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PartneringinConstructionAPracticalGuidetoProjectSuccess
FrankCarrwithKimHurtado,CharlesLancaster,CharlesMarkert,andPaulTucker
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CoverdesignbyGreyCatGraphicDesign.
ThematerialscontainedhereinrepresenttheopinionsoftheauthorsandeditorsandshouldnotbeconstruedtobetheactionofeithertheAmericanBarAssociationortheForumontheConstructionIndustryunlessadoptedpursuanttothebylawsoftheAssociation.
Nothingcontainedinthisbookistobeconsideredastherenderingoflegaladviceforspecificcases,andreadersareresponsibleforobtainingsuchadvicefromtheirownlegalcounsel.Thisbookandanyformsandagreementshereinareintendedforeducationalandinformationalpurposesonly.
©1999AmericanBarAssociation.Allrightsreserved.PrintedintheUnitedStatesofAmerica.
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
xvii
Chapter1FrequentlyAskedQuestions
1
Chapter2ConflictandItsRoleinDefiningPartneringValues
15
Chapter3HistoricalDevelopmentandApplicationsofPartnering
31
Chapter4BarrierstotheUseofPartnering
41
Chapter5EvaluatingtheBenefits:IsPartneringWorththeEffort?
55
Chapter6DevelopingConstructionContractPartneringProvisions
69
Chapter7ThePartneringProcess
81
Chapter8PreparingfortheWorkshop
89
Chapter9ConductingtheWorkshop
101
Chapter10ThePartneringCharter
137
Chapter11SustainingtheRelationship
155
Chapter12ImplementingPartneringinConjunctionwithValueEngineeringandTotalQualityManagementMethodologies
167
Chapter13AlternativeDisputeResolution
187
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Chapter14AlternativeDisputeResolutionSelectionProcessonPartneredProjects
207
Chapter15LawyerParticipationinPartnering
213
Chapter16LessonsLearned
231
Chapter17CaseStudies
243
Chapter18TheFutureVisionforPartnering
253
Glossary 255
Bibliography 269
Index 275
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Contents
Acknowledgments xi
AbouttheAuthors xiii
IntroductionTheNeedforChange
xvii
Chapter1FrequentlyAskedQuestions
1
11Introduction
1
12ThePartneringConcept
2
13ThePartneringProcedure
6
14ThePartneringExperience
9
Chapter2ConflictandItsRoleinDefiningPartneringValues
15
21TheGoodOldDays
15
22SourcesofConflict
16
23ConflictBasics
18
24ConflictintheConstructionIndustry
18
25PartneringDefined
21
26CoreValues
21
27WhatPartneringIsNot
25
Chapter3HistoricalDevelopmentandApplicationsofPartnering
31
31Partnering:TheDevelopmentoftheProcess
31
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32StrategicAlliancePartnering
33
33ProjectPartnering
35
34PartneringWorldwide
37
35PartneringApplications
38
Chapter4BarrierstotheUseofPartnering
41
41UnderstandingBarriers
41
42ConstructionIndustryBarriers
42
43OrganizationalBarriers
42
44IndividualBarriers
46
45PlantoOvercomeBarriers
50
46Success
53
Chapter5EvaluatingtheBenefits:IsPartneringWorththeEffort?
55
51 55
ValueAdded
52AffirmationofDirectBenefits
56
53BenefitEvaluation
61
54HardDataonPartnering
62
55SubjectiveEvaluationofPartnering
65
56TheRealBenefitsofPartnering
68
Chapter6DevelopingConstructionContractPartneringProvisions
69
61AdvisingaClientaboutUsingPartnering
70
62DraftingSpecificPartneringProvisionsinthePrivateSector
71
63IntegratingPartneringConceptsthroughouttheConstructionContract
75
64PublicSectorPartnering
77
Chapter7ThePartneringProcess
81
71IntroductiontotheStepsofPartnering
81
72StepOne:StartPartneringEarly
82
73StepTwo:SecureManagementCommitment
84
74StepThree:HoldaJointPartneringWorkshop
85
75StepFour:DevelopaPartneringCharter
87
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76StepFive:PlanforOngoingPartneringRelationship
87
77StepSix:ImplementFeedbackandProblem-SolvingActivities
87
Chapter8PreparingfortheWorkshop
89
81ConductingInternalPartnering
89
82IdentifyingWorkshopParticipants
90
83SelectingaFacilitator
93
84DesigningtheWorkshop
97
85ChoosingtheWorkshopLocation
99
Chapter9ConductingtheWorkshop
101
91AgendaDevelopment
101
92WorkshopElements
103
93OpeningtheWorkshop
104
94Relationship-Building
109
95Problem-Solving
116
96WorkshopClosure
128
97PartneringWorksheet
131
98SampleWorkshopAgendas
131
99WorkshopFlexibilityandStructure
135
Chapter10ThePartneringCharter
137
101TheNeedforaWrittenCharter
137
102CharterElements
138
103BuildingtheCharter
139
104MutualVision
142
105CommonGoals
143
106ImplementationPlanfortheCharter
148
107 149
TheImportanceoftheCharter
108SampleCharters
150
Chapter11SustainingtheRelationship
155
111TheNeedtoSustainthePartneringRelationship
155
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112DesigningthePlan
156
113TheChampion'sRoleDuringtheRelationship
157
114RelationshipEvaluation
158
115Follow-UpSessions
163
116BetweentheMeetings
164
Chapter12ImplementingPartneringinConjunctionwithValueEngineeringandTotalQualityManagementMethodologies
167
121ValueEngineeringChangeProposals(VECPs)
167
122TotalQualityManagement(TQM)
173
Chapter13AlternativeDisputeResolution
187
131LitigationAvoidanceInterest
187
132ADRContinuum
188
133IndividualMethods
191
134Third-PartyAssistedMethods
192
135AdjudicativeMethods
199
136ADRandPartnering
206
Chapter14AlternativeDisputeResolutionSelectionProcessonPartneredProjects
207
141HelpinDecidingWhentoUseAlternativeDisputeResolution(ADR)
207
142TheADRQuestionnaire
208
143ComputingtheADRQuestionnaireScore
211
144InterpretingtheADRQuestionnaireScore
211
Chapter15LawyerParticipationinPartnering
213
151RaisingtheIssueaboutLawyersandPartnering
213
152LawyersOutsidethePartneringTeam
214
153PuttingLawyersonthePartneringTeam
215
154 216
In-HouseCounselorOutsideCounsel
155LawyersasPassiveParticipants
217
156LawyersasActiveParticipants
217
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157LawyersasFacilitators
218
158TheLawyer'sProfessionalResponsibilitiesinPartnering
219
Chapter16LessonsLearned
231
161RoughSpots
231
162GettingStarted
232
163WorkshopTips
234
164WorkingTogether
238
Chapter17CaseStudies
243
171J6LargeRocketTestFacility
243
172BonnevilleNavigationLock
244
173InformationTechnologyServicesforFederalEnergyRegulatoryCommission,andtheGeneralServicesAdministration
245
174 247
ChevronWastewaterTreatmentProject
175ShoreIntermediateMaintenanceFacility(SIMA),U.S.Navy
248
176MurphyCanyonHousingRevitalizationProject,U.S.Navy
249
177GazeleyProperties,UnitedKingdomOperations
250
Chapter18TheFutureVisionforPartnering
253
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
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Chapter1FrequentlyAskedQuestions11Introduction12ThePartneringConcept13ThePartneringProcedure14ThePartneringExperience
11Introduction
Partneringisarelativelynewconceptbeingembracedbytheconstructionindustry.Sincepartneringinvolvesaninnovativeandcreativeprocessforchangingthecorporatecultureoforganizations,itisnotsurprisingthat,whendiscussed,therearequestionsaboutpartnering.Whetheraskedataconstructionmeeting,seminar,orconference,thesequestionsmaybephraseddifferently,buttheytendtoraisethesamecommonconcerns.Therearethreebasictypesofinquiries:questionsabouttheconceptualbasisofpartnering;questionsabouttheprocedureforimplementingpartnering;andquestionsabouttheexperienceothershavehadwithpartnering.Thesequestionsaddresstopicsthatareconsideredingreaterdetailinthechaptersthatfollow.Here,inastraightforwardquestion-and-answerformat,areresponsestofrequentlyaskedquestionsaboutpartnering.Theyaredesignedtoenablepeopleunfamiliarwiththeprocesstogetaquickandbasicunderstandingofthepartneringprocess.
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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
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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.
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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.
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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-
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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-
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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
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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.
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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.
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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-
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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-
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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
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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.
