Partnering

The following Construction practice note provides comprehensive and up to date legal information covering:

  • Partnering
  • What is partnering?
  • Features of partnering
  • The contract
  • Key performance indicators
  • Pain/Gain sharing
  • Openness
  • Advantages of partnering
  • Forms of partnering contract
  • Other considerations

Partnering

This Practice Note explains what partnering is, its key features and the advantages of taking this approach to a construction project. It also looks at the most commonly used forms of partnering contract and issues that the parties need to take into account in deciding whether to adopt this approach.

What is partnering?

In the 1990s, the Latham and Egan reports highlighted the inefficiencies caused by the adversarial nature of relationships in the UK construction industry and advocated the development of longer term relationships to improve performance and reduce costs. As a result, the concept of partnering has developed.

Partnering is not, in itself, a method of procurement. The term refers to the approach the parties take to procurement and how they work together and manage the completion of projects.

Partnering places great weight on establishing collaborative working arrangements and achieving continuous improvement in the delivery of projects. Partnering relationships are based on the underlying principles of trust, openness and co-operation and aim to eliminate the traditional adversarial culture.

Partnering is now an established feature of public sector projects but is generally less common in private sector projects where more traditional attitudes often still tend to prevail.

Features of partnering

A partnering relationship is intended to be quite different to that under more traditional procurement models. Partnering encourages the parties to:

  1. co-operate with each other

  2. improve performance through team working

  3. identify

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