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Project Partnering

Project Partnering. Technical Dinner Meeting AACE Chinook-Calgary Section February 12, 2014. Khurram Chanda, P.Eng ., CCE , PMP. About The Presentation. This presentation is based on my CCE Certification Technical Paper. Agenda. What is Project Partnering? Why Project Partnering?

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Project Partnering

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  1. Project Partnering Technical Dinner Meeting AACE Chinook-Calgary Section February 12, 2014 Khurram Chanda, P.Eng., CCE, PMP

  2. About The Presentation • This presentation is based on my CCE Certification Technical Paper.

  3. Agenda • What is Project Partnering? • Why Project Partnering? • Typical Problems on a Project • Benefits of Project Partnering • Development and Implementation of Partnering Process • Responsibilities of Partners • Stages of Partnering • Partnering Roles • Conclusion

  4. What is Project Partnering Its a planned and orchestrated effort by all stakeholders of a project to commit to an organized effort of establishing an environment of mutual trust, open communication, cooperation and teamwork that causes everyone to win by achieving the mutually agreed upon goals and objectives

  5. Why Project Partnering A significant number of problems, if not all, can be solved through a better coordination and communication among project stakeholders. This is what we call Project Partnering.

  6. Typical Problems on a Project • Claims and Cost Savings • Scope Creep and Change Orders • Cost and Schedule Overruns • Lack of Coordination and Communication • Poor Quality • Plummeting Team Morale

  7. Partnering Solution for Scope Creep

  8. Partnering Solution • Project partnering comes handy when it comes to deal with issue of scope creep • Partnering wants stakeholders to define and share common goals and benefits for which the project is being undertaken. • Set up a Change Review Board or a Configuration Control Body, having a representation from all the major players on the project • This modality will go a long way to remove the conflicts, unnecessary contractual correspondence, cost and schedule disputes and many other allied problems on the project.

  9. Partnering Solution for Claims

  10. Partnering Solution • Project partnering can be helpful in preventing construction claims. • Construction claims arise because of one or more of the following gaps in the project planning and implementation process. • Poorly written project scope • Vaguely defined contractual terms • Inadequate risk planning • Lack of communication • A partnering based project will help parties agree on a clearly written scope that defines the total needs of the project - With no hidden agenda. • When the project stakeholders will act more like partners rather than behaving like rivals, it'll be easy to analyze problems from a common perspective.

  11. Partnering Solution for Overruns

  12. Partnering Solution • No matter how advance are the project management techniques, the ground reality dictates us that most of the projects fail to achieve on-time and within budget completion. • One of the prime reasons is the disagreements among the project stakeholders on scope and variations • Partnering can provide a workable solution to this endemic problem. • In a traditional contract when any such tussle occurs, all parties go defensive and rest of the contract is of protecting each party's position • will create alignment between the participants, the project systems, culture, behaviors and individual commitments • The result will be a seamless communication channel that will help partners discuss and agree on cost and schedule related problems way before they happen on a project

  13. Partnering for Poor Communication

  14. Partnering Solution • Partnering builds a culture that is based on open communication. • Stakeholders identify the common communication goals, align them with shared vision and develop procedures to meet dynamic needs of the project. • stakeholders will discuss and agree on complex contractual and technical issues with ease and objectivity. • End result will be less contractual correspondence, fewer numbers of controversial change orders and variations, reduced likelihood of claims and better financial prospects.

  15. Benefits of Project Partnering • Active Risk management • Reduced correspondence • Improved communication • Focused team • Cost reduction • Long-term relationship • Common interests • No contractual tail • Reduced interface • Planning benefits • Low risk contract • Project understanding • Management support • Variation certainty

  16. Partnering Process Development • Partnering is an agreement among the stakeholders involved in a project that outlines responsibility, lines of communication and a commitment to the shared expectation of success by all. • To set up successfully the partnering process, stakeholders need to accept it as an attitude as well as a way of doing business. • The differences in implementing partnering may vary with the size or timing of a project. • All effective partnering relationships have a heavy reliance on trust - trust is fundamental.