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Chapter2ConflictandItsRoleinDefiningPartneringValues21TheGoodOldDays22SourcesofConflict23ConflictBasics24ConflictintheConstructionIndustry25PartneringDefined26CoreValues27WhatPartneringIsNot
21TheGoodOldDays
Whenthoseintheconstructionindustrygettogetheratconferencesandseminars,itisalmostguaranteedthat"oldtimers"willbeheardbemoaningthelossofthesimplehandshakeastheemblemofperson-to-personcommitmentintheconstructionindustry.Theyarequicktopointoutthatinthenot-so-distantpast,ahandshakewasallthatwasneededtocreateagoodworkingrelationshipandanagreementtosolveproblemstogether.Perhapsthesememoriesaremerelythestuffoflegend,butitisdemonstrablytruethatrelationshipshavegrownmoreadversarialandthatlitigationovercontractrequirementshasbecomeincreasinglyprevalentintheconstructionindustryinthelastseveraldecades.
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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
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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
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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-
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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
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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.
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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.)
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"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
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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-
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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.
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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
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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.
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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;
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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
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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-
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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.
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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:
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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.
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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
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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.
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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
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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
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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.
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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.
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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.
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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.
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Chapter4BarrierstotheUseofPartnering41UnderstandingBarriers42ConstructionIndustryBarriers43OrganizationalBarriers44IndividualBarriers45PlantoOvercomeBarriers46Success
41UnderstandingBarriers
Partneringrequiresthatorganizationsandtheindividualswithinthemmakeafirmcommitmenttochangingadversarialattitudesandconfrontationalbehaviors.Thissoundssimpleenough,butdoingitisnotalwayseasy.Partneringconceptsaresometimesmetwithresistanceintheconstructionindustry,evenasmoreandmoreorganizationstoutitsbenefits.Why?Whatpreventssomefromdoingwhatothershavedonesosuccessfully?Whydosomepeopleresistchangingpastworkhabits?Whycan'teveryoneonaconstructionprojectautomaticallyworkwelltogetherandcooperate?
Thefirststepontheroadtoachievingchangeistorecognizethebarriersthatholdorganizationsandindividualsback.Onlythencanaplanbedevisedtoovercomethem.Thischapterfocusesonidentifyingsomecommonpartneringbarriers,considerswhythesebarriersexist,andoutlinesbasicstrategiestoovercomethemtoallowpartneringtobesuccessfullyundertaken.
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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
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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.
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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.
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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.
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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
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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
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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.
HEgo
"Iknowmorethantherestofyou!"Someindividualsfeeltheydonotneedateamtodecidewhattodobecausetheyalreadyknowwhat'sbest.Theyhaveanegoblock.Thisattitudecaninhibitfulldevelopmentofjointproblem-solvingskillsbytheteamandresultinlackofacceptanceofothers'decisions.Theteam-buildingexercisesinaninitialpartneringworkshopcanbeusedtoexplorethebenefitsof
groupdynamics,butexploringself-esteemissuesunderlyinganegocentricattitudemayrequiremorethanonepartneringsession.Thisindividualmayneedtoexperiencepersonallythevalueofteamproblem-solvingduringpartnering.
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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-
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Figure41ForcesThatMustBeConsidered
tedorganizationsandknowledgeablepeoplearetheoneswhoeithermakeorbreaktheprocess.Ananalysisoftheinterestsandbarriersoforganizationsandindividuals,however,shouldhelptoexpeditethechangeandassurebetterpartneringrelationships.
45PlantoOvercomeBarriers
Whenpartneringisproposed,potentialorganizationalandindividualbarriersshouldbeconsideredwhichpreventpartneringfromstartingorderailitafterwards.Theproponentofpartnering
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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
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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.
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46Success
Therecanbemanybarrierstobeginningapartneringprogram.Someareorganizationalandothersarisefromindividualexpectations.Itonlytakesafewtoblockchange.Therefore,barriersneedtobecarefullyanalyzedandquicklyaddressed.Throughcarefulassessmentofthebarriers,aplantoovercomethemmaybedevelopedtoplacepartneringfortheprojectonthepathmostlikelytoproducesuccessforallpartiesinvolved.
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Chapter5EvaluatingtheBenefits:IsPartneringWorththeEffort?51ValueAdded52AffirmationofDirectBenefits53BenefitEvaluation54HardDataonPartnering55SubjectiveEvaluationofPartnering56TheRealBenefitsofPartnering
51ValueAdded
Similartoprogramsundertakenbymanagersinthebusinesscommunity,managersofconstructionprojectswouldliketoprovideaddedvaluetowhattheydo.Theideaofaddingvalueunderliesbusinessimprovement.Infact,oneofthebasictenetsofbusinessimprovementisthatallstepsinanendeavorthatarenon-valueaddingshouldberemoved.Thismaybeeasiersaidthandonebecausetoeliminatestepsthatdonotaddvaluerequireschange.
Partneringrequiresadramaticchangeinthecorporatecultureinmostorganizations.Beforeundergoingthechange,therefore,itisfairforprojectmanagerstoquestionthevalueofpartnering.Inevaluatingthevalueofthepartneringchange,twotypesofvalueorbenefitareconsidered:directbenefitsandindirectbenefits.
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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,
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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.
·Increasedopportunityforafinanciallysuccessfulprojectbecauseofnonadversarialwin-winattitude.
BenefitstoDesignersandConsultants
·Reducedexposuretolitigationthroughcommunicationandissue-resolutionstrategies.
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·Minimizedexposuretoliabilityfordocumentdeficienciesthroughearlyidentificationofproblems,continuousevaluation,andcooperative,promptresolutionwhichcanminimizecostimpact.
·Enhancedroleindecision-makingprocess,asanactiveteammemberinprovidinginterpretationofdesignintentandsolutionstoproblems.
·Reducedadministrativecostsbecauseofeliminationofdefensivecase-buildingandavoidanceofclaimadministrationanddefensecosts.
·Increasedopportunityforafinanciallysuccessfulprojectbecauseofnonadversarialwin-winattitude.
BenefitstoSubcontractorsandSuppliers
·Reducedexposuretolitigationthroughcommunicationandissue-resolutionstrategies.
·Equityinvolvementinprojectincreasesopportunityforinnovationandimplementationofvalueengineeringinsubcontractedwork.
·Potentialtoimprovecashflowduetofewerdisputesandwithheldpayments.
·Improveddecisionmakingavoidingcostlyclaimsandsavingtimeandmoney.
·Enhancedroleindecision-makingprocessasanactiveteammember.
·Increasedopportunityforafinanciallysuccessfulprojectresultingfromnonadversarialwin-winattitude.
BAmericanArbitrationAssociation
TheAmericanArbitrationAssociation(AAA),inthepamphlet,"ConstructionIndustryDisputeAvoidanceThePartneringProcess,"listsnumerousidentifiablepositiveoutcomesofpartnering.Theyinclude:
·Reducedexposuretolitigationthroughopencommunicationsandissue-resolutionstrategies.
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·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).
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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-
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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
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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
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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.
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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.
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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.
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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-
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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.
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"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.
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Chapter6DevelopingConstructionContractPartneringProvisions61AdvisingaClientaboutUsingPartnering62DraftingSpecificPartneringProvisionsinthePrivateSector63IntegratingPartneringConceptsthroughouttheConstructionContract64PublicSectorPartnering
Acommonmisperceptionoflawyerswhoareuncomfortablewithpartneringisthatitsomehowwillbeusedtomodifytheparties'contract.Thisconcernrepresentsafundamentalmisunderstandingaboutthenatureandpurposeofpartnering.Inreality,theparties'constructioncontractcontinuestogoverntheirrightsandobligationsthroughouttheproject.Partneringworkswithinthatlegalframeworktopromoteclear,objectivecommunicationssothattheteammembersachievetheirmutualcontractgoalsaseffectivelyaspossible.Partneringisnotintendedtobe,andshouldnotbeusedas,aninformalcontractamendmentmechanism.Makingsurethatclientsandtheotherprojectteammembersunderstandhowtheparties'contractdocumentsandpartneringmaterialswillfunctiontogetherisacriticalissuewhenpreparingaconstructioncontractonaprojectthatwillusepartnering.Also,lawyersshouldbemindfulofthelimitationsimposedbystatutesandregulationsgoverningpublicsectorcontractingthatdonotexistwhenadvisingclientsintheprivatesector.
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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
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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:
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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
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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
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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
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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-
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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
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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).
