceiveslaborandtrainingascosts,

Managementperceiveslaborasanassetandtrainingasaninvestment.

Managementdetermineswhatqualityisandwhetheritisbeingprovided.

Theorganizationaskscustomerstodefinequality,anddevelopsmeasurestodetermineifthecustomers'requirementsarebeingmet.

Thefocusofemployeeeffortisonindividualeffort;workersviewthemselvesascompetitors.

Thefocusofemployeeeffortshiftstoteameffort;workersseethemselvesasteammates.

Primarybasisfordecisionsison"gutfeeling"orinstincts.

Primarybasisfordecisionsshiftstofactsandsystems.

Figure124DifferencesBetweenTraditionalandTQMOrganizations

Partneringcanbeusedasaqualityimprovementmethodology.Itcontainsmanyoftheelementsofsoundbusinesspractice.Theseelementsarepresentinallqualityimprovementmethodologies.Thetenetsofpartneringareinherentinallsuccessfulqualityimprovementefforts.Justasflourcanbeusedtomakeeitherbreadorglue,bothpartneringandTQMhavecommonelementsbutareseparatecomplementarymethodologies.

Partnering,likeTQM,reliesonmakinggooddecisions.Curiosityabouthowtomakequalitydecisionsbeginstheimprovementprocess.Partneringisajourneythroughmanyunknownandunforeseenproblemswherequalitydecisionsarefoundthroughuseofenhancedcommunicationandcollaboration.

Thesystemwefindourselvesinseemstohavetwomajorcomponents:peopleandprocesses(SeeFigure125).

Thepartneringprocessisbuiltthesameway:attentiontoteam-buildingupfront(people),throughasharedpurposeandcommongoals(actions),withaclearunderstandingofroles.Thereisaprocessforactivelyresolvingissuesanddisputesaswellasaprocessforgatheringandusingfeedbacktoadjusttheprocessperformancebasedonoutcomes.(SeeFigure126.)Thebeautyinthisapproachisthatitisrepeatableinthefaceofalltheforcestothecontrary.

Partneringisallaboutorganizationsempoweringpeopletotakeactionthroughsharedgoals,teamwork,problem-solving,andconsistentandsupportivemanagementbehavior,withfrequentfeedbackusedtoadjustperformance.(SeeFigure127.)

Figure125TheSimplifiedSystem

Figure126ThePartneringProcess

Figure127PartneringEmpowerment

TheTQMdimensionofpartneringisoftenoverlooked.TQMisbothpartneringbehaviorandcontinuousprocessimprovement.Partneringatitsveryessencerequirestrustandfairnessinordertothrive.Onemusttrustthattheotherpartiesinaventurewillnotharmyou,eitherthroughactionorinaction.Fairnessisanoutcomeofanattitudethatgoeswellbeyondthehandshaketowardarelationshipwhereeachpartyismorethanfairtotheotherparty.Theresultisanatmosphereofhelpingeachothertosucceed.Trustisthepositiveexpectationthatyouwillbehelped;itisnottheabsenceofharm.

Therearemanythemes,characteristics,andgoalsthatbothTQMandpartneringshare.Thefollowingisapartiallist:

·ProblemPrevention(Beginsduringthepartneringworkshop)

Team-building

Preventproblemsfromoccurringandre-occurring

Eliminatereworkandscraptoimproveproductivity

·Problem-Solving(Actionplanningfor"RocksintheRoad")

Creativelyconvertproblemsintowin-winopportunities

·CustomerFocus(Commitmenttobeingproactive)

Improveresponsivenesstocustomerandclient

·Feedback(Regularpartneringevaluationsessions)

Makethebestuseoffeedbackontheprocess

·Teamwork(Helpingeachothersucceed)

Extensiveuseofteamsandteamwork

Usesynergytoaccomplishmoreanddecidebetter

Useofneutralfacilitatorsforteameffectiveness

·Focus(PartneringCharter)

Haveeveryoneworkingtowardthesharedvisionoraim

Focusonsharedvaluesandspecificgoals

·Celebration(Awards,etc.,thatcelebratethepositives)

Celebratesuccessfuloutcomes/results

Recognizepositiveteambehaviors

Howwellpartneringworksultimatelyismeasuredbytheoutcomeoftheproject.Theobviousdesiredoutcomesareausablefacility,safelyconstructedwithinbudgetandonschedule.Theintangibledesiredoutcomesareasenseofpride,achievement,teamwork,andenjoymentthatflowsfrombeingaparticipantonawell-performingteam.Mostcanrecallsuchateamonapast

projectwherealltheseintangibleswerepresent.Whydidthatteamworksowell?Theparticipantsprobablyperformedmanyofthecomponentsofthepartneringprocesswithoutrealizingit.Figure128showsthecomponentsofpartnering,whicharealsocriticalcomponentsinTQM.Thecomponentsofpartneringarenotnew.Theycomefromexcellentleadershipandgoodmanagementpractice.Theyarealsofoundinthequalitymovement.IthasbeensaidthatpartneringcanbedonewithoutTQM,butTQMcannotbedonewithoutpartnering.Infact,partneringcanbealead-intoeffectivelylaunchingTQM.

Figure129showsthefocusrequiredtoachievesuccessfulpartneringaswellasimprovequality.Theculturalchangeismostdifficulttoachieve.The"relationship"and"behaviors"arethepeoplepartoftheequationandaremostoftenoverlookedorconsideredtoo"touchy-feely."Thisreluctanceislikedrivingwithoneeyeclosedonanarrowmountainroadwithnoguardrail.Itisaquestionablepracticeatbest.Atitsworst,itwillbedeadly.

PartneringandTQMshareacommonattributeintheuseofafacilitatortohelpimplementtheprocess.Askilledfacilitatorcanbethenavigatorandcoachthatcandrawoutfullparticipationinthefaceofspecialinterestsandpredeterminedideas.Usingafacilitator'stoolsandskills,creativitycanbecoaxedout,andsolutionsachieved.Initiatinganatmosphereoftrustandfair-

Figure128ComponentsofPartneringandTQM

Figure129RequiredFocus

nessisextremelydifficultforsomeonewhohasavestedinterestintheproject.Onceitisinitiated,teammembersmustmaintainthatatmosphereoftrustandfairness.Agoodfacilitatormustbeabletoteachwithavarietyoftoolsandtechniqueswhileremainingneutralonthesubjecttaught.

BothTQMandpartneringareteam-orientedprocesses,andnotameansforindividualachievement.Bothcreateanexpectationforindividualexcellence,however.Themostproductiveteamsareacollectionofeveryone'sbesteffortswithoutregardtowhichthecreditflows.Acrucialmeansofenhancingthisproductivityisdemonstratingrespectforindividualopinionwhilereachingdecisionsbybuildingconsensus.PartneringandTQMfunctionjointlytocreatetherespectandtrustnecessarytoachievethiscollaboration.Whileitispossibletoimplementeitherprocessseparately,thesynergisticreturnsofthesecombinedmethodologiesmaybethenextwaveofrefinementintheuseofpartneringonconstructionprojects.

Figure1210showsthecomplimentarypotentialoftheAlternativeDisputeResolution(ADR)processrelativetoTQMandpartnering.Asensibleapproachtopreventionplanningistohaveanagreed-uponADRprocessstandingby.

Figure1210PartneringIntertwined

Chapter13AlternativeDisputeResolution131LitigationAvoidanceInterest132ADRContinuum133IndividualMethods134Third-PartyAssistedMethods135AdjudicativeMethods136ADRandPartnering

131LitigationAvoidanceInterest

Theinterestsofthoseintheconstructionindustrytoavoidlitigationhasneverbeenmoreapparentthanoverthepasttwodecades.Thisperiodhasseenanunprecedentedincreaseinthenumberofcontractclaimsincourt.Theincreaseddependenceonlitigationtoresolvecontractproblemshasnotonlyburdenedthecourts,ithasalsoharmedthecontractingparties,regardlessofwhoprevailsattrial.Whennegotiationfailstosettlecontractproblems,subsequentlitigationistime-consuming,expensive,andfrustratingtoeveryoneinvolvedintheprocess.Itcauseshostilityonthejobsiteandresultsinunrealizedcontractgoals.

Inanattempttochangethisadversarialenvironmentandavoidthedetrimentalconsequencesoflitigation,interesthasgrowninmorecreativeandinnovativemeansforresolvingdisputes.Theseothermeansfordisputeresolutionarereferredtocol-

lectivelyasAlternativeDisputeResolution(ADR).Whenusedbycontractingparties,ADRhasproventobeaquicker,lesscostly,andmoresatisfyingexperienceforresolvingdisputesthanlitigation.

Inpartnering,theeliminationorreductionofdisputesisdiscussedattheinitialworkshopandoftenisstatedasagoalintheparties'charter.Whenthisoccurs,anactionplanfordisputeresolutionmaybedeveloped.Theactionplanmayprovideforstructuredandexpeditednegotiations,anditmayalsoincludeacommitmenttouseADRatsomestageofthedispute.Therefore,anunderstandingoftheADRtechniquesishelpfulindesigningthebestdisputeresolutionsystemtomeettheneedsofthepartneringteam.AsampleADRactionplanisshowninFigure131.

132ADRContinuum

ADRisnotasingleprocess.Rather,ADRisacontinuumoftechniquesavailabletoresolvedisputesasanalternativetolitigation.Theseincludeindividualmethods,third-partyassistancemethods,andadjudicativemethods.(SeeFigure132.)

Individualmethodsarevariationsofnegotiationtechniques.Untilrecently,contractingpartiesprimarilyhaverelieduponpositionalnegotiationstoresolvecontractclaimspriortolitigation.Unfortunately,thisnegotiationtechniquehasnotreducedtheriseinthenumberofcontractclaims,andtoooften,anegotiatedresolutionisonlyreachedwhenthepartiesareonthecourthousestepsandsubstantialresourceshavealreadybeenexpended.Innovativenegotiationtechniquesareneededbeyondthetraditionalapproachofpositionalnegotiationastheonlyalternativetolitigation.Anewnegotiationtechnique,interest-basedbargaining,issuchanalternativeandisbeginningtobeusedwithincreasedsuccess.

Third-partyassistancemethodsprovideadditionaltechniquesforfacilitatedresolutionofcontractdisputes.InthisgroupofADRtechniques,aneutralandimpartialthirdpartyintervenestoprovideeitherproceduralorsubstantiveadvicetothecontractingparties.Proceduralassistanceisgenerallyinformalandmostcommonlyprovidedinmediation.Thistypeofassistanceprovidesoutsidehelpincreatingaframework,orprocedure,forfurther

The___________PartneringTeamforthe___________projectagreesthatdisputeresolutionisamutualgoaloftheteammembers.Webelievedisputeresolutionisakeyelementofourcharterandimportanttosustainingourcooperativerelationship.The___________PartneringTeamrecognizesthatdisputesmayariseduringcontractperformanceandhasdevelopedanADRactionplantoaddressthesedisputesquicklyandefficiently.The___________PartneringTeamacknowledgesthatthisactionplanneitherchangesthecontractualrightsofanyparticipatingorganizationnorlimitstheirrighttoseekjudicialenforcementofthoserights.ThisADRactionplanisourgoodfaithcommitmenttoresolvedisputeswithouttheneedforcostlyandtime-consuminglitigation.The___________PartneringTeamagreesthatdisputesarisingduringcontractperformanceshouldberaisedatthejobsiteandattemptsatresolutionshouldbeatthelowestlevelpossible.Whenadisputecannotberesolvedquickly,theADRactionplanprovidesfora______stepdisputeresolutioneffort,outlinedasfollows:Step1.ExpeditedClaimsNegotiations.Anypartymayraiseadisputeorallyorinwriting.Thedisputewillbeconsideredbythe[projectmanagementofficialforX]andthe[projectmanagementofficialforY].Iftheycannotresolvethedisputewithin_____days,thedisputewillbeelevatedtoa[homeofficeofficialforX]anda[homeofficeofficialforY].Theyhave_____daystoresolvethedispute.Ifthedisputeisnotresolved,itwillbereferredto[seniormanagementofficialforX]and[seniormanagementofficialforY].Step2.AdvisoryMediation.WhenexpeditednegotiationsasprovidedinStep1donotresolvethedispute,anypartymaysendthedisputetoadvisorymediation.Thepartiesselect___________astheirmediatorandagreetothefollowingmediationprocedures:[list]Step3.Arbitration.Ifmediationfailstoresultinamutuallyacceptableresolution,anypartycanrequestthattheotherpartiesconsiderbindingarbitration.Arbitrationis,however,voluntaryandonlymaybeusedwhentheaffectedpartiesagreetoitandenterintoawrittenarbitrationagreementthatestablishesproceduresdeemedappropriatefortheparticulardispute.Ifarbitrationisdeclined,litigationmaybecommencedin[jurisdiction]forbindiingresolutionofthedispute.

Figure131SampleADRActionPlan

Individual Assisted AdjudicativePreventiveResolution ProceduralSubstantive NonbindingBindingTeam-Building

PositionalNegotiations

Mediation NonbindingArbitration

Mini-Trial SummaryTrialwithBindingDecision

Partnering Interest-BasedBargaining

Fact-Finding

AdvisoryMediation

SettlementJudge

Arbitration

Mini-Trial SummaryJuryTrial

Litigation

DisputeReviewBoardEarlyNeutralEvaluation

Figure132ADRContinuum

negotiationsbetweenthecontractingparties.Substantiveadviceisprovidedinprocesses,includingmini-trial,nonbindingarbitration,projectneutrals,anddisputereviewboards.Inthesesubstantivetechniques,thethirdpartylistenstothedispute,evaluatesthestrengthsandweaknessesofeachposition,andprovidesadviceinanoralrecommendationorwrittendecision.Contractingpartieshavesuccessfullyusedcombinationsofbothproceduralandsubstantivethird-partyassistance.

Theadjudicativemethodsprovideforassistancefromjudgesonboardsofcontractappealsorcourtstoassistinresolutionefforts,orfortheuseofanindependentthirdpartytodecidethematterandbindtheparties.Inmanystatecourts,judgesusespecialmasters,mediation,orsummaryjurytrialsasalternativestofulllitigation.AtthefederalBoardsofContractAppeals,threetypesofADRprocessesareprimarilyused:mini-trial,settlementjudge,andsummarytrialwithbindingdecision.IntheU.S.CourtofFederalClaims,judgesusethemini-trial,settlementjudge,andthird-partyneutralprocesses.Arbitrationistheuseofanindependentthirdparty,selectedbytheaffectedparties,toprovideabindingdecisionforallinvolved.Mostjurisdictionsactivelyencouragethisadjudicativemechanismandgiveitthesameweightasatrialcourtdecision.

133IndividualMethods

APositionalNegotiations

Typically,positionalnegotiationsarerelieduponbymostpartiestoresolvecontractdisputes.Positionalnegotiationsfocusonrights-basedbargaining.Thepartiesstatetheirindividualpositionsandcommentonwhytheirpositionistheright,legal,orequitable

solution.Extremeproposalsareoftenusedtoopennegotiations.Proposalsaretradedthatareconsistentwiththeparty'spositions.Eachpartynegotiatesbyseekingconcessionsfromtheotherparty.Resolutionisnormallyreachedthroughaseriesofoffers,arguments,counteroffers,andconcessions.Finally,ifacompromiseisreachedthatisacceptabletoallparties,asettlementagreementresults.

BInterest-BasedBargaining

Interest-basedbargainingisanegotiatingtechniquethatcausesthecontractingpartiestofocusontheirneedsratherthanexclusivelyonwhoisrightorwrong.Ininterest-basedbargaining,thecontractingpartiesidentifytheirneedsanddiscusstheirconcerns.Insteadofmerelyexchangingsettlementproposals,theycanmutuallydevelopoptionsandstrivetosatisfyallormostoftheirneeds.Forcontractdisputesinvolvingthegovernment,findingoptionsotherthanmonetaryonescanbeachallenge.Whenthereisaclearlitigationrisk,interest-basedbargainingcanstrikeabalancebetweenthelitigationriskandbusinessinterests.

CStepNegotiations

Asavarianttoissueresolutionladders,somepartiesestablish,viacontract,disputereviewbysuccessivelyhigherlevelmanagementpersonnelasaprerequisitetomoreformal,third-partyassisteddisputeresolutiontechniques.Briefingorpositionpapersareusedtoeducatebothsidesandtheensuinghighermanagers.Onevariationonthisconceptcallsforeachsidetowriteabriefdescriptionoftheother'spositiontohelpthepartiesappreciateeachother'spositionandclearlyunderstandit.

134Third-PartyAssistedMethods

AMediation

Mediationisprobablytheoldest,mostfamiliar,andmostfrequentlyusedthird-partyassistedADRtechnique.Primarilyrelieduponby

businesstoresolvelabormanagementconflicts,theuseofmediationinothertypesofcontractdisputesisexpanding.Mediationinvolvestheinterventionofathirdperson,themediator,inaconflicttoassistthedisputingpartiestovoluntarilynegotiateajointlyacceptableresolutionoftheproblem.

Themediatorisaneutralandimpartialthirdpartywhoprovidesproceduralassistancetofacilitatenegotiations.Themediatorassiststhedisputingpartiestoestablishcommunication,identifytheissuesinconflict,clarifyfacts,anddesignaneffectivenegotiatingprocessforthepartiestouse.Themediationprocessisgenerallyinformalandflexible.Themediatorcanconductjointsessionswithbothpartiespresentorholdseparatecaucuseswitheachparty.

Inmediation,thecontractingpartiesretaincontrolovertheprocessand,moreimportantly,overthesubstantiveoutcomeofthedispute.Themediatorisnotadecisionmaker.Themediatordoes,however,influencetheproceduresthatthepartieswillusetopresentinformation,conductnegotiations,andreachasettlement.

Thereisatechnique,referredtoasadvisoryorevaluativemediation,whereinthemediatorwillprovidesubstantiveadvicetotheparties.Thisisdiscussedinthefollowingsection.

BFact-Finding

TheADRtechniqueoffact-findingisdesignedtoprovidethecontractingpartieswithaprocesstoestablishthefactsconcerningthedispute.Thistechniqueisusedwhenthefactshavenotbeenfullydevelopedandthepartiesneedassistanceingatheringinformation,orwhentheconflictisaboutthefacts.

Infact-finding,thethird-partyneutral(orfact-finder)conductsaninvestigationofthecircumstancessurroundingthedispute.Theinvestigationisnormallyinformalandflexible.Duringtheinvestigation,thepartiesusuallyprovidefreeandopenaccesstotheirdocumentstothefact-finderandmakewitnessesavailableforinterviews.Sometimes,thefact-findermayconductajointhearingtoreceivedocumentsandtohearstatementsfromwitnesses.

Attheconclusionoftheinvestigation,thefact-finderpreparesareportcontainingthefindingsoffactand,sometimes,recommendationsoroptionsforresolution.Thefact-finderisneitheramediatornoradecisionmaker.Theroleofthefact-finderistomakeanimpartialassessmentofthefactstoassistthepartiesintheirnegotiations.

CMini-Trial

Althoughtheterm''mini-trial"wascoined,thelabelisreallyamisnomer.Themini-trialisnotashortenedjudicialproceeding.Ratherthanpresentingthedisputeinanadversarialsettingtoathirdpartywithauthoritytobindtheparties,thedisputeispresentedtorepresentativesofthedisputingparties,whoattempttonegotiateasettlementwiththeassistanceofaneutralthirdparty.Themini-trialhasbeendefinedbytheU.S.CorpsofEngineersasa"voluntary,expeditedandnonjudicialprocedurewherebytopmanagementofficialsforeachpartymeetwiththeassistanceofathirdpartytoresolvedisputes."

