Construction partnering is a unique form of industry partnering utilized in the construction, architectural and engineering industry. Construction partnering is meant to help project teams in solving issues, resolving conflicts and enhancing project results. It is a joint venture agreement between one business entity and another one in order for both businesses to benefit from the venture. However, in the construction field there are some companies that prefer to form construction partnering relationships without having an existing partnership. They view it as an expense that they can eliminate by developing the relationship on their own.
One way in which a construction partnering relationship is determined is through the process of project specific negotiations. This is where the parties negotiate regarding specifications and scope of work. If an architect is handling the scope of the project but is having difficulties finalizing the contract, then the architect can turn to a construction management firm for assistance. When a firm has experience in the construction partnering area, they will be better able to provide assistance with this aspect of the project. Additionally, the firm may be in a position to negotiate a better price due to their experience and skill.
In some instances, construction partnering can be helpful for the team in avoiding costly mistakes. One mistake that some companies make when it comes to construction partnering involves the inappropriate negotiation of the scope of the work. For example, if the architectural firm is handling the general concept of the project but is adding elements to the project such as doors, windows and lighting that are not part of the original plan, the resulting cost is expensive. The result of this mistake is often project delays.
Another benefit of construction partnering occurs during the project delivery phase. When two firms enter into a construction partnership, the relationship allows them to share and pool resources and expertise. This enables the firm that is delivering the final product to focus on their project delivery and avoid distractions from other companies. In some cases, this can mean an increase in project delivery time which can help expedite the process and ultimately meet the client’s deadline.
Construction partnerships also provide a way to avoid long-term disputes over the design team, the bid process or the overall direction of the project. When both firms enter into a construction partnering agreement, there is an established process to resolve these issues. If one of the firms ends up wishing to terminate the relationship, there are procedures in place that will prevent legal actions and arbitration from occurring. The contracting parties also have agreed that in the event of a dispute, each firm has the right to first seek out other legitimate offers before making a final decision. This gives both companies the opportunity to compare offers from other firms.
Another benefit of construction partnering is that when the project is completed, both firms are aware of the responsibilities that are related to the contract. When an architect is not involved in the design team, he or she will not know how to create the plan that will fit the building budget. When a construction team is hired, they will have an established process that will allow them to integrate the contractors’ expectations into the overall plan.