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"Inordertomosteffectivelyaccomplishthiscontract,thegovernmentwillformacohesivepartneringrelationshipwiththecontractor,itssubcontractors,andthedesigner.Thisrelationshipwilldrawonthestrengthsofeachorganizationtoachieveaqualityprojectdonerightthefirsttime,withinbudget,andonschedule.Thisrelationshipwillbemutualinmakeupandparticipationwillbetotallyvoluntary."
Figure62SamplePartneringStatementI
"Inordertocompletethisprojectmostbeneficiallyforbothparties,thegovernmentproposestoformapartneringrelationshipwiththecontractor.Thisrelationshipwilldrawonthestrengthofeachpartyinanefforttoachieveaqualityprojectdonerightthefirsttime,withinbudget,andonschedule.Therelationshipwillbebilateralandparticipationwillbetotallyvoluntary.Anycostsassociatedwithpartneringwillbesharedequallywithnochangeincontractprice."
Figure63SamplePartneringStatementII
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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
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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.
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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.
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Thesecharacteristicsarehallmarksofthepartneringprocess:·CulturalChangeMovingfromanoldadversarialmannerofconducttoanewcooperativewayofdoingbusiness.·BarrierRemovalEliminatingindividualandorganizationalobstaclestoformingaprojectteam.·GoodWorkingRelationshipCreatingsynergythatflowsfromorganizationsandindividualsworkingtogetherwithmutualrespectandtrust.·NonadversarialEnvironmentEstablishinganatmospherethatfosterscooperationratherthanconfrontationbetweentheparties.·Team-BuildingAtmosphereParticipatinginastructuralprocesstobuildaunifiedteam.·MutualGoalsRecognizingbenefitsthatarecommontoallpartiesontheteam.·OpenCommunicationsBeinghonestandtrustworthyinoralandwrittencommunications.·JointProblem-SolvingWorkingtogethertosolveproblemsirrespectiveofresponsibility.·DisputeResolutionPlanUsingagreed-uponprocedures,shoulddisputesariseduringperformance.·RealisticExpectationsKnowingthecontractuallimitationsoftheotherpartiesandnotdemandingmore.·TeamCommitmentMakingarealdedicationtoparticipationinthepartneringprocessandnurturingitalongtheway.
Figure71PartneringCharacteristics
Inapartneringrelationship,allproblems,simpleandcomplex,arequicklyconfrontedandjointlyconsideredbyamutuallyagreed-uponprocessforexpeditedavoidancebeforetheyescalateintodisputes.Thisfocusonquickproblem-solvinggreatlyreducesthechanceforanadversarialrelationshiporneedforformaldisputeresolution.
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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.
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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-
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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.
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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,
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afacilitatormaybeusedtodesignandconducttheworkshopandtomakesurethattheyarekeptseparateanddistinctfromroutineprojectmeetings.
Theperiodicworkshopsprovideaclearfocusonthepartneringrelationshipduringcontractperformance.Attheworkshops,therelationshipisevaluatedand,ifnecessary,changesaremade.
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Chapter8PreparingfortheWorkshop81ConductingInternalPartnering82IdentifyingWorkshopParticipants83SelectingaFacilitator84DesigningtheWorkshop85ChoosingtheWorkshopLocation
81ConductingInternalPartnering
Aninternalpreliminarymeetingishelpfultoprepareforthepartneringworkshopandshouldbepartofanykeyorganization'spartneringplanningprocess.Organizationsthatarenewtopartneringshouldstronglyconsiderconductinganinternalpartneringpreparationmeetingwiththeirownpersonnelteammembersbeforemeetingwithworkshopparticipantsfromotherorganizations.Thiswillprovideanopportunitytofamiliarizepersonnelwiththepartneringprocess,addressmanagementissuesconcerninginternalrelationshipsandquestionsaboutpartnering,andidentifyindividualbeliefsthatmayneedfurtherinternalattentiontoovercomeattitudinalbarrierstopartnering.
Whenthereareunresolvedmanagementissuesamonganorganization'sworkshopparticipants,theymaycometotheworkshopresistingchangeandlackingcommitmenttoworkwithotherparticipantsinpartnering.Thismakestheorganizationill-preparedtobuildaunifiedpartneringteamwithotherorganiza-
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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-
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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.
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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
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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.
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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.
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Thefollowingcharacteristicsarehelpfulinselectingaqualifiedfacilitator.Recognize,however,thatcertaincharacteristicsmaybemoreimportanttoonestakeholder.Moreover,specificfactorsmaybeextremelysignificantgiventhenatureofaparticularprojectandlessrelevantonothers.Theimportanceassignedtoeachcharacteristicisuptothosewhoselectthefacilitator.Keepinmind,however,thatallparticipantsatthepartneringworkshopneedtofeelcomfortablewiththefacilitatorselected.Aworkshopfacilitatormayhaveallormanyofthefollowingcharacteristicsandskills:·Someknowledgeofthesubjectareainvolvedinthepartneredproject.·Theabilitytoperformpersonalitytesting.·Experienceinleadingteam-buildingsessions.·Anunderstandingofconflictmanagementanddisputeresolutiontechniques.·Trainingorexperienceincommunicationsandactivelisteningskills.·Experienceinleadinggroupproblem-solvingmeetings.·Knowledgeofconsensus-buildingtechniques.·Priorpartneringfacilitatorexperience.·Aneutralandimpartialpersonalbackground.
Figure83WhattoLookforinaFacilitator
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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
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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-
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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.
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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.
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___Selectthefacilitator___Conductameetingbetweentheworkshopdesignersandthefacilitator___Secureseniormanagementsupport___Provideorganizationalinformationtothefacilitator___Decideadministrativedetailsfortheworkshop___Selecttheworkshopparticipants___Choosetheinitialworkshoplocation___Settheagenda___Discussthefacilitator'scontinuingrolethroughouttheproject
Figure86WorkshopDesignChecklist
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Chapter9ConductingtheWorkshop91AgendaDevelopment92WorkshopElements93OpeningtheWorkshop94Relationship-Building95Problem-Solving96WorkshopClosure97PartneringWorksheet98SampleWorkshopAgendas99WorkshopFlexibilityandStructure
91AgendaDevelopment
Sometimes,whenorganizationsandindividualsgettogetheratameetingwithcoffeeanddoughnuts,theparticipantsbelievetheyarepartnering.Later,afterseveralratherfriendlyhours,theyproclaimthattheyhavedevelopedapartneringteam.Itwouldbewonderfulifbuildingarealpartneringteamforthedurationofalong-termconstructionprojectwasthateasy.Inreality,itisnot.
Tobeginthetaskofbuildingthepartneringteam,themeetingamongtheprojectstakeholdersmustbegiventhetimeandattentionneededtotransformandunifythegroup.Theworkshopmusthaveaclearfocusonbuildingthepartneringteam.AvarietyoftypicalworkshopactivitiesarefoundatFigure91.
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Figure91PartneringWorkshopPuzzle
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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
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Figure92BasicElementsoftheWorkshop
duringtheworkshopbythefacilitator,dependingupontheneedsarticulatedbytheparticipantsduringtheprocess.Someworkshopsmayconcentratemoreonrelationship-buildingbecausepartneringisnewtotheparticipants.Otherworkshopsspendsignificanttimedealingwithproblem-solvingduetothecomplexitiesoftheproject.Theflexibilityoftheworkshopstructureencouragestheseadjustments,andfacilitatorsshouldmodifythestructureatanypointbeforeorduringtheworkshopasnecessary.
93OpeningtheWorkshop
Openingtheworkshopinvolvesthreeelements:welcomingparticipantsandintroducingeveryone,settingexpectationsfortheworkshop,andadoptinggroundrules(seeFigure93).
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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.
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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
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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
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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.
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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.
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individualteammembershaveproductiveworkingrelationshipswitheachother,characterizedbyopencommunication,collaborativeproblem-solving,anddedicationtocommongoals.Oneofthemostimportantthingsafacilitatordoesishelpworkshopparticipantsbuildpositiveworkingrelationshipsthatwillcarrythroughtocontractcompletion.Attheworkshop,ateachingtooltostrengthencommunicationsamongthegroupisoftenusedasafirststep.Figure95isagraphicrepresentationofrelationship-building.
ATeam-BuildingExercises
Team-buildingexercisesassistinestablishingpositiverelationships.Teamexercisesareanimportanttooltogettheparticipantsthinkingandworkingasateam.Speciallydesignedexercisesthatcontrastcompetitionandcooperationareusefulearlyinaworkshop.Fortheseexercises,andperiodicallythroughoutthework-
Figure95Relationship-Building
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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.