Amini-trialhasfivedistinctcharacteristics.Eachofthefollowingcharacteristicsmaybetailoredtoachievethebestfitofthemini-trialtothedisputeatissue.

1.Involvingtopmanagement

2.Settinglimitsontime

3.Conductinganinformalconference

4.Holdingnonbindingdiscussions

5.Receivingneutral-advisorguidance

Theinvolvementoftopmanagement,typicallyaseniormanagerwithfullauthoritytosettlethedispute,isessentialtothesuccessofthemini-trialprocess.Ideally,theseniormanagershouldnothavehadpriorpersonalinvolvementinthedispute.Thisaffordseachpartyanopportunitytohaveaseniormanagertakeafreshlookatthedisputewithoutthemanager'sdeliberationsandjudgmentbeingcloudedbyanypreviousinvolvementinthedispute.However,smaller-sizedcontractorsoftendonothaveaseniormanagerwhowasnot

previouslyinvolvedtosomedegree.Intheseinstances,theseniormanagercanparticipate,butwillhavetobecarefulnottobecomeanadvocateforthecontractor'spositioniftheprocessistobecredible.

Inmostcases,theprocessshouldbecompletewithinonetothreemonths,includingthetimefordiscoveryandtheconference.Theamountoftimeaseniormanagermustdevotetoamini-trialislimitedtotheconferencefollowedbythetimenecessaryforsettlementdiscussions.

Theconferencebetweentheseniormanagersisinformalandusuallylastsfromonetotwodays.Althoughtheconferenceis

informal,themini-trialprocessisstructured.Eachpartyisallowedaspecificamountoftimetopresentitsbestcase.Typically,therefore,theyfocusoncoreissueswithlimitedornoreferencetodocuments.Priortotheconference,eachpartyusuallyhasalawyerprepareitspositionforpresentationtotheseniormanagers.Inkeepingwiththeinformalnatureoftheconference,thepartiesareallowedconsiderableflexibilityinthemannerinwhichtheypresenttheircase.Witnesses,experts,documents,oralargument,graphs,andchartsmayallbeusedtoinformseniormanagersquicklyaboutthedispute.Furthermore,formalrulesofevidencearenotenforcedandnoobjectionsareallowed.Duringtheinformalconference,theseniormanagersmayaskquestionsorrequestmoreinformation.

Thesettlementdiscussionsbetweentheseniormanagersaftertheconferencearenonbindingandarekeptconfidential.Neitherpartymayuseanystatementsmadeduringthediscussionsinsubsequentlitigationasevidenceofanadmissionbytheotherparty.

Thelastcharacteristicofthemini-trialtechniqueistheuseofathird-partyneutraladvisortoprovideassistance.Theneutraladvisorcanassisttheseniormanagersindevelopingthefactsandassessingthemeritsofthedispute.Attheinformalconference,theseniormanagersmayasktheneutraladvisortoadministertheground-rulesandaskthequestionsofwitnessesandexperts.Duringsettlementnegotiations,theneutraladvisormayadvisetheseniormanagersonthestrengthsandweaknessesoftheconflictingpositionsandsuggestpossibleoptionsforsettlement.

DNonbindingArbitration

NonbindingarbitrationisanADRtechniquedesignedforusewhenclaimsconcernextremelytechnicalmatters.Itprovidestechnicalorlegalevaluationoftheclaimbyaneutral,third-partyarbitratorwho

hasexpertiseinthedisputedissues.

Innonbindingarbitration,thepartiesfollowstandardarbitrationproceduresexceptthatthearbitratordoesnothavetheauthoritytobindthepartieswiththedecision.Theentiredisputeissubmittedtoanarbitratororathree-personarbitrationpanelwhichconductsahearingandprovidesawritten,nonbinding

decisiononthemeritsofthedisputethatservesasaguideforsubsequentnegotiationsbytheparties.Seniormanagersarenotrequiredtobepresentduringthehearing.

Thearbitrator'sdecisionissupportedbydetailedfactualfindingsandanexpertanalysisofthetechnicalissues.Thepartiescanacceptthedecisionasfinalorusethedecisionasabasisforadditionalnegotiations.Further,thewrittendecisioncansupportasettlementmemorandum.

EAdvisoryMediation

Auniquehybridofmediationandnonbindingarbitrationisatwo-stepprocessreferredtoasadvisorymediation.Inthefirststep,thethird-partymediatorconductsatypicalmediationsessionwiththedisputingparties.Ifthemediationissuccessfulandresolutionisreached,thatendstheprocess.Shouldthemediationsessionnotresolvethedispute,however,theprocessmovestothenextstep,whichisadvisory.Atthisstep,themediatorisfrequentlyaskedtoevaluatethestrengthsandweaknessesofeachpositionandadvisetheparties.Insomeinstances,themediatorisrequiredtoprovideawritten,nonbindingreportthatthepartiescanacceptandsettlethedispute,orthepartiescanusethereporttoassistfurthernegotiations.

Theselectionofamediatorwhocanprovidebothproceduralassistanceandsubstantivefeedbacktothepartiesiscriticaltoadvisorymediation.ThetechniqueofadvisorymediationissimilartoanotheruniqueADRprocesscalledmed-arb.Thedifferencebetweenadvisorymediationandmed-arbisthatinmed-arbthethirdparty'sarbitrationdecisiondoesbindthedisputingparties.

FDisputeReviewBoard

Adisputereviewboardisathird-partyassistedADRmethodthatprovidesforanon-the-jobpanelofexpertstoprovidedecisionsconcurrenttoperformanceontheproject.Thistechniquewasoriginallydevelopedinprivateindustrytoresolveconstructiondisputesbetweenownersandcontractorsoncontractsforundergroundtunnelandhighwayconstructionprojects.Todayitisbeingusedonalltypesofconstructionprojects.

Thedisputereviewboardusuallyconsistsofathree-member,neutralpanelselectedbytheparties,whoareavailabletoheardisputesandmakesubstantiverecommendationstoresolvethem.Oftenthepartieswilleachselectonememberandthosetwomemberswillselectthethird.Themembersareneutralandhavenoemploymentorfinancialconnectionswiththeparties.Inaddition,themembersareselectedfortheirtechnicalexpertise.Thedisputereviewboardisselectedatthebeginningofthecontractandisinplacethroughoutperformancetoassistthepartiesinresolvingdisputesastheyoccur.

Adisputereviewboardischaracterizedby:

·Earlyestablishment

·Neutralpanel

·Periodicsitevisits

·Informalmeetings

·Structureddisputeresolutionprocedures

·Writtenopinions

Theboardmembersmakeperiodicsitevisitsduringperformancetomeetinformallywiththeparties.Attheseinformalmeetingsthepartiesdiscussthecontractschedule,potentialareasofdisputes,andhowtomaintainpositivecommunicationsbetweenthecontractingparties.

Ifadisputedoesarisethatcannotberesolvedbytheparties,thedisputecanbereferredtothepanelforconsiderationunderestablishedprocedures.Afterhearingthepositionsofbothparties,awrittenreportisprovidedthatanalyzesthefactsandprovidesarecommendeddecision.Thepartiesdecidebeforethereportwhetherthepaneldecisionwillbenonbinding.Thepartiescanadoptthe

recommendeddecision,useitasthebasisforfurthersettlementnegotiations,orcanagreetobeboundbythedecisionduringprojectperformancewithasubsequentrightto"appeal"thedecision,buttypicallyonlyaftertheprojectiscompleted.

GEarlyNeutralEvaluation

Inearlyneutralevaluation(ENE),thedisputingpartiesuseaneutralthird-party,referredtoasanevaluator,toassessthemeritsofthecontractclaim.Thepartiesmutuallyselecttheevaluator,who

isanexpertinthematterindispute.Incourt-orderedENE,thecourtwillusuallyappointtheevaluator.

Attheevaluationsession,theparticipantsandpresentationsaresimilartothemini-trial,butENEislessstructured.Normallytheevaluatorpresidesattheevaluationsession,whichconsistsofpresentationsbythepartieswithoutwitnesses,limitedexhibits,anoralassessmentbytheevaluator,andsettlementdiscussionsamongthepartiesandevaluator.Duringthesettlementdiscussions,theevaluatorfacilitatestheidentificationofissues,clarificationoffacts,andsettlementoptions.

HProjectNeutralProcess

Theprojectneutralprocessisverysimilartothedisputereviewboardprocessdescribedabove.ThemainsimilarityintheseADRtechniquesisthatthethirdpartyisavailableduringcontractperformancetoprovideanindependentexpertevaluationoftheproblemtothedisputingparties.AlthoughthischaracteristicmakesthesetwoADRprocessesprocedurallyverysimilar,therearedistinguishingcharacteristicsbetweenthem.

Inaprojectneutralprocess,thecontractingpartiesselectaneutralindividualorcorporateteam(theneutral)toprovideanimpartialtechnicalevaluationoftheproblem.Theneutralisselectedpriortoanyproblemarising,andisavailabletoassistthepartiesuponrequest.Therequestforassistancecanbeunilateralormutualasagreedbytheparties.Further,theneutralcanbeanindividualwithaspecifictechnicalskilloracorporateteamcomprisingmultipleexpertskillsnecessarytoevaluatetheproblem.Theevaluationcanbeeitheranoralorwritten,nonbindingexpertanalysisofthepositionsofthecontractingparties.Typically,theevaluationwilldescribethestrengthsandweaknessesofbothpositions.Sincetheevaluationis

nonbinding,thecontractingpartiesretaincontrolovertheoutcome.

Attimes,theprojectneutralprocesshasbeeninitiatedonlyafteraproblemdevelopsunderacontract.Inthisinstance,thedisputingpartiesareseekinganexpertanalysisofanexistingproblemratherthanaddressingthemastheyariseduringcontractperformance.

135AdjudicativeMethods

ASummaryJuryTrial

Insomestatecourts,therulesofcivilprocedurepermittheuseofasummaryjurytrial.Itisusuallyscheduledtostartafterdiscoveryhasbeencompleted,andprovidestheparties'lawyersthebestchancetosummarilypresentevidenceasitwouldbepresentedatanactualtrial.Duringthesummaryjurytrial,thelitigatingpartiesareofferedtheopportunitybythecourttomakeanabbreviatedpresentationtoajuryandreceiveanonbindingdecisiononthemeritsofthecase.Thistechniqueusuallyisconductedjustpriortothetrial,oftenasthecourt'slastattempttoassistthelitigantsinreachingsettlement.

Thepurposeofthesummaryjurytrialistohaveallthelitigantshearthereactionofajurytotheparties'argumentsandpositions.Thismeansthatthepartiesandtheirlawyersshouldbepresenttohearthejury'sreaction.

Atapretrialconference,thetrialjudgemaysuggestasummaryjurytrialtothelitigants.Iftheyagree,thetrialjudgeworkswiththemtoschedulethehearingandestablishjuryselectionandtheproceduresforthetrial.Also,thetrialjudgeshoulddiscusswhetheranewjudgewillbeassignedtopresideatthesummaryjurytrialorwhetherthetrialjudgewillcontinuetopresidesubjecttorecusal,shouldthecasenotbesettled.

Asthenamesuggests,thesummaryjurytrialprovidesforabbreviatedpresentationsbylawyerstoajury.Thepresentationsconsistofashortopeningstatement,summariesofwitnesstestimony,expertreports,anddocumentsthatwouldbeadmissibleattrial.Normally,theproceduresdonotpermitobjections,andcross-examinationislimited

ordoesnotoccur.

Oncethelawyershavecompletedtheirpresentationsandthejudgehasinstructedthejuryonthelaw,thejurymeetsprivatelytodeliberate.Thejuryisoftengivenalimitedamountoftimetoreachitsdecision.Whenadecisionisreached,thelitigantsareinformedinpersonoftheresults.Also.inmostinstances,thelitigantscantalkwiththejurymembersabouthowtheyreachedtheirdecision.

Mostsummaryjurytrialsareconcludedwithinasingleday.Negotiationsimmediatelyfollowandarealsocompletedwithina

shorttimeperiod.Thebenefitofasummaryjurytrialisthatthelitigantsgetagoodassessmentoftheirlikelihoodofsuccessshouldthedisputegotocourtforabindingdecision.Unfortunately,however,thistechniqueislateinthelitigationprocessandthelitigantshavealreadyinvestedconsiderableresourcesinpreparingfortrial.

BFederalBoardsofContractAppeals

TheBoardsofContractAppeals(boards)beganofferingdisputingpartiestheoptionofusingADRinthelate1980s.AlthoughtheparticularADRmethodsavailabletothepartiesvaryslightlyfromboardtoboard,themostprevalentADRproceduresusedbyboardsarethesettlementjudge,themini-trial,andthesummarytrialwithbindingdecision.(SeeFigure133forADRoptionsusedbytheboards.)

Typically,theboardssetforththeavailableADRmethodsinawrittennoticetotheparties.SincetheArmedServicesBoardofContractAppeals(ASBCA)offersboththesettlementjudgeandmini-trialaswellasotherADRproceduresinitsNoticeRegardingAlternativeMethodsofDisputeResolution,theASBCAnoticeprovisionswillbeusedasexamples.

Initsnotice,theASBCAexpresslystatesthattheuseofADRisvoluntaryandconsensual.ThenoticefurtherprovidesthatbothpartiesandtheASBCAmustagreetotheuseofanyADRmethods.

1.SettlementJudge2.Mini-Trial3.SummaryTrialwithBindingDecision4.Other

Figure133FederalBoardsofContractAppealsADROptions

ThefirstADRmethoddescribedintheASBCAnoticeisthesettlementjudge.Thisprocedureisnonbindingandusesanadministrativejudgeinamediation-typeformattofacilitateinformalsettlementdiscussions.

Thesettlementjudgeprovisionprovides:

Asettlementjudgeisanadministrativejudgeorhearingexaminerwhowillnothearorhaveanyformalorinformaldecision-makingauthorityintheappeal,andwhoisappointedforthepurposeoffacilitatingsettlement.Inmanycircumstances,settlementcanbefosteredbyfrank,in-depthdiscussionofthestrengthsandweaknessesofeachparty'spositionwiththesettlementjudge.Theagendaformeetingswiththesettlementjudgewillbeflexibletoaccommodatetherequirementsoftheindividualappeal.Tofurtherthesettlementeffort,thesettlementjudgemaymeetwiththepartieseitherjointlyorindividually.Settlementjudge'srecommendationsarenotbindingontheparties.

Thesettlementjudgeprocessispopular,anditsinformalityprovidesthemostflexibilitytothepartiesandadministrativejudge.Thismethodincorporatescharacteristicsofmediation,negotiations,andnonbindingarbitration.Often,ifthepartieswiththeassistanceofthesettlementjudgearenotableto"mediate"theresolutionofthedispute,thesettlementjudgewillevaluatethestrengthsandweaknessesofeachpositionforbothparties,allowingthepartiestofurthernegotiateorsubmitaclaimtotheboardforfinalresolution.

ThenextADRmethodusedbyASBCAisthemini-trial.Inaboardmini-trial,thepartiespresenttheirpositionstoapanelconsistingofarepresentativeforeachpartyandtheadministrativejudge,whoactsasaneutraladvisor.Therepresentatives,referredtoas"principals,"havefullauthoritytosettlethedispute.Afterthepresentationtothepanel,theprincipalsmeetbythemselvestoengageinnonbindingsettlementnegotiations.Atthediscretionoftheparties,theadministrativejudgemayparticipateinthesettlementdiscussionsandprovidean

evaluationofthestrengthsandweaknessesofeachparty'sposition.TheASBCAmini-trialprovisionprovides:

Themini-trialisahighlyflexible,expeditedbutstructured,procedurewhereeachpartypresentsanabbreviatedversionofitspositiontoprincipalsofthepartieswhohavefullcontractualauthority

toconcludeasettlementandtoaBoard-appointedneutraladvisor.Thepartiesdeterminetheformofpresentationwithoutregardtocustomaryjudicialproceedingsandrulesofevidence.Principalsandtheneutraladvisorparticipateduringthepresentationofevidenceasprovidedintheiradvanceagreementonprocedure.Uponconclusionofthesepresentations,settlementnegotiationsareconducted.Theneutraladvisormayassistthepartiesinnegotiatingasettlement.Theproceduresforeachmini-trialwillbedesignedtomeettheneedsoftheindividualappeal.Neutraladvisors'recommendationsarenotbindingontheparties.

Inamini-trialthepartiescanstructurethepresentationofevidenceinanymannerdesired,andtheycansettimelimitsfortheindividualpresentationsaswellasfortheentireprocess.ThisADRmethodcanbemoretime-consumingthanthesettlementjudgemethod.Inpractice,ithasbeenusedformorecomplexcontractappeals.

AuniqueADRmethodofferedbytheASBCAandseveralotherboardsisthe"summarytrialwithbindingdecision."Thisisabindingprocedurethatprovidesforanexpeditedhearingoftheappealbeforeonejudgewhorendersabenchdecision.TousethisADRmethod,thepartieshavetoagreetowaiveanyrighttoappealtheadministrativejudge'sdecision.TheASBCAprovisionprovides:

Asummarytrialwithbindingdecisionisaprocedurewherebytheschedulingoftheappealisexpeditedandthepartiestrytheirappealinformallybeforeanadministrativejudgeorpanelofjudges.Asummary"bench"decisionwillgenerallybeissueduponconclusionofthetrialorasummarywrittendecisionwillbeissuednolaterthantendaysfollowingthelaterofconclusionofthetrialorreceiptofatrialtranscript.Thepartiesmustagreethatalldecisions,rulings,andordersbytheBoardunderthismethodshallbefinal,conclusive,notappealable,andmaynotbesetaside,exceptforfraud.Allsuchdecisions,rulings,andorderswillhavenoprecedentialvalue.Thelengthoftrialandtheextenttowhichschedulingoftheappealisexpeditedwillbetailoredtotheneedsofeachparticularappeal.Pretrial,trial,andpost-trialproceduresandrulesapplicabletoappealsgenerallywillbemodifiedoreliminatedtoexpediteresolutionof

theappeal.

Thesummarytrialwithbindingdecisionisverysimilartobindingarbitrationwiththeadministrativejudgefunctioningasthearbi-

trator.ThisADRmethodshouldbepopularwithcontractorswhowantanexpeditedthird-partybindingdecision.

ThelastADRprovisionintheASBCAnoticeisacatch-all.Itisreferredtoas"otheragreedmethods"andpermitsthepartiestofashionothermutuallyacceptableADRmethods.Thisprovisionprovides:

ThepartiesandtheBoardmayagreeuponotherinformalmethodswhicharestructuredandtailoredtosuittherequirementsoftheindividualappeal.

ThisprovisionrecognizesthatADRencompassesotherthird-partymethodsorcombinationsofmethodsthatthepartiesmaywanttousetoassistinthefacilitationoftheresolutionoftheiruniquedispute.

CTheU.S.CourtofFederalClaims

WhenacontractclaimispendingbeforetheU.S.CourtofFederalClaims,ADRisanoptionforthelitigatingparties.InAmendedGeneralOrder#13,theCourtprovidesfortheADRprocessesofmini-trial,settlementjudge,andthird-partyneutrals.(SeeFigure134.)Themini-trialandsettlementjudgetechniquesarestructuredsimilarlytotheBoardofContractAppealstechnique,exceptthatajudgefromtheCourtofFederalClaimsisusedastheneutralthird-party.Thethird-partyneutraltechniquepermitsthecourttoappointaneutrallawyertoadjudicatefortheproceeding.

