The ideal environment for partnering is where the parties to a contract already have deep and long-term business relationships.
Another key prerequisite for a successful partnership is mutual trust.
Partnering requires the customer to abandon the micro-management of specific matters and measurable commitment by both parties to achieve respective goals on a supportive and reciprocal basis.
The best partnering arrangements are healthy when they are focused on results and service, rather than adjudicating fault. Finally, a good partnering relationship requires a mutually satisfactory balance of the output qualitative and financial imperatives of the relationship.
It requires co-ordination, creativity, effective communication, a conflict resolution process, the devotion of adequate resources, management support, underlying trust and a long-term commitment.
However, where properly implemented and backed with the required level of support, the degree of success of partnering can be determined by subjective measures (e.g., cost perceived satisfaction of partners’ expectations) and objective measures (e.g., cost variation and rejection of work).
Partnering can still be employed where the foregoing idea conditions are not satisfied, although with a lesser expectation of significant results.
Partnering commitments within a project contractual structure usually envisage some form of ongoing process of exchange coupled with an internalized tiered-negotiation infrastructure.
Each party designates a mid-to-senior level executive who is primarily responsible for the partnering aspect of the transaction. Each representative will exercise specified functions and powers identified in the overall contact documentation.
Each party commits to maintain a designated representative in place for the duration of the contract, and to provide cover during illness, incapacity or any other inability to perform.
Generally, it is accepted the scope of authority is limited (e.g., it is recognized that neither representative has the authority to modify or waive any provision of the overall agreement or to authorize a variation in the specifications or terms of supply).
However, within these constraints, the representative is the primary point of contact and authorized spokesmen. He or she possesses the full authority to act on behalf of the party represented for all other purposes.
In addition to the designating project representatives, the parties also identify the key individuals within their respective organizations who are critical to the performance of the project.
They each commit to use commercially reasonable efforts to ensure these individuals remain involved in the project for the duration.
Where a party considers it necessary to replace such an individual, there will be a process of consultation and replacement.
For particularly complex or long-term projects, it may be considered advisable to create a co-ordinating committee involving an appropriate representative from both organizations, to co-ordinate and integrate those aspects of their operation that relate to or that will be affected by the project.
One of the goals of such a committee is to assist the parties by promoting co-operative and effective communication with respect to matters related to the works, such as design, construction and commissioning issues; any issues arising from reports or documents; any quality assurance and safety issues and any community and media relations issues.
The partnering process also involves a commitment by the parties to resolve by amicable negotiations all disputes arising between them on a without prejudice basis; and to have all disputes resolved at the lowest level of management before engaging the dispute resolution process provided for in the agreement.
If low level discussions fail to address the matter satisfactorily, then the matter is referred to the designated representatives of the party. If no resolution is possible at that level, then the matter will be referred to more senior officers of each party.
At each level the relevant officer(s) of each party are required to deal with the matter promptly and diligently, and to make all reasonable efforts to resolve the dispute.
Generally, all such discussions and negotiations, and all documents exchanged, between the party representatives in relation to the dispute are stated to be provided on a without prejudice basis to facilitate the resolution of the dispute.
Stephen Bauld is a government procurement expert and can be reached at [email protected]. Some of his columns may contain excerpts from The Municipal Procurement Handbook published by Butterworths.