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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
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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
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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
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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
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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
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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
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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:
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1.DefinetheProblem
2.AnalyzetheProblem
3.ConsidertheCharacteristicsofanIdealSolution
4.DevelopPossibleSolutions
5.DesignateResponsibleTeamMemberstoSelectandRefineaSolution
ThesestepswillbeconsideredindetaillaterinthecontextofcreatingaspecificactionplanandareillustratedinFigure98.
CCreateActionPlans
Awrittenactionplanmaybedevelopedforeachmajorproblemidentifiedbytheteam,dependingonthedesiresoftheteam.Responsibilityforeachactionplanshouldbeassignedtoaparticipantorasubgroup.Aspecifictimeperiodshouldbefixedfor
Figure98
TheActionPlanningProcess
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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
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PROBLEM-SOLVINGWORKSHEET
Writeabriefsentencestatingtheproblem.
Whatsymptomsindicatetheproblemexists?
Whatarethepossiblecausesoftheproblem?
Asaresultofsolvingthisproblem,whatdoyouwanttoachieve?
Factorsaffectingthisprobleminclude:
Risks?
Impactofignoringproblem?
Whatkeyplayersareneededtosolvethisproblem?
Listthepossiblecoursesofactionyoucouldtaketoaddresseachproblemcauseidentifiedaboveaspossiblecauses.
Figure99Problem-SolvingWorksheet
PROBLEMTITLE____________________________
_________Date/Time
AGREEDUPONSTATEMENTOFTHEPROBLEM________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________
POSSIBLECAUSES____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________
POTENTIALSOLUTIONS____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________
THEPROPOSEDSOLUTIONWITHJUSTIFICATION________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________
______________________________________________________________________________________ResponsibleTeamMember
______________________ResponsibleTeamMember
______________________ResponsibleTeamMember
Figure910SampleActionPlanningWorksheet
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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.
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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.
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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
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Figure911IssueResolutionLadder
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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
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assignresponsibilityfordevelopinganADRplantoasubgrouporactionteamthatwillthendevelopaplanintheweeksfollowingtheworkshop,forexample.TheteammaywishtogivetheADRactionteamguidelinesonwhattoconsiderastheplandevelops.ThefacilitatorcanassisttheactionteamtobrainstormconcernsfortheADRplantoaddress.
ItwouldbeappropriatefortheteamtoconsidertheroleoflawyersinbuildingtheADRactionplan.Iflawyershaveparticipatedattheworkshop,theymayreadilybeincludedontheactionteam.Iflawyershavenotbeenattheworkshop,thereistheopportunityfortheirskillstobeusedandforthemtobecomeacquaintedwiththeprojectandthepartneringprocess.TheroleofthelawyerinpartneringisdiscussedinChapter15.
96WorkshopClosure
Thefinalsteponthepartneringagendaistoreachclosureonworkshopitemsbeforeteammembersdepart.Thisusuallyconsistsofdraftingthecharter,planningforthefuture,signingacharter,andcelebratingthenewrelationship(SeeFigure912).Theagendaneedstobecarefullymanagedtoallowsufficienttimetoconducttheactivitiesnecessarytowrapuptheworkshop.Thisisamajorresponsibilityofthefacilitator,whomustwatchtheclockclosely.
WORKSHOPCLOSUREDrafttheCharterPlanfortheFutureSignandCelebrate
Figure912WorkshopClosure
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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.
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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
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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
A
Two-DayWorkshops
Thevastmajorityofpartneringworkshopsforconstructionprojectsareconductedoveratwo-dayperiod.Sometimes,thework-
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DAYONEIntroductionsSetGroundRulesStatePersonalExpectationsPresentOrganizationChartsDescribePartneringDoCooperation/CommunicationExerciseConductPersonalStyleDiscussionIdentifyPotentialProjectProblemsDiscussCommonGoalsandMutualVisionDAYTWOIdentifyCoreValuesConductProblem-SolvingMakeActionPlansDevelopIssueResolutionLadderCreatePlanfortheFutureDevelopCharterSigntheCharterCelebrate
Figure914Two-DayAgendaFlowchart
shopmayextendtothreedayswhenthestakeholdersareunsureofpartneringandarereluctanttochangetheirpastpractices.However,thisisrare.Apre-workshopdesignmeetingwiththefacilitatornormallyhelpstofittheneedsofthestakeholdersintotheagendaoftheworkshop.Thescopeoftheactivitiesdescribedinthischapterisbasedonthetwo-dayworkshop.Inatwo-dayworkshop,afacilitatorshouldbeabletocompletealloftheagendaitems.(SeeFigures915and916.)
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AGENDADAYONEIntroductionsGroundRulesWorkshopExpectationsPersonalStyleAssessmentHandlingChangeDiscussionof"WhatIsPartnering"OrganizationandRolesLunchTeam-BuildingExercisesTeamProcessViewpointsBarriersModelProjectCharacteristics/InterestsVisionDevelopmentDAYTWOExpectedProblems(RocksintheRoad)ActionPlanDevelopmentIssueResolutionLadderPartneringCharterDevelopmentLunchDisputeResolutionDiscussionActionPlanPresentationFollow-UpPlanningSigningPartneringCharterClosure
Figure915SampleAgendaIforaTwo-DayWorkshop
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AGENDADAYONEIntroductionsPersonalExpectationsandConcernsPresentOrganizationChartsPartneringDescribedStyleDiscussionCooperation/CommunicationExerciseLunchVisionDiscussion''RocksintheRoad"DiscussPotentialGoalsPreliminarySubgroupMeetings(GoalDevelopment)DAYTWOIdentifyCoreValuesSharedByGroupDevelopVisionStatementDraftReportonGoalsDevelopIssueResolutionLadderLunchConductActionPlanningCreateEvaluationProcessCreateImplementationStrategyCharterDevelopmentSignCharter
Figure916SampleAgendaIIforaTwo-DayWorkshop
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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.
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WORKSHOPAGENDAIntroductionStatePersonalExpectationsDescribePartneringDiscussImportanceofCooperation/CommunicationDevelopMutualVisionIdentifyPotentialProblemsDiscussCommonGoalsPlantoSustaintheRelationshipDevelopCharterSignCharterCelebrate
Figure917SampleAgendaforaOne-DayWorkshop
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Chapter10ThePartneringCharter101TheNeedforaWrittenCharter102CharterElements103BuildingtheCharter104MutualVision105CommonGoals106ImplementationPlanfortheCharter107TheImportanceoftheCharter108SampleCharters
101TheNeedforaWrittenCharter
Sometimesparticipantsatthepartneringworkshopquestiontheneedtowriteapartneringcharter:"Ifcommunicationshavebeensoopenandsuccessfulwhydoweneedaformalcharter?Whyshouldourteamgoalsbememorializedinwriting?Ithoughtpartneringputthehandshakebackinconstruction,sowhoneedsanotherdocument?"
Theanswertothesequestionsisthatthecharterisameansofdocumentingparticipants'personalcommitmenttotheprinciplesthatwillguidethemduringtheirrelationship.Itservesasaconcisewrittenreminderofthevaluetheparticipantsplaceonworkingcollaborativelyandthedesiretochangefromanadversarialtoacooperativerelationship.Draftingthecharteralso
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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-
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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
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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
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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
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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-
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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
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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
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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
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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
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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
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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
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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
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usedtoremindtheteammembersoftheirmutualvisionandcommongoals.Logosprovideaneverydayawarenessofthepartneringrelationshipanddevelopasenseofownershipatthejobsite.Someconstructionprojectsprovideready-madelogoexamplesthatcanbedevelopedintoapartnering-specificlogo.
Itisrecommendedthatthecharterbefinalizedpriortoattemptingtocreatealogo.Duringthecharterdevelopmentphase,theparticipantsmaybetemptedtospendtoomuchtimecomingupwithanacceptable,inspirationallogo.Ifthishappens,itcanshortchangecriticaltimeneededforcharterrefinement.
Thewrittenchartermemorializesthecommitment,vision,andgoalsofthepartneringteam.Itisthemostimportantproductoftheinitialpartneringworkshop.Thecharterestablishestheprinciplesthatwillguidetheactionsoftheteamandsetsastandardofexcellenceforthenewworkingrelationship.
108SampleCharters
ThechartersinFigures105through107werewrittenbypartneringteamsforactualprojectsandmaybehelpfulindraftingaconstructionprojectpartneringcharter.
