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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.

www.abanet.org/abapubs

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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

Pagev

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.

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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-

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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

Page280

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