1.SettlementJudge2.Mini-Trial3.Third-PartyNeutral

Figure134U.S.CourtofFederalClaimsADROptions

DSpecialMaster

Inallfederalandsomestatecourts,atrialjudgemayappointaspecialmaster.Thescopeofthespecialmaster'sauthorityisgrantedbythejudgeand,inmostjurisdictions,thepartiesmustconsentinadvancetothespecialmasterhearingtheissues(orestablishingthefactsofthecase).Thefindingsofthespecialmasterareturnedovertothetrialjudgeandrelieduponbythecourtinfurtherproceedingswhereresolutionofthecaseisnotwithinthespecialmaster'sauthorityand/orwhenthepartiesdonototherwisereachanagreementvoluntarily.

EArbitration

Arbitration,alongwithmediation,isoneofthetwomostwell-knownandwidelyusedtechniquesontheADRcontinuum.Intheprivatesector,arbitrationhasbeenusedextensivelyforyearstoresolvecontractdisputesamongowners,designers,contractors,andsubcontractors.Contractdisputesinvolvingthefederalgovernment,however,havenotbeensubjecttoarbitrationuntiltheAdministrativeDisputeResolutionActof1996,whichauthorizedtheuseofbindingarbitration.(Althoughtheactdoesauthorizebindingarbitration,itputsspecificlimitationsonitsuse.)

Inarbitration,thecontractingpartiessubmittheirdisputetoathird-partyprivatejudge,commonlyreferredtoasanarbitrator,forabindingdecision.Thearbitrator'sabilitytorenderabindingdecisionisthemostimportantcharacteristicthatdistinguishesarbitrationfromotherformsofADR.Infact,anarbitrationdecisioncanbeconsideredmorebindingthanajudicialdecisionbecausethereisnoappellatereviewofthedecision,exceptforverylimitedreasons.Thearbitrator'sbindingdecisionisreferredtoasanarbitrationaward.

Thearbitrationprocessistypicallyaccomplishedinthreeparts:thepre-hearingphase,thearbitrationhearing,andthearbitrationaward.Althoughthearbitrationprocessissimilarfromstatetostate,inmanyjurisdictionstherearearbitrationstatutesthatgovernproceduralaspectsoftheprocess.

Duringthepre-hearingphase,thearbitratorisselected,discoverycompleted,andtheproceduresforpresentingthecaseathearingareadopted.Oneofthelargestprivatearbitrationservices,theAmericanArbitrationAssociation(AAA)providesitsownarbitrationrules.WhenAAAisspecifiedasarbitratorintheparties'contractorinaseparatewrittenarbitrationagreementsignedbytheparties,itsrulesapply.PartiesusingprivatearbitratorsmayadoptFederalRulesofCivilProcedureorEvidence,orAAAdiscoveryrules.

Atthearbitrationhearing,theparties'agreementusuallyprovidesthatthearbitratorhasfullauthoritytoconductthehearinginaccordancewiththethepartiesselectedarbitrationrules.Additionally,anythingthatisnotaddressedspecificallybytherulesisresolvedatthediscretionofthearbitrator.Thearbitrationhearingisanadversarialproceedingwiththearbitratoractingasthejudgeandjury.

Afterthelawyerspresenttheevidence,thearbitratordecidesthecaseandmakesanawardinwriting.Theawardmayormaynotarticulatedetailedfindingsoffact.Often,theawardhasashortsummaryofthefacts,identifiestheprevailingparty,andstatesthenatureoftheaward.Forexample,amonetaryawardofdamagesmaybegranted,orequitablerelief,suchasaspecifictaskofperformance,canbeordered.

Inmoststatesandinfederalagencieswherearbitrationispermitted,theawardisbindingandsubjecttoextremelylimitedjudicialreview.Courtsarereluctanttosetasideanarbitrationawardunlessthearbitrationagreementexpresslyreservesjudicialreviewforcertainproblemswiththeproceduresortheaward.Therefore,partiesshouldbecarefulinprovidingforjudicialreviewbecausetheymaycreateamorenonbindingarbitrationprocedurethantheyintended.

Besidessettingasideanarbitrationawardbasedonthearbitrationagreement,somecourtswillsetasideanawardwhenthereisevidence

ofclericalerror,arbitratorbias(usuallyintheformofapre-existingundisclosedrelationshipwithoneparty),fraud,and/orfailureofthearbitratortocomplywithproceduralrulesthatprecludefullpresentationofevidence.Note,however,thatreviewonthesubstantivemeritsisseldompermittedorundertakenbystateorfederalcourts.

136ADRandPartnering

AlthoughpartneringandADRaretwodistinctconcepts,theycanbeusedtogetheraspositivemanagementmethodologiestobuildsuccessfortheconstructionteam.Partneringcreatesanatmosphereforjointproblem-solvinganddisputeavoidance.Assuch,mostproblemsandissuesshouldberesolvedquicklybetweenthepartiesatthelowestlevel.Buteveninthebestpartneringrelationships,someproblemswillbeunresolvedanddisagreementswillsurface.Whenthesedisagreementsoccur,ADRoffersacontinuumoftechniquestoresolvethemefficientlyandeffectivelywithoutresortingtolitigationandtheadversarialenvironmentitcancreate.

Chapter14AlternativeDisputeResolutionSelectionProcessonPartneredProjects141HelpinDecidingWhentoUseAlternativeDisputeResolution(ADR)142TheADRQuestionnaire143ComputingtheADRQuestionnaireScore144InterpretingtheADRQuestionnaireScore

141HelpinDecidingWhentoUseAlternativeDisputeResolution(ADR)

·''WhenisaclaimripeforADR?"

·"IsittherighttimetouseADR?"

·"ThisclaimmightnotberightforADR."

·"ADRisiteverappropriate?"

Theabovequestionsarefrequentlyaskedbycontractors,contractingofficers,designers,projectmanagers,andlawyerswhoareconfrontedwithunresolvedcontractclaims.Unfortunately,theanswersreceivedareoftenvagueandprovidelittleornoguidance.Toofrequently,theresultistodeferthedecisiontouseADR,andanopportunitytoresolveaclaimislostorsignificantlydelayedwhilelitigationcostsaccrue.

Wherecanmanagersandlawyerslookforhelpandadvice?Infederalcontractdisputes,theAdministrativeDisputesResolution

Actof19961providessomeguidanceinevaluatingaclaimforADR.Theguidance,however,islimited;itsprimaryfocusisonwhennottouseADR.Theactlistssixexampleswhenagovernmentagencyshouldconsidernotusingadisputeresolutionproceeding:

·needforaprecedent;

·involvesasignificantquestionofgovernmentpolicy;

·needconsistentresultsamongindividualdecisions;

·themattersignificantlyaffectsnon-litigatingparties;

·requirementforafullpublicrecord;and,

·theagencymustretaincontinuingjurisdictionoverthematter.

FederalagencypolicystatementsareadditionalpotentialsourcesofassistanceindeterminingwhetherADRisappropriate.Generally,thesestatementsaregoodforprovidingseniormanagementsupportforADR,buttheydonotprovidemuchadditionalguidance.Almostuniformly,agencypolicystatementsencouragetheuseofADRin"appropriate"cases.Unfortunately,thisbegsthequestion,withnoelaborationordefinitionoftheword"appropriate."

Partiesandlawyerscanusethequestionnaireinthischapterasatooltohelpprovidedirectioninreachinganansweronthisdifficultissue.ThequestionnairerecognizesthatthereareobjectiveandsubjectivematterstobeconsideredwhenevaluatingacontractclaimforADR.Accordingly,partiesevaluatingtheclaimusingthesamequestionnairemayreachdifferentconclusionsbecausetheyperceivefactsandissuesdifferently.Thisinformation,however,mayassistthepartiesinopeningadiscussionaboutADR,includingthetimetouseitandtheresolutionprocesstobeselected.

TheADRQuestionnaire

Completeorrespondtothefollowingstatementsbyselectingtheanswerundereachsentenceorphrasethatbestreflectsyourfeelingsatthistime.Circleyourselection.Whenyouhavecompleted

1Pub.L.104320,110Stat.3870(Oct.19,1996).

theADRquestionnaire,section143willexplainhowtoscoreyourresponses.

1.Aprecedentisneeded.a.Nob.Notreallyc.Yes

2.Theissueindisputeis:a.factualb.factualandlegalc.legal

3.Theclaimisfor:a.monetarydamagesb.entitlementc.entitlementandmonetarydamages

4.Futurerelationshipbetweenthecontractingpartiesis:a.importantb.somewhatimportantc.notimportant

5.Thepresentattitudeoftheothernegotiatorscanbebestdescribedas:a.cooperativeb.positionalc.hostile

6.Adecisionontheclaimisneeded:a.quicklyb.withinthenearfuturec.innohurry

7.Negotiationsbetweenthepartieshave:

a.identifiedfactsandissuesb.reacheddisagreementonfactandissuesc.notbeenconducted

8.Transactioncostsforlitigationareexpectedtobe:a.highb.averagec.low

9.Discoveryinthiscaseis:a.completedb.ongoingc.notstarted

10.Disruptiontootherworkisanticipatedtobe:a.substantialb.annoyingc.minimal

11.Publicityaboutthecase:a.shouldbeavoidedb.isnotaconcernc.mustoccurbecauseapublichearingisorwillberequired

12.Thecredibilityofwitnesses:a.isnotaconcernb.shouldnotbeagreatconcernc.isasignificantconcern

13.Thetechnicalissuesinvolvedare:a.highlycomplexb.simplec.notknown

14.Additionalsupportforthedecisionisneededtoreachsettlement.a.Yesb.Itwouldbehelpful.c.No

15.Managementinterestinresolutionis:a.highb.lowornonec.topunishtheotherparty

16.Management'sknowledgeofdisputeresolutionoptionscanbedescribedas:a.highb.havingageneralunderstandingc.none

17.Theoutcomeofthiscaseis:a.extremelyimportantb.oflimitedconcernc.notimportant

18.Theclaimconcerns:a.knowledgeandinformationdisagreementsb.credibilityandreliabilityissuesc.theorganization'sreputation

19.Thenegotiationsare:a.goingnowhereb.proceedingslowlyc.movingforward

20.Doyouwanttoresolvetheclaimnow?a.Yesb.Unsurec.No

143ComputingtheADRQuestionnaireScore

AfteryouhavecompletedtheADRquestionnaire,youcancomputeyourscorebyassigningthefollowingpointvaluetoeachofthetwentyquestions.ThenyouneedtoaddthepointvaluesforallquestionstofindyourfinalscoreforADRevaluation.

Points:a=1pointb=2pointsc=3points

Whenyouhavecomputedyourfinalscore,youarereadytoevaluatetheclaimforADR.Thefollowingdecision-makingchartisprovided

toassistyou.

DecisionMaking:

2030points:

AbsolutelyreadyforADR.

3140points:

SeriouslyconsiderADR.

4150points:

Re-evaluateADRatlaterdate.

5160points:

NoADR.

144InterpretingtheADRQuestionnaireScore

KeepinmindthatthescoreyoureceivedisyourpersonalscoreforevaluatingtheclaimforADR.AnotherpersonusingthisADRquestionnaireforthesameclaimmaygetadifferentfinalscore.ThisisbecausetheADRquestionnaireconsistsofnotonlyobjectivemeasures,butalsosubjectiveopinions.Remember,theADRquestionnaireisbutasingletooltohelpevaluateclaimsforADR.Onlybyweighingtheuniquecontractualandfactualaspectsofeachcaseshouldafinaldecisioninthismatterbereached.

Chapter15LawyerParticipationinPartnering151RaisingtheIssueaboutLawyersandPartnering152LawyersOutsidethePartneringTeam153PuttingLawyersonthePartneringTeam154In-HouseCounselorOutsideCounsel155LawyersasPassiveParticipants156LawyersasActiveParticipants157LawyersasFacilitators158TheLawyer'sProfessionalResponsibilitiesinPartnering

151RaisingtheIssueaboutLawyersandPartnering

Inpartnering,afrequentlystatedgoalistheeliminationoflitigation.Thisgoalissometimesinterpretedtomeantheexclusionoflawyersfromthepartneringprocess.Partneringparticipantsmayviewlitigationandlawyersasthesameproblem,andtoeliminateone,theothermustbeexcluded.Ontheotherhand,manylawyerswanttobeincludedinpartneringandbelievethatwhentheyparticipate,theyaddvaluetothepartneringprocessandcanbettersupporttheirclientsinachievingteampartneringgoals.Theissueofwhethertoincludelawyersinpartneringraisessev-

eralquestionsthatshouldbeaddressedbeforetheinitialpartneringworkshop.(SeeFigure151.)

Attheplanningsessionfortheinitialpartneringworkshop,thesubjectofwhethertoincludelawyerswilloftensurface.Thequestiontobeexaminedbythepartneringprocessplannersshouldbewhetherthereisaroleforlawyersonthepartneringteam.Theanswerwilldetermineiflawyersattendthepartneringworkshop;itwillalsodictatethepaththepartneringteamwillfollowindealingwithlawyers,sincelawyersareinvolvedatsomepointinalmosteveryproject.

152LawyersOutsidethePartneringTeam

Iftheanswerbythepartneringworkshopplannersisnottohavelawyersparticipateinpartnering,thenlawyerswillnotbepresentattheinitialpartneringworkshop.Beingexcludedfromtheworkshop,lawyerswillnotbepartofthepartneringteamandtheywillhavenopersonalstakeinpreservingthepartneringrelationship.

Evenaspartneringoutsiders,however,lawyerswillhaveaninfluenceonestablishingthepartneringprocessfortheteamandcansignificantlyinfluenceteammemberrelationships.Oftenpartieswillasklawyersabouttherisksofpartneringandtheselectionofafacilitator.Theymaydiscussanticipatedcontractandperformanceissuesthatcouldberaisedattheworkshopforactionplandevelopment.Typically,lawyersalsowillcontinuetoadvisetheir

1.Shouldstakeholders'lawyersbeincludedasparticipantsonthepartneringteam?2.Shouldin-houseoroutsidecounselbeinvolvedinpartneringsessions?3.Whatroleshouldlawyerstakeinthepartneringworkshop?

Figure151FrequentlyAskedQuestionsaboutLawyersandPartnering

individualclientsastheiradvocateinareassuchasdraftingand/ornegotiatingcontractualdocuments,interpretingcontractprovisions,developingpositionsoncontractdisputes,andpreparingclaimsforresolution.Whennotactivelyinvolvedinpartnering,itiseasyforthisadvicetobeprovidedbyalawyerwithoutadequateconcernforhowitaffectsthepartneringteam.Bothlawyersandtheirparticipantclientsshouldkeepthisinmind.Forsomepartiesandtheirlawyers,thismaybeexactlywhattheydesiresothattheymaintainasenseofperspectiveaboutlegalrightsandremedies.Ataminimum,however,onapartneredprojectwherethelawyerisnotateammember,theclientshouldsharethepartneringcharterandactionplansaftertheyarecreated.Theclientshouldaskhisorherlawyertokeepactivitiesandinteractionswithotherteammembersconsistentwiththegoalsandvisionarticulatedinthesematerials.Ifthelawyerbelievesthismaycompromisetheclient'slegalposition,itshouldberaisedimmediatelybetweenthem.

153PuttingLawyersonthePartneringTeam

Insomeprojects,lawyersareincludedonthepartneringteam.Thereasonsmostoftengivenforinclusionare:

·partneringneedsteammembersfromallprincipalelementsofanorganizationinvolvedinthecontract;

·lawyerattendanceattheworkshopwillprovideaclearunderstandingoftheparties'contractualrelationshipandthealready-agreedcontractualmeasuresofsuccessforthepartneringteam;

·asteammembers,lawyershaveacommitmenttosupportpartneringgoalsandreactaccordinglyinadvisingtheirclientsthroughouttheremainderoftheproject;

·lawyerscanhaveavaluableparticipatoryroleattheworkshopinseveralareas,particularlyindisputeavoidanceandADRplanning;and

·partneringchangesthenatureofthelawyer'srelationshipwiththeclientandthepartneringteamfrom"advocate"to"advisor."

Thosewhoacceptmostoftheabovereasonsneedtoseriouslyconsiderinvolvinglawyersonthepartneringteam.Thisshouldbedoneduringtheplanningsessionfortheinitialworkshopaspartoftheselectionprocessforworkshopparticipants.

Whenlawyersareincludedonthepartneringteam,stakeholderswillhavetomaketwoadditionaldecisions.First,theyneedtodecidewhethertousein-houseoroutsidecounsel.(Ofcourse,ifthereisnoin-housecounsel,thatdecisioniseasy.)Second,theyneedtoestablishtheroleforthelawyeronthepartneringteam.Thelawyer'srolemaybepassive,asanobserverattheworkshop,whichisnotrecommended;oritmaybeactive,asaworkshopparticipant.Whatevertherole,however,thedesiredcommunicationandrelationshipbetweenthelawyerandotherteammembersshouldbediscussedcandidlybeforethelawyerattends.Thelawyerwillbecalledupontoparticipatewiththeteaminbuildingconsensusaboutteamgoalsandactionplans.Thelawyercannotactonlyasanadvocateforaclientinthisprocessortherewillbeachillingeffectontheworkshop.Further,thelawyer'sroleinthepartneringprocessmustbeundertakensoasnottocreateaconflictinhisorherlegalandethicalresponsibilitiestotheclient.Thelawyerandclientshouldmeetbeforetheworkshopanddiscussthissubjectfully,toconsiderandresolvetheseimportantmatters.

154In-HouseCounselorOutsideCounsel

Thedecisiontoinvitein-houseoroutsidecounseltothepartneringworkshopisnotalwayseasy.Someselectanin-housecounselbecauseofabeliefthatthein-housecounselisinabetterpositiontounderstandmanagement'sinterestinbuildingasuccessfulpartneringrelationship.In-housecounseloftenhasamoredetailedknowledgeofcorporateneedsanddesires.Othersbelievethatoutsidecounsel

shouldparticipatebecauseanoutsidelawyerwillprovideamorerealisticassessmentoftherisksinvolvedinpartnering.Inreachingadecision,eachpartyshoulddecidewhattheyneedandwhichlegalarrangementcanbestfulfillthoseneedsonaproject-by-projectbasis.Ofcourse,itmaybeappropriateonaparticularprojecttohavebothin-houseandoutsidecounselactasparticipants.

155LawyersasPassiveParticipants

Atthepartneringworkshop,lawyerscantakeeitherapassiveoranactiverole.Thisdecisionastohowlawyerswillinteractwithotherpartneringparticipantsshouldbemadebeforetheinitialworkshopmeetingbytheplanningteaminordertoremoveanymisunderstandingabouttheinvolvementoflawyerslaterintheproject.

Inapassiverole,thelawyerisatthepartneringworkshoptoobserve,listen,andlearnfromtheteammembers,andtoprovideadvicesolelytothatlawyer'sownclient.Evenwithminimal,passiveparticipation,allpartiesonthepartneringteam,includingthelawyers,canbenefitfromthepresenceoflawyersatworkshopsessions.Afterpersonallyexperiencingthesynergisticdynamicofthepartneringteam,lawyersshouldbebetterpreparedtoadvisetheirclientsonachievingpartneringgoalsinacooperativecontractualsetting,ratherthanpromotingacounterproductiveadversarialandlitigiousenvironment.Lawyerswillalsobefullyawareofthetermsofactionplansfordisputeavoidanceandcanremindtheirclientsoftheseprocedureswhenissuesarisesothattheneedtoresorttoformaldisputeresolutionmechanismsislessened.