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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
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SPARKMANCENTERADDITION
REDSTONEARSENAL,ALABAMA
PARTNERINGAGREEMENTforthe
JOHNJ.SPARKMANCENTERADDITIONWe,thepartnersofTheSparkmanCenterAddition,pledgetouseatotalteamapproach,whichresultsinmutualrespectandpositiverelationshipsamongourmembers.Wewillsuccessfullycompletetheprojectwithinrespectivebudgetsby:
OntimecompletionTimelyandequitableresolutionsofissuesMaintaininganaccident-freeworkplaceIncorporatinglessonslearned
Wewillcelebrateoursuccessesandtakeprideinanon-time,qualityprojectthatmeetstheneedsofourcustomer.
Huntsville,AlabamaMay31,1996
Figure106SampleCharterII
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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
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Chapter11SustainingtheRelationship111TheNeedtoSustainthePartneringRelationship112DesigningthePlan113TheChampion'sRoleDuringtheRelationship114RelationshipEvaluation115Follow-UpSessions116BetweentheMeetings
111TheNeedtoSustainthePartneringRelationship
Whenthepartneringworkshopends,therelationshipamongtheteammembersmustcontinue.Likeanyothernewrelationship,partneringstartswithhighhopesforasuccessfulandharmoniousrelationship.However,justlikeamarriage,oncethehoneymoonisover,thedailyroutineandthechanceofunexpectedproblemscanchallengethepartneringrelationship.Somerelationshipswillflourish,manywillflounder,andotherswillfail.Thereasonforthedifferentresultsisnotthesincerityoftheteam'sinitialcommitment.Thedifferenceoftenliesintheefforttheteammembersputintosustainingtherelationship.
Aftertheworkshop,theteammembersneedtofocustheirenergyonwaystosustaintheirnewrelationshipandkeepitmov-
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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.
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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
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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
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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
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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.
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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
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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
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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
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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
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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.
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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
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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
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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
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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
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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.
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VALUEENGINEERINGCHANGEPROPOSAL(VECP)
Company:____________________ProposalNumber:______________________Project:____________________________________________________________ShortTitle:___________________________________________________________________BriefDescription:
ReasonfortheChange:
PotentialCostSavings:
TimeConstraints:
SubmittedBy:________________________________________Date:____________________ApprovedBy:________________________________________Date:____________________
Figure121ValueEngineeringChangeProposalSubmittalFormat
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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.
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·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.)
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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-
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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."
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·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.
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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.
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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)
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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
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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
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Figure126ThePartneringProcess
Figure127PartneringEmpowerment
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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
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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
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Figure129RequiredFocus
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nessisextremelydifficultforsomeonewhohasavestedinterestintheproject.Onceitisinitiated,teammembersmustmaintainthatatmosphereoftrustandfairness.Agoodfacilitatormustbeabletoteachwithavarietyoftoolsandtechniqueswhileremainingneutralonthesubjecttaught.
BothTQMandpartneringareteam-orientedprocesses,andnotameansforindividualachievement.Bothcreateanexpectationforindividualexcellence,however.Themostproductiveteamsareacollectionofeveryone'sbesteffortswithoutregardtowhichthecreditflows.Acrucialmeansofenhancingthisproductivityisdemonstratingrespectforindividualopinionwhilereachingdecisionsbybuildingconsensus.PartneringandTQMfunctionjointlytocreatetherespectandtrustnecessarytoachievethiscollaboration.Whileitispossibletoimplementeitherprocessseparately,thesynergisticreturnsofthesecombinedmethodologiesmaybethenextwaveofrefinementintheuseofpartneringonconstructionprojects.
Figure1210showsthecomplimentarypotentialoftheAlternativeDisputeResolution(ADR)processrelativetoTQMandpartnering.Asensibleapproachtopreventionplanningistohaveanagreed-uponADRprocessstandingby.
Figure1210PartneringIntertwined
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Chapter13AlternativeDisputeResolution131LitigationAvoidanceInterest132ADRContinuum133IndividualMethods134Third-PartyAssistedMethods135AdjudicativeMethods136ADRandPartnering
131LitigationAvoidanceInterest
Theinterestsofthoseintheconstructionindustrytoavoidlitigationhasneverbeenmoreapparentthanoverthepasttwodecades.Thisperiodhasseenanunprecedentedincreaseinthenumberofcontractclaimsincourt.Theincreaseddependenceonlitigationtoresolvecontractproblemshasnotonlyburdenedthecourts,ithasalsoharmedthecontractingparties,regardlessofwhoprevailsattrial.Whennegotiationfailstosettlecontractproblems,subsequentlitigationistime-consuming,expensive,andfrustratingtoeveryoneinvolvedintheprocess.Itcauseshostilityonthejobsiteandresultsinunrealizedcontractgoals.
Inanattempttochangethisadversarialenvironmentandavoidthedetrimentalconsequencesoflitigation,interesthasgrowninmorecreativeandinnovativemeansforresolvingdisputes.Theseothermeansfordisputeresolutionarereferredtocol-
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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
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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
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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
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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.
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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.
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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.
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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
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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
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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.
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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
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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.
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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
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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
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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
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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-
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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
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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.
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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.
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136ADRandPartnering
AlthoughpartneringandADRaretwodistinctconcepts,theycanbeusedtogetheraspositivemanagementmethodologiestobuildsuccessfortheconstructionteam.Partneringcreatesanatmosphereforjointproblem-solvinganddisputeavoidance.Assuch,mostproblemsandissuesshouldberesolvedquicklybetweenthepartiesatthelowestlevel.Buteveninthebestpartneringrelationships,someproblemswillbeunresolvedanddisagreementswillsurface.Whenthesedisagreementsoccur,ADRoffersacontinuumoftechniquestoresolvethemefficientlyandeffectivelywithoutresortingtolitigationandtheadversarialenvironmentitcancreate.
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Chapter14AlternativeDisputeResolutionSelectionProcessonPartneredProjects141HelpinDecidingWhentoUseAlternativeDisputeResolution(ADR)142TheADRQuestionnaire143ComputingtheADRQuestionnaireScore144InterpretingtheADRQuestionnaireScore
141HelpinDecidingWhentoUseAlternativeDisputeResolution(ADR)
·''WhenisaclaimripeforADR?"
·"IsittherighttimetouseADR?"
·"ThisclaimmightnotberightforADR."
·"ADRisiteverappropriate?"
Theabovequestionsarefrequentlyaskedbycontractors,contractingofficers,designers,projectmanagers,andlawyerswhoareconfrontedwithunresolvedcontractclaims.Unfortunately,theanswersreceivedareoftenvagueandprovidelittleornoguidance.Toofrequently,theresultistodeferthedecisiontouseADR,andanopportunitytoresolveaclaimislostorsignificantlydelayedwhilelitigationcostsaccrue.
Wherecanmanagersandlawyerslookforhelpandadvice?Infederalcontractdisputes,theAdministrativeDisputesResolution
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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.
142
TheADRQuestionnaire
Completeorrespondtothefollowingstatementsbyselectingtheanswerundereachsentenceorphrasethatbestreflectsyourfeelingsatthistime.Circleyourselection.Whenyouhavecompleted
1Pub.L.104320,110Stat.3870(Oct.19,1996).
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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
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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
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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.
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144InterpretingtheADRQuestionnaireScore
KeepinmindthatthescoreyoureceivedisyourpersonalscoreforevaluatingtheclaimforADR.AnotherpersonusingthisADRquestionnaireforthesameclaimmaygetadifferentfinalscore.ThisisbecausetheADRquestionnaireconsistsofnotonlyobjectivemeasures,butalsosubjectiveopinions.Remember,theADRquestionnaireisbutasingletooltohelpevaluateclaimsforADR.Onlybyweighingtheuniquecontractualandfactualaspectsofeachcaseshouldafinaldecisioninthismatterbereached.
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Chapter15LawyerParticipationinPartnering151RaisingtheIssueaboutLawyersandPartnering152LawyersOutsidethePartneringTeam153PuttingLawyersonthePartneringTeam154In-HouseCounselorOutsideCounsel155LawyersasPassiveParticipants156LawyersasActiveParticipants157LawyersasFacilitators158TheLawyer'sProfessionalResponsibilitiesinPartnering
151RaisingtheIssueaboutLawyersandPartnering
Inpartnering,afrequentlystatedgoalistheeliminationoflitigation.Thisgoalissometimesinterpretedtomeantheexclusionoflawyersfromthepartneringprocess.Partneringparticipantsmayviewlitigationandlawyersasthesameproblem,andtoeliminateone,theothermustbeexcluded.Ontheotherhand,manylawyerswanttobeincludedinpartneringandbelievethatwhentheyparticipate,theyaddvaluetothepartneringprocessandcanbettersupporttheirclientsinachievingteampartneringgoals.Theissueofwhethertoincludelawyersinpartneringraisessev-
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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
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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."
