The other day, I was talking with a longtime friend, who is also a leader in the construction industry. He has used Collaborative Partnering on every project over $30M in his $7B+ construction program. But he told me that Partnering is seen by a lot of facility owners as a “giveaway program.” He went on to say that he doesn’t think owners will “buy” Partnering, so he suggested that we need to change what we call it. Because he sees the need for collaboration growing as more and more owners are using collaborative delivery methods and don’t know how to create a collaborative team. Partnering is needed more now than ever.
Of course, perception is reality.
Let’s jump in and explore if Partnering is a “giveaway program.”
This is not the first time I’ve heard this, and I think it is part of an owner’s journey to truly understanding how Partnering works to create a high-trust high-performing project team. But why is there a belief that it is a giveaway program? Here are some fundamental beliefs I hear from owners and owner representatives that fuel their beliefs that Partnering is a giveaway program:
Belief #1: I know we pay less when we fight and don’t give in to what the contractor wants.
Belief #2: With Partnering we are expected to compromise and give in – we are just making the contractor rich.
Belief #3: Contractors are always looking for ways to cut corners and get away with something – we must police them constantly – Partnering only makes it harder.
Belief #4: Contractors always inflate their pricing so we can’t trust what they tell us is the cost. I am not going to “partner” with someone I don’t trust.
And there are many more such beliefs. And many are much more adversarial than these!
How’s this Working for You?
For any owner who has these beliefs (or hires people who have these beliefs), I can only ask you…how’s this working for you? It’s predictable that your projects are mired down with problems, poor communication, potential claims, and conflict. The team just can’t figure out how to succeed. And the prices you are paying are at a premium over owners where there is trust and collaboration.
We surveyed a group of contractors who bid on work for a large city. We asked them what premium they add to their bids for this owner, who has a reputation for being difficult. It ranged from 20% – 50%. That’s how much more you are paying for your projects just to get contractors in the door when you have an adversarial approach.
Also, what type of contractors and teams are you attracting? Are you attracting “A” contractors, and their “A” players? No. most owners who operate in this adversarial mode attract the “C” and “D” players because they are the only ones who will bid their jobs, or work on these jobs.
What about during the project. What kind of a premium are you paying for the team’s inability to communicate, coordinate, and for conflict? 10%? Maybe more. How much for having a “C” team instead of an “A” team? 10% – 20%?
You are paying a large premium for having the belief that “Partnering is a give-away program” and the underlying beliefs that support it.
The Benefits of the Believing in Partnering
The opposite is also true on projects where the owner believes in being fair, building trust, and who allows for collaboration to be the way they operate (Partnering values). For these projects, contractors sharpen their pencils and give the owner a great price because they don’t have to add in all the risks. One large owner who delivers over $1.5B of projects per year saw a 10% +/- reduction in bid prices after they deployed their Partnering program. This is what we’ve heard from other owners as well who deployed a Partnering program. IPI research aligns with this, too.
Let’s talk about claims. A claim is a failure of the team to identify and resolve the problem before it negatively impacts the project. It is highly unlikely that a claim will happen if you are operating in a high-trust Partnering environment. Problems are identified as early as possible so the team can co-create solutions and then implement them. They figure out what is a fair way to work through the costs and responsibilities. They develop a history of being fair and resolving project issues.
Owners who are seen as “fair” and trustworthy pay less and attract the best. This makes everything easier, too. Project teams that operate as “partners” get smarter, better, and faster as the project rolls out. We know that you need enough trust so there is transparency among all the project team members.
By creating a Partnering atmosphere you are paying less and attracting the best team, and the team is able to deliver more, faster, without the distractions of conflict and claims. And you’ve developed an atmosphere that fosters innovation and continuous improvement.
Not Partnering is a Giveaway Program
While it’s true I am biased, and also very experienced in working with a multitude of projects – It appears, that not Partnering is a giveaway program, and Partnering is an operating system that supports the development of a high-trust, high-performing project team whereas the owner gets more for their money with less waste. It doesn’t matter what we call it, Partnering helps teams to operate in a high trust manner that is needed because of the nature of construction. We are in this together. Our success is intrinsically tied to each other so only lose/lose or win/win is possible. If you want to understand how to create a partnering operating system for your project, grab a copy of the IPI Partnering 3.0 white paper.
Exploring Beliefs
It can be difficult to explore and understand the beliefs we bring with us to our projects. These beliefs about Partnering, and each other, have a profound impact on how we work together on our projects. And of course, seriously impact our project results.
Here is an exercise I have done with hundreds of project teams that I highly recommend for you to do with your project team. (Click here for a downloadable PDF version.)
This exercise will enable you to demonstrate the beliefs that are in the back of everyone’s minds and look at their impact on your project. Then, you can choose what you need to believe, so you can succeed. Can’t wait to hear what you discover.
Sue
Sue Dyer, MBA, MIPI is a Master Partnering Facilitator & Founder for OrgMetrics LLC, WSJ bestselling author on Trusted Leadership for construction leaders, Founder of the International Partnering Institute, and President of sudyco® LLC. You can contact Sue at suedyer@orgmet.com or 510 504-5877.