156LawyersasActiveParticipants

Whenlawyerstakeanactiveroleinthepartneringworkshop,theyareusuallyfullparticipantsintheprocess.Thisdoesnotmean,however,thatlawyersshouldbepermittedtodominatetheworkshoporbeadvocatesforone-sidedinterestsoftheirclients.Instead,lawyersaretheretoparticipateasequalteammembersandshouldonlyraiseproblemsthatneedtobeconsideredbecausetheyaffectthepartnering

relationship.Theseproblemsmayfocus,forexample,onkeepingthepartneringcharterfromturningintoacontractamendmentattheworkshop,orcreatinganactionplanfordisputeavoidancethatisconsistentwithcontractdisputeresolutionprocedures.

Asactiveworkshopparticipants,lawyerscanmakespecificcontributionssuchas:

·reinforcingthebenefitsofchangefromanadversarialrelationshipandprovidingsupportforthatchange;

·providingproblem-solvingskillstoassistinactionplandevelopment;

·recognizingcontractrequirementswhenproblem-solving;

·developingcommunicationmechanismsandexpeditednegotiationprocedures;

·identifyingdisputeavoidancetechniquesthattheteammaywanttoadopttofacilitatefuturenegotiations;

·explainingAlternativeDisputeResolution(ADR)alternativestothegroup;

·respondingtoethicsquestionsabouttherelationship;

·avoidinglaterlegalproblemsandlitigation;and

·workingonadraftchartertokeep''legalese"outofit.

Thesearereasonsmostoftenraisedbylawyerswhowouldliketotakeanactiveroleatthepartneringworkshop.Theselawyersandtheirclientshaverecognizedabenefittothepartneringprocesswhenlawyersareparticipatingteammemberswithincreasedopportunitiestomakevaluablecontributionstothesuccessoftherelationship.

157LawyersasFacilitators

Thereisnoreasonwhyalawyercannotbeafacilitatoratapartneringworkshoporfollow-upsessions.Ofcourse,thelawyermustdiscloseanattorney-clientrelationshipwithanyparticipatingpartyontheprojectandavoidrealorapparentconflictofinterestproblems.Also,thelawyermusthavethequalificationsofaskilledfacilitator.These

qualificationsarediscussedinChapter8,Section83(pages9396).

Whenalawyerentersintoacontractwiththekeyparticipantsforfacilitationservices,theagreementmustclearlystatethelawyer'sroleintheprocessandtheresponsibilitiestotheparticipants.Theremustbenoconfusionorambiguityaboutthisrelationship.Further,thelawyershouldmakeafulldisclosureofanyattorney-clientrelationshipsonotherlegalmattersinvolvingthepartneringparticipants.Intheeventthelawyerdoeshavean

attorney-clientrelationshipwithoneormoreoftheparticipantsintheworkshop,thelawyershouldgetawrittenwaiverfromallworkshopparticipants.

158TheLawyer'sProfessionalResponsibilitiesinPartnering

Insomerespects,alawyer'srolewithregardtopartneringisnodifferentfromtheroleundertakenwhenalawyernegotiatesasettlementofaclaimbeforelitigationisfiled.Inbothcontexts,thelawyerisstrivingtoactintheclient'sbestintereststoavoidlitigation,toresolvedisputesinanexpeditiousandcost-efficientmanner,andtopreservethebusinessrelationshipbetweenthedisputingparties.Oncloserexamination,however,thepartneringprocessandthelawyer'spotentialroleraiseseveralsubtle,unique,andsignificantethicalissues.

IntheUnitedStates,theAmericanBarAssociation'sModelRulesofProfessionalConducthavebeenadopted(withsomemodifications)byamajorityofthestatesasthegoverningstandardforlawyers'ethicalconductwithintheirjurisdictions.Someprovisionsareexaminedhereregardingthelawyer'sethicalobligationswhenparticipatinginpartnering.Note,however,thatineachinstancewhereconflictsorotherissuesariseconcerningpartneringonaspecificproject,lawyersshouldcarefullycheckforspecificadditionalordifferingethicscode/rulerequirementsofthestateinwhichtheyarelicensedtopractice.

ALawyer'sDuties

AsanofficerofthelegalsystemaccordingtotheABA'sModelRules,alawyeristousethe"law'sproceduresonlyforlegitimatepurposesandnottoharassorintimidateothers."1Likewise,asapubliccitizen,

thelawyer"shouldseekimprovementofthelaw,theadministrationofjustice,andthequalityofservicerenderedbythelegalprofession."Theseoverridingmandatesconcerning

1ABAModelRules,Preamble,at1.

lawyerconductarecertainlyinharmonywiththepreceptsofpartnering.Challengingethicalissuesareraised,however,basedonthelawyer'sroleasclientrepresentative,theresolutionislessclear-cut.ThePreamblesuccinctlysummarizesthelawyer'sdutieswhenrepresentingaclient:

Asarepresentativeofclients,alawyerperformsvariousfunctions.Asadvisor,alawyerprovidesaclientwithaninformedunderstandingoftheclient'slegalrightsandobligationsandexplainstheirpracticalimplications.Asadvocate,alawyerzealouslyassertstheclient'spositionundertherulesoftheadversarysystem.Asnegotiator,alawyerseeksaresultadvantageoustotheclientbutconsistentwithrequirementsofhonestdealingwithothers.Asintermediarybetweenclients,alawyerseekstoreconciletheirdivergentinterestsasanadvisoryand,toalimitedextent,asaspokespersonforeachclient.Alawyeractsasevaluatorbyexaminingaclient'slegalaffairsandreportingaboutthemtotheclientortoothers."(NOTE:Emphasisadded.)

Participationinanyaspectofthepartneringprocessrequiresalawyertobalancetheseethicalresponsibilities.Keygoalsofpartneringaretoimprovethebusinessrelationshipbetweentheprojectparticipants,toeliminatedisputes,andtoachievemutualgoalsoftheteam.Yet,undertheModelRules,thelawyerisanadvocateandmust"zealously"assertaclient'sposition.Similarly,asanegotiator,thelawyeristoseekaresult"advantageous"totheclient.Isitpossibleforthelawyertocompetentlyrepresentaclientduringpartneringifthelawyermust"zealously"assertthatclient'sposition?Howcanheorsheseek"advantageous''resultsfortheclientwhileatthesametimefacilitatingandpreservingpartneringgoalsestablishedbythepartneringteam?Fortunately,asdiscussedbelow,theModelRulesprovideconsiderablelatitudeforalawyertosatisfytheseprofessionalresponsibilitieswhileeffectivelyandcompetentlyassistingaclientregardingpartnering.

BLawyer'sScopeofRepresentation/ConflictsofInterest

Forconstructionlawyerswhospecializeinlitigation,partneringposesapersonalandshortsighteddilemma:sinceanimportantgoalinpartneringistoeliminatelitigation,thelitigatorisfacedwithapotentialeconomicdisincentivewhenadvisingaclient

regardingpartnering.Fortunately,andmostcorrectly,theModelRulesprovideclearandunequivocaldirectiontothelawyeronthisissue.Figure152presentsModelRule1.2,whichindicatesthatalawyermustfollowaclient'slawfuldirectivesconcerningthepurposeofthelawyer'srepresentation.

Becauseofthelawyer'sownpersonalinterests,thereisaprofessionalobligationtofullyadviseaclientontheadvantagesanddisadvantagesofpartnering.Mostimportantly,thelawyermustalsoabidebytheclient'sdecisionregardingtheuseofpartneringinaproject.

Ifitisdecidedthatpartneringwillbeused,thelawyer"shallconsultwiththeclientastothemeans"bywhichthepartnering

(a)Alawyershallabidebyaclient'sdecisionsconcerningtheobjectivesofrepresentation,subjecttoparagraphs(c),(d)and(e),andshallconsultwiththeclientastothemeansbywhichtheyarepursued.Alawyershallabidebyaclient'sdecisionwhethertoacceptanofferofsettlementofamatter.(b)Alawyer'srepresentationofaclient,includingrepresentationbyappointment,doesnotconstituteanendorsementoftheclient'spolitical,economic,socialormoralvieworactivities.(c)Alawyermaylimittheobjectivesoftherepresentationoftheclientconsentsafterconsultation.(d)Alawyershallnotcounselaclienttoengage,orassistaclient,inconductthatthelawyerknowsiscriminalorfraudulent,butalawyermaydiscussthelegalconsequencesofanyproposedcourseofconductwithaclientandmaycounselorassistaclienttomakeagoodfaithefforttodeterminethevalidity,scope,meaningorapplicationtothelaw.(e)Whenalawyerknowsthataclientexpectsassistancenotpermittedbytherulesofprofessionalconductorotherlaw,thelawyershallconsultwiththeclientregardingtherelevantlimitationsonthelawyer'sconduct.(NOTE:Emphasisadded.)

Figure152Rule1.2ScopeofRepresentation

relationshipistobecreatedandmaintained.Obviously,oneissuethatwillneedtobeaddressedduringconsultationisthelawyer'sroleinthepartneringprocess.Forexample,ifthelawyeristobeanactiveparticipantinthepartneringworkshops,theclientmustrecognizethatthelawyer'straditionalrolesas"zealous"advocateandnegotiatorwillbetemperedbytheteamdecision-makingprocessusedinpartnering.Asasecondaryissue,theclientandlawyeralsoshoulddiscusswhetherthelawyer'sparticipationinpartneringwilladverselyaffectthelawyer'sabilitiestosettle,andperhapslitigate,claimsoutsideofthepartneringframework,aspartneringobviouslydoesnotguaranteethatthepartieswillbeabletoamicablyresolveallclaims.Anylawyerwhoisanactivepartneringparticipantshouldconsiderformallywithdrawingfromanylitigationinvolvingthepartneringteam.

Onceaclientisfullyadvisedanddesireslawyerparticipationinpartneringsessions,theremustbeaclearunderstandingamongallworkshopparticipantsastowhotheattendinglawyer(s)represent.Forexample,itisnotuncommonwhendesignersattendaworkshopwithoutcounsel,forthemtorelyontheowner'slawyerforguidancethroughoutthepartneringprocess.Similarly,subcontractorsmayrelyonthegeneralcontractor'slawyer.Itmustbeunderstood,however,thatunlessthereisajointrepresentationagreementexecutedbyeach"side,"thelawyersfortheowner,contractor,oranyotherpartyinvolvedintheprojectareprofessionallyboundtorepresentonlythepartythatretainsthem.Allpartneringparticipantsshouldbeadvisedthatalawyerdoesnotactascounseltoanyotherteamparticipant.

Sometimesthepartiesmayhaveajointrepresentationarrangement.Althoughthisisnotaviolationofethicsrules,itshouldbeexpresslyagreedanddisclosedtothepartneringparticipantsbeforetheworkshopbegins.Beforesuchanarrangementcanbeimplemented,however,thelawyermustobtainawrittenwaiverofconflictofinterest.Figure153providesrulesforconflict-of-interest.

Ataminimum,whendiscussingconflict-of-interestissues,thelawyershouldaddresswithallparticipantswhether1)anyprivatecommunicationswiththelawyerwouldbekeptconfidentialfromtheotherparties;2)thelawyerwillhaveanyrolewithregardtotheprojectoutsideofthepartneringframework(e.g.thelawyerwillcontinuetoserveasoneparty'scounselforothermatters);3)pay-

(a)Alawyershallnotrepresentaclientiftherepresentationofthatclientwillbedirectlyadversetoanotherclient,unless:

(1)thelawyerreasonablybelievestherepresentationwillnotadverselyaffecttherelationshipwiththeotherclient;and(2)eachclientconsentsafterconsultation.

(b)Alawyershallnotrepresentaclientiftherepresentationofthatclientmaybemateriallylimitedbythelawyer'sresponsibilitiestoanotherclientortoathirdperson,orbythelawyer'sowninterests,unless:

(1)thelawyerreasonablybelievestherepresentationwillnotbeadverselyaffected;and(2)theclientconsentsafterconsultation.Whenrepresentationofmultipleclientsinasinglematterisundertaken,theconsultationshallincludeexplanationoftheimplicationsofthecommonrepresentationandtheadvantagesandrisksinvolved.

(NOTE:Emphasisadded.)

Figure153Rule1.7ConflictofInterest:GeneralRule

mentofthelawyer'sfeestoattendpartneringsessionswillbesharedbyallparties;and4)thelawyerwillbedisqualifiedfromrepresentingoneoftheparties,shouldanydisputesariseamongthepartneringparticipantsthatcannotbeinformallyresolved.

Inregardtothelawyer'sobligationsifadisputearisesamongmultipleclients,ModelRule2.2(SeeFigure154)providesguidanceastothelawyer'sroleindisputeavoidance.

TheABACommentarywarnsthat"additionalcost,embarrassment,andrecrimination"mayresultifthelawyerdoesnotsuccessfullyactasintermediaryamongclients.Moreover,theCommentaryindicatesthat"insomesituationstheriskoffailureissogreatthatintermediationisplainlyimpossible."OneexamplenotedbytheCommentaryiswherethelawyercannotactimpartiallybetweenthe

commonlyrepresentedclients.Forexample,"alawyerwhohasrepresentedoneoftheclientsforalongperiodandinavarietyofmattersmighthavedifficultybeingimpartialbetweenthatclientandonetowhomthelawyerhasonlyrecently

(a)Alawyermayactasintermediarybetweenclientsif:(1)thelawyerconsultswitheachclientconcerningtheimplicationsofthecommonrepresentation,includingtheadvantagesandrisksinvolved,andtheeffectontheattorneyclientprivileges,andobtainseachclient'sconsenttothecommonrepresentation;(2)thelawyerreasonablebelievesthatthemattercanberesolvedontermscompatiblewiththeclient'sbestinterests,thateachclientwillbeabletomakeadequatelyinformeddecisionsinthematterandthatthereislittleriskofmaterialprejudicetotheinterestsofanyoftheclientsifthecontemplatedresolutionisunsuccessful;and(3)thelawyerreasonablybelievesthatthecommonrepresentationcanbeundertakenimpartiallyandwithoutimpropereffectonotherresponsibilitiesthelawyerhastoanyoftheclients.

(b)Whileactingasintermediary,thelawyershallconsultwitheachclientconcerningthedecisionstobemadeandtheconsiderationsrelevantinmakingthem,sothateachclientcanmakeadequatelyinformeddecisions.(c)Alawyershallwithdrawasintermediaryifanyoftheclientssorequests,orifanyoftheconditionsstatedinparagraph(a)isnolongersatisfied.Uponwithdrawal,thelawyershallnotcontinuetorepresentanyoftheclientsinthematterthatwasthesubjectoftheintermediation.

Figure154Rule2.2Intermediary

beenintroduced."Theseconsiderationsshouldbecandidlydiscussedpriortosecuringwrittenconflictwaiversandbeforethelawyer'sparticipationinpartneringactivitiesfortheproject.

CLawyer'sCommunicationsatPartneringWorkshops

Atthepartneringworkshops,participantsareencouragedtofreelyexchangeinformationtofostergoodcommunicationsamongtheparties.Ifitisdecidedthatthelawyersaretoattend

thepartneringworkshops,however,allparticipantsmustunderstandthelawyer'sethicalobligationtomaintainaclient'sconfidences.Rule1.6(SeeFigure155)oftheABAModelRulesprovidesguidelines.

InadditiontoModelRule1.6,allfiftystateshaverulesofevidencethatprovideasimilarprivilegeforconfidentialcommunicationsbetweenattorneyandclient.Beforeattendinganypartneringworkshops,therefore,aprudentlawyerwillconsultwithaclientastotheinformationthatthelawyerisauthorizedtodiscloseduringpartneringsessions.WhileModelRule1.6allowsthelawyertomake"disclosuresthatareimpliedlyauthorizedinordertocarryouttherepresentation,"thelawyershouldspecificallydiscussthisissuewiththeclient,ratherthanrelyingontheauthorizationinferredunderModelRule1.6.

Arelatedissueisthelawyer'sabilitytocommunicatewiththeotherpartiesatthepartneringworkshops.Twodifferentrulesapply,dependingonwhetherthelawyerknowsiftheotherpartiesarerepresentedbycounsel:ModelRule4.2andModelRule4.3.

(a)Alawyershallnotrevealinformationrelatingtorepresentationofaclientunlesstheclientconsentsafterconsultation,exceptfordisclosuresthatareimpliedlyauthorizedinordertocarryouttherepresentation,andexceptasstatedinparagraph(b).(b)Alawyermayrevealsuchinformationtotheextentthelawyerreasonablybelievesnecessary:

(1)topreventtheclientfromcommittingacriminalactthatthelawyerbelievesislikelytoresultinimminentdeathorsubstantialbodilyharm;or(2)toestablishaclaimordefenseonbehalfofthelawyerinacontroversybetweenthelawyerandtheclient,toestablishadefensetoacriminalchargeorcivilclaimagainstthelawyerbaseduponconductinwhichtheclientwasinvolved,ortorespondto

allegationsinanyproceedingconcerningthelawyer'srepresentationoftheclient.

Figure155Rule1.6ConfidentialityofInformation

UnderModelRule4.2(SeeFigure156),ifthelawyerknowsthattheotherpartiesarerepresentedbycounsel,thelawyercannotfreelytalktothosepartiesunless"opposing"counselisalsoattendingtheworkshopsorhasconsentedtotheexpartecommunications.Asapracticalmatter,formanyprojects,thelikelyeffectofModelRule4.2istocausean"either/or"situationfortheparticipationoflawyersinthepartneringworkshop.Eitheralllawyersforallorganizationsrepresentedatthepartneringsessionparticipateintheworkshopornoneofthelawyersareallowedtoattend.SinceModelRule4.2doesallowopposingcounseltoconsenttoexpartecommunicationsbetweenthatlawyer'sclientandotherlawyers,intheinstancewheresomelawyersarenotpresentforwhateverreason,thisconsentshouldbeobtainedinwritingbeforeparticipationinaworkshopoccurs.

Ifapartyisnotrepresentedbycounselbutstillelectstoattendthepartneringworkshops,ModelRule4.3(SeeFigure157)prohibitsthelawyersattheworkshopfromstatingorimplyingthattheyaredisinterestedinthemattersbeingdiscussedat

Inrepresentingaclient,alawyershallnotcommunicateaboutthesubjectoftherepresentationwithapartythelawyerknowstoberepresentedbyanotherlawyerinthematter,unlessthelawyerhastheconsentoftheotherlawyerorisauthorizedbylawtodoso.

Figure156Rule4.2CommunicationwithPersonRepresentedbyCounsel

Indealingonbehalfofaclientwithapersonwhoisnotrepresentedbycounsel,alawyershallnotstateorimplythatthelawyerisdisinterested.Whenthelawyerknowsorreasonableshouldknowthattheunrepresentedpersonmisunderstandsthelawyer'sroleinthematter,thelawyershallmakereasonableeffortstocorrectthemisunderstanding.

Figure157

Rule4.3DealingwithUnrepresentedPersons

theworkshops.Theirroleshouldbeexplainedduringtheinitialpartneringworkshopintroductionswhenactingonbehalfofasingleclient.Ifjointlyrepresentingpartoralloftheteam,inadditiontoidentifyingallclientsforwhomtheyact,limitsonthescopeofthatrepresentationshouldalsobeconfirmed.