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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.
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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:
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·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
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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.
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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
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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
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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-
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(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
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(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
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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
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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
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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
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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.
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(a)Alawyershallnotactasadvocateatatrialinwhichthelawyerislikelytobeanecessarywitnessexceptwhere:
(1)thetestimonyrelatestoanuncontestedissue;(2)thetestimonyrelatestothenatureandvalueoflegalservicesrenderedinthecase;or(3)disqualificationofthelawyerwouldworksubstantialhardshipontheclient.
(b)Alawyermayactasadvocateinatrialinwhichanotherlawyerinthelawyer'sfirmislikelytobecalledasawitnessunlessprecludedfromdoingsobyRule1.7orRule1.9.
Figure158Rule3.7LawyerasWitness
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Chapter16LessonsLearned161RoughSpots162GettingStarted163WorkshopTips164WorkingTogether
161RoughSpots
Partneringshouldbearewardingexperienceforallparticipantsintheconstructionindustryandmostwillbeeagertodoitagain.Sometimes,however,thereareroughspotsalongthewayandapartymaynotbetotallysatisfiedwiththepartneringexperience.Whenthishappens,someseekaneasyanswerandsimplyblametheprocess.Theymayevengosofarastogiveuponpartnering.Thisisunfortunate.Otherpartieswilltrytounderstandwhatcausedtheroughspotsandwillseektoimprovethenexttime.Thischapterwillhelpthosewhoarelookingforthisimprovement.Itshareslessonsotherparticipantshavelearnedaboutpartneringfromnumerousconstructionprojects.Whilethoselessonslearnedmaynotprovidetheanswerstoeverydifficultyencountered,theyshouldhelpaddressmanysignificantissues.
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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.
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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.
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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
A
One-dayworkshopsaretooshort.
Thevalueofasingle-dayinitialworkshopislimited.Onedayisjustnotenoughtimetodevotetotheexercisesnecessaryforteam-building,developingcommongoals,creatingactionsplans,andwritingacharter,unlesstheprojectisverysimpleinscope.
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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
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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
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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.
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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,
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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.
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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
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informationtootherindividualsassociatedwiththeprojectoftheteam'scommitmenttopartnering.Almostallpartneringteamsproudlydisplaytheircharterattheconstructionsiteandintheirhomeoffices.Moreover,someteamshaveevencreatedwallet-sizedcardsandmemoformsthatincorporatetheircharterorpartneringslogan/symbol.
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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.
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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.
172
BonnevilleNavigationLock2
AnearlypartneringexperiencebytheArmyCorpsofEngineerswasthemultimillion-dollarconstructioncontractawardedbythe
2LesterEdelman,FrankCarr,andCharlesLancaster,Partnering,IWRPamphlet91-ADR-P-4,Dec.1991.
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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.
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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.
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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.
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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.
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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.
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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.
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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.
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Thesesheetsincludeacomparisontopreviousratingsandadepictionoftherangeofscoresreported.Categorieswithweakratingsorthatshowawidedifferenceinperceptionareexaminedcloselybytheteamandtargetedforimprovement.
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Chapter18TheFutureVisionforPartneringInacomparativelyshortperiodoftime,partneringhaspromotedsignificantchangesintheconstructionindustry.Fromitsinceptionbarelytenyearsagountiltoday,partneringhascapturedtheinterestandimaginationofowners,contractors,subcontractors,suppliers,projectmanagementfirms,designprofessionals,andcustomers.Ithaswonthewholeheartedsupportofinternationalconstructionandtradeassociationsaswellasfederalandstategovernmentagencies.
Thereisnodoubtthatpartneringhasbeguntochangethefaceoftheconstructionindustry.Sincepartneringbegantobeusedwidelyinthelate1980s,theconstructionindustryhasseenadramaticchangeinthecorporatecultureofnumerousorganizations.Theseorganizationshavefoundthat,althoughriskandcompetitionarepartoftheconstructionbusiness,adversarialrelationshipsarenotinevitable.Throughtheuseofpartnering,organizationscanchangetheculturefromconfrontationandlitigationtoonemarkedbycooperationandmutualsuccess.Inessence,partneringisattherootsofasignificantparadigmshiftoccurringintheconstructionindustry.
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Thosewhohaveexperiencedpartneringhavereapeditsbenefitsandaresharingtheirsuccessstories.Theyhaveseenasubstantialreductioninlitigation,lesspaperwork,moresafety,increasedcustomersatisfaction,andprojectsdeliveredontimeandwithinbudget.Whatmorecouldanyoneinvolvedintheconstructionindustrywanttoaccomplish?
Whiletheresultsspeakforthemselves,thatisnottheendofit.Nowisthetimefortheconstructionindustrytoaskhowitwillsustainandamplifythesuccessofpartneringinthefuture?Thinkaboutthisquestionforaminuteandthenconsiderthesefurtherquestions:
·Howlongwilltheconstructionindustrygenerateenthusiasmforthepartneringprocessafterithasbeenrepeatedlyused?
·Willthetypicalpartneringworkshopstillberelevantfortheparticipantswhohavebeeninvolvedwithnumerouspartneredprojects?
·Areallchartersbeginningtolookidentical?
·Willtheteammemberscontinuetodiscussproblem-solvingandconflictresolutionaftertheworkshoporwilltheyjustskipADRproceduredevelopmentandtrustthatthingswill''workout"?
·Finally,howwilltheconstructionindustrysustainitsinterestandcommitmenttopartneringandimproveitsbeneficialeffectsinthefuture?
Thesequestionsneedtobeanswered.Withtheeffortsofthosewhohaveseenthedramaticimpactpartneringofferstheconstructionindustry,theirabilitytoimagineistheironlylimitationtofindinganswers.Thepartneringprocessisjustthebeginningofbetterrelationshipstocome.
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Glossary
A
actionplanThisisawrittenproceduretobefollowedforeachmajorproblemidentifiedbythepartneringteam.Anactionplancanbepreparedforknownproblemsortoestablishprocedurestohandleanticipatedproblems.Developingsuchplansistypicallypartofthepartneringworkshopproblem-solvingprocess.
adversarialThisisanenvironmentcharacterizedbyconflict,poorcommunication,anddistrust.Often,itleadstolitigation.
advisorymediationThisADRtechniqueisahybridofmediationandarbitrationandissometimesreferredtoasevaluativemediation.Itinvolvestwosteps:thefirstissimplymediation;thesecondstepfollowsifmediationdoesnotresolvetheproblem.Thenthemediatormakesanevaluationoftheparties'positionsfortheirfurtherconsiderationanddiscussion.
AlternativeDisputeResolution(ADR)Thisencompassesacontinuumoftechniquesdesignedtoassistinthemanagementofconflictandtheresolutionofdisputeswithoutresorttoformallitigationproceedings.ADRtechniquesofteninvolvetheuseofneutralandimpartialthirdpartiestofacilitatesettlementdiscussions.
AlternativeDisputeResolution(ADR)actionplanThistypeofactionplanisdevelopedatapartneringworkshop,tobeavailable
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ifdisputesariseonaprojectorwhenclaimsaremadeunderacontract.ItusuallyincludesspecificproceduresforanexpeditednegotiationprocessandoneormoreADRmethods.
anecdotalinformationThisisevaluativeinformationgatheredthroughsurveysorinterviewsofparticipantsthatassessestheirperceptionoftheresultsofachangeinitiative.Perceptionsthatarenoteasilyquantifiableorarehighlysubjectivearecapturedthroughsuchinformation.(Seeindirectbenefits)
arbitrationInthisADRtechnique,thedisputingpartiesmakeadversarialpresentationstoaneutralandimpartialthirdpartythatisjointlyselected.Thearbitratorevaluatesthepositionsofthepartiesandmakesawrittendecisionbindingontheparties.InmoststatesintheU.S.,anarbitrationdecisionmaybeenforcedtothesameextentasatrialcourtdecision,butgroundsforappealmaybeseverelylimited.