  17. Key Considerations for a Partnering Relationship • Participation at the top • Equality • Freedom to innovate • Understand each other's strengths • Seek advice on structure • Sharing benefits • Continuous evaluation • Timely resolution of all disputes

  18. Responsibilities of Partners • Practice open, genuine communication • Give feedback in a helpful, concerned manner • Leave a person’s self-esteem intact when giving negative feedback • Seek first to understand, then be understood • Model partnering behaviors • Use the charter as a guidepost • Attend meetings and be prepared • Bring up real issues and help the team follow issue resolution professionally

  19. Stages of Partnering • The partnering process should begin at an early phase of project life cycle when all the stakeholders are properly identified. • Integrating this process with early project planning will optimize the whole implementation process. The four stages of partnering include • Stage 1 - Preplanning and Orientation • Stage 2 - Formal Partnering Sessions • Stage 3 - Ongoing Meetings • Stage 4 - Close-Out Meetings, Celebrations and Follow-Up

  20. Stage-1 Preplanning & Orientation Objectives •  Understand what partnering is • Understand benefits • Tell what’s in it for them • Gain owner’s needs and expectations • Define schedule and time frames of owner • Gain buy-in to attend formal session • Formalize partnering session agenda • Gain feedback from owner • Identify the major roles and corresponding responsibilities

  21. Partnering Roles • CHAMPION • BROKER /INTERMEDIARY • DONOR • MANAGER • FACILITATOR • PROMOTER

  22. Deliverables of Stage-1 • Unambiguous objectives and benefits for which the partnering process is being undertaken • Role and responsibility matrix for everyone involved in the process • Agreement concerning the expectations of all parties • Mechanism (action plan) of realizing expected benefits

  23. Stage-2 Formal Partnering Session Objectives • Understand what partnering is and its uses • Develop a relationship that is ongoing based on trust and open communication • Gain buy-in to partnering in attitude and for developing a charter • Develop procedures for communication, issue resolution, and decision-making • Develop and agree upon a charter for the project • Work on project issues or schedule meetings for issues that can benefit from the cross-section team being present

  24. Deliverables of Stage-2 • A partnering charter is developed and everyone involved has gone through the charter accepting its ingredients • A partnering facilitator is on board who may be internal or external to the project. • A communication plan has been chalked out and in place. Following procedures are implemented • Request for information (RFI) procedures • Back-up access plans • Project chain of command

  25. Stage-3 Ongoing Meetings Objectives • To assess needs and progress of project • To change scope as needed • To deal with current and upcoming issues • To make decisions and solve problems • To communicate needed information to team members • To assess how well we are working together and adhering to the charter

  26. Deliverables of Stage-3 • Keep the Charter Alive • The most important aspect of the ongoing meetings is to ensure that Charter is implemented and kept alive • Conflict Resolution • solve the existing problems and at the same time prepare yourself for unforeseen problems • As long as mechanism for identifying and solving these problems is actively in place, project progresses without major holdups • Participants can identify new issues or matters that are of concern for all parties, in line with project charter. • Evaluation of the Process • Partnering should be evaluated, at regular intervals, for its effectiveness and contributions to the overall success of the project in line with partnering charter • Implement a scorecard approach to collect stakeholders’ feedback

  27. Stage-4 Closeout Meetings & Follow-up Objectives • To assess for improvement and confirm what is done well • To celebrate and show appreciation for a job well-done • To follow-up for needed support and for preserving business relationships

  28. Data Collection & Analysis • Before closing partnering process, you must evaluate it for its success in terms of realizing project goals. Preplanning and Orientation Phase • Client's requirements, desires and needs Formal Partnering Session • Charter Goal Statements • Communication and Conflict Resolution Procedures • Plus and Minus of Session • Session Feedback from attendees

  29. Data Collection & Analysis (cont.) Ongoing Meetings • Meeting Notes (document issues, solutions, actions) • Periodic Charter Evaluations • Communication Evaluations • Scorecards

  30. Other Forms of Data • Number of claims • Cost reduction • Events for speeding up schedule • Number of change orders • Value of change orders • Value engineering savings • Completed projects on contract completion date • Completed projects before contract completion date • Feedback on the work environment of a team culture versus otherwise • Innovative techniques/adaptations to complete the job

  31. Closeout • The best way to close a partnering endeavor is by recognizing the collective and individual contributions amid a friendly get-together • Participation from higher levels is desirable • Recognition for efforts and good work that has made the project a success story

  32. Follow-ups • Following up with your former team members is another good idea to keep the possibility of future partnerships alive on next projects • It will certainly help you keep those wonderful relationships and future business opportunities in tact.

  33. Conclusion Majority of disputes on projects trace back to the disagreements and lack of trust among the project stakeholders. With the limitation of conventional project controls, Partnering has emerged as an effective way of resolving disputes among stakeholders. Most of the problems occurring on project during its life cycle for example, claims, scope creep, changes, cost and schedule overruns, can be effectively addressed by implementing a partnering process. Partnering has helped construction industry avert disputes leading to arbitration and litigation

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