DLawyerasWitness

Lawyersandtheirclientsmustrecognizethatnotallpartneringarrangementswillbesuccessful.Notwithstandingtheparties'goodfaitheffortsregardingpartneringduringaproject,thereisalwaysapossibilitythatsomeclaimswillnotbeamicablyresolved,whichcouldleadtothefilingoflitigationbetweenthepartneringparticipants.

Inthatevent,itisremotelypossiblethattheparties'statementsmadeduringthepartneringworkshopsmayberelevantasevidenceinformaldisputeresolutionproceedings.Keepinmindthattheworkshopisdesignedtoestablishrelationshipsandnottomodifythecontract.Whetherworkshopstatementswouldbeadmissibledependsonseveralfactors.Forexample,acourttypicallywouldreviewthecontractualtermsthatestablishthepartneringrelationshiptodeterminewhetherthepartiesintendedtheirstatementsmadeduringanypartneringworkshoptobeprivate,"offtherecord"discussions.Evenifitweretheparties'intenttokeeptheirpartneringcommunicationsinconfidence,however,itisnotclearthatacourtalwayswouldenforcetheparties'intent.Undertherulesofevidenceofmostjurisdictions,thegeneralruleisthatallrelevantevidenceisadmissibleattrial,unlesstheevidenceiscoveredbyawell-establishedprivilegeorthereisastrongpublicpolicyforexcludingsuchinformation.Oneexampleofthelatteristhataparty'scommunicationsmadetoanotherpartyinfurtheranceofattemptsto

settlethedisputearepriviledged.Thisisbecauseofaneedtohavefrankandopendiscussionofsettlementoptions.Therefore,ifacourtweretorulethatthepartneringworkshopsare,inessence,settlementnegotiations,theparty'sstatementsmadeduringtheworkshopswouldnotbeadmissibletoestablishthatparty'sliability.But,thisisnotverylikely.

Assuming,however,acourtwastorulethatcommunicationsmadeduringpartneringworkshopsareadmissibleevidence,the

lawyerisfacedwithadditionalethicalproblems.Namely,canthelawyertestifyattrialandstillserveastrialcounsel?Whathappensifthelawyer'stestimonyisinconsistentwiththeclient's(i.e.,thelawyerdoesnotcorroboratetheclient'stestimony)?

Asageneralrule,thetriallawyershouldnotbeoneofthewitnessesattrialwherethesamelawyerwillactasanadvocate;however,therearesignificantexceptions.ModelRule3.7providestheapplicablerule.(SeeFigure158.)

Ofsignificancehere,the"substantialhardship"exceptionundersubparagraph(3)isthemostrelevantexception.Whether"substantialhardship"existsinaparticularcaseisacomplicatedfactualissue.UndertheABACommentaryforModelRule3.7,onefactorthatshouldbeconsideredwhendeterminingwhether"substantialhardship''existsiswhether"oneorbothpartiescouldreasonablyforeseethatthelawyerwouldbeawitness."Arguably,anyonewhoattendsapartneringworkshopcouldbecalledasawitnessattrialtodiscussstatementsmadeduringtheworkshops.However,thisshouldbeextremelyrare.

Ifthelawyerdoestestifyattrial,anotherissueisraised.Namely,ModelRule1.7(Figure153)prohibitsthelawyerfromrepresentingaclientifthelawyer'stestimonywillconflictwiththeclient's.UnderModelRule1.7,thelawyermustwithdrawfromrepresentingtheclientiftherepresentationwillbemateriallylimited"bythelawyer'sowninterests."Therefore,shouldthelawyer'stestimonyattrialconflictwiththeirownclient's,itisclearthatthelawyermustwithdrawfromrepresentingtheclient.Althoughchancesoftheseeventsaremuchmoreremoteonapartneredproject(becauseofthenatureofworkshopactivitiesandbecausedisputeavoidanceissuchafocalpointofpartneringactivities),acarefullawyerwillmakeaninitialanalysisofethicsissuesattheoutsetoftheirparticipationand

keepprofessionalresponsibilityobligationsinmindthroughouttheirinteractionsonapartneredproject.

(a)Alawyershallnotactasadvocateatatrialinwhichthelawyerislikelytobeanecessarywitnessexceptwhere:

(1)thetestimonyrelatestoanuncontestedissue;(2)thetestimonyrelatestothenatureandvalueoflegalservicesrenderedinthecase;or(3)disqualificationofthelawyerwouldworksubstantialhardshipontheclient.

(b)Alawyermayactasadvocateinatrialinwhichanotherlawyerinthelawyer'sfirmislikelytobecalledasawitnessunlessprecludedfromdoingsobyRule1.7orRule1.9.

Figure158Rule3.7LawyerasWitness

Chapter16LessonsLearned161RoughSpots162GettingStarted163WorkshopTips164WorkingTogether

161RoughSpots

Partneringshouldbearewardingexperienceforallparticipantsintheconstructionindustryandmostwillbeeagertodoitagain.Sometimes,however,thereareroughspotsalongthewayandapartymaynotbetotallysatisfiedwiththepartneringexperience.Whenthishappens,someseekaneasyanswerandsimplyblametheprocess.Theymayevengosofarastogiveuponpartnering.Thisisunfortunate.Otherpartieswilltrytounderstandwhatcausedtheroughspotsandwillseektoimprovethenexttime.Thischapterwillhelpthosewhoarelookingforthisimprovement.Itshareslessonsotherparticipantshavelearnedaboutpartneringfromnumerousconstructionprojects.Whilethoselessonslearnedmaynotprovidetheanswerstoeverydifficultyencountered,theyshouldhelpaddressmanysignificantissues.

162GettingStarted

ASeniormanagementsupportisessentialtopartnering.

Partneringrequiresseniormanagementsupport.Topexecutivesfromeachstakeholderorganizationmustbelieveinthepartneringconceptandcommunicatethatbelieftoalllevelswithintheirorganizations.Sincepartneringreflectsasignificantchangeinmostcorporatecultures,projectmanagersandsupervisorsmustknowthattheyhavethissupport.Theyneedtofeelcomfortableenoughtomakechangesandtakeriskswiththisnewrelationship.Withoutthecommitmentandactivesupportofseniormanagement,thepartneringprocesshaslittlechanceforsuccess.

BPartneringneedsthesupportofallteammembersinvolvedintheproject.

Unlessallteammemberssubscribetotheideathatachievingcommongoalswillbenefiteveryoneontheteam,theremaybeproblemsreachingthosegoals.Whenthereisnobuy-intopartneringbyateammember,thatteammemberwillprobablynotexpendsufficientefforttoachievethecommongoalsoftheteam.Sometimesthisindividualmayeventrytopreventjointundertakingsbecauseheorshefeelsthreatenedbythem.Lackofsupportcancauselesscooperationinjointeffortsatbestand,atworst,activesabotageofthepartneringrelationship.

CPartneringisnotjustameeting.

Toooften,individualsbelievethathavingajointmeetingamong

projectparticipants,andleavingthemeetingfeelinggood,ispartnering.Althoughfeelinggoodisoneofthebenefits,partneringismorethanjustatemporarystateofmind.Partneringrepresentsaneverydaycommitmenttoimprovecommunication,sharecommongoals,andparticipateinjointproblem-solving.Itishardworkandrequiresconstantattentionduringthecourseofcontractperformance.

DPartneringmeansempowereddecisionmaking.

Partneringthrivesonefficientandeffectivedecisionmaking.Betterandmoredurabledecisionsaremadebyindividualsclosesttothesituation.Therefore,partneringstressesdelegationofappropriatedecisionmakingthroughoutthemanagementchainofauthority.Anissueresolutionladderisaconcreteexampleofhowauthoritymaybedelegatedanddecisionsefficientlymade.Ofcourse,seniormanagementmustbekeptinformedofdecisionsbypersonnelattheprojectsite,whomustbewilling,inturn,toacceptresponsibilityfortheresultsoftheirdecisions.

EEffectivecommunicationmeanslisteningaswellastalking.

Conflicthasitsrootsinmisunderstandingthatarisesfrompoorcommunication.Whencommunicationisgood,teammemberswillsendandreceivecommunicationwithaminimumofmisunderstanding.Byrespondingactivelytocommunication,teammembersfeedbackandchecktheirperceptionofthemessageandensurecorrectunderstanding.Clearcommunicationisthebasisoftheoften-statedpartneringprinciple,"talkbeforeyouwrite."Oralcommunicationallowsactivelisteningtoconfirmunderstandingbeforewrittencommunicationreinforcestheconcepts.

FPartneringisnotapanacea.

Thoseexperiencedwithpartneringknowthatitisnotapanacea.Partneringwillnotpreventanyandallconflictsfromarisingbetweentheparties.Eveninthebestrelationships,problemswillariseandsomeproblemscanleadtodisputes.Disputes,however,donothavetodestroythepartneringrelationship.Byestablishinganefficient

problem-solvingprocessattheinitialworkshop,manyproblemscanbequicklyresolvedduringperformanceoftheproject,withinamutuallysatisfyingproceduralframework.Theissueresolutionladderandadisputeresolutionactionplanprovidetwosuchframeworkstoquicklysettleproblems.Partneringteamsalsocanusefollow-upsessionstobrainstormproblem-solvingalternatives.

GPartneringshouldbefun.

Anenjoyableworkexperienceisoneofthefrequentlyexpressedbenefitsofpartnering.Whenconfrontationalattitudesandadversarialrelationshipsarereplacedbycollaborativeproblem-solvingandcommoneffort,peopleenjoytheirwork.Partneringisanefforttochangetheconfrontationalparadigmintheconstructionindustry.Partneringemphasizesbuildingbetterworkingrelationshipsthroughcollaborationwithothersandtheexplorationofoptions,ideas,andsolutions.Theserelationshipscanbeprofessionallystimulatingandrewardingastheybroadenperspectiveandknowledge.Partneringalsorecognizesthevalueofbuildingrelationshipsthroughsocialinteraction.Partneringteamsshouldtakeeveryopportunitytocelebratetheirworkingrelationshipwithappropriatesocialevents.

HPartneringmayhelponproblemprojects,butitcan'tchangeaproject'shistory.

A"problemproject"occurswhenthepartiesarenotrealizingtheircontractexpectationsandareengaginginhostilebehavior.Somepartiesbelievethatpartneringcaninstantlyturnthisaround.Partneringcanclearlyhelp.However,partneringthatisinitiatedonlyafterdisputesarisemaynotsolvealloftheexistingproblems.Someofthoseproblemsmaybebeyondthepointwhenjointproblem-solvingcouldhavepreventedthemorsubstantiallyreducedtheircostimpact.Partneringworksbesttopreventdisputeswhenitisinitiatedatthestartoftheproject.

163WorkshopTips

One-dayworkshopsaretooshort.

Thevalueofasingle-dayinitialworkshopislimited.Onedayisjustnotenoughtimetodevotetotheexercisesnecessaryforteam-building,developingcommongoals,creatingactionsplans,andwritingacharter,unlesstheprojectisverysimpleinscope.

Whenaone-dayworkshopisusedfortheinitialsession,someagendaitemsmustbeeithershortenedoreliminatedaltogether.Anitemthattendstobereducedduringaone-dayworkshopisteam-building,whichisessentialtoestablishingcommitmenttoacooperativeworkingenvironment.Wherecost,time,orotherlogisticscompelashorterinitialworkshop,caremustbetakentocompensatefortheareasinthissessionthathavebeengivenlessattention.Follow-upsessionsoruseofsupplementarywrittenmaterialsmayhelpfillthisvoid.

BUseaneutralfacilitatortoconducttheworkshop.

Theuseofaneutralfacilitatortoconducttheworkshopisvital.Havinganeutralfacilitatorhelpsalltheteammembersfeelthattherearenohiddenintereststhatthefacilitatoristryingtosatisfy.Aneutralfacilitatorcanbeapersonwhoisnotanemployeeofanyparticipatingorganizationorapersonwhoisanemployeebutwhowillotherwisenotbeinvolvedintheproject.Theneutralfacilitatorneedsthetrustofallparticipants.

CSelectafacilitatorcarefully.

Partneringfacilitationisagrowthindustry.Today,someindividualsarepromotingthemselvesasqualifiedpartneringfacilitatorswhentheyhavelittleornoexperiencewiththeprocess.Thekeyparticipantsmustbecarefulwhenselectingafacilitatortofindsomeonewithqualificationsnecessaryforthespecificprojectneeds.Anunqualifiedfacilitatorcaninhibitastrongpartneringrelationshipfromforming.

DSometimesafacilitatorwithtechnicalexperienceisbest.

Severalfactorsneedtobeconsideredwhenselectingafacilitator.A

primaryfactorrelatestotheunderlyingenvironmentfortherelationship.Iftheconstructionprojectishighlycomplex,thenafacilitatorwithatechnicalbackgroundmaybehelpful.Thefacilitatormaystarttheworkshopwithafixedagenda,butrecognize

thespecialtechnicalneedsoftheworkshopparticipantsandadjusttheproblem-solvingandother,laterpartsofthesessiontomeetthoseneeds.Askilledfacilitatorwilllookfortheseopportunitiesbothbeforeandduringtheworkshop.

EIncludeallstakeholderorganizationsintheworkshop.

Everyorganizationthatcanmateriallyaffectthesuccessorfailureofaconstructionprojectshouldberepresentedattheinitialpartneringworkshop.Keyparticipantsaretheowner,designer,andprimecontractor.Withoutthecontractingparties'participation,thereisnopartneringonaproject.Partneringcanproceed,however,withoutotherprincipalparticipants,thoughtheresultswillbelimitedwithoutthebuy-inofall.Organizationsthatparticipatecanexpectthattheywillhaveinputinstrategicteamdecision-making,thattheirinterestswillbeconsidered,andthattheywillbealignedwiththecommongoalsofthepartneringteam.

FAttheworkshop,makesureallteammembersunderstandthepartneringprocess.

Sometimesfacilitatorsassumethateveryoneattheworkshopunderstandsthepartneringprocess.Thisisnotalwaystrue.Theremaybeseveralparticipantswhoknowlittleornothingaboutpartnering.Byexplainingtheintentofthepartneringprocessatthestartoftheworkshop,newparticipantscanovercomeapprehensionsaboutwhatistotakeplace,andalloftheteammemberswillstartwiththesamecommonperceptionsabouttheprocess.

GAllowsufficienttimeattheworkshoptoidentifyprojectproblemsandworkonactionplans.

Identifyingprojectproblemsanddevelopingactionplanstoresolvethemmaybeoneofthemoreimportantactivitiesthatoccurattheworkshop.Assuch,itisimportantthatthisactivityisnotrushed.Sufficienttimeshouldbeallowedtoleteveryparticipantidentifypotentialprojectproblemsandtohavetheothers

evaluatethem.Developingactionplanstoresolvetheseproblemsisatoolthatallowstheprojecttogetaheadstartbysavingtimethatotherwisewouldbelostduringprojectperformance.Whenpotentialproblemsarenotraisedattheworkshop,theyhavetobeaddressedlaterduringconstruction.Thismayresultinwastedtime,scheduledelays,andadditionalprojectcosts.

HChartergoalsmustbemutualandmeasurable.

Theremustbeconsensusamongallteammembersonthegoalsexpressedinthecharter.Ifanyteammemberdoesnotagreetoagoal,thatpersonwillprobablynotsupportitormakeanefforttoachieveitduringperformanceoftheproject.Also,theteam'scommongoalsmustbemeasurableinordertoevaluatehowwelltheteamisdoinginmeetingeachgoal.Asageneralrule,absolutegoalssuchas"nolitigation"areundesirablebecauseanythinglessisunsuccessful.Yetslightlylessthanperfectmaybeagreatimprovementformostorganizationscomparedtotheirexperienceonother,similarprojects.Suchabsolutegoalsarebestwordedas"wewillstrivetoward...."

IPastpartneringexperienceisnosubstituteforaworkshop.

Eveniforganizationshavepastexperiencetogetherwithpartnering,theyshouldstillmeetandparticipateinaninitialpartneringworkshopbecauseeachprojectisunique.Eachpartneringteamformedforaprojectwillhaveitsownspecialneeds,problems,andinterests;however,theparticipantsmaybeabletobypasssomeoftheworkshopexercises,suchasidentificationofcommunicationstyles.Thesuccessoftheprojectcanbeenhancedbypullingtheparticipantstogether.Asateam,theyidentifyproblemsspecifictotheconstructionofthisparticularprojectandagreeonasetofcommongoals.Whereparticipantsareveryfamiliarwithboththepartneringprocessand

otherteammembers,thefocalpointoftheinitialworkshopmaybeinrefiningpreviouscommongoalsandprojectprocedures.Theworkshopalsogivestheopportunitytore-energizetheparticipantstohelpensureahigh-performingandsmoothlyfunctioningteam.

164WorkingTogether

AFollow-upmeetingsareimportanttoolsforsustainingtherelationship.

Partneringisnotaone-stepprocess.Althoughtheinitialworkshopestablishesablueprintforsuccess,therelationshipneedstobenurturedthroughoutthelifeoftheproject.Timetestseveryrelationship.Partneringisnoexception.Oldhabitsaredifficulttobreak,andunanticipatedproblemsandtherisksoftheconstructionbusinesscanweighheavilyonteammembers.Conductingfollow-uppartneringsessionsisagoodwaytosurface,consider,andovercomethispressure.Itisalsoanopportunitytoreaffirmcommitmentandintroducenewpeopletotheteam.

BFollow-upsessionsshouldbeconductedawayfromthejobsite.

Havingafollow-upsessionatamutuallyacceptableoff-sitelocationallowsteammemberstogetawayfromtheday-to-dayworkpressuresandconcentrateonpartneringevaluationandimprovement.Ifthesessionisatthejobsite,teammembersinvariablyattempttodothefollow-upsessionactivitiesanddailyprojecttaskssimultaneously,causingdistractionstoboth.Anoff-sitelocation,geographicallyneartheproject,avoidsadditionaltravelexpensesandreducestimeawayfromtheproject.Thismayalsoallowthepossibilityofinvolvingfamilymembersatasocialevent.

CDon'thideproblemscommunicatewiththeteam.

Twooftheessentialingredientsofpartneringaretrustandopen

communication.Ifproblemscannotberaisedwithintheteam,thentwoattributesofpartnering,trustandcommunication,arenotworkingforalloftheteammembers.Teammembersmusttrustthattheteamwilltakeaproblem-solvingapproachconsistentwiththeirgoalsandcharter,ratherthantryingtoassessfaultforaproblematicsituation.Opencommunicationdemandscandorinraisingissuesoridentifyingproblemareas;otherwise,

importantissuesandproblemsmayliedormantuntiltheybecomedisputes.

DStressurgencyinresolvingissuesandproblems.

Whenissuesareallowedtofesterandproblemsdragonunresolved,thepartneringteammightbegintocomeapart.Astimepasses,individualsbecomemorecommittedtotheirpositionsandstatementstheyhavemade.Theyarelesslikelytobeopentotheideasofothersthatconflictwiththeirown.Thiscanleadtodisagreementsandargumentsamongtheteam.Itcanalsocausehostilityandfrustrationstomount,coststoincrease,alternativestodisappear,andsolutionstobecomemoredifficult.Topreventthisfromoccurring,day-to-dayissuesshouldbepromptlyaddressedthroughproblem-solvingeffortsandtheissueresolutionprocessadoptedbytheteamintheinitialworkshop.Furtherfollow-upsessionsshouldbeinstitutedasnecessarytodevelopactionplanstoaddressneworcomplicatedproblemsarisingduringthecourseoftheproject.Theseprocedureskeepadversarialpositionsfromhardening,andfosterbetter,synergisticproblem-solving,whichactuallyhelpspreventadditionaldisputesfromarising.