B
barriersTheseare,figurativelyspeaking,stumblingblocksorimpassespreventingorganizationsandindividualsfromfullyparticipatinginpartnering.Afterbarriershavebeenidentifiedandaddressed,allteammembersshouldbeinapositiontofullyparticipateinpartnering.
behavioralstylesThisreferstoanindividual'spreferredmodesofverbalandnonverbalinteraction.Behavioralstylesmaybeunfamiliartoothers,andcanbeasourceofconflict.Partneringacquaintsindividualswithdifferingbehavioralstylestoallowthemtounderstandthemselvesandbesensitivetoothers'interactivestyles.
brainstormingTheunrestrainedofferingofideasorsuggestionsataworkshopbyallparticipants.Thereisusuallyaspecifiedsectioninaworkshopallowingparticipantstobrainstormissues,problems,orideastobeaddressedorresolvedduringtheworkshop.
buy-inTheactofobtainingacceptancefrompartneringteammembersonanissuepriortoinitiationofanaction.Buy-inrangesfrom"Icanlivewiththat"tofullendorsement.
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C
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
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decision;thattheyallagreethatthedecisionisthebestoneforthegroupasawhole.
contractingofficerAgovernmentofficialwhohastheauthoritytoawardandmakemodificationstocontracts.Thisofficialhastheauthoritytosettlecontractclaimsonbehalfofthegovernment.
contractorInaconstructioncontractrelationship,thisisthepartywhoprovidesconstruction-relatedservices,oranyotherserviceunderacontract,directlytotheprojectowner.
corevaluesThetenetsbywhichweconductourselves.Thesearetheessentialvaluesnecessaryforaqualityworkingrelationship,andmayincludesuchtraitsasmutualtrust,opencommunication,sharedresponsibility,andcommongoals.
corporatecultureThesystemofvalues,beliefs,andnormsthatexistinanorganization.
D
dataconflictsConflictscausedbythelackofinformation,misinformation,differentinterpretationsofinformation,anddifferentviewsontherelevanceofinformation.
designersThetechnicalpersonnelwhoprovidearchitectural,engineering,andotherdesignoftheproject.Inmostcasestheseindividualswillreviewsomeofthesubmittals,providedesignclarifications,andreviewpotentialfieldchangesduringconstruction.
designteamThisgroupofindividualsisformedtoaccomplishplanningandpreparationforthepartneringworkshop,andshouldrepresentthekeyorganizationsinvolvedintheproject.
directbenefitsBenefitsofachangeinitiativethataredirectlymeasurableandquantifiable.On-timeprojectcompletionandmeetingbudgetprojections,forexample,aredirectbenefitsofpartneringthatcanbemeasured.
disputeresolutionactionplanThisisaplanforresolvinganissueorproblemthatremainsunresolvedinspiteofproblem-solvingefforts.Thisplancaninvolvetheuseofanissueresolution
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ladderorsimilarinformalmechanisms.ThepartneringteamdevelopsthisplantoidentifytheADRtechniquestheteamwillemploy,inlieuoflitigation,toresolveissuesamongthem.
disputereviewboardApanelofthreeneutralmemberswhoareselectedbeforecontractperformancetoassistwiththeresolutionofdisputesastheyariseduringperformanceoftheproject.Thepanelmembersarenormallytechnicalexpertsfamiliarwiththetypeofconstructionbeingundertaken.
E
earlyneutralevaluationInthisADRtechnique,aneutralthirdpartywhoisanexpertintheproblemareaassiststhedisputingpartiesbyprovidinganevaluationofthestrengthsandweaknessesoftheirpositionsonaspecificissue.Thistechniqueisusuallyinitiatedimmediatelyafteraproblemarises.
evaluationformsWrittensurveysthatareusedonaregularbasisbypartneringteamstoassesstheirprogresstowardcommongoalsandthemutualvisionembodiedinthepartneringcharter.Howwelltheteamispracticingtheguidingprinciplesisalsomeasuredregularly.
F
facilitatorAnimpartialpartywhoassiststhestakeholdersindesigningandconductingthepartneringworkshopandfollow-upsessions.
fact-findingAnADRtechniquewhereaneutralpartyestablishesfactsconcerningtheconflict.Thefact-findertypicallyinterviewswitnesses,takeswrittenstatements,andgathersrelevantdocuments,whichare
summarizedforthepartiesinacompilationwrittenbythefact-finder.
FederalAcquisitionRegulations(FAR)AcompendiumofregulationsthatdirectlyapplytotheacquisitionofeverythingthattheU.S.governmentpurchases.
follow-upsessionsPeriodicmeetingsduringcontractperformancewithallteammembersparticipating.Thepurposesofthesefollow-upworkshopsaretoreinforcetheteam'scommitmenttopartneringandidentifyareasforimprovement.
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G
groundrulesThedefinedproceduresthatarefollowedduringaworkshoporfollow-upsessionforparticipants.Thesearetheguidelinesforhowparticipantswillinteractwitheachotherandbehaveduringtheworkshops.
guidingprinciplesstatementsValuestatementsthatreflectthedesiredconductofpartneringteammembersonaproject.Theseareoperationaldefinitionsofcorevaluesthatwereselectedbytheteamasvaluestheywillnevercompromise.
I
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-
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zationandprovideabetterfocusduringtheprojectpartnering,overcominganyinternalbarrierstobuildingthepartneringteam.
intrinsic/extrinsicmotivationExtrinsicmotivationisderivedfromexternalsourcesandintrinsicmotivationcomesfromwithinindividuals.
issueresolutionladderAprocessrequiringproblemstobeaddressedinatimelymanner.Itidentifiesresponsibleteammembersateachlevelwithinthestakeholderorganizationswhoareexpectedtoworkonresolvingissues.Whentheissuecannotberesolvedbythem,theissueiselevatedtothenextlevelofprojectmanagementforresolution.
K
keyparticipantsTheownerandprimecontractorarealwayskeyparticipants.Iftheownerretainsdesignservicesindependentlyfromconstructionservices,thedesignershouldbeaddedasakeyparticipant.
M
mediationAnADRtechniqueinwhichpartiesareassistedbyaneutralthirdparty,whoassistsinestablishingnegotiatingprocedures,identifyingissuesinconflict,anddefiningoptionsforresolution.Themediatordoesnotdecidethematterfortheparties,butratherassiststhemintheirsettlementdiscussions.
mini-trialAstructurednonbindingADRtechnique;thedisputingpartiesengageinaninformationexchangeataninformalmeeting,attendedbyprincipalsrepresentingbothpartieswhohavesettlementauthority.Themini-trialalsoincludesaneutraladvisorwhoprovides
substantiveadviceonthestrengthsandweaknessesofthepositionsheldbythepartiesinconflict.
mutualvisionThejointlyagreed-uponimageofsuccesstheteammembersworktowardonaconstructionproject.Themutualvisionisincludedinthepartneringcharter.
N
nonbindingarbitrationAnadversarialADRtechniquethatincludesanevidentiaryhearingbeforeaknowledgeableneutralthirdparty.Thearbitratorprovidesawrittenanalysisofthefactsanevaluationofthelaw,andanonbindingadvisorydecision.
Page262
normAstandardormodelconsideredtypicalforagroup.Behavioralnormsarethestandardsofbehaviorexpectedbygroupmembers.Partneringencouragesteammemberstodefinebehavioralnormsforteaminteraction.
O
operationallevelThemanagementstrataonthejobsitewithauthorityforaccomplishingaparticulartask.
operationalprojectmanagerAnindividualonthejobsitewithauthorityfordirectingtheworkasawhole.
organizationaldevelopmentTheprocessofpreparingforandmanagingchangeinanorganization.
ownerThepartywhorequiresandcontractsforconstructionservices,andmayormaynotbetheultimateuseroftheproject.
P
partneringAprocesstochangeattitudesinindividualsandcultureswithinorganizationsthatexpresslypromotesanenvironmentforrisk-sharing,teamwork,andattainingofmutualgoals.
partneringprocessAnongoingprocessofaligningorganizationstoachieveamutualvisionwithmaximumcollaborationandminimumdispute.Theprocessemphasizesteam-buildinganddevelopingasharedvisionandcommongoals,withaclearunderstandingofparticipantroles.It
includesactivelyresolvingissuesandproblemsaswellasgatheringandusingfeedbacktoadjusttheprojectperformancebasedonmutuallyagreedoutcomes.
partneringspecificationsContractclausesthatincorporatethepartneringprocessintothecontractandprovidethegeneralguidelinesforenteringthepartneringrelationship.Itmayormaynotindicatethevoluntarynatureofthepartneringactivityandhowthecostsmaybeshared.
partneringspiritThetrustandpositivementalattitudedevelopedduringpartnering.
partneringworksheetAwrittentoolusedfordevelopingthepartneringcharter.
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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
Page264
movingforward.Partiesagreecontractuallywhethertobeboundbytheneutral'sdecisions.Theyalsodecidewhetherdecisionscanbecontestedaftertheprojectiscompleted,andifso,bywhatotherADRtechniques.
projectpartneringTheapplicationofpartneringprinciplestoasingleconstructionproject.
