Global Leadership Alliance

Global Leadership Alliance Logo
Partnering Team on a Construction Site

Construction Partnering: Your Definitive Guide to its Advantages

Construction partnering is an approach to construction project delivery in which the project owner, designer, and builder work together collaboratively from project inception through completion to deliver a project that meets the owner’s needs and objectives. The construction partnering process begins with the owner’s identification of project objectives. The owner then selects a designer and builder who are willing to work together as a team to meet those objectives. The three parties then enter into a partnering agreement that outlines their roles and responsibilities and establishes a framework for communication and collaboration.

During the project, the owner, designer, and builder work together to make decisions, solve problems, and address issues that arise. The goal is to identify and resolve issues early, before they have a negative impact on the project and lead to costly disputes that cost an average of $30.1 million and delay projects an average of 16.7 months. The construction partnering approach has a number of benefits for all parties involved. 

Benefits for the owner :

For the owner, partnering provides a single point of contact for all project-related issues. The owner also benefits from the team’s collective knowledge and experience. In addition, the owner is able to hold the team accountable for meeting the project objectives.

Figure 1: (Arcadis 2021) Average Dispute Cost in North America
  • Build Relationships and Share Responsibility. -In this partnership, the owner and contractor share responsibility for the construction project. The owner is responsible for providing the contractor with a clear scope of work and schedule, and the contractor is responsible for completing the work on time and on budget. This partnership can help to ensure that the construction project is completed successfully.
  • Stay under budget. – When you enter into a construction partnership, you are able to pool your resources and knowledge. This can help you get a better price for your project as you are able to leverage the other party’s resources. Additionally, this partnership can help you mitigate some of the risks associated with construction projects. By sharing the risk, you are able to protect yourself from shouldering the entire burden if something goes wrong. A construction partnership can also help you get access to capital that you may not have otherwise. This can be especially helpful if you are looking to finance a large project. By partnering with another party, you can tap into their financial resources and get the funding you need. Entering into a construction partnership can be a great way to increase the value of your project and get a better price. By pooling your resources and sharing the risk, you can protect yourself and get the funding you need to complete your project.
  • Higher Quality Work. – The construction partnering agreement outlines the roles and responsibilities of each party, as well as the expectations for communication and collaboration. By entering into a construction partnering agreement, the owner can be assured that the contractor is committed to working collaboratively to achieve the best possible project outcome.
  • Complete On Time. – This agreement can help establish trust and mutual respect between the two parties, and can help ensure that both sides are working together to achieve the common goal of completing the project on time. This agreement can also help to identify and resolve potential problems early on, before they become major issues.
Figure 2: (Arcadis 2021) Average Dispute Values Graphed

Benefits for the Designer :

For the designer, partnering provides an opportunity to be involved in the project from the beginning. This allows the designer to develop a better understanding of the owner’s needs and objectives. The designer also benefits from the builder’s construction expertise.

  • The designer is able to have a say in how the construction project is carried out – This allows the designer to offer input on potential improvements that may help to keep the project on time and on budget.
  • The designer can develop a good working relationship with the construction company – The development of this relationship can lead to repeat business in the future.
  • The designer can learn about the construction process and how to best work with construction companies – By developing an understanding of how the construction process works the designer is able to better understand how designs are implemented by a building team which can be valuable knowledge for future projects.
  • The designer can ensure that their design intent is carried out as closely as possible – By having an open line of communication the designer is able to ensure their plans are being followed and can help to resolve any issues that may arise during construction.
  • The designer can receive updates on the progress of the construction project – This allows them to offer feedback to the construction company on how they may best implement the design in order to stay on time and budget.

Benefits for the Builder :

For the builder, partnering provides an opportunity to be involved in the project from the beginning. This allows the builder to develop a better understanding of the owner’s needs and objectives. The builder also benefits from the designer’s expertise in the design of the project.

Figure 3: (Arcadis 2021) Important Dispute Mitigation Factors
  • A reduction in project costs – This type of agreement can be beneficial for both the builder and the client, as it allows for a sharing of resources and knowledge between the two parties. The builder can use the agreement to access the client’s expertise and resources, while the client can benefit from the builder’s experience and knowledge. This type of agreement can also help to reduce the overall cost of the project, as both parties can share in the savings.
  • A shorter project timeline – This type of agreement can help to streamline the construction process and can allow for a more efficient use of resources. In addition, partnering agreements can help to reduce conflict and allow for a more collaborative approach to construction.
  • Increased communication and collaboration between the builder and the construction team -The agreement may also include provisions for resolving disputes that may arise during the course of the project. By entering into this type of agreement, the builder and the construction team can work together more effectively to ensure the successful completion of the project.
  • A more efficient construction process -A reduction in construction disputes -By having a construction partnering agreement in place, both builders can agree to work together to complete the project in a timely manner while also adhering to a set budget. This can help reduce construction disputes, as both parties will be held accountable for meeting the terms of the agreement. In addition, both builders can share resources and knowledge to streamline the construction process.
  • An improvement in the quality of the construction project- The builder and the construction company agree to work together to improve the quality of the project. They agree to share information and ideas to improve the project. They also agree to work together to solve problems that arise during the project. This partnering agreement can improve the quality of the project because it allows the builder and the construction company to work together to improve the project.

In addition to benefitting all parties individually, construction partnering has a number of benefits for the project as a whole. Partnering fosters a spirit of teamwork and collaboration among the owner, designer, and builder. This can lead to improved communication and coordination, which can in turn help to avoid or resolve potential problems. Partnering can also help to improve the quality of the project. By working together collaboratively, the owner, designer, and builder can identify and address potential problems early, before they have a negative impact on the project. Finally, partnering can help to improve the project schedule. By working together collaboratively, the owner, designer, and builder can identify and resolve potential problems early, before they have a negative impact on the project schedule. Construction partnering is a beneficial approach to construction project delivery for all parties involved. By working together from project inception through completion, the owner, designer, and builder can deliver a project that meets the owner’s needs and objectives while benefiting all parties involved.

Be on the lookout for our next blog coming out Monday October 3rd!