ESometimesitiseasiertochangeteammembersthantochangenegativeattitudesorbehaviors.

Oneteammember'snegativeattitudecanaffecttheentirepartneringrelationship.Ifaconfrontationalpersonalattitudedoesnotchangeafterthepartneringworkshop,organizationsneedtotakeaseriouslookathowthisaffectstheproject.Afterthatevaluation,theeasiest,mostcost-effectivemeasuremaybetoreplaceteammemberswhocannotchangetheirconfrontationalattitudes.Forfederalgovernmentagencies,replacingakeypersonmaynotbeseenasviablebysenior

management,butitcanbedone.Thisisoftenarealtestofmanagement'scommitmenttopartnering.Itiseasierformanagementtoacceptthisdrasticremedialactionwhenmanagementrecognizesthatthebenefitsofawell-functioningteamareusuallydramaticandlong-lasting.

FPartneringneedstobeaconstanttopicatallprojectmeetings.

Theinitialworkshopisonlyabeginning.Tokeeppartneringaliveduringtheproject,emphasisandcontinuedcommitmentmustbedemonstrated.Partneringshouldbeanagendaitematallstaff,toolbox,andotherprojectmeetings.Thiswillhelpkeepeveryone'sfocusondesiredpartneringbehaviors.

GEvaluationsduringprojectperformanceprovideameansforimprovement.

Efficientpartneringteamsneedtoevaluatethemselvestoknowhowwelltheyaredoing.Evaluationincludesbothpartneringattitudesandindividualbehaviors,aswellasprogresstowardcommonprojectgoals.Evaluationformsandinformalinterviewsbytheteamfacilitatororchampionprovideagoodmeanstoassessthefeelingsandconcernsofallteammembersabouttheprocess;theyalsoprovideanopportunitytomakeanyadjustmentsnecessaryforimprovement.

HReviewthecharteratfollow-upsessions.

Reviewingtheprovisionsofthecharteratfollow-upsessionsservestoremindteammembersoftheircommitmentstotheirmutualvisionandcommongoals.Thisalsohelpsnewteammemberstounderstandandbuyintothecommitmentsalreadymadebytheotherteammembers.Further,itcansetthestagetodiscussprogressmadeandwhatadjustmentsareneededtoachieveprojectvisionandgoals.

IDisplaythecharterprominently.

Thechartersymbolizesthecommitmentmadebyeachparticipatingorganizationandteammembertoamutualvision,guidingprinciples,andcommongoals.Displayingthecharterisaconstantphysicalremindertotheteammembersofthatcommitment,especiallyattimesofdoubtandturmoil.Italsoprovides

informationtootherindividualsassociatedwiththeprojectoftheteam'scommitmenttopartnering.Almostallpartneringteamsproudlydisplaytheircharterattheconstructionsiteandintheirhomeoffices.Moreover,someteamshaveevencreatedwallet-sizedcardsandmemoformsthatincorporatetheircharterorpartneringslogan/symbol.

Chapter17CaseStudies171J6LargeRocketTestFacility172BonnevilleNavigationLock173InformationTechnologyServicesforFederalEnergyRegulatoryCommission,andtheGeneralServicesAdministration174ChevronWastewaterTreatmentProject175ShoreIntermediateMaintenanceFacility(SIMA),U.S.Navy176MurphyCanyonHousingRevitalizationProject,U.S.Navy177GazeleyProperties,UnitedKingdomOperations

171J6LargeRocketTestFacility1

TheU.S.ArmyCorpsofEngineers'MobileDistrictusedpartneringontheconstructionoftheJ6LargeRocketTestFacilityatTullahoma,Tennessee.TheJ6contractwasa$200millionfixed-pricecontractwitha$3millionawardfee.

TheJ6projectbeganwiththeinclusionofapartneringclauseintheconstructionrequestforproposals.Shortlyafter

1CharlesLancaster,''TheJ6PartneringCaseStudy,"IWRCaseStudy94-ADR-CS-11,Feb.1994.

awardingtheJ6contract,theownerandcontractorheldtheirfirstjointworkshoptoestablishthepartneringrelationship.TheparticipantsincludedrepresentativesoftheArmyCorps,theprimecontractor,andothersdeemedvitaltothedevelopmentandcompletionoftheproject,includingtheultimateuser,subcontractors,andsuppliers.Byexpandingthegroupofparticipants,abroad-basedconsensusinsupportofpartneringwasdeveloped.

Theprimaryobjectivesofthejointworkshopweretoopencommunications,establishtrust,andidentifycommongoals.Thetimingofthejointworkshopwasimportantbecauseitenabledthepartiestobeginteam-buildingbeforeconstructionstarted.Aprivatefacilitatorwasusedtoorganizetheworkshopandtoprovidestructuretothemeetings.Attheconclusionofthejointworkshop,everyoneparticipatedinthedevelopmentofaformalcharterthatwassignedbytheteammembers.

AnothercommoncharacteristicofpartneringutilizedattheJ6projectwasjointevaluationofperformanceatperiodicmeetingsduringconstruction.Thesefollow-upmeetingswereusedtoreinforcepartneringprinciplesandtoreviewteamperformanceforpossibleimprovements.

Asfarasresultsareconcerned,theJ6projectmetorexceededexpectations.Theprojectwascompletedfivemonthsaheadofscheduleandwithinbudget.Additionally,itexperiencednegativecostgrowthasthesavingachievedfromvalueengineeringoutpacedanyincreaseincontractcosts.Furthermore,nolitigationresulted.

LesstangibleresultsofpartneringattheJ6projectwereasubstantialreductioninpaperwork,anexcellentsafetyrecord,andacooperativeteam-buildingatmosphereontheprojectsite.

BonnevilleNavigationLock2

AnearlypartneringexperiencebytheArmyCorpsofEngineerswasthemultimillion-dollarconstructioncontractawardedbythe

2LesterEdelman,FrankCarr,andCharlesLancaster,Partnering,IWRPamphlet91-ADR-P-4,Dec.1991.

Corp'sPortlandDistrictundertheBonnevilleNavigationLockprojectinOregonandWashington.

Afterthecontractaward,theCorps'residentengineerandthecontractor'sprojectmanagerbeganthepartneringprocessbyattendingaone-weekleadershipdevelopmentprogram.Theywereabletoestablishthebeginningofatrustingrelationship,whileplanningacooperativeforumforfurtherteam-building.

Shortlyafterward,otherimportantstakeholders,suchasengineer/designers,constructionmanagers,superintendents,subcontractors,andsuppliers,werebroughttogetherforathree-dayjointpartneringworkshoptoexpandthiscooperativerelationshipamongothercriticalplayersontheteam.OncethesignificantstakeholdersatBonnevillebecameacquainted,everyoneatthejointworkshopparticipatedintheidentificationofcommongoalsandthedevelopmentofaformalcharter.Thecharterdefinedthemutualexpectationsandobjectivesoftheteamandprovidedguidelinesforaccountabilityanddisputeresolution.

Followingthejointworkshop,theparticipantsscheduledsemi-annualmeetingstoreinforcethepartneringrelationship.Attheseperiodicmeetings,teamperformancewasreviewedunderjointlyestablishedevaluationcriteria,andprospectsforimprovementwereassessed.Theseongoingmeetingsprovedessentialtothemaintenanceandcontinuousrenewalofthepartneringcommitment.ConstructionwascompletedatBonnevilleonscheduleandwithinbudget.Inaddition,valueengineeringsavingsofnearly$2millionwereachieved,andtherewasnolosttimeduetoinjuries.Finally,therewerenolitigatedclaims.

173InformationTechnologyServicesforFederalEnergyRegulatory

Commission,andtheGeneralServicesAdministration3

ComputerDataSystems,Inc.(CDSI)usedpartneringinprovidinginformationtechnologyservicestotheFederalEnergy

3StephenM.Daoust,JeanMurphy,andStephanieSchultz,"PartneringwiththeFederalGovernmentAContractor'sPerspective,"ContractManagement,Feb.Apr.1997.

RegulatoryCommission(FERC)andtheGeneralServicesAdministration(GSA).CDSIreportedontheseprojectsintheFebruary1997issueofContractManagement.

Partneringprincipleswereusedtobuildcommunication,problem-solvingcommitment,bettercrisismanagement,anddisputeresolution.TheprojectteamsestablishedwhattheycallaPartneringAgreement,whichconcentratednotonrightsandduties,asdoesacontract,butonthefollowingcommongoals:

·Greatercommunication,regardlessofrankoraffiliation

·Greatermotivationtosolveproblemsandsharerisk

·Bettercrisismanagement

·Useofalternativedisputeresolution,notlitigation

·Overallcostsavings

TheprocessdescribedbyCDSIincludedhiringanoutsidefacilitatortomanageaworkshopwiththepurposeofidentifyingandarticulatingcommongoals,assessingthecurrentrelationship,andestablishinganactionplanforimprovement.Emphasisisalsoplacedoncelebratingtheaccomplishmentsoftheteam,bothamonguppermanagementandtheworkforceingeneral.

Providinginformationmanagementadministrationservicesisamultifacetedundertaking.ToimplementpartneringwithFERCandGSA,CDSIidentifedkeyemployeeparticipants,basedontheprojectsunderthecontractonwhichtheteammemberswouldwork.Next,partneringteamswereestablishedamongthekeyemployees.Thesekeyemployeesontheprojectteamsestablishedmeetingschedulesandinformation-sharingprocesses,aswellasamethodforresolvingdisagreements.Then,additionalpersonnelwereselectedtoparticipateonaunifiedpartneringteam.Theseteamswouldworktogetherto

identifyandresolveproblems.

CDSIreportsspecificinstanceswherethepartneringrelationshipyieldedtangiblebenefits.Forexample,FERCandCDSIcooperatedonacomplicatedbuildingrelocationprojectthatrequiredmovingcriticalinformationtechnologysystems(IS)fromoneofficebuildingtoanotherwithoutabreakinISservice.Managerscitedthepartneringrelationshipwithpreventing"usversusthem"attitudesthathadcharacterizedpreviousprojects.Asaresult,thetransferproject,whichwasfouryearsinplanning,wasaccomplishedoverfifteenconsecutiveweekendsofwork,withoutasinglebreakinISservice.

PartneringwithGSAinvolvedinformationtechnologyprocurement.Managerscommentedthatdevelopingasoftwaresystemissimilartoaconstructionproject.Partneringhasallowedthepartiestosharelessonslearned,implementsystemsusingteamwork,andintroducequick-responseelectronictasking.Biweeklystatusmeetingsidentifyissuesaffectingsuccessandtheteamsevaluatemajoractivitiesforlessonslearned.Thefocusisonprojectsuccess,insteadofblameorpersonalities.Surveyshaveshownincreasedcustomersatisfactionsincepartneringhasbeenimplemented.

CDSIalsoreportsonasecondpartneringexperiencewiththeGSASoutheastRegion.CDSIproposedpartneringinitsbidforinformationtechnologyservicesfortheregion.Whilethecontractwasonlyrecentlyawarded,CDSIandGSAreportedpositiveinitialefforts.Thepartiesidentifiedfosteringteamworkasamainobjective.Seniormanagersnotedthattheybelievedpartneringwouldallowthemtoapproachandresolveproblemsmoreefficiently.Seniormanagersintendedtosharesuccesseswiththeworkforce.Theynotedthatthecontractrelationshipwasofftoagoodbeginningbecausetherewasacommonemphasisonthecooperativerelationshiprepresentedbypartnering.

174ChevronWastewaterTreatmentProject4

Inaprojectfortheconstructionofa$100millionprivatewastewatertreatmentfacilityinPortArthur,Texas,partneringwasusedbyChevronProductsCompany(owner)andH.B.Zachery(contractor).

Tofacilitatepartnering,therewasaninitialtwo-daycommitmentworkshopbetweentheparties,whichincludedseveralsubcontractors.Thiswasfollowedbyaseriesofotherperiodicworkshops.Therewereformalteam-buildingactivitiesconductedtopromote

communicationsandtoestablishadisputeresolutionprocess.Theteammembersdesignedspeciallogosforrecognitionawardsandheldsafetypicnics.Theyalsoheldmilestonecelebrationsthatincludedthesubcontractors'personnel.

4AssociatedGeneralContractors,"Partnering:ChangingAttitudesinConstruction,"p.157,Oct.1995.

Ofparticularnotewasthegroup'sdisputeresolutionplan.Theownerandcontractorestablishedmanagementteamsthatwereempoweredtoresolvedisputesastheyaroseatthejobsite.

Asaresultoftheirpartneringefforts,theteamwasabletorealizethecommongoalsinthecharter:reworklessthan2percentoffieldmanhours,zeropunchlistatmechanicalcompletion,zeroclaimsfromsubcontractorsandvendors,andABCcrafttraining.Also,theprojectcameinunderbudgetandtwomonthsaheadofschedule.Therewerenoclaimsfiledontheproject.

175ShoreIntermediateMaintenanceFacility(SIMA),U.S.Navy5

TheU.S.Navy'sShoreIntermediateMaintenanceFacility(SIMA),inPortsmouth,Virginia,isafacilitythatconductsintermediate-levelrepairstoshipboardcomponents.Thesefacilitiesaregenerallylocatednearthemajorpiersofanavalstation.Theyconductmaintenanceandrepairsthataretooextensivetobedonebyshipboardequipment,andyetdonotrequireavisittoashipyarddrydock.

TheeightpreviouslybuiltSIMAswerecompletedlateandoverbudget.TheNavalFacilitiesEngineeringCommand(NAVFAC)decideditwastimetousepartneringtoachieveabetteroutcome.TheConstructionIndustryInstitute(CII)ofAustin,Texas,assistedNAVFACtoimplementtheirpartneringeffort.

Ateamoftwenty-fivepeoplebeganearly,andultimatelyincludedtheowner,contractor,architect/engineer,majorsubcontractors,equipmentcoordinators,equipmentsuppliers,andtheenduser.TheircommongoalwastoprovideanendproductthatthenavycouldusetobetterservethemaintenancerequirementsofthefleetandthatPizzagalliConstructionCompanycouldproudlypointtoasajobwelldone.Theteamdevelopedandsignedapartneringcharterandadispute

resolutionprocess.Theymeteverythreetofourmonthstoassessprogressanddiscusstheproject.

5MarlaMcIntyre,"InnovationsinPartnering,"Constructor,p.56,Sept.1995.

Thisprojectwascompletedamonthaheadofscheduleatacostlessthanthegovernmentbudget,inspiteofamultitudeofsiteproblems,unexpectedenvironmentalclean-up,complicatedcoordinationissues,andunusuallywetweather.Thedisputeresolutionprocessneverhadtobeused.

RogerMason,projectcoordinatorfortheSIMA,saidthisSIMAwas"acompleteandusablefacilitythatison-lineandfunctioningbeyondallexpectations.Irealizewehadagoodarchitect/engineerfirmdesignthefacility,however,Ifeelmostofthecreditgoestothepartneringconceptandtheattitudeoftheindividualsinthegroup."BarryRobertson,supervisorygeneralengineerfortheResidentOfficerinChargeofConstructionsaid,"Insteadofsolvingourproblemslawyertolawyer,thepartnerssatdownandsolvedthemovernachos."A.E.Walker,CommandingOfficeroftheSIMAsaid,"Thesuccessoftheprojectcanbeattributedtomanyfactors,butthemostimportantwastheabilityofthemembersofthepartneringgrouptocommunicateneedsanddesiresandtheresponseoftheothermemberstomeettheseneeds."

176MurphyCanyonHousingRevitalizationProject,U.S.Navy6

MurphyCanyonPhaseIHousingRevitalizationProject,fortheU.S.Navy,inSanDiego,California,ispartoftheNavy'sNeighborhoodofExcellenceProgram.Itisadesign/buildprojecttorevitalize326military-familyhousingunits.Theworkwasdoneinphasesthroughalived-inneighborhood.These326unitsaretobefollowedby1,996morehousingunitstoberenovated.

TheSouthwestDivisionoftheNavalFacilitiesEngineeringCommandcombinedtheinitialpartneringworkshopwiththepre-designmeetingandcalledit"PartneringPlus."Thisallowedthe

partiestodeveloppartneringusingactualprojectissuesandpermitteddecisionmakerstodevelopreal-time,mutualunderstandingsofthem.Theworkshopparticipantsincludedtheowner,design/buildcontractor(HuntBuildingCorporation),andsubcontractors(includingtheprincipaldesignfirm).

6TomClark,JohnSinton,andDennisEriksen,"BoostingPartneringBenefits,"TheMilitaryEngineer,No.587,Oct.Nov.1997.

Afollow-upworkshopwasheldatthecompletionofdesigntoreviewtheeffectivenessofpartneringuptothatpoint.Italsoallowedtheparticipantstorecommittothepartneringprocess.Thispartneringeffortaddedemphasistoidentifyingandsolvingactualprojectproblems.Allpartiespresentedandclarifiedtheirrespectiveoperationalinterestsandtheirproposedapproachtothisproject.

Thisinteractivereviewenhancedtheprojectunderstanding.Withdecisionmakersinattendance,teambreakoutgroupsdevelopedtheissues.Elevenissuesweresettledintheworkshop,includingthedecisiontobuildasinglemodelunittoseeandapprovequalitypriortofullproduction.BytheendofthePartneringPlusworkshop,participantsaddressedcontractunderstandings,designapproaches,schedules,thecharter,communicationprocesses,issueresolution,continuousimprovement,andcommunityinvolvement.Theydevelopedamutualactionplan(MAP)thatwasusedthroughouttheproject.Attheendofthedesigncompletionfollow-upsession,theteamhadaddressedanddevelopedactionplansfor43issuesthatsurfacedfromthedesignanddesignreview.Theprojectwasmarkedwithharmonyandexcellentresults.Conflictanddifferenceswereminimalandteammembersdevotedtheirenergiestomeetingtheirpartneringvision,"Toenhancethequalityoflifefor326militaryfamiliesatMurphyCanyonandtosetthestandardtowhichtheremaining1,995unitswillbeimproved."Thisprojectteamwaspleasedwiththebenefitsofpartnering.

177GazeleyProperties,UnitedKingdomOperations7

GazeleyPropertiesoffersdesignandconstructionservicesforlargedistributionfacilitiesintheUnitedKingdom.Thecompanyusesacombinationofstrategicalliancepartneringandprojectpartneringtorealizelong-andshort-termobjectives.

7JohnBennetandSarahJayes,TrustingtheTeam:TheBestPracticeGuidetoPartneringinConstruction.Reading,England:CentreforStrategicStudiesinConstruction,UniversityofReading,1995.

Gazeleyhasastrategicalliancepartneringagreementwithagroupofconsultantsincludingdesign,engineering,construction,andmanagementfirms.Theoverallfive-yeargoalistobecomeacknowledgedasthemostefficientproducersoflargedistributionfacilitiesintheworld.Theirmissionstatementconcentratesonworkingrelationships:"Todevelopaworkingrelationshipwhichcontinuallyenhancesourefficiencyatproducinglargedistributionfacilities."Theircharterthenlistsmajorobjectivesintermsofcustomersatisfaction,workingtogether,delivery,andrewards.