Q
qualityimprovementmethodologiesThesearemethodsdesignedtohelporganizationsimproveperformance.Therearemyriadmethodstoimprovequality,increaseproductivity,andnurturecreativitythathavebeenprovensuccessfulmanytimesover.TheseincludeTotalQualityManagement(TQM),continuousimprovement,reengineering,team-building,andcreativeproblemsolving.Theygenerallyespousesimilarprincipalswithdifferingareasofemphasis.
R
relationshipconflictsConflictsthatarecharacterizedbymisperceptions,stereotyping,orpoorcommunication.
rocksintheroadAnticipatedproblemsthatparticipantsrecognizemayariseduringconstruction.
rolesandresponsibilitiesTheteammembersclarifytheirrolesandresponsibilitiesinordertoavoidconfusion,whichcouldcauseconflict.Adiscussionduringthepartneringworkshopprovidesmoredefinitionandclarificationoftheindividualrolesandresponsibilitiesonaproject.
S
settlementjudgeAjudicialADRtechniqueinwhichajudgehearsthepositionsofthepartiesandprovidesthemwithanonbindingevaluation.Thejudgemayattempttomediatetheresolutionofthedisputeorsimplyevaluatethestrengthsandweaknessesofeachoftheparties'positions.
stakeholdersIndividualsororganizationsthatshareriskincompletionoftheproject.Examplesoftypicalstakeholderswhobecomeparticipantsinthepartneringteamincludetheowner,primecontractor,majorsubcontractors,majorsuppliers,anddesigners.Asuniqueneedsofaprojectwarrant,stakeholdersmay
Page265
includecustomers,inspectors,andotherpartiesthathaveasignificantimpactonprojectoutcome.
standardsforbehaviorThewayteammemberswanttobetreatedatalltimesduringtheconstructionproject.Suchstandardsemphasizetheneedforteammemberstotreateachotherwithrespectandcourtesy,andtokeepcommunicationopen.
strategicalliancepartneringAprocesstocreatecooperativeandcollaborativerelationshipsbetweenindependentbusinessorganizationsoveranextendedperiodoftimeorthroughthecourseofmultipleprojects.
structuralconflictsConflictsresultingfromthe''rules"orcircumstancesadoptedbyoneormoreinteractingpartiesthatconstrainhumaninteraction.
summaryjurytrialAnadversarialADRtechniqueinwhichthelitigatingpartiesmakeanabbreviatedpresentationtoajury,whomakesanonbindingevaluationoftheparties'positions.
summarytrialwithbindingdecisionAjudicialADRtechniqueusedbyfederalgovernmentBoardsofContractAppeals.Inthisprocess,thepartiesmakeasummarypresentationtoanadministrativejudge,whorendersabindingdecision.
synergyCooperativeinteractionthatallowsforsmoothprojectcompletion.Synergyistheconceptthatthestrengthofacollaborativeteamismorethanthesumoftheirindividualstrengths.Thebenefitsofteamsynergyarebestachievedwhenindividualteammembershaveproductiveworkingrelationshipscharacterizedbyopen
communication,collaborativeproblem-solving,anddedicationtocommonsuccessgoals.
T
team-buildingTheprocessusedtobuildcollaborativeworkingrelationsamongagroupofpeople,allowingthemtocapitalizeonthecombinedskillandexpertiseofall.
team-buildingexerciseAmeanstoestablishpositiveteam-buildingrelationshipsthroughtheuseofcommunicationskills-build-
Page266
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.
V
ValueEngineeringChangeProposal(VECP)Aprocessthatallowsthecontractortoidentifyandbenefitfromconstructionofacomponentoftheprojectinamorecost-efficientand/ortimelyway,withoutsacrificingspecifiedqualityofthatcomponent.Suchproposalsmightincludeusingnewproducts,substitutingmorereadilyavailableproducts,employinglesscostlytechniques,oradjustingworksequences.Thecontractormaybe
awareofmanychangesthatcouldsavemoneyandprovideaqualitysolutionbutarenotspecifiedundertheoriginalcontract.
valueengineeringprovisionAcontractprovisionthatpermitscontractingpartiestogenerateandreviewValueEngineeringChangeProposals(VECPs).Proposalsaresubmittedinwritingandtheownermayormaynotacceptthem.Onceacceptedbytheownerandthedetailsincostsavingsareagreedupon,thechangetothecontractismade.Typicallysomeformoffinancialincentive,suchaspayingthepartydevelopingthevalueengi-
Page267
neeringideaaportionofthecostsavings,isusedtoencouragevalueengineeringproposals.
valuesconflictsConflictsthatstemfromfundamentallydifferentlifestyles,goals,ideologies,orreligiousbeliefs.
visionstatementAwrittenstatementexpressingthepartneringteam'slong-rangeviewofitsrelationshipandprojectsuccess.
W
wordsmithingTheactofreview,discussion,andrevisionofawrittendocumentbyapartneringteam,withthegoalofarrivingataconsensusstatement.
workshopAmeetingofprojectparticipantstoestablishorrefinethepartneringteamrelationship.
workshopclosureThefinalstepinapartneringworkshop,designedtoreachclosureonitemsraisedduringthemeetingbeforeteammembersdepart.Thisusuallyconsistsofdraftingacharter,planningforthefuture,signingthecharter,andcelebratingthenewrelationship.
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Index
A
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
Page276
B
Baird&McGuirecleanupproject,60
Barrierstopartnering,4153
eliminating,11213
BayouBonfoucaremediationproject,60
Behavior,standardsfor,11314
Benefits,evaluationof,5568,6162
Bindingdisputeresolution,77
Brainstorming,113
Budgetasgoalinpartneringcharter,145
C
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
D
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
Page277
DisputeResolutionActionPlan,creating,12728
Disputereviewboard,19697
Doubtasbarriertopartnering,49
DraytonHallStreambankProtectionproject,38
Dupont,34
E
Earlyneutralevaluation,19798
Economicrestraintasbarriertopartnering,45
Egoasbarriertopartnering,48
Empowereddecisionmakinginpartnering,233
Empowerment,lackof,asbarriertopartnering,4647
Environmentalprojectspartnering,39
Ethicsandpartnering,5
Evaluationduringprojectperformance,240
Expectationsforworkshops,106
F
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
G
GazeleyProperties,UnitedKingdomOperations,25052
GeneralServicesAdministration,xx
InformationTechnologyServicesfor,24547
Goals
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
I
Implementationplanforpartneringcharter,14849
Indecisionasbarriertopartnering,48
Indirectbenefits,56
Informalexchangeinovercomingbarrierstopartnering,52
Informationtechnologyservicespartnering,40
Interest-basedbargaining,192
Page278
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
J
J6LargeRocketTestFacility,24344
Jointpartneringworkshop,8586
K
Knowledge,all-knowing,asbarriertopartnering,4748
L
Lawyers
participationof,inpartnering,21329
professionalresponsibilitiesinpartnering,21928
atworkshop,56
Litigationasgoalinpartneringcharter,14748
Litigationavoidanceinterest,18788
M
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
N
NavalFacilitiesEngineeringCommand(NAVFAC),6263
Navy,U.S.,xx,62
MurphyCanyonHousingRevitalizationProjectin,24950
ShoreIntermediateMaintenanceFacility(SIMA),24849
Negotiations,positional,191
Newsletterinpublicizingeventsinpartneringrelationship,165
Nonbindingarbitration,19596
O
One-dayworkshops,23435
agendafor,135,136
Opencommunication,24
Operationalprojectmanagementsupport,85
Opposingforcesasbarriertopartnering,4950
Organizationalbarrierstopartnering,4246
Organizationalstructureasbarriertopartnering,45
P
Panacea,partneringasisnot,233
Paperworkasgoalinpartneringcharter,147
Paradigmparalysisasbarriertopartnering,47
Partnering
advisingclientaboutusing,7071
andAlternativeDisputeResolution(ADR),206
barrierstouseof,4153
eliminating,11213
benefitsof,xviiixix,xxxxi
Page279
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
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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
Q
Qualityasgoalinpartneringcharter,147
Qualitymovement,33
R
Realsupportasbarriertopartnering,47
Regulationsasbarriertopartnering,43
Relationships
buildingof,17,36,10916
conflictsof,17
Responsibility,shared,25
Riskinconstructionwork,18,20
Risk-takingasbarriertopartnering,44
Rulesasbarriertopartnering,43
S
Safetyasgoalinpartneringcharter,145
Self-interestasbarriertopartnering,49