Presentation about Partnering (how it has and has not been done) by Alan Nuttall at the COMIT Community Day held on September 8th at Hemel Hempstead, hosted by Sir Robert McAlpine

2. PARTNERING
IN THE
CONSTRUCTION
INDUSTRY

3. OVER VIEW
• Can Partnering Really Work
• What Needs to Change to Make it Work
• Case Study of Partnering Working
• Technology That Can Assist In Partnering

4. CAN PARTNERING REALLY WORK
• In 1994 Sir Michael Latham published
Constructing The Team – know as the Latham
Report.
• 30% real cost savings
• Recognised the significant role of the client
• 1989 - Egan Report "Rethinking Construction”
• Effective partnering does not rest on
contracts.

5. WHAT NEEDS TO CHANGE TO MAKE IT
WORK
• Establishing mutually beneficial outcomes
• Alignment in objectives
• Belief in the partnering relationship
• Training to developing the necessary frame of
mind.
• Managing behavioural change
• Understanding and adoption of Project Values

6. CASE STUDY OF PARTNERING
WORKING
• Client - Cross Keys Homes, Peterborough
• Project – 10,000 Decent Homes Improvements
in five years
• Project Value circa £70m
• Three stage tender process
• Collaborative Working of all stake holders
• Form of Contract - PPC200

7. Cross Key Homes
• 3-6 Months of training with selected
contractors and all key stake holders
• Client led partnering process
• Collaborative working and sharing of ‘best
practice’ across entire supply chain
• Open Book accounting through top two tiers
of supply chain.

8. Cross Keys’ – Keys to Success
• Open and Honest approach
• Integrated delivery teams
• ‘Open Book’ accounting process established
early
• Pain/Gain mechanisms achievable and easy to
apply.
• Client driven process

9. PROPOSED INCENTIVE MODEL
Profit
%
Gain
Above
Line
Profit
% Pain
Below
Line
Estimated
Prime Cost
Target
Cost
Agreed
Maximum
Price
Contractors
Risk
Client
Risk
‘Open Book’
Costs Paid
Savings
Shared
Costs
Shared
Costs

10. Results
• Project delivered in 3 1/2 years instead of 5
• Prelims saving in excess of £150k
• All properties meeting Decent Homes
standards inside time and budget
• Contractors achieving year on year profit
levels above agreed values (Gain share)
• Client reinvesting Gain share back into
programme.

11. Technology That Can Assist In Partnering
• Project Management Systems (PMS) designed
to give control to all key stake holders
• Real time cost analytical tools
• 4D programme tracking models

12. CONCLUSION
Behavioural Change