Thestrategicagreementsetsanumberoffive-yeartargetsininnovation,efficiency,quality,time(scheduledcompletion),value,andservices(turnkeyandbeyond).Forexample,theteamsetatargetoffindingpromisinginnovationsthatyieldrealimprovementsineachprojectthatcanthenbeincorporatedintotheestablishedmethodsforfutureprojects.Anothertargetistoreducethecostofdesigningandconstructinglargedistributionfacilitiesbyatleast30percentinrealtermsoverthenextfiveyears.Intermsofquality,theteam'stargetistobecomeabsolutelyreliablewithinfiveyears,meaningastandardofzerodefectsinconstructionandabsolutereliabilityinpromisedservices.

Theteamdescribedinitscharterthedevelopmentsneededtoachievetheirgoals,includingbenchmarking,opencommunication,documentation,usingteamsformajorprojectelements,zerodefects,aftercare,projectprograms,costcontrol,informationtechnologyintegration,andprefabrication.

Gazeleyalsousesprojectpartneringprincipleswhenconstructingfacilitiesforcustomers.Forexample,alargewarehousedistributionfacilitywasconstructedinHemelHempstead,England.Amissionstatementandlistofobjectiveswereprepared,andfollow-upworkshopswereheldmonthlytoreviewprogresstowardpartnering

objectivesandtobuildteamspirit.Thegroupusedteam-buildingexercisestoencouragepartneringattitudes.Oneexercisereportedlyputteammembersinasimulatedadversarialjob-relatedsituationandchallengedthemtodiscusstheissueintheframeworkofthepartneringrelationship.Thediscussionrevealedvaluablelessonsaboutcandidcommunicationandjointproblem-solving.Inaddition,theparticipantsreportedincreasedfaithinthevalueofpartneringattitudes.

Gazeley'steamalsousesevaluationsheetstoassessperceptionsofprogresstowardbothstrategicandproject-relatedgoals.

Thesesheetsincludeacomparisontopreviousratingsandadepictionoftherangeofscoresreported.Categorieswithweakratingsorthatshowawidedifferenceinperceptionareexaminedcloselybytheteamandtargetedforimprovement.

Chapter18TheFutureVisionforPartneringInacomparativelyshortperiodoftime,partneringhaspromotedsignificantchangesintheconstructionindustry.Fromitsinceptionbarelytenyearsagountiltoday,partneringhascapturedtheinterestandimaginationofowners,contractors,subcontractors,suppliers,projectmanagementfirms,designprofessionals,andcustomers.Ithaswonthewholeheartedsupportofinternationalconstructionandtradeassociationsaswellasfederalandstategovernmentagencies.

Thereisnodoubtthatpartneringhasbeguntochangethefaceoftheconstructionindustry.Sincepartneringbegantobeusedwidelyinthelate1980s,theconstructionindustryhasseenadramaticchangeinthecorporatecultureofnumerousorganizations.Theseorganizationshavefoundthat,althoughriskandcompetitionarepartoftheconstructionbusiness,adversarialrelationshipsarenotinevitable.Throughtheuseofpartnering,organizationscanchangetheculturefromconfrontationandlitigationtoonemarkedbycooperationandmutualsuccess.Inessence,partneringisattherootsofasignificantparadigmshiftoccurringintheconstructionindustry.

Thosewhohaveexperiencedpartneringhavereapeditsbenefitsandaresharingtheirsuccessstories.Theyhaveseenasubstantialreductioninlitigation,lesspaperwork,moresafety,increasedcustomersatisfaction,andprojectsdeliveredontimeandwithinbudget.Whatmorecouldanyoneinvolvedintheconstructionindustrywanttoaccomplish?

Whiletheresultsspeakforthemselves,thatisnottheendofit.Nowisthetimefortheconstructionindustrytoaskhowitwillsustainandamplifythesuccessofpartneringinthefuture?Thinkaboutthisquestionforaminuteandthenconsiderthesefurtherquestions:

·Howlongwilltheconstructionindustrygenerateenthusiasmforthepartneringprocessafterithasbeenrepeatedlyused?

·Willthetypicalpartneringworkshopstillberelevantfortheparticipantswhohavebeeninvolvedwithnumerouspartneredprojects?

·Areallchartersbeginningtolookidentical?

·Willtheteammemberscontinuetodiscussproblem-solvingandconflictresolutionaftertheworkshoporwilltheyjustskipADRproceduredevelopmentandtrustthatthingswill''workout"?

·Finally,howwilltheconstructionindustrysustainitsinterestandcommitmenttopartneringandimproveitsbeneficialeffectsinthefuture?

Thesequestionsneedtobeanswered.Withtheeffortsofthosewhohaveseenthedramaticimpactpartneringofferstheconstructionindustry,theirabilitytoimagineistheironlylimitationtofindinganswers.Thepartneringprocessisjustthebeginningofbetterrelationshipstocome.

Glossary

actionplanThisisawrittenproceduretobefollowedforeachmajorproblemidentifiedbythepartneringteam.Anactionplancanbepreparedforknownproblemsortoestablishprocedurestohandleanticipatedproblems.Developingsuchplansistypicallypartofthepartneringworkshopproblem-solvingprocess.

adversarialThisisanenvironmentcharacterizedbyconflict,poorcommunication,anddistrust.Often,itleadstolitigation.

advisorymediationThisADRtechniqueisahybridofmediationandarbitrationandissometimesreferredtoasevaluativemediation.Itinvolvestwosteps:thefirstissimplymediation;thesecondstepfollowsifmediationdoesnotresolvetheproblem.Thenthemediatormakesanevaluationoftheparties'positionsfortheirfurtherconsiderationanddiscussion.

AlternativeDisputeResolution(ADR)Thisencompassesacontinuumoftechniquesdesignedtoassistinthemanagementofconflictandtheresolutionofdisputeswithoutresorttoformallitigationproceedings.ADRtechniquesofteninvolvetheuseofneutralandimpartialthirdpartiestofacilitatesettlementdiscussions.

AlternativeDisputeResolution(ADR)actionplanThistypeofactionplanisdevelopedatapartneringworkshop,tobeavailable

ifdisputesariseonaprojectorwhenclaimsaremadeunderacontract.ItusuallyincludesspecificproceduresforanexpeditednegotiationprocessandoneormoreADRmethods.

anecdotalinformationThisisevaluativeinformationgatheredthroughsurveysorinterviewsofparticipantsthatassessestheirperceptionoftheresultsofachangeinitiative.Perceptionsthatarenoteasilyquantifiableorarehighlysubjectivearecapturedthroughsuchinformation.(Seeindirectbenefits)

arbitrationInthisADRtechnique,thedisputingpartiesmakeadversarialpresentationstoaneutralandimpartialthirdpartythatisjointlyselected.Thearbitratorevaluatesthepositionsofthepartiesandmakesawrittendecisionbindingontheparties.InmoststatesintheU.S.,anarbitrationdecisionmaybeenforcedtothesameextentasatrialcourtdecision,butgroundsforappealmaybeseverelylimited.

barriersTheseare,figurativelyspeaking,stumblingblocksorimpassespreventingorganizationsandindividualsfromfullyparticipatinginpartnering.Afterbarriershavebeenidentifiedandaddressed,allteammembersshouldbeinapositiontofullyparticipateinpartnering.

behavioralstylesThisreferstoanindividual'spreferredmodesofverbalandnonverbalinteraction.Behavioralstylesmaybeunfamiliartoothers,andcanbeasourceofconflict.Partneringacquaintsindividualswithdifferingbehavioralstylestoallowthemtounderstandthemselvesandbesensitivetoothers'interactivestyles.

brainstormingTheunrestrainedofferingofideasorsuggestionsataworkshopbyallparticipants.Thereisusuallyaspecifiedsectioninaworkshopallowingparticipantstobrainstormissues,problems,orideastobeaddressedorresolvedduringtheworkshop.

buy-inTheactofobtainingacceptancefrompartneringteammembersonanissuepriortoinitiationofanaction.Buy-inrangesfrom"Icanlivewiththat"tofullendorsement.

championAnindividualwhoacceptstheresponsibilitytobetheproponentofpartneringonaday-to-daybasisforthepartneringteam.Thispersonorpersonswillactivelydevelop,nurture,andmaintainthepartneringrelationshipthroughthecompletionoftheproject.

charterAconcisewrittenstatement,thisdocumentdescribesthepartneringrelationship,reflectingthespecificprojectvisionandmutuallydevelopedgoalsoftheteam,anddefininghowtheteamwillbehavewhilecompletingtheproject.

collaborativeproblem-solvingThejointsearchforsolutionstoproblems,thistermdescribesaprocessthatelicitsobservationsandideasfromallparties,focusesonselectingcriteriaforapreferredsolution,andexaminesalternativestoselectthebestpossiblesolutionamongtheavailablealternatives.

comfortcheckThisisaprocessbywhichafacilitatorensuresthatworkshopparticipantsaresatisfiedwiththedecisionsreachedbytheteam.Itisameasureof"buy-in."

commongoalsProjectobjectivesthataresharedbyallpartneringteammembers,whichestablishstandardsofachievementthataremeasurableandquantifiable.Commongoalsareusuallyincludedinthepartneringcharter.Thesearestrategicobjectivesthathelpmakethevisionareality.

conciliationAproblem-solvingprocessinwhichapartyseekstobuildconsensus

amongallpartiestoresolveaproblem.Aneutralthirdpartycanbeinvolvedforimmediateinterventionwhenhostilityandtensionarepresentandcommunicationsaredifficult.

conflictAstruggleinvolvingdivergentideasandneeds.Conflicthasmanysources.Seeinterestconflicts;dataconflicts;relationshipconflicts;structuralconflicts;andvaluesconflicts.

consensusAdecisionwithwhichallmembersofagroupcanagreewithoutrelyingonamajorityvote.Consensusdoesnotmeanunanimityorthateveryoneagreeswitheveryaspectofthedecision.Itdoesmeanthatgroupmemberscanall"livewith"the

decision;thattheyallagreethatthedecisionisthebestoneforthegroupasawhole.

contractingofficerAgovernmentofficialwhohastheauthoritytoawardandmakemodificationstocontracts.Thisofficialhastheauthoritytosettlecontractclaimsonbehalfofthegovernment.

contractorInaconstructioncontractrelationship,thisisthepartywhoprovidesconstruction-relatedservices,oranyotherserviceunderacontract,directlytotheprojectowner.

corevaluesThetenetsbywhichweconductourselves.Thesearetheessentialvaluesnecessaryforaqualityworkingrelationship,andmayincludesuchtraitsasmutualtrust,opencommunication,sharedresponsibility,andcommongoals.

corporatecultureThesystemofvalues,beliefs,andnormsthatexistinanorganization.

dataconflictsConflictscausedbythelackofinformation,misinformation,differentinterpretationsofinformation,anddifferentviewsontherelevanceofinformation.

designersThetechnicalpersonnelwhoprovidearchitectural,engineering,andotherdesignoftheproject.Inmostcasestheseindividualswillreviewsomeofthesubmittals,providedesignclarifications,andreviewpotentialfieldchangesduringconstruction.

designteamThisgroupofindividualsisformedtoaccomplishplanningandpreparationforthepartneringworkshop,andshouldrepresentthekeyorganizationsinvolvedintheproject.

directbenefitsBenefitsofachangeinitiativethataredirectlymeasurableandquantifiable.On-timeprojectcompletionandmeetingbudgetprojections,forexample,aredirectbenefitsofpartneringthatcanbemeasured.

disputeresolutionactionplanThisisaplanforresolvinganissueorproblemthatremainsunresolvedinspiteofproblem-solvingefforts.Thisplancaninvolvetheuseofanissueresolution

ladderorsimilarinformalmechanisms.ThepartneringteamdevelopsthisplantoidentifytheADRtechniquestheteamwillemploy,inlieuoflitigation,toresolveissuesamongthem.

disputereviewboardApanelofthreeneutralmemberswhoareselectedbeforecontractperformancetoassistwiththeresolutionofdisputesastheyariseduringperformanceoftheproject.Thepanelmembersarenormallytechnicalexpertsfamiliarwiththetypeofconstructionbeingundertaken.

earlyneutralevaluationInthisADRtechnique,aneutralthirdpartywhoisanexpertintheproblemareaassiststhedisputingpartiesbyprovidinganevaluationofthestrengthsandweaknessesoftheirpositionsonaspecificissue.Thistechniqueisusuallyinitiatedimmediatelyafteraproblemarises.

evaluationformsWrittensurveysthatareusedonaregularbasisbypartneringteamstoassesstheirprogresstowardcommongoalsandthemutualvisionembodiedinthepartneringcharter.Howwelltheteamispracticingtheguidingprinciplesisalsomeasuredregularly.

facilitatorAnimpartialpartywhoassiststhestakeholdersindesigningandconductingthepartneringworkshopandfollow-upsessions.

fact-findingAnADRtechniquewhereaneutralpartyestablishesfactsconcerningtheconflict.Thefact-findertypicallyinterviewswitnesses,takeswrittenstatements,andgathersrelevantdocuments,whichare

summarizedforthepartiesinacompilationwrittenbythefact-finder.

FederalAcquisitionRegulations(FAR)AcompendiumofregulationsthatdirectlyapplytotheacquisitionofeverythingthattheU.S.governmentpurchases.

follow-upsessionsPeriodicmeetingsduringcontractperformancewithallteammembersparticipating.Thepurposesofthesefollow-upworkshopsaretoreinforcetheteam'scommitmenttopartneringandidentifyareasforimprovement.

groundrulesThedefinedproceduresthatarefollowedduringaworkshoporfollow-upsessionforparticipants.Thesearetheguidelinesforhowparticipantswillinteractwitheachotherandbehaveduringtheworkshops.

guidingprinciplesstatementsValuestatementsthatreflectthedesiredconductofpartneringteammembersonaproject.Theseareoperationaldefinitionsofcorevaluesthatwereselectedbytheteamasvaluestheywillnevercompromise.

indirectbenefitsBenefitsofachangeinitiativethataremeasuredlargelythroughtheperceptionsofindividuals.Jobsatisfaction,forexample,isanindirectbenefitofpartneringthatcanbeassessedthroughanecdotalinformationfromparticipants.

interest-basedbargainingAnegotiationtechniquethatstartswithaneedsanalysis.Partiestothedisputedevelopanunderstandingoftheirindividualneedsandseektoeducatetheotherpartiesabouttheseneedswiththeobjectiveofengaginginjointproblem-solvingtomeetallparties'needs.Thefocusisonneedsratherthanrelyingonmakinganassessmentaboutwhoisrightorwrong.Often,thisprocessisreferredtoas"win-win"negotiation.

interestconflictsConflictsaboutthingsorbehaviors.Therearethreekindsofintereststhatmustbeaddressedforadurablesettlementofaconflict:substantiveinterests(thecontentoftheconflict,suchasmoney,time,

goods,orresources);proceduralinterests(theprocessofresolvingconflict);andpsychologicalinterests(thewaypeoplefeelabouttheconflictinteractionbetweentheparties).

interestsInconflictresolution,thefundamentalneedsthatapartywantstohavesatisfied.

internalpartneringApartneringrelationshipthatisdevelopedwithinasingleorganization.Ifastakeholderorganizationhasnotpreviouslycompletedaninternalpartneringprocess,itmayconsiderinitiatingonepriortoattendingthefullpartneringteamworkshopforaspecificproject.Thiswillpermitresolutionofmanagementissuesamongtheindividualsinthatspecificorgani-

zationandprovideabetterfocusduringtheprojectpartnering,overcominganyinternalbarrierstobuildingthepartneringteam.

intrinsic/extrinsicmotivationExtrinsicmotivationisderivedfromexternalsourcesandintrinsicmotivationcomesfromwithinindividuals.

issueresolutionladderAprocessrequiringproblemstobeaddressedinatimelymanner.Itidentifiesresponsibleteammembersateachlevelwithinthestakeholderorganizationswhoareexpectedtoworkonresolvingissues.Whentheissuecannotberesolvedbythem,theissueiselevatedtothenextlevelofprojectmanagementforresolution.

keyparticipantsTheownerandprimecontractorarealwayskeyparticipants.Iftheownerretainsdesignservicesindependentlyfromconstructionservices,thedesignershouldbeaddedasakeyparticipant.

mediationAnADRtechniqueinwhichpartiesareassistedbyaneutralthirdparty,whoassistsinestablishingnegotiatingprocedures,identifyingissuesinconflict,anddefiningoptionsforresolution.Themediatordoesnotdecidethematterfortheparties,butratherassiststhemintheirsettlementdiscussions.

mini-trialAstructurednonbindingADRtechnique;thedisputingpartiesengageinaninformationexchangeataninformalmeeting,attendedbyprincipalsrepresentingbothpartieswhohavesettlementauthority.Themini-trialalsoincludesaneutraladvisorwhoprovides

substantiveadviceonthestrengthsandweaknessesofthepositionsheldbythepartiesinconflict.

mutualvisionThejointlyagreed-uponimageofsuccesstheteammembersworktowardonaconstructionproject.Themutualvisionisincludedinthepartneringcharter.

nonbindingarbitrationAnadversarialADRtechniquethatincludesanevidentiaryhearingbeforeaknowledgeableneutralthirdparty.Thearbitratorprovidesawrittenanalysisofthefactsanevaluationofthelaw,andanonbindingadvisorydecision.

normAstandardormodelconsideredtypicalforagroup.Behavioralnormsarethestandardsofbehaviorexpectedbygroupmembers.Partneringencouragesteammemberstodefinebehavioralnormsforteaminteraction.

operationallevelThemanagementstrataonthejobsitewithauthorityforaccomplishingaparticulartask.

operationalprojectmanagerAnindividualonthejobsitewithauthorityfordirectingtheworkasawhole.

organizationaldevelopmentTheprocessofpreparingforandmanagingchangeinanorganization.

ownerThepartywhorequiresandcontractsforconstructionservices,andmayormaynotbetheultimateuseroftheproject.

partneringAprocesstochangeattitudesinindividualsandcultureswithinorganizationsthatexpresslypromotesanenvironmentforrisk-sharing,teamwork,andattainingofmutualgoals.

partneringprocessAnongoingprocessofaligningorganizationstoachieveamutualvisionwithmaximumcollaborationandminimumdispute.Theprocessemphasizesteam-buildinganddevelopingasharedvisionandcommongoals,withaclearunderstandingofparticipantroles.It

includesactivelyresolvingissuesandproblemsaswellasgatheringandusingfeedbacktoadjusttheprojectperformancebasedonmutuallyagreedoutcomes.

partneringspecificationsContractclausesthatincorporatethepartneringprocessintothecontractandprovidethegeneralguidelinesforenteringthepartneringrelationship.Itmayormaynotindicatethevoluntarynatureofthepartneringactivityandhowthecostsmaybeshared.

partneringspiritThetrustandpositivementalattitudedevelopedduringpartnering.

partneringworksheetAwrittentoolusedfordevelopingthepartneringcharter.

personalstylerecognitionExercisesthatareusedtoassisttheparticipantstobetterunderstandindividualcommunicationstyles.Theyindicateeachparticipant'spersonalstyleofinteractingandhowitaffectstheircommunicationsindifferentsituations.Aself-examinationinstrument,suchastheMyersBriggsTypeIndicatorsurvey,istypicallyusedaspartofthisexercise.

positionalnegotiationsArights-basedbargainingtechnique.Inthisnegotiatingprocess,eachpartytakesapositionandattemptsresolutionbymakingaseriesofoffersandcounteroffers.

positionsExpressionsbypartiesoftheirdesiredresolutiontoaconflict.

pre-workshopmeetingAmeetingthatisheldpriortotheinitialpartneringworkshopwherethefacilitatorandworkshopdesignersfromkeyorganizationsdeveloptheworkshopagenda.Duringthisprocess,theydeterminetheselectionofanadequatemeetingfacility,availabilityofnecessaryequipment.appropriatenumberandblendofparticipants,andascheduleforsufficientworkshoptime.

principalparticipantsThemajorsubcontractors,suppliers,designers,andotherswhocanhaveasubstantialimpactonaproject.

problemidentificationTheprocessofexaminingpastexperiencefromsimilarprojectsandthenconsideringpotentialproblemsonthecurrentproject.Brainstormingisaneffectivetooltouseforsuchidentification.

problem-solvingAstructuredprocessinpartneringthatestablishesplanstoaddress

specificproblemsorprocedurestobeusedwhenproblemsarise.

projectmanagementTheoverallcoordinationofallaspectsoftheproject,includingfunding,acquisitionstrategy,design,construction,turnover,andinsomeprojects,operation.

projectneutralTypically,thisdescribesaneutralexpertwhoactsasaproblemsolverthroughoutconstructiontokeeptheproject

movingforward.Partiesagreecontractuallywhethertobeboundbytheneutral'sdecisions.Theyalsodecidewhetherdecisionscanbecontestedaftertheprojectiscompleted,andifso,bywhatotherADRtechniques.

projectpartneringTheapplicationofpartneringprinciplestoasingleconstructionproject.

qualityimprovementmethodologiesThesearemethodsdesignedtohelporganizationsimproveperformance.Therearemyriadmethodstoimprovequality,increaseproductivity,andnurturecreativitythathavebeenprovensuccessfulmanytimesover.TheseincludeTotalQualityManagement(TQM),continuousimprovement,reengineering,team-building,andcreativeproblemsolving.Theygenerallyespousesimilarprincipalswithdifferingareasofemphasis.

relationshipconflictsConflictsthatarecharacterizedbymisperceptions,stereotyping,orpoorcommunication.

rocksintheroadAnticipatedproblemsthatparticipantsrecognizemayariseduringconstruction.

rolesandresponsibilitiesTheteammembersclarifytheirrolesandresponsibilitiesinordertoavoidconfusion,whichcouldcauseconflict.Adiscussionduringthepartneringworkshopprovidesmoredefinitionandclarificationoftheindividualrolesandresponsibilitiesonaproject.

settlementjudgeAjudicialADRtechniqueinwhichajudgehearsthepositionsofthepartiesandprovidesthemwithanonbindingevaluation.Thejudgemayattempttomediatetheresolutionofthedisputeorsimplyevaluatethestrengthsandweaknessesofeachoftheparties'positions.

stakeholdersIndividualsororganizationsthatshareriskincompletionoftheproject.Examplesoftypicalstakeholderswhobecomeparticipantsinthepartneringteamincludetheowner,primecontractor,majorsubcontractors,majorsuppliers,anddesigners.Asuniqueneedsofaprojectwarrant,stakeholdersmay

includecustomers,inspectors,andotherpartiesthathaveasignificantimpactonprojectoutcome.

standardsforbehaviorThewayteammemberswanttobetreatedatalltimesduringtheconstructionproject.Suchstandardsemphasizetheneedforteammemberstotreateachotherwithrespectandcourtesy,andtokeepcommunicationopen.

strategicalliancepartneringAprocesstocreatecooperativeandcollaborativerelationshipsbetweenindependentbusinessorganizationsoveranextendedperiodoftimeorthroughthecourseofmultipleprojects.

structuralconflictsConflictsresultingfromthe''rules"orcircumstancesadoptedbyoneormoreinteractingpartiesthatconstrainhumaninteraction.

summaryjurytrialAnadversarialADRtechniqueinwhichthelitigatingpartiesmakeanabbreviatedpresentationtoajury,whomakesanonbindingevaluationoftheparties'positions.

summarytrialwithbindingdecisionAjudicialADRtechniqueusedbyfederalgovernmentBoardsofContractAppeals.Inthisprocess,thepartiesmakeasummarypresentationtoanadministrativejudge,whorendersabindingdecision.

synergyCooperativeinteractionthatallowsforsmoothprojectcompletion.Synergyistheconceptthatthestrengthofacollaborativeteamismorethanthesumoftheirindividualstrengths.Thebenefitsofteamsynergyarebestachievedwhenindividualteammembershaveproductiveworkingrelationshipscharacterizedbyopen

communication,collaborativeproblem-solving,anddedicationtocommonsuccessgoals.

team-buildingTheprocessusedtobuildcollaborativeworkingrelationsamongagroupofpeople,allowingthemtocapitalizeonthecombinedskillandexpertiseofall.

team-buildingexerciseAmeanstoestablishpositiveteam-buildingrelationshipsthroughtheuseofcommunicationskills-build-

ingactivitiesundertakenatapartneringworkshop.Teamexercisesencouragetheparticipantstothinkandworkasateam.

teamdecision-makingDecisionsmadebyconsensusoftheparticipants,whichmaynotbethefirstchoiceofeveryperson,butthateveryonecan"livewith."Teammemberscontributeideas,discusstheprosandcons,andchoosethebestalternatives.Oftentheresultisbetterthanindividualdecisions.

teamworkAteam-orientedprocess,notameansforindividualachievement.Themostproductiveteamsareacollectionofeveryone'sbesteffortswithoutregardtowherethecreditflowsortoorganizationalboundaries.Inahigh-performingteam,solutionsareachievedthroughcollaboration.

TotalQualityManagement(TQM)Acontinuousprocessimprovementmethodologyandphilosophythatusestheapplicationofqualitymanagementtoolsandtechniquestohelpanorganizationreachitsgoals.TQMisastrategic,integratedapproachtoimprovingquality,focusingonachievingcustomersatisfaction,seekingcontinuousprocessimprovement,andfullyinvolvingtheworkforce.

ValueEngineeringChangeProposal(VECP)Aprocessthatallowsthecontractortoidentifyandbenefitfromconstructionofacomponentoftheprojectinamorecost-efficientand/ortimelyway,withoutsacrificingspecifiedqualityofthatcomponent.Suchproposalsmightincludeusingnewproducts,substitutingmorereadilyavailableproducts,employinglesscostlytechniques,oradjustingworksequences.Thecontractormaybe

awareofmanychangesthatcouldsavemoneyandprovideaqualitysolutionbutarenotspecifiedundertheoriginalcontract.

valueengineeringprovisionAcontractprovisionthatpermitscontractingpartiestogenerateandreviewValueEngineeringChangeProposals(VECPs).Proposalsaresubmittedinwritingandtheownermayormaynotacceptthem.Onceacceptedbytheownerandthedetailsincostsavingsareagreedupon,thechangetothecontractismade.Typicallysomeformoffinancialincentive,suchaspayingthepartydevelopingthevalueengi-

neeringideaaportionofthecostsavings,isusedtoencouragevalueengineeringproposals.

valuesconflictsConflictsthatstemfromfundamentallydifferentlifestyles,goals,ideologies,orreligiousbeliefs.

visionstatementAwrittenstatementexpressingthepartneringteam'slong-rangeviewofitsrelationshipandprojectsuccess.

wordsmithingTheactofreview,discussion,andrevisionofawrittendocumentbyapartneringteam,withthegoalofarrivingataconsensusstatement.

workshopAmeetingofprojectparticipantstoestablishorrefinethepartneringteamrelationship.

workshopclosureThefinalstepinapartneringworkshop,designedtoreachclosureonitemsraisedduringthemeetingbeforeteammembersdepart.Thisusuallyconsistsofdraftingacharter,planningforthefuture,signingthecharter,andcelebratingthenewrelationship.

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ActionPlans,116

creating,11925

fordisputeresolution,12728

workingon,inpartneringworkshops,23637

AdministrativeDisputesResolutionAct(1996),2078

Adversarialmind-setasbarriertopartnering,43

Advisorymediation,196

Agenda

forfollow-upsession,164

forpartneringworkshops,86,1013

one-day,135,136

two-day,13134

AirForce,U.S.,62

All-knowingknowledgeasbarriertopartnering,4748

AlternativeDisputeResolution(ADR),11617,12728,186,187

adjudicativemethods,191,199205

computingquestionnairescore,211

continuum,188,19091

helpindecidingwhentouse,207,208

individualmethods,188,19192

interpretingquestionnairescore,212

andpartnering,206

questionnaire,20811

third-partyassistedmethods,188,190,19298

AmericanArbitrationAssociation(AAA),xx,7,5859

AmericanConsultingEngineersCouncil,7

Arbitration,2045

nonbinding,19596

Arm'slengthpolicy,20

Army,U.S.,62

ArmyCorpsofEngineers,U.S.,xixxx,31,38,62,63

MobileDistrict

BonnevilleNavigationLockproject,24445

J6LargeRocketTestFacility,24344

AssociatedGeneralContractorsofAmerica(AGC),xx,7,5658

Attitudeasbarriertopartnering,46

Baird&McGuirecleanupproject,60

Barrierstopartnering,4153

eliminating,11213

BayouBonfoucaremediationproject,60

Behavior,standardsfor,11314

Benefits,evaluationof,5568,6162

Bindingdisputeresolution,77

Brainstorming,113

Budgetasgoalinpartneringcharter,145

Champion,roleof,inpartneringrelationship,15758

Changeorders,10

Charter.SeePartneringcharter

ChevronWastewaterTreatmentProject,24748

Client,advising,onpartnering,7071

Collaborativeproblemsolvingasjointeffort,26

Commitmentinovercomingbarrierstopartnering,5152

Commongoals,25,115,14348

Communications

effective,233

open,24

inpartnering,1011,12

Communicationteam,23839

ComputerDataSystems,Inc.(CDSI),40,24547

Confidentiality,7475

Conflicts

basicsof,19

inconstructionindustry,18,2021

data,17

interest,1617

relationship,17

sourcesof,1618

structural,1718

value,17

Confrontationalrelationships,costof,xviixviii

Constitution,U.S.,138

Constructioncontract

clausesinforpartnering,9

integratingpartneringconceptsthroughout,7577

partneringprovisionsin,6979

startingpartneringduringperformanceof,9

ValueEngineeringChangeProposal(VCEP)clausein,10

Constructionindustry

barrierstopartnering,42

conflictin,18,2021

cooperativerelationshipsin,xviixxi

partneringin,2,31

ConstructionIndustryInstitute(CII)atUniversityofTexas,xx,18,31

Constructionwork,riskin,18,20

Contract.SeeConstructioncontract

Cooperation,fearof,asbarriertopartnering,44

Cooperativerelationships,xvii

Corevalues,113

CourtofFederalClaims,U.S.,203

Dataconflicts,17

Decision-making,team,11112

Defense,U.S.Departmentof,39,5961

Deming,W.Edwards,174

14Pointsof,17879

SystemofProfoundKnowledgeTM,17477

Design-BuildInstituteofAmerica,xx

Designer,participationinpartneringworkshop,45

Directbenefits,56

affirmationof,5661

Disinterestasbarriertopartnering,48

DisputeAvoidanceandResolutionTaskForce,xx

Disputeresolution,75,77

binding,77

DisputeResolutionActionPlan,creating,12728

Disputereviewboard,19697

Doubtasbarriertopartnering,49

DraytonHallStreambankProtectionproject,38

Dupont,34

Earlyneutralevaluation,19798

Economicrestraintasbarriertopartnering,45

Egoasbarriertopartnering,48

Empowereddecisionmakinginpartnering,233

Empowerment,lackof,asbarriertopartnering,4647

Environmentalprojectspartnering,39

Ethicsandpartnering,5

Evaluationduringprojectperformance,240

Expectationsforworkshops,106

Facilitators,1034

choosing,7273

forworkshop,86

findingnamesof,7

infollow-upsessions,78

lawyersas,21819

neutral,235

selectionof,9396,235

insustainingpartneringrelationship,15657

withtechnicalexperience,23536

Fact-finding,193

FederalBoardsofContractAppeals,200203

FederalEnergyRegulatoryCommission,InformationTechnologyServicesfor,24547

FederalQualityInstitute(FQI),173

Feedback,implementingactivitiesin,8788

FluorDanielCorp.,34

Follow-upsessions,238

findingtimefor,8

asgoalinpartneringcharter,147

needforfacilitatorat,78

reviewingcharterat,240

forsustainingpartneringrelationship,16364

Forcefielddiagram,4950

GazeleyProperties,UnitedKingdomOperations,25052

GeneralServicesAdministration,xx

InformationTechnologyServicesfor,24547

business,instrategicalliancepartnering,33

common,25,115,14348

inpartneringcharter

budgetas,145

follow-upsessionsas,147

issueresolutionas,147

litigationas,14748

paperworkas,147

qualityas,147

safetyas,145

team-buildingas,147

timeas,145

valueengineeringas,145,147

Governmentcontractingofficer,riskfor,insigningpartneringdocuments,3

Groundrules,adopting,forworkshop,1069

Implementationplanforpartneringcharter,14849

Indecisionasbarriertopartnering,48

Indirectbenefits,56

Informalexchangeinovercomingbarrierstopartnering,52

Informationtechnologyservicespartnering,40

Interest-basedbargaining,192

Interests

conflictsin,1617

procedural,16

psychological,1617

substantive,16

Internalconflictasbarriertopartnering,43

Internalpartnering,conducting,8990

Introductionsforworkshop,1056

IssueEscalationLadder,116

Issueresolutionasgoalinpartneringcharter,147

IssueResolutionLadders,75,12527,127

Issues,urgencyinresolving,239

J6LargeRocketTestFacility,24344

Jointpartneringworkshop,8586

Knowledge,all-knowing,asbarriertopartnering,4748

Lawyers

participationof,inpartnering,21329

professionalresponsibilitiesinpartnering,21928

atworkshop,56

Litigationasgoalinpartneringcharter,14748

Litigationavoidanceinterest,18788

MagnaCarta,138

Managementcommitment,2324

securing,forpartnering,8485

MCBCampLeJeune,60

Mediation,19293

advisory,196

Mini-trial,19495

Misconceptions,46

MurphyCanyonHousingRevitalizationProject,U.S.Navy,24950

Mutualtrust,24

Mutualvision,14243

NavalFacilitiesEngineeringCommand(NAVFAC),6263

Navy,U.S.,xx,62

MurphyCanyonHousingRevitalizationProjectin,24950

ShoreIntermediateMaintenanceFacility(SIMA),24849

Negotiations,positional,191

Newsletterinpublicizingeventsinpartneringrelationship,165

Nonbindingarbitration,19596

One-dayworkshops,23435

agendafor,135,136

Opencommunication,24

Operationalprojectmanagementsupport,85

Opposingforcesasbarriertopartnering,4950

Organizationalbarrierstopartnering,4246

Organizationalstructureasbarriertopartnering,45

Panacea,partneringasisnot,233

Paperworkasgoalinpartneringcharter,147

Paradigmparalysisasbarriertopartnering,47

Partnering

advisingclientaboutusing,7071

andAlternativeDisputeResolution(ADR),206

barrierstouseof,4153

eliminating,11213

benefitsof,xviiixix,xxxxi

champion'sroleduringrelationship,15758

andchangeorders,10

characteristicsof,83

communicationin,1011,12

contractclausesusedfor,9

corevaluesin,2325

costsof,6

definitionof,xix,2,2123,3132

designingplanfor,15657

empowereddecisionmakingin,233

environmentalprojects,39

andethics,5

evaluatingrelationship,15862

follow-upsessionsforsustainingrelationship,16364

foundationforimplementing,xix

funin,234

futurevisionfor,25354

harddataon,6265

informationtechnologyservices,40

integratingconceptsthroughoutconstructioncontract,7577

andinteractionoftotalqualitymanagement(TQM),177,18186

lawyerparticipationin,21329

lawyer'sprofessionalresponsibilitiesin,21928

limitationof,2530

asmanagementfad,2

needforseniormanagementsupportin,232

needforsupportofallteammembers,232

needforsustaining,15556

opportunitiesofferedby,16

past,assubstituteforworkshop,237

forproblemprojects,234

problemswith,8

asprocess,2526

project,32,3537

provisionson,inconstructioncontract,6979

publicsector,7779

realbenefitsof,68

asrelativelynewconcept,1

roleofsuretyin,8

servicesector,40

smallproject,38

starting,duringcontractperformance,9

stepsof,8188

strategicalliance,32,3335

subjectiveevaluationof,6568

successof,9

supply-chain,37,39

sustainingrelationshipbetweenmeetings,16465

timefactorin,67

andtrust,1213

understandingprocessof,236

worldwideimplementationof,37

Partneringcharter,3637,13753

building,13942

communicationsasgoalin,145

contractobligationin,3

developing,87

displaying,24041

elementsin,13839

goalsin,237

budgetin,145

common,14348

follow-upsessionsin,147

issueresolutionas,147

litigationas,14748

paperworkas,147

qualityas,147

safetyas,145

team-buildingas,147

timeas,145

valueengineeringas,145,147

implementationplanfor,14849

importanceof,14950

mutualvisionin,14243

needfor,13738

posting,164

reviewing,atfollow-upsessions,240

sample,15053

signing,3

Partneringdocument,riskforgovernmentcontractingofficerinsigning,3

Partneringrelationship

evaluating,15862

planningforongoing,87

Partneringteam,puttinglawyerson,21516

Partneringworksheet,131

Partneringworkshops

adoptinggroundrules,1069

agendafor,86,1013

one-day,135,136

sample,13135

two-day,13134

aimof,8586

benefitof,forsubcontractor,12

choosingfacilitatorfor,86

choosinglocation,99

closure,12831

customer/userat,5

designchecklist,100

designing,9798

elements,1034

expectations,106

flexibilityandstructure,135

identifyingparticipants,9093

identifyingprojectproblemsin,23637

includingstakeholderorganizationin,236

issuestobeaddressedin,74

joint,8586

lawyersat,56

one-day,23435

opening,1049

participantsin,23

participationbydesignerin,45

pastpartneringexperienceassubstitutefor,237

preparingfor,89100

relationship-building,10916

rolesandresponsibilities,11516

welcomeandintroductions,1056

workingonactionplans,23637

Partnershipmeeting,25

Personalstylerecognition,11415

Policiesasbarriertopartnering,43

Positionalnegotiations,191

Posturing,20

Privatesector,draftingspecificpartneringprovisionsin,7175

Problemidentification,11719

Problemresolutionprocesses,34

Problemsolving,11,17

collaborative,asjointeffort,26

implementingactivitiesin,8788

scopeof,11617

urgencyin,239

Proceduralinterests,16

Projectneutralprocess,198

Projectpartnering,xixxx,xx,32,3537

Psychologicalinterests,1617

Publicationsinovercomingbarrierstopartnering,51

Publicsectorpartnering,7779

Qualityasgoalinpartneringcharter,147

Qualitymovement,33

Realsupportasbarriertopartnering,47

Regulationsasbarriertopartnering,43

Relationships

buildingof,17,36,10916

conflictsof,17

Responsibility,shared,25

Riskinconstructionwork,18,20

Risk-takingasbarriertopartnering,44

Rulesasbarriertopartnering,43

Safetyasgoalinpartneringcharter,145

Self-interestasbarriertopartnering,49

partnering in construction: a practical guide to project success

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